Notes to Accounts of IEC Education Ltd.

Mar 31, 2024

l) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

m) Retirement and other Employee Benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as an expense, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.

The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method.

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as shortterm employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The Company treats accumulated leave expected to be carried forward beyond twelve months as long-term employee benefit for measurement purpose & such long term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognizes the following changes in the net defined benefit obligation as an expense in the statement of profit and loss: - Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non- routine settlements; and Net interest expense or income.

n) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of other entity.

Financial Assets

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, except for those carried at fair value through profit or loss which are measured initially at fair value. Subsequent measurement of financial assets and financial liabilities is described below:

Subsequent measurement

For the purposes of subsequent measurement, Financial Assets are classified in four categories:

1. Debt Instruments at Amortized Cost.

2. Debt Instruments at Fair Value through other Comprehensive Income.

3. Debt Instruments and Equity instruments at Fair Value through Profit or Loss.

4. Equity Instruments measured at fair value through other Comprehensive Income.

Company doesn''t have any Financial Asset from 1-4.

i. Financial assets carried at amortized cost - a financial asset is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

• After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.

ii. Financial assets carried at fair value

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are generally classified as at fair value through profit and loss (FVTPL). For all other equity instruments, the Company decides to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL). The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the other comprehensive income (OCI). There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity. Dividends on such investments are recognised in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the P&L.

De-recognition of financial assets

A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.

o) Impairment of financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables and all other financial assets with no significant financing component is measured at an amount equal to 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured for specific assets. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an impairment gain or loss in profit or loss.

Trade receivables

In respect of trade receivables, the Company applies the simplified approach as per Ind AS 109, which requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.

Other financial assets

In respect of its other financial assets, the Company assesses if the credit risk on those financial assets has increased significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, the Company measures the loss allowance at an amount equal to 12-month expected credit losses, else at an amount equal to the lifetime expected credit losses.

When making this assessment, the Company uses the change in the risk of a default occurring over the expected life of the financial asset. To make that assessment, the Company compares the risk of a default occurring on the financial asset as at the balance sheet date with the risk of a default occurring on the financial asset as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition. The Company assumes that the credit risk on a financial asset has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the balance sheet date

Financial Liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include trade and other payables, loans and borrowings.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognised in the profit or loss.

Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously

p) Fair Value of financial instrument

The Company measures financial instruments at fair value in accordance with the accounting policies mentioned above. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

In the principal market for the asset or liability, or in the absence of a principal Market, in the most advantageous market for the asset or liability.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy that categorizes into three levels, described as follows, the inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs).

- Level 1: Quoted prices for identical instruments in an active market;

- Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and

- Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting period and discloses the same.

q) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds

A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. Capitalisation of borrowing costs is suspended in the period during which the active development is delayed due to, other than temporary interruption.

r) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equities shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

s) Cash and Cash Equivalents

Cash and cash equivalent comprise cash at banks and on hand and short-term deposits with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

t) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The board of directors assess the financial performance and position of the Company, and makes strategic decisions and therefore the board would be the chief operating decision maker. The Company''s primary business segment is manufacturing and trading of auto components. Considering the nature of Company''s business and operations, there is only one reportable business segment.

u) Significant management judgement in applying accounting policies and estimation uncertainty

When preparing the financial statements management undertakes a number of judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses.

The actual results are likely to differ from the judgments, estimates and assumptions made by management, and will seldom equal the estimated results.

Information about significant judgments, estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses are discussed below:

Significant management judgements

Contingent Liabilities - The Company is the subject of certain legal proceedings which are pending in various jurisdictions. Due to the uncertainty inherent in such matters, it is difficult to predict the final outcome of such matters. The cases and claims against the Company often raise difficult and complex factual and legal issues, which are subject to many uncertainties, including but not limited to the facts and circumstances of each particular case and claim, the jurisdiction and the differences in applicable law. In the normal course of business, management consults with legal counsel and certain other experts on matters related to litigation and taxes. The Company accrues a liability when it is

determined that an adverse outcome is probable and the amount of the loss can be reasonably estimated.

Significant estimation uncertainties

Recoverability of advances/receivables - At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding receivables and advances.

Useful lives of depreciable/amortisable assets - Management reviews its estimate of the useful lives of depreciable/amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of certain software, customer relationships, IT equipment and other plant and equipment.

Defined benefit obligation (DBO) - Management''s estimate of the DBO is based on a number of underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

i) Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are classified into three Levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(ii) Company doesn not have any investment carried at Fair Value

(iii) Fair value of instruments measured at amortised cost

The management assessed that cash and cash equivalents, trade receivables, other receivables, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

The fair values of loans, security deposits, borrowings and other financial assets and liabilities are considered to be the same as their fair values, as there is an immaterial change in the lending rates.

ii) Risk Management

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

A) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the company. The Company is exposed to this risk for various financial instruments, for example by granting loans and receivables to customers, placing deposits, etc. The Company''s maximum exposure to credit risk is limited to the carrying amount of following types of financial assets.

- cash and cash equivalents,

- trade receivables,

- loans & receivables carried at amortised cost, and

- deposits with banks

a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of customers and other counterparties, identified either individually or by the company, and incorporates this information into its credit risk controls. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and

accounts in different banks across the country.

Trade receivables

The Company closely monitors the credit-worthiness of the debtors through internal systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when amounts receivable become six months past due.

Other financial assets measured at amortised cost

Other financial assets measured at amortized cost includes loans and advances to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

b) Expected credit losses

The Company provides for expected credit losses based on the following:

The company recognizes lifetime expected credit losses on trade receivables using a simplified approach, wherein Company has defined percentage of provision by ''analysing historical trend of default based on the criteria defined above. And such provision percentage determined have been ''considered to recognise life time expected credit losses on trade receivables.

B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Maturities of financial liabilities

The tables below analyses the Company''s financial liabilities into relevant maturity companyings based on their contractual maturities for all non-derivative financial liabilities.

The amounts disclosed in the table are the contractual undiscounted cash flows. For balances due within 12 months amounts equal their carrying values as the impact of discounting is not significant.

C) Market Risk

a) Foreign currency risk

The Company is not exposed to any foreign exchange risk arising from foreign currency transactions. Considering the Zero volume of foreign currency transactions, the Company''s exposure to foreign currency risk is limited and the Company hence does not use any derivative instruments to manage its exposure. Also, the Company does not use forward contracts and swaps for speculative purposes.

b) Interest rate risk

i) Liabilities

The Company''s policy is to minimise interest rate cash flow risk exposures on long-term financing. As at 31 March 2022, the Company is not exposed to changes in market interest rates as the Company doesn''t have any loan outstanding of any Bank.

ii) Assets

The Company''s fixed deposits are carried at amortised cost and are fixed rate deposits. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

c) Price risk

The Company does not have any significant investments in equity instruments which create an exposure to price risk.

34 Capital management

The Company'' s capital management objectives are

- to ensure the Company''s ability to continue as a going concern

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company''s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

37 Segment information

As the Company''s business activities fall within a single primary business segment viz. Educational Franchisethe disclosure requirement of Indian Accounting Standard (Ind AS-108), Operating Segments is not applicable.

The analysis of geographical segment is based on the geographical location of the customers. The following table shows the distribution of the Company''s consolidated sales by geographical market, regardless of where the Services were provided. The Company has not carried on any business activity during the Financial year ended March 31, 2023

The Company was awarded "Computer Education Project" by Department of Education, Govt. of NCT of Delhi in the year 2000 (CEP-I) and 2002 (CEP-II) and the projects completed successfully. But CEP-IV project was signed but could not start timely due to non cooperation by the Principals of schools and the Govt. detained our FDR. However, some of the payments relating to CEP-I & II projects and FDR of CEP-IV project are still pending with the Government. We tried our level to obtain the detained payments amicably but department did not release it and the matter went into arbitration in the year 2007 At present, CEP-I & II projects are under settlement process with the Govt. and apart from it, we are continuously attending the proceedings of CEP-IV projects and hope that we will be receiving our outstanding payment by the end of this year.

Rajasthan Project

The Company was awarded "Rajasthan School and College Project" by Rajasthan Government in the year 2003 and project completed in the year 2009. The Company successfully accomplished the project. However, some of the payments relating to this project are still pending with the Rajasthan Government and we are continuously in the contact with the department''s person and hope that we will be receiving our outstanding payment by the end of this year.

(ii) Service tax

(a) Cases decided in the Company''s favour by Appellate authorities department has filed further appeal and show cause notices/ orders on the same issues for other periods

(b) Cases pending before Appellate authorities in respect of which the Company has filed appeals and show cause notices for other periods

41 Employee benefit obligations Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of services, gets a gratuity on departure at 15 days basic salary (last drawn) for each completed year of service on terms not less favourable than the provisions of the payment of Gratuity Act, 1972.

The following tables summaries the components of net benefit expense recognized in the Statement of Profit and Loss. The company has not availed any acturial valuation or calculatoin of employee benefit. The management has determinied the provisions on its estimates and hs disclosed as under.

For APT & Co. LLP For and on behalf of the Board of Directors of

Chartered IEC Education Limited

Accountants FRN :-

014621C/N500088

Sd/- Sd/- Sd/-

(CA ASHISH NAVIN GUPTA BIJOY KUMAR PANDIT

GOYAL)

Partner Managing Director Director

Membership No:- DIN : 00097128 DIN: 07900682

534775

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Mar 31, 2015

1) In view of the confirmation not having been obtained from the Trade receivables, Loans and Advances (both Long-term and Short- term) and Trade payables, the accounts are subject to adjustment on receipt of confirmation of balance and /or reconciliation of accounts the impact where off on account cannot be ascertained at this stage.

2) In the opinion of the Board of Directors, the Tangible Fixed Assets, the Trade receivables and Loans and Advances (both Long-term & Short-term) have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

3) No provision for doubtful Trade receivable and Long term loans & advances of Rs.499.71 lacs (Previous year Rs. 128.85 lacs) and Rs.38.03 lacs (Previous year Rs.28.03 lacs) respectively has been made because in the opinion of management, these amounts are still good in nature and management is hopeful of their recovery.

4) Company has not booked the income of Rs 85 Lacs (Previous year Rs NIL) as per agreement on the basis of which company has given security deport to one of the trust in which directors of the company are interested because in the opinion of the management there is a dispute with the trust and entire amount of security deport has been recalled.

5) Company has not made provision for service tax of Rs 321.64 lacs (Previous year Rs NIL) on the basis of show cause notice received form service tax department. In the opinion of the management same is under dispute and has been shown as contingent liability.

6) The Subsidiaries Companies made a combined net Loss of Rs. 4.78 lacs for the year ended 31st March, 2015. This loss together with the brought forward loss of Rs. 55.27 lacs has been carried to the Balance Sheet. The holding Company's Share of loss out of Rs. 60.05 lacs has not been dealt with in the holding Company's books of accounts.

7) Deferred Tax:

In accordance with Accounting Standard (AS)-22 on "Accounting for Taxes on Income Tax" issued by the Institute of Chartered Accountants of India and based on the reasonable certainty that sufficient future taxable income will be available, the company has accounted for deferred tax during the year.

8) Segment Reporting-Basis of Preparation

The segment reporting policy complies with the accounting policies adopted for preparation and presentation of financial statements of the company and is in conformity with Accounting Standard-17 on "Segment Reporting", as specified in the Companies (Accounting Standard) Rules,2006The primary segmentation is based on the nature and type of Services rendered. Segment assets and liabilities represented Net assets and liabilities of that segment.

9) There are no transaction which are required to be disclosed under clause 32 of the Listing Agreement with the Stock Exchange where the equity shares of the Company are listed.

10) Previous year's expenditure accounted for under the respective heads of accounts during the current year is Rs.0.07 lacs (Previous year Rs. 0.10 lacs)

11) Additional information pursuant to Note 5 of Part-I I of the Schedule - III of the Companies Act, 2013 is given below to the extent applicable.

12) Previous year's figures have been regrouped/rearranged wherever considered necessary.

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Mar 31, 2014

1. Company Overview

IEC Education Limited (the "Company') was incorporated on 23rd August,1994 in India as a public limited Company. The Company made an initial public offer in March, 1996. As at 31st March, 2014 the Company is listed on Three Stock exchanges in India namely Bombay Stock Exchange, Delhi Stock Exchange and Jaipur Stock Exchange. The Company has three Subsidiaries located in India. The Company's business consists of Computer education, Franchisee business & Personality development programme.

2. There is no change in the number of shares outstanding at the beginning and at the end of the period.

3. The company does not have any holding company.

4. The company has only one class of equity shares having par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per shares. In the event of liquidation of the company, the holders of equity shares will be entitled to receive assets of the company. The distribution will be in proportion to the number of equity shares held by the shareholders.

5. The company has issued an aggregate of 20,00,000 upto 31/03/2014 (Previous period 50,00,000 upto 31/03/2013) equity shares in the last five years immediately preceding the balance sheet date to the warrant holders upon conversion of sharewarrants into fully paid equity shares of Rs.10/- each.

6. Contingent Liabilities not provided for:

Current Year Previous Year (Rs. in lacs) (Rs. in lacs)

Claims against the company not 72.84 72.84 Acknowledged as debt

7. In view of the confirmation not having been obtained from the Trade receivables, Loans and Advances (both Long-term and Short- term) and Trade payables, the accounts are subject to adjustment on receipt of confirmation of balance and /or reconciliation of accounts the impact where of on account cannot be ascertained at this stage.

8. In the opinion of the Board of Directors, the Tangible Fixed Assets, the Trade receivables and Loans and Advances (both Long-term & Short-term) have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

9. No provision for doubtful Trade receivable and Long term loans & advances of Rs.128.85 lacs (Previous year Rs. 128.85 lacs) and Rs.28.03 lacs (Previous year Rs.38.03 lacs) respectively has been made because in the opinion of management, these amounts are still good in nature and management is hopeful of their recovery.

10. The Subsidiaries Companies made a combined net Loss of Rs.6.81 lacs for the year ended 31st March,2014. This loss together with the brought forward loss of Rs.48.46 lacs has been carried to the Balance Sheet. The holding Company's Share of loss out of Rs.55.27 lacs has not been dealt with in the holding Company's books of accounts.

11. Segment Reporting - Basis of Preparation

The segment reporting policy complies with the accounting policies adopted for preparation and presentation of financial statements of the company and is in conformity with Accounting Standard-17 on " Segment Reporting", as specified in the Companies (Accounting Standard) Rules,2006.The primary segmentation is based on the nature and type of Services rendered. Segment assets and liabilities represent the net assets and liabilities of that segment.

12. Related Party Disclosures (Pursuant to Accounting Standard (AS) -18), are given below: Relationship:

a) Subsidiary Companies

IEC Leasing & Capital Management Ltd.

IEC Learning and Managements Ltd.

IEC Education and Infrastructure Ltd.

b) Other related parties where transactions have taken place:

Vocational Education Foundation.

Vocational Educational Trust.

IEC College of Engg.& Technology RLNG Infrastructure Pvt. Ltd.

c) Directors of the Company:

Brig.S.V.S.Chowdhry Non Executive Director

Mr. R.L. Gupta Non Executive Director

Mr. Kailash Nath Non Executive Director

Mr. Sarabjit Singh Saini Non Executive Director

Mr. Rasik Makker Non Executive Director

Mr. Girish Narang Non Executive Director

Dr. Naveen Gupta Managing Director

Mr. J.K. Bhola Non Executive Director

d) Relative of Directors and their enterprises where transactions have taken place:

Mrs. Shalini Gupta Mr. Dheeraj Mangal

13. There are no transaction which are required to be disclosed under clause 32 of the Listing Agreement with the Stock Exchange where the equity shares of the Company are listed.

14. Previous year's expenditure accounted for under the respective heads of accounts during the current year is '.0.10 Thousands (Previous year Rs.2.06 lacs)

15. Previous year's figures have been regrouped / rearranged wherever considered necessary.

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Mar 31, 2013

1. The above Cash Flow Statement has been prepared under the ACI-Indirect Method ACI- as set out in the Accounting Standard - 3 on Cash Flow Statement notified under the Companies (Accounting Standards) Rules,2006.

2. Cash and cash equivalents include AGA-.2.15 Lacs (Previous year AGA-.1.99 lacs) on account of fixed deposit earmarked and pledged which are not available for use in the Company.

3. Figure in brackets represent cash out flow from respective activities.

4. As breakup of Cash and cash equivalents is also available in Note No.2.13 reconciliation of items of Cash and cash equivalents as per Cash Flow Statement with the equivalents items reported in the Balance Sheet is not required and hence not provided.

5. Previous year figures have been regrouped/recasted wherever necessary.

(a) There is no change in the number of shares outstanding at the beginning and at the end of the period.

(b) The company does not have any holding company.

(c) The company has only one class of equity shares having par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per shares. In the event of liquidation of the company, the holders of equity shares will be entitled to receive assets of the company. The distribution will be in proportion to the number of equity shares held by the shareholders.

(d) The company has issued an aggregate of 50,00,000 up to 31/03/2013 (Previous period 50,00,000 up to 31/03/2012) equity shares in the last five years immediately preceding the balance sheet date to the warrant holders upon conversion of share warrants into fully paid equity shares of Rs. 10/- each.

(e) The company has issued an aggregate of 32,60,000 upto 31/03/2013 (Previous period 32,60,000 up to 31/03/2012) equity shares of AGA-. 10/- each without payment being received in cash in the last 5 years immediately preceding the balance sheet date pursuant to the scheme of arrangement.

(a) Nature ACY- Securities:- Term loan from banks is secured by charge by way of hypothecation of vehicles purchased under Vehicle Finance Scheme.

(b) Repayment Terms:- 35 monthly installments of Rs. 1,76,140/- from 15-08-2011 35 monthly installments of Rs. 1,93,980/- from 05-06-2011

6 monthly installments of Rs. 1,93,980/- from 05-06-2011

7 monthly installments of Rs. 1,43,873/- from 15-07-2011

(c) The interest rate for above term loan varies from 10.75 ACU- to 13.33 ACU-.

1) Contingent Liabilities not provided for: (in Rs.lac)

Current Year Previous Year

a) Claims against the company not 72.84 72.84 acknowledged as debt

b) Bank Guarantee 0.00 0.80

2) In view of the confirmation not having been obtained from the Trade receivables, Loans and Advances (both Long-term and Short- term) and Trade payables, the accounts are subject to adjustment on receipt of confirmation of balance and /or reconciliation of accounts the impact where of on account cannot be ascertained at this stage.

3) In the opinion of the Board of Directors, the Tangible Fixed Assets, the Trade receivables and Loans and Advances (both Long-term ACY- Short-term) have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

4) No provision for doubtful Trade receivable and Long term loans ACY- advances of Rs.128.85 lacs (Previous year Rs. 128.85 lacs) and Rs.38.03 lacs (Previous year Rs.38.03 lacs) respectively has been made because in the opinion of management, these amounts are still good in nature and management is hopeful of their recovery.

5) The Subsidiaries Companies made a combined net Loss of Rs.6.87 lacs for the year ended 31st March, 2013. This loss together with the brought forward loss of Rs..41.59 lacs has been carried to the Balance Sheet. The holding Company''s Share of loss out of Rs.48.46 lacs has not been dealt with in the holding Company''s books of accounts.

6) Deferred Tax: In accordance with Accounting Standard (AS)-22 on ACI-Accounting for Taxes on Income Tax ACI- issued by the Institute of Chartered Accountants of India and based on the reasonable certainty that sufficient future taxable income will be available, the company has accounted for deferred tax during the year.

7) Segment Reporting - Basis of Preparation

The segment reporting policy complies with the accounting policies adopted for preparation and presentation of financial statements of the company and is in conformity with Accounting Standard-17 on ACI-Segment Reporting ACI-, as specified in the Companies (Accounting Standard) Rules,2006.The primary segmentation is based on the nature and type of Services rendered. Segment assets and liabilities represent the net assets and liabilities of that segment.

8) Related Party Disclosures (Pursuant to Accounting Standard (AS) -18), are given below:

Relationship:

a) Subsidiary Companies

- IEC Leasing ACY- Capital Management Ltd.

- IEC Learning and Managements Ltd.

- IEC Education and Infrastructure Ltd.

b) Other related parties where transactions have taken place:

- Vocational Education Foundation

- Vocational Educational Trust

- IEC College of Engg. ACY- Technology

- RLNG Infrastructure Pvt. Ltd.

d) Relative of Directors and their enterprises where transactions have taken place:

Mrs. Shalini Gupta Mr. Dheeraj Mangal

9) There are no transaction which are required to be disclosed under clause 32 of the Listing Agreement with the Stock Exchange where the equity shares of the Company are listed.

10) Previous year''s expenditure accounted for under the respective heads of accounts during the current year is Rs..2.06 lacs (Previous year AGA-.5.96 lacs)

11) Additional information pursuant to paras 3, 4C and 4D of Part-II of the Schedule - VI of the Companies Act, 1956 is given below to the extent applicable.

12) Previous year''s figures have been regrouped / rearranged wherever considered necessary.

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Mar 31, 2012

A) There is no change in the number of shares outstanding at the beginning and at the end of the period.

b) The company does not have any holding company.

c) The company has only one class of equity shares having par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per shares. In the event of liquidation of the company, the holders of equity shares will be entitled to receive assets of the company. The distribution will be in proportion to the number of equity shares held by the shareholders.

d) The company has issued an aggregate of 50,00,000 upto 31/03/2012 (Previous period 50,00,000 upto 31/03/2011) equity shares in the last five years immediately preceding the balance sheet date to the warrant holders upon conversion of share warrants into fully paid equity shares of Rs. 10/- each.

(e) The company has issued an aggregate of 32,60,000 upto 31/03/2012 (Previous period 32,60,000 upto 31/03/2011) equity shares of Rs. 10/- each without payment being received in cash in the last 5 years immediately proceeding the balance sheet date pursuant to the scheme of arrangement.

f) General recurve is primarily created to comply with the requirements of Section 205 (2A) of the Companies Act, 1956. This is a free reserve and can be utilized for any general purpose like issue of bonus shares, payment of dividend,buy back of shares etc.

a) Nature & Securities: Term loan from banks is secured by charge by way of hypothecation of vehicles purchased under Vehicle Finance Scheme.

b) Repayment Terms:

35 monthly instalments of Rs. 1,76,140/- from 15-08-2011 35 monthly instalments of Rs. 1,93,980/- from 05-06-2011

35 monthly instalments of Rs. 1,93,980/- from 05-06-2011

36 monthly instalments of Rs. 1,43,873/- from 15-07-2011

c) The interest rate for above term loan varies from 10.75% to 13.33%

1) Contingent Liabilities not provided for: (in Rs. lac)

Current Year Previous Year

a) Claims against the company not 72.84 72.84 acknowledged as debt

b) Bank Guarantee 0.00 0.80

2) In view of the confirmation not having been obtained from the Trade receivables, Loans and Advances (both Long-term and Short- term) and Trade payables the accounts are subject to adjustment on receipt of confirmation of balance and /or reconciliation of accounts the impact where of on account cannot be ascertained at this stage.

3) In the opinion of the Board of Directors, the Tangible Fixed Assets, the Trade receivables and Loans and Advances (both Long-term & Short-term) have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

4) No provision for doubtful Trade receivable and Long term loans & advances of Rs. 128.85 lac (Previous year Rs. 128.85 lac) and Rs. 38.03 (Previous year Rs. 69.69) respectively has been made because in the opinion of management, these amounts are still good in nature and management is hopeful of their recovery.

5) The Subsidiaries Companies combined made a net Loss of Rs. 8.34 for the year ended 31st March, 2012. This loss together with the brought forward loss of Rs. 33.26 has been carried to the Balance Sheet. The holding CompanyRs.s Share of loss out of Rs. 41.60 has not been dealt with in the holding Company's books of accounts.

6) Deferred Tax: In accordance with Accounting Standard (AS)-22 on "Accounting for Taxes on Income Tax" issued by the Institute of Chartered Accountants of India and based on the reasonable certainty that sufficient future taxable income will be available, the company has accounted for deferred tax during the year.

7) Related Party Disclosures (Pursuant to Accounting Standard (AS) -18), are given below:

Relationship:

a) Subsidiary Companies

IEC Leasing & Capital Management Ltd.

IEC Learning and Managements Ltd.

IEC Education and Infrastructure Ltd.

b) Other related parties where transactions have taken place:

Vocational Education Foundation

Vocational Educational Trust IEC College of Engg. & Technology

c) Directors of the Company:

Brig. S.V.S. Chowdhry Non Executive Director

Dr. Naveen Gupta Managing Director

Mr. R.L. Gupta Non Executive Director

Mr. Kailash Nath Non Executive Director

Mr. Sarabjit Singh Saini Non Executive Director

Mr. Rasik Makker Non Executive Director

Mr. H.P Singh Non Executive Director

Dr. A.K. Khare Non Executive Director

Mr. J.K. Bhola Non Executive Director

d) Relative of Directors and their enterprises where transactions have taken place: Mrs. Shalini Gupta

Mr. Dheeraj Mangal

Note: Figures in brackets represent Previous Year's amount.

8) There are no transaction which are required to be disclosed under clause 32 of the Listing Agreement with the Stock Exchange where the equity shares of the Company are listed.

9) Previous year's expenditure accounted for under the respective heads of accounts during the current year is Rs. 5.96 lac (Previous year Rs. 0.07 lac)

10) Previous year s figures have been regrouped / rearranged wherever considered necessary.

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Mar 31, 2010

1) Contingent Liabilities not provided for :

Current Year Previous Year

a) Claims against the company not 72,83,646.00 75,24,828.00 Acknowledged as debt

b) Bank Guarantee 33,82,823.00 60,71,452.24



2) Based on the information presently available with the management no amounts are outstanding as at 31st March,2010 to micro, small and medium enterprises identified as per provisions of Micro, Small and Medium Enterprises Development Act,2006 (“MSMED Act”)

3) The Building purchased by the Company at M-92, Connaught Place, New Delhi, from the promoters in the earlier years is yet to be registered in the Companys name.

4) In view of the confirmation not having been obtained from the Sundry Debtors, Loans and Advances and Sundry Creditors the accounts are subject to adjustment on receipt of confirmation of balance and /or reconciliation of accounts the impact where of on account cannot be ascertained at this stage.

5) In the opinion of the Board of Directors, the Fixed Assets, the Current Assets and Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

6) No provision for doubtful debts and advances of Rs. 1,28,84,944.94 (Previous Year Rs. 1,28,84,944.94) and Rs. 51,03,404.45 (Previous Year Rs. 1,01,03,404.45) respectively has been made because in the opinion of management, these amounts are still good in nature and management is hopeful of their recovery.

7) Security deposit under loans & advances Schedule include an amount of Rs. 10,00,00,000/- (Previous year Rs. 5,11,55,017.37) pursuant to agreements for business given to two trust in which two directors of the Company are interested. Further security deposit includes an amount of Rs.56,00,000/- (Previous year 56,00,000/-) given to one director of the Company.

8) Advance recoverable in Cash or in Kind under loans and advances Schedule include an amount of Rs.7,00,000/- (Previous Year Rs.49,00,000/- given to two director of the Company.

9) During the earlier year the company had issued 20,00,000 (twenty lakhs) fully convertible share warrants @ Rs.30/- each to the promoters and non promoter group.The company had received Rs.3/-per share warrant being 10% of total consideration. Since the balance payment could not be received within the stipulated time the amount of Rs.60,00,000/- received in earlier year has been forfeited and transferred to Capital Reserve.

10) The Subsidiary Company made a Loss of Rs.3,43,026.00 for the year ended 31st March,2010. This loss together with the brought forward loss of Rs.25,13,083.80 has been carried to the Balance Sheet. The holding Companys Share of loss out of Rs.28,56,109.80 has not been dealt with in the holding Companys books of accounts.

11) Amount of borrowing cost capitalized as per Accounting Standards (AS) -16 during the year was Rs. NIL

12) Segment Reporting (AS)-17

13) Disclosure in respect of operating leases under Accounting Standard (AS)-19 ‘Leases prescribed by the Companies (Accounting Standards) Rules, 2006.

a) General description of the Companys operating lease arrangements:

The Company enters into operating lease arrangements for leasing offices and residential Premises for its employees and students. Some of the significant term and conditions of the arrangements are :

- Agreements for most of the premises may generally be terminated by the lessee or either party by serving one to two months notice or by paying the notice period rent in lieu thereof.

- The lease arrangements are generally renewable on the expiry of lease period subject to mutual agreement.

- The Company shall not sublet, assign or part with the possession of the premises without prior written consent of the lessor.

b) Lease rent charged to the profit and loss account Rs 5,67,000/-(previous year Rs. 15,05,065.00 )

14) Related Party Disclosures (Pursuant to Accounting Standard (AS) -18), are given below:

Relationship :

a) Subsidiary Companies

IEC Leasing & Capital Management Ltd IEC Learning and Managements Ltd. IEC Education and Infrastructure Ltd.

b) Other related parties where transactions have taken place:

Vocational Education Foundation

VEF Housing & Developers Pvt. Ltd.

Satguru Infracon Pvt.Ltd.

Sunway Energy Pvt. Ltd.

Vocational Educational Trust.



c) Directors of the Company:

Brig.S.V.S.Chowdhry Non Executive Director

Mr. L.C Goel Non Executive Director

Mr.R.L.Gupta Non Executive Director

Mr.Kailash Nath Non Executive Director

Mr. Sarabjit Singh Saini Non Executive Director

Mr. Rasik Makkar Non Executive Director

Mr. H.P Singh Non Executive Director

Mr. Navin Gupta Managing Director

Mr. H.R.Issarani Non Executive Director

Mr.A.K. Khare Non Executive Director

Mr. J.K.Bhola Non Executive Director

15) Previous years expenditure accounted for under the respective heads of accounts during the current year is Rs.64,927.85/- (Previous year Rs.2 ,60,297/-)

16) Previous years figures have been regrouped / rearranged wherever considered necessary.

---

Mar 31, 2009

1) Contingent Liabilities not provided for:

Current Year. Previous Year

a) Claims againstthe company not 75,24,828.00 1,34,79,000.00 Acknowledged as debt

b) Bank Guarantee 60,71,452.24 61,51,542.07

2) Based on the information presently available with the management no amounts are outstanding as at 31st March,2009 to micro,small and medium enterprises identified as per provisions of micro, small and medium enterprises development act,2006 ("MSMEDAct")

3) The Building purchased by the Company at M-92, Connaught Place, New Delhi, from the promoters in the earlier years is yet to be registered in the Companys name.

4) In view of the confirmation not having been obtained from the Sundry Debtors, loans and Advances, Sundry Creditors and one bank, the accounts are subject to adjustment on receipt of confirmation of balance and/or reconciliation of accounts the impact whereof on account cannot be ascertained at this stage.

5) In the opinion of the Board of Directors, the Fixed Assets, the Current Assets and Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet

6) No provision for doubtful debts and advances of Rs. 1,28,84,944.94 and Rs. 1,01,03,404.45 respectively has been made because in the opinion of management, these amounts are still good in nature and managements is hopeful of their recovery.

7) A Sum of Rs. 92271 lying in the Investor Education and Protection fund towards unpaid dividend has since been transferred to the. General Revenue Account to the Central Government after the due date owing to delay in reconciliation.

8) Security deposit under loans & advances Schedule include an amount of Rs. 51155017.37 (Previous year Rs. 20000000.00) pursuant to agreements given to two trust in which two directors of the Company are interested. Further security deposit includes an amount of Rs. 5600000/- (Previous year NIL) given to one director of the Company.

9) Advance recoverable in cash or in kind under loans and advances Schedule include an amount of Rs. 42,00,000/- Post merger (Pre merger Rs.NIL) given to one director of the Company.

10) a) In terms of a scheme of arrangement and order dated 06/01/2009 of the Honble High Court of Delhi, M/s VEF Information System Pvt. Ltd. has been Amalgamated with the Company w.e.f. 06/01/2009. Pursuant to said scheme , the Company has taken over all the assets , liabilities and obligations of VEF Information System Pvt. Ltd and accounted for under the Pooling of interest method as prescribed by Accounting Standard(AS-14) lssued by the lnstitute of Chartered Accountants of India.

b) Pursuant to above scheme, 32,60,000 equity shares of Rs.l0/-each have been issued as fully paid up to the shareholders of VEF Information System Pvt. Ltd. without Payment being received in cash in the proportion of 326 Equity Shares of Rs. 10/-each inlEC Education Ltd credited as fully paid up for every 100 equity shares of Rs.10/- each held by the shareholders in VEF Information System Pvt. Ltd.

c) Pursuant to above scheme of arrangement, the General Reserves of the Company have been reduced by Rs. 2,25,27,731.00 being the net excess of assets over liabilities taken over by the Company consequent on the amalgamation and as reduced by the face value of share issued to the shareholders of the erstwhile VEF Information System Pvt. Ltd .as under: Value of Assets taken over as at 6th January ,2009

d) Pursuant to above scheme of arrangement, and order dated 06/01/2009 of Honble High Court of Delhi, Debit Balance of Profit & . Loss Accounts of the Company has been adjusted against Capital Reserve and Share Premium Accounts.

e) M/s. VEF Information System P.Ltd is engaged in the business of information technology and provides educational and support services to certain private educational institutes.

11) The Subsidiary Company made a Loss of Rs.158163.00 for the year ended 31st March,2009. This loss together with the brought forward loss of Rs.2354920.80 has been carried to the Balance Sheet. The holding Companys Share of loss out of Rs.2513083.80 has not been dealt with in the holding Companys books of accounts.

12) Deferred Tax : In accordance with accounting standard As 22 on "Accounting for Taxes on Income Tax " issued by the Institute of Chartered Accountants of India and! based on the reasonable certainty that sufficient future taxable income will be available, the company has accounted for deferred tax during the year. The major components of deferred tax Assets/ Liabilities are as under:

13) Amount of borrowing cost capitalized as per Accounting Standards-16 during the year was Rs. NIL.

14) Disclosure in respect of operating leases under Accounting Standard (AS) - 19 Leases prescribed by the Companies (Accounting Standards) Rules, 2006.

a) General description of the Companys operating lease arrangements:

The Company enter into operating lease arrangements for leasing offices and residential premises for its employees and students. Some of the significant term and conditions of the arrangements are:

- agreements for most of the premises may generally be terminated by the lessee or either party by serving one to two months notice or by paying the notice period rent in lieu There of.

- The lease arrangements are generally renewable on the expiry of lease period subject to Mutual agreement.

- The Company shall not sublet, assign or part with the possession of the premises without prior written consent of the lessor.

b) Lease rent charged to the profit and loss account Rs. 15,05,065.00 (Including prior period expenses Rs. Nil) (previous year Rs. 2,00,850.00).

c) The total of future minimum lease payments under non - cancelable operating leases is given below :-

Relationship:

a) SubsidiaryCompanies

IEC Leasing & Capital Management Ltd IEC Learning and Managements Ltd. IEC Education and Infrastructure Ltd.

b) Other related parties where transactions have taken place. Vocational Education Foundation

VEF Housing & Developers Pvt. Ltd. Satguru Infracon Pvt. Ltd. Sunway Energy Pvt. Ltd. Vocational Educational Trust.

a) Relative of Directors and their enterprises where transactions have taken place :- Mrs .Sharda Gupta Mrs. Shalini Gupta

15) Previous years expenditure accounted for under the respective heads of accounts during the current year is Rs.2,60,297 /- (Previous year Rs. 23,640/-)

16) Additional information pursuant to paras 3,4C and 4D of Part-ll of the Schedule - VI of the Companies Act, 1956 is given below to the extent applicable.

17) Previous years figures have been regrouped /rearranged wherever considered necessary.