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, 2015 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.

1. Significant Accounting Policies

1.1) Basis of Accounting:

The accompanying financial statements have been brpared in compliance with the requirements under section 133 of the

Companies Act, 2013 (to the extent notified), read with Rule 7 of the Companies (Accounts) Rules, 2014, and other generally accepted accounting principles (GAAP) in India, to the extent applicable, under the historical cost convention, on the accrual basis of accounting, GAAP comprises standards as specified in the Companies (Accounting Standards) Rules, 2006.

1.2) Use of Estimates:

The brparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires

management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3) Fixed assets:

1) Tangible fixed assets are stated at cost less accumulated debrciation and impairment losses if any. Cost of acquisition or construction is inclusive of freight, duties, taxes and incidental expenses related to such acquisition or construction.

2) Intangible fixed assets are stated at cost less amortization.

1.4) Debrciation

Debrciation is systematically allocated over the useful life of an asset as specified in part C of schedule II of Companies Act.2013.

1.5) investments:

Investments are classified into long term and current investments based on the intent of management at the time of acquisition. Long-term investments are stated at cost of acquisition and related expenses. Provision is made to recognize a decline, other than temporary, in the value of long term investments on an individual basis.

Current investments are carried at the lower of cost and net realizable value.

1.6) Employee Benefits:

Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit & Loss Account of the year in which the relative service is rendered.

Provision for gratuity is made, in the books of account as per the provisions of Payment of Gratuity Act, 1972 on the assumption that all the employees are entitled to gratuity at the end of the accounting year. Provision for leave encashment is provided for at the end of financial year on the basis of last month drawn salary of the employees.

1.7) Revenue Recognition:

The revenue in respect of sale of courseware is recognized on delivery of materials. The revenue from training and education activity is recognized over the period of the course program. Revenue in respect of other consultancy receipts is recognized upon rendering of the service. All other income are accounted for on accrual basis. Claims including insurance claims are accounted for on the acceptance and determination of the amounts recoverable by the concerned authorities.

1.8) Dividend:

Dividend proposed, if any, by the Board of Directors as appropriation of profit is provided for in the books of account pending approval of the shareholders atthe annual general meeting.

1.9) Taxes on Income:

The expense comprises current and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. The impact of current year timing differences between taxable income and accounting income for the year is recognized as a deferred tax asset or deferred tax liability. The tax effect is calculated on accumulated timing differences at the end of accounting year, based on effective tax rate substantively enacted by the balance date. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized in future; however where there is unabsorbed debrciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets.

1.10) Borrowing Cost:

Financing costs relating to borrowed funds attributable to construction or acquisition of qualifying assets for the period up to the completion of construction or acquisition of such assets are included in the costs of the assets. Other financing costs are recognized as an expense in the period in which they are incurred.

1.11) Leases:

Lease arrangements where the risk and rewards incidental to ownership of an asset substantially vest with the lessor are recognized as operating leases. Payments under operating lease are recognized in statement of profit & loss account on a accrual basis over the lease term. Rental income is recognized on accrual basis over the lease term.

1.12) Impairment of Assets:

Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. Impairment occurs where the carrying value exceeds the brsent value of future cash flows expected to arise from the continuing use of asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the asset's net sales price or brsent value as determined above. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of debrciation or amortization, if no impairment loss had been recognized.

1.13) Provision and Contingencies:

The Company recognizes a provision when there is a brsent obligation as results of a past event and it is probable that it would involve an outflow of resources and a reliable estimate can be made of the amount of such obligation. Such provisions are not discounted to their brsent value and are determined based on the management's estimation of the obligation required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect management's current estimates.

A disclosure for a contingent liability is made where it is more likely than not that a brsent obligation or possible obligation may result in or involve an outflow of resources. When no brsent or possible obligation exists and the possibility of an outflow of resources is remote, no disclosure is made.

Contingent assets are not recognised in the financial statements.

1.14) Operating cycle:

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

2. Notes to accounts

Other Disclosures

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 accountsthe 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 isa dispute with thetrustand 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) 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.

8) 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)

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

In terms of our report attached

For Nath & Hari

Chartered Accountants

F.R.NO.007403N

(Kailash Hari)

M.No.082285

Partner

For and on behalf of the Board of Director

For and on behalf of the Board of Director

Naveen Gupta (Chairman & M.D) (00097128)

Kailash Nath (Director) (01409788)

Rasik Makkar (Director) (00104285)

Girish Narang (Director) (00001100)

Sarabjit S. Saini (Director) (00104558)

Shalini Gupta (Director) (00114181)

J.K. Bhola (Director) (02191970)

Mohnish Dutta (Company Secretary)

Ashutosh Kumar Jha (Chief Finance Officer)

Place:- Delhi

Date:- 30th May, 2015