Everonn Education Ltd is in the process of evaluating opportunities as part of restructuring of its subsidiary operations. The company, during quarter-ended March 31, 2014, narrowed its net loss by over 23 per cent to Rs 53.13 crore for the corresponding quarter of previous fiscal year. The total income from operations fell 25.6 per cent to Rs 10.24 crore compared to the previous year.
The company, which has been facing various challenges and developments, including allegations of bribe against the original promoters and others, and change of management, is presently in the process of "making judicious evaluation of businesses carried out by each of the entities in their respective sphere of operations," said the company while publishing its results for the quarter ended March 31, 2014.
"The company is at present mulling appointment of consultants to advise it regarding the future business opportunities which the entities can exploit gainfully or whether the operation of these entities need to be scaled down / revamped / wound up," it said.
The company has an investment of Rs 247.58 crore in its subsidiaries and in other associates and has also extended loans and advances of Rs 141.09 crore to these subsidiaries / associates as on March 31, 2014.
It added that it is monitoring the possible losses that need to be kept at a bare minimum on account of this proposed restructuring. “Pending the finalisation of these proposals which are in the embryonic stage, the company has not recognised in its accounts any diminution in the value of its investments,” it said.
Everonn Education had 12 subsidiaries and three step-down subsidiaries during the period ended March 31, 2014.
The company has also approved the offer of shares through rights issue and conversion of one Optionally Convertible Debenture (OCD) of the value of Rs 4.33 crore each allotted to The Concorde Residential Schools (Kerala).
Pvt Ltd into 1,091,303 equity shares of Rs 10 each at Rs 39.69 per share.
For the quarter-ended March 31, 2014, the net loss of the company has narrowed 23.25 per cent to Rs 53.13 crore over the corresponding quarter of the previous fiscal year. The total income from operations stood at Rs 10.24 crore for the quarter, a drop of 25.6 per cent.
The company has restructured its debts with banks and the same has been appropriately dealt with in the accounts for the year, it said. It has also received notices from certain parties alleging defaults in services and payments due to them by the company. The management is discussing with its legal team the evaluation of the financial impact of these claims, it added.
It has also received various demand notices of Income tax, Service Tax, VAT from various authorities together with interest and the company has disputed all the issues and has filed appeals before various appellate authorities and the matters are pending for adjudication, it said.
It has recognised a sum of Rs 64.95 crore as an exceptional item based on information available from the review on the value and existence of fixed assets, including impairment loss if any, in respect of both tangible and intangible fixed assets and other irrecoverable asets. Additional amounts arising as a result, will be adjusted at the time of declaring the first quarter results based on the final completion of study, added the company.
