MT Educare Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018
1. These results have been prepared in accordance with the Indian Accounting Standards (INDAS) notified under Companies Indian Accounting Standards Rules, 2015.
2. The Standalone and Consolidated Unaudited Financial Results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at their respective meetings held on January 18, 2019.
3. The Company is primarily engaged in one business segment namely coaching services as determined by the chief operating decision maker in accordance with IND AS 108 - "Operating Segments".
4. Direct expenses mainly includes purchase of tablets / SD cards which are issued to students as a part of course material, rent for coaching centres and fees paid to visiting faculties.
5. Effective April 1, 2018, the Company has adopted INDAS 115 using the cumulative effect method. The standard is applied retrospectively only to contracts that are not completed as at the date of initial application and the comparative information is not restated in the financial results. The adoption of the standard did not have any material impact on the financial results of the Company.
6. During the previous quarter, the Company had purchased 100% shareholding of Labh Ventures India Private Limited by way of execution of Share Purchase Agreement for a consideration of Rs. 1,628 lakhs. Accordingly, Labh Ventures India Private Limited has become wholly owned subsidiary of the Company w.e.f. September 01, 2018. This acquisition is being accounted in accordance with the acquisition method as described under Ind AS 103 "Business Combinations".
The excess of acquisition date fair value of net assets acquired over the purchase consideration is accounted for as bargain purchase in the consolidated financial results. The Company has recognised the bargain purchase gain amounting to Rs. 17.49 lakhs in other comprehensive income on the acquisition date and.
7. During the quarter and nine months ended December 31, 2018, the Company has allotted 443,070 equity shares pursuant to the exercise of options under the approved employee stock option scheme.
8. Previous period figures have been regrouped / reclassified wherever necessary to make them comparable.