Virtual Global Education Audit Qualifications Impact Statement

| Particulars | As Reported (Before Adjustment) | After Adjustment |

| Turnover/Total Income | 24.83 | 24.83 |

| Total Expenditure | 21.88 | 108.61 |

| Net Profit | 2.95 | (83.78) |

| Earning Per Share (₹) | 0.001 | (0.015) |

| Total Assets | 8367.80 | 8281.07 |

| Total Liabilities | 850.79 | 850.79 |

| Net Worth | 7517.00 | 7430.28 |

| Particulars | As Reported (Before Adjustment) | After Adjustment |

| Turnover/Total Income | 24.83 | 24.83 |

| Total Expenditure | 21.89 | 108.62 |

| Net Profit | 2.94 | (83.79) |

| Earning Per Share (₹) | 0.001 | (0.015) |

| Total Assets | 8370.71 | 8283.98 |

| Total Liabilities | 853.94 | 853.94 |

| Net Worth | 7516.77 | 7430.04 |

Details: Material financial irregularities involving unauthorized transactions and misappropriation of funds by the Company's Chief Financial Officer (CFO) & Director Mr. Ankit Sharma. A special audit dated 28.5.2025 identified fictitious payments, unsupported expenses, and unauthorized fund transfers aggregating to ₹88,17,931 during FY 2024-25.
Status: Amount not recovered as of the report date. Company is initiating legal and disciplinary proceedings. No provision made in financial statements. Auditor states company must record an impairment and provision of ₹88,17,931 for year ended March 31, 2026.
Management Comments: Acknowledges financial irregularities of ₹88,17,931 by former CFO. Initiated legal recovery proceedings and strengthening internal controls. Filed complaint (Complaint no. 801012509075 dated 13.02.2025) against Mr. Ankit Sharma.
Auditor Comment: Acknowledges FIR filing but notes regular follow-up not initiated. Financial statements do not present true and fair view until fraud effects are fully accounted for.

Details: Company allotted 14,25,00,000 fully convertible warrants of ₹1 each on preferential basis to non-promoters per shareholder resolution dated 10.09.2024. 25% of warrant issue price received in FY 2024-25, balance 75% received in FY 2025-26.
Issue: Insufficient evidence and documents to verify utilization as per SEBI approval purpose.
Management Comments: Management is in process of collating documents.
Auditor Comment: Impact not quantifiable due to lack of information. Will attempt quantification once information is provided.

Details: Advance of ₹5,32,20,571 given for purchase of land at Gurugram up to 30th September 2026. Management unable to provide proper supporting documents.
Management Comments: Noted and will take steps to comply.
Auditor Comment: Unable to determine whether transaction appropriately recorded due to absence of sufficient audit evidence.

Details: Loans & Advances of ₹21,44,00,000 given up to 30th September 2026. Management unable to provide nature of advances and supporting documentation.
Management Comments: Noted and will take steps to comply next year.
Auditor Comment: Company has not provided adequate documentary evidence or explanations to support nature and purpose.

Details: Payment of ₹6,37,09,996 up to 30th September 2026 against training expenses payable. No supporting documents provided.
Management Comments: Noted and will take steps to provide information at earliest.
Auditor Comment: Company has not provided adequate documentary evidence or explanations to support training expenses.

Type of audit qualification: Qualified Opinion
Frequency of qualification: Yes (recurring)
Management estimation on impact: Management has noted issues and will take steps to comply in next year
Reason for inability to estimate impact: Management needs time to comply