Annual Report 2014-2015
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A nnual Report 2014 -2015 1 CL Educate Annual Report 2014-15 CL Educate Annual Report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bout the Company – CL Educate Limited Overview and are committed to delivering deliverables and expectations from path breaking education across the them. CL Educate Ltd is India’s leading various segments mentioned Innovation Creating products, diversified provider of educational above to all our students. systems and processes with products, services, content and Core Ideology enhanced effectiveness to meet infrastructure. Since the inception customer needs. in 1995, we have evolved from a We belive that the only one-man MBA test-preparation unchanging part of any business We follow our core values in all (“test prep & training”) company entity is the core ideology. Our aspects of our operating practices into one of the most diversified clarity about our core ideology and at all our locations. We believe educational service providers in equips us to effectively keep that our adherence to these core India. The diversity of our business reinventing ourselves over time values has enabled us to grow our portfolio enables us to touch and makes us capable of business and our brand and we will students across multiple age converting every change in the continue to adhere to these groups across their educational environment into an opportunity principles. lifecycles. for growth and success. Further, our core values have taken At CL Educate we 'enable Our core purpose is to “Enable the shape of a core value test that individuals to realize their potential people realize their potential and has been designed in consultation & achieve their dreams'. In the past make their dreams come true” and with external experts in the realm 20 years, the CL brand has our core values are summed up in of psychology and psychometrics. diversified and effectively the internal acronym ‘ROOHI’ Any new recruit to our Company is established itself as a household required to take this test prior to name in India. We operate across a Risk Taking Acting decisively based their meeting for the recruitment broad spectrum of segments in the on sound judgment and intuition. process. education industry, including test preparation & Training, publishing Ownership Accepting responsibility & content development, K-12 for action and carrying the team education, and vocational training. forward in a crisis situation. Openness Regularly sharing We have state of the art experiences with team members infrastructure across more than and customers, and encouraging 200 learning centers spread over 22 feedback and initiative from them. states in India. We are over 2,000 people strong; with teachers, Honesty & commitment to trainers & academicians making up customers Communicating clearly more than 50% of this workforce, & honestly to customers, the 3 CL Educate Annual Report 2014-15 Historical Data for CL Educate (FY 2011 – FY 2015) Total Income (in Mn) Operating Profit - EBITDA (in Mn) 1,549 192.0 176.0 187.0 165.0 1,348 1,236 937 1,014 108.8 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 * Includes a Provision write-back to the tune of ` 112.8 mn Profit after Tax - PAT (in Mn) 75.0 58.9 65.8 17.5 (58.3) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Return on Capital Employed - RoCE Earnings per Share – EPS 8.57 75.0 58.9 65.8 6.27 6.14 3.50 17.5 (58.3) (6.41) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 4 CL Educate Annual Report 2014-15 Historical Data for Consolidated CL Group including K-12 (FY 2011 – FY 2015) Total Income (in Mn) Operating Profit - EBITDA (in Mn) 2,831 440.6 2,219 2,276 347.7 326.2 1,761 1,339 220.8 234.7 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 * Includes a Provision write-back to the tune of ` 112.8 mn Profit after Tax - PAT (in Mn) 209.8 148.0 113.7 95.0 (42.5) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Return on Capital Employed - RoCE Earnings per Share - EPS 21.73 15.3% 16.2% 13.9% 17.12 10.8% 11.0% 10.77 12.10 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 (4.84) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 5 CL Educate Annual Report 2014-15 Boards and Committees (As On August 03, 2015) The Board of Directors Nomination, Remuneration and Mr. Nikhil Mahajan, Member Compensation Committee Company Secretary Mr. Satya Narayanan. R Mr. Viraj Tyagi , Chairman Ms. Rachna Sharma Chairman of the Board and Whole-Time Director Mr. Safir Anand, Member Auditors (2014-15) Mr. Gautam Puri Mr. Gopal Jain, Member Haribhakti & Company, Vice-Chairman & Managing Director Mr. Kamil Hasan, Member Chartered Accountant, LLP Mr. Nikhil Mahajan Whole Time Director and Mr. Gautam Puri, Permanent Bankers Chief Financial Officer Invitee HDFC Bank Ltd. Mr. Sridar Iyengar CSR Committee ABN AMRO Bank Non-Executive Independent Director Mr. Safir Anand, Chairman ICICI Bank Mr. Safir Anand Mr. Satya Narayanan .R, Member Non-Executive Independent Director Standard Chartered Bank Mr. Gautam Puri , Member Mr. Gopal Jain Kotak Mahindra Bank Non-Executive(Nominee) Director IPO Committee Corporation Bank Mr. Viraj Tyagi Mr. Satya Narayanan .R, Chairman Non-Executive Independent Director Axis Bank Mr. Sridar Iyengar, Member Mr. Kamil Hasan Citibank Mr. Nikhil Mahajan, Member Non-Executive Independent Director State Bank of India Mr. Gopal Jain, Member Ms. Sangeeta Modi IDBI Non-Executive Independent Director Mr. V. Srinivasa Rangan, Permanent Invitee Registered & Corporate Office Board Committees A-41, Espire Building, Stakeholders Relationship Audit Committee Committee Lower Ground Floor, Mr. Sridar Iyengar, Chairman Mr. Safir Anand, Chairman Mohan Co-operative Industrial Area, Mr. Gopal Jain, Member Mr. Gautam Puri, Member Main Mathura Road, Mr. Kamil Hasan, Member Mr. Nikhil Mahajan, Member New Delhi – 110 044, India Mr. Viraj Tyagi, Member Risk Management Committee Tel: +91 011 4128 1100, Fax: 4128 1101 Mr. Satya Narayanan .R, Chairman Email: [email protected] Mr. Nikhil Mahajan, Permanent Invitee Mr. Gautam Puri, Member Website: www.cleducate.com 6 CL Educate Annual Report 2014-15 Directors’ Report 2015 To the Members, Prior Period expen 1.9 Tax Expense/ (Benefit) 60.22 24.49 We have the pleasure of presenting the th Annual 19 Profit after tax 209.85 148.00 Report of our Company together with the Audited Accounts for the year ended March 31st, 2015. Profits brought forward from previous 453.87 385.58 year 1. Results of our Operations Cumulative Surplus carried to Balance 70.95 453.87 1a. CL Educate Standalone sheet (Figures in ` Mn) FY 2015 FY 2014 2. Financial Highlights Total Income 1,549.59 1,236.14 2a. CL Educate Standalone Total Expenditure 1,460.60 1,192.93 Profit before tax 88.99 43.21 ` 1496.37 Mn Exceptional Our Operating Income increased to - 15.49 from ` 1,183.11 Mn in the previous year, at a growth Expenses rate of 26.48%. While our Test Preparation revenues Prior Period - 0.48 increased to `1,183.24 Mn reflecting a growth rate of Expenses/ (Income) about 15.98% over the previous year 2014, the Tax Expenses 23.23 9.75 vocational business revenue grew by over 92.25% to Profit after tax 65.76 17.49 reach ` 313.13 Mn. Profits brought forward from 298.42 280.93 Our Total Income was at ` 1549.59 Mn as against ` previous year 1236.14 Mn in the previous year.