FOCUS ON REAL INDIA
Operating in an industry that has the power to change the very lives of people, EdServ is poised as a noticeably upcoming player in this technology driven learning. It takes in the vast industry of education in India and firmly places its focus on empowering the Real India with its cutting-edge designed products and learning aids.
HIGHER EDUCATION OF REAL INDIA
With more than 500 universities and deemed universities, over 15,000 colleges and hundreds of national and regional research institutes and with the Indian higher education and research sector being the third largest in the world in terms of the number of students it caters to, higher education in India is yet to attract the recognition it should rightfully deserve. This is more so at a time when India is aiming to be an important player in the emerging knowledge economy.
Its true that there is no company or institute in the world that has not benefited by Indian graduates, post-graduates or Ph.D.s- be it NASA, IBM, Microsoft, Apple, Intel, Bell, Sun, Harvard, MIT, Caltech, Cambridge or Oxford, and not all those students are products of our IITs, IIMs, IISc/TIFR or central universities, which cater to barely one per cent of the Indian student population. This goes to suggest that Indian higher educational institutions have not been able to achieve the same status for themselves as their students seem to achieve elsewhere with their education from here these very institutions. This is exactly where Edserv believes it should step in to remedy the situation by helping the students slake their thirst for knowledge right here in India and thus stanch the brain drain that denies these campuses of its brilliant research minds.
EdServ offers career solutions from a virtual online placement campus-EdCampus, by extending a value driven consultancy services to its job seeking candidates and employee searching clients. It endeavors to provide highly promising career avenues by focusing on specific employment opportunities in high growth areas while at the same time competent staffing solutions for the employer. With quality being the key element of its commitment to deliver value for its candidates and customers, today its blazing its trail by housing more than two lakh live jobs that cuts across a plethora of verticals including retail, BFSI, telecom, manufacturing, BPO & IT.
KNOWLEDGE SHARING ON THE MOVE
Sharing knowledge is not about giving people something, or getting something from them. That is only valid for information sharing. Sharing knowledge occurs when people are genuinely interested in helping one another develop new capacities for action. It is about creating learning processes. In fact, the only irreplaceable capital an organization possesses is the knowledge and ability of its people. The productivity of that capital depends on how effectively people share their competence with those who can use it.
Humthum.com is a first of its kind knowledge sharing product developed for the Indian market by EdServ in association with Samsung. By foraying into the mobile application space with its wide range of educational contents, it has taken on the whole gamut of tuition, academics, skill development & test prep services. Launched in June 2011,humthum.com -a unique mobile based knowledge sharing apps made available across all Samsung smart phones through their Java Apps Stores in India, literally symbolizes the idea that knowledge is power and therefore, controls all access to opportunities and advancement. Not surprisingly, this apps will provide area wise services covering over 20,000 pin codes pan India. It will enable students to instantly access its educational services even when they are on the move, anytime anywhere. Just the pilot phase of the roll out got more than 50,000 students enrolled, who have already started accessing humthum mobile apps in a big way. EdServ is targeting a user base of ten million in the next 18-24 months and revenues of Rs. 200 crores over the next 3 years. By foraying into the mobile application space with its wide range of educational contents, it has taken on the whole gamut of tuition, academics, skill development & test prep services.
Launched in June 2011, humthum.com - a unique mobile based knowledge sharing apps made available across all Samsung smart phones through their Java Apps Stores in India, literally symbolizes the idea that knowledge is power and therefore, controls all access to opportunities and advancement. Not surprisingly, this apps will provide area wise services covering over 20,000 pin codes pan India. It will enable students to instantly access its educational services even when they are on the move, anytime anywhere. Just the pilot phase of the roll out got more than 50,000 students enrolled, who have already started accessing humthum mobile apps in a big way. EdServ is targeting a user base of ten million in the next 18-24 months and revenues of Rs. 200 crores over the next 3 years.
The company has acquired the businesses and contents of a UAE based firm as an on-going entity out of GDR proceeds. This is part of its strategy to expand its business providing on-line learning and career solutions through mobile and tablet platforms. With this purchase and acquisition, the company is confident of penetrating deeper markets in Asia and Middle East, which would help the company to develop more greatly.
PARTNERS IN PROGRESS
Partners are essential for the development of an organization. needed someone who was not afraid to force issues, confront us, and, if necessary, drive us where we needed to go.
At EdServ, we just decided to grow them as our partners in progress organically instead of buying them and drive us where we needed to go. Giants in their own game who will help accurately assess situations and help address critical issues. So that we maximize the benefit of the various education services that we offer our customers. With this view in mind, we took the strategic decision to tie up with Corel Corporation, Sreeram Coaching Point, Samsung & Blackberry to help EdServ achieve the magnitude of change that we needed.
Corel e-Training Partnership
In a significant initiative for training through e-learning, EdServ has struck a global e-training partnership in August 2010 with Ottawa, Canada headquartered COREL Corporation. By this strategic tie up, EdServ has become the first and only authorized online training partner of Corel with rights to train and certify students on the Corel technology, graphic design, and desktop publishing space. EdServ will develop exclusive e-content for various tools of COREL which will be marketed worldwide as the authorized e-content for becoming a certified COREL professional.
Sreeram Coaching Point, Partners In CA Coaching
In January 2011, EdServ has struck an eLearning partnership with Chennai based Sreeram Coaching Point, a CA training institute established in 1989. This partnership will enable EdServ to provide online CA coaching for students through its education portal www.lampsglow.com. This marks EdServs foray into the estimated Rs. 2000 crore chartered accountancy training market in India and this association is expected to provide online access to expert classroom videos and assessments modules to an estimated one million students aspiring annually to clear CA-CPT, inter, and final exams.
Samsung humthum Mobile Educational Apps
In a first of its kind product developed for the Indian market, EdServ has forayed into the mobile application space with its wide range of educational contents- the whole gamut of tuition, academics, skill development & test prep services. In June 2011, EdServ has launched humthum.com a unique mobile based knowledge apps made available across all Samsung smart phones through their Java Apps Stores in India. Just the pilot phase of the roll out got more than 50,000 students enrolled and EdServ is targeting a user base of ten million in the next 18-24 months and revenues of Rs. 200 crores over the next 3years.
Aircel Mobile Apps and EDI launches
EdServ has successfully launched its Mobile Apps in AIRCEL appstore. It is a landmark opportunity for your company to have entered into Indian mobils apps space. Further, the company also entered into Brick and Mortar training center model with EDI.
Akaash Tablet Sign-up
The company has signed up with Akaash tablets, a prestigeous sign-up for the company in terms of a leading tablet collaboration. By this arrangement, every Akaash tablet will house our apps in their store.
The company is investment smart and information smart at the same time by exploiting content-on-lease model as a key risk management option. With its modest start up costs, assured fresh content, high leverage and containment of corporate resources, it was decided that this is the way to go. The Risk Management Committee shall provide assistance to the Board of Directors in fulfilling its responsibility to the shareholders, potential shareholders and investment community by assessing, and providing oversight to management relating to the identification and evaluation of not only content leasing but also all major strategic, operational, regulatory, information and external risks inherent in the business of the company.
The Vigilant Watch Dog-Internal Control Systems
By having in place an adequate internal control system, that is commensurable with the size and nature of its business. The system is supported by documented policies, guidelines, procedures to monitor business and operational performance aimed at ensuring not only business integrity but also promoting operational efficiency. Regular review of the reports of the internal auditors by the Audit Committee Meetings. The Audit Committee of the Board reviews the adequacy and effectiveness of the internal control systems and suggests improvements for strengthening them on an on going basis.
Chairman & Managing Director
Place : Chennai
Date : 26.11.2012
Discussion on financial performance with respect to operational performance
A summary of our financial position as on 31st March 2012 and 2011 are as follows:
(Rs.) in Lakhs
|I. EQUITY AND LIABILITIES|
|1) Shareholders Funds|
|a) Share Capital||2,623.30||17.60||1,557.72||10.45|
|b) Reserves and Surplus||23,239.88||155.92||10,458.83||70.17|
|c) Money received against share warrants||
|2) Non-Current Liabilities|
|a) Long-term borrowings||1291.018||8.66||255.44||1.71|
|b) Long term provisions||1293.17||8.68||417.06||2.8|
|3) Current Liabilities|
|a) Trade payables||474.14||3.18||756.12||5.07|
|b) Other current liabilities||34.46||0.23||0.60||0|
|c) Short-term provisions||
|1) Non-current assets|
|a) Fixed assets|
|i) Tangible assets||1771.67||4.05||1260.42||6.68|
|ii) Intangible assets||10520.73||24.06||837.97||4.44|
|iii) Intangible Assets under Development||275.42||0.63||1753.46||9.29|
|b) Non current investments||9.50||0.02||9.50||0.05|
|c) Long term loans and advances||308.91||0.71||43.87||0.23|
|2) Current assets|
|a) Trade receivables||2920.65||6.68||7137.44||37.84|
|b) Cash and cash equivalents||12626.13||28.87||2695.51||14.29|
|c) Short-term loans and advances||2005.32||4.59||556.39||2.95|
|d) Other current assets||644.23||1.47||610.54||3.24|
Sources of Funds
1. Share Capital
At present we have only one class of shares Equity Shares of Rs. 10/- each fully paid up.
Our Authorised Capital is Rs. 4000 Lakhs divided into 400 Lakh Equity Shares of Rs. 10/- each. The issued, subscribed and paid up capital as on 31st March 2012 Rs. 2623.30 and as on 31st March 2011 is Rs. 1557.72 Lakhs.
2. Reserves & Surplus
|As at 31 March, 2012||As at 31 March, 2011|
|Reserves and Surplus|
|Security premium reserve|
|Add: Addition / (reduction)||13366.95||-||6573.52||-|
|Add: transfer from profit & loss account||-||-||-||-|
|Surplus from Profit & Loss account|
|Add: Current year surplus||-585.90||-||222.55||-|
|Less: Transfer to general reserve||-||-||-||-|
|Less: Proposed dividend||-||-||-||-|
|Less: Dividend tax provision||-||-||-||-|
3. Fixed Assets
Statement of movement of Fixed Assets are as follows:
(Rs.) in Lakhs
|Computer Software & IP Rights||10,841.75||926.14||1070.64|
|Plant & Machinery||11.88||10.03||18.44|
|Furniture & Fixtures||
|Less: Accumulated Depreciation||901.77||393.04||129.43|
|Add: Capital Work in Progress||275.42||1753.46||-84.29|
|Net Fixed Assets||12567.8||3851.85||226.28|
There is no change in the investment during the year.
5. Sundry Debtors
Sundry Debtors amount to Rs. 2920.65 lakhs as on 31st March 2012 and Rs. 9052.44 lakhs as on 31st March 2011.
|Debts outstanding for a period exceeding 6 months||-||3463.95|
6. Cash & Bank Balance
The summary of the cash and bank balance are as follows
(Rs.) in Lakhs
|Cash and cash equivalents|
|Balance with banks in current account||31.00||2228.36|
|Cash in hand||0.60||-|
|Other Bank Balances:|
|in Deposit account (having maturity period more than 12 months) in foreign account||12,149.10|
|in Fixed deposit & Margin money||436.68||409.17|
7. Long Term Provisions
The details of the Long Term Provisions are as follows
(Rs.) in Lakhs
|Provision for Deferred Tax||1262.27||403.29|
|Others - Gratuity Mgmt||30.90||13.77|
8. Trade Payables
(Rs.) in Lakhs
9 Short Term Provisions
(Rs.) in Lakhs
|Provisions for employee benefits||37.43||97.57|
|Others (Professional Tax)||1.08||1.49|
|Provision for income tax||299.27||228.47|
|Provision for Sales tax||-||-|
|Provision for PF||6.83||2.05|
|Provision for ESIC||0.64||0.79|
|TDS Collection & remittance||47.61||20.77|
|Others (Service Tax)||245.72||233.08|
Results of Operations
The following are the summary of financial operations.
|Reimbursement of Vocational Training||2,000.00||19.43||4,152.73||38.53||-51.84|
|Student Registration Fee||1,030.18||-||24.83||-||-|
|Brand License Access Fee||-||-||1,171.35||10.87||-100|
|Purchase of software||-||-||5157.33||47.85||-100|
|Employee benefit expense||590.11||5.73||467.07||4.33||26.36|
|Selling, Adminstration & other expenses||3278.08||31.84||2425.55||22.51||35.12|
|Depreciation and amortization expense||508.72||4.94||180.01||1.75||182.61|
|V. Profit before exceptional and extraordinary items and tax||343.88||3.34||557.25||5.41||-38.30|
|VI. Extraordinary Items (prior period expenses)||-||-||-||-||-|
|VII. Profit before tax||343.88||3.34||557.25||5.41||-38.3|
|VIII. Tax expense:|
|1) Current tax||70.80||0.69||133.34||1.30||-46.90|
|2) Deferred tax||858.98||8.34||201.36||1.96||326.59|
|IX. Profit(Loss) from the period from continuing operations||-585.90||-||222.55||-||-|
The Company has only one segment of business.
|Reimbursement of Vocational Training||2,000.00||4,152.73|
|Student Registration Fee||1,030.18||24.83|
|Brand License Access Fee||-||1,171.35|
a. The company has incurred the following administrative expenses
|Electricity & Maintenance||11.71||10.40|
|Printing and Stationeries||18.61||10.59|
|Repairs and Maintenance-Building||38.66||3.80|
|Repair and Maintenance -Others||3.07||35.60|
|Telephone and Fax Charges||34.36||47.35|
|Commission to Executive Directors||-||80.00|
|Commission to Non Executive Directors||-||21.53|
|Postage Telegram & Couriers||3.42||5.48|
|Travelling and Conveyance||64.29||42.02|
|Other Administration & Miscellaneous charges||
|Vehicle Finance Charges||1.19||2.04|
|For Statutory Audit||10.00||4.00|
|For Tax Audit||5.00||1.00|
|For other services||21.00||15.00|
|Internal Audit Fees||1.50||3.00|
|Consultancy & Legal Charges||48.26||68.80|