Tree House Education & Accessories Ltd Management Discussions.
OVERVIEW OF OPERATIONS OF OUR COMPANY:
The Company position is going through challenging times because of the circumstances happened during the year.
Due change in business strategies and to have better control over finance of the company the management of the Company had converted its play schools centers which were owned by the company to franchise model where in the company will get Royalty income and also income from sale of kits. Thus the company will without sacrificing on its revenue, will be absolved from liabilities and finance requirements.
Out of the total 542 centers operated by the company till March 31,2016, the company has converted 140 centers into franchise centers and had closed 222 centers as on March 31,2017. The company is in the process of converting/closing the remaining centers. The centers across India operating under the brand names of "Tree House", "Brain Works" and "Global Champs". Our pre-schools serve students in the age group of 1.5 to 6 years.
In our pre-schools, we offer standardized services and teaching methodologies. We offer playgroup, nursery, junior kindergarten and senior kindergarten courses. We also offer vacation camps, hobby classes, day care facilities and teacher training course at some of our seif-operated pre-schools. We provide continuous training to all our pre-school teachers on teaching methodologies and early child care, to keep abreast with the changes in teaching methods and student needs. Our pre-school network is largely concentrated in the states of Maharashtra, Gujarat, Karnataka, Rajasthan, West Bengal and And ra Pradesh.
We also provide a wide variety of educational services to K-12 schools which include, designing curriculum and providing teaching aids, supplying methods for imparting education, organization extra-curricular activities for students and teacher training. As on March 31,2017, we have provided educational services to 15 K-12 schools, across 3 states in India. Further, Company was not able to provide management services to K-12 schools for the last two quarters due to inadequate man power. The Company is in process of restarting the same and to realign the situation and start the services.
The Brand is owned by the Company and shall earn Royalty income for the company.
Due to conversion of own centres into franchisee and increased focus on developing new franchise the Company will soon become profitable.
- Our Company has been awarded as Best PE/VC-backed Education Company for the year 2013 by VC Circle Awards and our brand Tree House as acknowledged as Indias most trusted brand in the pre-school category in TRAs (formerly Trust Research Advisory) report titled Indias Most Trusted Educational institutes-2014.
FINANCIAL HIGHLIGHTS FOR 2016-17:
During the year your Company has gone through a drastic change in the financial condition and the same was due to many factors. During the year, to overcome with the financial condition your
Company has changed its business structure form operating owned centres into franchise operated centres.