Mar 31, 2016
1. Segment information
The activities of the Company comprise of only one business segment i.e." providing education and related services including leasing of education infrastructure". The company operates in only one.
2. Related party disclosure
Information on related party transactions as required by Accounting Standard (AS -18) on Related Party Disclosures for the year ended 31st March, 2016.
3. List of related party
I Key management personnel (KMP)
Key management personnel (''KMP'') . Mr.Rajesh Bhatia - Managing Director . Mr.Vishal Shah - Director
4. Relatives of key management personnel
Relatives of KMP Mrs. Geeta Bhatia - wife of Mr.Rajesh Bhatia
5. Joint Venture company
JT Infrastructure Private Limited
Mehta Tree house Infrastructure Private Limited
6. Entity over which there is a significant control
Tree House Foundation
7. Transactions undertaken / balances outstanding with related parties in the ordinary course of business
Transactions during the year
8. Leases
Pursuant to Accounting Standard (AS-19) - Leases, the following information is given In case of assets taken on operating lease
The lease rent, amenities charges and Society maintenances recognized in the Statement of Profit and Loss during the year ended March 31, 2016 is Rs.37,12,15,398/-(previous year: Rs 31,50,76,702/-)
Significant leasing arrangements
9. The period of lease for the premises varies by location and ranges from 3 to 5 years.
10. Renewal of the lease at the end of the initial term is at mutual consent of both parties.
11. The Company has entered into lease conducting agreements with certain parties where the lease rentals are based on the revenue earned at the respective centers. The expected future lease payments cannot be estimated in respect of these lease conducting agreements and hence future liability in respect of the same have not been disclosed.
In case of assets given on operating lease
The lease rent income recognized in the Statement of Profit and Loss during the year ended March 31, 2016 is Rs.1,84,93,808/- (previous year: Rs 2,76,30,488/-)
Significant leasing arrangements
12. The period of lease forthepremisesis19 years 11 month
13. The lease rent shall stand revised by addition of an amount equivalent to 15% at the end of every third year.
14. After the expert of the said initial term of 19 years 11 months, the lessee has a sole option to renew the lease term.
Mar 31, 2015
1 GENERAL INFORMATION
Tree house Education & Accessories Limited (the 'Company') was
incorporated on July 10, 2006 under the Indian Companies Act, 1956 (the
'Act'). The Company is engaged in providing education and related
services including leasing of education infrastructure.
The previous year's figures have been regrouped / reclassified, where
ever necessary to confirm to the current year's presentation.
2 Terms / rights attached to equity shares
a The Company has only one class of shares referred to as equity shares
having par value of Rs. 10. Each holder of equity share is entitled to
one vote per share. In the event of liquidation of the company, the
holders of equity shares will be entitled to receive remaining assets
of the company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held
by the shareholders.
b The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuring Annual General Meeting,
except in case of interim dividend.
c The Company declares and pays dividends in Indian Rupees even to
shareholders outside India.
3 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE Rs.
EXTENT NOT PROVIDED FOR)
Particulars As at As at
March 31, 2015 March 31, 2014
Commitments
Estimated amount of unexecuted 246,053,126 213,553,126
contracts
Bank guarantee given in favour 572,000 572,000
of Joint Commissioner, Sales
Tax circle/charge centralsection,
West Bengal.
TOTAL 246,625,126 214,125,126
4 SEGMENT INFORMATION
The activities of the Company comprise of only one business segment i.e
"providing education and related services including leasing of
education infrastructure". The Company operates in only one
5 RELATED PARTY DISCLOSURE
Information on related party transactions as required by Accounting
Standard (AS - 18) on Related Party Disclosures for the year ended 31st
March, 2015.
6 List of related party
i. Key management personnel (KMP)
Key management personnel ('KMP')
Mr. Rajesh Bhatia - Managing Director
Mr. Vishal Shah - Director
ii. Relatives of key management personnel
Relatives of KMP Mrs. Geeta Bhatia - wife of Mr.Rajesh Bhatia
iii. Joint Venture company
JT Infrastructure Private Limited
Mehta Treehouse Infrastructure Private Limited
iv. Entity over which there is a significant control Tree House
Foundation
7 LEASES
Pursuant to Accounting Standard (AS-19) - Leases, the following
information is given
The period of lease for the premises varies by location and ranges
from 3 to 5 years.
Renewal of the lease at the end of the initial term is at mutual
consent of both parties.
The Company has entered into lease conducting agreements with
certain parties where the lease rentals are based on the revenue earned
at the respective centers. The expected future lease payments cannot be
estimated in respect of these lease conducting agreements and hence
future liability in respect of the same have not been disclosed.
8 Significant leasing arrangements
a) The period of lease for the premises is 30 (Thirty) years.
b) The lease rent shall stand revised by addition of an amount
equivalent to 15% at the end of every third year.
c) After the expiry of the said initial term of 30 years, the lessee
has a sole option to renew the lease term for further period of 30
years
9 Notes related to ESOP plan 2010:
1. The Compensation Committee has granted on 04th January, 2011 a total
of 1,400,000 options convertible into 1,400,000 Equity Shares which
represents 3.89% of the paid up share capital of the Company. The fair
market value Rs. 71/- on the date of grant is also the exercise price
of the Option.
2. There is one employee who has been granted options equal to or
exceeding 1% of the Issued Capital.
3. The Company accounts for 'Employee Share Based Payments' using the
intrinsic value method.
4. The aggregate outstanding balance of the interest free loan given to
Treehouse Employee Welfare Trust is Rs.13,75,265 (previous year Rs.
49,79,250) which has been grouped under Loans and Advances.
10 Notes related to ESOP plan 2012:
1. The Compensation Committee has granted on 06th September, 2012 a
total of 4,00,000 options convertible into 4,00,000 Equity Shares which
represents 1.11% of the paid up share capital of the Company. The fair
market value of Rs 228/- on the date of grant is also the exercise
price of the Option.
2. There is no employee who has been granted options equal to or
exceeding 1% of the Issued Capital.
3. The Company accounts for 'Employee Share Based Payments' using the
intrinsic value method.
4. The aggregate outstanding balance of the interest free loan given to
Treehouse Employee Welfare Trust aggregating
Rs. 5,82,00,860 (previous year Rs. 8,09,68,500) which has been grouped
under Loans and Advances.
Mar 31, 2014
1.1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
FOR)
Partculars As at Mar31 2014 As at Mar31 2013
Commitments Estimated amount of 213,553,126 401,400,277
unexecuted contract
Total 215,555,126 401,400,277
-''Consultancy income during the financial year 2013-2014 includes a
sum of Rs. 18,31,75,000 towards Curriculum, Content and Development
Services provided to various educational institutions. Of the said
revenue a sum of Rs. 8,02,00,000 will be received in instalments over a
period of 3 financial years from 2014-2015 to 2016-2017.
2.1 KINDERGARTEN AND PLAYSCHOOL BUSINESS FROM BRAINWORKS LEARNING
SYSTEM PRIVATE LIMITED
The Company has acquired kindergarten and playschool business from
Brainworks Learning System Private Limited with effect from 19th June,
2013 for a lump sum consideration ofRs. 5,10,00,000 (which includesRs.
10,00,000 being incidental expenses related to acquisition). The net
asset acquired as a part of this acquisition was valued at Rs.
4,68,80,000. The bal- ance of the excess consideration paid over assets
acquired amounting to Rs. 41,20,000 has been treated as goodwill.
2.2 SEGMENT INFORMATION
The activities of the Company comprise of only one business segment i.e
"providing education and related services in- cluding leasing of
education infrastructure". The Company operates in only one
geographical segment i.e. India. Hence, the Company''s financial
statements are reflective of the information required by Accounting
Standard 17, "Segment Report- ing" notified under the Companies Act,
1956.
2.3 RELATED PARTY DISCLOSURE
In accordance with the requirements of Accounting Standard 18, "Related
Party Disclosures" notified under the Companies Act, 1956, the related
party disclosures are given below:
a) List of related party
i Key management personnel (KMP)
Key management personnel (''KMP'') -
Mr.Rajesh Bhatia - Managing Director
Mr.VishalShah - Director
ii Relatives of key management personnel
Relatives of KMP
Mrs. Geeta Bhatia - wife of Mr.Rajesh Bhatia
iii Joint Venture company
JT Infrastructure Private Limited
2.4 LEASES
In case of assets taken on Lease
The Lease rent and amenities charges recognized in the Statement of
Profit and Loss during the year ended March 31, 2014 is Rs. 257,663,064
(previous year: Rs. 203,651,482)
Significant leasing arrangements
1.1 The period of Lease for the premises varies by Location and ranges
from 3 to 5 years.
1.2 RenewaL of the Lease at the end of the initiaLterm is at mutuaL
consent of both parties.
1.3 The Company has entered into Lease conducting agreements with
certain parties where the Lease rentaLs are based on the revenue earned
at the respective centers. The expected future Lease payments cannot be
estimated in respect of these Lease conducting agreements and hence
future Liability in respect of the same have not been discLosed.
In case of assets given on lease
The Lease rent income recognized in the Statement of Profit and Loss
during the year ended March 31, 2014 is Rs. 306,76,046 (previous year: Rs.
12,182,240)
2.36.8 Notes related to ESOP plan 2010:
1. The Compensation Committee has granted on 04th January, 2011 a
total of 1,400,000 options convertible into 1,400,000 Equity Shares
which represents 3.89% of the paid up share capital of the Company. The
fair market value ofRs. 71/-on the date of grant is also the exercise
price of the Option.
2. There is one employee who has been granted options equal to or
exceeding 1% of the Issued Capital.
3. The Company accounts for ''Employee Share Based Payments'' using the
intrinsic value method.
4. The Company has given an interest free loan to Treehouse Employee
Welfare Trust aggregating Rs. 49,79,250 (previous year Rs. 21,836,250)
which has been grouped under Loans and Advances.
Notes related to ESOP plan 2012:
1. The Compensation Committee has granted on 06th September, 2012 a
total of 4,00,000 options convertible into 4,00,000 Equity Shares which
represents 1.11% of the paid up share capital of the Company. The fair
market value of Rs. 228/- on the date of grant is also the exercise price
of the Option.
2. There is no employee who has been granted options equal to or
exceeding 1% of the Issued Capital.
3. The Company accounts for ''Employee Share Based Payments'' using the
intrinsic value method.
4. The Company has given an interest free loan to Treehouse Employee
Welfare Trust aggregating Rs. 8,09,68,500 (previous year Rs. 9,12,00,000)
which has been grouped under Loans and Advances.
Mar 31, 2013
GENERAL INFORMATION
Treehouse Education & Accessories Limited (the ''Company'') was
incorporated on July 10, 2006 under the Indian Companies Act, 1956 (the
''Act''). The Company is engaged in providing education and related
services including leasing of education infrastructure.
Rs.
As at As at
Particulars March 31, 2013 March 31, 2012
1.1 CONTINGENT LIABILITIES AND COMMITMENTS
(to the extent not provided for)
Commitments
Estimated amount of unexecuted contracts 401,400,277 566,803,591
Total 401,400,277 566,803,591
1.2 SEGMENT INFORMATION
The activities of the Company comprise of only one business segment i.e
"providing education and related services including leasing of
education infrastructure". The Company operates in only one
geographical segment i.e. India. Hence, the Company''s financial
statements are reflective of the information required by Accounting
Standard 17, "Segment Reporting" notified under the Companies Act,
1956.
1.3 RELATED PARTY DISCLOSURES
In accordance with the requirements of Accounting Standard 18, "Related
Party Disclosures" notified under the Companies Act, 1956, the
related party disclosures are given below:
a) List of related parties
i Key management personnel (KMP)
Key management personnel (''KMP'') - Mr. Rajesh Bhatia - Managing
Director
- Mr. Vishal Shah - Director
ii. Relatives of key management personnel
Relatives of KMP Mrs. Geeta Bhatia - wife of Mr. Rajesh Bhatia
iii. Joint venture company
JT Infrastructure Private Limited
1.4 LEASES
In case of assets taken on lease
The lease rent and amenities charges recognised in the Statement of
Profit and Loss during the year ended March 31, 2013 is Rs. 203,651,482
(previous year: Rs. 111,388,507)
1.5 EMPLOYEE STOCK OPTION PLANS
For the financial year March 31, 2013 following schemes were in
operation:
1) Treehouse Education Employees'' Stock Option Plan, 2010 - ESOP A
2) Treehouse Education Employees'' Stock Option Plan, 2012 - ESOP B
Mar 31, 2012
General Information
Treehouse Education & Accessories Limited (the 'Company') was
incorporated on July 10, 2006 under the Indian Companies Act, 1956 (the
'Act'). The Company is engaged in providing education and related
services including leasing of education infrastructure.
The previous year's figures have been regrouped / reclassified, where
ever necessary to conform to the current year's presentation.
Amounts in the notes are presented in Indian Rupees (INR), except
otherwise stated.
During the year, the Company has issued and allotted the shares as
detailed below:
- 280,000 equity shares of Rs. 10 each for cash consideration at a
premium of Rs. 140 per share to Matrix Partners India Investment
Holdings, LLC.
- 93,333 equity shares of Rs. 10 each for cash consideration at a premium
of Rs. 140 per share to FC VI India Venture Mauritius Limited.
- 890,821 equity shares of Rs. 10 each for cash consideration at a
premium of Rs. 140 per share to On Mauritius.
- 8,432,189 equity shares of Rs. 10 each for cash consideration at a
premium of Rs. 125 per share (with discount of Rs. 6 per share to retail
investors) during the initial public offering.
The following table sets out the status of the gratuity plan for the
year ended March 31, 2012 in accordance with Accounting Standard 15,
Employee Benefits (Revised), as notified under the Companies Act, 1956.
The Company has initiated the process of obtaining confirmation from
suppliers who have registered under the Micro, Small and Medium
Enterprises Devel- opment Act, 2006. Based on the information available
with the Company, there is no amount outstanding as on March 31, 2012
to MSME's. There are no overdue principal amounts and therefore no
interest is paid or payable.
The Company has entered into an exclusive facilitation service
agreement with various educational trusts in accordance with which the
Company has exclusive rights for a period of 30 years to provide
various facilitation services for schools/courses to be set up by these
educational trusts. The Com- pany has paid one time fixed fee to the
educational trusts towards such exclusive rights. The fee paid is
recognised as an intangible asset and accordingly capitalised as
'Business Commercial Rights' in the financial statements.
During the current year, the terms of payment for these Business
Commercial Rights have been modified with the 'one time fixed fee'
being replaced with combination of 'one time fixed fee' and 'partial
interest bearing refundable deposits'. These deposits attract interest
once a particular threshold on number of students as mentioned in the
respective school management agreements is achieved. The interest is
levied @ BPLR 2%. The deposits are repayable to the Company at the end
of 5 years.
Consequently, such 'refundable deposits' amounting to Rs. 262,735,475,
paid towards Business Commercial Rights and disclosed as 'Capital
work-in-progress' as at March 31, 2011 have been reclassified as
'Refundable Security Deposits' and disclosed in Note 2.13, Long term
loans and advances.
The Company has entered into a joint venture agreement with Jayshree
Builders ('JB') to construct and rent a school building. As part of the
arrangement, the Company and JB have agreed to equally contribute to
share capital of JT Infrastructure Private Limited, a company in which
both Treehouse Education & Accessories Limited and JB have equal share
holding.
The Company has a 50% interest in the assets, liabilities, expenses and
income of JT Infrastructure Private Limited, a company incorporated in
India. The operations have not yet commenced and Company's share of the
assets and liabilities of the jointly controlled entity as per the
audited Balance Sheet of March 31, 2012 are:
Notes:
- Fixed deposits of Rs 409,030,556 (previous year Rs 270,000,001) placed
with a bank against working capital loan obtained from them.
- Fixed deposits of Rs 7,223,332 (previous year Rs Nil) placed with a
bank against which the bank has given a guarantee.
Contingent Liabilities and Commitments (to the extent not provided for)
As at As at
Particulars March 31, 2012 March 31, 2011
Contingent liabilities
Guarantee given for loan taken
by director - 11,445,000
Commitments
Estimated amount of unexecuted
contracts 566,803,591 227,366,679
Total 566,803,591 238,811,679
1.1 Segment Information
The activities of the Company comprise of only one business segment i.e
"providing education and related services including leasing of
education infrastructure". The Company operates in only one
geographical segment i.e. India. Hence, the Company's financial
statements are reflective of the information required by Accounting
Standard 17, "Segment Reporting" notified under the Companies Act,
1956.
*- The value of fixed asset purchased from Mr. Rajesh Bhatia during the
year amounts to Rs. 134,500,000, against which advance of Rs. 39,600,000
was paid during the previous year.
1.2 Leases
In case of assets taken on lease
The lease rent and amenities charges recognised in the Statement of
Profit and Loss during the year ended March 31, 2012 is Rs. 111,388,507
(previous year: Rs. 52,158,020)
Significant leasing arrangements:
1.1. The period of lease for the premises varies by location and
ranges from 3 to 5 years.
1.2. Renewal of the lease at the end of the initial term is at mutual
consent of both parties.
1.3. The Company has entered into lease conducting agreements with
certain parties where the lease rentals are based on the revenue earned
at the respective centers. The expected future lease payments cannot be
estimated in respect of these lease conducting agreements and hence
future liability in respect of the same have not been disclosed.
In case of assets given on lease
The lease rent income recognised in the Statement of Profit and Loss
during the year ended March 31, 2012 is Rs. 12,182,240 (previous year: Rs.
12,182,244)
Significant leasing arrangements:
1.1. The period of lease for the premises is 30 (Thirty) years.
1.2 The lease rent shall stand revised by addition of an amount
equivalent to 15% at the end of every third year.
1.3 After the expiry of the said initial term of 30 years, the lessee
has a sole option to renew the lease term for further period of 30
years.
* Other Services for the year ended March 31, 2011 relates to assurance
services for Initial Public Offering (IPO) and hence has been adjusted
against Securities Premium Account as part of share issue expenses.
1.3 Employee Stock Option Plans
The Company has implemented Employee Stock Option Plan for the key
employees of the Company through the Treehouse Employees Welfare Trust
(the 'Trust') formed for the purpose. All the options issued by the
Company are equity share based options which have to be settled in
equity shares only. The shares to be allotted to employees under the
Treehouse Education Employees' Stock Option Plan, 2010 are issued to
the Trust by the Company. Based on the information provided by the
Trust, the details of the Treehouse Education Employees' Stock Option
Plan, 2010 of the Company as at March 31, 2012 are as under:
Notes
a. The Compensation Committee has granted a total of 1,400,000 options
convertible into 1,400,000 Equity Shares which represents 4.15% of the
paid up share capital of the Company. The fair market value on the date
of grant, Rs. 71, is also the exercise price of the Option.
b. There is one employee who has been granted options equal to or
exceeding 1% of the Issued Capital.
c. The Diluted Earnings Per Share and Basic Earnings Per Share are the
same, as the shares covered under options are already issued and
allotted and are held by the Trust.
d. In the event of any further rights or bonus issue of equity shares
after vesting but prior to exercise of the options, the Company / Trust
shall consider the grant of an appropriate number of additional
options, at such price as may be determined by the Compensation
Committee.
e. The Company accounts for 'Employee Share Based Payments' using the
fair value method.
f. The Company has given an interest free loan to Treehouse Employee
Welfare Trust aggregating Rs. 99,410,000 (previous year Rs. 99,410,000)
which has been grouped under Loans and Advances.
1.4 Initial Public Offer (IPO) of the Equity Shares of the Company
During the year, the Company has successfully made an IPO of 8,432,189
equity shares of Rs. 10 each constituting 25.01% of the post issue share
capital of the Company at a price of Rs.135 per share including a premium
of Rs.125 per share with a retail discount of Rs. 6 per equity share. The
issue was opened for subscription to the public on August 10, 2011 and
closed on August 12, 2011. The trading in the fully paid up shares of
the Company commenced on August 26, 2011 at National Stock Exchange of
India Ltd and Bombay Stock Exchange Ltd.
The members of the Company have on February 02, 2012 approved by way of
postal ballot an amendment in the utilisation of IPO proceeds.
Mar 31, 2011
1. Background
Tree House Education & Accessories Limited (the 'Company') (formerly
Tree House Education & Accessories Private Limited) was incorporated on
July 10, 2006 under the Indian Companies Act, 1956 (the 'Act'). The
Company is engaged in providing education and related services
including leasing of education infrastructure.
2. Basis of preparation
The financial statements have been prepared under Historical Cost
Convention on the accrual basis of accounting, are in accordance with
the applicable requirements of the Companies Act, 1956 (the 'Act') and
comply in all material aspects with the Accounting Standards as
notified by the Companies (Accounting Standards) Rules, 2006, to the
extent applicable. The accounting policies have been consistently
applied by the Company.
3. Use of estimates
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of income
and expenses of the year, the reported balances of assets and
liabilities and the disclosures relating to contingent liabilities as
of the date of the financial statements. Examples of such estimates
include useful lives of fixed assets, future obligations under employee
retirement benefit plans, provision for doubtful debts and advances,
etc. Actual results could differ from those estimates. Any revisions to
accounting estimates are recognised prospectively in the current and
future periods.
4. Business Commercial Rights
The Company has entered into an exclusive facilitation service
agreement with various educational trusts based on which the Company
has exclusive rights for a period of 30 years to provide various
facilitation services for schools/courses to be set up by these
educational trusts. The Company has paid one time fixed fee to the
educational trusts towards such rights. The fee paid is recognised as
an intangible asset and accordingly capitalised as 'Business Commercial
Rights' in the financial statements. The annual income from these
educational trusts is based on fixed fee per student admitted /enrolled
with the schools /courses during the tenor of the agreement and is
subject to minimum guaranteed amount each year.
The Company had prepared and submitted audited interim financial
statements for the nine months ended December 31, 2010 and Business
Commercial Rights were amortised over a period of 10 years. Currently,
in view of the improvement in the projected cash inflows due to the
expected increase in student enrolments in the schools/ courses, the
management has revised the estimated useful life of Business Commercial
Rights and the same are now amortised over a period of 30 years, being
the period specified under the facilitation agreements.
Capital work in progress (including capital advances) includes an
amount of Rs. 307,965,475 (previous year: Rs. 159,120,534) incurred towards
Business Commercial Rights, which will be capitalised on commencement
of operation of the schools and full payment of the agreed fees to the
education institutions.
5. Joint Venture agreement
The Company has entered into a joint venture agreement with Jayshree
Builders ('JB') to construct and rent a school building. As part of the
arrangement, the Company and JB have agreed to equally contribute to
share capital of JT Infrastructure Private Limited (Formerly known as
'Rage Realty Private Limited'), a Company in which both Tree House
Education & Accessories Limited and JB have equal share holding. The
Company has contributed Rs. 26,390,000 (previous year Rs. 10,145,000)
towards share application money in JT Infrastructure Private Limited.
The Company has a 50% interest in the assets, liabilities, expenses and
income of JT Infrastructure Private Limited, a Company incorporated in
India. The operations have not commenced and Company's share of the
assets and liabilities of the jointly controlled entity as per the
latest available audited Balance Sheet are :
6. segment information
The activities of the Company comprise of only one business segment i.e
"providing education and related services to other education
institutions". The Company operates in only one geographical segment
i.e. India. Hence, the Company's financial statements are reflective of
the information required by Accounting Standard 17, "Segment Reporting"
notified under the Companies Act, 1956.
7. Operating lease
in case of assets taken on lease
The lease rent charges of premises and furniture recognised in the
Profit and Loss Account during the year ended March 31, 2011 is Rs.
58,034,527 (previous year: Rs. 38,309,794) significant leasing
arrangements:
a. The period of lease for the premises varies by location and ranges
from 3 to 10 years.
b. Renewal of the lease at the end of the initial term is at mutual
consent of both parties.
c. For leases entered into with the promoters, promoters have a choice
to terminate the lease agreement if their shareholding in the Company
reduces to less than 50%.
d. The Company has entered into lease conducting agreements with
certain parties where the lease rentals are based on the revenue earned
at the respective centres. The expected future lease payments cannot be
estimated in respect of these lease conducting agreements and hence
future liability in respect of the same have not been disclosed.
Significant leasing arrangements:
a. The period of lease for the premises is 30 (Thirty) years.
b. The lease Rent shall stand revised by addition of an amount
equivalent to 15% at the end of every third year.
c. After the expiry of the said initial term of 30 years, the lessee
has a sole option to renew the lease term for further period of 30
years.
8. Contingent Liabilities (not provided for)
Year ended Year ended
March 31, 2011 March 31, 2010
Particulars
Bank guarantees given against loan
taken by director. Outstanding loan 11,445,000 11,445,000
amount as at year end is
Rs. 7,466,821 (previous year:
Rs. 8,983,110)
9. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) is Rs. 227,366,679
(previous year: Rs. 70,715,440).
10. The Company is primarily engaged in providing education services.
The sale of such service cannot be expressed in any generic unit.
Hence, it is not possible to give the quantitative details of sales and
certain information as required under paragraph 3, 4C and 4D of Part II
of Schedule VI to the Companies Act, 1956
11. Dues to Micro, small and Medium Enterprises
The Company is in the process of identifying micro and small suppliers
under the Micro, Small and Medium Enterprises Development Act, 2006 and
in the absence of information in this regard, the particulars required
by the aforesaid Act have not been given.
12. Employee stock Option Plan
The Company has implemented Employee Stock Option Plan for the key
employees of the Company through the Tree House Employees Welfare Trust
(the 'Trust') formed for the purpose. All the options issued by the
Company are equity share based options which have to be settled in
equity shares only. The shares to be allotted to employees under the
Tree House Education Employees' Stock Option Plan, 2010 are issued to
the Trust by the Company. Based on the information provided by the
Trust, the details of the Tree House Education Employees' Stock Option
Plan, 2010 of the Company as at March 31, 2011 are as under:
13. Previous year's figures have been regrouped, rearranged, or
recasted wherever considered necessary to conform to current year's
presentation.
Mar 31, 2010
1. Background:
Tree House Education and Accessories Private Limited (the 'Company')
was incorporated on July 10,2006 under the Indian Companies Act, 1956
(the 'Act').. The Company is engaged in providing education and related
services.
2. Basis of preparation:
The financial statements have been prepared under historical cost
convention on the accrual basis of accounting, are in accordance with
the applicable requirements of the Companies Act, 1956 ('the Act') and
comply in all material aspects with the Accounting Standards as
notified by the Companies (Accounting Standards) Rules, 2006, to the
extent applicable. The accounting policies have been consistently
applied by the company.
3. Use of estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of income and expenses
of the period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of the
financial statements. Examples of such estimates include useful lives
of fixed assets, future obligations under employee retirement benefit
plans, etc. Actual results could differ from those estimates . .Any
revisions to accounting estimates are recognised prospectively in the
current and future periods.
4. Share issue expenses
Share issue expenses are adjusted in the same year against the
securities premium account as permitted by section 78(2) of the
Companies Act, 1956. In case of insufficient balances in the securities
premium account, unadjusted share issue expenses are amortized over a
period of 5 years. In case subsequently there arises a securities
premium account, unadjusted share issue expenses would not be amortized
but adjusted against the securities premium account.
5. Capita work-in-progress
Capital work in progress including capital advances aggregate to
Rs.305,01O,589 (previous year: Rs.155,051,531), which primarily relate
to the following:
a. The company has made part payments to various educational
institutions, aggregating Rs.142,575,000 (previous year: Rs.l0,400,000)
towards acquisition of exclusive rights for providing facilitation
service for all schools/courses run currently or to be established in
future by the respective educational institution. Against, these
facilitation services, the company will earn a fixed fee per child
admitted/ enrolled with the schools/courses for the entire term of
agreement. The aggregate annual fee to be earned is subject to minimum
guaranteed amount under the agreement with, the respective educational
institutions. The agreement is effective on full payment of the agreed
fixed fee by the company and on commencement of rendering of the
facilitation services specified under tlle agreement. Presently, tlle
projects have not commenced and accordingly, tlle payments made are
disclosed as capital advances under capital work in progress.
b. Further, the Company has paid an advance of Rs.14,000,000 (previous
year: Rs.14,000,000) for acquisition of properties to be used for its
play school operations. The properties are under construction and the
Company is in process of getting tlle title deeds transferred in its
name.
6. Joint Venture agreement
The Company has entered into a joint venture agreement witll Jayshree
Builders OB') to construct and. rent a school building. As part of the
arrangement, the Company and JB have agreed to equally contribute to
share capital of Rage Realty Private Ltd (RRL), a company formed for
the joint venture. During the year, the Company has contributed
Rs.10,045,000 towards share application money in RRL.
As the future liability for gratuity is provided on actuarial basis for
the Company as a whole, the amount pertaining to the director is not
ascertainable and, therefore, not included above.
7. Gratuity Plan
The following table sets out the status of the gratuity plan for the
year ended March 31, 2010 as required under Accounting Standard 15,
Employee Benefits (Revised) as notified under the Companies Act, 1956.
8. Segment information
The activities of the company comprises of only one business segment
i.e "providing education and related services to other educational
institutions". The Company operates in only one geographical segment
i.e.
India. Hence the company's financial statement is reflective of the
information required by Accounting
Standard 17 prescribed by the Companies (Accounting Standards) Rules,
2006 on Segment Reporting.
9. Operating lease
The lease rent charges of premises and furniture recognized in the
profit and loss account is Rs.34,884,090 (previous year Rs ..
20,571,975).
Significant leasing arrangements:
a. The period of lease for the centers varies by location and ranges
from 3 to 10 years.
b. Renewal of the lease at the end of the initial term is at mutual
consent of both parties.
c. For leases entered into with the promoters, promoters have a choice
to terminate the lease agreement if their shareholding in the Company
reduces to less than 50%.
10. Earning / (loss) per share
The amounts considered in ascertaining the Company's earnings per share
constitute the net profit/loss for the year attributable to the equity
shareholders. In accordance with Accounting Standard 20, 'Earnings Per
Share', basic earnings per share is computed using the weighted average
number of equity shares outstanding during the year and earnings
available to equity shareholders
11. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) is Rs. 70,715,440
(previous year: Rs. 42,385,200).
12. Share Capital
a) During the year, the Company has issued an additional 23,75,000
shares at Rs. 63.16 per share to Matrix, Partners India Investment
Holding LLC ('Matrix') as further contribution towards equity share
capital aggregating to Rs. 150,000,000, equivalent to USD3,090,536.
b) Subsequent to year end, Matrix and FCVI ventures Ltd ("Capital
Foundation) subscribed to additional 814,259 shares and 2,804,668
shares respectively of the company at Rs. 110.53 per share as further
contribution towards equity share capital aggregating to Rs.
400,000,000.
13. Quantitative Details
The company is primarily engaged in providing education services. The
sale of such service cannot be expressed in any generic unit. Hence, it
is not possible to give the quantitative details of sales and certain
information as required under paragraph 3, 4C and 4D of Part II of
Schedule VI to the Companies Act, 1956.
14. Dues to Micro and Small Enterprises
The Company is in the process of identifying micro and small suppliers
under the Micro, Small and Medium Enterprises Development Act, 2006 and
in the absence of information in this regard, the particulars required
by the aforesaid Act have not been given.
15. Previous year's figures have been regrouped, rearranged, or
recasted wherever considered necessary to conform to current year's
presentation.