MIRA INFORM REPORT

 

 

Report Date :

05.11.2011

 

IDENTIFICATION DETAILS

 

Name :

CORE EDUCATION AND TECHNOLOGIES LIMITED (w.e.f.17.08.2011)

 

 

Formerly Known As :

CORE PROJECTS AND TECHNOLOGIES LIMITED

 

 

Registered Office :

Unit No. 1-8, Building No. 4, Sector III, Millennium Business Park, Mahape, Navi Mumbai-400710, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

11.04.1985

 

 

Com. Reg. No.:

035915

 

 

Capital Investment / Paid-up Capital :

Rs.218.291 millions

 

 

CIN No.:

[Company Identification No.]

L51900MH1985PLC035915

 

 

Legal Form :

A Public Limited Liability Company. The company’s Shares are listed on stock exchange.

 

 

Line of Business :

Providing technology enabled education solutions to government bodies, schools and students. 

 

 

No. of Employees :

400 Approximately

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (66)

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 38831364

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. However trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

INFORMATION PARTED BY

 

Name :

Mr. Prashant Chopra

Designation :

Finance Manager

Contact No.:

91-22-26741875

Date :

03.11.2011

 

 

LOCATIONS

 

Registered Office :

Unit No. 1-8, Building No. 4, Sector III, Millennium Business Park, Mahape, Navi Mumbai-400710, Maharashtra, India

Tel. No.:

91-22-27784800

Fax No.:

91-22-27782977 / 39914880

E-Mail :

ganesh.umashankar@coreprojectstech.com

info@coreprojectstech.com

prashant.chopra@core-edutech.com

Website :

http://www.coreprojectstech.com

Location:

Owned

 

 

Development Center :

Unit No. 403, Non AC Unit, Multistorade Building, Seepz, Andheri (East), Mumbai 400094, Maharashtra, India

Tel. No.:

91-22-33066700

Fax No.:

91-22-33066770

E-Mail :

info@coreprojectstech.com

 

 

Corporate Office :

Lotus Business Park, 10th Floor, Dalia Industrial Estate, Off Andheri Link Road, Andheri (West), Mumbai-400053, Maharashtra, India

Tel. No.:

91-22-26741875/ 26741876/ 26741877/ 2674187

Fax No.:

91-22-26741880

E-Mail :

info@coreprojectstech.com

 

 

Overseas office 1:

Three Ravinia Drive, Suite 1900, GA 30096, USA

 

 

Overseas Officer 2:

37, Warren Street, London WIT 64D, UK

 

 

Overseas offices:

Located at:

 

·         USA

·         UK

·         UAE

 

 

Branches :

Located at:

 

·         New Delhi

·         Hyderabad

·         Kolkata

·         Ahmedabad

·         Haryana

 

 

DIRECTORS

 

AS ON 31.03.2011

 

Name :

Mr. Sanjeev Mansotra

Designation :

Managing Director

 

 

Name :

Mr. Sunder  Shyam Dua

Designation :

Independent Director

 

 

Name :

Mr. Nikhil Morsawala

Designation :

Independent Director

 

 

Name :

Mr. Awinash Arondekar

Designation :

Independent Director

 

 

Name :

Mr. M Narayanan Nambiar

Designation :

Independent Director

 

 

Name :

Mr. Harihar Iyer

Designation :

Non Executive Director

 

 

Name :

Mr. Naresh Sharma

Designation :

Whole Time Director

 

 

Name :

Mr. Prakash Gupta

Designation :

Chief Executive Officer

 

 

Name :

Mr. Mike Jones

Designation :

Division Director

 

 

Name :

Mr. Peter Newman

Designation :

Operations Director

 

 

Name :

Mr. Paul Duffin

Designation :

Technical Director

 

 

Name :

Mr. Vijay Kumar Malik

Designation :

Director-Education

 

 

Name :

Dr. Ajay Chauhan

Designation :

Division Director-Education

 

 

KEY EXECUTIVES

 

Name :

Mr. Ganesh Umashankar

Designation :

Company Secretary

 

 

Name :

Mr. Abhay Phansikar

Designation :

Head- Mea and New Technologies

 

 

Name :

Mr. Hemant Saravate

Designation :

Vice President- Project

 

 

Name :

Mr. Shubhanan Ajgaonkar

Designation :

General Manager – Commercial

 

 

Name :

Ms. Loly Vadassery

Designation :

Vice President - HR

 

 

Name :

Mr.  Pankaj Sampat

Designation :

Financial Analyst

 

 

Name :

Mr. Shekhar Iyer

Designation :

President- Education

 

 

Name :

Mr. Kevin Howell

Designation :

President – Core K12

 

 

Name :

Mr. Sanjay Minocha

Designation :

President – ERP

 

 

Name :

Mr. Sanjay Chittore

Designation :

President- ITES

 

 

Name :

Mr. Steve Fan

Designation :

COO- Core K12

 

 

Name :

Mr. Yadu Tekale

Designation :

Senior Vice President Consulting

 

 

Name :

Mr. Amit Mehta

Designation :

Chief Technical Officer

 

 

Name :

Mr. Mukund Sathe

Designation :

Delivery Head

 

 

Name :

Mr. Dipen Vadodaria                                                          

Designation :

Delivery Head- UK

 

 

Name :

Mr. Dwarkadheesh Naidu

Designation :

Vice President

 

 

Name :

Mr. Aninadya Kumar Banerjee

Designation :

Vice President

 

 

Name :

Mr. Ashutosh Ghare

Designation :

General Manager in Sales

 

 

Name :

Mr. Sanjiv Datta

Designation :

General Manager – Marketing

 

 

Name :

Mr. Sunil Menon

Designation :

Manager Sales

 

 

Name :

Ms. Chandni Nihalani

Designation :

Product Manager

 

 

Name :

Mr. Nikhil Pandya

Designation :

Head – Banking and Treasury

 

 

Name :

Mr. Trilok Suthar

Designation :

General Manager – Accountant

 

 

Name :

Mr. Sanjay Chandoskar

Designation :

DGM- Finance

 

 

Name :

Mr. Lee Smith

Designation :

Chief Finance Officer

 

 

Name :

Mr. Prashant Chopra

Designation :

Finance Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2011

 

Category of Shareholder

Total No. of Shares

% of total No. of Shares

 

 

 

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Bodies Corporate

52,001,291

46.78

Sub Total

52,001,291

46.78

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

52,001,291

46.78

(B) Public Shareholding

 

 

(1) Institutions

 

 

Financial Institutions / Banks

325,800

0.29

Central Government / State Government(s)

2,545,587

2.29

Foreign Institutional Investors

24,033,212

21.62

Sub Total

26,904,599

24.20

(2) Non-Institutions

 

 

Bodies Corporate

20,724,695

18.64

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

2,133,551

1.92

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

4,311,209

3.88

Any Others (Specify)

5,094,539

4.58

Clearing Members

884,777

0.80

Non Resident Indians

370,280

0.33

Foreign Nationals

1,124,089

1.01

Trusts

21,100

0.02

Directors & their Relatives & Friends

34,945

0.03

Foreign Corporate Bodies

2,659,348

2.39

Sub Total

32,263,994

29.02

Total Public shareholding (B)

59,168,593

53.22

Total (A)+(B)

111,169,884

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

111,169,884

100.00

 

Shareholding belonging to the category :
"Promoter and Promoter Group"

 

Sl.
No.

Name of the Shareholder

Total Shares held

Number

As a % of
grand total
(A)+(B)+(C)

1

 Wisdom Global Enterprises Limited

37,701,291

 33.91 

2

 Core Infrapower Limited

14,300,000

 12.86 

 

 Total

52,001,291

 46.78 

 

Shareholding belonging to the category

"Public" and holding more than 1% of the Total No.of Shares

 

Sl. No.

Name of the Shareholder

No. of Shares

Shares as % of Total No. of Shares

1

 Albula Investment Fund Limited

8,403,885 

7.56 

2

 Citigroup Global Markets Mauritius Private Limited

2,463,190 

2.22 

3

 Crest Fund Limited

4,878,060 

4.39 

4

 Ipro Funds Limited

1,884,376 

1.70 

5

 Rhodes Diversified

3,113,361 

2.80 

6

 Pacific Corporate Services Limited

1,747,000 

1.57 

7

 Samrniya Properties Private Limited

1,387,135 

1.25 

8

 United India Insurance Company Limited

1,671,583 

1.50 

9

 Mukund Trikamlal Parmar

1,236,400 

1.11 

10

 The India Fund Inc

2,203,489 

1.98 

11

 Vina Viren Ahuja

1,654,500 

1.49 

12

 Religare Finvest Limited

2,125,288 

1.91 

 

 Total

32,768,267 

29.48 

 

 

BUSINESS DETAILS

 

Line of Business :

Providing technology enabled education solutions to government bodies, schools and students. 

 

 

Products :

Product Description

ITC Code

Software Development

8524.90

 

 

Terms :

 

Selling :

L/C, Cash, Credit

 

 

Purchasing :

L/C, Cash, Credit

 

 

GENERAL INFORMATION

 

 

Customers :

End Users

 

 

No. of Employees :

400 Approximately

 

 

Bankers :
  • State Bank of India
  • Punjab National Bank
  • Oriental Bank of Commerce
  • Standard Chartered Bank
  • Barclays Bank Plc
  • The Hongkong and Shanghai Bank Corporation Limited
  • Union Bank of India, Nariman Point Branch, Mumbai, Maharashtra, India 

 

 

Facilities :

Rs. In Millions

 

SECURED LOAN

31.03.2011

 

31.03.2010

 

Non Convertible Debentures

640.000

0.000

Term Loans

 

 

From Banks

612.499

232.483

Short Term Loans

 

 

From Banks

505.134

0.000

Vehicle Loans

 

 

From Banks

13.908

7.444

Working Capital Loan

 

 

From Bank

 

 

-          Foreign Currency Loans

0.000

227.002

-          Rupee Loans

1886.120

1302.645

 

 

 

TOTAL

3657.661

1769.574

 

Notes :

 

1. Non Covertible Debentures

- Rs. 640.000 millions is to be secured by pari passu fi rst charge on immovable asset and tangible Fixed assets of specific projects of the Company having a total asset cover of upto 1.25 times.

2. Term Loans

- Rs. 57.500 millions secured by First charge of property at unit No. 1 to 7, 10th Floor, Lotus Neelkamal Business Park, New Link Road, Andheri (west) Mumbai.

- Rs. 49.903 millions Secured by Equitable Mortgage of Unit No. 1, First Floor, United Infotech Park, TTC Industrial Area, Navi Mumbai

- Rs. 505.095 millions Secured by first charge on property located at Unit No. 1, Third floor, United Infotech Park, TTC Industrial Area, Navi Mumbai

3. Short Term Loan secured by subservient charge on the current assets of the company.

4. Vehicle Loan

-Secured by hypothecation of respective vehicles

5. Working Capital Loan

-Secured by hypothecation of entire stocks, book debts and other current assets of the company (present and future) ; Further Secured by equitable mortgage on the immovable properties of the company situated at Unit No: 1 to 8, Sector III, Building No: 4, Millennium Business Park, Navi Mumbai and Unit No. 1, 4th fl oor, United Infotech Park, TTC Industrial Area, Navi Mumbai; Further Secured by Fixed deposit given by the promoter company

 

UNSECURED LOAN

31.03.2011

 

31.03.2010

 

Short Term

 

 

From Banks

951.695

649.998

Foreign Currency Convertible Bonds

3339.109

451.400

 

 

 

TOTAL

4290.804

1101.398

 

Notes :

1. Short Term Loans from Banks includes

-Commercial paper of Rs. 650.000 millions

(Maximum Balance outstanding at any time during the year being Rs. 1000.000 millions

2. Short term loan from bank of Rs. 301.695 millions is secured by personal guarantee of a Director and Corporate Guarantee of promoter Company.

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Chaturvedi and Shah

Chartered Accountant

Address :

714-715, Tuliani Chambers, 212, Nariman Point, Mumbai-400021, Maharashtra, India

 

 

Subsidiaries Company:

·         CORE Education and Consulting Solutions Inc., USA

·         CORE Projects and Technologies FZC, Sharjah (Formerly CORE Projects and Technologies FZE, Sharjah)

·         Aarman Software Private Limited

·         CORE Education and Consulting Solutions (UK)Limited (Formerly CORE Projects and Technologies (UK) Limited

·         CORE Education Infratech Limited

·         HCL Systems Inc.

·         Symbia Limited UK

·         Hamlet Computer Group Limited UK

·         CORE Higher Education Private Limited

·         CORE K12 Schools Private Limited

·         CORE Skill Development and Careers Private Limited

·         CORE Education and Consulting Solutions Ltd (Isle of Man)

·         Kenan, Keenan and Associates, Inc D/B/A The Employment Store, USA

·         Partners 4 Growth Inc, USA

·         CORE Education and Consulting Solutions (HK) Limited HK

·         CORE Education Technologies Inc., Delaware USA

·         Technical System Integrators Inc., Georgia, USA

·         CORE Global Education Pte Limited

·         CORE Education and Consulting Solutions Pte. Limited

·         CORE Careers and Skill Developments Limited

 

 

Promoter / Associate / Group Company  :

·         Wisdom Global Enterprises Limited

·         CORE Steel Industries Private Limited

·         San-Neel Industries Limited

·         CORE Steel and Power Limited

·         CORE Wellness Limited

·         CORE Higher Learning Limited

·         CORE Infrapower Limited

·         CORE Learning Panaroma Limited

·         Soham Health Awarness Private Limited

·         Soham Spa Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

250000000

Equity Shares

Rs. 2 each

Rs.500.000 millions

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

109145636

Equity Shares

Rs. 2 each

Rs.218.291 millions

 

Notes :

 

a) Of the above Equity Shares,

 

1. 14,400,000 Equity Shares issued and allotted as Bonus Shares in June, 2005 (14,400,000)

2. 36,700,000 Equity Share issued and allotted as Bonus Shares in August, 2006 (36,700,000)

3. 1,350,000 Equity shares allotted to the promoters of subsidiary against acquisition (1,350,000)

4. 34,591,268 Equity shares allotted on conversion of Foreign Currency Convertible Bonds. (29,629,416)

5. 17,725,000 Equity Shares allotted against exercise of Warrants (12,525,000)

 

b) Option on Unissued Share Capital

 

i. 4,500,000 Equity Shares are reserved for allotment of equity shares under CORE Employee Stock Option Scheme 2007 Out of this issue, 314,048 (P.Y. 41,875) Equity Shares have been issued and allotted to the Employees / Director against exercise of Options under CORE ESOS 2007.

 

ii. 7,500,000 Equity Shares are reserved for allotment of equity shares under CORE Employee Stock Option Scheme 2009. Out of this issue, 115,320 (P.Y. Nil) Equity Shares have been issued and allotted to the Employees / Director against exercise of Options under CORE ESOS 2009.

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

218.291

197.192

172.532

2] Equity Share Warrants

0.000

240.500

180.725

3] Reserves & Surplus

9489.550

7101.380

4384.648

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

9707.841

7539.072

4737.905

LOAN FUNDS

 

 

 

1] Secured Loans

3657.661

1769.574

771.779

2] Unsecured Loans

4290.804

1101.398

1483.940

TOTAL BORROWING

7948.465

2870.972

2255.719

DEFERRED TAX LIABILITIES

63.818

42.651

21.156

 

 

 

 

TOTAL

17720.124

10452.695

7014.780

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2814.457

1194.126

448.713

Capital work-in-progress

1767.473

1719.745

923.356

 

 

 

 

INVESTMENT

9397.116

4880.383

3520.528

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
404.239

296.399

158.058

 

Sundry Debtors
2454.771

1911.789

1757.117

 

Cash & Bank Balances
1444.766

315.135

814.130

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances
641.797

695.284

634.248

Total Current Assets
4945.573

3218.607

3363.553

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
354.778

147.102

1068.442

 

Other Current Liabilities
538.961

73.906

0.209

 

Provisions
310.756

339.158

172.930

Total Current Liabilities
1204.495

560.166

1241.581

Net Current Assets
3741.078

2658.441

2121.972

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.211

 

 

 

 

TOTAL

17720.124

10452.695

7014.780

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income from Operations 

5155.921

4179.521

3466.334

 

 

Other Income

142.594

85.775

12.707

 

 

TOTAL                                     (A)

5298.515

4265.296

3479.041

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Software Development Cost

2533.764

2457.227

2199.596

 

 

Establishment and Other Expenses

572.865

221.273

357.177

 

 

Increase/(Decrease) in Finished Goods

(107.839)

(138.341)

(147.958)

 

 

Share Issue Expenses Written Off

0.000

0.211

0.211

 

 

TOTAL                                     (B)

2998.790

2540.370

2409.026

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

2299.725

1724.926

1070.015

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

695.046

307.669

132.336

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

1604.679

1417.257

937.679

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

84.367

55.611

23.403

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1520.312

1361.646

914.276

 

 

 

 

 

Less

TAX                                                                  (H)

283.300

243.217

105.439

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1237.012

1118.429

808.837

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2124.039

1195.980

535.718

 

 

 

 

 

 

Excess / (Short ) Provisions for Tax for earlier years

0.000

(5.647)

(2.281)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

125.000

112.000

81.000

 

 

Debenture Redemption Reserve

0.350

0.000

 

 

 

Dividend

65.487

62.157

55.809

 

 

Tax on Dividend

13.051

10.566

9.485

 

BALANCE CARRIED TO THE B/S

3157.163

2124.039

1195.980

 

 

 

 

 

 

Earnings Per Share (Rs.)

11.98

12.15

9.54

 

QUARTERLY RESULTS

 

PARTICULARS

30.06.2011

 

30.09.2011

 

1st Quarter

2nd Quarter

Net Sales

1688.320

1966.250

Total Expenditure

1005.840

1192.460

PBIDT (Excl OI)

682.480

773.790

Other Income

4.850

6.910

Operating Profit

687.330

780.700

Interest

172.880

273.100

Exceptional Items

0.000

0.000

PBDT

514.450

507.600

Depreciation

22.990

24.720

Profit Before Tax

491.460

482.880

Tax

89.270

88.920

Provisions and contingencies

0.000

0.000

Profit After Tax

402.180

393.960

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
23.34

26.22

23.24

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
29.48

32.57

26.37

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
19.59

30.85

23.98

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.15

0.18

0.19

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.94

0.46

0.74

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
4.10

5.74

2.70

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS

Rs. In Millions

 

Particulars

31.03.2011

31.03.2010

31.03.2009

 
 

 

 

Sundry Creditors
354.778

147.102

1068.442

 

BUSINESS DESCRIPTION          

 

CORE Education and Technologies Limited (CORE) formerly CORE Projects and Technologies Limited focuses on providing technology-enabled education solutions to government bodies, schools and students. The Company operates in two segments: Local-Software Development India and EOU-Software Development. EOU-Software Development is classified into Off-Shore Development and On-Shore Development. The Company has operations in 12 states in India, over 20 state in the United States, 40 educational counties in the United Kingdom, eight African countries and three Caribbean nations. In September 2010, the Company acquired Technical Systems Integrators LLC (TSI) and Keenan, Keenan and Associates Inc. For the nine months ended 31 December 2010, Core Projects and Technologies Limited revenues increased 28% to RS7.96B. Net income increased 31% to RS1.55B. Revenues reflect an increase in income from Software Development segment and higher income from EOU(Software) division. Net income reflects a rise in gross profit margin. The Company focuses on providing technology-enabled education solutions to government bodies, schools and students.

 

 

OVERVIEW:

The growth during the year under review was satisfactory. On a consolidated basis, the Company achieved a Total Operating Income of Rs. 10,912.29 million registering a growth of 28.84% as compared to Rs. 8,469.81 million during the previous financial year. Similarly, Profit Before Tax was Rs. 2,718.62 million with a growth of 30.95% as compared to Rs. 2,076.00 million during the previous financial year. Profit After Tax was Rs. 2,250.11 million with a growth of 30.65% as compared to Rs. 1,722.24 million during the previous financial year.

 

OPERATIONAL HIGHLIGHTS

 

Domestic Operations:

 

ICT@CORE

A major milestone in the history of the Company was recorded by bagging one of the largest education projects valued approximately Rs. 2,950 million from the State of Haryana for implementing ICT (Information and Communication Technology) covering 2,622 schools which will benefit 5 million students across 21 districts in that State. This project is expected to augment the focus of the Government to improve the quality of education in schools by ushering in enhanced use of technology. The project envisages use of computers and bio-metric devices to enhance delivery of quality education in the schools and to monitor student and teacher performances. They will also develop software to support monitoring and evaluation of teachers and students for the State’s Education Department including asset and maintenance management system and help desk facility at the State level. Their Company has also bagged a contract from the Govt. of Maharashtra under the ICT@Schools Phase 2 program covering 947 schools across the three districts of Mumbai, Pune and Kolhapur. The contract, which will extend over a period of 5 years from the date of its commencement, is valued at Rs.1,200 million. They also successfully commissioned the ICT project with the State of Nagaland. Another project with the Government of Gujarat was signed for implementing Computer Aided Learning (CAL) for 645 Schools valued at about Rs. 264 million covering 645 schools across south Gujarat for a period of 5 years. This project involves setting up Computer Aided Learning in Secondary and Higher Secondary schools and supply of hardware, software, manpower services including Teachers’ Training and maintenance of systems. They also signed a contract for providing Child Tracking System (CTS) with the Assam State Government under the Axom Sarba Siksha Abhijan Mission. The project includes providing bi-lingual CTS application and supply of ICR survey forms, household survey training,  converting the data digitally and providing support and maintenance for 1 year. Similarly, they have entered into a contract with the Government of Tripura to provide a Learning Management System (LMS) and for developing 100 hours of content in English and Bengali.

 

CORE K12 Schools

They are initiating many activities under this domain with many small projects being implemented with quality products and solutions. This is a major step for the Company to create its niche in the domestic market, by leveraging its overseas experience and expertise. They have undertaken a pilot project for implementing school ERP and maintenance for Navodaya Vidhyalaya Samiti, under the Ministry of HRD, Department of Education. They are commissioning a pilot project for Kendriya Vidyalaya Sangathan for implementing Quality Improvement Programs and School ERP products, implementing Assessment Centre and providing e-learning contents for 25 Kendriya Vidyalayas. Similar products and services are also provided to Navodaya Vidyalaya Samiti, under the Ministry of HRD covering 64 schools. They plan to establish a chain of CORE K12 schools in next few years. These schools will be established in accordance with existing regulations and affiliated to various streams like IB, ICSE, CBSE, etc. These schools would aim to provide quality education clubbed with special focus on sports, arts and other activities, which would not only enable the students for preparing themselves for better prospects’ in their career but also to explore the students’ hidden talent.

 

CORE Higher Education

They were awarded a contract by the National Project Implementation Unit (NPIU), under the ministry of HRD for providing MIS for monitoring technical education quality improvement program for 200 Engineering Colleges, setting up data center for hosting MIS, provide MIS training for 1,200 users and maintenance for 5 years. Similar to the schools, they also plan to establish private universities for Management Studies, Engineering and Technical. With the passing of Private Universities Bill by some States, they believe, this would be another big opportunity for CORE to help the students to imbibe quality higher education.

 

CORE Skill Development:

 

Vocational Training:

Vocational Training is another area gaining thrust worldwide with several ministries coming out with various schemes in vocational training for unemployment remediation and meeting the industry’s needs for skilled man-power. This is another important area of focus for

 

CORE as they move forward.

Under the vocational training initiatives, the Company received a mandate to assist the Delhi Police to equip its personnel with latest IT Skills for approximately 2000 policemen with the basics of IT. This initiative will be a part of Crime and Criminal Tracking Network and System (CCTNS) program which Delhi Police has undertaken to curb crime in the city. The CCTNS is a comprehensive system designed to facilitate collection, storage, retrieval, analysis, transfer and sharing of data and information between police stations and the State and Central Police Organisation. The Company also signed MOU with Gujarat Knowledge Society to impart job-oriented skill upgradation courses to students from various disciplines in colleges across Ahmedabad and Surat districts. This is a signifi cant step towards educating and enhancing the employment potential of youth in Gujarat. The courses will be offered across 18 verticals covering 400 colleges to cater to a student population of about 100,000. They also received approval from the Ministry of Higher and Technical Education, Maharashtra, for establishing Industrial Training Center (ITC) in Navi Mumbai. This initiative will focus towards skill capacity building and plans to address the challenges of skilled manpower in the country by producing trained workforce through a delivery mechanism for industry relevant training programs. The courses to be provided will follow the National Council for Vocational Training (NCVT) in accordance with the guidelines issued by the respective Governments.

 

Teachers’ Training, Capacity Building:

The Company has already signed a MOU with the University of Oxford for enabling Teachers Capacity Building and for Training Teachers in India. This path breaking collaboration with the University of Oxford is very critical and crucial for the success of the Sarva Shiksha Abhiyaan (SSA), the Rashtriya Madhyamik Shiksha Abhiyaan (RMSA) and the Model Schools Programs, the main initiatives for improving education in the country, by the Government of India. This enables the Company to have a fi rst mover advantage to tap a signifi cant market share which is stated to be USD one billion. This collaboration with Oxford University is the first ever private sector initiative in the field of teacher enablement in India. The Company has already commenced leveraging this association in the domestic market and will see more developments in this regard in the immediate future.

 

 

OVERSEAS OPERATIONS:

USA Operations

During the year under review, CORE Education and Consulting Solutions Inc., USA, one of their main wholly owned subsidiarIes in the US reported a turnover of USD 125.87 (Rs. 5,725.33 million) showing an increase of 19.65% over the previous year. Profit After Tax was USD 16.95 million (Rs. 771.07 million) showing an increase of 41.40% over the previous year.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

I. INDUSTRY STRUCTURE AND DEVELOPMENTS

Education sector has seen some major developments and a few trend changing impacts across the globe in the past year. Some landmark changes like the grant for special education, assessment in the US, the Right To Education (RTE) becoming law and putting the onus of providing education to every child in the country on the Government in India, the reaffi rmation of the focus on education in post recession UK make for a bright picture for the future for this sector. This is also supported by one of goals of the United Nation under its Millennium Development Goals that is to – ‘Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary Schooling’. In the developing markets, as governments continue to increase spend year after year, this creates more infrastructure and facilitated better reach to the remotest of areas directly affecting the increase in the addressable population for us. Also noticeable are the continuing trends of increasing spending on education across nations that comes as a confirmation of all administrations to focus on education. An area that is also emerging is that of Skill Development and Vocational Training so as to align the newly emerging skilled workforce with the market needs. Emphasis on the quality aspect of education has seen training of teachers becoming a focal area for innovations and growth. Higher education continues to grow by leaps and bounds as demand keeps rising year on year. Literacy and education would enable the developing nations to improve their Human Capital Development, which is the need of the hour for advancement in the progress of its economy.

 

 

OUTLOOK

The education system worldwide is dominated by core sectors of higher education and the K12 schools, which account for nearly 80% of the total consumer spends in the market. The Indian higher education sector is expected to grow at an 18% CAGR till 2020, considering the Government initiatives through the ‘PPP’ model, and the industry’s boom in the years to come it seems to be a natural consequence – double incomes in nuclear families, high spending propensity and population growth will all be active contributors to the economy.

 

 

FIXED ASSETS:

 

·         Land

·         Building

·         Computer

·         Computer Software

·         Furniture and Fixture

·         Electrical Equipments

·         Office Equipments

·         Motor Car

 

 

 

 

 PRESS RELEASE

 

CORE dons new Avatar – Core Education

 

MUMBAI, August 19, 2011: Reflecting its increased thrust on education, CORE Projects and Technologies Limited, (CORE) [BSE: 512199] today announced a change in its name.

 

The leading global education solutions provider will now be rechristened as Core Education and Technologies Limited

 

CORE has emerged as a major force to reckon with in the rapidly growing education sector with its presence in over 9000 schools pan-India in about a year’s period. With quality as its mantra, CORE has made major strides in education thanks to its management, operational, and technical capabilities.

 

Announcing the name change, Mr. Sanjeev Mansotra, Chairman and Global CEO, CORE Group said: “CORE Education and Technologies Limited means a lot to us and it is not merely a new name. It reflects our commitment to the growth of education in the country since we firmly believe that an educated India will be able to take on the world with great confidence as it dares to dream to emerge as an economic super power by the year 2020."

 

Making major inroads into the country’s education space, Core has just bagged its second large contract from Gujarat Government to implement Computer Aided Learning (CAL) in 3236 Primary Schools for Rs. 1240 millions The company is already present in 645 schools in Gujarat through an earlier Information and Communication Technology (ICT) contract. The company has also bagged similar CAL and ICT contracts for 2,622 schools in Haryana, 1,250 in Punjab, 947 in Maharashtra, 267 in Meghalaya, and 73 schools in Nagaland.

 

This is also a testimony for CORE’s excellent track record with Governments across the world. In a first of its kind Private initiative in the Public Sector, CORE has also been mandated to deploy School Quality Enhancement Programs at 60 Navodaya Vidyalaya Samitis and 25 Kendriya Vidyalaya Sangathans. This could pave way for its implementation across all other Government schools in the country.

 

Globally, CORE caters to over 85,000 schools across 20 State Governments in US, 40 Educational Departments in UK, 9 African countries and 12 State Governments in India, touching lives of more than 31 million students.

 

About CORE Education & Technologies Ltd

 

Subject is India’s largest global education organization with operations in US, UK, Caribbean, Africa and India. CORE, a first generation entrepreneurial venture by Sanjeev Mansotra, provides integrated products, solutions and services across the entire continuum in education – K-12, Higher Education and Skill Development. Under Sanjeev Mansotra, Global CEO and Chairman, CORE has created a dominant place for itself in the education space in International and Indian Markets. CORE’s offerings cover compliance, assessment, ICT, content, teacher training, vocational training, examination management system, language skills and has globally impacted more than 85,000 schools, 31 million students and trained over 105,000 teachers. 12 State Governments in India, 20 State Governments in USA, over 40 Local Educational Authorities in UK and 8 African countries work with CORE for education projects across the world.

 

 

 

 

 

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes

4) Premises details

Yes

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter's background

--

8) No. of employees

Yes

9) Name of person contacted

Yes

10) Designation of contact person

Yes

11) Turnover of firm for last three years

Yes

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No

19) Payments terms

Yes

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

--

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

No

28) Incorporation details, if applicable

--

29) Last accounts filed at ROC

--

30) Major Shareholders, if available

--

 

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.08

UK Pound

1

Rs.78.65

Euro

1

Rs.67.79

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

66

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

 

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.