EVERONN EDUCATION LIMITED
ANNUAL REPORT 2011-2012
To the Members,
Your Directors present the Twelfth Annual Report of the Company along with
the Audited Financial Statements for the financial year ended March 31,
I. FINANCIAL RESULTS (Amt. in Rs. Lakhs)
Financial Results for the year ended
Particulars 31-March-2012 31-March-2011
Income from operations 30,381.52 30,162.93
Other Income 618.16 516.06
Total Revenue 30,999.68 30,678.99
Total expenditure before
interest & Depreciation 24,558.90 14,754.35
Operating Profit/(Loss) (EBIDTA) 6,440.78 15,924.63
Interest 3,794.31 2,032.41
Depreciation/Amortization 5112.99 3588.79
Profit/(Loss) before tax (2466.52) 10,303.43
Provision for tax (815.54) 3006.90
Profit/(Loss) after tax (1650.98) 7296.53
II. VARKEY GROUP
During the financial year 2011 - 12, the Company has allotted 26,18,120
equity shares to Varkey Group Limited (VGL) on 16th December 2011 under a
Memorandum of Understanding executed between the Company, VGL and SKIL
Infrastructure Limited on 19th September 2011. Pursuant to this allotment,
VGL has been inducted as a co-promoter of the Company. In accordance with
the SEBI (Substantial Acquisition of Shares and Takeover) Regulations 1997,
Varkey Group Limited, along with Gems Education (Asia) 1 Limited (GEMS),
Mr. Sunny Varkey and Mrs. Sherly Varkey made an open offer to the
shareholders of the Company for the acquisition of their shares at the
price of Rs. 528/- per share. In accordance with the terms and conditions
of a letter of offer dated 5th December 2011, GEMS acquired 44,93,962
equity shares from the shareholders of the Company and was inducted as a
co-promoter of the Company. The management and control of the Company has
been taken over by Varkey Group Limited.
III. SUBSIDIARY COMPANIES
The Company had 13 subsidiaries at the beginning of the year. Two
subsidiaries were set up during the year viz.:
(i) Everonn Skilling India Limited
(ii) Everonn Skill Products Development Limited
The total number of subsidiaries as on March 31, 2012 is 15.
There has been no material change in the nature of business of the
subsidiaries. A statement containing brief financial details of the
subsidiaries is included in the Annual Report.
As required under the Listing Agreements entered into with the Stock
Exchanges, a consolidated financial statement of the Company and all its
subsidiaries is attached. The consolidated financial statements have been
prepared in accordance with the relevant accounting standards as prescribed
under Section 211(3C) of the Act. These financial statements disclose the
assets, liabilities, income, expenses and other details of the Company and
its subsidiaries companies.
Pursuant to the provision of Section 212(8) of the Act, the Ministry of
Corporate Affairs vide its circular dated February 8, 2011 has granted
general exemption from attaching the Balance Sheet, Statement of Profit and
Loss and other documents of the subsidiary companies with the Balance Sheet
of the Company. A statement containing brief financial details of the
Company`s subsidiaries for the financial year ended March 31, 2012 is
included in the Annual Report. The Annual Accounts of these subsidiaries
and the related detailed information will be made available to any member
of the Company/its subsidiaries seeking such information at any point of
time and are also available for inspection by any member of the Company/its
subsidiaries at the registered office of the Company. The annual accounts
of the said subsidiaries will also be available for inspection during
business hours, as above, at the corporate / registered office of the
respective subsidiary companies. The Company shall furnish a copy of the
details of annual accounts of subsidiaries to any member on demand.
Mr. Dino Varkey and Mr. Rakesh Sharma have been appointed as Additional
Directors on February 13, 2012. As per the provisions of Section 260 of the
Companies Act, 1956 both the Directors hold office only up to the date of
the forthcoming Annual General Meeting (AGM) of the Company and are
eligible for appointment as Directors. The Company has received notices
under Section 257 of the Act, in respect of the above persons, proposing
their appointment as a Director of the Company. Resolutions seeking
approval of the members for the appointment of Mr. Rakesh Sharma and Mr.
Dino Varkey as Directors of the Company have been incorporated in the
Notice of the forthcoming AGM along with brief details about them.
Mr. Joe Thomas and Dr. M.S.Vijay Kumar are liable to retire by rotation and
Dr. M.S. Vijay Kumar being eligible has offered himself for re-appointment.
During the year Dr. Jamshed J Irani, Chairman, Mr. P. Kishore, Managing
Director and Mr. R. Sankaran, Independent Director of the Company have
resigned from the Board.
M/s. P.Chandrasekar, Chartered Accountants, Statutory Auditors of the
Company holds office up to the date of the ensuing Annual General Meeting
of the Company and being eligible, offer themselves for re-appointment.
VI. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO.
Information pursuant to section 217 (1)(e) of the Companies Act, 1956 read
with the Company`s (Disclosure of particulars in the report of the Board of
Directors) rules 1988 is provided hereunder.
(i) Conservation of Energy - The Company has planned and installed
equipments in a manner that maximum energy is conserved.
(ii) The Company`s business being IT education, every effort is made to
ensure that changes in technology are communicated throughout the
organization at every stage.
(iii) The foreign exchange earnings and outflows are detailed below:
Amount in `000
Year Ended Year Ended
Particulars 31.3.2012 31.3.2011
CIF Value of Imports 12,832 538
Expenditure in Foreign Currency
Business Associate Expenses 21,500 33,377
Travel and Conveyance 4,507 2,324
Other Expenses 3,011 4,956
Earnings in Foreign Exchange Testing Services 2,28,865 1,15,104
VII. PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 217 (2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Rules, 1975, the names
and other particulars of employees are set out in the Annexure to the
Directors Report Section. However, as per the provisions of Section 219
(1)(b)(iv) of the Companies Act, 1956, the Annual Report excluding the
aforesaid information is being sent to all the members of the Company and
others entitled thereto. Any member interested in obtaining such
particulars may write to the Company Secretary at the registered office of
VIII. FIXED DEPOSITS
Your Company has not accepted any public deposits during the year.
IX. Listing of Shares
The Equity Shares of your Company have been listed with National Stock
Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).
The Listing fees for the year 2012 - 13 have already been paid to BSE and
NSE. The custodial fees payable to depositories namely NSDL & CDSL have
also been remitted by the Company.
X. CORPORATE GOVERNANCE REPORT AND MANAGEMENT DISCUSSION & ANALYSIS REPORT
Corporate Governance Report and Management Discussion & Analysis Statement
are attached to this Report.
XI. DIRECTORS` RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217 (2AA) of the Companies Act,
1956, with respect to Directors` Responsibility Statement, it is hereby
a) That the applicable accounting standards had been followed along with
proper explanation relating to material departures, if any;
b) That the selected accounting policies were applied consistently and
judgments and estimates that are reasonable and prudent were made so as to
give a true and fair view of the state of affairs of the Company at the end
of the financial year and of the loss of the Company for that period;
c) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;
d) That the annual accounts were prepared for the financial year ended 31st
March 2012 on a going concern basis.
XII. STATUTORY DISCLOSURE
None of the Directors of your Company is disqualified as per the provisions
of Section 274(1)(g) of the Companies Act, 1956. The Directors of the
Company have made necessary disclosures, as required under various
provisions of the Act and Clause 49 of the Listing Agreement.
XIII. COMPLIANCE CERTIFICATE
A Certificate from M/s. G L Subramanian, Company Secretary in Practice
regarding compliance of conditions of Corporate Governance as stipulated
under Clause 49 of the Listing Agreement is attached as annexure to this
XIV. CORPORATE SOCIAL RESPONSIBILITY
Everonn India Foundation, a charitable trust formed by your Company is
committed towards spreading quality education across rural India. The
foundation will augment its corporate social responsibility initiatives and
will focus on building an equitable society for sustainable development and
all-around growth. Everonn strongly believes that by giving back to
society, it can contribute to a growing economy as well as build stronger
and prosperous communities. Through this initiative, Everonn`s employees,
education content & technological strength aim to make a difference in many
students` lives and their learning experiences.
XV. ACKNOWLEDGEMENT AND APPRECIATION
Your Directors take this opportunity to express their deep sense of
appreciation of all the employees whose outstanding professionalism,
commitment and initiative has made the organization`s growth and success
possible and continues to drive its progress.
Your Directors also would like to convey their appreciation for the support
and co-operation received during the year under review, from all the
Government Authorities, Regulators, Stock Exchanges, Shareholders, other
Stakeholders, Clients, Vendors, Partners, Bankers and other Business
For and on Behalf of the Board
Susha John Rakesh Sharma
Whole-time Director Director
Date : 13th August 2012
MANAGEMENT DISCUSSION & ANALYSIS REPORT
The Management of Everonn Education Limited is pleased to present to the
shareholders of the Company, a detailed report covering analysis on
industry Overview, opportunities and threats, future outlook, risks and
concerns, detailed analysis on operational performance and other major
activities of the year 2012.
The year 2011-2012 saw Everonn face turbulent weather; however, our focus
and dedication to the cause of Education remained unwithered.
The year saw several changes in the organisation, including that in the
boardroom but our fundamental vision, strength, and strategic goals
remained undeterred. Having said this, we need to admit that the untoward
incidents have reflected on our numbers for the year, which lead to a dip
in the revenue and business operations. Let us assure you that this is just
a passing phase and that your company will soon resurface steadier /
Our ability to put in place strong alternate controls has ensured that the
company swiftly and smoothly adapts, thrives and moves forward. Moreover,
Everonn`s enviable portfolio of education solutions, advanced technology,
global world-class content, vast spread network and dedicated employees
have remained our pillars of strength and helped us show a remarkable
resiliency in these adverse times.
Looking at the bright side, the year also witnessed the Dubai based Varkey
Group led GEMS Education - the world`s largest K-12 education company with
over 50 years of experience in education, coming in as a strategic investor
and acquiring management control. NRI entrepreneur and Padmashree awardee
Mr. Sunny Varkey, who is also the UNESCO Goodwill Ambassador for Education
Partnerships, is the Founder and Chairman of the group. Mr. Dino Varkey and
Mr.Rakesh Sharma, accomplished senior executives from GEMS Education, have
joined Everonn Board and will spearhead and accelerate Everonn`s growth.
During the year, Everonn has indeed strategized, and acted upon
opportunities brought by the change. We have continued to invest in the
right portfolios; expand our offerings; embrace innovation in our solution
building and delivery methodology, while focusing on employee excellence.
Several proactive measures laid in the year have helped us fortify our
vision to be a leading global player in taking education to the next
dimension through an innovative blend of institutions and resources for
creating empowered future citizens.
Our steadfast efforts in the ICT division, where we provide computer
education, computer literacy and computer-aided learning projects for
several Government Schools across the length and breadth of the country
have yielded positive results during the year. Our revenues in this have
increased substantially compared to the last year and this is further
poised to grow significantly in the coming years as we foresee huge
opportunity in the sector.
In the private sector, our initiatives have generated many strategic
engagements across the country in the K-12, Training, Certifications & Test
Preparation, Teachers` Training and Skill Development segments during the
year. These projects are long term in nature and expected to bring in
predictable and sustainable revenues over the medium term.
Our passion to provide superior education solutions to the entire value
chain have seen us foray into other segments in the education eco-system.
Predictably, we have shown remarkable growth on the Skill and Vocational
Training front during the year. Everonn has pioneered several skill
development initiatives to tap the creative energy of the Indian youth, who
contribute 50% of the Indian population. Besides providing best economic
scope for the organization, these programmes ensure that the learners
benefit by becoming globally competitive and future-ready.
Although the year witnessed major upheavals in business, management and
operations, let us reassure you that we are confident that the new
management team, dedicated employees and our innate ability to deliver the
best education solutions will see your company effectively navigate through
the turbulent times and emerge winner.
Following is a detailed report covering analysis on industry overview,
opportunities and threats, outlook, risks and concerns, detailed analysis
on operational performance and other major activities of the year 2012.
The entire education system is going through a process of overhaul, as per
a report `Emerging Opportunities for Private and Foreign Participants in
Higher Education` released by Price Waterhouse Coopers (PWC). The private
education sector is estimated to reach US$ 70 billion by 2013 and US$ 115
billion by 2018, according to consulting firm Technopak. Technopak sees
enrollments in K-12 growing to 351 million, requiring an additional 34
million seats by 2018. This equals US$ 80 billion at US$ 2400 a seat.
According to the report `Education in India: Securing the demographic
dividend,` published by Grant Thorton, the primary and secondary education,
or Kindergarten-12th grade (K12) sector is expected to reach US$ 50 billion
in 2015 from US$ 24.5 billion in 2008, growing at an estimated Compound
Annual Growth Rate (CAGR) of 14 percent.
Further, according to the report INR `40 million by 2020: Preparing for a
new paradigm in Indian Higher Education` released by Ernst & Young, the
higher education sector in India is expected to witness a growth of 18.0
per cent CAGR till 2020. At present, the sector witnesses spends of more
than INR 46,200 crore (US$ 10.4 billion), which is estimated to grow at an
average rate of more than 18.0 per cent to over INR 232,500 crore (US$ 52.5
billion) in 10 years.
The vocational segment has emerged as a US$ 2.6 billion market that is
expected to grow rapidly into one worth US$ 3.6 billion by 2013, growing by
a CAGR of 25 per cent, according to a report `Education in India: Securing
the demographic dividend,` published by Grant Thorton. India needs 1.2
million more teachers under the Right to Education Campaign, according to
the Union Minister for Human Resource and Development. He also added that
with 546 million people under 25 years of age, there is huge potential in
India in the education sector that needs to be tapped. By 2020, to increase
the percentage of students going for higher education from the present 12.4
per cent to 30 per cent in the country, India will need 800 more
universities and another 35,000 colleges, according to the Union.
Erstwhile Finance Minister, has said that the proposed allocation for
education under the Eleventh Five-Year Plan will be US$ 65.21 billion,
taking the share of education in total planned expenditure from 7.7 per
cent to 20 per cent. To accomplish massive expansion and up gradation of
the education infrastructure of schools, universities and institutes
imparting vocational training, government plans to mark up its expenditure
on education from around 10 per cent to 19 per cent. Understanding the need
for immediate impetus to all educational initiatives, the Government of
India has decided to spend around US$ 67 billion in the next five years on
II. OPPORTUNITIES AND THREATS
Your company has been meticulously forecasting the sector trend and has
been building and delivering products and solutions to the entire value-
chain addressing the needs of both Government and Private players covering
Pre-School, K-12, Test-Preparation segment, Higher & Business Education,
Vocational Education, ICT, Training, Admission Counselling, Coaching,
Certification and Testing and Resource mobilization.
Undisputedly, we are well poised to capitalize on the new opportunities
that emerge out of highly optimistic market conditions. We are well
equipped to employ our extensive Education Content & Technology Competency,
which has emerged with the decades of experience and will make all efforts
to seize this opportunity and position ourselves ahead.
A. Everonn`s Strength 1. Technology
When others were just beginning to explore the true potential technology
offers for teaching and learning, your company has taken a head start in
integrating technology into classroom learning so that students can learn
easily and quickly, while teachers can teach effectively and effortlessly.
Right from the inception, we have remained a strong advocate in education-
technology and have delivered solutions that have helped millions of
learners acquire necessary skills to survive in this complex and
technological knowledge-based economy.
Our belief in technology and our continual effort in Research and
Development led by some of the best minds in the industry, have catapulted
us to be one of the few companies in world with the ability to design
`wired and wireless knowledge and training delivery platform` to meet the
educational needs of student no matter where they are. It is to be noted
that in India, Everonn is the First to provide "Simultaneous and Seamless"
Educational Content through VSAT, Broadband & Mobile.
The company is indeed a pioneer when it comes to delivering educational
solutions through the satellite-based Very Small Aperture Terminal (VSAT)
Technology. Everonn`s biggest strength lies in its capability to make the
optimum utilization of technology to improve the quality of education to
learners. Everonn`s technology enables students from various classrooms
across the country to connect instantaneously on a two-way learning mode to
the central studio where teachers conduct classes. Such a powerful model
enables students from across various locations to get access to the best of
teachers and resources that are shared between schools. This Live and
Interactive Learning and Training Platform have redefined access to
education in India, thus truly bridging the urban-rural divide. Besides on-
line and VSAT-enabled course delivery, our association with industry
leaders like Dialcom Networks (Spain) enables us to deliver educational
content simultaneously and seamlessly through unified communication
Everonn`s technology quest is supported by its enviable infrastructure and
state-of-the art studios. The studios are adequately equipped with the
requisite audio, video and computer systems, which enable instructors to
effectively impart their instruction and interact with students. The
digitally enabled `Lecture Platform` allows instructors to use animation,
video, audio and other presentation tools to enhance the learning process.
This virtual platform blends the strengths and advantages of traditional
methods of education with cutting-edge technology. Using a powerful
interface, it enables a student to engage in participatory sessions with
peers and instructors across the country.
Everonn constantly endeavors to lead the pack and provide technology rich
classroom environments to students irrespective of the region or
Everonn believes that every child has the right to an education, a quality
education. This strong belief has enabled us strive harder and spend
several man-hours in R&D before delivering the best and the right content
to all our educational initiatives. From nursery rhymes to structured
learning content, mapped class-wise, subject-wise and chapter-wise for
different boards, to live lab experiments and business concepts, we have
meticulously ensured that our content is simple yet rich, elaborate while
engaging and most importantly enjoyable yet effective.
Our cohesive team of highly qualified and experienced subject experts,
renowned teachers & faculty members, research associates, instructional and
multi-media designers and animators work passionately to realize our dream
and meet the high quality targets that we have set for ourselves.
Our huge repository of pre-built learning objects combined with our ability
to design `wired and wireless knowledge and training delivery platform,
makes it possible to deliver content to any part of the globe on time.
Everonn has reached the milestone of becoming the largest VSAT education
network in the world.
Established with a mission to provide quality yet affordable education to
even the most remote part of the country, Everonn has continued to build
upon its core strength of providing a blend of traditional and digitized
content to the schools, colleges and retail segments across a wide cross
segments of learners spread over the length and breadth of the country.
Everonn`s growing reach now extends far beyond its regional presence,
thanks to the vast reach of the global network of its new promoter group.
Aiming to educate the mass, while remaining a one-stop education solution
provider, Everonn conducts classes in schools and colleges where computer
education was an improbable idea, provides infrastructure that is world-
class, trains teachers to be more proficient and effective and occupies
every space, from Kindergarten to the employed segment. This elevates
Everonn to a "360 degree education and training solution provider status".
At present Everonn owns and manages over several learning centres across
the length and breadth of India reaching out to millions of students across
27 states, while working with 17 State Governments of India catering to
thousands of schools.
Employees continue to be the core strength of the company. Our steadfast
progress is made possible by our devoted team of thousands of professionals
including highly qualified and experienced subject experts, renowned
teachers & faculty members, research associates, instructional and multi-
media designers and animators, administrators and other corporate
professionals, who are available across India.
5. World-renowned Group
The advent of the new promoter group, the Varkey Group led GEMS Education
has further fortified Everonn`s presence, enabling the company to move
closer to its vision of becoming a global player. GEMS Education is a
global education conglomerate recognized for its strong network of high-
performing schools, innovative educational solutions and leadership team.
GEMS Education is an international education company with a global network
of award winning schools. With over 50 years of experience in education,
GEMS provides high quality holistic education to over 110,000 students from
over 151 countries. GEMS was founded by educators and run by educators and
believe that education is a long-term commitment. GEMS is committed to
providing access to quality education to as many children in the world as
possible. GEMS operates in both the Private and Public sectors, and has
offices in the United Arab Emirates, the United Kingdom, the United States
of America, India and Singapore. The Varkey GEMS Foundation is the
company`s philanthropic arm and its honorary Chair is former US President,
Like all other business enterprises, Everonn too has national as well
global interests, and is exposed to business risks which may both be
internal and external.
The continuing uncertainty in the domestic as well as international economy
is a fundamental concern. In the domestic economy, the inflationary
pressures, current and fiscal deficits, fluctuating exchange rates pose
significant challenges to economic growth.
Frequent changes by national and state boards to their curriculum and
teaching methodologies would require us to make constant changes to our
content and delivery modalities, which can involve high amounts of
The Government policies on Education have an impact on our performance to a
large extent. Therefore, any such changes in Government policies or
reallocation of the Government budget away from education services could
affect our business prospects.
Our increasing work with governmental agencies may expose us to additional
risks. Delay in payments from government contracts may affect business cash
The Company is well aware of these risks and challenges and has put in
place mechanisms to ensure that they are managed and mitigated with
adequate timely actions.
III. SERVICE SPECTRUM
1. Instructional Computing Technology (ICT )
In the Government Schools arena, your company has further cemented its
position as a pioneer in delivering complete ICT-enabled education through
turn-key projects on a BOOT (Build Own Operate and Transfer) or BOT model.
The company has been successfully providing computer education, computer
literacy and computer-aided learning projects for several Government
Schools across the country. Being the first player to set up studio and
provide VSAT enabled education to the Government rural schools, Everonn has
initiated several Edutech programs that aim to bridge the education divide
that exist between the urban and rural areas and provide an equal
opportunity for every learner.
2. School Solutions - iSchool
School solutions, iSchool aims at redefining the education and learning
process. It meticulously combines the orthodox system of learning with
digitized content and state-of-the art teaching tools to make learning an
interactive and enriching experience. iSchool`s multimedia based digital
content mapped to a given syllabus presents a unique opportunity for
teachers and institutions to transform traditional blackboard and chalk
class rooms into interactive sessions, where complex and tedious concepts
are better and easily understood by learners.
It provides a broad portfolio of educational solutions from digitized
curriculum-mapped content to technology enabled delivery platforms to
school management systems addressing the evolving needs in the education
3. Everonn World
Everonn World was conceived by Everonn Education Limited to provide a new
thrust to education across the country. This novel project envisages
promoting people with entrepreneurial skills onto education. And transform
Business Leaders into Ambassadors of Learning - Edupreneur (entrepreneur in
education) to spread education with a missionary zeal as the nation
witnesses an unprecedented boom in the sector.
Everonn World is a unique concept wherein the training services are
delivered through technology enabled state-of-art classrooms, linked to the
Everonn Studios at Chennai and New Delhi through a dedicated V-Sat
infrastructure. Delivering from centralised studios gives immense benefit
to the students as they have access to a 2-way audio/video interaction with
the best faculty nationally without leaving their city. Diverse programs
that are currently offered through this network are:
* Employability and Career enhancement such as BFSI training, Soft Skills
and Vocational training
* Test Preparation (Coaching) for entrance exams such as IIT-JEE, AIEEE and
* IT Training (Microsoft, Oracle, CompTIA, Novell and QAI) in Hardware and
Networking, Software and Web Development, Database Management
* University Degree programs such as MBA, BBA, B.A., and B.Com.
Additionally, Everonn World is also catering to the needs to students
aspiring for Overseas education, though its counseling services covering
countries like the US, UK, Canada and Singapore. Testing and Assessment
services, in partnership with international agencies like Prometric and
Pearson VUE, are offered to the students as well as Corporates.
With a modest beginning in December 2010, at present there are 21 Everonn
World centers operating in various parts of the country with a capacity to
train 6700 every day. The company aims to increase its presence manifold by
adding capacities in all major cities in the next 2 years, thus fulfilling
the objective of providing quality education beyond the Socio-economic
barriers and help individuals to fulfill their dreams and become a part of
a knowledge driven economy.
4. Technology Solutions
The Technology Solutions at Everonn encompasses of Knowledge, Software and
Knowledge Solutions comprise of Knowledge Resource Development & Research,
Digital Learning and Teacher Training.
Knowledge Resource Development and Research (KRDR) is responsible for the
research, development and delivery of content and training solutions. KRDR
has a well-defined process that helps to cover all aspects of design,
development and deployment methodically and successfully. KRDR has
resources with extensive exposure to the eLearning and other modern
learning methodologies, including mobile, Interactive Whiteboard, other
learning systems and social learning. The team is equipped to take up end-
to-end product development, right from conceptualisation of solution to
graphic development, programming, Learning management solutions deployment
Taking advantage of the company`s inherent strength in content building and
technology enabled course delivery Everonn`s Digital Learning Solutions
offer complete educational support solutions to cater to the rapidly
evolving market demands. The product range includes online courses, live
classes, blended delivery as well as applications that can be ported and
accessed across various personal device platforms such as tablets and
Teacher Training - Building Next Generation Teachers - Everonn with its
basket of generic, segment and subject specific certified training
programs/modules shall provide an end-to-end solution to cater to the
complete range of educators` needs from the primary to the tertiary
education segments. Additional skills in terms of soft skills, personal
grooming, education management and leadership skills are also imparted.
Software Solutions provide Office Automation and Institutional Resource
The application development and software automation division is responsible
for the development and delivery of software. Their well-defined process
covers all aspects of design, development and deployment. It is qualified
to facilitate end-to-end product development right from Requirement
Gathering, Analysis, Designing, Development, Testing, Deployment, Training
and Maintenance stages.
Institutional Resource Planning apart from providing IT solutions to
business units and subsidiaries of Everonn develops and deploys custom-made
solutions to external clients. It has won prestigious Government contracts
for IT solutions on BOT model. It`s `Campus Management Solutions` can
integrate Teaching Fraternity, Learning Mass and Parents.
Platform Solutions initiates and facilitates the Virtual Learning
Environment. They ensure the regular operations of the live and interactive
content delivery from Everonn studios and services both internal and
5. Primary Education
Everonn caters to the K-12 segment across the nation by setting up brick-
and-mortar schools that follow varied curricula. These include a chain of
Pre Schools, CBSE Schools and Budget schools. Everonn also imparts world
class training program, tailor-made to meet the demands of students who are
aspiring for IIT-JEE and other Engineering/Medical Entrance Exams.
6. Vocational Education
Vocational training has garnered huge attention during the past few years
and with the Government, mandating itself to skill 500 Million by 2022 has
lured huge corporates into this arena. Everonn`s contribution towards this
nation building exercise saw the advent of Everonn Skill Development
Limited (ESDL). ESDL will address this gap by imparting industry relevant
skills / vocational training - skill, reskill and up-skill - to students
across nine of the 20 high-growth sectors identified by National Skill
Development Corporation (NSDC). ESDL offers programmes in Culinary &
Hospitality, Gaming & Animation, Nursing, Retail, Apparel & Textiles,
Welding Simulation, Electrical & Electronics, Mechatronics and other life
7. Higher Education
Focus on providing the best-of-state business schools catering to the
requirements of under-graduate, post-graduate and doctoral programme
IV. RISKS AND CONCERNS
Management of risk includes properly identifying, communicating and
controlling the risks which may cause a serious impact to the business.
Management is confident that the Company employs effective procedures to
address all material risks.
While the Company is anticipating continued growth in Education and allied
services of business, growth will be impacted by several factors including
(i) the ability of the Company to secure its educational products at
competitive prices (ii) the ability within the marketplace to manage price
increases to cover increased costs and (iii) general economic conditions.
The Government of India has instituted several policies to promote the
growth and these include interest rate subsidies, duty/tax reimbursement
schemes etc. Withdrawal/ termination of any of these policies / schemes may
adversely impact the profitability of the Company.
However, the Company has put in place a risk management system which has
the objective to create about various risks associated with the business of
the Company. It defines the risk policies, lays out the risk strategies and
methodology to decide on the risk taking ability of the Company. The risk
management process involves risk identification, risk measurement, risk
prioritization, risk monitoring, risk escalation and risk mitigation.
V. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The company has internal control systems and processes that provide
reasonable assurance of effective and efficient operations, internal
financial control and compliance with laws and regulations. Internal
controls comprise of operational procedures, segregation of duties,
periodic reconciliations and formal policies and procedures that facilitate
complete, accurate and timely processing and recording of transactions and
safeguarding of assets.
The Management receives independent feedback from the reports issued by
Internal Auditors, Statutory Auditors on the adequacy of the internal
controls and endeavors to strengthen the internal control weaknesses.
Internal controls are generally adequate for established activities and
services. Internal controls are periodically tested, reviewed and enhanced.
The Audit Committee periodically reviews audit plans, observations and
recommendations of the Internal Auditors as well as external auditors with
reference to significant risk areas and adequacy of internal controls.
The CEO & CFO submits a quarterly Certificate to the Board on the adequacy
of our internal control systems and procedures.
VI. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL
The Financial performances are covered in the Directors report and the same
can be referred to in the said report
VII. HUMAN RESOURCES DEVELOPMENT
Our major revenue comes from the government towards the talent we engage in
developing and delivering IT education. It means we literally bill our
talents. Hence managing these talents is critical for sustenance and growth
of our business. Business opportunities in education space are immense and
our growth largely depends on how much we can leverage the Talents in
innovating newer technology based education delivery.
During 2011-12, Human Resource has played a key role in restructuring the
leadership team to focus on specific business verticals, rationalizing
Talent profile and strength, reorganized business alignment to optimize our
talent resources and thereby significant reduction in Talent cost. We have
strengthened our Performance Management Process to bring in more
transparency and effectiveness, KRA workshop conducted across for better
result orientation, grade rationalization exercise done to bring in uniform
structure, role clarity, growth path and standardization of levels
internally and externally. All people policies in the organization were
reviewed to set a base to attract retain and nurture the best talents to
meet the growing business demands.
We have plans in place in line with the organizational change envisaged due
to the change in promoter and management. The total employees strength of
Everonn Group as on 31st March 2012 were around 9400 including ICT project
staff around 8150.
For and on Behalf of the Board
Susha John Rakesh Sharma
Whole-time Director Director
Date : 13th August 2012