Tree House Education & Accessories Ltd

Tree House Education & Accessories Ltd

Tree House Education & Accessories Ltd provides education and related services including leasing of education infrastructure. In its pre-schools business the company has gone through a change in its overall business model from self operated centres to franchisee centres in FY 2016-17. The pre-schools are operated under the brand names of 'Tree House' 'Brainwork' and 'Global Champs'. Its pre-schools serve students primarily in the age group of 1.5 to 6 years.Its pre-schools offer standardized services and teaching methodologies. It offers playgroup nursery junior kindergarten and senior kindergarten courses. The company provides continuous training to all its pre-school teachers on teaching methodologies and early child care to keep abreast with the changes in teaching methods and student needs. The company's pre-school network is largely concentrated in the states of Maharashtra Gujarat Karnataka Rajasthan West Bengal and Andhra Pradesh.Tree House Education & Accessories also provides a wide variety of educational services to K-12 schools which include designing curriculum and providing teaching aids supplying methods for imparting education organizing extra- curricular activities for students and teacher training.Tree House Education & Accessories Ltd was originally incorporated on July 10 2006 as a private limited company with the name Tree House Education & Accessories Pvt Ltd. In the year 2007 the company acquired the proprietorship firm Tree House through a slump sale agreement dated April 1 2007. Also they launched first franchisee pre-school as a part of their expansion plans.In the year 2008 the company launched teacher training program. They started providing educational services and infrastructure facilities to K-12 schools. Also they started day care centers under the name 'Muskaan'. In December 2010 the company was converted into public limited company and the name was changed to Tree House Education & Accessories Ltd.As of June 15 2011 the company has 223 pre-schools under the brand name 'Tree House' in which 149 schools are operated by the company or self-operated and the rest are operated through their franchisees. In recent years the company has branched into providing educational services to K-12 schools. The company intends to provide educational services to additional seven K-12 schools based in Jaipur Jhunjhunu Vadodara Pune and such other cities that will be identified by the K-12 school operators by Fiscal 2013. For such purpose they have entered into supplemental agreements with certain K-12 school operators to provide educational services to four K-12 schools. The company entered the capital market with an Initial Public Offering (IPO) which opened on August 10 2011 where the company offered 8432189 shares. The Rs 10/- shares were offered at Rs 135/- (discount of Rs 6/- was offered to the retail investors). The issue was oversubscribed and the company raised a total amount of Rs 112 crores. The company's shares were listed at Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE) on August 26 2011.Before the IPO the company also placed 1264154 equity shares as a Pre IPO Placement at a price of Rs 150/- each to various investors.In 2012 the company signed a Non-Binding Memorandum of Understanding with MT Educare Limited. In 2013 the company won the Best PE/VC-backed Education Company Award at VCCircle Annual Awards 2013'. In 2014 the company's board approves MOU to monetize school land in Vadodara. The company also inaugurated its Global Champs preschool center at Dharavi at the hands of Shri Deepak Parekh Chairman HDFC Limited.During the financial year ended 31 March 2014 the company opened 86 preschools. During the year under review the company introduced Day Care services at some pre-schools and also entered into tie ups with large employers in the IT ITES banking and consulting space to provide Day Care services for their employees. During the year under review Tree House tied up with SNDT University to collaborate on its teacher training programme. During the year under review the company opened 5 pre-school centres in Mumbai under 'Global Champs' brand to provide low cost quality pre-primary education. In June 2013 Tree House Education and Accessories gained ownership of the Brainworks Learning Systems Private Limited along with all assets.During the year under review 1204800 warrants of the company were converted into 1204800 Equity Shares and were allotted to the promoters of the company. All the warrants converted into equity shares are listed into respective Stock Exchanges except 50900 Equity Shares for which Listing Approval is sought by the Company from BSE Limited National Stock Exchange of India Limited (NSE) and MCX Stock Exchange limited (MCX-SX)During the financial year ended 31 March 2015 the company opened 119 self operated pre-school and 3 franchisees of pre-schools. The new centres were opened at Agra Ajmer Allahabad Baripada Beawar Bhillai Bikaner Burdhwan Cuttack Dewas Ghaziabad Gopalgunj Gorakhpur Gwalior Hajipur Hazaribagh Jhansi Kochi Kota Kozhikode Pen Ratlam Trivandrum Ujjain and Vishakhapatnam. During the year under review the company expanded its Day Care services to 150 centres across the country.During the year under review the company raised funds through issue and allotment of 4545454 Equity Shares at issue price of Rs 440/- per equity share aggregating to Rs 1999999760/- to Qualified Institutional Buyers through Qualified Institutions Placement. The object of the issue is for expansion of companies' business activities.During the financial year ended 31 March 2016 the company opened 116 self-operated pre-school centres and 2 franchisees of pre-schools. Also as part of restructuring 85 nos. of self-operated pre-school centres were closed down thus effectively only 536 preschool self-operated centres were operational as on 31 March 2016.The company has gone through a change in its overall business model from self operated centres to franchisee centres in FY 2016-17. This entire shift in the dynamics of the business brought a complete change in the financial results leading to heavy one time write off of Assets in the balance sheet of the company since majority of the centres were converted to franchisee or discontinued operations. Out of the total 542 centers operated by the company till March 312016 the company has converted 140 centers into franchise centers and had closed 222 centers as on March 312017. During the financial year ended 31 March 2018 the company commenced its services to K-12 schools which were discontinued due to lack of manpower. During the year under review the company defaulted in repayment of Loans to Financial Institutions. Due to lack of financial resources the company was not able to repay its loans to financial Institutions. During the year under review SEBI vide interim order dated 07 March 2018 restrained the Company Mr. Rajesh Bhatia Mrs. Geeta Bhatia Mr. Giridharilal Bhatia Mr. Vishal Shah & Mr. Hiten Trivedi from accessing the securities market and thereby trading in securities in whatsoever manner either directly or indirectly. The company is in the process of filing an appeal.