For the complete report, get in touch with us at : info@netscribes.com The report begins with a fact sheet containing basic facts about the company such as contact details, latest revenue, and key competitors among others. This is accompanied by a brief description about the company’s line of business, geographic reach, types of educational solutions, major investors, and other characteristics. The next section provides a comprehensive list of all the clients of K12 Techno Services across various regions inIndiaalong with its headquarters. The products and services section talks about the various services provided by K12 Techno Services to schools. The key people section illustrates information about the company’s management personnel including details such as names, designation, educational qualifications, professional experiences, memberships of boards etc. It also provides an insight into shareholder details and ownership structure. Through SWOT analysis, the report highlights key internal factors that give the company an advantage or disadvantage over its peers along with key external factors prevailing in the industry that may have a favorable or unfavorable impact on the company’s operations. The report also covers the financial profile of the company including the balance sheet, profit and loss a/c and key financial ratios depicting the company’s overall financial performance for the given financial year/s. Industry Analysis provides top level understanding of the K12 education sector inIndiaincluding market size and growth along with the market segmentation. The competitive landscape section identifies key players of the industry drawing comparisons on parameters such as financial performance, service offerings along with brief descriptions about their line of businesses and operations. The company has also been benchmarked against its main competitors’ revenue and profit, number of stores and geographic presence. The report concludes with a section on the recent news regarding the company, which lists down all the highlights of K12 Techno Services over the last three years.

1. K12 Techno Services Pvt. Ltd.
February 2013

2. Executive Summary
• K12 Techno Services Pvt. Ltd. (K12 Techno Services) is a customized education service provider operating in
Company Andhra Pradesh
Description • It provides specialized education services to ‐‐ schools, ‐‐ junior colleges and over ‐‐ societies in the state
Key Products and • It offers comprehensive range of cost effective education solutions to schools, which includes managing
Services academic, financial and strategic responsibilities
• The company’s ‐‐ is one of its major strengths; however, its ‐‐ is one of the key areas of concern
• The company can reap significant benefits from the strong push towards the growth of the K‐12 sector by
SWOT Analysis the Government of India
• However, the dominance of the public sector may have an adverse affect on the growth prospects of the
organization
• K12 Techno Services Pvt. Ltd. generated total revenues of INR ‐‐ mn in the fiscal year FY 2012 registering a
y‐o‐y increase of ‐‐ per cent. It earned a net ‐‐ of INR ‐‐ mn in FY 2012 as compared to a net ‐‐ of INR ‐‐mn in
FY 2011
Financial Profile
• The financial profile of the company includes the balance sheet and profit and loss account for FY 2012 and
2011 and the key ratios depicting the key financial figures for FY 2012 and 2011, giving an insight into the
company's financial performance
• K‐12 market in India was estimated at INR ‐‐ bn in 2011 and is expected to grow at a CAGR of ‐‐ per cent to
Industry Analysis reach INR 2200 bn by 2015
• K‐12 market has a ‐‐% share in the private education sector
Competitive
• Key competitors for the company can be enlisted as Company A and Company B
Landscape
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3. Contents
Executive Summary
Factsheet
Clientele
Products & Services
Key People
SWOT Analysis
K12 Techno Services Pvt. Ltd. Financial Profile
Industry Analysis
Competitive Landscape
Competitive Benchmarking
Recent News
Appendix
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4. Factsheet
Basic Information Brief Description
• K12 Techno Services Pvt. Ltd. (K12 Techno Services) is
Industry
headquartered in Secunderabad, and is a customized education
service provider operating in Andhra Pradesh
 It provides specialized education services to ‐‐ schools, ‐‐ junior colleges
Corporate Address and over ‐‐ societies in the state
• Customized education solutions provided by the company
include:
Tel No.
• Firm 1 and Firm 2 are investors in the company
E
Fax No.
PL
Website
Year of Incorporation
Ownership
Revenue SA M
Fiscal Year End
Auditor
Key Competitors
4

5. Clientele – India
District Area Client
District 1
E
District 2
MPL
District 3
SA
District 4
District 5
5

6. Products & Services
K12 Techno Services Pvt. Ltd.
Service 1 Service 2
LE
• Point 1
MP • Point 1
A
• Point 2
S
• Point 2
• Point 3
• Point 3
6

7. Financial Profile
Financial Snapshot Profit & Loss Statement
Total Income Net Profit/Loss Particulars 2011 2012
INR mn
500 I2 Income from Operations
400 I1 Total Income
300
E
200 Expenditure (below)
100
0
NI1 NI2
P L Operating expenses
M
‐100
Interest Expenses
SA
2011 2012
Depreciation
Financial Summary
• The company incurred a net ‐‐of INR ‐‐ mn in FY 2012 from a net Total Expenditure
‐‐ of INR ‐‐ in FY 2011
AMPLE
Operating IncomeEBIT
• Total income of the company increased by ‐‐ per cent y‐o‐y to
S
reach INR ‐‐9 mn in FY 2012
• The company’s total expenditure increased by ‐ per cent y‐o‐y
reaching INR ‐‐ mn in FY 2012
• The company earned an operating profit (EBIT) of INR ‐‐ mn in FY
Profit/(Loss) before Tax
Profit/(Loss) after Tax
2012
Note: All figures are in INR and are for Financial year ending 31st March
7

8. Ratio Analysis
Key Ratios Key Ratio Analysis
y‐o‐y change • The company’s operating margin increased by ‐‐ percentage
Particulars 2012 2011
(2012‐11) points y‐o‐y reaching ‐‐ per cent in FY 2012; the increase could
Profitability Ratios be attributed to the management’s increasing emphasis on
improving profitability by exercising inefficient cost management
Operating Margin
initiatives compared to that of the previous year
Net Margin
Profit Before Tax Margin • The return on equity increased by ‐‐ percentage points y‐o‐y
Return on Equity reaching ‐‐ per cent in FY 2012 indicating the company’s ability
Return on Capital Employed to use the reinvested earnings to generate additional profits
Return on Working Capital • Current ratio of the company decreased by ‐‐ per cent y‐o‐y
reaching ‐‐ in FY 2012, indicating poor cash flow management
E
Return on Assets
L
Return on Fixed Assets
• Its cash ratio increased by ‐‐ per cent y‐o‐y to reach ‐‐ in FY 2012,
P
Cost Ratios indicating the company’s ability to pay‐off current obligations
Operating costs (% of Sales) with its most liquid short term assets as compared to the
M
Administration costs (% of Sales) previous fiscal year
A
Interest costs (% of Sales)
• Debt to equity ratio of the company increased by ‐‐ per cent y‐o‐
S
Liquidity Ratios y reaching ‐‐ in FY 2012, indicating that the company is
Current Ratio
leveraging itself which is likely to increase its interest expenses
Cash Ratio
Leverage Ratios • The company’s asset turnover ratio decreased by ‐‐ per cent y‐o‐
y to reach ‐‐ in FY 2012, indicating the company’s inability to
Debt to Equity Ratio
generate sales revenue with its total assets as compared to the
Debt to Capital Ratio
previous fiscal year
Interest Coverage Ratio
Efficiency Ratios • The company’s working capital turnover ratio decreased by ‐‐
Fixed Asset Turnover per cent reaching ‐‐ in FY 2012 indicating that the company is
Asset Turnover
not being able to finance its day‐to‐day operations efficiently
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Source: Netscribes Analysis Improved Decline Note: y‐o‐y change in Profitability and Cost Ratios is represented in percentage points
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9. Industry Analysis
Indian K‐12 Market – Overview K‐12 Market Size & Growth
• The Indian K12 education system consists of 12 years
INR bn
of formal schooling, with the mandatory teaching of
xx% x4
English from class VI to class X x4
x3
• Indian education sector has seen investment by both x2
government and private investors x1
• The government spent approximately ‐‐% of the GDP
E
on education (2007‐12)
L
 The government has given importance to education
through schemes like ‘Sarva Shiksha Abhiyan’ which
ensures free primary education for all students
MP 2011 2012e 2013e 2014e 2015e
SA
– This is of primary importance as 70% of the Indians will at a
working age by 2025 Private Education Market Segmentation
– Allocation has been made for free mid‐day meals as well
• In order to bridge the gap between investments and e% K‐12
d%
demand, the government is keen to adopt the public c% Higher Education
Coaching Institutions
private partnership model b%
Pre Schools
 Human resource development (HRD) ministry, has sought
Vocational Training
expressions of interest from companies in joining the
public‐private partnership (PPP) project to open ‐‐ schools
a%
over the 12th five year plan (2012‐17)
 The 2012 budget pegs an outlay of INR ‐‐ bn in 2012‐13 for
the model schools
2011
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10. Competitive Landscape
Company Name Description
• Company A is a globally diversified education solutions provider reaching out to over ‐‐schools and ‐‐ mn
learners and educators across the world
Company A • It won three prestigious awards
Company B • Company B was incepted in Mar ‐‐ as ‐‐ and is headquartered in ‐‐
• It operates self owned and franchise based centres and currently has ‐‐ existing centres all over India
• Various business offerings from Company B include K‐12 solutions, ERP services, corporate training services,
staffing solution services, database maintenance services, consultancy services
SAMPLE
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11. Competitive Landscape (2/2)
Competitive Scenario
K12 Techno
Company Name Company A Company B
Services
Financial Information (INR mn – FY 2012)
Total Revenue
Net Profit/(loss)
Number of Schools (India)
Tie Ups With Schools
Geographic Presence (India)
North
South
East
West
SAMPLE
H: High; L: Low; M: Medium  Present  Not Present
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12. Competitive Benchmarking
Key Financial Ratios – FY 20‐‐ (1/2)
% Operating Margin Net Margin
B1
20 • K12 recorded an operating margin of ‐‐ per cent, lower than
B2 that of both A and B which recorded operating margin of ‐‐ and
10
‐‐ per cent respectively
0 • It recorded a net margin of ‐‐ per cent, higher than that of A
x1 x2 A1 A2 which recorded a ‐‐ net margin but lower than B which
‐10
recorded net margin of ‐‐
E
K12 Company A Company B
PL
% Return on Equity ROCE
B4
M
10
SA
B3 • The company recorded return on equity (ROE) of ‐‐ per cent,
5
lower than that of A and B which recorded ROE of ‐‐ and ‐‐ per
0 cent respectively
A3 A4 • It recorded return on capital employed (ROCE) of ‐‐ per cent,
‐5 x3 x4
lower than that of both A and B which recorded ROCE of ‐‐ and ‐
K12 Company A Company B ‐ per cent respectively
% Operating costs
150
x5 A5
100 • The company recorded operating costs (% of Sales) of ‐‐per
A6
cent, higher than that of both A and B which recorded
50 operating costs of ‐‐ and ‐‐ per cent respectively
0
K12 Company A Company B
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13. Appendix
Key Ratio Definitions
Operating Margin (Operating Income/Revenues)*100 Measures company’s pricing strategy and operating efficiency
Net Margin (Net Profit / Revenues) *100 Indicates the proportion of total revenues the company keeps as earnings
Profit Before Tax Margin (Income Before Tax / Revenues *100 Measures pre‐tax income over revenues
Return on Equity (ROE) (Net Income / Shareholders Equity)*100 Assesses a company's ability to generate profits with the shareholders’ funds
Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100 Indicates efficiency and profitability of a company's capital investments
Return on Working Capital (EBIT / Working Capital) *100 Measures company’s profitability over its working capital
Return on Assets (EBIT / Total Assets)*100 Indicates the company’s profitability relative to its total assets
Measures management’s efficiency of using the company’s fixed assets to
Return on Fixed Assets (EBIT / Fixed Assets) *100
generate earnings
Operating Costs (% of Sales) (Operating Expenses / Sales) *100 Measures proportion of operating costs incurred for generating revenues
Administration Costs (% of Sales) (Administrative Expenses / Sales) *100 Measures proportion of administration costs incurred for generating revenues
Interest Costs (% of Sales) (Interest Expenses / Sales) *100 Measures proportion of Interest costs incurred for generating revenues
Current Ratio Current Assets / Current Liabilities Current Ratio measures a company's ability to pay its short‐term obligations
{(Cash & Bank Balance + Marketable Measures a company’s ability to pay off current obligations through most liquid
Cash Ratio
Securities) / Current Liabilities)} short‐term assets
Debt to Equity Total Liabilities / Shareholders Equity Indicates the proportion of equity and debt the company uses to finance its assets
{Total Debt / (Shareholders Equity + Total
Debt to Capital Ratio Evaluates the proportion of debt and equity in a company’s capital structure
Debt)}
Interest Coverage Ratio EBIT / Interest Expense Determines the company's ability to pay interest on outstanding debt
Fixed Asset Turnover Sales / Fixed Assets Indicates how efficiently the company’s fixed assets are used to generate revenues
Asset Turnover Sales / Total Assets Indicates how efficiently total assets are used to generate revenues
Current Asset Turnover Sales / Current Assets Indicates how efficiently current assets are used to generate revenues
Working Capital Turnover Sales / Working Capital Indicates how efficiently working capital is used to generate revenues
Capital Employed Turnover Sales / (Shareholders Equity + Total Debt) Indicates how efficiently equity is used to generate revenues
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14. Thank you for the attention
K12 Techno Services Pvt. Ltd. is a part of Netscribes’ Education Company Profile Series.
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