2 0 A U G A U G 1 2. EduTrack. F o r t n i g h t l y u p d a t e o n E d u c a t i o n I n d u s t r y

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1 2 0 A U G A U G 1 2 R e s e a r c h 4 I n d i a F o r t n i g h t l y u p d a t e o n E d u c a t i o n I n d u s t r y In The Spotlight Contents Brilliant Tutorials changes hands The Chennai-headquartered tutorial chain, one of the most reputed and among the oldest, has just seen a chartered accountant R Raghunandan staking claim to 99% shareholding after he converted loans extended to the troubled company into equity. Ten days ago, he issued a public caution notice about acquisition of the shares originally held by Vasanti Neelakantan (part of the original promoters of the company) in Brilliant Tutorials Pvt. Ltd. There is one other shareholder Shyam Nagarajan (who is a director of the company). The day-to-day operations across the 32 centres of Brilliant have come to a complete halt. Brilliant had an unimpeachable track record on repayment of loans till two years ago. But trouble had already set in when the company diversified into software development more than five years ago. Firstware Software Solution was created to ride the IT wave, but it folded up in a few years, pulling Brilliant down in the process. Brilliant, which tutored more than 30,000 students annually, had received investment proposals from investors like Sequoia Capital in the past. More recently, TutorVista, a Pearson company, had approached with a buyout proposal but did not find favour with the founder family. News of the fortnight 1 Investment Activity 2 News and Policy Update 3 Corporate Update 4 Stock Market Update 5 Peer Benchmarking 6 About Four-S Services 7 About Research4India Research4India is the research services arm of Four-S Services Pvt Ltd. Here we provide regular research reports on key sectors of the Indian economy, and large unlisted companies in these sectors. These reports will be available on our upcoming site as well as from leading international research sellers like Thomson Reuters, Bloomberg, Research and Markets, CapitalIQ etc. Research4India is the research services arm of Four-S Services Pvt Ltd, a leading provider of high-end research, financial consulting and Investment banking services. For subscription / custom queries, please contact Seema Shukla at seema@four-s.com

2 In $mn In $ mn Investment Activity PE Deals in 2012* Date Investor(s) Target Stake (%) Amount ($Mn) 16-Aug-12 Seedfund LurnQ NA NA 22-Aug-12 Chennai Angels Classle Knowledge Pvt Ltd Business Digital Learning Solutions Stage Early NA 0.5 Higher education Early 28-Aug-12 IndoUS Venture Partners Simplilearn NA NA Supplemental Early Mergers & Acquisitions in 2012* Date Acquirer Target Stake (%) Amount ($Mn) Target's Business 26-Jul-12 HCL Infosystems Edurix 100% NA Content development 1-Aug-12 Birla Shloka Edutech Ltd Ojus Healthcare Pvt Ltd 51% NA e-governance & healthcare solutions 22-Aug-12 Everonn Education Limited Centum Learning Limited NA NA Vocational/Skills Development PE Investments Investment Amount (in $mn) No. of Deals M&A Deals Total Transaction Value (in $mn) No. of Deals *Few Latest Deals have been highlighted Research4India 2

3 News and Policy Update Lok Sabha passes bill for AIIMS-like institutes in states The Lok Sabha passed a bill to set up more AIIMS-like institutes in states. The All India Institute of Medical Sciences (Amendment) Bill, 2012, replaces an ordinance which allowed six AIIMS-like institutes to become operational from September 15. The six institutes were approved for Patna in Bihar, Raipur in Chhattisgarh, Bhopal in Madhya Pradesh, Bhubaneswar in Orissa, Jodhpur in Rajasthan and Rishikesh in Uttarakhand. The bill also gives the central government authority to establish more AIIMS-like institutes. Two key related bills on higher education delinked Two key related bills on reforms in higher education have been delinked to ensure that the delay in passage of one of them does not affect the other. The move comes in wake of the inordinate delay in the passage of the Educational Tribunals Bill, 2010, which seeks to establish educational tribunals at the national and state levels to expedite adjudication of disputes in the education sector. This Bill will be delinked from the Unfair Practices in Technical Education Institutions, Medical Educational institutions and Universities Bill, The Educational Tribunal Bill was passed by Lok Sabha in 2010 but has been struck in the Rajya Sabha since then due to lack of consensus among political parties. The HRD Ministry officials said Unfair Practices Bill will be amended so that adjudication of penalties is delinked from the Educational Tribunal Bill, 2010, and restored to civil courts. IAF-Amity signs MoU for higher education at lower cost for air force officials A Memorandum of Understanding (MoU) was signed between the Indian Air Force and Amity University, Uttar Pradesh to provide education facilities to the nominated Indian Air force personnel at all Amity University Campuses on Thursday. As per the agreement Amity University will reserve specific seats in nominated courses for the IAF personnel. Especially for Indian Air force officials Amity will exclusively provide 50% discount on all these courses. Google declares LPU among top five most searched Universities on Internet in India In accordance to the latest Google study termed as Students on the Web ; LPU has been declared as one among the top five most searched private Universities on internet, in the whole of India. This study was conducted as part of annual surveys by Google. The study was compiled by combining the Google search query patterns and an offline research conducted by TNS Australia- a part of the global market and social research organization, on behalf of Google India. The research has also revealed that India now ranks second after the US in the absolute volume of search queries related to education, on Google search. GMAT gaining acceptance in India GMAT score, accepted by more than 5,400 graduate programmes worldwide for admission to various management courses is fast gaining acceptance in India. The number of B-schools accepting the GMAT score has grown to 82 in India in the last two-and-half years for admission to over 170 programmes. The GMAT exam, administered year-round at 19 test centres in India has around 30,000 aspirants taking the exam annually. Aptech to conduct CMAT from Sept 27-Oct1 Aptech will be conducting the Common Management Admission Test (CMAT) mandated Research4India 3

4 by the All India Council for Technical Education (AICTE) from September 27 to October 1. Banking on the technical superiority and a glitch-free process witnessed last year, the project duration has been reduced from nine days to five days this time around. The number of cities, where the examination will be conducted, has been increased to 64 cities. Corporate Update HDFC's education foray to include skill upgradation HDFC is planning to have two skill upgradation centres as part of its education foray in Hyderabad and Ahmedabad. These centres will train people for the financial services, back office and hospitality businesses. The group has already announced its plans for a Kindergarten to class 10th (K-10) and Kindergarten to class 12th (K-12) institutions in Bangalore and Delhi respectively. While these two forays will be started from scratch beginning with land acquisition, the skill development centres will start work faster as they will be in rented premises. Bharti group exits education business Bharti group has exited its education business, selling group company Centum Learning to Everonn Education. The Bharti Family Office, which manages investments made by the promoters of the group in their personal capacity, will receive a combination of cash and equity shares in Everonn. The deal size was not disclosed. With this acquisition, Everonn will expand its reach in the Indian training space by adding corporate training, the flagship product of Centum, as a new vertical. Other business segments of Centum (skill development, employment generation, professional education & training) will integrate with the existing verticals of Everonn Jointeca Education Solutions ` 53.5mn IPO The public issue for 3.56mn shares of Jointeca Education Solutions closed on August 21 st. Jointeca offers educational ERP solutions through its product GuruSeva and its business is concentrated mainly in the Northern Region of India. Company provides services to all kinds of educational institutions and also offers online education through website portal Equity shares of Jointeca will be listed on the BSE SME platform. IndoUS Venture Partners invests in Simplilearn.com IndoUS Venture Partners (IUVP) has injected an undisclosed amount of funding in Bangalore based startup Simplilearn.com, which provides online education and training for professional certification courses. The company will use the funding to double its courses and workforce by the end of the year. The three-year-old firm, which has trained over 35,000 aspirants across 135 countries, delivers training through a unique online and offline delivery platform. At present, the company conducts over 300 classroom trainings per month. This involves customised classroom training, customer support and mentoring via online chat, and phone. Noida-based e-learning solutions startup iprof launches digital library. Two-year-old tablet education firm iprof Learning Solutions India Pvt Ltd has launched a digital library, available at thedigilibrary.com. The library features interactive content and will offer education materials for competitive exams like engineering entrance tests, CAT, IAS, AIPMT and CA. In the coming months, it will also cater to K-12 education segment. Research4India 4

5 Stock Market Update Share Price Performance As on 31st Aug 2012 Market Cap Price Percentage Price Change (`mn) (In `) 1 Week 1M 3M 6M 12M Core Education 33, % 2.4% 2.6% 10.0% 1.4% Educomp 20, % -9.7% 61.6% 2.6% 9.8% Navneet 18, % 35.3% 39.3% 34.8% 19.2% Tree House 7, % 4.1% 18.4% 11.7% 86.0% Zee Learn 6, % -15.6% 7.6% 66.0% 22.4% NIIT Ltd 5, % -16.4% -26.2% -35.2% -34.3% MT Educare 3, % 5.9% 5.4% - - Everonn 3, % 5.3% -19.9% -46.6% -50.4% Aptech 3, % -5.0% -4.3% -21.7% -43.9% Career Point 2, % -3.0% -9.0% -37.8% -48.4% Compucom % -2.6% 6.4% -19.9% -26.4% Edserv % 4.5% -0.6% -42.5% -77.9% Jetking % -4.5% 0.7% -27.7% - Financial Benchmarking Quarterly Results Q4 FY 12, ending 31 st March, 2012 Figures in Rs mn Year Ending Fiscal year Quarter Revenues EBITDA PAT Current Last Year % growth Current Last Year % growth Current Last Year % growth Educomp March Q4 5,136 4,887 5% 1,381 2,052-33% 615 1,457-58% NIIT Ltd March Q1 1,999 3,148-36% % % Core Education March Q4 4,819 2,977 62% 1,678 1,200 40% % Navneet March Q4 1, % % % Everonn March Q ,339-33% NA NA Aptech March Q % % % Edserv March Q % NA NA Career Point March Q % % % Compucom March Q % % % Zee Learn March Q % NA NA Tree House March Q Jetking March Q % % % Trailing Twelve Months (TTM) Figures in Rs.`mn Figures in Rs mn TTM Quarter Revenues EBITDA PAT % EBITDA % PAT TTM Y0 TTM Y-1 % growth TTM Y0 TTM Y-1 % growth TTM Y0 TTM Y-1 % growth margin margin Educomp Q4 FY12 14,913 13,509 10% 4,132 5,443-24% 1,371 3,405-60% 28% 9% NIIT Ltd Q1 FY13 12,883 12,743 1% 1,282 1,613-21% 1, % 10% 8% Core Education Q4 FY12 16,379 10,912 50% 6,284 3,936 60% 3,231 2,250 44% 38% 20% Navneet Q4 FY12 6,086 5,485 11% 1,403 1,263 11% % 23% 13% Everonn Q4 FY12 3,596 4,247-15% 351 1,555-77% NA 10% -19% Aptech Q1 FY13 1,666 1,920-13% % % 13% 16% Edserv Q4 FY ,218-30% NA NA -10% -7% Career Point Q4 FY % % % 36% 37% Compucom Q4 FY % % % 56% 16% Zee Learn Q4 FY % NA NA -40% -45% Tree House Q4 FY % % % 54% 28% Jetking Q4 FY % % % 14% 7% MT Educare Q4 FY12 1,272 1,051 21% % % 18% 10% Figures in Rs.`mn Research4India 5

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