1

Financial Statements

For

Aptech Ltd.

By

12058 – Megha Thakkar

12098 – Rahul Dave

12102 – Ramandeep Virk

12106 – Renzil D’cruz

12107 – Rishabh Mehta

12136 – Sonia Naik

Submitted to

Prof.L.N.Chopde

2

INDEX

Sr

No. Topic

Page

No.

1 Introduction 3

2 Company Achievement 5

3 Short Introduction of Financial

Statement 5

4 Balance Sheet 7

5 Graph & Analysis 8

6 Profit & Loss Account 13

7 Graph & Analysis 15

8 Conclusion 17

3

Aptech Ltd

Aptech commenced its education and training business in 1986 and has globally

trained over 6.4 million students. Aptech is an ISO 9001:2000 organization and the

first IT Training and Education company to get this certification for Education

Support Services in 1993.

Aptech has presence in more than 40+ emerging countries through its two main

streams of businesses – Individual training and Enterprise Business. As a leader in

career education, it has over 1305 centres of learning across the world.

Under Individual Training, Aptech offers career and professional training through its

Aptech Computer Education, Arena Animation & Maya Academy of Advanced

Cinematic (both in Animation & Multimedia), Aptech Hardware & Networking

Academy, Aptech Aviation & Hospitality Academy and Aptech English Learning

Academy brands.

Enterprise business includes Content Development (Aptech Learning Services),

Training and Assessment Solutions for Corporate & Institutions (Aptech Training

Solutions, Aptech Assessment & Testing Solutions).

Aptech Limited (BSE: 532475, NSE: APTECHT) is a global retail and corporate

training company with headquarters in Mumbai, India. The company commenced its

IT training business in 1986 and has trained over 5 million students.

In 1993, Aptech became the first IT training organization in Asia to receive the ISO

9001 quality certification for Education Support Services. The company has grown

and diversified into various education-related businesses and its stock is listed on the

BSE and the NSE.

It was also featured in the '2009 Global Top 20 IT Training organizations' list

Competitors

There are many online education organizations in India. Of those, Educomp Solutions,

EdServ Softsystems Limited, Everonn Education and NIIT are Aptech's main

competitors.

4

Corporate social responsibility

Aptech is associated with "Project Saraswati" for IT Literacy and "Project Srishti" for

Multimedia Training. Under these two projects, Aptech provides free-of-cost training

to underprivileged children at various Aptech and Arena centres.

Aptech’s N-Power Hardware & Networking training brand, meanwhile, conducts

training for deaf children. Arena organizes Graphic Designing and Personality

Development programs for underprivileged children.

Aptech Computer Education, the flagship brand of Aptech Ltd., has entered into an

alliance with Middlesex University to provide advance entry to students doing Aptech

Certified Computer Professional (ACCP) course in the final year of B.Sc. (Honours) at

their London, Dubai or Mauritius Campus.

Retail Business

IT training & education Animation & multimedia training

High-end 3D animation &VFX education Aviation, Hospitality

Travel & Tourism

5

Hardware & Networking education International IT & multimedia training

English language training

Corporate Business

Corporate training & training outsourcing Assessment solutions for

universities & corporate

Customised content development

6

Aptech’s rapid growth has led the company to mark several milestones

in India & overseas.

Among the top few are:

IT & Multimedia education pioneer. More than 2 decades of experience in training

(since 1986). Trained over 6.4 million students.

First IT education & training company in Asia to receive the ISO 9001: 2000

quality certifications.

Aptech Learning Services receives two ‘Apex 2010 - Awards for Excellence’.

Aptech Vietnam declared No. 1 IT training provider in Vietnam for 7 consecutive

years.

Among Brand Equity’s Top 50 Most Trusted Service Brands.

Among Forbes Global Best 300 Small Companies worldwide.

Financial Statements

Financial statements include P&L A/c &B/s sheet is prepared to find out

financial status of the organisation.

Financial statements of proprietary organisation include trading A/c, P&L A/c

& B/S. But financial statements of company include P&L statement & B/S.

Financial Statements are to be prepared as per the prescribe format as let down

by revised Schedule VI of the Companies Act.

7

Balance Sheet

Mar ' 12 Mar ' 11 Mar ' 10

Sources of funds

Owner's fund

Equity share capital 48.79 48.77 46.55

Share application money 0.13 0.13 0.14

Preference share capital - - -

Reserves & surplus 216.18 216.48 180.52

Loan funds

Secured loans - - 23.81

Unsecured loans - - -

Total 265.10 265.39 251.01

Uses of funds

Fixed assets

Gross block 46.90 103.60 101.67

Less : revaluation reserve - - -

Less : accumulated

depreciation 18.55 72.75 65.32

Net block 28.35 30.84 36.35

8

Mar ' 12 Mar ' 11 Mar ' 10

Capital work-in-progress 0.15 0.61 0.18

Investments 92.70 152.00 117.49

Net current assets

Current assets, loans &

advances 176.45 135.33 133.27

Less : current liabilities &

provisions 32.56 53.40 36.28

Total net current assets 143.89 81.93 97.00

Miscellaneous expenses not

written - - -

Total 265.10 265.39 251.01

Notes:

Book value of unquoted

investments 92.70 152.00 117.49

Market value of quoted

investments - - -

Contingent liabilities 7.85 17.71 10.46

Number of equity share

outstanding (Lacs) 487.91 487.71 465.50

9

Balance Sheet

The B/S is a statement of financial position of an organisation. It is a statement

of sources & application of funds.

It shows the sources from where the funds are be raised are be raised & the

application where funds are been employed.

It is a statement of assets & liabilities of an organisation.

Owners Fund

When the capital is raised by a firm through issue of common shares are called

equity share capital and generally the equity share holders are the owners of the

business. In the given data we can see that Equity Shares have grown to 0.02%

from the year 2011.

Share application money is the application money received from the shareholders.

It can be seen that it had been same throughout the years 2011 and 2012.

Reserve and Surplus is nothing but amount kept out of profits for future

contingencies. Contingencies mean future losses. Reserve and surplus have

dropped to 0.3% from the year 2011.

Euity share capitalShare application

moneyPreferene share

capitalReserves & surplus

2012 48.79 0.13 0 216.18

2011 48.11 0.13 0 216.48

2010 46.55 0.14 0 180.52

0

50

100

150

200

250

2012

2011

2010

10

Loan Funds

Loans and advances are the loan which is taken from banks or various other

sources.

They are basically two types of loans

Secured loans

Unsecured loans

Secured loans are the loans which are secured or which are given certain

securities.

Unsecured loans are the loans which are not secured i.e. any securities are not

given.

The above data shows that the company has repaid all the loans both secured &

unsecured loans.

Secured loan Unsecured Loan

2012 0 0

2011 0 0

2010 23.81 0

0 0 0 0

23.81

0 0

5

10

15

20

25

30

2012

2011

2010

11

Fixed Assets

Source of funds are basically the total capital employed.

Total capital employed= owners fund + loan funds.

It has been dropped marginally to 0.29% from 2011.

Fixed Assets it is also known as non - current assets as it cannot be converted

into cash. It has been dropped to 2.49% as they have sold one of its machinery.

Capital work in progress is the cost of capital work in progress on that date of

balance sheet. It has been reduced to 0.46% from the year 2011.

Investment is putting money into shares, debentures, govermnent bonds with

the expectation of gain, usually over a longer term. It has been reduced to

59.3% from the year 2011.

Gross blockLess:

revaluationrserve

Less:accumulateddepreciation

Net blockCapital work-in-progress

Investments

2012 46.9 0 18.55 28.35 0.15 92.7

2011 103.6 0 72.75 30.84 0.61 152

2010 101.67 0 65.32 36.35 0.18 117.49

0

20

40

60

80

100

120

140

160

2012

2011

2010

12

Net Current Assets

Net current assets are nothing but current assets, loans and advances- current

liabilities. Current assets are that assets which can easily get converted into

cash.

Current liabilities is nothing but which are to be paid or can become payable in

a short period. It has been increased to 61.96 % from the year 2011.

Current assets,loans & advances

Les: currentliabilities &provisions

Total net currentassets

Miscellaneousexpenses not

written

2012 176.45 32.56 143.89 0

2011 135.33 53.4 81.93 0

2010 133.27 36.28 97 0

0

20

40

60

80

100

120

140

160

180

200

2012

2011

2010

13

Profit & Loss Account

Mar ' 12 Mar ' 11 Mar ' 10

Income

Operating income 90.95 94.15 123.79

Expenses

Material consumed - - -

Manufacturing expenses 28.44 25.52 29.00

Personnel expenses 23.84 24.85 32.93

Selling expenses 7.85 7.29 10.69

Administrative expenses 15.45 19.05 28.00

Expenses capitalised - - -

Cost of sales 75.58 76.72 100.62

Operating profit 15.37 17.43 23.18

Other recurring income 10.25 3.70 3.86

Adjusted PBDIT 25.63 21.13 27.04

Financial expenses 0.27 2.46 3.56

Depreciation 7.04 8.87 12.70

Other write offs - - -

Adjusted PBT 18.32 9.81 10.78

14

Mar ' 12 Mar ' 11 Mar ' 10

Tax charges 0.01 0.47 32.82

Adjusted PAT 18.31 9.34 -22.05

Nonrecurring items -2.10 -2.01 88.78

Other non cash adjustments 2.00 0.56 3.26

Reported net profit 18.20 7.89 70.00

Earnings before appropriation 82.63 79.38 77.12

Equity dividend 17.01 12.19 4.83

Preference dividend - - -

Dividend tax 63.79 1.98 0.80

Retained earnings 1.82 65.21 71.49

15

Operating Income

Operating income has been dropped to 3.2% from the year 2011.

Aptech's business strategy of achieving "Profitable Growth" has continued to

help the Company post good results in FY2011-12.

Profit before Tax (PBT) before exceptional items was Rs 765.73 million in

FY2011-12, representing a growth of 76.3%.

Profit after Tax (PAT) at Rs 760. 38 million was almost 69% higher as

compared to the previous fiscal year.

While Operating Income for the year dropped by 8.6%, the Operating EBITDA

for the year improved by 12.7% over the previous year.

Change in revenue accounting policy for MAAC, closure of Own centres and

increasing competition in the Indian vocational business segment especially IT,

multi-media and animation impacted the revenue

Performance in FY2011-12.

On the positive side, the Company has nearly Rs 1 billion cash in its balance

sheet and zero debt, with the overall exposure to Government business reduced

to single digits.

0

20

40

60

80

100

120

140

Operating Income

2012 90.95

2011 94.15

2010 123.79

2012

2011

2010

16

On the operational side, the Company focused on the International Retail and

Assessment & Testing businesses which delivered positive results. International

revenue (net of China and MAAC) was almost 45% of the total retail revenue.

The Company forayed into the new geographies of Japan, Kyrgyzstan, Malaysia

and Rwanda. The Assessment and Testing business of Aptech successfully

executed the prestigious CMAT 2012 exam for AICTE.

In terms of some of the new initiatives, the Company entered into a partnership

with Hungama Digital Entertainment to target the emerging mobile education

market and also a partnership with TRRAIN foundation to train the retail sector

manpower.

The Company focused on the franchising route and continued to reduce the

emphasis on Own centres.

The Company added 99 more centres taking the total number of centres in India

and abroad (excluding China) to 1046 as of 31st March, 2012.

Aptech continued to carve a niche and receive industry recognition and was

chosen as the 6th most trusted brand in the education category on the basis of

high level of quality, price that the brand commands, popularity, uniqueness of

the product and pride of ownership by Brand Equity, Economic Times, 28th

September, 2011.

17

DIVIDEND

Your Directors are pleased to recommend for your consideration a final.

Dividend of Rs 1.50 per equity share of Rs 10/- for the period ended 31st March,

2012.

An interim dividend of Rs 1.50 per equity share was paid to the shareholders as

approved by the Board of Directors at its meeting held on 20th January, 2012.

With this the total dividend for the year ended 31st March, 2012 will be Rs 3/-

per share (30%).

EMPLOYEES STOCK OPTION SCHEME (ESOS), 2006

Your Company had formulated Employees Stock Option Scheme in 2006 for

the benefit of the employees of the Company and its subsidiaries (including

Non-Executive Directors of the Company).

The said Scheme was approved by the members at the general meeting held on

16th September 2006 and administered by the Remuneration & Compensation

Committee of the Board. Under the said Scheme, 1,81,031 options were

exercised upto the validity of the last phase under the Scheme at an exercise

price of Rs 113/- per equity share, against which 1,81,031 equity shares of the

face value of Rs 10/- each were allotted to the eligible allottees under the

Scheme.

With the final phase, all options granted under the ESOP Scheme 2006 have

been either exercised into corresponding shares by the optionees or have lapsed

as the case may be applicable, and therefore, there are no options whatsoever

outstanding under the Scheme.