Profile of the company
Global Education was established in year 2011 as the service provider for educational support and related activities. Currently, the company is engaged in providing professional training and skill developments to corporates, teachers and students for human capital development and other various business support services to education institutions, students, corporates and banks. The company’s clients primarily include universities, schools and colleges wherein it provides training to teachers, principals, students and parents.
The company provides training to college students which help them to enhance their technical, personality development and life skills i.e. thinking, social, emotional through visual medium and to professors wherein it provides induction and orientation program for new faculty and build excellence through management and leadership skills etc. The company also provides training to top and middle level managers, supervisors and executives of various corporates. The company is the premier customer focused training academy in India and are providing real time training solutions in the complex changing scenario of work place.
The company has a dedicated and talented team of professionals that comprise of experienced personnel in the field of training and education. The company is always committed to fulfill the requirements of its clientele according to their needs. In order to meet these requirements, the company has adapted to ISO 9001:2008 certification for Quality management system to provide skill improvement training services.
Proceed is being used to:
India is the world's largest democracy in terms of population, with approximately 1.25 trillion people, and the world‘s fourth largest economy in terms of Gross Domestic Product (GDP), after China, the European Union and the United States of America, with an estimated GDP (by purchasing powering parity valuation) of approximately $8.03 trillion. India’s education industry is ever-growing industry with a vast growth prospect. The sector is huge with a population of 1.13 billion and almost fifty percent of country’s population being youth. As per the latest census 50% of India's current population is in 0 to 25 years of age bracket, while over 65% of the population is below the age of 35 years. India has around 367 universities, 18,000 colleges, more than 1.4 million schools with over 227 million students enrolled and more than 36,000 higher education institutes.
While, the government is taking many measures to improve the quality of education, the sector is changing rapidly with more private players entering the field. As per estimates, last fiscal the education market was worth about $100 billion and is expected to reach $116.4 billion in FY 2016-17. India has 3rd largest education system globally and spends on education is estimated at 4% of GDP. The country has the largest illiterate population in the world, as the literacy rate of India as per 2011 Population Census is 74.04%, with male literacy rate at 82.14% and female at 65.46%. There is a national organization that plays a key role in developing policies and programmes in the country, called the National Council for Educational Research and Training (NCERT) that prepares a National Curriculum Framework. Each state has its counterpart called the State Council for Educational Research and Training (SCERT). Currently, higher education contributes 59.7 per cent of the market size, school education 38.1 per cent, pre-school segment 1.6 per cent, and technology and multi-media the remaining 0.6 per cent.
Technical Education plays a vital role in human resource development of the country by creating skilled manpower, enhancing industrial productivity and improving the quality of life of its people. It‘s a very vast field covering programmes in engineering, technology, management, architecture, town planning, pharmacy, applied arts & crafts, hotel management and catering technology.
Pros and strengths
Established brand and image: The company is engaged in providing services to its clients and over the years, the company has established itself as a reliable brand in the state of Maharashtra wherein its clients trust it for its quality, consistency and continuous performance.
Comprehensive range of service issuing: The company has developed a comprehensive range of service issuing in order to address the varied and expanding requirements of its clients. The company’s service issuing includes catering of the variety of needs of its clients with respective of academic procedures, admission, placements training etc. The company set up a network of training centers operating under its brand across India by identifying potential of the location, it mobilizes and enrolls trainees and provide training materials and train them to enhance the skill of trainees. The company’s comprehensive range of Issuing helps its clients achieve their business objectives and enable it to obtain additional business from existing clients as well as address a larger base of potential new clients.
Training and Development: The company’s strengths lie in continuously updating and upgrading its workforce by virtue of training & development so that they can train the customers to acquire new skills, sharpen existing ones, perform better, increase productivity and be better leaders in their work place.
Risks and concerns
High working capital requirements: The company’s business requires significant amount of working capital and major portion of its working capital is utilized towards debtors and inventories. It has been sanctioned working capital of Rs 50 lakh as on October 30, 2016 from the existing bankers. The company’s growing scale and expansion, if any, may result in increase in the quantum of current assets. Its inability to maintain sufficient cash flow, credit facility and other sourcing of funding, in a timely manner, or at all, to meet the requirement of working capital or pay out debts, could adversely affect its financial condition and result of its operations. Further, it has high Debtors which may result in a high risk in case of non-payment by these Debtors. In the event it is not able to recover its dues from its Debtors, the company may not be able to maintain its Sales and Services level and thus adversely affecting its financial health.
Stiff competition: Competition in the education sector as a whole, as well as in each of its business segments, is generally fragmented. The company faces significant competition from local or regional players in the business segments and geographical markets in which it operates, and its success depends on its ability to ensure the continued quality, relevance and innovation of its services and products. In its integrated business, marketing and sales services for corporates (where its services in this segment include event management, marketing support, customer engagement, managed manpower and training services), the company faces competition including from corporates who may undertake to recruit and train their own staff as well as conducting inhouse event management activities. Some of its competitors may have better financial and other resources than it has, or may be able to develop more effective advertisement and marketing campaigns or better priced or more innovative courses, services and delivery platforms than it, which may enable them to compete against it more effectively for future enrolments. These competitive factors may force it to reduce its fees and/or increase its spend in order to continue to attract enrolments for its training services and to retain and attract faculty, and to pursue new market opportunities.
Dependent on key managerial personnel: The company’s Directors and key managerial personnel collectively have vast experience in the industry and are difficult to replace. They provide expertise, which enables it to make well informed decisions in relation to its business and its future prospects. The company’s success largely depends on the continued services and performance of its management and other key personnel. The loss of service of its Directors and other senior management could seriously impair the ability to continue to manage and expand the business efficiently. Also, the loss of any of the management or other key personnel may adversely affect the operations, finances and profitability of the company. Any failure or inability of the company to efficiently retain and manage its human resources would adversely affect its ability expand its business.
Global Education provide a comprehensive range of services also to clients such as coaching assistance for IELTS, TOEFL and GRE, advice for university search & selection, range of support services in relation to obtaining education loans, Visa, Pre-departure briefing, Forex, Travel and health insurance, Academic pathway planning, Scholarship, Placement, etc in education sector. On the concern side, the company’s operations are subject to high working capital requirements. Also, the company operates in a significantly fragmented and competitive market in each of its business segments and any failure on its part to compete effectively may adversely affect its business.
On performance front, the company’s total revenue increased by 171.02% to Rs 13,48,98,181 for the financial year 2016 from Rs 497,73,496 for the financial year 2015, primarily due to increase in operation activities of the company. The company’s finance cost was Rs 11,83,144 for the financial year ended March 31, 2016 mainly consist of Interest on working capital loan, term loan and finance charges. Finance Cost was 0.88% of total Income for the financial year ended March 31, 2016 as compare to 1.52% for FY15. The company’s net profit after tax stood at Rs 2,81,94,918 in FY16 as compared to Rs 108,76,511 in FY15. From the shareholders’ perspective, the company’s Return on Net worth (RONW) ratio has increased to 53.44% in FY16 as compared to 44.27% in FY15, indicating that it has utilized the shareholder’s investment well to create returns for them.
The company intends to leverage its domain expertise, understanding of its target industry and close relationship with its clients to expand the scope of current services as well as provide services in new areas and businesses. The company will continue to build its account management teams working within client organizations, to deepen relationships with its clients and to identify new business opportunities. The company’s growth in other states in the country can fetch it new business expansion and opportunities. Presently, the company’s presence is in the state of Maharashtra, Madhya Pradesh and Tamil Nadu. Going forward, the company intends to establish its presence in few locations in the country. The company’s emphasis is on scaling up of its operations in other markets which will provide it with attractive opportunities to grow its client base and revenues.