Tree House Education & Accessories Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

Provisions and Contingent Liabilities:

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Provisions are not recognized for future operating losses.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre tax
rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase
in the provision due to the passage of time is recognized as interest expense.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be
confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the
Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable
estimate of the obligation cannot be made.

Employee Benefits:

Provident Fund:

Company''s contributions paid / payable to provident fund authorities are recognized in the Statement of Profit and Loss of
the year when the contribution to the fund is due.

Gratuity:

Gratuity is a post-employment benefit and is in the nature of defined benefit plan. The liability recognized in the Balance
Sheet in respect of the gratuity is present value of the defined benefit obligation at the Balance Sheet date less the fair
value of the plan assets, together with adjustments for unrecognized actuarial gains or losses and past service cost. The
defined benefit obligation is calculated at the Balance Sheet date by an independent actuary using the projected unit
credit method.

Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to
the Statement of Profit and Loss in the year in which such gains or losses arise.

Compensated Absences

The employees of the Company are entitled to compensate absences which are non-accumulating in nature. Expenses
on non-accumulating compensated absences are recognized in the year in which the absence occurs.

Foreign Currency Transactions

(a) Initial Recognition:

Transactions in foreign currencies entered into by the company are accounted at the exchange rates prevailing on
the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year
are recognized in the Statement of Profit and Loss.

(b) Measurement of Foreign Currency Items at the Balance Sheet Date:

Foreign currency monetary items restated or retranslated at the closing exchange rates. Non-Monetary items are
reported at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these
transactions are recognized in the Statement of Profit and Loss.

Borrowing Costs

Borrowing costs directly attributable to the acquisition and construction of qualifying asset are capitalized as part of the
cost of such asset up to the date of such asset being ready for its intended use. Other borrowing costs are treated as
revenue expenditure.

Taxes on Income

Tax expense comprises of both current and deferred taxes. The current charge for income taxes is calculated in
accordance with the relevant tax regulations. Deferred taxes reflect the impact of current year timing differences between
taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date.

Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be realized. Deferred tax assets are recognized on
carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty supported by convincing evidence
that such deferred tax assets can be realized against future taxable profits.

Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become
reasonably certain/virtually certain that future taxable income will be available against which such deferred tax assets can
be realized.

Share Issue Expenses

Share issue expenses are adjusted in the same year against the Securities Premium Account as permitted by section 52
of the Companies Act 2013. In case of insufficient balances in the Securities Premium Account, unadjusted share issue
expenses are amortized over a period of 5 years. In case, there arising a securities premium balance subsequently,
unadjusted share issue expenses would not be amortized but will be adjusted against the Securities Premium Account.

Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effect of transactions of
non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular
revenue generating, investing and financing activities are segregated.

Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by
the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, net profit or loss for the year attributable to equity shareholders
and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential
equity shares.

Employee Stock Option Costs

Measurement and disclosure of the employee share based payment plans is done in accordance with SEBI (Employee
Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and Guidance Note on Accounting for
Employee Share-based Payments, issued by ICAI. The Company measures compensation cost relating to employee
stock options using the intrinsic value method. Compensation expense is amortized over the vesting period of the option
on a straight line basis.

Trade Receivables

Trade receivables are stated after writing off debts considered as bad. Adequate provision is made for debts considered
doubtful.

Cash and Cash Equivalents

Cash and Cash Equivalents for the purpose of Cash flow statements comprise Cash and Cheques in hand, bank
balances, demand deposits with banks and other short term highly liquid investments where the original maturity is three
months or less.

Recent Accounting Pronouncements

Appendix B to Ind AS21, Foreign currency transactions and advance consideration On March 28, 2018 Ministry of
Corporate Affairs (“”MCA””) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018
containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of
the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense
or income, when an entity has received or paid advance consideration in a foreign currency.

“The amendment will come into force from 1 April 2018. The company is evaluating the requirement of the amendment
and the impact on the financial statements. The effect on adoption of Ind AS 21 is expected to be insignificant.”

Ind AS 115

In March 2018, the Ministry of Corporate Affairs has notified the Companies (Indian Accounting Standards) Amendment
rules, 2018 (amended rules). As per the amended rules, Ind AS 115 “Revenue from contracts with customers”
supersedes Ind AS 11, “Construction contracts” and Ind AS 18, “Revenue” and is applicable for all accounting periods
commencing on or after 1 April 2018.

Ind AS 115 introduces a new framework of five step model for the analysis of revenue transactions. The model specifies
that revenue should be recognized when (or as) an entity transfer control of goods or services to a customer at the
amount to which the entity expects to be entitled. Further the new standard requires enhanced disclosures about the
nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with the customers.
The new revenue standard is applicable to the Company from 1 April 2018.

The standard permits two possible methods of transition:

Retrospective approach - Under this approach the standard will be applied retrospectively to each prior period
presented in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors.

Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application
(Cumulative catch - up approach)

“The Company is evaluating the requirement of the amendment and the impact on the financial statements. The effect on
adoption of Ind AS 115 is expected to be insignificant.”

Critical Estimates and Judgments

The preparation of financial statements requires the use of accounting estimates which by definition will seldom equal
the actual results.

Management also needs to exercise judgment in applying the Group''s accounting policies. This note provides an
overview of the areas that involved a higher degree of judgment or complexity, and items which are more likely tobe
materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed
information about each of these estimates and judgments is included in relevant notes together with information about
the basis of calculation for each affected line item in the financial statements.

Additional Regulatory and other Information

a) The company is not holding any immovable property at the end of the financial year.

b) The company has not re-valued any of its Property, Plant & Equipment.

c) The does not have any Capital Work-in-Progress.

d) The Company does not have any Intangible assets under development.

e) There is no benami property held by the company.

f) The Company has not borrowed fund from bank or financial institution on the basis of security on current assets.

g) The Company has not been declared as a willful defaulter.

h) Company has not entered into the transaction with the company whose name has been struck off from under Section
248 of the Companies Act 2013 or Section 560 of the companies Act 1956.

i) Since the Company has no borrowings from banks or financial institution, there is no registration of charges or
satisfaction of charges filed with the Registrar of Companies.

j) The clause regarding compliance with number of layers prescribed under section 2(87) of the Act, read with
companies (restrictions on number of Layers) Rules 2017, is not applicable to the Company.

k) The Company has not advanced or loaned or invested fund (either borrowed funds or share premium or any other
sources or kind of funds) to any other person or entities including foreign entities with understanding that the
intermediary shall directly or indirectly lend or invest in other person or entities identified in any manner whatsoever
by or on behalf of the company or provide guarantee, security or the like to or on behalf of ultimate beneficiaries.

l) The company has no transaction recorded in the books of accounts that has been surrendered or disclosed as
income during the year in tax assessment under the Income Tax Act 1961.

m) Company has not traded or invested in crypto currency or virtual currency during the financial year.

The additional Information pursuant to provisions of Companies Act, 2013 are either Nil or Not Applicable.

As per our attached report of even date.

For M/s. Rakesh Soni & Co For and on behalf of the Board of Directors of

Chartered Accountants Tree House Education & Accessories Limited

Firm Registration No. 114625W

CA R.K Soni Rajesh Bhatia Navin Kumar

Partner Managing Director Executive Director

Membership No. 047151 DIN No: 00074393 DIN: 01664259

UDIN: 25047151BMOHWG2184

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Mar 31, 2024

6.1 Share Application money of Rs.16,10,000/- given to Mehta Tree House & Infrastructure Private Limited towards purchase of shares.

6.2 The carrying amount of these deposits classified as financial assets represents fair value as required within the mearning of Indian Accounting Standard (Ind AS) 109. However the assets are not valued by a registered valuer during the year.

6.3 Security deposits includes deposit given to Educational Trust amounting to Rs.14,478/- Lakhs (Previous Year Rs.14,538/-Lakhs).

6.4 Statutory dues receivable of Rs.4.71 crores are the tds refund receivable from the Income tax department, which is withheld by the department due to tax demand for which company has gone for appeal.

6.5 Refer Note No.42.2 for Fair Valuation of Security Deposits.

13.1 Terms/ rights attached to equity shares

The company has only one class of equity shares having face value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 30: Contingent Liabilities and Commitments (to the the extent not provided for)		'' in Lakhs
Particulars	As at 31st March, 2024	As at 31st March, 2023
Commitments: Income Tax Demand for AY 2014-15, 2015-16,2016-17 and 2017-18, which is appealed by the company.	3,335.57	3,335.57
Total	3,335.57	3,335.57

Note 32: Employee Stock Option Plans

Fair Valuation of ESOP has not been carried out by the management as required within the meaning of Indian Accounting Standard (Ind AS) 109.

Note 33: Segment information

The activities of the Company comprise of only one business segment i.e. "providing education and related services including leasing of education infrastructure". The company operates in only one segment.

Note 36: Corporate Social Responsibility (CSR) Expenses

In view of the losses during preceding three years, the company has not made any provision for Corporate Social Responsibility Expesnes during the year. (Previous Year provision : Nil) .

Note 37: Revaluation of Assets and Liabilities

The Company does not own any immovable property. Share Investment with JT Infrastructure Pvt Ltd is not changed since Net Asset Value of JT Infrastructure Pvt Ltd is higher than the investment shown in the books.

Note 38 - Disposal/ Write off of Fixed Assets:

The company has sold some of its reclassified assets for a profit of Rs.43,930/- during the financial year (ref sch 4).

Note 39 - Impairment of Fixed Assets:

The Company has not impaired any assets during the year.

Note 40: Assets Pledged as security

The Company has not Pledged any of its Assets as security for current or non current borrowings.

Note 41: Fair Value measurement - (Ind AS) 113 Financial Instrument by categary and hierarchy:

The fair values of the financial assets and liabilites are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. The fair value of security deposits on which there is no recovery were calculated based on cash flow discounted using a current lending rate. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique.

Level 1 : Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: Other techniques for which all inputs which have significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

Note 42: Financial Risk Management

Financial risk management objectives and policies

The Company''s financial risk management is an integral part of how to plan and execute its buisness startegies. The Company''s financial risk management policy is set by the Board.

Credit Risk:

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into acount the financial condition, current economic trends.

Financial assets are written off when there is no reasonable expections of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised as income in statement of profit and loss.

The financial statements were approved for issue by the board of directors on 03rd May 2024.

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Mar 31, 2016

1. Segment information

The activities of the Company comprise of only one business segment i.e." providing education and related services including leasing of education infrastructure". The company operates in only one.

2. Related party disclosure

Information on related party transactions as required by Accounting Standard (AS -18) on Related Party Disclosures for the year ended 31st March, 2016.

3. List of related party

I Key management personnel (KMP)

Key management personnel (''KMP'') . Mr.Rajesh Bhatia - Managing Director . Mr.Vishal Shah - Director

4. Relatives of key management personnel

Relatives of KMP Mrs. Geeta Bhatia - wife of Mr.Rajesh Bhatia

5. Joint Venture company

JT Infrastructure Private Limited

Mehta Tree house Infrastructure Private Limited

6. Entity over which there is a significant control

Tree House Foundation

7. Transactions undertaken / balances outstanding with related parties in the ordinary course of business

Transactions during the year

8. Leases

Pursuant to Accounting Standard (AS-19) - Leases, the following information is given In case of assets taken on operating lease

The lease rent, amenities charges and Society maintenances recognized in the Statement of Profit and Loss during the year ended March 31, 2016 is Rs.37,12,15,398/-(previous year: Rs 31,50,76,702/-)

Significant leasing arrangements

9. The period of lease for the premises varies by location and ranges from 3 to 5 years.

10. Renewal of the lease at the end of the initial term is at mutual consent of both parties.

11. The Company has entered into lease conducting agreements with certain parties where the lease rentals are based on the revenue earned at the respective centers. The expected future lease payments cannot be estimated in respect of these lease conducting agreements and hence future liability in respect of the same have not been disclosed.

In case of assets given on operating lease

The lease rent income recognized in the Statement of Profit and Loss during the year ended March 31, 2016 is Rs.1,84,93,808/- (previous year: Rs 2,76,30,488/-)

Significant leasing arrangements

12. The period of lease forthepremisesis19 years 11 month

13. The lease rent shall stand revised by addition of an amount equivalent to 15% at the end of every third year.

14. After the expert of the said initial term of 19 years 11 months, the lessee has a sole option to renew the lease term.

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Mar 31, 2015

1 GENERAL INFORMATION

Tree house Education & Accessories Limited (the 'Company') was incorporated on July 10, 2006 under the Indian Companies Act, 1956 (the 'Act'). The Company is engaged in providing education and related services including leasing of education infrastructure.

The previous year's figures have been regrouped / reclassified, where ever necessary to confirm to the current year's presentation.

2 Terms / rights attached to equity shares

a The Company has only one class of shares referred to as equity shares having par value of Rs. 10. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

b The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting, except in case of interim dividend.

c The Company declares and pays dividends in Indian Rupees even to shareholders outside India.

3 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE Rs. EXTENT NOT PROVIDED FOR)

Particulars As at As at March 31, 2015 March 31, 2014

Commitments

Estimated amount of unexecuted 246,053,126 213,553,126 contracts

Bank guarantee given in favour 572,000 572,000 of Joint Commissioner, Sales Tax circle/charge centralsection, West Bengal.

TOTAL 246,625,126 214,125,126

4 SEGMENT INFORMATION

The activities of the Company comprise of only one business segment i.e "providing education and related services including leasing of education infrastructure". The Company operates in only one

5 RELATED PARTY DISCLOSURE

Information on related party transactions as required by Accounting Standard (AS - 18) on Related Party Disclosures for the year ended 31st March, 2015.

6 List of related party

i. Key management personnel (KMP) Key management personnel ('KMP') Mr. Rajesh Bhatia - Managing Director

Mr. Vishal Shah - Director

ii. Relatives of key management personnel Relatives of KMP Mrs. Geeta Bhatia - wife of Mr.Rajesh Bhatia

iii. Joint Venture company

JT Infrastructure Private Limited Mehta Treehouse Infrastructure Private Limited

iv. Entity over which there is a significant control Tree House Foundation

7 LEASES

Pursuant to Accounting Standard (AS-19) - Leases, the following information is given

The period of lease for the premises varies by location and ranges from 3 to 5 years.

Renewal of the lease at the end of the initial term is at mutual consent of both parties.

The Company has entered into lease conducting agreements with certain parties where the lease rentals are based on the revenue earned at the respective centers. The expected future lease payments cannot be estimated in respect of these lease conducting agreements and hence future liability in respect of the same have not been disclosed.

8 Significant leasing arrangements

a) The period of lease for the premises is 30 (Thirty) years.

b) The lease rent shall stand revised by addition of an amount equivalent to 15% at the end of every third year.

c) After the expiry of the said initial term of 30 years, the lessee has a sole option to renew the lease term for further period of 30 years

9 Notes related to ESOP plan 2010:

1. The Compensation Committee has granted on 04th January, 2011 a total of 1,400,000 options convertible into 1,400,000 Equity Shares which represents 3.89% of the paid up share capital of the Company. The fair market value Rs. 71/- on the date of grant is also the exercise price of the Option.

2. There is one employee who has been granted options equal to or exceeding 1% of the Issued Capital.

3. The Company accounts for 'Employee Share Based Payments' using the intrinsic value method.

4. The aggregate outstanding balance of the interest free loan given to Treehouse Employee Welfare Trust is Rs.13,75,265 (previous year Rs. 49,79,250) which has been grouped under Loans and Advances.

10 Notes related to ESOP plan 2012:

1. The Compensation Committee has granted on 06th September, 2012 a total of 4,00,000 options convertible into 4,00,000 Equity Shares which represents 1.11% of the paid up share capital of the Company. The fair market value of Rs 228/- on the date of grant is also the exercise price of the Option.

2. There is no employee who has been granted options equal to or exceeding 1% of the Issued Capital.

3. The Company accounts for 'Employee Share Based Payments' using the intrinsic value method.

4. The aggregate outstanding balance of the interest free loan given to Treehouse Employee Welfare Trust aggregating

Rs. 5,82,00,860 (previous year Rs. 8,09,68,500) which has been grouped under Loans and Advances.

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Mar 31, 2014

1.1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

Partculars As at Mar31 2014 As at Mar31 2013 Commitments Estimated amount of 213,553,126 401,400,277 unexecuted contract

Total 215,555,126 401,400,277

-''Consultancy income during the financial year 2013-2014 includes a sum of Rs. 18,31,75,000 towards Curriculum, Content and Development Services provided to various educational institutions. Of the said revenue a sum of Rs. 8,02,00,000 will be received in instalments over a period of 3 financial years from 2014-2015 to 2016-2017.

2.1 KINDERGARTEN AND PLAYSCHOOL BUSINESS FROM BRAINWORKS LEARNING SYSTEM PRIVATE LIMITED

The Company has acquired kindergarten and playschool business from Brainworks Learning System Private Limited with effect from 19th June, 2013 for a lump sum consideration ofRs. 5,10,00,000 (which includesRs. 10,00,000 being incidental expenses related to acquisition). The net asset acquired as a part of this acquisition was valued at Rs. 4,68,80,000. The bal- ance of the excess consideration paid over assets acquired amounting to Rs. 41,20,000 has been treated as goodwill.

2.2 SEGMENT INFORMATION

The activities of the Company comprise of only one business segment i.e "providing education and related services in- cluding leasing of education infrastructure". The Company operates in only one geographical segment i.e. India. Hence, the Company''s financial statements are reflective of the information required by Accounting Standard 17, "Segment Report- ing" notified under the Companies Act, 1956.

2.3 RELATED PARTY DISCLOSURE

In accordance with the requirements of Accounting Standard 18, "Related Party Disclosures" notified under the Companies Act, 1956, the related party disclosures are given below:

a) List of related party

i Key management personnel (KMP)

Key management personnel (''KMP'') -

Mr.Rajesh Bhatia - Managing Director

Mr.VishalShah - Director

ii Relatives of key management personnel

Relatives of KMP

Mrs. Geeta Bhatia - wife of Mr.Rajesh Bhatia

iii Joint Venture company

JT Infrastructure Private Limited

2.4 LEASES

In case of assets taken on Lease

The Lease rent and amenities charges recognized in the Statement of Profit and Loss during the year ended March 31, 2014 is Rs. 257,663,064 (previous year: Rs. 203,651,482)

Significant leasing arrangements

1.1 The period of Lease for the premises varies by Location and ranges from 3 to 5 years.

1.2 RenewaL of the Lease at the end of the initiaLterm is at mutuaL consent of both parties.

1.3 The Company has entered into Lease conducting agreements with certain parties where the Lease rentaLs are based on the revenue earned at the respective centers. The expected future Lease payments cannot be estimated in respect of these Lease conducting agreements and hence future Liability in respect of the same have not been discLosed.

In case of assets given on lease

The Lease rent income recognized in the Statement of Profit and Loss during the year ended March 31, 2014 is Rs. 306,76,046 (previous year: Rs. 12,182,240)

2.36.8 Notes related to ESOP plan 2010:

1. The Compensation Committee has granted on 04th January, 2011 a total of 1,400,000 options convertible into 1,400,000 Equity Shares which represents 3.89% of the paid up share capital of the Company. The fair market value ofRs. 71/-on the date of grant is also the exercise price of the Option.

2. There is one employee who has been granted options equal to or exceeding 1% of the Issued Capital.

3. The Company accounts for ''Employee Share Based Payments'' using the intrinsic value method.

4. The Company has given an interest free loan to Treehouse Employee Welfare Trust aggregating Rs. 49,79,250 (previous year Rs. 21,836,250) which has been grouped under Loans and Advances.

Notes related to ESOP plan 2012:

1. The Compensation Committee has granted on 06th September, 2012 a total of 4,00,000 options convertible into 4,00,000 Equity Shares which represents 1.11% of the paid up share capital of the Company. The fair market value of Rs. 228/- on the date of grant is also the exercise price of the Option.

2. There is no employee who has been granted options equal to or exceeding 1% of the Issued Capital.

3. The Company accounts for ''Employee Share Based Payments'' using the intrinsic value method.

4. The Company has given an interest free loan to Treehouse Employee Welfare Trust aggregating Rs. 8,09,68,500 (previous year Rs. 9,12,00,000) which has been grouped under Loans and Advances.

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Mar 31, 2013

GENERAL INFORMATION

Treehouse Education & Accessories Limited (the ''Company'') was incorporated on July 10, 2006 under the Indian Companies Act, 1956 (the ''Act''). The Company is engaged in providing education and related services including leasing of education infrastructure.



Rs.

As at As at Particulars March 31, 2013 March 31, 2012

1.1 CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

Commitments

Estimated amount of unexecuted contracts 401,400,277 566,803,591

Total 401,400,277 566,803,591

1.2 SEGMENT INFORMATION

The activities of the Company comprise of only one business segment i.e "providing education and related services including leasing of education infrastructure". The Company operates in only one geographical segment i.e. India. Hence, the Company''s financial statements are reflective of the information required by Accounting Standard 17, "Segment Reporting" notified under the Companies Act, 1956.

1.3 RELATED PARTY DISCLOSURES

In accordance with the requirements of Accounting Standard 18, "Related Party Disclosures" notified under the Companies Act, 1956, the related party disclosures are given below:

a) List of related parties

i Key management personnel (KMP)

Key management personnel (''KMP'') - Mr. Rajesh Bhatia - Managing Director

- Mr. Vishal Shah - Director

ii. Relatives of key management personnel

Relatives of KMP Mrs. Geeta Bhatia - wife of Mr. Rajesh Bhatia

iii. Joint venture company

JT Infrastructure Private Limited

1.4 LEASES

In case of assets taken on lease

The lease rent and amenities charges recognised in the Statement of Profit and Loss during the year ended March 31, 2013 is Rs. 203,651,482 (previous year: Rs. 111,388,507)

1.5 EMPLOYEE STOCK OPTION PLANS

For the financial year March 31, 2013 following schemes were in operation:

1) Treehouse Education Employees'' Stock Option Plan, 2010 - ESOP A

2) Treehouse Education Employees'' Stock Option Plan, 2012 - ESOP B

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Mar 31, 2012

General Information

Treehouse Education & Accessories Limited (the 'Company') was incorporated on July 10, 2006 under the Indian Companies Act, 1956 (the 'Act'). The Company is engaged in providing education and related services including leasing of education infrastructure.

The previous year's figures have been regrouped / reclassified, where ever necessary to conform to the current year's presentation.

Amounts in the notes are presented in Indian Rupees (INR), except otherwise stated.

During the year, the Company has issued and allotted the shares as detailed below:

- 280,000 equity shares of Rs. 10 each for cash consideration at a premium of Rs. 140 per share to Matrix Partners India Investment Holdings, LLC.

- 93,333 equity shares of Rs. 10 each for cash consideration at a premium of Rs. 140 per share to FC VI India Venture Mauritius Limited.

- 890,821 equity shares of Rs. 10 each for cash consideration at a premium of Rs. 140 per share to On Mauritius.

- 8,432,189 equity shares of Rs. 10 each for cash consideration at a premium of Rs. 125 per share (with discount of Rs. 6 per share to retail investors) during the initial public offering.

The following table sets out the status of the gratuity plan for the year ended March 31, 2012 in accordance with Accounting Standard 15, Employee Benefits (Revised), as notified under the Companies Act, 1956.

The Company has initiated the process of obtaining confirmation from suppliers who have registered under the Micro, Small and Medium Enterprises Devel- opment Act, 2006. Based on the information available with the Company, there is no amount outstanding as on March 31, 2012 to MSME's. There are no overdue principal amounts and therefore no interest is paid or payable.

The Company has entered into an exclusive facilitation service agreement with various educational trusts in accordance with which the Company has exclusive rights for a period of 30 years to provide various facilitation services for schools/courses to be set up by these educational trusts. The Com- pany has paid one time fixed fee to the educational trusts towards such exclusive rights. The fee paid is recognised as an intangible asset and accordingly capitalised as 'Business Commercial Rights' in the financial statements.

During the current year, the terms of payment for these Business Commercial Rights have been modified with the 'one time fixed fee' being replaced with combination of 'one time fixed fee' and 'partial interest bearing refundable deposits'. These deposits attract interest once a particular threshold on number of students as mentioned in the respective school management agreements is achieved. The interest is levied @ BPLR 2%. The deposits are repayable to the Company at the end of 5 years.

Consequently, such 'refundable deposits' amounting to Rs. 262,735,475, paid towards Business Commercial Rights and disclosed as 'Capital work-in-progress' as at March 31, 2011 have been reclassified as 'Refundable Security Deposits' and disclosed in Note 2.13, Long term loans and advances.

The Company has entered into a joint venture agreement with Jayshree Builders ('JB') to construct and rent a school building. As part of the arrangement, the Company and JB have agreed to equally contribute to share capital of JT Infrastructure Private Limited, a company in which both Treehouse Education & Accessories Limited and JB have equal share holding.

The Company has a 50% interest in the assets, liabilities, expenses and income of JT Infrastructure Private Limited, a company incorporated in India. The operations have not yet commenced and Company's share of the assets and liabilities of the jointly controlled entity as per the audited Balance Sheet of March 31, 2012 are:

Notes:

- Fixed deposits of Rs 409,030,556 (previous year Rs 270,000,001) placed with a bank against working capital loan obtained from them.

- Fixed deposits of Rs 7,223,332 (previous year Rs Nil) placed with a bank against which the bank has given a guarantee.

Contingent Liabilities and Commitments (to the extent not provided for)

As at As at

Particulars March 31, 2012 March 31, 2011

Contingent liabilities

Guarantee given for loan taken by director - 11,445,000

Commitments

Estimated amount of unexecuted contracts 566,803,591 227,366,679

Total 566,803,591 238,811,679

1.1 Segment Information

The activities of the Company comprise of only one business segment i.e "providing education and related services including leasing of education infrastructure". The Company operates in only one geographical segment i.e. India. Hence, the Company's financial statements are reflective of the information required by Accounting Standard 17, "Segment Reporting" notified under the Companies Act, 1956.

*- The value of fixed asset purchased from Mr. Rajesh Bhatia during the year amounts to Rs. 134,500,000, against which advance of Rs. 39,600,000 was paid during the previous year.

1.2 Leases

In case of assets taken on lease

The lease rent and amenities charges recognised in the Statement of Profit and Loss during the year ended March 31, 2012 is Rs. 111,388,507 (previous year: Rs. 52,158,020)

Significant leasing arrangements:

1.1. The period of lease for the premises varies by location and ranges from 3 to 5 years.

1.2. Renewal of the lease at the end of the initial term is at mutual consent of both parties.

1.3. The Company has entered into lease conducting agreements with certain parties where the lease rentals are based on the revenue earned at the respective centers. The expected future lease payments cannot be estimated in respect of these lease conducting agreements and hence future liability in respect of the same have not been disclosed.

In case of assets given on lease

The lease rent income recognised in the Statement of Profit and Loss during the year ended March 31, 2012 is Rs. 12,182,240 (previous year: Rs. 12,182,244)

Significant leasing arrangements:

1.1. The period of lease for the premises is 30 (Thirty) years.

1.2 The lease rent shall stand revised by addition of an amount equivalent to 15% at the end of every third year.

1.3 After the expiry of the said initial term of 30 years, the lessee has a sole option to renew the lease term for further period of 30 years.

* Other Services for the year ended March 31, 2011 relates to assurance services for Initial Public Offering (IPO) and hence has been adjusted against Securities Premium Account as part of share issue expenses.

1.3 Employee Stock Option Plans

The Company has implemented Employee Stock Option Plan for the key employees of the Company through the Treehouse Employees Welfare Trust (the 'Trust') formed for the purpose. All the options issued by the Company are equity share based options which have to be settled in equity shares only. The shares to be allotted to employees under the Treehouse Education Employees' Stock Option Plan, 2010 are issued to the Trust by the Company. Based on the information provided by the Trust, the details of the Treehouse Education Employees' Stock Option Plan, 2010 of the Company as at March 31, 2012 are as under:

Notes

a. The Compensation Committee has granted a total of 1,400,000 options convertible into 1,400,000 Equity Shares which represents 4.15% of the paid up share capital of the Company. The fair market value on the date of grant, Rs. 71, is also the exercise price of the Option.

b. There is one employee who has been granted options equal to or exceeding 1% of the Issued Capital.

c. The Diluted Earnings Per Share and Basic Earnings Per Share are the same, as the shares covered under options are already issued and allotted and are held by the Trust.

d. In the event of any further rights or bonus issue of equity shares after vesting but prior to exercise of the options, the Company / Trust shall consider the grant of an appropriate number of additional options, at such price as may be determined by the Compensation Committee.

e. The Company accounts for 'Employee Share Based Payments' using the fair value method.

f. The Company has given an interest free loan to Treehouse Employee Welfare Trust aggregating Rs. 99,410,000 (previous year Rs. 99,410,000) which has been grouped under Loans and Advances.

1.4 Initial Public Offer (IPO) of the Equity Shares of the Company

During the year, the Company has successfully made an IPO of 8,432,189 equity shares of Rs. 10 each constituting 25.01% of the post issue share capital of the Company at a price of Rs.135 per share including a premium of Rs.125 per share with a retail discount of Rs. 6 per equity share. The issue was opened for subscription to the public on August 10, 2011 and closed on August 12, 2011. The trading in the fully paid up shares of the Company commenced on August 26, 2011 at National Stock Exchange of India Ltd and Bombay Stock Exchange Ltd.

The members of the Company have on February 02, 2012 approved by way of postal ballot an amendment in the utilisation of IPO proceeds.

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Mar 31, 2011

1. Background

Tree House Education & Accessories Limited (the 'Company') (formerly Tree House Education & Accessories Private Limited) was incorporated on July 10, 2006 under the Indian Companies Act, 1956 (the 'Act'). The Company is engaged in providing education and related services including leasing of education infrastructure.

2. Basis of preparation

The financial statements have been prepared under Historical Cost Convention on the accrual basis of accounting, are in accordance with the applicable requirements of the Companies Act, 1956 (the 'Act') and comply in all material aspects with the Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006, to the extent applicable. The accounting policies have been consistently applied by the Company.

3. Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the year, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include useful lives of fixed assets, future obligations under employee retirement benefit plans, provision for doubtful debts and advances, etc. Actual results could differ from those estimates. Any revisions to accounting estimates are recognised prospectively in the current and future periods.

4. Business Commercial Rights

The Company has entered into an exclusive facilitation service agreement with various educational trusts based on which the Company has exclusive rights for a period of 30 years to provide various facilitation services for schools/courses to be set up by these educational trusts. The Company has paid one time fixed fee to the educational trusts towards such rights. The fee paid is recognised as an intangible asset and accordingly capitalised as 'Business Commercial Rights' in the financial statements. The annual income from these educational trusts is based on fixed fee per student admitted /enrolled with the schools /courses during the tenor of the agreement and is subject to minimum guaranteed amount each year.

The Company had prepared and submitted audited interim financial statements for the nine months ended December 31, 2010 and Business Commercial Rights were amortised over a period of 10 years. Currently, in view of the improvement in the projected cash inflows due to the expected increase in student enrolments in the schools/ courses, the management has revised the estimated useful life of Business Commercial Rights and the same are now amortised over a period of 30 years, being the period specified under the facilitation agreements.

Capital work in progress (including capital advances) includes an amount of Rs. 307,965,475 (previous year: Rs. 159,120,534) incurred towards Business Commercial Rights, which will be capitalised on commencement of operation of the schools and full payment of the agreed fees to the education institutions.

5. Joint Venture agreement

The Company has entered into a joint venture agreement with Jayshree Builders ('JB') to construct and rent a school building. As part of the arrangement, the Company and JB have agreed to equally contribute to share capital of JT Infrastructure Private Limited (Formerly known as 'Rage Realty Private Limited'), a Company in which both Tree House Education & Accessories Limited and JB have equal share holding. The Company has contributed Rs. 26,390,000 (previous year Rs. 10,145,000) towards share application money in JT Infrastructure Private Limited.

The Company has a 50% interest in the assets, liabilities, expenses and income of JT Infrastructure Private Limited, a Company incorporated in India. The operations have not commenced and Company's share of the assets and liabilities of the jointly controlled entity as per the latest available audited Balance Sheet are :

6. segment information

The activities of the Company comprise of only one business segment i.e "providing education and related services to other education institutions". The Company operates in only one geographical segment i.e. India. Hence, the Company's financial statements are reflective of the information required by Accounting Standard 17, "Segment Reporting" notified under the Companies Act, 1956.

7. Operating lease

in case of assets taken on lease

The lease rent charges of premises and furniture recognised in the Profit and Loss Account during the year ended March 31, 2011 is Rs. 58,034,527 (previous year: Rs. 38,309,794) significant leasing arrangements:

a. The period of lease for the premises varies by location and ranges from 3 to 10 years.

b. Renewal of the lease at the end of the initial term is at mutual consent of both parties.

c. For leases entered into with the promoters, promoters have a choice to terminate the lease agreement if their shareholding in the Company reduces to less than 50%.

d. The Company has entered into lease conducting agreements with certain parties where the lease rentals are based on the revenue earned at the respective centres. The expected future lease payments cannot be estimated in respect of these lease conducting agreements and hence future liability in respect of the same have not been disclosed.

Significant leasing arrangements:

a. The period of lease for the premises is 30 (Thirty) years.

b. The lease Rent shall stand revised by addition of an amount equivalent to 15% at the end of every third year.

c. After the expiry of the said initial term of 30 years, the lessee has a sole option to renew the lease term for further period of 30 years.

8. Contingent Liabilities (not provided for)

Year ended Year ended March 31, 2011 March 31, 2010

Particulars

Bank guarantees given against loan taken by director. Outstanding loan 11,445,000 11,445,000 amount as at year end is Rs. 7,466,821 (previous year: Rs. 8,983,110)

9. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is Rs. 227,366,679 (previous year: Rs. 70,715,440).

10. The Company is primarily engaged in providing education services. The sale of such service cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and certain information as required under paragraph 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956

11. Dues to Micro, small and Medium Enterprises

The Company is in the process of identifying micro and small suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 and in the absence of information in this regard, the particulars required by the aforesaid Act have not been given.

12. Employee stock Option Plan

The Company has implemented Employee Stock Option Plan for the key employees of the Company through the Tree House Employees Welfare Trust (the 'Trust') formed for the purpose. All the options issued by the Company are equity share based options which have to be settled in equity shares only. The shares to be allotted to employees under the Tree House Education Employees' Stock Option Plan, 2010 are issued to the Trust by the Company. Based on the information provided by the Trust, the details of the Tree House Education Employees' Stock Option Plan, 2010 of the Company as at March 31, 2011 are as under:

13. Previous year's figures have been regrouped, rearranged, or recasted wherever considered necessary to conform to current year's presentation.

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Mar 31, 2010

1. Background:

Tree House Education and Accessories Private Limited (the 'Company') was incorporated on July 10,2006 under the Indian Companies Act, 1956 (the 'Act').. The Company is engaged in providing education and related services.

2. Basis of preparation:

The financial statements have been prepared under historical cost convention on the accrual basis of accounting, are in accordance with the applicable requirements of the Companies Act, 1956 ('the Act') and comply in all material aspects with the Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006, to the extent applicable. The accounting policies have been consistently applied by the company.

3. Use of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include useful lives of fixed assets, future obligations under employee retirement benefit plans, etc. Actual results could differ from those estimates . .Any revisions to accounting estimates are recognised prospectively in the current and future periods.

4. Share issue expenses

Share issue expenses are adjusted in the same year against the securities premium account as permitted by section 78(2) of the Companies Act, 1956. In case of insufficient balances in the securities premium account, unadjusted share issue expenses are amortized over a period of 5 years. In case subsequently there arises a securities premium account, unadjusted share issue expenses would not be amortized but adjusted against the securities premium account.

5. Capita work-in-progress

Capital work in progress including capital advances aggregate to Rs.305,01O,589 (previous year: Rs.155,051,531), which primarily relate to the following:

a. The company has made part payments to various educational institutions, aggregating Rs.142,575,000 (previous year: Rs.l0,400,000) towards acquisition of exclusive rights for providing facilitation service for all schools/courses run currently or to be established in future by the respective educational institution. Against, these facilitation services, the company will earn a fixed fee per child admitted/ enrolled with the schools/courses for the entire term of agreement. The aggregate annual fee to be earned is subject to minimum guaranteed amount under the agreement with, the respective educational institutions. The agreement is effective on full payment of the agreed fixed fee by the company and on commencement of rendering of the facilitation services specified under tlle agreement. Presently, tlle projects have not commenced and accordingly, tlle payments made are disclosed as capital advances under capital work in progress.

b. Further, the Company has paid an advance of Rs.14,000,000 (previous year: Rs.14,000,000) for acquisition of properties to be used for its play school operations. The properties are under construction and the Company is in process of getting tlle title deeds transferred in its name.

6. Joint Venture agreement

The Company has entered into a joint venture agreement witll Jayshree Builders OB') to construct and. rent a school building. As part of the arrangement, the Company and JB have agreed to equally contribute to share capital of Rage Realty Private Ltd (RRL), a company formed for the joint venture. During the year, the Company has contributed Rs.10,045,000 towards share application money in RRL.

As the future liability for gratuity is provided on actuarial basis for the Company as a whole, the amount pertaining to the director is not ascertainable and, therefore, not included above.

7. Gratuity Plan

The following table sets out the status of the gratuity plan for the year ended March 31, 2010 as required under Accounting Standard 15, Employee Benefits (Revised) as notified under the Companies Act, 1956.

8. Segment information

The activities of the company comprises of only one business segment i.e "providing education and related services to other educational institutions". The Company operates in only one geographical segment i.e.

India. Hence the company's financial statement is reflective of the information required by Accounting

Standard 17 prescribed by the Companies (Accounting Standards) Rules, 2006 on Segment Reporting.

9. Operating lease

The lease rent charges of premises and furniture recognized in the profit and loss account is Rs.34,884,090 (previous year Rs .. 20,571,975).

Significant leasing arrangements:

a. The period of lease for the centers varies by location and ranges from 3 to 10 years.

b. Renewal of the lease at the end of the initial term is at mutual consent of both parties.

c. For leases entered into with the promoters, promoters have a choice to terminate the lease agreement if their shareholding in the Company reduces to less than 50%.

10. Earning / (loss) per share

The amounts considered in ascertaining the Company's earnings per share constitute the net profit/loss for the year attributable to the equity shareholders. In accordance with Accounting Standard 20, 'Earnings Per Share', basic earnings per share is computed using the weighted average number of equity shares outstanding during the year and earnings available to equity shareholders

11. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is Rs. 70,715,440 (previous year: Rs. 42,385,200).

12. Share Capital

a) During the year, the Company has issued an additional 23,75,000 shares at Rs. 63.16 per share to Matrix, Partners India Investment Holding LLC ('Matrix') as further contribution towards equity share capital aggregating to Rs. 150,000,000, equivalent to USD3,090,536.

b) Subsequent to year end, Matrix and FCVI ventures Ltd ("Capital Foundation) subscribed to additional 814,259 shares and 2,804,668 shares respectively of the company at Rs. 110.53 per share as further contribution towards equity share capital aggregating to Rs. 400,000,000.

13. Quantitative Details

The company is primarily engaged in providing education services. The sale of such service cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and certain information as required under paragraph 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956.

14. Dues to Micro and Small Enterprises

The Company is in the process of identifying micro and small suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 and in the absence of information in this regard, the particulars required by the aforesaid Act have not been given.

15. Previous year's figures have been regrouped, rearranged, or recasted wherever considered necessary to conform to current year's presentation.