A PRESENTA TION ON CAREERPOI

NT IFOSYSTEM

COMPANY BACKGROUND AND BUSINESS MODEL

Career Point Infosystems Ltd was incorporated as a public company on March 2000 by Pramod Maheswari, who has been in tutoring for competitive entrance exams since 1993 along with other promoters Mr. Om Prakash Maheswari and Mr. Nawal Kishore Maheswari. In FY02, the company started its operations via franchisee centres

and from April 2006 onwards, it started to provide tutoring via company operated training centres as well. CPIL is one of the leading tutorial service providers to high school and post high school students for various competitive entrance exams including All India Engineering Entrance Examination (AIEEE), Indian Institute of Technology Joint Entrance Examination (IITJEE),All India Pre-Medical Test (AIPMT), Pre-Dental Test (PDT), etc., The company provides these services through four delivery platforms - company & franchisee operated centres, distance learning, synchro school programme and knowledge lab.

AVERAGE CHARGES
Under company operated centres, the course fees are based upon the selection of course, duration and geographical location of the centres. Basically, the company gets fees in lumpsum and/or on installments basis depending upon the course opted by the student. On

an average, the company charges `31,000/ student/course.

The objects of the Fresh Issue are:

To meet the costs of construction and development of an integrated campus facility in Kota. To meet the costs of expansion of classroom infrastructure and office facility. To finance acquisitions and other strategic initiatives.

FRANCHISE CENTRES
In franchisee centres, the company enters into a 3-4 years agreement with franchisees and the company receives upfront fee and subsequently a certain percentage of the gross fees earned from the enrollment of students. Going forward, the franchisee centres are expected to come down as the company is likely to concentrate more on its own centres. As of 31st July, it has presence through 33

training centres, of which, 17 are company owned and the rest 16 are franchisees centres, spread across 13 states. Recently, CPIL forayed into formal education space through Education Consultancy and Management Services (ECAMS) segment. Through this entry, the company will serve K- 12 and higher education segment for private & government schools, colleges and universities. Under this ECAMS, the company will provide necessary management services which includes, laying strategic plans, HR management services, administrative services, advisory services and IT related services.

Companys strategy going forward

Constructing an integrated campus facility in Kota: The company operated training centre at Kota attracts the maximum number of student enrolment. In order to make use of this opportunity, the company is constructing an integrated campus facility at Kota. This facility spread across 8.6 lakh square feet for 3000 students with an investment of `682.5 mn, will provide accommodation to students and visiting parents, library, recreation and other such facilities and is expected to be completed by FY12. This integrated facility, supported by increased faculty members to maintain an adequate faculty student

ratio, will allow CPIL to increase the student enrolments. The Kota centre's average fee for each student for IIT-JEE course is `64000, for AIEEE `35000, for AIPPMT `40000, and for distance learning `5000. Innovative products: CPIL is preparing some innovative products like TechEdge Class This is a scalable model, wherein a virtual classroom environment is created which replicates the model of a real classroom with the help of VSAT/VPN technology. Synchro-school Programme through tech initiatives - SynchroSchool Programme is a unique combination of providing tutoring for competitive entrance examination integrated with school education through association with schools. In the near future, they are planning to upgrade this programme with the help of TechEdge platforms. Knowledge Labs - Pre-recorded varied educational content developed by faculty members in video and digital format will be provided to students via knowledge labs.

Private Equity (PE) Participation in Carrier Point Infosystems as on 3rd sep

In 2007 - M/s Volrado Venture Partners - currently holds 6.94% on pre-issue capital.

In 2009 - Franklin Templeton Asset Management (India) pvt Ltd invested `500 mn at `248.60/share and currently holds 13.95% on pre-issue capital.

 In 2010 - Kalpa Partners (Mr. N.S. Ragavan, founder and promoter of Infosys) invested `100 mn at `292.64/share and currently holds 2.37% on pre-issue capital.

Issue Details
Issue Opens Issue Closes (Institutions) Issue Closes (Retail) Equity Offerings (In mn) Face Value ` Price Band ` Issue Size (in mn) ` Minimum Application Lot

Sep 16, 2010 Sep 20, 2010 Sep 21, 2010 3.70-3.89 10 each 295 - `310 1150 20.00 320

Maximum Application (Retail)

 Issue Type Post Issue Market Cap (mn) at higher band

100% Book Building 5620.2 NSE & BSE 3/5 - CARE Limited

Listing IPO Grading

Shareholding Pattern (%)

Promoter Non Promoter Public

Pre Issue 75.35 24.65 0

Post Issue 59.93 33.67 6.39

Issue Structure (In No Shares) Issue size Of which Fresh issue by the company Of which offer for sale Employee Reservation Net issue

3709677 3709677 NIL 65000 3644677

Break-up of net issue to public: QIB's portion (minimum) Non-institutional portion (minimum) Retail (minimum)

60% 10% 30%

Balance Sheet of Career Point Infosystems ------------------- in Rs. Cr. -------------------

Mar '06 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities

Mar '07 12 mths

Mar '08 12 mths12 mths

Mar '09

Mar '10 12 mths

1.14 1.14 0.00 0.00 3.75 0.00 4.89 0.00 0.55 0.55 5.44 Mar'06 12mths

5.07 5.07 0.52 0.00 16.87 0.00 22.46 0.00 2.93 2.93 25.39 Mar '07 12 mths 5.81 0.17 5.64 2.06 3.02 0.35 0.56 11.95

12.07 12.07 12.07 12.07 0.00 0.00 0.00 0.00 30.61 46.85 0.00 0.00 42.68 58.92 0.00 5.22 0.00 0.00 0.00 5.22 42.68 64.14 Mar '08 Mar '09 12 mths 7.17 0.34 6.83 5.68 4.94 0.96 1.80 16.95 12 mths 15.32 0.70 14.62 6.97 5.48 1.85 2.35 13.28

14.42 14.42 0.00 0.00 123.15 0.00 137.57 0.11 0.00 0.11 137.68 Mar '10 12 mths 29.34 1.24 28.10 6.69 41.66 1.74 0.47 22.62

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance

4.21 0.07 4.14 0.00 0.39 0.08 0.58 2.01

Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

2.67 3.09 0.00 5.76 0.00 4.66 0.20 4.86 0.90 0.01 5.44 0.00 42.85

12.86 9.23 0.00 22.09 0.00 6.59 0.95 7.54 14.55 0.12 25.39 1.04 43.27

19.71 13.78 0.00 33.49 0.00 8.29 0.18 8.47 25.02 0.21 42.68 1.44 35.36

17.48 29.38 0.00 46.86 0.00 9.80 0.23 10.03 36.83 0.25 64.15 0.23 48.82

24.83 45.48 0.00 70.31 0.00 10.19 0.36 10.55 59.76 1.48 137.69 0.09 95.40

Profit & Loss account of Career Point Infosystems

Mar '06 12mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 5.43 0.00 5.43 0.26 0.00 5.69 0.00 0.00 0.81 1.31 0.00 1.32 0.00 3.44 Mar '06 12mths Operating Profit PBDIT Interest PBDT 1.99 2.25 0.00 2.25

------------------- in Rs. Cr. ------------------Mar '07 12 mths 29.07 0.00 29.07 0.90 0.00 29.97 0.00 0.00 4.60 2.13 0.00 5.03 0.00 11.76 Mar '07 12 mths 17.31 18.21 0.00 18.21 Mar '08 12 mths 38.02 0.00 38.02 3.14 0.00 41.16 0.00 0.00 7.21 2.38 0.00 7.86 0.00 17.45 Mar '08 12 mths 20.57 23.71 0.05 23.66 Mar '09 12 mths 45.15 0.00 45.15 3.89 0.00 49.04 0.00 0.00 11.90 1.79 0.00 9.92 0.00 23.61 Mar '09 12 mths 21.54 25.43 0.18 25.25 Mar '10 12 mths 61.66 0.00 61.66 6.15 0.00 67.81 0.00 0.00 20.82 2.18 0.00 14.70 0.00 37.70 Mar '10 12 mths 23.96 30.11 0.03 30.08

Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

0.05 0.00 2.20 0.00 2.20 0.72 1.47 3.45 0.00 0.17 0.02 11.40 12.92 15.00 42.85

0.13 0.02 18.06 0.00 18.06 6.05 12.01 11.75 0.00 0.76 0.13 50.71 23.68 15.00 43.27

0.20 0.04 23.42 0.00 23.42 7.99 15.45 17.44 0.00 0.00 0.00 120.67 12.81 0.00 35.36

0.42 0.03 24.80 0.00 24.80 8.56 16.24 23.61 0.00 0.00 0.00 120.67 13.46 0.00 48.82

0.66 0.03 29.39 0.00 29.39 9.51 19.87 37.70 0.00 0.00 0.00 144.20 13.78 0.00 95.40

Key Strengths
Qualified and Experienced faculty team Currently, the company has a team of 231 faculty members, in which, most of them are graduates from Indian Institute of Technology (IIT), National Institute of Technology (NIT) and other colleges in India. So the faculty members are well equipped with subject knowledge to guide and tutor students. Apart from this, the company has an ongoing in-house faculty training facility, where they undergo training on coaching skills & methodologies and subject matter up gradation in relevant courses

Brand power and geographical presence CPIL enjoys the strong brand recognition as the established tutorial player in competitive exams space for engineering and

medical stream. Presently, it has presence in 13 states (including franchisee centres) which provides access to major markets in northern and easternIndia. Its Kota centre attracts students even from overseas countries like Singapore and Middle East, which reflects the brand image.

CAREER POINT: Valuation & Outlook

In FY 2010 Net sales increased 37% to Rs 61.66 crore and net profit grew 19% to Rs 17.8 crore. It is a debt-free company, earns most of its revenue in the first six months of the financial year. Networth has given robust growth with above 60% of CAGR for last 5 years. As well Net profit & revenue had growth of 17% & 28% of CAGR for last 5 years. At the lower price band of Rs 295 per equity share of Rs 10 face value, the P/E works out to 30.4 times the EPS of Rs 9.7 for FY 2010. At the upper band of Rs 310, P/E works out to 31.6 times theEPS of Rs 9.8 for FY 2010. Listed companies in the education sector, Everonn Education, Educomp Solution and NIIT, have PE of 25,39 & 41 times EPS of FY 2010. However, Career Point Infosystems is the first company from the tutorial education field, tapping the capital market.

RECOMMENDATION: As Education is one of the Biggest Priority for Growing India and many students are option for Higher Professional Studies the Company looks Attractive on the Business Line. Financially the company has done Good Revenues, we expect the company to grow by 20%YOY . We recommend to Subscribe for Mid to Long Term Base. PROJECT REPRESENTATIVES:

KARAN JAIN NISHANT JAIN PRATIK JAIN YATISH JAIN ALTAF KAREDIA SAURIN SHAH

19 21 23 24 29 57