Zee Learn Limited ↗

ZLL is an Essel Group Company listed on National Stock Exchange, Bombay Stock Exchange and on Luxemburg Stock Exchange. Essel Group has been in the media and entertainment business for more than two decades, as the flagship channel (Zee TV) was launched in 1992. ZEE bran d has a strong recognition in the media and entertainment industry given its long and successful track record. Further, Essel Group has a presence across allied media value chains including television

ZLL has a comfortable capital structure marked by net gearing at 1.03x as at December 31, 2019 and healthy debt coverage indicators . As a result of acquisition of MT Edu care, a dominant player in supplementary education during FY19 and consequent recognition of goodwill the tangible networth of ZLL on a consolidated basis had deteriorated to Rs.220.37 crore as at March 31, 2019 as against Rs.331.85 crore as on March 31, 2018 .The acquisition also resulted in debt increasing to Rs. 436crore as

The liquidity profile is poor as there has been a sharp drop in the operational income of the company due to covid -19 lockdown. Further the working capital limits of company are fully utilized, and it has availed moratorium from banks, available under the RBI circular dated March 26, 2020. Analytical Approach: Consolidated CARE has considered consolidated financials of ZLL, while arriving at the rati ngs owing to operational linkages and financial

CARE has considered consolidated financials of ZLL, while arriving at the rati ngs owing to operational linkages and financial linkage. The consolidated financials of ZLL include financials of its various subsi diaries and step down subsidiaries, list of subsidiaries and step down subsidiaries of ZLL is attached as Annexure-3. Applicable Criteria Criteria on assigning ‘Outlook’ and ‘Credit Watch’ to Credit Ratings CARE’s Policy on Default Recognition

Criteria on assigning ‘Outlook’ and ‘Credit Watch’ to Credit Ratings CARE’s Policy on Default Recognition Financial ratios – Non-Financial Sector Rating Methodology: Consolidation and Factoring Linkages in Ratings Rating methodology: Service Sector Companies CARE's Policy: Credit Enhanced Debt CARE's policy: Liquidity Analysis of Non -Financial Sector Entities.

Zee Learn Limited (ZLL) is a part of Essel group and was incorporated in the year 2010. It is a child development and educati on company which operates K -12 schools under the brand name “Mount Litera Zee Schools”, pre -schools under name “Kidzee”, and vocational academy “ZICA” and “ZIMA”. ZLL also acts as a consultant to local entrepreneurs who wish to setup K -12 schools, Kidzee pre -school and provides end to end education management and advisory servi ces. ZLL had acquired MT Educare Limited

As on March 31, 2020, the promoters held 57.17% of the total shareholding, of which 81.48% is pledged. This reduces the financial flexibility available to promoters to raise additional funds. Highly regulated Education sector The revenue of ZLL is dependent on the fees collected from the students enrolled in the school. Hence, the company is indirectly impacted by the regulatory changes in the education sector. Education falls in the Concurrent List of the

The revenue of ZLL is dependent on the fees collected from the students enrolled in the school. Hence, the company is indirectly impacted by the regulatory changes in the education sector. Education falls in the Concurrent List of the Constitution of India i.e. both the centre and the states have the authority to legislate on it. Primary and secondary education in India is subject to regulatory control, and educational institutions need to comply with central as well

Strong promoter group and experienced management ZLL is an Essel Group Company listed on National Stock Exchange, Bombay Stock Exchange and on Luxemburg Stock Exchange. Essel Group has been in the media and entertainment business for more than two decades, as the flagship channel (Zee TV) was launched in 1992. ZEE bran d has a strong recognition in the media and entertainment industry given its long and successful track record. Further, Essel Group has a presence across allied media value chains

ZLL has a comfortable capital structure marked by net gearing at 1.03x as at December 31, 2019 and healthy debt coverage indicators . As a result of acquisition of MT Edu care, a dominant player in supplementary education during FY19 and consequent recognition of goodwill the tangible networth of ZLL on a consolidated basis had deteriorated to Rs.220.37 crore as at March 31, 2019 as against Rs.331.85 crore as on March 31, 2018 .The acquisition also resulted in debt increasing to Rs. 436crore as