Ace Integrated Solutions Ltd Management Discussions

FORWARD-LOOKING STATEMENT

The report contains forward-looking statements, identified by words like expects, will, foresee, hopes, confident, competent, believes, projects, estimates and so on all statement that address expectations or projections about the future, but not limited to the Companys strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. Since these are based on certain assumptions and expectations of future events, the Company cannot guarantee that these are accurate or will be realized. The Companys actual results, performance or achievements could thus differ from those projected in any forward-looking statements

India holds an important place in the global education industry. The country has over 250 million school going students, more than any other country. The Government of India has taken initiatives like National Accreditation Regulatory Authority Bill for Higher Educational and the Foreign Educational Institutions Bill. India has the largest population in the world in the age bracket of 5-24 years with 580 million people, presenting a huge opportunity in the education sector. India has one of the largest higher education systems in the world. However, there is still a lot of potential for further development in the education system.

The education market in India is expected to amount to US$ 225 billion by FY25. Indian Education sector is expanding with the help of technology. It is enabling to overcome barriers of distance and scale. Technology provides educators with new ways to tailor instruction to meet the needs of individual students. Many universities and education institutes have started using technology for various processes like Online Admission, Examination Management.

With cutting-edge technologies such as AI, ML, IoT and blockchain, Indias education sector will redefine itself in the years to come. It has also embraced the Education 4.0 revolution, which promotes inclusive learning and increased employability.

India is one of the largest education markets in the world and as per the official data of the Ministry of Education, the GER in higher education level in India was 27.1 percent, which means that around 27 out of 100 students in the eligible age group (18-23 years) were enrolled in higher education. With higher education institutes of repute being less and competition increasing every day, every good course is opting for entrance tests.

The Company is a leading trading of speciality chemicals. Speciality chemicals is knowledge chemicals which require specialized skills and knowledge in terms of chemistry and engineering capabilities, Environment, Health and Safety (EHS) management, material handling and effluent treatment.

Speciality chemicals are required in a number of end use applications ranging from the Life Sciences (Agrochemicals and Pharmaceuticals) to Fast Moving Consumer Goods (FMCG). All speciality chemicals are subject to varying degrees of regulatory requirements and the demand for these chemicals can be impacted by changes in regulations. Each Country / Region is conscious of Global warming and its impact; thereby working towards regulations that will protect their territory/geography. This effort however is frequently overshadowed by compulsive industrialisation to meet current global changes and needs.

The Size of the Indian chemicals industry is estimated at US $300 billion by 2025. (Source: www.investindia.gov.in.) Even though there are varying estimates, the share of the speciality chemicals can be considered to be at 25% of the total chemicals industry. Post Covid, global market is looking forward to India as the alternate Industrial hub as we give more reliability and assurance in our business approach. Its a handshake approach where both sides are keen to align for their own good with a WIN-WIN approach in mind.

However, China given the abundance of feedstock reserves and large production capacities, continue to offer stiff competition and challenge our growth. Resilience will be the key to garner courage and counter competition to make it possible for the world to rely on India in the years to come.

Ace integrated Solutions Limited is an Indias leading Recruitment & Examination Services Management Company, bringing together the Domain Expertise and innovative skills required for the successful execution of the project every time with highest level of security and customer satisfaction. We have over 16000 Sq. Ft. area which is well equipped with the Equipment and machinery required for the execution and production of all the deliverables involved in any of the Recruitment and Examination Project. During FY 2024-25, The Company also involves in the business of paper trading, printing and trading of speciality chemicals.

The online test preparation industry is seeing investment from technology start-ups who want to cash in on the need of student for flexi learning at lower costs. A lot of advantages make this mode of learning popular:

Removes physical barriers for greater reach and can target larger masses. The far rung areas where the student does not have access to coaching benefit the most with this mode of learning.

Flexibility in studying. Online and digital courses are downloadable, can be accessed anytime, anywhere and allow a student to multitask while studying.

The Indian online education market has a huge opportunity for businesses including:

Coverage of education: Many regions in India still lack basic education infrastructure. With internet penetrating even the remotest areas, these areas can be targeted for services.

Youth targeting: Indian youth is technology savvy and looking for ways where they can study while earning or doing other things. The student doesnt want to be confined to the four walls of their house but have an option to study anywhere.

Exams going national: Earlier each state used to conduct their own exams for entrance but with the exams going national, online test prep players can formulate courses for a whole nations audience instead of local focus.

Despite the excitement that these opportunities bring, it cannot be emphasised enough that like every business, entering the online test preparation industry is also not a cake walk. It poses many challenges which have to be curtailed to get a foothold in this industry. Some of these challenges are listed below:

Lack of awareness and access: Inspite of the industrys growth, there are millions of students who still lack awareness about these courses.

Change in learning methodology: Our school systems have always emphasised on learning within a fixed period of time and our intelligence calculated on our speed of learning. With online learning, the system has reversed.

The popular mindset still considers traditional coaching where they can see a teacher and interact physically to be better than a virtual teaching mode where a student practically studies alone.

Current examination process includes many activities including exam paper generation, distribution of exam paper to the respective centers in secure way, conducting the exam, collection of answer sheets and passing those answer sheets to examiner for checking, moderation of the answers, result declaration. Traditional examination process is time consuming and result declaration process gets delayed. Another aspect of this traditional process is it is depending on human work so it is prone to error.

Internet penetration in India is enabling things for improvement in examination process. Many educational institutes have started using Online Assessment Platform to conduct examination. Online Assessment process brings automation to overall examination process and result processing becomes easy, manual errors also get reduced drastically.

Even though internet penetration is decent in India but still there is issue for its availability and speed in some of the areas mainly at tier 2/3 cities or rural India. In case of internet failure or non-satisfactory performance, conducting online examination may become challenging.

Online assessment can be conducted with the help of online/ Offline combinational model. In case of areas where internet is a challenge, examination can be deployed on local server machine and users who want to appear for the assessment can connect to this local server. Users can complete their assessment without internet connection. As soon as assessment process is completed local server gets synced with the main server to save assessment details for the candidate.

Online assessment can be conducted with the help of setup deployed on Flash drive/ CD. Such setup can be executed on local machine to initiate the assessment. Entire assessment/ examination process would be conducted offline on local machine using local machine capability. There would be need of internet only when information is to be submitted to main server for result processing.

The Financial year 2024-25 experienced a cautious behavior by the Company after repeated years of heavy buying and overstocking. In the Year 24-25 The market growth has not been as expected due to introduction of indigenous chemical. Due to this, The margin has also significantly narrowed down.

The product market is relatively meagre and hence the company has decided to not to move forward ahead toward more stocking of such product & this domain in the upcoming year.

Following are the areas of concern and risk for the Company: -

1. Major fraud, lapses of internal control or system failures could adversely impact our business.

2. We face multiple nature of problems in our business, which may limit our growth and prospects.

The large-scale country-wide Examination Management projects are beset with multiple nature of problems, due to factors like:

3. Our growth will depend on our ability to build our brand and failure to do so will negatively impact our ability to effectively compete in this industry.

We believe that we need to continue to build our brand, which will be critical for achieving widespread recognition of our services. Promoting and positioning our brand will depend largely on the success of our marketing efforts and our ability to provide high quality services. The brand promotion activities that we may undertake may not yield increased revenues, and even if they do, any increased revenues may not offset the expenses we incur in building our brand. If we are unable to promote and maintain our brand, our business, financial condition and results of operations could be adversely affected.

4. We are required to obtain and maintain Certain Governmental and Regulatory licenses and permits and the failure to obtain and maintain such licenses and permits in a timely manner, or at all, may adversely affects our business and operations.

We are required to obtain and maintain certain approvals, licenses, registrations and permits in connection with its business and operations. There can be no assurance that we will be able to obtain and maintain such approvals, licenses, registrations and permit in the futures. An inability to obtain or maintain such registrations and licenses in a timely manner or at all, and comply with the prescribed conditions in connection therewith may adversely affect our ability to carry on our business and operations, and consequently our results of operations and financial conditions.

5. Interest rate fluctuations may adversely affect the Companys business.

6. Any unexpected changes in regulatory framework

7. Our operations could be adversely affected due to change in technology

As our company engaged in providing a key solutions and services namely technical consultancy, examination management, result processing and ITES Services and also, we have developed special solutions in the areas of enterprise on line examination system to enable digital interface and modern concept of internet based pro-metric and secured testing services. In case if we could not able to update ourselves in view of change in technology or unable to adopt the new technology, it could adversely affects our operations.

8. Changes in the Government Policy could adversely affect economic conditions in India generally and our business in particular.

9. Taxes and other levies imposed by the Government of India or other State Governments, as well as other financial policies and regulations, may have a material adverse effect on our business, financial condition and results of operations.

10. Any downgrading of Indias sovereign rating by an independent agency may harm our ability to raise financing.

Any adverse revisions to Indias credit ratings for domestic and international debt by international rating agencies may adversely impact our ability to raise additional financing, and the interest rates and other commercial terms at which such additional financing may be available. This could have an adverse effect on our business and future financial performance, our ability to obtain financing for capital expenditures and the trading price of our Equity Shares.

11. Natural calamities could have a negative impact on the Indian economy and cause Our Companys business to suffer.

India has experienced natural calamities such as earthquakes, tsunami, and floods in recent years. The extent and severity of these natural disasters determine their impact on the Indian economy. Prolonged spells of abnormal rainfall or other natural calamities could have a negative impact on the Indian economy, which could adversely affect our business, prospects, financial condition and results of operation as well as the price of the Equity Shares.

The Financial year 2024-25 experienced a cautious behavior by the Company after repeated years of heavy buying and overstocking. In the Year 24-25 The market growth has not been as expected due to introduction of indigenous chemical. Due to this, The margin has also significantly narrowed down.

The product market is relatively meagre and hence the company has decided to not to move forward ahead toward more stocking of such product & this domain in the upcoming year.

The Company maintains a system of adequate Internal Control including suitable monitoring procedures. The Internal Control System is supplemented by an exhaustive programme of internal audits and said audits are then reviewed by Audit Committee from time to time.

The Company has adopted accounting policies which are in line with the Accounting Standards and other applicable provisions of the Companies Act, 2013 read with Rule 7 of the companies (Accounts) Rules, 2014. These are in accordance with generally accepted accounting principles in India. Changes in policies, if any, are approved by the Audit Committee in consultation with the Auditors.

The Company has proper and adequate system of internal audit and control which ensures that all the assets are safeguarded against loss from unauthorized use and that all transactions are authorized recorded and reported correctly. The Company continuously improves upon the existing practices for each of its major functional areas with a view to strengthen the internal control systems. The Company has assigned internal audit function to an independent firm of Chartered Accountants. Regular internal audit and checks are carried out to ensure that the responsibilities are discharged effectively. All major findings and suggestions arising out of internal audit are reported and reviewed by the Audit Committee. The management ensures implementation of the suggestions made by the internal auditors and reviews them periodically.

The Board of Directors of the Company have adopted various policies such as Related Party Transactions Policy, Whistle Blower Policy, Policy to determine the materiality of event and such other procedures for ensuring the orderly and efficient conduct of its business for safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

During the year under review, your company has achieved gross revenue from operations of Rs. 855/- Lakhs as compared to Rs. 914/- Lakhs in the previous year. Profit before tax is Rs. (210)/- Lakhs as compared to Rs. 37/- Lakhs during the previous year. After providing for taxes and other adjustments, Profit after tax is Rs. (156)/- Lakhs as compared to Rs. 41/- Lakhs during the previous year.

Human resources are the most valued assets of the Company. They work individually and collectively contributing to the achievement of the objectives of the business. The relation between the employees and the Company remained cordial throughout the year. Your Companys corporate culture and the vision and values help unite the workforce and provide standards for how your Company conducts the business. The Company has 9 (Nine) permanent employees on the rolls of Company as on March 31, 2025.