arihant institute ltd Management discussions

A. Industry structure and developments:

Indias education sector offers a great opportunity with approximately 29 per cent of Indias population being between the age group of 0-14 years. Indias higher education segment is expected to increase to US$ 35.03 billion by 2025.

India has one of the largest networks of higher education institutions in the world with more than 1000 Universities and around 50,000 colleges. The Central Government plans to disburse US$ 1 billion to states for introducing skill development initiatives.

There more than 15,000 Industrial Training Institutes in the India. In October 2017, in order to boost the Skill India mission, two new schemes, SANKALP and STRIVE were launched with an outlay of Rs 6,655 crore (US$ 1.02 billion). Revitalising Infrastructure and Systems in Education (RISE) by 2022 was announced in union budget 2018-19 with an outlay of Rs 1 lakh crore (US$ 15.44 billion) for four years.

The Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in the education sector through the automatic route since 2002.From April 2000 to September 2020, Foreign Direct Investment (FDI) equity inflows stood at US$ 3,849.20 million.

In May 2018, the Ministry of Human Resource Development, Government of India launched SamagraSiksha scheme with the aim of achieving holistic development of school education in the country.

B. Opportunity and Threats:

Opportunities:

Increase in the demand of education

Growing role of Private Sector in education industry

Recent government efforts to promote the education industry.

Threats:

Political Instability

Competition

High Faculty Turnover

Increasing trend of Abroad Studies

Covid-19 Outbreak and lockdown

C. Segment-wise or product-wise performance:

The Company operates in a single segment of activity viz. education and hence the segment reporting is not applicable to the Company.

D. Outlook:

The company is already providing coaching for C.A., C.S., CWA, ACCA, CPA etc. The outlook for the coming years looks more promising forprofessional courses like C.A., C.S. etc. The Company is also looking for expansion of their business by providing coaching in the field of GPSC and UPSC and other competitive exam preparations in the upcoming years. The Company is positive with the future developments and endeavors to do its best to capitalize the opportunities in this sector.

E. Risks & Concerns:

The company is engaged in Tutoring and Coaching Segment and providing Higher, Professional & Vocational Education. The following section discusses the various aspects of enterprise-wide risk management.

Readers are cautioned that the risk related information outlined here is not exhaustive and is for information purpose only. The key risks that may impact the Companys Business include:-

a) Changes in regulatory Environment:

Despite being a regulated and competitive sector, Indias education sectors are one of the last theatres for the liberalization debate. Planners and educationalists are confronted with the failure of public initiatives to achieve universal coverage. The increasing trend of preference to study in abroad is also a threat to the Sector.

b) Increased Competition:

The Education Industry in India has witnessed the entry of various new players which was resulted in heightened competition. There is greater participation in the provision of higher education, which should be spread through all levels of Education.

c) Covind-19 outbreak:

During the year 2020-21, the whole world has witnessed the outbreak of novel Corona virus which has affected all industries around the world including education sector.

Covid-19 is predicted to be the most concerned risk factor for the education industry for the upcoming years as it has forced the education institutes to remain closed to avoid the chances of infection among children and youth.

F. Internal Control Systems and their Adequacy:

There are well-established procedures for internal controls for operations of the Company. The finance & audit functions are well equipped with professionally experienced qualified personnel & play important roles in implementing the statutory obligations. The company has constituted Audit Committee for guidance and proper control of affairs of the Company. To ensure quality of delivery, the Company is now focusing mainly Higher & Vocational Education.

G. Financial Performance:

(Amt. in Rs.)

Particulars	Year 2021-22	Year 2020-21
Total Revenue	1,46,262	3,07,706/-
Total expenses	16,39,140	15,81,839/-
Profit / (Loss) before Taxation	(14,92,878)	(12,74,133)/-
Provision for taxation - For Current Tax	00/-	00/-
Provision for taxation - For Deferred Tax	(2,79,576)	(1,20,726)/-
Profit / (Loss) after Taxation	(12,13,302)	(11,53,407)/-

H. Material Development in Human Resources:

The efforts for development of human resource have been continued with greater emphasis on training and development programs. The Company enjoyed healthy and cordial relations with the employees of the Company. A detailed performance evaluation system is in place and remuneration and rewards are strongly liked to performance indicators.

The Company has laid down various plans to attract and retain skill manpower at all levels. Your directors place on record their sincere appreciation in respect of the services rendered by the employees of the Company at all levels.