Ascensive Educare Ltd Management Discussions

Annexure B

OVERVIEW

INDUSTRY STRUCTURE AND DEVLOPEMENT

The training and skill development industry in India has continued to see significant growth during the year under review, driven by government initiatives such as Skill India and various state-level programs aimed at enhancing employability. The demand for skilled labour across industries has continued to increase, making vocational training crucial for bridging the skill gap. The sector continues to evolve with the integration of technology, including e-learning platforms, AI-based training modules, and virtual classrooms, which have become an essential part of the training delivery model.

OPPORTUNITIES AND OUTLOOK

Collaboration with government bodies and industry associations continues to provide a stable revenue stream and enhances credibility. There is increasing demand for upskilling and reskilling in emerging technologies like AI, Data Science, and Cybersecurity. The Company also sees continued opportunity in expansion into rural areas where there is significant demand for vocational training.

The outlook for the coming years remains positive with expected growth in both revenue and market share. The Company plans to further expand its footprint in rural areas and introduce new courses in high-demand sectors like renewable energy and digital marketing. Strategic partnerships with global educational bodies are also being explored to enhance course offerings and certification.

RISK, CONCERNS AND THREATS

Distance learning may reinforce teaching and learning approaches that are known to be less effective. Educators may be overwhelmed and unsupported in discharging their responsibilities effectively. The protection and safety of children may be harder to safeguard in remote/digital formats. Past experiences with ed-tech during the pandemic may make it harder to secure buy-in for effective use of ed-tech going forward. Changes in government policies could affect funding and collaborations.

INTERNAL CONTROL SYSTEMS AND ITS ADEQUACY

The Company continues to ensure the safety and protection of its assets through well-defined policies and their efficient implementation. The Board of the Company remains well informed regarding the operations of the Company. The Company continues to ensure the dissemination of information through proper channels in a professional manner. The management continues to take regular recommendations and advice from reliable professionals having experience in their respective fields, in order to efficiently discharge responsibilities by providing hands-on facts, details and recommendations concerning the activities covered for audit and reviewed during the year. The conclusions of internal audit reports and the effectiveness of internal control measures continue to be reviewed by top management and the audit committee of the Company.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Companys financial performance during the year under review has shown continued growth and resilience despite challenging market conditions. Revenue growth has been primarily driven by the Engineering Solutions segment, which has seen increased demand across all sectors. Operational efficiencies have been further improved through process optimization and cost control measures, contributing to a healthy improvement in profit margins as compared to the previous year.

(i) Net Sales and Other Income:

Net Sales and other income for the financial year 2024-2025 & 2025-2026 is INR 3587.88/- lakhs and INR 5905.61/- lakhs respectively.

(ii) Expenditure:

Total expenditure for the financial year 2024-2025 & 2025-2026 is INR 3247.49/- Lakhs and INR 5424.25/- Lakhs respectively.

B. Profit/Loss:

Total Profit for the financial year 2024-2025 & 2025-2026 is INR 260.91/- lakhs & INR 341.24/- lakhs respectively.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company continues to prioritize employee development and engagement. Significant investments have continued to be made in upskilling the workforce to keep pace with technological advancements. The total number of employees as of the end of the financial year stood at 158. Industrial relations remained harmonious during the year, with no significant disruptions.

The number permanent employees on the roles of the Company as on 31st March, 2026 is 65 employees.

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

The Return on Net Worth (Return on Equity) of the Company improved from 19% in FY 2024-25 to 20% in FY 2025-26. This improvement was primarily attributable to higher net profits and efficient capital allocation during the year. The Companys strategic focus on high-margin projects, coupled with cost optimization efforts, contributed to the improved returns generated on shareholders funds, which increased from 1,557.63 lakhs as at March 31, 2025 to 1,898.86 lakhs as at March 31, 2026.

DEVELOPMENT IN HUMAN RESOURCES

The Company considers its employees to be its key assets, and the management believes that the Companys growth is intrinsically linked to the development of its people. The Company maintains a conducive working environment, ensures the necessary safety measures are in place, and prioritizes employee well-being. Employees are provided with appropriate guidance and training to perform their roles effectively, resulting in a high degree of work satisfaction across the organization. Industrial relations remained cordial throughout the year, with no significant disputes reported.

ENVIRONMENT, HEALTH & SAFETY (EHS)

The Company is committed to conducting its business activities in an ethical and sustainable manner. It maintains and implements an Environmental Management System (EMS) aligned with its environmental policy and objectives, aimed at minimizing, controlling, or eliminating pollutants and waste generated through its processes, practices, and operations, thereby reducing adverse environmental impact. The Company has also adopted an adequate Occupational Health & Safety Management System to ensure conformance with applicable legal and statutory requirements, continual improvement, and the satisfaction of interested parties, including customers, suppliers, employees, and the public.

CORPORATE GOVERNANCE REPORT

As per regulation 15(2) of the Listing Regulation, the Compliance with the Corporate Governance provisions shall not apply in respect of the following class of the Companies:

a. Listed entity having paid up equity share capital not exceeding Rs. 10 Crore and Net worth not exceeding

Rs. 25 Crore, as on the last day of the previous financial year;

b. Listed entity which has listed its specified securities on the SME Exchange.

Since, our Company falls in the ambit of aforesaid exemption (b); hence compliance with the provisions of Corporate Governance shall not apply to the Company and it does not form the part of the Annual Report for the financial year 2025-26.

MEMBERS OF BOARD OF DIRECTORS AND SENIOR MANAGEMENT PERSONNEL HAVE AFFIRMED COMPLIANCE WITH THE CODE OF CONDUCT OF BOARD OF DIRECTORS AND SENIOR MANAGEMENT

Since, our Company falls in the ambit of SME Listed entity; hence compliance with the provisions of declaration signed by the chief executive officer stating that the members of board of directors and senior management personnel have affirmed compliance with the code of conduct of board of directors and senior management shall not apply to the Company and it does not form the part of the Annual Report for the financial year 2025-26.

COMPLIANCE CERTIFICATE FROM EITHER THE AUDITORS OR PRACTICING COMPANY SECRETARIES REGARDING COMPLIANCE OF CONDITIONS OF CORPORATE GOVERNANCE

Since, our Company falls in the ambit of SME Listed entity; hence compliance with the provisions of Compliance certificate from either the auditors or practicing company secretaries regarding compliance of conditions of corporate governance shall not apply to the Company and it does not form the part of the Annual Report for the financial year 2025-26.

DISCLOSURES WITH RESPECT TO DEMAT SUSPENSE ACCOUNT/ UNCLAIMED SUSPENSE ACCOUNT

During the year under review there are no shares in the DEMAT suspense account or unclaimed suspense account, hence this provision is not applicable.

DISCLOSURE OF CERTAIN TYPES OF AGREEMENTS BINDING LISTED ENTITIES (1) INFORMATION DISCLOSED UNDER CLAUSE 5A OF PARAGRAPH A OF PART A OF SCHEDULE III OF THESE REGULATIONS

During the year under review the Company has not executed certain types of agreements binding listed entities as required to be disclosed under clause 5A of paragraph A of Part A of schedule III of the Listing Obligations and Regulations Act, 2015.

CAUTIONARY STATEMENT

No reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions, predictions etc. may constitute "forward looking statements" contained herein. Certain statements contained in this document may be statements of future expectations, forecasts and other forward-looking statements that are based on managements current view and assumptions. Such statements are by their nature subject to significant uncertainties and contingencies and the actual results, performance or events may differ materially from those expressed or implied in such statements. Readers are cautioned not to place undue reliance on any forward-looking statement.