Career Point Ltd Management Discussions

In FY2023-24,the Indian economy experienced its third consecutive year of GDP growth at orabove 7%. Specifically, Indias GDP growth for FY2024 was nearly 8%. For FY2025, the growth is estimated to be around 7%, according to various sources: the Reserve Bank of India (RBI) projects 7%,the International Monetary Fund (IMF) estimates 6.8%, and the Organisation for Economic Co-operation and Development (OECD) forecasts 6.6%. This growth is primarily driven by public and private investment; as well as rising consumption. These estimates are more than double the projected global GDP growth rate of approximately 3%. The key risks to Indias GDP growth include geopolitical tensions, food inflation caused by unfavorable weather conditions, and volatile global markets.

Moving the discussion specific to the education sector, the global student population is nearly 2 billion. The global education market exceeds USD 6 trillion, with 50% attributed to school education (K-12), 25% to higher education, and 25% to other ancillary education sectors. In India, there are approximately 300 million students, with 260 million in schools and 40 million in higher education. Despite this large student population, Indias gross enrollment ratio (GER) in higher education stands at 30%, significantly lower than the 90% in the United States, 70% in the United Kingdom, and 65% in China. This gap represents a substantial opportunity for Indias higher education institutions, which include about 1,500 universities and 5,000 colleges. The key drivers for growth in Indias education sector are favorable demographics, advancements in ed-tech, the introduction of new-age courses, financial support, and policy reforms. Afew recent policy reforms are mentioned in the section - University Education.

Thetest-preparation segment in India is thriving due to the limited number of seats in high-quality educational institutions and the scarcity of job opportunities for graduates. The table below provides an overview of major competitive examinations. The combined number of candidates for these exams, nearly 30 million, highlights the significant potential of the Indian test-prep market. This market is growing at a rate of 8% to 10%, with online offerings growing almost three times faster than the offline market.

S. No	Examination	Full Form	Category	Conducting Body	Candidates (Lacs)
1.	RRB-NTPC	Railway Recruitment Board Non-Technical Popular Categories	Govt. Jobs	RRB	125
2.	SSC-CGL	Staff Selection Commission - Combined Graduate Level	Govt. Jobs	SSC	25
3.	SBI-PO	State Bank of India - Probationary Officer	Govt. Jobs	SBI	12
4.	IBPS-Clerk	Institute of Banking Personnel Selection - Clerk	Govt. Jobs	IBPS	8
5.	IBPS-PO	Institute of Banking Personnel Selection - PO	Govt. Jobs	IBPS	7
6.	NEET-UG	National Eligibility cum Entrance Test	UG Medical	NTA	24
7.	JEE-Mains	Joint Entrance Examination	UG Engineering	NTA	15
8.	CUET-UG	Common University Entrance Test	UG	NTA	13
9.	UPSC	Union Public Service Commission	Govt. Jobs Civil Services	UPSC	13
10.	GATE	Graduate Aptitude Test in Engineering	PG Engineering	IITs-IISc	9
11.	NET	National Eligibility Test	Govt. Jobs Lecturer	NTA-UGC	9
12.	IES	Indian Engineering Services	Govt. Jobs - Engg.	UPSC	3
13.	CDS	Combined Defence Services	Defence Jobs - Officers	UPSC	3
14.	NDA	National Defence Academy	Defence Jobs - Juniors	UPSC	3
15.	CAT	Common Admission Test	PG Management	IIMs	3
16.	NEET-PG	National Eligibility cum Entrance Test - Postgraduate	PG Medical	NBE	2
17.	CLAT	Common Law Admission Test	UG/PG Law	NLUs	1
18.	GRE	Graduate Record Examinations	Overseas Edu.	ETS	1.0
19.	SAT	Scholastic Assessment Test	Overseas Edu.	ETS	0.3
20.	GMAT	Graduate Management Admission Rest	Overseas Edu.	GMAC	0.3

The Joint Entrance Examination (JEE) and the National Entrance cum Eligibility Test (NEET) are the two most popular and competitive examinations in this segment. These exams also command relatively higher average fees compared to other examinations. Over the last three decades, Career Point has established a significant presence in both the JEE and NEET segments. The introduction of a new business model by the Company has further accelerated the expansion and diversification of its course offerings. This strategic shift has enabled Career Point to quickly adapt to market demands and enhance the range and quality of educational programs available to students.

JEE (Mains) 2024	Registration	Appeared
Jan Attempt	1,230,347	1,170,048
Apr Attempt	1,257,000	1,067,959
Unique Candidates	,476,557	1,415,110
Common (Jan & Apr)	924,636	822,899

 

JEE-Adv	.2019	2020	2021	2022	2023	2024
Qualify	38,705	43,204	41,859	40,712	43,773	48,248
Boys	33,349	36,497	35,410	34,196	36,264	40,284
Girls	5,356	6,707	6,449	6,516	7,509	7,964
Girls (%)	13.8%	15.5%	15.4%	16.0%	17.2%	16.5%
General	15,566	18,028	17,057	15,277	14,006	14,319
OBC-NCL	7,651	9,349	9,150	9,341	9,212	9,499
SC	8,758	7,869	7,744	7,998	11,021	13,835
ST	3,094	2,818	2,764	3,064	4,096	5,087
EWS	3,636	5,140	5,144	5,032	5,438	5,508

Throughout the year 2023-24, Career Point significantly expanded its reach and impact by extending its educational services to new markets and communities. In the test-preparation segment, the company doubled its course offerings from three to six programs. Additionally, new courses were introduced at the formal education level, all with the necessary regulatory approvals.

Career Point serves the students through the following 6 key business divisions:

1 .Test-Prep /Tutorial Services:

Website: www.careerpoint.ac.in

Career Point prepares students for various competitive examinations through its New Edge Classroom Coaching program. Under theTest-Prep division, the company offers tutorial services for the Joint Entrance Examination (JEE), the National Eligibility cum Entrance Test (NEET), and many other examinations through the following modes:

• Company operated branches;

• Franchisee centers;

• School integrated programs;

• Distance learning solutions.

Career Points results-oriented coaching methodology is scientifically designed and time-tested. It follows a step-by-step process to maximize a candidates potential for a successful career. In the post-COVID era, all classroom offerings have been supplemented with digital learning support to provide the benefits of hybrid learning. Over the last 30 years, this division has earned the trust of more than 400,000 students and their parents.

A key update for the Test-Prep division during this period was the expansion of partnerships through franchisees, referred to as "Product Distributors, as part of our new strategy to transition from being solely a service provider to an educational product company. This new business model has provided numerous short-term and long-term benefits, including faster expansion of product lines, easier scalability, and improved quality of offerings.

2. e-Learning/Digital Education

Website: www.ecareerpoint.com / eCareerPoint android app on Playstore

Career Point leverages technology to enhance learning experiences, introduce new products, and reach a broader geographic area. The courses offered through eCareerPoint provide quality education to students at their convenience and at an affordable cost. These courses utilize various technology formats, including live tutoring, recorded video courses, and online assessments. One of the unique selling points (USPs) of Career Points eLearning products is the two-way audio and video communication feature in live classes, available both on eCareerPoints mobile app and web platform.

By integrating advanced technologies. Career Point continues to expand its educational reach and improve the learning outcomes for students across various regions. Career Point believes that technology, including artificial intelligence, is a tool to amplify human intelligence, creativity, and ingenuity. The following are key offerings in Career Points technology-enhanced educational services:

• CPLive/ Online Classes: Live interactive classes conducted by expert faculty members, available on both the app and web platforms. These classes come with premium features such as recorded lectures, study material packages, and doubt sessions.

• CP eTutor/ Recorded Courses: Video lectures accessible anytime on any device through the app or via USB drives/memory cards. These courses offer both online and offline support for doubt sessions.

• CP eTest / Online Assessments: 24/7 access to online test series that provide a real-time exam experience. Features include detailed solutions for tests, section-wise analysis, all-India ranking, comparison with top performers, and time management reports.

• Vedam Learning: One-on-one live tutoring sessions with two-way interactions for personalized learning.

3. School Education:

The Company offers comprehensive services to K-12 schools across multiple geographies. These services include auxiliary education and infrastructure support. By establishing a strong educational foundation at an early age. Career Point empowers students to achieve holistic development. The residential campuses under the brand "Career Point Gurukul" are positioned as premier integrated schools, offering the best in academics, sports, and extracurricular activities.

Career Point Gurukuls where the company currently provides its services include:

• Career Point Gurukul, Kota - Residential school (www.cpgurukul.com)

• Career Point Gurukul, Rajsamand (Rajasthan) - Residential school (www.cprajsamand.in)

• Career Point Gurukul, Mohali (Punjab) - Residential school (www.cpmohali.in)

The day-boarding school campuses serviced by the company include:

• Career Point World School, Jodhpur (Rajasthan) - Day School (www.cpwsjodhpur.com)

• Global Public School, Kota (Rajasthan) - Day School (www.globalpublicschool.com

By fostering an environment that promotes critical thinking, ethical behavior, and decisive action. Career Point schools prepare students for a successful future. During the 2023-24 academic session, students at schools powered by Career Point excelled in various areas including academics, sports, life skills, and extracurricular activities. These schools provide students with the knowledge, skills, and attitudes necessary for success in both life and career. They offer a distinctive educational approach, enabling students to excel beyond academics and to act analytically, intuitively, ethically, and decisively in any environment. The schools are dedicated to integrating future educational needs, equipping students to become valuable assets to society.)

4. University Education:

Career Point provides comprehensive services to universities under its higher education division. These services encompass both auxiliary education and financial support. The universities offer a wide range of courses, from professional development programs to undergraduate and postgraduate degree-awarding courses. These programs span various fields, including Engineering and Technology, Management and Commerce Studies, Computer Applications, Law, Pharmacy, Applied Sciences, Hotel Management, and Vocational Studies.

• Career Point University, Kota (Rajasthan) -www.cpur.in

• Career Point University, Hamirpur (Himachal Pradesh) -www.cpuh.in

Courses offered by Career Point Universities
Engineering & Technology	B. Tech, M. Tech
Computer Applications	BCA, MCA, PGDCA, BSc-MSc (IT, CS)
Management & Commerce	BBA, MBA, B. Com, M. Com, PGDM
Basic & Applied Sciences	B.Sc., M.Sc., BSc-BEd
Health & Allied Sciences	BPT, MPT, MPH
Pharmacy	D. Pharma, B.Pharma, M.Pharma
Law and Governance	LLB, LLM, BA-LLB, BBA-LLB
Hotel Management	BHMCT, BSc - MSc (Hotel Management)
Arts and Humanities	BA, MA, MSW, BA-Bed.
Library Sciences	B.Lib, M.Lib, MSc (Lib. Sc.)
Education Courses	Bed., MEd.
Diploma Programs	Polytechnic, Food Production, Organic Farming, Digital Marketing, Taxation, Networking, Cyber Security, Cloud Computing, Library & Info. Science, Cyber Law, IPR, Food Production, Multipurpose Health Worker
Post PG	PhD.

Since 2012, both universities have been revolutionizing higher education by achieving outstanding results in academics, research, employability, entrepreneurship, extracurricular activities, sports, and social responsibilities. The courses at Career Point universities are meticulously designed to provide students with rewarding qualifications, practical exposure, hands-on learning, requisite expertise, and the skills needed for successful careers.

Here are some recent regulatory updates and policy initiatives from the University Grants Commission (UGC) that present significant value addition and growth opportunities for our university education division:

• Biannual Admissions: Allowing universities to admit students twice a year, providing greater flexibility and access.

• Framework for Private Universities to Set Up Off-Campus Centers:

Enabling expansion and increased reach of educational services.

• Eligibility of Four-Year Undergraduate Program (FYUP) for Doctorate Programs: Facilitating a streamlined path from undergraduate education to doctoral studies.

• Transition of Undergraduate Programs to FYUP through the Choice Based Credit System (CBCS): Promoting a flexible and interdisciplinary approach to education.

• Emergence of Open and Distance Learning (ODL) and Online Programs: Expanding access to education through convenient and innovative delivery methods.

• Capacity-Building Training for Non-Teaching Staff: Enhancing the skills and capabilities of university support staff.

• Launch of CUET - PG (Common University Entrance Test for Postgraduate Programs): Standardizing and streamlining the admissions process for postgraduate courses.

• Twinning, Joint, and Dual Degree Programs: Offering collaborative and international education opportunities for students.

By leveraging these regulatory updates and initiatives, Career Points higher education division is well-positioned to capitalize on growth opportunities and continue providing high-quality education and support services to students.

5. Skill Development - Career Point Skill Division:

Website: www.cpisd.in

Career Point Institute of Skill Development (CPISD) was established to address the growing need for skilled manpower across various sectors in India, aiming to bridge the gap between the demand and supply of employment-oriented education and training. CPISD has set up learning centers in both rural and urban locations to provide employability skills aligned with industry needs, enhancing youth employability and boosting business productivity.

CPISD empowers trainees through the power of skill development, offering courses in multiple sectors. Recognizing the sustained shift in the composition of the Indian economy from agriculture to manufacturing, and now towards services, CPISD tailors its course offerings accordingly. The division ensures that students acquire essential career skills to enhance their employability and entrepreneurial capabilities.

During the period 2023-24, CPISD trained students under the following central and state government schemes:

• PMKVY 4.0 (Pradhan Mantri Kaushal Vikas Yojana): A flagship program aimed at providing industry-relevant skill training to youth.

• Skill Hub Initiative: Focusing on creating centers of excellence for skill development.

• National Urban Livelihood Mission (NULM): Targeting skill development and livelihood promotion in urban areas.

• Seekho aur Kamao (Learn and Earn) Project: A skill development initiative specifically for minority communities.

• Hunar se Rozgar Tak Training Program: Designed to provide skill training and employment opportunities in the hospitality sector.

• National Skill Development Corporation (NSDC) Partnership:

Collaborating with NSDC to deliver high-quality skill training programs.

Through these initiatives, CPISD continues to play a crucial role in equipping the Indian workforce with the skills required to thrive in a rapidly evolving economy, thereby contributing to the overall development and growth of the nation.

6. Early Childhood Education - Global Kids

Website: www.globalkidsworld.in Academic Pedagogy: http://bit.do/gkindia

With a mission to help each child realize the breadth of their talents, the unlimited power of their mind and imagination, and the strength of their spirit, Career Point provides early childhood education through a chain of play-schools under the brand Global Kids. These play-schools are dedicated to ensuring all-around development and equipping each child to cope with the ever-growing challenges of life.

Global Kids employs a child-centered approach, focusing not only on developing academic skills but also on nurturing intellectual, emotional, linguistic, physical, social, and moral skills. This holistic approach ensures lifelong success for the new generation. The curriculum at Global Kids is designed to inspire curiosity, creativity, and a love for learning. Through engaging activities and interactive learning experiences, children are encouraged to explore and discover their interests and potential. By prioritizing a well-rounded education, Global Kids ensures that children develop the essential skills and confidence needed to thrive in an ever-changing world.

Financials

In the financial year 2023-24, Career Point recorded an income from operations of Rs 101.6 crores on a consolidated basis, reflecting a year-on- year growth of 19%. On a standalone basis, the income from operations was Rs 62.6 crores, representing a year-on-year growth of 20.6%. This increase in operating income was driven by accelerated enrollment growth across various education verticals and an increase in financing income. Total revenue, including other income, amounted to Rs 114.5 crores on a consolidated basis and Rs 71.5 crores on a standalone basis.

The EBITDA (including other income) was Rs78.7 crores on a consolidated basis and Rs 45.5 crores on a standalone basis, resulting in EBITDA margins of 68.7% and 63.7%, respectively. These healthy EBITDA margins were due to improved operational efficiency in both the education and financing divisions. The previous years consolidated numbers were negatively impacted by a one-off provision related to a subsidiarys loan account affected by the COVID-19 pandemic. Flowever, excluding this one-off provision, the net interest margin in the financing division improved in FY2023-24.

The net profit for the year was Rs 57.1 crores, with an EPS (Earnings Per Share) of Rs 31.37 on a consolidated basis, reflecting robust year-on-year growth of 377.4%. After adjusting for the one-off provision of Rs 39.58 crores and related deferred tax assets of Rs 9.96 crores in the previous years consolidated financials, the increases in EBITDA and net profit were 30% and 37%, respectively. As of March 31,2024, the companys net worth was reported at Rs532 crores, with a book value per share of Rs 292. The board has proposed a final dividend of 10% on the face value, resulting in a total dividend of 30% for FY2023-24.

Revenue from operations increased due to improved enrollments in the education division and higher interest income in the financing division. An additional boost in total income was observed from other income, which included a capital gain of Rs 3.5 crores from the sale of assets. Compared to revenue growth, a lower growth in operating expenses

Key Ratios (Consolidated Financials)
	FY2022-23	FY2023-24
Revenue from Operations Growth (%)	57.4%	19.0%
EBIT Margin	18.5%	65.2%
Net Profit Margin	13.3%	49.8%
Adjusted Net Profit Margin*	45.6%	49.8%
Debtors Turnover (times)	4.6	8.3
Inventory Turnover (times)	45.8	61.3
Current Ratio (times)	14.0	7.1
Debt Equity Ratio (times)	0.04	0.07
Return on Net Worth (%)	2.5%	11.4%
Adjusted Return on Net Worth (%)*	8.7%	11.4%
* Adjusted the effect of one-off provision in NBFC subsidiary

resulted in better operating margins than the previous year.

In the year 2022-23, Srajan Capital Limited, a subsidiary of the company, booked a provision of Rs 39.58 crores related to one borrowers account, which negatively impacted the consolidated EBITDA. However, the EBITDA margin improved in FY2023-24 even after adjusting for the effect of the one- off provision. The net profit stood at Rs 57.1 crores with a net margin of 49.8%, compared to Rs 12 crores of net profit and a 13.3% net margin in the previous financial year (FY2022-23). Excluding the one-off provision, the net profit and net margins for fiscal 2022-23 were Rs 41.6 crores and 45.6%, respectively.

The debtors turnover ratio and inventory turnover ratio increased due to higher revenue. The current ratio declined slightly from 14x to 7x due to reduced short-term advances given by the company. The debt-to-equity ratio remained superior at 0.07. The return on net worth reached double digits due to higher profitability during the period under review.

Human Resources

Career Point has earned the trust and satisfaction of thousands of students and their parents, showcasing its excellence in education. None of this would be possible without the dedicated and passionate people of Career Point—both academic and non-academic staff-who work tirelessly to build this organization every day. They uphold the companys ideals of fostering a strong foundation, shaping a promising future, and delivering exceptional value.

The company maintains a strong focus on talent acquisition across its divisions. As of March 31,2024, Career Point employed a total of 182 staff members. This number reflects a decrease compared to the previous year, attributed to internal promotions and the utilization of contractual staff to fill new positions. Our innovative product business model also enables growth with fewer direct employees on the company payroll. We remain committed to fostering an agile and collaborative work environment that promotes unity, personal development, pride, and confidence among all CPians.

Corporate Social Responsibility

Career Point management takes great pride in reaffirming our commitment to social responsibility, a cornerstone of our organizational values. We have actively participated in various community-driven initiatives and philanthropic endeavors, ensuring that education remains accessible to all, irrespective of socio-economic backgrounds.

In our Environmental, Social, and Governance (ESG) initiatives. Career Point University Kota recently achieved platinum rank as a Green University¹ for its significant contributions to promoting green energy and sustainability efforts. This accreditation underscores our dedication to environmental stewardship and our ongoing commitment to preserving the planet for future generations.

We are particularly delighted by the positive impact we have had on the

Enrollments	FY2015	FY2016	FY2017	Fy2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024
Total	27,366	30,857	29,086	29,509	29,642	25,623	25,011	18,192	18,584	19,658
Tutorial Division	22,412	23,010	21,057	18,235	15,162	13,024	12,251	8,041	6,442	7,090
Formal Education	4,954	7,847	8,029	11,274	13,772	11,814	12,760	9,810	12,142	12,568
Pre-School					708	785		41
Tutorial Enrollments Split
Branches-LT CR	12,946	13,688	10,689	5,836	5,100	3,023	8,567	5,050	2,303	1,567
Branches-ST CR	1,333	1,011	625	516	121	15
Franchisees-LT CR	1,57	1,395	1,605	2,049	3,512	3,917	1,541	1,505	3,091	4,821
Franchisees-ST CR	87	52		138		33
School Asso.		458	1,801	3,726	2,523	3,007	2,143	1,486	1,048	702
Distance Learning	6,470	6,406	6,337	5,970	3,906	3,029
Formal Break-up
Higher Education	2,327	3,455	3,738	4,822	5,706	6,505	6,203	,803	5,123	5,248
School Education	2,627	3,372	3,451	4,142	3,752	3,688	3,429	2,882	2,544	2,821
Vocational Edu.		1,020	840	2,310	4,314	1,621	3,128	1,125	4,475	4,499

LTCR - Long Term Classroom, STCR - Short Term Classroom

lives of millions of learners across diverse geographical locations. Through our educational programs and platforms, we have empowered students to realize their full potential, thereby making a lasting impact on society. Our passion for education continues to drive us forward, and we are steadfast in our commitment to positively influencing the lives of countless more learners in the years ahead.

Furthermore, Career Point recognizes the importance of giving back to society. This commitment is reflected in our initiatives: reflected in our initiatives:

• Giving back to deserving underserved candidates through financial support programs: Providing opportunities for those in need to access quality education andtraining.

• Giving back to the environment through several eco-friendly initiatives: Undertaking projects aimed at conservation, renewable energy adoption, and sustainable practices.

• Giving back to communities through healthcare, employment, and educational projects: Supporting initiatives that enhance healthcare access, promote employment opportunities, and advance educational outcomes in local communities.

As we look to the future, Career Point remains dedicated to leveraging our resources and expertise to create meaningful change and contribute positively to society at large.

Risks and Concerns

With business operations spanning across various industry segments, Career Point is exposed to a variety of external and internal risks. While the company has robust mechanisms in place for risk management, complete risk avoidance across all financial, operational, and strategic objectives cannot be guaranteed. The board of directors and management regularly review and aim to mitigate various risks related to regulatory, competition, geography, human resources, technology, legal, and political factors. The company recognizes several key risks to its business operations that may adversely affect its financial performance:

• Market Dynamics: Career Point operates in an emerging and dynamic market that is susceptible to a wide range of factors, making it challenging to predict future operational results. Consequently, management continues to expand operations into more sustainable and annuity-driven businesses.

• Regulatory Risk: Changes in regulatory norms affecting the Education and Financing divisions could significantly impact the companys investments. Career Point continually upgrades its services, diversifies delivery channels, leverages technological advancements, and expands its product portfolio to mitigate potential regulatory risks.

• Decrease in Student Enrollment: Increased competition from offline and online education service providers, student decentralization, or other factors may lead to a decline in student enrollments. Post-COVID, many Ed-tech companies are entering the classroom coaching space. Flowever, Career Points focused academic pedagogy and comprehensive marketing strategy, including direct and indirect approaches, continue to attract students across its formal and informal education divisions.

• Cybersecurity Risks: The companys digital content represents valuable assets vulnerable to cybersecurity risks across various access modes. Career Point addresses these risks by continuously enhancing security measures and fostering a heightened risk-aware environment at all organizational levels.

• Pressure on Margins: Factors such as staff costs, study material expenses, high advertising and business promotion costs, among others, may exert pressure on margins going forward. Flowever, the company believes it possesses adequate tools to mitigate these factors should they arise.

• Attrition: Attrition among key resources orteam members could impact business continuity. Career Points strategy for talent retention includes offering competitive compensation packages, implementing a structured faculty training system for new and existing staff, and cultivating a supportive work environment.

• Non-performing Assets: Financial defaults due to various reasons and global financial market volatility pose risks to the growth of the companys NBFC business. To mitigate future credit risks, Career Point maintains higher provisions and write-offs where appropriate.

• Geographical Concentration: The company derives a significant portion of its revenue from Rajasthan and Northern India, which exposes it to operational disruptions or competitive pressures in these regions. Career Point is actively pursuing initiatives to expand its footprint pan-India and overseas through franchise partnerships, business collaborations, and enhanced technology offerings in its Distance Learning segment.

Internal Controls & Systems

The Company has proper and adequate internal control systems, which ensure that all assets are safeguarded against loss from unauthorized use and all transactions are authorized, recorded and reported correctly. The Management continuously reviews the internal control systems and procedures to ensure orderly and efficient conduct of business. Internal audits are regularly conducted, using external and internal resources to monitor the effectiveness of internal controls. The Company deploys a robust system of internal control that facilitates the accurate and timely compilation of financial statements and Management reports; ensures regulatory and statutory compliance; and safeguards investors interests by ensuring the highest level of governance and periodical communication with investors.

M/s. BDG & Associates., Chartered Accountants is the internal auditor of the Company, who conducts audit and submit quarterly reports to the Audit Committee. The Internal Audit process is designed to review the adequacy of internal control checks in the system and covers all significant areas of the Companys operations. The Audit Committee reviews the effectiveness of the Companys internal control system. The CEO and CFO certification provided in the CEO and CFO Certification section of the annual report further discusses the adequacy of our internal control systems and procedures.

Outlook

With its robust educational product strategy, Career Point continues to gain momentum and make a significant impact in the education sector by expanding access to high-quality education. The near-term objective for our education business is to accelerate revenue growth while sustaining current profitability levels in the dynamic education landscape.

In our financing division, we project advancement driven by improved net interest margins and growth in Assets Under Management (AUM). A key priority for our finance business is digital transformation, aimed at aligning our services with digitally-driven consumer behavior and tapping into larger geographical markets.

This strategic focus not only aims to enhance operational efficiency but also to cater more effectively to the evolving needs of our stakeholders. By expanding our educational and financial offerings along with proactively addressing the business risks through strategic initiatives and robust risk management practices, Career Point is poised to capitalize on emerging opportunities, sustain its growth trajectory, and reinforce its position as a leader in both theeducation and financing sectors.

Cautionary Statement

This report contains forward-looking statements, which may be identified by their use of words like plans, expects, will, anticipates, believes, intends, projects, estimates or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the Companys strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements.

Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements could thus differ materially from those projected in any such forward looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.