Career Point Ltd Management Discussions.

IMF in its recent report in WEO April 2021 stresses on the adverse impact of education losses during the pandemic. It states that the interruption in education during the pandemic has taken a severe toll on the building of human capital, essential for sustained growth of the world. Being a responsible and one of the leading education player, our role and contribution has become all the more important in light of the pandemic. Career Point developed frameworks for continuity in students education and capacity building for excellence in deliver.

The pandemic which upended how economies operate by swiftly changing physical into digital; also accelerated the shift of delivery mode in education from brick and mortartoe learning channels. The shift is likely to lead the hybrid learning as well accepted mode of education in the post covid world where students learn th rough a rnix of in person an d on I in e activities. This is the way of combining best of traditional class room experiences with convenience and excellence of digital course deliver.

This new paradigm of learning also offers the education service providers a facility of standardization with personalization or massification with customization. The players like Career Point Ltd. expected to be on advantage due to significant presen ce in both forms of education deliveries. The company would be able to leverage its newly developed technology platforms to already established n etwork of different centers an d institutions.

While transforming lives through the power of education since year 1393, Career Point caters to the needs of a student throughout the life cycle of a student( K.G. to PhD.)with different divisions:

Career Points Test Prep division has become a benchmark in education space due to scientific & result oriented teaching methodology and individual focus with ultimate personal care. The test prep (tutorial) services are offered to students through the following modes:

Cornpany operated branches; Franchisee centers;
School iriteg rated programs; Distance learning solutions.

In responsetothe COVID 19 pandemic situations in the session 2020 21, the test prep division adapted online methods to facilitate remote learning. Technological solutions were used for effective dissemination and communication, video call lessons, offline lectures, sharing test assignments etc. Career Point also up skilled their teachers, who used to teach offline, to teach online. Preparation of Teaching Learning Materials, Mentoring and monitoring of lesson planning further helped in improving teachers engagement with stud ents in the digital classrooms.

Due to various abnormal events such as postponement of exams, session 2020 21; we created a student engagement platform arid organized a number of events especially to distress the students and ad dress their social, emotional and learning issues.

Website: www.ecareerpaint.com / eCareerPaint android app an PlayStare

Career Point has initiated innovative products to drive the next generation of education delivering process. With a goal to provide individual flexible personalized learn ing solutions which help them to learn efficiently and provide them extra edge in highly competitive scenario. It expands companys reach to students across geograph ies.

Career Points e Learning courses provide quality education to students at their own convenience with affordable cost through different technology formats of Live Tutoring, Recorded Video Courses and Online Assessments etc on Web as well as Mobile App.

- CPLive / Online Classes: Live interactive regular classes by expert faculties on App and Web with premium sen;ices

- CP eTutor / Recorded Courses: Video lectures accessible anytime on any device through App or USB drives/ Memory Cards with offline & online

- CP eTest / Online Assessments: 24*7access to online test series with realtime exam experience, detailed solution of the test and section wise analysis. It also offers all India ranking, comparison with toppers and time man age merit re port etc.

Why eCareerPoint is best Live Online Coaching from KotaRs.

9. School Education:

The Company has a strong presence in school education by offering sen;ices to K 12 Schools in multiple geographies. While laying a very strong foundation for future at early age, Career Point empowers students on their holistic development. The residential campuses under the brand Career Point Gurukul are positioned as premier integrated schools with best of the a cad e mi cs, s po rt an d extracurricular.

The National Education Policy (NEP) 2020is premised on an inclusive, comprehensive and participative approach to education that takes into account real life experiences, best practice lessons and empirical research. Career Point School followed the policyguideles duringth e academic session despite new challenges specific to Covid 19. To unleash the best potential of every child, Career Point schools further broaden their curriculum where life skills and academic content

In the year2020 21, Career Point higher education institutions added new age specialized programs in Data Science, Artificial Intelligence, Automation, Robotics and also in Renewable energies. These cutting edge programs are meticulously designed to make students professionally sound and capable of bringing in path breaking innovations. Setting up the incubator and innovation labs at Career Point Universities shall be further rewarding life jou rney from stud ent to professional.

5. Ski 11 Development * Career Point Skill Division:

Website: www. cpisd. in

Career Point Institute of Ski 11 Development (CPISD) has been set uptofulfill the growing need in India for skilled manpower across sectors and narrowthe existing gap between demand and supply of employment oriented education and training.

CPISD is approved train ing partner of Nation a I Skill Development Corporation (NSDC), Rajasthan Skill & Livelihood Development Corporation (RSLDC) and affiliated to various sector ski 11 councils. CPISD has setup learning centers in rural and urban locations to provide employability skills aligned to industry needs which en hance youth employability and proves busin ess produ ctivity.

The division offers skill development courses in multiple sectors. However, considering the sustained shift in the composite of Indian economy from agriculture to manufacturing and now towards services; CPISD aligns its course offerings accordingly. The division ensures that the students pick up essential career skillsto enhancetheir employability and entrepreneursh ipskills.

6. EarlyChildhood Education- Global Kids Website: www.globalkidsworld.in

With a mission to help each child to realize the breath of her talent; the unlimited power of mind & imagination and strength ofspiritto ensure all round development and enabling each child to cope with of life, With child centered approach, Global Kids focuses not only on developing academic skills, but also intellectual, emotional, linguistic, and moral skills that will ensure life long

In the period under review, the Global Kids centers were not operational on in person Learning due to Covid restrictions. However, various distance learning modes including digital and physical study materials continued the learningforpre school students.

Financials

In financial year 2020 21, income from operations was recorded rupees 49.2 crores on consol basis and rupees 18.1 crores at standalone level. Total revenue, including other income, was reported of rupees 57.3 crores on consol basis and rupees 39.1 crores at standalone level.

Reported EBITDA (including other income) of rupees 38.3 crores on consolidate numbers excluding Write off and Provision amounts; and rupees23.3 crores on standalone resulted EBITD A.Margin of 66.9% and 59.8%, respectively. A remarkable improvement of 2250- basis points was reported in adjusted EBITDA margin (excluding Write off / Provisions) against previous year is primarily due to resilient operating performance backed by increased e learning income and reduced costs.

Net income was reported at rupees 12.58 crores and EPS (Earning per share) of rupees 6.92 on standalone basis. At consol level, the company reported net income of rupees 14.4 Lacs and EPS of rupees 0.08 impacted on the accounts of extraordinary write off and provision. Excluding the Write off and Provision amounts; Career Point recorded net profit of Rs 22.01 Crand EPS of Rs 12.10 at consol level in FY 2020 21. Our disciplined approach towards managing companys financial capital enabled us to maintain sustained value creation for our stakeholders. As on 31 March 2021, Net worth of the company was rupees 448crores and Bookvalue pershare was ru pees 246.

Revenue from operations declined mainly on the account of lower enrollments in the classroom operations of the test prep division and reduction in financing in come resulted from provision on substandard assets. EBIT (Earnings Before Interest and Taxes) adjusted with extraordinary write off and provisions declined due to lower revenues. However, adjusted EBIT margin grew impressively by 1916 basis points y oy on the account of improved operating efficiency. Similarly adjusted net profit margin was also increased by 1382 basis points. Debtors turnover ratio and Inventory turnover ratio were declined as a result of decrease in revenue. Current ratio at 2Ox is healthy and improved further due to lower current liabilities. Debt Equity ratio at 0.16 is continued to be very superior. Return on Net Worth has been declined on lower revenues and extraordinary write off and provisions against previous financial year.

Human Resources

Career Point has demonstrated its excellence to thousands of satisfied students and their parents. All this would not be possible with out the committed and passionate people of Career Point both academic and non academic staff, wh o strive to build th is a great organization each and every day. Th ey remain committed to companys ideals of building on a strong foundation, creating a bright future and delivering great value.

Considering the pandemic year, we advocated additional priorities to period under review. The company continues to strengthen the management team and add additional talent and expertise. By 31 March 2021, the Company had total number of employees of 206. The reduction in total number of employees is a result of 3 factors; first redundancy of few positions amid pandemic, secondly open positions filled by internal hires, and third an increase in contractual staff. We remain committed to provide an agile and collaborative environment that encourages harmony, development, pride and confidence amongst CPians.

corporate social responisibility

Career Point businesses are created and continue to evolve to meet the needs of the local community in which we operate as well as those outside our community. The company realizes the need to create an act for posterity, a plan that delivers. To help people discover the joy and meaning of learning in an empowered, dignified world driven by competence, knowledge and wisdom. Institutions of Career Point nurture potential entrepreneurs, technocrats and managers for new level of lead ersh ip in their career.

Specifically in the year 2020 21, the focus increased on implementing various wellbeing and safety initiatives to control Covidl9. Career Point Career Point also understands the inopportune of giving back.

Giving back to deserving underserved candidates through financial support plannings

Risks and concerns

With having the business operations in different industry segments, Career Point is exposed to variety of external and internal risks. Though the company has a robust rnech an ism for risk management in place, however, complete risk avoidance on all the financial, operational and strategic objectives cannot be promised. Boards of directors and management of the company regularly review and aim to mitigate various risks related to regulatory, competition, geography, human resource, technology, legal, political etc. The company recognizes following key risks to its business operations which may adversely affect the financial performance of the Company:

Regulatory risk: Any changes in regulatory norms on the Formal as well as Informal Education front may significantly impact the investment made in education by the Company. The Company is continuously making an effort to upgrade its services, * ser/ed through e Learning mode of delivery. LTCR- Long Term Classroorn, STCR-Short Term Classroom advancements, expanding the product portfolio to minimize the regulatory risk, if any.

Decrease in student enrolment: With the increased competition from offline as well as online education service providers, decentralization of the students or any other reasons; the Company might face a risk of decline in student enrolments. However, the Companys focused academic pedagogy and marketing strategy (which includes direct and indirect marketing) continues to attract students across its courses.

Cyber Security Risks: Digital content of the company is very valuable assets. This intangible repository is accessible through different modes which are exposed to the cyber security risks. To mitigate the risks, Career Point constantly upgrades the appropriate security measures and creates Pressure on margins: There could be a margin pressure due to staff costs, cost of study material, high advertising and business promotions, etc, going forward. We believe the Company has sufficient tools to counter these factors, if the same arises.

Attrition: Attrition of the key resources or team members may impact the business. The Companys strategy for retaining talent involves offering competitive compensation packages, faculty training system in place for new entrants and existing fa cu Ity, a I on g with a healthy working environment.

Non*performing Assets: Surge in infections, new mutants, partial lockdowns, high commodity prices and global financial market volatility imparted downside risks to the growth of NBFC business of the company. To cover its elf for future credit risks, the company has provided higher provisions and write off wherever appropriate.

Geographical concentration: The Company derives the larger share of its revenue from Kota in Rajasthan and Northern part of India. Hence, any d isruption in operations, or competition at these locations could impact overall operations significantly. The Company is making a concerted effort to expand its operations pan India and overseas through franchisees, business associations etc and is also boosting its Technology

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 on of f in a n ci al 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 Aud it Committee. The Intern al Aud it process is d esigned 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. Hie CEO and CFO certification provided in the CEO and CFO Certification section of the annual report further discusses the ad equacy of our intern al control systems and procedures.

Outlook

With Career Points legacy of about 3 decades of educational expertise, the management is quite optimistic with next growth trajectory fuelled by hybrid mode of educational delivery. In this new paradigm of learning, Career Point is in advantageous position with advanced technology platforms under brand eCareerPoint coupled with established network of different centers / institutions across multiple geographies.

As the outbreak has redefined the conventional education, the company management also explores plans to strengthen existing capabilities while advancing on different modes i.e. integrations, diversification, and inorganic growth. The proposed restructuring sh all fu rther boost company businesses and financials by alignment as per changed market dyn arnics and improve efficiency in operations.

Cautionary Statement

This report contains forward looking statements, which may be identified by their use of words like plans, expects, ‘will1, 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.