dmc education ltd Management discussions

Management Discussion And Analysis Report

The management of DMC Education Limited in its Management Discussion and Analysis Report highlight the performance of the company and involve some future aspects, which are subject to uncertainties. However precautions are expect from the Investors and other stakeholder while go through this so as to keep in mind that this is just the future expectations.

OPERATING RESULTS OF THE COMPANY

During the Financial Year under consideration the performance of the Company was a not satisfactory as the company has not able to recovered from losses of earlier year.. Standalone Net Loss for the year 2013-14 stood at Rs 120.10 Lacs as against loss of Rs 99.16 Lacs in the year 2012-13. Furthermore the standalone turnover for the year ended March 31, 2014 stood at Rs. 170.33 Lacs, as compared to Rs. 352.15 Lacs Rs. for 2012-13.

INDUSTRY STRUCTURE AND DEVELOPMENT

India is considered as the hub for the education sector and there is lot of scope lying in the future in the terms of number of students and potential of teachers. As the population of India is very high but this cant be taken as any obstacle instead this should be taken as advantage for Education sector. India stood on third position after China and United State of America in terms of total no of students enrolled students. The number of Education Institutes is also almost higher than any other country in the world. Numbers of students and people in the educations sectors are increasing day by day with a very significant rate.

HIGHLIGHT OF BUDGET 2014-15 OVER EDUCATION SECTOR

The emphases were given to boost up the sector by establishment of new IITs, IIMs and AIIMS like institution. More and more attention is towards the skilling youth with employability and other skills. Elementary education is one of the major priorities of the Government. An amount of Rs. 28,635 crore is being funded for Sarva Shiksha Abhiyan and Rs. 4,966 crore for Rashtriya Madhyamik Shiksha Abhiyan. To infuse new training tools and motivate teachers, "Pandit Madan Mohan Malviya New Teachers Training Programme" is being launched.

To take advantage of the reach of the IT, allocation a sum of Rs. 100 crore for setting up virtual classrooms as Communication Linked Interface for Cultivating Knowledge (CLICK) and online courses

HIGHER EDUCATION

The country needs a large number of Centres of higher learning that are world class, set up of Jai Prakash Narayan National Centre for Excellence in Humanities in Madhya Pradesh. Set up five more IITs in the Jammu, Chattisgarh, Goa, Andhra Pradesh and Kerala. Five IIMs would be set up in the States of Himachal Pradesh, Punjab, Bihar, Odisha and Maharashtra. Also proposes to ease and simplify norms to facilitate education loans for higher studies.

Sources: Speech of Sh. Arun Jaitly, Hn Finance Minister

PROSPECT & OUTLOOK

"No country can really develop unless its citizen are educated" by late Nelson Mandela. To increase the percentage of students going for higher education to 30 per cent by 2020, India will need 800 more universities and another 35,000 colleges, according to the Ministry of Human Resource Development (HRD). The education sector is such type of business which never fade its identity whether be it terms of services provider or business prospects also. Its growing day by day and accelerated on the path of Growth.

RISKS AND CONCERNS

The risk and concerns of the business can be seen as the SWOT analysis. The company SWOT analysis is as under

STRENGTHS

• Highly qualified and independent Directors in Board

• The services providing in the education sector is highly appreciable

• The promoters of the company are having very rich experience in the filed of Education.

WEAKNESS

• The market conditions are not suitable.

• The industry and as well as company is having very low turnout of business.

OPPORTUNITY

• The budget as presented by Finance Minister show some hope that in future there is large scope underlying for the education sector/business

• As the government announces the opening of new IITs, IIMs and AIIMS like institutions so there is opportunity hide in the form of aspirants students enrolments for coaching.

THREATS

• As the new entrepreneurs are entering the market so it is the little threat in the market.

• Though the existence of the company is very old still it become tough for the company to get real and long time investors.

• As the Foreign investors are coming in large number with huge amount of investors

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The company is having proper and adequate system for Internal control commensurate with its size and nature of the business. Management of the company is having very cordial relations with their personnel and outsiders in respect of business of the company. Internal control system is reviewed by the management at the reasonable interval to ensure the efficient working of the control system.

CAUTIONARY STATEMENT

The Management Discussion and Analysis Report is just the views of the management what they think is best for their understanding and knowledge for the time being in force. As the future is uncertain so this may results in some changes and may or may not be stand up to the mark of expectation.