dsj keep learning ltd share price Management discussions


STRUCTURE AND DEVELOPMENT

The higher education space in India comprises over 1,000 universities and 40,000 individual colleges operating at various levels from diploma programs to PhD programs. Yet, there remains significant room for improving the delivery of learning outcomes. For example, the current gross enrollment ratio (GER) remains at 26%, far below the 2030 target of 50% set in the National Education Policy 2020 (NEP). The sharp return of learners into the education ecosystem after the relaxing of lockdown norms, and the rising awareness and demand for industry-ready skills amongst prospective learners has this industry poised for rapid growth in the coming years.

As an organization, we view ourselves as enablers for education - partners that help educational institutions deliver on quality of learning outcomes at scale. The core-driver of this philosophy is our relentless focus on learner success, where we put the needs of our learners over everything else.

OPPORTUNITY AND THREATS

Higher Education - Enabling India’s Higher Educational Institutes

Being true to our stance of enablers for education, DSJ Keep Learning Limited is focused on the following four key areas.

• Helping institutions augment their curriculum and teaching functions through our learning partners and in-house expertise.

• Improving student experience by providing services like mentorship, placements.

• Technology through our flagship SaaS product, keeplearningOS (kOS).

• Process outsourcing for academic and business functions.

Over the past year, our process outsourcing division has managed the end-to-end admissions processes for nearly 1500+ students.

Our flagship technology product, keeplearningOS (kOS), has been rolled out to four institutions and now meets the needs of 200+ administrators/faculty members and 2300+ students. We have also diversified the functionality of our platform to now meet the needs of institutes across academic administration, student information management, finance, and human resources. As a testament to our product’s ability, kOS is also being used by us to manage our continuing education operations.

The areas of curriculum development and student experience are still in their nascent stage - we expect results for the same to come out in the upcoming financial year.

Continuing Education - Powering India’s Future Workforce

Continuing education is defined as education imparted to professionals and university graduates primarily for reskilling, upskilling, or learning for fun. With 50Mn white-collar professionals overall, and 5Mn new professionals added every year, the market in this space is massive.

The demand for continuing education in the country continues to be driven by working professionals who wish to switch or advance their careers and stay relevant given the ever-changing needs of the industry. Current ed-tech providers have largely failed in delivering on learning outcomes; our new-age enablement platform for continuing education, keeplearning. live, differentiates itself by focusing on one key objective - ensuring industry-readiness of learners and learning outcomes of our programs. Over the past one year, we have partnered with the likes of Jagdish Sheth School of Management, INSOFE, True School of Music and Simplilearn, and have brought 100+ learners into the fold of our platform.

We have also developed and launched our flagship long-form program, Career Tracks in collaboration with leading academic and industrial partners. We will continue to expand our platform with several long-form and short-form programs to cater to a larger base of learners. At the same time, we will also focus on delivering on the experience and learning outcomes of various learners enrolled on out platform.

Having laid out this opportunity, we also recognize that the education ecosystem is ripe with competitors, both large and small. In the short-term, our competition will span higher education e-learning providers, SaaS start-ups and large tech- companies that build tech-products for educational institutes, service providers for higher education institutes , and new- age universities with lean and efficient operations. While we do acknowledge that there will be competitive threats from such players, our focus on keeping learner success at the heart of what we do will continue to set us apart from the rest.

FINANCE AND ACCOUNTS

The following financial review is intended to convey the management’s perspective on the financial performance of the company at the end of the financial year 2021-22.

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013 and generally accepted Accounting Principles in India.

FINANCIAL PERFORMANCE

Profit/(Loss) before taxation (PBT) for the current financial year 2021-22 is Rs. 97.78 lacs as compared to Loss of Rs. 406.81 lacs for the previous year. During the year, other income in the year under review was Rs. 13.11 lacs as compared to Rs. 17.63 lacs in previous year. Company Fixed Assets viz. Property, Plant and Equipment were valued at Rs. 36.83 lacs at the end of the financial year compared to Rs 0.18 lacs in the previous year.

MARKET ATTRACTIVENESS / OUTLOOK

The company will continue to grow its core business and take it to larger markets. We will leverage the opportunity of serving as enablers of education for education institutes - of helping them deliver on quality of learning outcomes at scale. Within higher education, our process outsourcing vertical will focus on refining the admissions processes of our partner institutes and driving up the number of admissions we deliver on. We will diversify the product offering of our SaaS platform, keeplearningOS, and launch it across various other institutes. Within continuing education, our career enablement platform, keeplearning.live, will now include newer program offerings and serve a broader base of learners. With the highest standards of operations and a strong leadership team, we are poised to unlock future growth.

RISKS AND CONCERN

The Company has an adequate Risk Management System, and it faces the risk of competition from local players in the cities it expands. This risk is addressed by building a brand and processes to provide consumer-centric services and quality education. Also, there is a lot of IP in terms of technology that is being developed under keeplearning, which creates a moat between us and our competitors.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has a proper and adequate system of internal control to ensure that all the assets are safeguarded from loss, damage, or disposition. The Company has an independent Audit system to monitor the entire operations and the Audit Committee monitors the financial statements to ensure that transactions are adequately authorized and recorded and that they are reported correctly. The Board of Directors considers internal controls as adequate as it regularly reviews the findings and recommendations of internal audits.

SEGEMENT

The Primary Segment that your Company Operates is in Education activities and their related products.

DISCUSSION ON FINANCIAL PERFORMANCE CONCERNING OPERATIONAL PERFORMANCE

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013 and generally accepted Accounting Principles in India.

HUMAN RESOURCE DEVELOPMENT

Over the years, your Company has developed an environment, which fosters excellence in performance by empowering its people, who are always on a continuous improvement path to add value to their intellectual and knowledge resources. The Company’s success depends largely upon the quality and competence of its management team and key personnel.

There are 45 (Forty-Five) employees in the Company as of 31st March 2022. The company is currently hiring for the coming financial year and should witness good growth in this area.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Sr. No Key Financial Ratios 2021-22 2020-21 Variance Variance % Detailed Comments
1. Debtors Turnover 3.48 1.49 1.99 134.14% This increase in ratio due to increase in turnover and better trade receivable management.
2. Inventory Turnover The Company operates in the service industry and accordingly does not hold any inventory. Therefore, Inventory turnover ratio is not applicable.
3. Interest Coverage Ratio
4. Current Ratio 1.71 1.05 0.66 61.99 This increase in ratio higher due to increase in turnover and better management of assets & liabilities.
5. Debt Equity Ratio Since the Shareholders’ Equity of the Company is negative, the computed figure of Debt-Equity Ratio would not be meaningful. Therefore, the same has not been provided.
6. Operating Profit Margin (%)
7. Net Profit Margin (%) 26.43 -2320.92 2294.49 2347.35% The ratio has increased since the improved business operations of the company during the year resulted significant improvement in profitability. Moreover, the company had, in the previous year made a onetime provision for doubtful advances which dragged the profitability down
8. Return on Networth (%) Since the net worth of the Company is negative, the computed figure of Return on Equity Ratio would not be meaningful. Therefore, the same has not been provided.

CAUTIONARY STATEMENT

Statement in this Management Discussion and Analysis describing the Company’s objectives, projections, estimates, expectations, or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to risk and uncertainties. Important factors that could make a difference to the Company’s operations include raw material availability and prices, cyclical demand and pricing in the Company’s principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factors.

For and on behalf of the Board of Directors
Place: Mumbai Sanjay Vijaysingh Padode Pranav Sanjay Padode
Date: 30th August, 2022 Chairman & Managing Director Whole-time Director and CEO
DIN: 00338514 DIN:08658387