Golden Crest Education & Services Ltd Management Discussions

Pursuant to Listing Regulation of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 aligned with Companies Act, 2013, the Management Discussion & Analysis Report for the year under review is given below;

Backeround:-

The Management Discussion and Analysis Report sets out the developments in the business, the Companys performance since the last Report and the future outlook. This Report is part of the Directors Report and the Audited Financial Statements, forming part of the Annual Report. However, certain statements made in this Report relating to the projections, outlook, expectations, estimates, etc., may constitute "forward looking statements" within the meaning of applicable laws and regulations and may differ from actual. Several factors could make a significant difference to the Companys operations, including climatic conditions, economic conditions affecting demand and supply, government regulations, revision in government policies, taxation and natural calamities over which the Company does not have any control.

Indian Economy and Outlook:-

The education sector in India was estimated to be worth US$ 117 billion in FY20 and is expected to reach US$ 225 billion by FY25. India has over 250 million school-going students, more than any other country. India had 43.3 million students enrolled in higher education in 2021-22 with 22.6 million male and 20.7 million female students. According to UNESCOs State of the Education Report for India 2021, the Pupil Teacher Ratio (PTR) at senior secondary schools was 47:1, as against 26:1 in the overall school system. The Number of colleges in India reached 50,734 in FY24 (as of March 4, 2024) and 43,796 in FY21, up from 42,343 in FY20. The number of universities in India reached 1,265 in FY24 (as of March 4, 2024), up from 760 in FY15.

India had 43.3 million students enrolled in higher education in 2021-22 with 22.6 million male and 20.7 million female students, as against 41.3 million students enrolled in higher education in 2020-21, with 21.2 million male and 20.1 million female students. In 2022-23, there are 8,902 total AlCTE-approved institutes in India. Out of these 8,902 institutes, there are 3,577 undergraduate, 4,786 postgraduate and 3,957 diploma institutes.

The Indian edtech market size is expected to reach US$ 30 billion by 2031, from US$ 700-800 million in 2021. According to KPMG, India has also become the second largest market for E-learning after the US. The online education market in India is expected to grow by US$ 2.28 billion during 2021-2025, growing at a CAGR of almost 20%.

India holds an important place in the global education industry. India has one of the largest networks of higher education institutions in the world. However, there is still a lot of potential for further development and improvement in the education system. Indias broad range of fiscal, monetary and health responses to the crisis supported its recovery and, along with economic reforms, are helping to mitigate a longer-lasting adverse impact of the crisis. The overall, sharp rebound and recovery of the economy is reflective of Indias strong resilience. Indias economic growth in the current year is estimated to be 7.2 per cent highest among all large economies.

1. ROBUST DEMAND

• India has the largest population in the world in the age bracket of 5-24 years with 580 million people, presenting a huge opportunity in the education sector.

• India has over 250 million school going students, more than any other country.

• The education sector in India was estimated to be worth US$ 117 billion in FY20 and is expected to reach US$ 225 billion by FY25.

• Applications for the Study In India¹ programme increased by 146% in 2021.

2. COMPETITIVEADVANTAGE

• Large English-speaking population allows easy delivery of educational products. India was ranked 52^nd out of 111 countries in the English Proficiency Index 2022.

• Nine Indian institutes - the Indian Institute of Science (lISc) in Bengaluru and eight Indian Institutes of Technology (NTs) - were among the top 500 universities in the QS World University Rankings 2023.

3. POLICY SUPPORT

• 100% FDI (automatic route) is allowed in the education sector in India.

• The Government of India has taken initiatives like National Accreditation Regulatory Authority Bill for Higher Educational and the Foreign Educational Institutions Bill.

The education and training sector in India has witnessed some major investments and developments in the recent past. Some of them are:

S Under the Interim Budget 2024-25, the Department of School Education & Literacys budget allocation for FY 2024-2025 is Rs. 73,498 crores (US$ 8.82 billion), the highest amount ever.

S In December 2023, UNICEF, and its global partnerships platform Generation Unlimited (also known as YuWaah in India) partnered with key organisations committed to working towards a green future for children and young people as a part of the Green Rising India Alliance.

S Prime Minister Mr. Narendra Modi, in July 2023, laid the foundation stone for three new buildings at Delhi University — the faculty of technology, a computer centre, and an academic block.

S In September 2023, the government launched the Skill India Digital (SID) platform to make skill development more innovative, accessible, and personalised with a focus on digital technology and Industry 4.0 skills.

S In September 2023, a three-year partnership called "Education to Entrepreneurship: Empowering a Generation of Students, Educators, and Entrepreneurs" was launched by the Ministry of Education and the Ministry of Skill Development and Entrepreneurship, and Meta in New Delhi.

S In August 2023, Union Minister of Education Mr. Dharmendra Pradhan unveiled the National Curriculum Framework for School Education (NCF), which has been developed based on the National Education Policy (NEP), 2020 vision. As per that, in order to guarantee that students have adequate time and opportunity to perform successfully, board exams will be offered at least twice a year.

S In August 2023, Amazon India launched the third edition of Machine Learning (ML) Summer School. This program aims to provide students with the opportunity to learn key ML technologies from Scientists at Amazon.

S In July 2023, the Indian government announced a new free Al training course as part of its India 2.0 program. Developed in a collaborative effort between Skill India and GUVI, the program proudly holds accreditations from the National Council for Vocational Education and Training (NCVET) and I IT Madras.

V In November 2022, the Indira Gandhi National Open University (IGNOU) launched an online MA programme in Sustainability Science.

V Under the revised curriculum as per the provisions of the National Education Policy (NEP) 2020, students of BA-LLB (five-year integrated law course) of Allahabad University (AU) will be taught about disaster management.

J A total of 100 Indian institutions have been qualified for the Times Higher Education World University Rankings 2023, up from 63 in 2020.

V India had 89 universities in Times Higher Education Emerging Economies University Rankings 2022, behind Russia with 100 and China with 97.

Objectives of New Education Policy

The new education policy 2024 aims to bring holistic learning, practical oriented syllabus, job centric skill development, technology, quality education in the classroom environment. Candidates can go through the objectives of the New Education Policy stated below.

> Recognize and grow each childs potential

> Design literacy and numeracy learning among children

> Present flexible learning options

> Fund in a public education system

> Strategize quality education

> Bind children to Indian culture

> Execute top-notch research

> Teach reasonable control and empower students

> Develop a transparent Education Policy

> Emphasize the application of technology

> Emphasise evaluation of students performance

> Introduce different languages

> Develop students creativity and logical thinking abilities Education Overview in Global Market

Educational services are any activity partly or entirely for education, including teaching and learning, research activities, apprenticeship training, and training workshops. Changed admission policies, greater legislative oversight, the expansion of Al, and alternative curricula are among the trends to watch in higher education in 2024. This year, the focus is also returning to fundamentals, such as engagement, retention, well-being, and learner experiences.

The global government education market was valued at $558.49 billion in 2023 and is forecast to grow at a compound annual growth rate (CAGR) of 17.8% between 2024 and 2030. A driving force in the education sector is educational technology, or edtech, which encompasses companies that develop tech solutions to enhance teaching and improve learning. In 2023, billions of dollars were invested in hundreds of tech startup companies worldwide. Edtech venture cap investment reached $3 billion last year, with North America contributing half of the global edtech funding. The edtech market is forecast to grow at a CAGR of 16% from 2022 to 2026.

The global e-learning market was worth around $332.6 billion in 2022 and is expected to grow at a CAGR of 9.1% to reach $686.9 billion by 2030. As the demand for e-learning grows, the market is expected to become even more competitive

SWOT Analysis

Strengths of the Education Sector

The education sector has many strengths that give it a competitive edge and a positive impact, such as high demand for quality education and lifelong learning, diverse and innovative offerings, strong reputation and brand recognition, qualified staff and faculty, collaborative partnerships and networks, and social and economic contribution. These attributes enable the sector to stand out in the market, providing quality services that meet customer needs.

Weaknesses of the Education Sector

The education sector has weaknesses which limit its potential and performance, such as high costs and low profitability, limited access and inclusion, outdated infrastructure and technology, inconsistent quality and standards, high turnover and attrition, as well as resistance to change and innovation.

Opportunities for the Education Sector

The education sector has a variety of opportunities to grow and improve its services and outcomes, such as increasing demand for online and hybrid learning, expanding into new markets and segments, developing new products and services, leveraging data and analytics, enhancing customer satisfaction and loyalty, and attracting and retaining talent. All of these initiatives can help the education sector reach its goals.

Threats to the Education Sector

• The education sector is confronted with numerous threats that could jeopardize its sustainability and success, such as competition from alternative providers and platforms, disruption from emerging technologies and trends, regulatory changes and compliance issues, economic downturns and budget cuts, social and environmental issues, and cyber security and data breaches

• The education sector is confronted with numerous threats that could jeopardize its sustainability and success, such as competition from alternative providers and platforms, disruption from emerging technologies and trends, regulatory changes and compliance issues, economic downturns and budget cuts, social and environmental issues, and cyber security and data breaches.

• In truth instead of working on the development of skill sets of the students, technical education has become a classroom study of various theories and principles of engineering which is more often, impracticable.

Business Segment:

The Company is into the business of Consultancy services and other allied services. Currently, the company is engaged in providing consultancy Services, including Operations Advisory, Strategy Advisory, HR Advisory, Educational Advisory to the educational institutes for establishment, development, promotion E-learning, E- Business, Online education, Technical and Non - Technical Centre and other allied services of education. The company operates mainly in Indian Market.

Outlook:

Consultancy opportunities will increase in areas like educational consultancy, management consultancy, financial consultancy, information technology, market research etc. The consultant will be more professional, demanding and seeking tangible results. The Company will get repeat orders by providing quality service followed by service guarantee. The client feedback in the market will continue to be the determinant for selection of consultants.

With the accelerated pace of economic reforms and liberalization, powerful winds of change are sweeping through Indian organizations. The consultant must be proactive to the changes acting as an agent of change. He must adopt new work culture, attitude and ethics and constantly try to achieve competitiveness.

The Company has objective to develop a new value system in which total commitment to the client is the ultimate objective. The value system must ensure client-satisfaction in delivering the services, maintaining work schedules, and most importantly, focusing on the clients interest at all times.

The consultant will be increasingly called upon to get involved in the implementation of recommendations. In short, the relationship between a consultant and his client will be strong, intimate, facilitating and mutually beneficial.

Risk and Concerns:-

No industry is free from normal business risk, concern, uncontrollable and unfavorable changes.

Risk can come from uncertainties in financial markets, legal liabilities, credit risk, accidents, natural causes and disasters. Your company is reviewing and putting in place appropriate processes to safeguard it against such type of risks and uncertainty.

Uncertainties in business offer opportunities and downside risks. Consequently, the Company recognizes the importance of well-structured system to identify and manage the different elements of risk.

Pressure on margins, high manpower and infrastructure cost, availability of substitutes, higher overheads, are some factors which could impact adversely especially as we strive to tap into the competitive markets.

Internal Financial Control and their Adeauacv:-

The Company has in place well-defined internal control mechanisms and comprehensive internal audit programs with the activities of the entire organization under its ambit.

Human Resources:-

Human Resources Development envisages the growth of the individual in tandem with the organization. It also aims at the upliftment of the individual by ensuring an enabling environment to develop capabilities and to optimize performance.

The Company lays strong emphasis on attracting and retaining the best talent including their training and skill development. The Management has recruited and continues to recruit employees from different fields for smooth functioning of the Company. HR policies of your company are being aligned with the current trends in the market.

Our professionals and employees are our most important assets. We believe that the quality and level of service that they deliver is a huge contributing factor in growth and development of the Company. Further, for better management certain alterations were made in the top management and other hierarchies in the Company.

Discussion of Financial Performance:-

Directors of your Company are very hopeful to build up the performance of the company and post better results in the forthcoming financial year and to add value to the shareholders. The Company is hopeful of improving its turnover and bottom line and hopeful of posting better revenue ahead. Financial Highlights with respect to Operational Performance is as under:

Ratios:

NA - Not Applicable Cautionary Statement:-

Statements made in the Management Discussion and Analysis Report¹ describing the Companies objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement important factors that influence the Companys operations, include global and domestic supply and demand conditions. We undertake no obligation to publicly update any forward looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward looking statements that speak only of their dates.