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;

Background:-

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:-

Education is not only the foundation upon which our civilization has been built, but it is also the architect of humanitys future."

Education has always been a key priority for the government and with the vision to make India a global education hub, the Union Budget 2025-26 introduces innovative initiatives. Focused on expanding medical seats, enhancing skilling infrastructure and growing IITs, these measures aim to provide more opportunities and equip youth with essential skills for the future.

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.

Announcements for a Smarter, Inclusive India

? Bharatiya Bhasha Pustak Scheme: To provide digital-form Indian language books for school and higher education. This aims to help students understand their subjects better.

? National Centres of Excellence for Skilling: Building on the July 2024 Budget, five National Centres of Excellence for skilling will be established with global partnerships to equip youth with skills. These centres will focus on curriculum design, trainer training, skills certification, and regular reviews.

? Expansion of Capacity in IITs: Additional infrastructure will be created in the 5 IITs started after 2014 to facilitate education for 6,500 more students. Hostel and other infrastructure capacity at IIT, Patna will also be expanded. Total number of students in 23 IITs has increased 100 per cent from 65,000 to 1.35 lakh in the past 10 years.

? Centre of Excellence in AI for Education: A Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of 500 crore. ? Expansion of Medical Education: The government had added almost 1.1 lakh UG and PG medical education seats in ten years, an increase of 130 per cent. In the next year, 10,000 additional seats will be added in medical colleges and hospitals, towards the goal of adding 75,000 seats in the next 5 years.

The Indian edtech market size is expected to reach US$ 30 billion by 2031, from US$ 700-800 million in 2021.

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.

? India K-12 segment growth was valued at US$ 48.9 billion in 2023. It is, currently, estimated to grow at a rate of 10.7%. Projected to reach an impressive US$ 125.8 billion by 2032.

Competitive Advantage

? In the QS World University Rankings: Asia 2025 India stands out with two universities in the top 50 and seven in the top 100, led by the Indian Institute of Technology Delhi (IITD) at 44th place.

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

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.

Increasing Investments

? The education market in India is expected to amount to US$ 225 billion by FY25.

? From April 2000-September 2024, Foreign Direct Investment (FDI) equity inflow in the education sector stood at Rs. 83,550 crore (US$ 9.62 billion).

? Indian edtech startups have received total investment of US$ 3.94 billion across 155 deals in FY22.

? The Union Budget 2025-26 allocates Rs. 500 crore (US$ 57.57 million) for a Centre of Excellence in AI for Education, aiming to enhance skills, personalize learning, and transform education.

SWOT analysis

Strengths

These factors support your success:-

? Expert faculty with industry experience

? Flexible learning options

? Strong alumni network

? Innovative curriculum design

? Strong emphasis on personalized learning

Weaknesses

These factors sabotage your success:-

? Limited marketing reach

? High operational costs

? Niche program offerings

? Outdated technology

? Inconsistent student support services

Opportunities

These factors accelerate your growth:-

? Growing demand for online learning

? Collaborations with local businesses

? Government funding for education programs

? Increased interest in lifelong learning

? Focus on skill-based training

Threats

These factors slow you down :-

? Intense competition from online platforms

? Economic downturns impacting enrolment

? Changing regulations in education

? Negative online reviews

? Rapid technological advancements

Global Education Market Size & Growth

The education market is projected to reach almost US$ 10 trillion by 2030, growing at a compound annual growth rate (CAGR) of 4.4%, driven by several key factors. In the ECE sector, governments are increasing spending through targeted policies and tax incentives. With rising awareness of the long-term benefits of early education and the growing demand for qualified educators, the sector is projected to expand at a CAGR of 7% by 2030. However, workforce shortages pose challenges to this growth. The K-12 education sector is expected to grow at 3.5% CAGR, supported by higher participation rates in emerging economies and significant investment in digital infrastructure. In developed regions, declining birth rates may limit growth potential in this sector.

Post-Secondary Education is projected to grow at 4% CAGR, driven by the increasing acceptance of online learning and government incentives for vocational education. However, rising competition from alternative credentials, strict immigration policies, and high education costs could dampen this growth.

The 6.5% CAGR projected for the Workforce Training segment is fueled by government investments in skill development and the increasing need for upskilling in response to changing labor market dynamics. Constraints on discretionary spending and economic volatility could slow growth.

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 AI, 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

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:

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

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 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 unfavourable 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.

Internal Financial Control and their Adequacy:-

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: (Amt. in Lakh)

Particulars	2024-2025	2023-2024	2022-2023
Profit Before Tax	22.19	8.93	10.17
Profit after Tax	16.32	6.57	7.00
Earning Per Share (in Rs.)	0.31	0.13	0.13

Ratios:

Sl. No. Particular	F.Y. 24-25	F.Y. 23-24	Numerator	Denominator	Variation in %	Reason
1 Current Ratio	179.28	69.91	Current Assets	Current Liabilities	156.43	Due to increase in Current Assets and decrease in Current Liabilites during the year.
2 Debt Equity Ratio	NA	NA	Total Debt	Shareholders Equity	NA	NA
3 Debt Service Coverage Ratio	NA	NA	Net Operating Income	Total debt Service	NA	NA
4 Return on Equity Ratio	0.02	0.01	Net Profit After Tax	Shareholders Equity	144.87	Due to increase in profit during the year
5 Inventory Turnover Ratio	NA	NA	Cost of Goods Sold	Average Inventory	NA	NA
6 Trade Receivale Turnover Ratio	4.55	3.85	Average Receivable*12	Income from	17.98	NA
7 Trade Payable Turnover Ratio	NA	NA	Avereage Payable*12	Net Credit Purchases	NA	NA
8 Net Capital Turnover Ratio	0.03	0.02	Sales	Net Assets	53.91	Due to increase in profit during the year
9 Net Profit Ratio	0.40	0.25	Net Profit After Tax	Total Revenue	62.67	Due to increase in profit as well as total revenue.
10 Return on Capital Employed	0.02	0.01	Earnings before Interest and Tax	Capital Employed	144.92	Due to increase in profit and capital employed as well.
11 Return on investments	0.06	-	Differce in amount of investments	Initial Investments	NA	NA

NA - Not Applicable

Cautionary Statement:-

Statements made in the Management Discussion and Analysis Report 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.