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;

Rackground:-

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 Ont.look:-

Indias economy is poised for a rebound after enduring a second wave of COVID-19 infections this year that further constrained activity and took a heavy toll on its people. 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 9.2 per cent highest among all large economies.

Education Overview:-

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. With almost 27% of Indias population in the age group of 0-14 years, Indias education sector provides numerous opportunities for growth.

In September 2021, The National Commission for Women started a country-wide capacity building and personality development programme for women undergraduate and postgraduate students in an effort to make them more independent and job-ready. The commission will partner with central and state institutions to prepare women students for the job market by providing sessions on personal capacity building, professional career skills, digital literacy and effective use of social media.

Highlights of the New Education Policy:

• Except for medical and law colleges, all higher education institutes will be governed by a single regulator.

• Termination of MPhil. Courses

• Application and knowledge-based board examination implemented.

• The same norms will govern both the public and private higher education institutes.

• Teaching in Mother tongue or regionally made compulsory till class 5 ^th

• Common entrance exams for higher education institutes and universities.

• Core concepts to be given more focus in the school curriculum.

• Vocational education will begin with training from class 6th.

• 10+2 study culture discontinue and new structure of 5+3+3+4 will be followed, subjecting to the respective age group of 3-8, 8-11, 11-14, and 14-18 years.

Opportunities and Threats:-

Opportunities: - The external environmental analysis may reveal certain new opportunities for gain and growth of the system:

To liberalise the sector, the Government has taken initiatives such as the National Accreditation Regulatory Authority Bill for Higher Educational and the Foreign Educational Institutions Bill.

The government schemes of Revitalising Infrastructure and System in Education (RISE) and Education Quality Upgradation and Inclusion Programme (EQUIP) are helping the government tackle the prominent challenges faced by the education sector. In February 2022, the central government approved the "New India Literacy Programme" for the period FY 2022-27 to cover all the aspects of adult education to align with National Education Policy 2020 and Budget Announcements 2022-23.

The Government of India has taken several steps including opening of IITs and IIMs in new locations as well as allocating educational grant for research scholars in most government institutions. Furthermore, with online mode of education increasingly being used by several educational organisations, the higher education sector in India is set for major change and development in the years to come.

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. Large English-speaking population allows easy delivery of educational products.

Threats:- The changes in the external environment may also present threats to the system as discussed below:

• Indecisive And Improper Counselling:

Many students who join technical education are a result of walking mindlessly along with the herd, or strict unreasonable parents. Usually, they picked up a branch at random, which has a so called MORE SCOPE" at the time. We interacted with several students and parents, in a number of the technical institutes at different parts of the country, and realized that hardly anyone had given serious thought, or had been provided with proper counsel to choose the right branch as per choice and interest of the aspirant.

• Impracticable Course Patterns and Teaching:

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. The course pattern involves such a theoretical approach that most of the students who could have genuinely developed an interest in the subject, fall out and take to mugging up class notes to obtain a good score in examinations which barely test anything other than rote skills of a candidate.

• Education in Human Values:

There have been some attempts to introduce values into the curriculum so that the students are imparted both professional and societal values. But these have achieved only limited success. The students watch their teachers and learn a lot from them, both consciously and unconsciously. Teaching does not influence them as much as the behavior of the teachers. Preaching of values impresses the students when they see their teachers actually practicing the values in their lives.

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.

To ensure safety of employees the company implemented work from model since start of Covid-19 pandemic and follows till date, Company is following government guidelines and planning to develop system to work efficiently in this post- covid scenario. 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:

(Amount in Lakh)

Particulars	2021-2022	2020-2021	2019-2020
Profit Before Tax	5.09	3.72	2.27
Profit after Tax	3.76	2.75	1.65
Earning Per Share (in Rs.)	0.07	0.05	0.03

Details of Significant Changes:-

SI. No.	Particular	F.Y. 21-22	F.Y. 20 21	Numerator	Denominator	Reason
1	Current Ratio	137.187	32.257	Current Assets	Current Liabilities	Due to increase in current assets and decrase in current liabilities.
2	Debt Equity Ratio	NA	NA	Total Debt	Shareholders Equity	NA
3	Debt Service Coverage Ratio	NA	NA	Net Operating Income	Total debt Service	NA
4	Return on Equity Ratio	0.004	0.003	Net Profit After Tax	Shareholders Equity	Due to increase in earnings as well as increase in shareholders equity.
5	Inventory Turnover Ratio	NA	NA	Cost of Goods Sold	Average Inventory	NA
6	Trade Receivable Turnover Ratio	3.204	3.819	Average Receivable*12	Income from Operation	NA
7	Trade Payable Turnover Ratio	NA	NA	Average Payable*12	Net Credit Purchases	NA
8	Net Capital Turnover Ratio	0.022	0.023	Sales	Net Assets	NA
9	Net Profit Ratio	0.132	0.094	Net Profit After Tax	Total Revenue	Due to increase in profit and decrease in total revenue,
10	Return on Capital Employed	0.005	0.004	Earnings before Interest and Tax	Capital Employed	Due to increase in earnings as well as increase in capital employed.
11	Return on investments		0.156	Differce in amount of investments	Initial Investments	Due to no change in initial and final value of investments for year ended 2022.

Cautionarv 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.