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;


The Management Discussion and Analysis Report sets out the developments in the business, the Company’s performance since the last Report and the future outlook. This Report is part of the Director’s 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 Company’s 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.

Education Overview:-

India’s education sector offers a great opportunity with 26.31% of India’s population in the age group of 0 to 14 years. Education sector in India is expected to reach US$ 180 billion in FY 2020. India’s higher education segment is expected to increase to Rs. 2,44,824 crore (US$ 35.03 billion) by 2025.

India has over 250 million school going students, more than any other country. It also has one of the largest networks of higher education institutions in the world. Number of colleges in India reached 39,931 in FY 2019. Number of universities in India reached 967 in FY2021 (until December2020). India had 37.4 million students enrolled in higher education in 2018-2019. Gross Enrolment Ratio in higher education reached 26.3% in FY2019. Higher education institutes in India are focussing on creating online programmes due to the increasing demand from consumers. In India, the online education market is forecast to reach US$ 11.6 billion by 2026.

In 2020-2021, there were 9,700 total AICTE approved institutes of the total, there were 4,100 undergraduate, 4,951 postgraduate and 4,514 diploma courses in AICTE approved institutes. According to the National Institutional Ranking Framework, 7 positions were bagged by prominent Indian Institutes of Technology out of the top 10 institution rankings in 2020.

Under the National Education Policy 2021, the government will set up regional, national institutes for virology, >15,000 schools, 100 new Sainik schools and 750 Eklavya model residential schools in tribal areas.

Education sector in India remains to be a strategic priority for the Government. The Government has allowed 100% Foreign Direct Investment (FDI) in the education sector through the automatic route since 2002. From April 2000 to September 2020, Foreign Direct Investment (FDI) equity inflows stood at US$ 3,849.20 million.

In India, the edtech market is expected to reach US$ 3.5 billion by 2022. Indian ed-tech startups have received a total investment of US$ 2.22 billion in 2020, up from US$ 553 million in 2019.

Education and Covid -19

The pandemic Covid-19 has spread over whole world and compelled the human society to maintain social distancing. It has significantly disrupted the education sector which is critical determinant of a country’s economic future. February 11, 2020, the World Health Organization (WHO) proposed an official name of the virus as COVID acronym for Coronavirus disease 2019.

It has affected more than 4.5 million peoples worldwide (WHO). According to the UNESCO report, it had affected more than 90% of total world’s student population during mid April 2020 which is now reduced to nearly 67% during June 2020. Outbreak of COVID-19 has impacted more than 120 crores of students and youths across the planet. In India, more than 32 crores of students have been affected by the various restrictions and the nationwide lockdown for COVID-19. As per the UNESCO report, about 14 crores of primary and 13 crores of secondary students are affected which are two mostly affected levels in India.

After observing the corona virus pandemic situation the WHO advised to maintain social distancing as the first prevention step. So, every country started the action of lockdown to separate the contaminated people. The education sect including schools, colleges and universities became closed. Classes suspended and all examinations of schools, colleges and universities including entrance test were postponed indefinitely. Thus, the lockdown destroyed the schedules of every student. Though it is an exceptional situation in the history of education, COVID-19 has created many opportunities to come out of the rigorous classroom teaching model to a new era of digital model.

The lockdown has given them a ray of hope for teachers and students to continue their educational activities through online. The teachers assigned work to students via internet, delivered lectures through live video conferencing using different Apps like Zoom, Google meet, Facebook, Youtube, and Skype etc. India where not every student is well equipped with the high-speed internet and digital gadgets and are along these lines of suffer. Numerous advanced educational institutions in India are not also equipped with digital facilities right now to cope up with sudden change from traditional education set up to the online education system.

? To highlight various positive impact of COVID-19 on education.

Move towards Blended Learning

Rise in use of Learning Management Systems

Enhance the use of soft copy of learning material

Improvement in collaborative work

Rise in online meetings

Enhanced Digital Literacy

Improved the use of electronic media for sharing information

World wide exposure

Better time management

Demand for Open and Distance Learning

? To enlist some negative impacts of COVID-19 continuing education during the pandemic situation.

Educational activity hampered

Impact on employment

Unprepared teachers/students for online education

Reduced global employment opportunity

Increased responsibility of parents to educate their wards

Loss of nutrition due to school closure

Payment of Schools, Colleges fee got delayed

Market Size

India’s edtech industry is poised to become $30 billion in size in the next 10 years. The current market size is about $700-800 million. The industry has attracted private equity investments of $4 billion in the last five years, leading to the emergence of global edtech leaders like Byju’s which now commands a valuation of $15 billion. "China accounted for almost two-thirds of venture capital funding in 2020, with investment in the US and India each at around $2.5 billion,"

"Online education offerings for classes 1 to 12 are projected to increase 6.3X by 2022 from the base of 2019," the report said. The post K-12 market is expected to grow 3.7X to touch $1.8 billion.

Government Initiatives

To prevent spread of pandemic COVID-19, the Government of India has taken number of preventive measures. The union government declared a countrywide lock-down of all educational institutions on 16 March 2020. Central Board of Secondary Education (CBSE) postponed all examinations of secondary and higher secondary schools on March 18, 2020 throughout India. CBSE released revised guidelines for examination centres to conduct examinations by maintaining a distance of at least 1 meter between the students taking the exam with a class not having more than 24 students. If the rooms of the examination centres are small then the students should be divided into different rooms accordingly. The Union Public Service Commission (UPSC) postponed the interview for the Civil Services Examination 2019. Similarly the most of the state Governments and other educational boards postponed examinations due to outbreak of COVID-19. Govt. of India has observed one day nationwide Janta-curfew on March 22 and implement lockdown from March 25, 2020 onwards in different phases. Govt. of India has been extending lockdown periods from time to time adopting different strategies to fight with the pandemic but educational institutions remained closed continuously. The lockdown 6.0 was declared on June 29, which is effective from 1st July to 31st July 2020 with some less restriction in other sectors except education. Almost all state government ministries have taken measures to ensure that the academic activities of schools and colleges do not hamper during the lockdown period.

The Ministry of Human Resource Development (MHRD) has made several arrangements, including online portals and educational channels through Direct to Home TV, Radios for students to continue learning. During lockdown, students are using popular social media tools like Whats App, Zoom, Google meet, Telegram, Youtube live, Facebook live etc. for online teaching learning system. ICT initiative of MHRD (eBroucher- is a unique platform which combines all digital resources for online education. The digital initiatives of MHRD for secondary as well as higher education during COVID-19 are listed as below:

Secondary Education

Diksha portal contains e-Learning content for students, teachers, and parents aligned to the curriculum, including video lessons, worksheets, textbooks and assessments. e-Pathshala is an e-Learning app by NCERT for classes 1 to 12 in multiple languages. The app houses books, videos, audio, etc. aimed at students, educators and parents in multiple languages including Hindi, Urdu, and English.

National Repository of Open Educational Resources (NROER) portal provides a host of resources for students and teachers in multiple languages including books, interactive modules and videos including a host of STEM-based games. Content is mapped to the curriculum for classes 1-12, including aligned resources for teachers.

Higher Education

Swayam is the national online education platform hosting 1900 courses covering both school (classes 9 to 12) and higher education (under graduate, post graduate programs) in all subjects including engineering, humanities and social sciences, law and management courses.

Swayam Prabha has 32 DTH TV channels transmitting educational contents on 24 x 7 basis. These channels are available for viewing all across the country using DD Free Dish Set Top Box and Antenna. The channel schedule and other details are available in the portal.

e-PG Pathshala is for postgraduate students. Postgraduate students can access this platform for ebooks, online courses and study materials during this lockdown period.

Basis of preparation and presentation of our Financial Statements:-

The Financial Statements have been prepared and presented under the historical cost convention, unless otherwise specifically stated, on the accrual basis of accounting and comply with the applicable accounting standards referred to in the Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

Opportunities and Threats:-

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


The Prime Minister has announced that the Skill India Initiative would be a major thrust area of his government. This initiative is being piloted by a brand new Ministry of Skill Development and Entrepreneurship which is coordinating the efforts of 30 Ministries. The objective is to train 500 million youth by the year 2020. 150 new Industrial Training Institutes and 5000 new Skill Development Centers will be set up. The year 2015 has been declared to be the year of the Skill India Initiative.


Interestingly, the coaching business is getting bigger than the education business. The entrance examinations to higher technical institutions attract 8,00,000 applications entailing an expenditure of Rs. 16,000 crore every year. It is estimated that 150,000 to 1, 60,000 students leave India for foreign countries, thus creating a foreign exchange outflow of US $11 billion per year. India can become an educational hub for the world and earn US$ 100 billion per year within some years if we plan our educational policies in a dynamic manner, removing all the fetters and impediments that stand in the way.

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


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.


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.


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. The company operates mainly in Indian Market.


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:-

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 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.

Your Directors want to place on record their appreciation for the contribution made by employees at all levels, who through their steadfastness, solidarity and with their co-operation and support have made it possible for the Company to achieve its current status.

The Company, on its part, would endeavor to tap individual talents and through various initiatives, ingrain in our human resources, a sense of job satisfaction that would, with time, percolates down the line. It is also the endeavor of the Company to create in its employees a sense of belonging, and an environment that promotes openness, creativity and innovation.

Material Developments in Human Resources:-

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 )

Particulars 2020-2021 2019-2020 2018-2019
Profit Before Tax 371,693 226,639 81,533
Profit after Tax 275,397 165,311 29,927
Earning Per Share 0.05 0.03 0.01

Details of Significant Changes:-

Particular F.Y. 20-21 F.Y. 19-20 Reason
1 Debtor Turnover Ratio (Months) 3.82 6.70 Debtors Turnover Ratio has decreased due to decrease in receivables from customers. Company allows the credit period of 30 days.
2 Inventory Turnover Ratio - - Not Applicable
3 Interest Coverage Ratio - - Not Applicable
4 Current Ratio 32.26 27.04 Not Applicable
5 Debt Equity Ratio - - Not Applicable
6 Operating Profit Margin Ratio 15.72% 11.08% Due to increase in revenue from operations.
7 Net Profit Margin Ratio 6.99% 8.08% Not Applicable
8 Return on Networth 0.26 0.16 Due to increase in revenue from operations.

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.