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 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 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.

Economic 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 in the education system.

Moreover, the aim of the government to raise its current gross enrolment ratio to 30 per cent by 2020 will also boost the growth of the distance education in India.

Market Size

24 years and this provides a great opportunity for the education sector. The education sector in India is estimated at US$ 91.7 billion in FY18 and is expected to reach US$ 101.1 billion in FY19.

Number of colleges and universities in India reached 39,050 and 903, respectively in 2017-18. India had 36.64 million students enrolled in higher education in 2017-18. Gross Enrolment Ratio in higher education reached 25.8 per cent in 2017-18.

The country has become the second largest market for e-learning after the US. The sector is expected to reach US$ 1.96 billion by 2021 with around 9.5 million users.

Government Initiatives

Some of the other major initiatives taken by the Government of India are:

In August 2018, Innovation Cell and Atal Ranking of Institutions on Innovation Achievements (ARIIA) were launched to assess innovation efforts and encourage a healthy competition among higher educational institutions in the country.

link higher educational institutions in the country with at least five villages. The scheme covers 750 such institutions.

The allocation for school education under the Union Budget 2018-19 is expected to increase by 14 per cent, to focus on accelerating existing schemes and quality improvement.

In order to boost the Skill India Mission, two new schemes, Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) and Skill Strengthening for Industrial Value Enhancement (STRIVE), have been approved by the Cabinet Committee on Economic Affairs (CCEA), Government of India, with an outlay of Rs. 6,655 crore (US$ 1.02 billion) and will be supported by the World Bank.

The Ek Bharat Shreshtha Bharat (EBSB) campaign is undertaken by Ministry of Human Resource Development to increase engagement between states, union territories, central ministries, educational institutions and general public.

Prime Minister Mr. Narendra Modi launched the Skill India initiative _ __ __ __ _ Under this initiative, the government has set itself a target of training 400 million citizens by 2022 that would enable them to find jobs. The initiatives launched include various programmes like: Pradhan Mantri Kaushal Vikas Yojana (PMKVY), National Policy for Skill Development and Entrepreneurship 2015, Skill Loan scheme, and the National Skill Development Mission.

In December 2018, the Government of India published that 3.43 million candidates had enrolled in the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 2016-20 scheme. Up to January 24, 2019 as many as 2.53

Government Achievements

Following are the achievements of the government in the past four years:

Under the mid-day meal scheme initiated by the Government of India, about 95 million students of around 1.14 million schools enjoy fresh meal every day.

The Government has laid foundation of 141 universities and 7 IITs in the past four years.

With an aim of promoting innovation and entreprenuership among secondary school students in the country NITI Aayog, Government of India has launched the Atal Innovation Mission (AIM)In June 2018, 3,000 additional Atal Tinkering Labs were approved, taking the total number of labs to 5,441.

Road Ahead

• Adopt transformative and innovative approaches in Higher education.

• Have an augmented Gross Enrolment Ratio (GER) of 50 per cent

• Reduce state-wise, gender based and social disparity in GER to 5 per cent.

• Emerge as a single largest provider of global talent, with one in four graduates in the world being a product of the Indian higher education system.

• Be among the top five countries in the world in terms of research output with an annual R&D spent of US$ 140 billion.

• Have more than 20 universities among the global top 200.

Various government initiatives are being adopted to boost the growth of distance education market, besides focusing on new education techniques, such as E-learning and M-learning.

Education sector has seen a host of reforms and improved financial outlays in recent years that could possibly transform the country into a knowledge haven. With human resource increasingly gaining significance in the overall development of the country, development of education infrastructure is expected to remain the key focus in the current decade. In this scenario, infrastructure investment in the education sector is likely to see a considerable increase in the current decade.

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 niche for growth within the current market players and the new comers will continue to provide support to the business. Also, the Start employment opportunities in the country. Make in India initiative and increased incentives for the global players to set-up their facilities in India to aid in more employment generation and business in consultancy sector.


a) Competition in the Indian market from large consultancy organizations and new entrants

b) Unfavorable Government regulations

c) Unfavorable macro-economies and micro-economies conditions

d) Recession in Industrialization and business environment

e) Unable to retain talented staff if recruited by competitors

f) Inability of retain top talented team members

g) Geographically located in East India and presently not covering pan India.

h) Increase cost of operations.

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:

Particulars 2018-19 2017-18 2016-17
Profit Before Tax 81,533 266,837 344,141
Profit after Tax 29,927 93,451 325,860
Earning Per Share 0.01 0.02 0.06

Details of Significant Changes:-

Sl. No. Particular F.Y. 18-19 F.Y. 17-18 Reason
1 Debtor Turnover Ratio (Months) 7.29 5.98 Not Applicable
2 Inventory Turnover Ratio - - Not Applicable
3 Interest Coverage Ratio - - Not Applicable
4 Current Ratio 23.63 24.29 Not Applicable
5 Debt Equity Ratio - - Not Applicable
6 Operating Profit Margin Ratio 4.38% 15.25% Due to decrease in Other Income, which has been considered in operating profit but not considered for revenue from operations.
7 Net Profit Margin Ratio 1.23% 3.26% Due to decrease in Other Income.
8 Return on Networth 0.03 0.09 Due to decrease in Other Income.

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.