IEC Education Ltd Management Discussions.

CAUTIONARY STATEMENT:

Certain statements made in the management discussion and analysis report relating to Companys objectives, Projections, outlooks, expectations, estimates and others may constitute forward looking statements within the meaning of applicable laws & regulations. Actual results may differ from such expectations, projections and so on whether express or implied. However, company has also submitted various risks associated with the business.

INDUSTRY OVERVIEW:

Education Industry Analysis (BY IBEF) Latest update: July, 2020

Indias education sector offers a great opportunity with approximately 29 per cent of Indias population in the age group of 0 to 14 years. Indias higher education segment is expected to increase to Rs 2,44,824 crore (US$ 35.03 billion) by 2025. India was ranked 34 among the 100 countries in English Proficiency Index 2019. Increasing internet penetration is expected to help in education delivery. As of December 2019, internet penetration in India reached 54.29 per cent.

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 and universities in India reached 39,931 and 993, respectively, in FY19. India had 37.4 million students enrolled in higher education in 2018-19. Gross Enrolment Ratio in higher education reached 26.3 per cent in FY19.

The Central Government plans to disburse US$ 1 billion to states for introducing skill development initiatives. Skill India Mission 2015 is aimed at skilling 400 million Indian youths by 2022. As of January 2020, there were 14,602 Industrial Training Institutes in India. Skill India program has benefitted more than one crore (10 million) youth annually. Under Union Budget 2019-20, the Government provided Rs 400 crore (US$ 57.23 billion) for ‘World Class Institutions. 56 institutes were represented from India in the Times Higher Education (THE) Emerging Economies University Rankings 2020.

Education sector in India remains to be a strategic priority for the Government. The Government has allowed 100 per cent Foreign Direct Investment (FDI) in the education sector through the automatic route since 2002. Total FDI inflow in Indias education sector stood at US$ 3.24 billion between April 2000 to March 2020 according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT). Venture capital in ed-tech space increased to US$ 795 million in the first six months of 2020 from US$ 108 million in the corresponding period last year.

According to Union Budget 2020-21, the Government has allocated Rs 59,845 crore (US$ 8.56 billion) to the Department of School Education and Literacy. Revitalizing Infrastructure and Systems in Education (RISE) by 2022 was announced in Union Budget 2020-21 at an outlay of Rs 3,000 crore (US$ 429.55 million).

NEW EDUCATION POLICY

NEP which was in pipe line for quite some time has also been approved by our parliament and it has opened door for new opportunities in education industry. Under the new policy Government has allowed entry of foreign universities to open their campuses in India with or without Indian partner. This has created huge potential for companies like us who are into hard core educational activities for more than 3 decades.

The NEP 2020 enacts numerous changes in Indias education policy. It aims to increase state expenditure on education from around 4% to 6% of the GDP as soon as possible

? This policy aims at reducing the curriculum load of students and allowing them to be more "inter-disciplinary" and "multi-lingual". Coding will be introduced from class 6 and experiential learning will be adopted. More focus will be given to students health, particularly mental health, through the deployment of counselors and social workers.

? It proposes a multi-disciplinary bachelors degree in an undergraduate programme with multiple exit options. These will include professional and vocational areas and will be implemented as follows:

o A certificate after completing 1 year of study o A diploma after completing 2 years of study o A Bachelors degree after completion of a 3-year programme

? A Higher Education Council of India (HECI) will be set up to regulate higher education. The councils goal will be to increase gross enrollment ratio. The HECI will have 4 verticals:

o National Higher Education Regulatory Council (NHERC), to regulate higher education, including teacher education, while excluding medical and legal education. National Accreditation Council (NAC), a "meta-accrediting body".

o Higher Education Grants Council (HEGC), for funding and financing of universities and colleges. This will replace the existing National Council for Teacher Education, All India Council for Technical Education and the University Grants Commission.

o General Education Council (GEC), to frame "graduate attributes", namely the learning outcomes expected. It will also be responsible in framing a National Higher Education Qualification Framework (NHEQF). The National Council for Teacher Education will come under the GEC, as a professional standard setting body (PSSB).

? Other PSSBs will include professional councils such as Veterinary Council of India, Council of Architecture, Indian Council of Agricultural Research and National Council for Vocational Education and Training.

? The National Testing Agency will now be given the additional responsibility of conducting entrance examinations for admissions to universities across the country, in addition to the JEE Main and NEET.

? The policy proposes that higher education institutes like the IITs make changes with regard to the diversity of learning.

? The policy proposes to internationalize education in India. Foreign universities can now set up campuses in India.

? The fees of both private and public universities will be fixed.

Under NEP 2020, numerous new educational institutes, bodies and concepts have been given legislative permission to be formed. These include:

? National Education Commission, headed by the Prime Minister of India

? Academic Bank of Credit, a digital storage of credits earned to help resume education by utilising credits for further education

? National Research Foundation, to improve research and innovation

? Special Education Zones, to focus on the education of underrepresented group in disadvantaged regions

? Gender Inclusion Fund, for assisting the nation in the education of female and transgender children

? National Educational Technology Forum, a platform to facilitate exchange of ideas on technology usage to improve learning

? The policy proposes new language institutions such as the Indian Institute of Translation and Interpretation and the National Institute/ Institutes for Pali, Persian and Prakrit. Other bodies proposed include the National Mission for Mentoring, National Book Promotion Policy, National Mission on Foundational Literacy and Numeracy.

PERFORMANCE

There had been no business in the year 2019-20 and as such no revenue was generated by the company. The year 2019-20 had been an year of exploring various possibilities, meeting people and companies in India and abroad for a possible tie ups in education sector, particularly in online education. During the year, though your company could not start business activities but still we were able to have tieup with a Chennai based company for online Indian as well as foreign programs. We are also in talks with a UK Based educational body for running their on line programs in India under our name. The agreement could not be executed with them due to COVID 19 pandemic. However we expect generation of business in the last quarter of the current year subject to improvement in COVID situation.

EXPENDITURE

Total expenses of the Company are Rs. 56.73 Lacs as compared to Rs. 94.02 Lacs in the previous year. Other Expenses of the Company have slightly increased to Rs. 20.47 Lacs as against Rs. 19.53 Lacs in the previous year. Employee Benefit expenses are Rs.31.60 Lacs against last years Rs. 23.63 Lacs. Considering the losses accruing to the Company, Dr. Navin Gupta, Chairman of the Company has not drawn any wages from the Company in this year also..

FIXED ASSETS

The fixed Assets of the Company stood at Rs. 56.73 Lacs for the fiscal Year under consideration, last year it was Rs.46.20 Lacs. The Company has not acquired any new asset or disposed of any asset of the Company during the period under review. The Fixed Schedule has been redrafted since few assets have been depreciated more than the residual value of 5 % of the Gross Block and Vehicles have been depreciated more than the cost. No depreciation is charged during F.Y. 19-20 on such assets which had depreciated more than the residual value. The Depreciation adjustment has been taken as prior period adjustment in the statement of Profit and loss.

HUMAN RESOURCES

Company always has an encouraging work environment that leads to higher caliber and encouragement among employees, contribute to the overall growth and performance of the personnel while adhering to the highest degree of quality and integrity. Company believes that even a pin of an organization matters that is every employee irrespective of his/her place he/she holds, is a contribution in the growth of the organization.

INTERNAL CONTROL SYSTEM

Your Company has a proper and adequate system of internal controls commensurate with its size and nature of operations to provide reasonable assurance that all assets are safeguarded, transactions are authorized, recorded and reported properly and applicable statutes, codes of conduct and corporate policies are duly complied with. The Internal Audit Department reviews the adequacy and efficacy of the key internal controls. The scope of the audit activity is guided by the annual audit plan, which is approved by the Audit Committee of the Board.

FUTURE PLNAS

Last year of the company had been a year of exploration of new areas in education industry. We have entered into an MOU with a Chennai based company for providing online courses under our brand. We are also in advanced stage of signing an MOU with a UK based educational body for running their courses in the company. We have also been working on a business plan to provide consultancy with respect to admissions and management of various educational institutes. In addition to above we are looking for opportunities in new avenues in non-formal education and training sectors, to bag more contracts for providing Management Services in education sector. We are also searching for opportunities in various skill development programs of Central Government.

Due to COVID 19, our execution plan under various tie ups was delayed. 1st half of the current year has practically washed out due to this pandemic. We expect things to improve now. We are confident once the situation of COVID improves, we should be in a position to start our business activities. We expect a beginning of a major positive turn around in your company in the years ahead.

You have always been our strength and your continuous support even at this juncture is commendable. We thank you very much for the same. We assure you that from here onwards your company will again stride ahead towards achieving new heights.

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 To, The Members of

IEC EDUCATION LIMITED

M-92 Connaught Place New Delhi 110001

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of IEC EDUCATION LIMITED having CIN L74899DL1994PLC061053 and having registered office at M-92 Connaught Place New Delhi 110001 (hereinafter referred to as ‘the Company), produced before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In our opinion and to the best of our information and according to the verifications (including Directors Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & its officers. We hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on 31st March, 2020 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

Name of the Director DIN Date of Appointment in Company
1 Dr. Navin Gupta 00097128 27/06/2013
2 Mr. Jaideep Kumar Bhola 02191970 04/01/2008
3 Mr. Bijoy Kumar Pandit 07900682 02/09/2017
4 Mrs. Anita Menon 08439459 30/05/2019
5 Mr. Sunil Kumar 08463423 30/05/2019

Ensuring the eligibility of for the appointment/continuity of every Director on the Board is the responsibility of the management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.