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 soon whether express or implied. However, company has also submitted various risks associated with the business.

INDUSTRY OVERVIEW:

India has one of the largest education ecosystems in the world, covering over 25 crore students in school education and over 4 crore students in higher education. The system is supported by a vast network of public and private institutions, vocational training centres, and open/distance learning platforms.

The National Education Policy (NEP) 2020 is a landmark reform, aiming to raise the Gross Enrolment Ratio (GER) in higher education from ~28% to 50% by 2035, and ensure universal access to quality schooling by 2030. Government-backed digital platforms such as DIKSHA, SWAYAM, and PM e-Vidya have strengthened the blended learning ecosystem. Increasingly, regulators are focusing on quality and accountability in online and distance education delivery, particularly for professional courses.

Market Size

The Indian education sector is one of the largest globally and continues to expand at a healthy pace. The overall market, valued at about US $117 billion in 2020, is projected to almost double to US $225 billion by FY 2025, driven by demographic demand, policy reforms, and technology adoption. Within this, the K 12 education segment, which forms the backbone of the sector, was estimated at US $92 billion in 2024 and is expected to reach US $256 billion by 2033, growing at a double-digit rate. The higher education market, currently valued at around US $68 billion, is expected to cross US $137 billion by 2033, supported by enrolment growth and the governments NEP 2020 vision of achieving a 50% Gross Enrolment Ratio in higher education by 2035. The most dynamic growth, however, is visible in the EdTech segment, valued at around US

$7 8 billion in 2024, and projected to grow more than three-fold to about US $29 33 billion by 2030 2033, making it one of the fastest-expanding consumer-internet markets in the country. Together, these trends reinforce Indias position as a large, diverse, and fast-evolving education market with significant opportunities for sustainable long-term growth.

Government Initiatives

The growth and transformation of Indias education sector is being actively promoted through a series of government-led reforms and programs. The National Education Policy (NEP) 2020 serves as the guiding framework, focusing on holistic, flexible, and multidisciplinary education with an ambitious target of achieving a 50% Gross Enrolment Ratio in higher education by 2035 and universal school access by 2030. To accelerate digital learning and inclusivity, initiatives such as PM e-Vidya, DIKSHA, SWAYAM, and SWAYAM-Prabha have been launched, leveraging online platforms, mobile applications, and dedicated television and radio channels to reach learners across the country. In the area of skills development, the Skill India Mission and the newly established Skill India Digital Hub (SIDH) aim to connect youth with job-oriented training and certifications at scale. Regulatory bodies like the University Grants Commission (UGC) and AICTE are also refining norms for online and distance education to ensure quality and accountability. Collectively, these initiatives highlight the governments role in shaping a more accessible, technology-enabled, and future-ready education ecosystem.

Opportunities a. Demographic advantage with a large young population driving sustained demand. b. Digital acceleration enabling hybrid models, AI-based learning tools, and scalable skilling programs. c. Government policy support, including Skill India and digital public infrastructure for education. d. Globalization of Indian education, with foreign universities being permitted to set up campuses.

Threats a. Regulatory uncertainties in online and distance learning programs. b. Digital divide between urban and rural learners, affecting inclusivity. c. Funding headwinds in EdTech, leading to consolidation and margin pressures. d. Outcome accountability, with increasing focus on employability and measurable learning impact.

Outlook

The long-term outlook for the sector remains strong, underpinned by favorable demographics, policy reforms, and rising aspirations for higher education and skilling. The integration of technology will continue to redefine delivery, while collaborations between government, industry, and academia are expected to enhance employability outcomes. With India positioning itself as a global education hub, opportunities for both domestic and international players are set to expand significantly over the next decade.

Risks and concerns

Key risks include policy changes impacting recognition of courses, pressure to bridge the affordability gap, and sustainability of business models in EdTech. Macroeconomic factors such as funding availability, employment demand, and infrastructure readiness could also influence the pace of growth. Operators will need to balance scale with quality, ensure compliance with evolving regulations, and deliver measurable learner outcomes to maintain long-term resilience.

Internal Control System

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee.

Operational Performance

The Company has not done any business activity during the Financial Year 2024-25 and as such no revenue was generated by the company. The company expects to revive its business operations once the financial position of improves and Company receives its receivables. We have been regularly exploring various possibilities, meeting people and companies in India and abroad for a possible tie- ups in education sector, particularly in online education however the execution of any plan is contingent upon receipt of Companys accruals.

Financial Performance

The Company has not carried any business activity during Financial Year ended March 31, 2025. On

Standalone basis, the Companys Loss Before Tax stood at Rs. 25.48 Lakhs, the same was Rs. 62.35 Lakhs for the previous period. The Loss after Tax of the Company stood at Rs. 25.48 Lakhs as against Loss of Rs. 95.77 Lakhs in the previous Financial Year.

On Consolidated basis, the Loss before taxation stood at Rs. 27.29 Lakhs, as against Loss of Rs. 55.10 Lakhs in the previous financial year. The net Loss of the Company stood at Rs. 27.29 Lakhs as against Loss of Rs. 55.10 Lakhs in the Previous Financial Year.

HUMAN RESOURCES

Company always has an encouraging work environment that leads to higher calibre and encouragement among employees, contribute to the overall growth and performance of the personnel while adhering to the highest degree of quality and integrity.

Significant changes (25% or more) in the key financial rations along with detailed explanation thereof"

FUTURE PLNAS

The company expects to revive its business operations once the financial position of improves and Company receives its receivables. We are focusing on recovery of our pending dues so that it can help in quick revival of your company. Our settlement proposal is pending with Education department, Delhi Government. We are putting in all our efforts to resolve the matter with Delhi Government and expecting a quick resolution thereof. We are looking for opportunities in new avenues in non-formal education and training sectors and in various skill development programs of the Central Government however the execution of the same is much contingent upon receipt of Companys accruals.