MPS Ltd Management Discussions

Overview

For more than 50 years, MPS has been helping the world to make learning smarter by pushing the boundaries on making learning more accessible. After a change of ownership in 2012, the new management prioritized speed and efficiency, which led to increased profitability and the establishment of operations in the US via three acquisitions. The new leadership team launched MPS into an era of rapid growth, reiterating the importance of customer focus and driving forward a continuous improvement of efficiency.

From 2015 to 2020, we diversified our business to target new customers, enter adjacent markets, and develop additional revenue streams. The first step in the diversification was the establishment of a platform business, which was initially fueled by investments to drive the organic growth of DigiCore and was then further scaled via the acquisitions of Magplus and THINK. In 2018, the acquisition of the first eLearning company in India from one of Indias largest and most reputed conglomerates marked our definitive entry into the Corporate Learning market with operations in the US, Germany, and Switzerland.

When the global pandemic struck in 2020, the management team focused on resilience and leveraging internal synergies. MPS executed its Business Continuity Plans exceptionally well, and many customers whose supply chains were under pressure diverted high-priority and time-sensitive business to MPS. While many were buckling down, MPS made the bold move of completing the acquisition of HighWire amidst the global pandemic to further scale its platform business. Additionally, the market conditions had turned more favorable for MPS due to rapid digitization, supply chain consolidation, and an expanded addressable market.

On emerging from the pandemic in 2022, MPS was stronger and more resilient, armed with a revised growth strategy, and driven by an entrepreneurial culture. MPS now serves the research outsourcing, education services, and corporate learning markets, which represent a total addressable market of over USD 600 billion. FY23 and

FY24 have proven that the revised corporate strategy coupled with excellent execution has propelled MPS into a new accelerated growth path. The vision for 2027 is to develop MPS into a compelling learning company that is admired not only for its significant scale but also for its impact on all stakeholders.

BUSINESS SEGMENT OVERVIEW FOR FY2024

MPS is a premium B2B learning and platform solutions company that powers the education, research, and corporate markets in their quest to engage with their learners more meaningfully. Our deep purpose is "to help make learning accessible to ALL", which unifies our diverse talent pool of over 3,000 professionals spread across 10 countries. MPS business segments underwent notable enhancements in the previous financial year. In the past financial year, MPS business segments underwent significant enhancements. These upgrades included the launch of multiple SaaS products, the successful acquisition and integration of enhanced capabilities, the streamlining of workflows to improve efficiency, and the further development of our AI Lab to foster innovation and productivity. Below is a summary of MPS business segments.

	Content Solutions	Platform Solutions	eLearning Solutions
Overview	Scope includes content authoring, development, production, editorial, design, creative, rights and permissions, accessibility, transformation, and digital enhancement. Delivered as full-service or asset- based development across varied channels and media formats	Complete range of configurable platform solutions throughout the entire content lifecycle, primarily delivered as SaaS. Products include DigiCorePro, Insight, and Impact Vizor, Sigma, Scolaris, THINK, and Magplus	Developing and delivering high-impact and comprehensive learning and performance support solutions that provide a high engagement quotient and enhance learners performance
Proportion of Revenue	53%	23%	24%
	2013 – Elements LLC	2016 – Mag+	2018 –TIS India,
	2014 – EPS	2017 – THINK	Switzerland, and Germany
Key Acquisitions	2015 – TSI Evolve	2020 – HighWire Press	2022 – EI Design
	2024 – AJE, USA and	2024 – AJE, USA and	2023 – Liberate Learning
Value Proposition	China Speed and efficiency	China Innovation and agility	Differentiation and global delivery

VISION 2027

Our deep purpose is to make learning accessible to all. We aim to create a large and impactful learning company that enables the world to learn more effectively. Our goal is to become the preferred provider in our markets, utilizing the latest technological innovations to facilitate experiential learning experiences.

VALUES

Our ambitions are fueled by our core values, which not only define who we are today but also shape our future. These values are non-negotiable principles and essential tools for our success. Excellence is ingrained in our way of life. It involves showing respect to our colleagues, taking ownership of our responsibilities, and dedicating our best efforts to serving our customers. We understand that excellence is not about perfection, but about consistently giving our best in every interaction, deliverable, and decision. Empathy is about caring deeply. It involves making an effort to understand things from others perspectives, recognizing unspoken needs, and going the extra mile for those who rely on us. While empathy is often instinctive, we also believe it can be cultivated through impactful programs. Efficiency is at the core of who we are. It entails driving automation, implementing smarter workflows, and embracing innovative operating models to ensure that no task is considered menial. By 2027, we envision doing things very differently and innovating to make learning smarter at every stage of the process. In conclusion, the three values – Excellence, Empathy, and Efficiency – may appear distinct, but they work together in harmony to create a synergistic value system that defines the culture at MPS. While each value is important on its own, their combined force propels our organization toward success. Upholding these values will enable us to continually innovate, evolve, and adapt to the evolving needs of our customers and the industry. We are confident that this value system will not only shape our future but also help us achieve our long-term organizational goals.

CULTURE

At MPS, our culture is based on five pillars – Ownership, Empowerment, Collaboration, Transparency, and Innovation. Each of these pillars drives MPS toward its goal of making learning smarter and accessible to all.

1. Ownership - is about taking responsibility for ones actions, decisions, and outcomes. It means being accountable for your work and owning your mistakes. This culture pillar helps in building a sense of trust and credibility with colleagues, customers, and stakeholders. At MPS, we encourage our employees to take ownership of their work, and this helps us to deliver high-quality services to our customers.

2. Empowerment - is about giving employees the freedom to take initiatives, make decisions, and solve problems. It means providing them with the necessary resources and support to succeed. Empowerment helps in building a culture of innovation, creativity, and agility. At MPS, we empower our employees through formal delegation of authority, and by providing them with access to the latest tools, technologies, and training programs. This helps them to develop new skills and deliver exceptional value to our customers.

3. Collaboration - is about working together toward a common goal. It involves breaking down silos and building cross-functional teams. Collaboration helps in creating a culture of trust, respect, and inclusivity. At MPS, we encourage collaboration among our employees, customers, and partners. This helps us to leverage diverse perspectives, ideas, and expertise to solve complex problems and deliver innovative solutions.

4. Transparency - is about being open, honest, and clear in our communication and decision-making. It means sharing information, feedback, and insights with others. Transparency helps in building a culture of accountability, trust, and integrity. At MPS, we value transparency in all our interactions, whether with employees, customers, or stakeholders. This helps us to build long-term relationships based on mutual respect and trust.

5. Innovation - is about creating new ideas, products, and services that add value to our customers. It means being creative, curious, and willing to take risks. Innovation helps to build a culture of learning, growth, and continuous improvement. At MPS, we foster a culture of innovation by encouraging our employees to experiment with new ideas, embrace new technologies, and challenge conventional wisdom. This helps us to stay ahead of the curve and deliver cutting-edge solutions to our customers.

The five pillars of culture at MPS Limited help us to create a culture of excellence, agility, and customer centricity. By upholding these values, we can deliver high-quality services, foster innovation, and build long-term relationships with our customers, employees, and stakeholders.

CERTIFICATIONS

Our commitment and success are acknowledged by the following certifications:

• ISO 9001:2015: This is an international quality management system for the companys production business.

• ISO/IEC 27001:2013: This strengthens the information security management system; it applies to MPS Indian production units.

• PCI-DSS: This global information security standard is awarded by the Payment Card Industry Security Standards Council. This certification (PCI-DSS version 3.2.1) extends across the MPS fulfillment services/ THINK units.

• GDPR Compliant: The General Data Protection Regulation (GDPR) is the legislation that updates and unifies data privacy laws across the European Union (EU).

• COUNTER 5 Compliant: This is an international initiative that serves librarians, publishers, and intermediaries. The standards facilitate the consistent and credible recording and reporting of online usage statistics.

FINANCIAL OVERVIEW

			(INR in Lakhs)
Items	FY 2023-24	FY 2022-23	YoY Change
Revenue from Operations	54,531	50,105	8.83%
EBITDA	16,989	15,675	8.38%
PAT	11,877	10,919	8.77%
*Basis Consolidated Financials
			(INR in Lakhs)
Items	FY 2023-24	FY 2022-23	YoY Change
Revenue from Operations	32,757	29,801	9.92%
EBITDA	14,050	12,034	16.75%
PAT	10,644	8,628	23.37%

*Basis Standalone Financials

Key Ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations 2018, the Company is required to provide details of significant changes (i.e., change of 25% or more as compared with the immediate previous financial year) in key financial ratios, along with detailed explanations. The key financial ratios are given below:

Items	FY 2023-24	FY 2022-23	YoY Change
Debtors turnover (no. of days)	64	64	-
Current ratio (in times)**	1.61	3.36	(52.15%)
Operating profit margin	27.49%	27.40%	0.33%
Net profit margin	21.78%	21.79%	(0.06%)
Return on net worth	26.78%	27.50%	(2.63%)
*Basis Consolidated Financials
**Explanation for changes provided in the balance sheet section later in the report.
Items	FY 2023-24	FY 2022-23	YoY Change
Debtors turnover (no. of days)	54	61	(11.48%)
Current ratio (in times)	4.83	3.94	22.51%
Operating profit margin	39.54%	36.41%	8.59%
Net profit margin	32.50%	28.95%	12.24%
Return on net worth	29.44%	25.45%	15.68%

**Explanation for changes provided in the balance sheet section later in the report. ***Operating Profit Ratio means Earnings before interest and taxes (EBIT) and net sales

Financial Performance with Respect to Operational Performance MPS achieved a new milestone with FX-adjusted revenues of ~ INR 546.42 crores and a PAT of INR 118.77 crores in FY24. It broadly maintained its margins despite acquiring a loss-making business in AJE and continued to remain debt-free through the year, with surplus funds on its balance sheet at the close of the year under review.

Segment-Wise Performance

Content Solutions: Revenue in the Content Solutions business increased by approximately 11.46% in FY24 compared to the previous year. Due to the business operating leverage, segment margins expanded to 38.82% on a standalone basis. However, margins were slightly lower on a consolidated basis due to the acquisition of AJE. MPS introduced new capabilities related to the Journal Editorial Office (JEO) in the research marketplace. These capabilities have not only attracted new business from new customers but also improved the retention and quality of revenue from existing customers. With the addition of the Highwire suite of products and the newly acquired capabilities at AJE, the new JEO service enhances our capabilities and establishes us as the sole global "techno-service" provider at the forefront of the research value chain.

eLearning Solutions: eLearning continued as the second-largest business segment. FX-adjusted revenues grew by 5.32% percent in FY24. The business has four operating entities: India, Germany, Switzerland, and Australia. All the international subsidiaries succeeded in FY24, scaling revenues at healthy margins. The order book expanded in the India entity and the pipeline looks stronger. There is increased activity in the marketplace, with greater attention focused on EI. For instance, a leading industry association, eLearning Industry, recently recognized EI as the top company in the market for utilizing our solutions to drive and maximize training ROI for our customers.

Platform Solutions: For the first time since the acquisition of HighWire in 2020, the Platform business did not experience a decline. Revenues grew modestly in FY24, with margins continuing to improve due to a healthier customer profile, smarter cloud spending, and enhanced operational productivity. The profit in our Platform business, including AJE on a consolidated basis, grew by as much as 30.42% on an annual basis. Execution of product roadmaps was on schedule for the entire platform suite in FY24. New features and functionalities were well received in the marketplace, and there are several upcoming monetization opportunities through implementation projects and migration programs. Additionally, we launched two new SaaS products, DigiCorePro and THINK365, in FY24.

EDUCATION SERVICES

The global education services market is a diverse ecosystem, serving multiple segments like Pre-K12, Adult Learning, Higher Education, and Professional development spanning online, hybrid, and face-to-face experiences.

In 2024, the global education services market was valued at USD 361 billion^[1] and is projected to grow at a compound annual growth rate (CAGR) of 15%^[2], reaching an estimated USD 973 billion by 2030.

Education services offer a broad array of programs designed to support learning and foster academic advancement. With an emphasis on skill enhancement and knowledge acquisition, education services are tailored to meet the needs of learners across all life stages and cultural backgrounds.

By capitalizing on innovative pedagogical approaches and cutting-edge technology, education services not only enable academic success but also equip learners with a competitive advantage in their respective fields. This strategic focus on innovation and adaptability has been instrumental in the swift expansion and increased market share of education services.

Market Opportunities/Trends:

The education sector is undergoing a transformative shift toward a hybrid model that integrates both online and offline learning modalities. This evolution has given rise to new market dynamics and demands, including the following:

• Personalized learning solutions

• Immersive technologies such as Augmented Reality (AR) and Virtual Reality (VR)

• Gamification of education

• Analytics for learners and schools to improve educational outcomes

• Socio-emotional learning (SEL) to improve the emotional well-being of K12 students Market Enablers: The expansion and vitality of the education services sector are underpinned by several key enablers that drive growth and bolster demand:

• Government support: Governments worldwide are not only prioritizing education through policy-making but also actively investing in educational infrastructure. An increase in the number of school choice laws is increasing the demand for learning material for unconventional courses, which are being crafted by education services.

• Technological Innovation: Breakthroughs in technology, particularly in artificial intelligence (AI), are creating avenues to develop personalized learning solutions. In the United Kingdom, 42% of primary and secondary teachers used generative AI to aid with their schoolwork in November 2023, a significant increase from 17% in April 2023^[4].

• Globalization: The ability to access content in multiple languages has been greatly enhanced by globalization, leading to a surge in translation and language-editing services.

• Digitalization: The widespread penetration of digital technology, even to the most remote corners of the globe, has empowered ed-tech providers to offer comprehensive remote learning solutions to a wider audience.

RESEARCH OUTSOURCING

The publishing outsourcing market growth is driven by growth in demand for digital content, platform solutions, and print-on-demand solutions. India will continue to remain the largest outsourcing destination due to the availability of necessary IT infrastructure and skilled workforce.

The overall STM online services market measured USD 9.2 billion in 2023, up from USD 8.8 billion in 2022^[5]. It is expected to reach USD 16 billion at a compound annual growth rate of 8%^[6].

The key drivers anticipated for the industry growth are as follows:

• Drive to automate new processes and applications of AI/ML to mature processes

• Vendor consolidation in mature areas of outsourcing to provide further impetus to scaled players

• Customer preference to work with partners who own technology IP that will support efficiency requirements and future-proof customer needs

From a geographic point, China leads the global academic research. China produced 24.6% of all papers published worldwide – a margin of 8.5 percentage points above the US – and nearly 30% of the top 10% and 1% most-cited publications^[7].

Market Opportunities/Trends:

Thescholarlyresearchandpublishingindustryisconstantly innovating solutions that enable faster dissemination of research. The pursuit of speed, while ensuring that the published research is reliable, is creating opportunities for the research content outsourcing market.

• Artificial Intelligence: Publishing solutions providers are leveraging machine learning and natural language processing technologies to automate content workflow systems that expedite the publishing process.

• Open Access (OA): Open access publishing is anticipated to grow at a CAGR of 13% (average growth each year) in OA output and 13% in OA market value from 2022 to 2025^[8].

• Research Integrity: Manipulation of images and data to produce desired outcomes, false citations to boost metrics, and fraudulent peer reviews are additional pain points that compromise the quality and reliability of scientific research.

Market Enablers:

• Access to the global talent pool: Organizations tap into a global talent pool, accessing skilled researchers, writers, and subject matter experts from around the world. This access to diverse talent helps businesses obtain specialized knowledge and insights tailored to their specific research needs.

• Scalability and flexibility: Outsourcing research content provides organizations with the flexibility to scale their research efforts up or down based on fluctuating demands and project requirements. This scalability allows businesses to adapt quickly to changing market conditions and pursue growth opportunities without the constraints of maintaining a fixed-size research team.

• Government funding: The US Federal Government sources contributed about USD 50 billion to research and development in 2021^[9]. With the government supporting academia, research is expected to benefit in the long term.

• Technological advancements: The advancement of technology, including AI and machine learning, has transformed the research content outsourcing industry. Automation tools and software platforms streamline research processes, improve accuracy, and accelerate turnaround times, driving growth and innovation within the industry.

• Increasing demand for specialized research services: As businesses seek to gain competitive advantages and stay ahead in rapidly evolving markets, the demand for specialized research services has surged. Outsourcing providers offering niche expertise in areas such as market research, industry analysis, and competitive intelligence are well positioned to capitalize on this growing demand.

CORPORATE ELEARNING

The global eLearning market is rapidly evolving, with significant contributions from key regions such as the US, China, and India. The rise of artificial intelligence (AI) and increased digitization are revolutionizing the online learning sector, driving a substantial increase in demand for e-learning tools and solutions.

In 2022, the global eLearning market was valued at $232.47 billion, which is expected to grow at a CAGR of 13.28% to reach $631.80 billion by 2030 ^[10].

Corporate eLearning services providers cover a diverse range of segments, including BFSI, Manufacturing, Retail, Government & Defense, and Media & Entertainment industries. Service providers tailor solutions to meet the unique learning needs and regulatory requirements of each sector, ensuring comprehensive training programs that drive growth and innovation across organizations.

Corporate eLearning is used by firms to train, communicate, and enhance the value of employees across organizations. They are constantly endeavoring to increase the effectiveness and efficiency of their workforce. By leveraging advanced digital tools and innovative training methodologies, organizations can ensure continuous skill development and adaptability. This approach not only boosts employee performance but also drives overall organizational success.

The corporate learning segment within the e-learning market is influenced by several key geographies. These regions play a crucial role in driving growth and innovation, each contributing a substantial share to the corporate learning market.

Market Opportunities/Trends:

The learning and development sector is experiencing dynamic shifts that are shaping the future of corporate training. Here are some of the key trends driving this transformation:

• Increasing use of mobile applications

• Growth of blended learning

• Increasing use of AR and VR applications

• Surge in adoption of gamification

• Adoption of a hybrid model

Market Enablers:

Several factors are facilitating the rapid evolution of the learning landscape, enabling organizations to adopt and integrate new technologies seamlessly. These enablers include the following:

• Increasing demand for Internet-enabled services

• Growing need for strong workforce skills

• Digital transformation in learning

• Continuous investment in digital learning

The corporate eLearning market is set for substantial growth, driven by advancements in technology and the need for effective, flexible training solutions. Key trends and enablers such as mobile applications, AR and VR technologies, and digital transformation are revolutionizing corporate training, promising a future of enhanced workforce skills and organizational efficiency.

STRENGTHS

We are a market-focused organization and have built capabilities to help our customers achieve their business outcomes. The strengths that allow us to retain our market and capability positioning include the following:

Learning Focus

Ourmissionistohelpmakelearningsmarterandaccessible to all. We lay a strong emphasis on learning outcomes enabled by efficient yet immersive learning paths. We provide services across the entire journey of learners. In the educational publishing segment, these services include content assembly, media asset development, project management, rights and permissions, design, rich media, and digital learning objects. On the enterprise side, these services include content consultation, content authoring and curation, content organization, content delivery, and content upgrade.

Unparalleled Platform-Based Approach

MPS platforms have gained significant momentum in the last five years, and the value proposition of this business is product leadership. Smart and reliable engineering, dedicated customer support, and innovative marketing power our platforms. With the consolidation of our entire tech IP under the HighWire umbrella brand, we have further strengthened our platform suite, and more recently, acquired AJE to scale our AI capabilities and enter unchartered markets. We are relentlessly focused on leveraging our combined expertise and technology to enhance our products.

Focus on Meaningful Innovation

MPS has a strong focus on developing and implementing highly automated, efficient, scalable, and technologically superior workflows across all stages of content creation. These workflows bring together an optimum combination of input file structuring and validation, XML transformation, pagination, and quality assurance (QA) processes. MPS has also launched 2 SaaS based products to provide AI based technology to publishers across the globe. We are also leveraging our strong technological capabilities to significantly reduce the production time for eLearning solutions. We have empowered employees at all levels in the organization to propose and deliver meaningful changes in the way we produce content.

Financial Stability and Transparency

MPS is listed on the Indian stock exchanges and had a market capitalization of around INR 2,623 crores as of March 31, 2024. We have an active acquisition strategy that is focused on purchasing assets that will enable us to be a more meaningful partner to our customers. Our financial stability enables us to reinvest in our platform technology, production processes, and infrastructure (IT and facilities). This reinvestment further allows us to ramp up production quickly, manage operational risk, and attract the best talent to service our customers in the best possible way.

Employer Brand

MPS is one of the most desired employers in the industry with unrivaled experience, people, and breadth of expertise, all of which contribute to award-winning solutions. The company fosters an inclusive, healthy, and nurturing work environment, which supports and promotes the well-being and growth of 3000+ experts. MPS is a combination of various leading institutions across content outsourcing (Macmillan, 1970), eLearning (TIS - the division was a part of one of Indias largest conglomerates for more than twenty-seven years, & EI Design) and independent platform (Stanford, 1995 and AJE, 2024). With a diverse clientele and a long history of excellence, the goodwill accumulated by the brand is hard to replicate by newer and smaller companies.

Continuous Improvement Mindset

MPS has a dedicated Center of Operational Excellence that serves as a consultant and auditor to enhance the companys operations. We have integrated real-time analytics into the operational processes and employed machine learning and natural language processing to build advanced services like content profiling and cognitive quality control. We optimize the workflows, processes, and systems for all our customers leveraging on its scale of operations.

Change Design and Implementation

MPS has successfully implemented change programs and analytics-led innovation over its 50-year legacy in publishing outsourcing, 30-year leadership status in eLearning, and 25-year innovation status in platforms. As a result, we have a unique vantage point: we have learned from the past, have enabled the present, and are now well positioned to define the future.

OPPORTUNITIES

Total Addressable Market That Is Growing

MPS caters to a USD 600 billion+ total addressable market that includes Research Outsourcing, Education Services, and Corporate eLearning. The market has a significant runway for growth across research outsourcing, education services, and corporate eLearning end-markets. There is a secular shift to digital and increased outsourcing across all end markets with an increased need for an end-to-end solutions provider.

Seizing Opportunities with AI-Driven Expansion As the demand for AI solutions surges, MPS is strategically positioned to harness this momentum for accelerated growth. Our expansive roster of over 200 engineers and industry experts is dedicated to pioneering and perfecting AI applications that not only streamline workflows but also optimize operational processes. This relentless pursuit of innovation positions MPS as the partner of choice for organizations seeking cutting-edge AI solutions. Our initial deployments have already garnered enthusiastic feedback, signaling a promising trajectory as we continue to expand our AI offerings and solidify our status as a leader in the AI revolution.

Vendor Consolidation

In the markets that MPS serves, customers prefer to reduce the total number of vendors for ease of management and cost advantages. This tilts the balance in favor of the larger providers such as MPS, which have been regularly augmenting their services through organic and inorganic strategies. A round of vendor consolidation emerged as a consequence of the COVID-19 pandemic as stronger vendor partners such as MPS have been able to create harder lines of differentiation, while smaller companies have been unable to adapt to the new operating model. Another round of vendor consolidation has emerged from the recent acquisition of AJE, where MPS is now moving upstream in the value chain and servicing the entire academic publishing industry from researcher to author.

Higher Demand for Remote Learning

The eLearning industry is growing at more than 13% per annum (2024) and presents opportunities for growth. Educational institutions are expanding their digital presence, and corporates are increasingly enhancing their ratio of virtual training to total learning and development. MPS Interactive is well positioned to capitalize on these forces through its global presence and EdTech investment in Oceania region through Liberate Learning.

Rapid Digitization

The pandemic confined everyone to their homes. Due to the constraints on movement, audiences are consuming more content online and on mobile devices, leading to a surge in traffic for platforms. Businesses are looking for eLearning solutions that will help them adapt to the new normal and regain their level of productivity. In the long run, this represents a positive development as companies emerge from the crisis with an increased acceptance of digital learning methods. In the medium term, we will balance the impact of our clients economic pressures and delayed expenditures with our ability to focus on healthy sectors, mission-critical expenditures, price-competitive solutions, and an altered (increasingly digital) business development model. We will leverage our comprehensive suite of learning services and platforms to help our customers navigate the new normal.

THREATS

A possible threat to the business model could be from customers trying to own their offshore operations for control. Having said that, this does not appear to be a probable scenario as most captive units owned by customers have either been closed or sold to third parties.

RISK MANAGEMENT

Type of Risks	Description	Mitigation
Pricing risk	Due to increased competition, the company is witnessing high price pressures. This might have an adverse impact on the companys profitability.	MPS has established strong brand loyalty in the segment. Moreover, its emphasis on increasing productivity and automating its operations has allowed it to maintain its profitability alongside improving the overall efficiency of its operations.
Currency risk	Given its vast presence, the company is exposed to risks associated with the fluctuation of currency value.	MPS has adequate foreign exchange forward covers to cope with currency fluctuations. The forward cover is booked for foreign currency fluctuation risk in US dollars and GBP. The company has also hired a consultant to advise on currency and booking of contracts.
Technology risk	The company is exposed to risks associated with malware and system hacks. This might lead to data loss, which could result in financial losses, company disruptions, and the loss or leaking of personal information.	MPS is always working to strengthen the security of its digital assets by implementing steps to effectively combat and manage cyber-attacks. The company has implemented cutting-edge technologies to boost operational efficiency and cross-departmental communication. To avoid cyber-attacks, a variety of cybersecurity measures, such as firewalls and port restrictions, have already been implemented.
Talent acquisition risk	It is vital to improving skills and knowledge on a regular basis to thrive in a competitive environment. The companys prospects may be harmed if it is unable to retain competent experts or does not have enough training opportunities for its workforce.	The organization conducts necessary training and development programs on a regular basis to involve its staff in various activities and motivate them through mentorship programs. It hires a multigenerational team to create industry-leading content, learning, and platform solutions. Employees at all levels of the company are empowered to suggest and implement beneficial improvements in the way they produce content.

INTERNAL CONTROL

The company has well-equipped and effective internal control systems in place that match the scale of its sector and the complexity of the market it works in. Internal controls are commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization, and ensuring compliance with corporate policies.

The Audit Committee of the Board of the Company is undertaking a comprehensive system of internal audits and periodic assessments to ensure compliance with best practices. The company has laid down Internal financial controls as detailed in the Companies Act, 2013.

For the fiscal year 2023-2024, the company has engaged M/s. PricewaterhouseCoopers Services LLP as the internal auditors of the Company to report on the financial controls of the company and M/s. Walker Chandiok & Co. as the statutory auditors of the company to report on the financial statements (Standalone & Consolidated Financials) of the company.

The internal audit team conducts quarterly audits across the company, which include a review of operating effectiveness of internal controls. The audit committee reviews reports submitted by the management and audit reports submitted by internal auditors and statutory auditors. Suggestions for improvement are considered and the audit committee follows up on corrective action.

HUMAN RESOURCES

The company considers its people and their well-being to be the most crucial factors in its success and growth. The capable and motivated HR (Human Resource) team works round the clock to ensure that a culture of inclusion and engagement exists in the organization.

The HR department took on several projects to improve the workplace culture and employee well-being. Below are a few initiatives taken by the team:_ • Interactive sessions with experts for the mental and physical well-being of all employees including wellness webinars, health check-ups, etc._

• Senior leadership interactions with employees through Quarterly Business Updates.

• Team building and engagement activities through virtual engagements and in-office activities such as birthday celebrations, indoor games, fun challenges, puzzles, and much more.

• Corporate Social Responsibility (CSR) webinars to inform and educate the employees about MPS contributions to the society.

• Social activities that include donation drives, tree plantations, volunteering, among others.

• Annual day celebrations, quarterly team meet-ups and other activities to offer a conducive team building environment.

• Business-specific workshops to develop future leaders and align them with the vision of the organization.

In addition to the activities mentioned above, the organization has a performance-based reward and recognition program in place that allows the leadership team to recognize and motivate talent at the individual, team, and company levels. The CEO leads Zoom meetings to identify and announce the accomplishments of individual members and groups who collaborated to achieve the companys goal._

EMPOWERING COMMUNITIES: MPS LIMITEDS TRANSFORMATIVE CSR INITIATIVES

MPS is deeply committed to its Triple E values, driving its mission to uplift marginalized communities through collaboration with CSR Implementing Agencies. Education lies at the heart of MPSs societal contribution, ensuring sustainable development and growth for all involved.

MPSs CSR initiatives are a testament to its dedication to empowering communities by addressing educational needs and fostering well-being. Its employees are actively engaged in initiatives aimed at bringing about positive change, including supporting educational programs for girls, instilling higher values in students, and facilitating skill development. Additionally, MPS partners with humanitarian organizations to nurture and empower special children and providing specialized homes to help these children thrive regardless of societal divides. This collaboration exemplifies compassion and inclusivity, not only impacting the lives of the children but also inspiring a broader societal change.

Through these concerted efforts, MPS has significantly impacted the society, contributing to a more inclusive and equitable future for all._

Empowering Future: MPS-IIMPACT Girl Child Education Initiative

MPS is deeply committed to advancing girl child education through its CSR endeavours alongside IIMPACT, a nonprofit organization dedicated to uplifting underserved communities. Together, they champion the Girl Child Education Program (GCEP), a beacon of opportunity for out-of-school and irregularly schooled girls aged 6 to 14 in rural areas. GCEP operates through a network of learning centres strategically positioned in marginalized communities, offering not just education but also empowerment and hope.

During the fiscal year 2023-24, MPS proudly supported 62 learning centres across Uttarakhand (Dehradun, Haridwar) and Haryana (Mewat), each catering to approximately 30 girls. These centres serve as vital educational lifelines in regions where opportunities are limited, providing a nurturing environment where girls receive quality education up to class five. The curriculum and pedagogy are meticulously designed to be effective and engaging, with the goal of guiding around 80% of the girls towards mainstream education, thereby breaking the cycle of illiteracy and fostering a brighter future.

Through this partnership, MPS and IIMPACT are not just providing education; but also instilling empowerment, resilience, and hope in the hearts of young girls, thereby contributing to a more inclusive and equitable society.

Enlightening Minds: Instilling Higher Values through Vedanta CSR Initiatives MPS wholeheartedly backs the CSR endeavours of Vedanta Cultural Foundation and Vedanta Institute Delhi, championing the noble cause of fostering life, education, and enlightenment in philosophy, culture, and heritage realms. The Foundation stands as a bastion of mental tranquillity and active involvement, empowering individuals with the clarity of mind to surmount lifes hurdles and realize their inner peace.

As a beacon on the global stage, the Foundation shares the timeless wisdom encapsulated in Vedanta, the ancient Indian philosophy that beckons self-discovery and comprehension of realitys essence.

In support of Vedanta Cultural Foundations CSR initiatives, MPS has actively contributed to educational endeavours aimed at instilling elevated life values. This includes facilitating a three-year residential program at Vedanta Academy, organizing value-centric short-term educational courses across diverse Indian locales, conducting public lecture series to foster awareness about educational pursuits, and orchestrating weekly study sessions led by academy alumni for those inclined to delve deeper into the philosophical expanse.

Similarly, in collaboration with Vedanta Institute, MPS has fervently supported CSR projects focusing on bolstering education, knowledge dissemination, and scholarly exploration in philosophy, culture, and heritage spheres. These contributions have been instrumental in nurturing, advancing, and disseminating philosophical, cultural, and heritage education and research, both domestically and on the international stage.

Elevating Consciousness: MPS and Sambandh Health Foundations Drive for Mental Health Awareness At MPS, we passionately champion the normalization of mental health discourse and drive awareness initiatives in collaboration with the esteemed Sambandh Health Foundation. This partnership underscores our unwavering commitment to advancing public health, with a particular emphasis on fostering mental well-being and combatting tobacco dependency. The Sambandh Health Foundation stands as a beacon of hope, tirelessly dedicating its resources to providing crucial assistance to those navigating the complex terrain of mental illness while concurrently shedding light on the perils of tobacco usage.

Our corporate social responsibility initiatives extend far beyond mere rhetoric; they are tangible manifestations of our dedication to effecting positive change in communities across India. Through our support of the Sambandh Health Foundations CSR projects in Gurgaon, Gandhi Nagar, Basai, Jharsa, and adjoining regions, we actively participate in initiatives designed to address mental health challenges head-on. These projects are meticulously crafted to not only offer vital support to individuals grappling with mental health issues but also to foster a culture of understanding and empathy within society at large.

Central to the ethos of the Sambandh Health Foundation is the provision of a nurturing sanctuary for those whose lives have been touched by mental illness. Within this compassionate community, individuals find solace, support, and the necessary resources to embark on a journey of recovery and reintegration. Together with the Sambandh Health Foundation, we are committed to forging a future where mental health is destigmatized, resources are readily available, and every individual has the opportunity to lead a life of dignity and fulfillment.

Empowering Special Children: MPS & Prem Charitable Trust Collaborative Initiative Prem Charitable Trust serves as a haven of compassion, welcoming special children with open arms regardless of societal divides. Their mission, free from biases of caste, creed, religion, or financial status, focuses on nurturing these vulnerable souls to unlock their potential and empower them to serve others. In this noble cause, MPS stands as a committed partner, directing their support towards maintaining specialized homes and funding essential professionals like physiotherapists, occupational therapists, and special educators. Together, they create a nurturing environment where these children can thrive and find their place in the world.

Through their collaboration, MPS and Prem Charitable Trust pave the way for a brighter future, ensuring every child in their care receives the support they need to succeed. Their joint efforts not only impact the lives of these children positively but also inspire a broader movement of compassion and inclusivity across society. Together, they exemplify the power of empathy and solidarity, leaving a legacy of kindness for generations to come.

Empowering Minds: MPSs Contribution to Overcoming Learning Disabilities at KEM Hospital MPS exemplifies its commitment to societal welfare through its support of Seth GS Medical College and KEM Hospital, Diamond Jubilee Society Trusts CSR initiatives. These endeavours focus on advancing medical research, promoting education, and enhancing healthcare accessibility across all strata of society. Notably, the trusts inclusive approach ensures that the benefits of its endeavours extend to Mumbais slum dwellers, bridging the gap in healthcare disparities by delivering quality services through public hospitals.

An exemplary manifestation of MPSs dedication to social progress is its financial assistance to the learning disability project at KEM Hospital. This initiative offers vital support to children with disabilities, providing comprehensive clinical assessments, neurological examinations, and educational needs evaluations. By addressing learning challenges and facilitating academic growth, MPS contributes significantly to empowering these children and fostering a more inclusive society where every individual has the opportunity to thrive.

Cautionary Statement

Certain statements in the Annual Report, including this analysis concerning the companys objectives, expectations, estimates, projections, and future growth prospects may be regarded as forward-looking statements, which involve some risks and uncertainties that could cause actual results to differ materially. The risks and uncertainties relating to these statements include, but are not limited to, fluctuations in earnings and intense competition in publishing and eLearning services business including those factors which may affect our cost advantage, wage increase in India, reduced demand for services in our key focus areas, and general economic conditions affecting our businesses over which the company does not have any control.