MT Educare Management Discussions


ECONOMIC REVIEW

Global economic overview

Over the past three years, the global economy has faced an unprecedented series of crises, including high inflation and the ongoing repercussions of Russias invasion of Ukraine. These uncertain circumstances continue to erode consumer on and business confidence, economic growth. The International Monetary Fund (IMF) projects a decline in global growth from an estimated 3.4% in 2022 to 2.9% in 2023. Moreover, advanced economies are anticipated to undergo a significant plummeting from 2.7% in 2022 to 1.3% in 2023. In contrast, Emerging Market Economies (EMEs) are expected to exhibit an average growth rate of 3.9% in 2023, with a projected increase to 4.2% in 2024.

Global Economic Growth (in %)

Year-on-Year

Estimate

Projections

2022 2023 2024

World

3.4 2.8 3.0

Advanced Economies

2.7 1.3 1.4
United States 0.9 1.0 1.3
Euro Area 1.9 0.7 1.8
Japan 0.6 1.3 1.0

Emerging Market and

4.0 3.9 4.2

Developing Economies

China 3.0 5.8 4.7
Russia (4.0) 0.9 1.4
growth in

the first half of the

The global trade outlook is facing potential risks due to renewed bottlenecks in the supply chain and weaker-than-expected global demand. Trade concerns could be exacerbated by the intensification of trade protectionism, fragmentation of trade networks, and security issues surrounding supply chains. These factors may lead to a slowdown in trade growth and disruptions in supply chains. Looking ahead, the economic forecast for the next decade suggests a prolonged period of turbulence and unpredictability for businesses. After the resolution of regional recessions in 2023, global growth is projected to decelerate once again, with mature marketsyear 2023- playing a smaller role in global GDP. This deceleration can be attributed, in part, to the convergence of previously fast-growing economies like China and Korea. Additionally, the recent sluggishness can be attributed to slow progress in implementing structural reforms, escalating trade tensions, declining direct investment, and a slower adoption of innovation and technology in certain regions.

Nevertheless, companies still have opportunities to capitalize on investment prospects in mature markets by focusing on innovation to offset the decline in the labour force. Furthermore, emerging markets offer investment opportunities in physical and digital infrastructure, given their large and young labour force.

Indian economic overview

The Indian economy has displayed remarkable progress since the onset of the Covid-19 pandemic, achieving a complete rebound in the fiscal year 2021-22, surpassing the recovery of several other countries. This positive momentum has positioned India to return to its pre-pandemic growth trajectory in the fiscal year 2022-23.

According to the IMF, India is expected to be one of the fastest-growing economies in the world, with a projected growth rate of 5.9% in the current fiscal year. Indias headline retail inflation is also anticipated to ease, dropping from 6.7% in the previous year to 4.9% in 2023-24. This demonstrates Indias economic strength and unwavering determination to overcome even the most challenging obstacles. Multiple factors have contributed to the growth of the Indian economy in the fiscal year 2022-

23. The steady increase in capital expenditure (capex) by the Union Government has been one of the key drivers of this growth.

The impact of earlier disruptions such as inflation, the Russia-Ukraine war, supply chain disruptions, and semiconductor shortages has diminished as the economy experienced significant year 2022-23. This has resulted in the manufacturing sector transitioning from a mild acceleration to a cruise mode, leading to gains in both manufacturing output and investment, indicating positive progress.

Indian Economy GDP Growth Rate (in %)

Year

FY 19 FY 20 FY 21 FY 22 FY 23
GDP 6.5 3.7 (6.6) 8.7 7.0
Growth Rate

(Source: https://www.indiabudget.gov.in/economicsurvey/ doc/echapter.pdf) Going forward, the Indian economy is expected to be one of the fastest-growing major economies in the fiscal

24, driven by robust domestic drivers and strengthening macroeconomic fundamentals. It is projected to achieve a growth rate of 6% in FY 2023-24. In terms of inflation, rates are anticipated to remain moderate, ranging between 5-6%, thanks to the governments commitment to calibrated monetary policies. The Indian financial sector remains stable, and headline inflation is expected to decrease from its current elevated levels and fall below the upper tolerance band in 2023-24. Monetary policy continues to focus on gradually aligning inflation with the target. However, there are certain risks to both growth and inflation outlooks, including geopolitical hostilities, persistent global inflation,volatile global financial markets, and climate shocks. The governments ongoing emphasis on infrastructure development, combined with increasing private investment, is providing the necessary momentum for the countrys economy to thrive. Nevertheless, given the high degree of synchronization between Indias growth cycle and advanced economies, it is important to remain cautious about potential obstacles. Such hindrances could significantly Indias deepening trade and financial connections with advanced economies

Education Industry review

Education plays a vital role in the economic development of any country, and since gaining independence, India has consistently prioritized improving its literacy rate. Even today, the government continues to implement various programs aimed at promoting primary and higher education across the nation. The education sector in

India is currently witnessing rapid growth, with significant collaboration between private entities and the government to enhance this sector. Various measures are being taken to improve the quality of education in the country. The expansion of primary education and the increasing presence of international schools in India are becoming more noticeable. Many parents are willingly enrolling their children in international schools to ensure they receive a high-quality education right from the primary level. India, with a population of 580 million people in the age bracket of 5-24 years, holds the distinction of having the largest population in this category globally, presenting a significant holds a prominent position in the global education industry, boasting one of the largest networks of higher education institutions in the world. However, there is still immense potential for further development and improvement in the education system.

Driven by growing awareness, private Indian players are collaborating with international brands to provide an education of international standards. Private investments in the Indian education sector have witnessed substantial growth over the past two decades. Moreover, there is an increasing demand for specialized degrees, with more and more students opting for industry-focused qualifications.

In response to consumer demand, higher education institutes in India are focusing on creating online programs.

Indias education sector is poised to redefine itself in the coming years with the integration of cutting-edge technologies such as AI, ML, IoT, and blockchain. It has also embraced the Education 4.0 revolution, which promotes inclusive learning and enhances employability.

The government has implemented policies like the NEP, set to be fully implemented over the course of this decade starting from 2021-22, with a strong focus on high-quality vocational education.

The education sector in India was worth US$ 117 billion in FY20 and is projected to reach US$ 225 billion by FY25. The Indian ed-tech market is expected to grow to US$ 30 billion by 2031, making it the second-largest market for e-learning after the US, according to KPMG. Additionally, the online education market in India is anticipated to grow by US$ 2.28 billion during 2021-2025, with a compound annual growth rate (CAGR) of nearly 20%.

The emphasis placed on education and the growth potential of the education sector in India underscore the countrys commitment to nurturing its human capital and driving economic development through education.

Source: IBEF

The Indian education sector is currently in a critical phase of its growth. The countrys advantage lies in its large young population combined with low gross enrolment ratios (GERs), which presents a tremendous opportunity for stakeholders in the education sector.

Government initiatives for the sector

The Indian education sector allows 100% Foreign Direct Investment (FDI) under the automatic route, which promotes liberalization and encourages international participation in the sector.

In the Union Budget 2023, it was announced that District Institutes of Education and Training (DIETs) will be developed as vibrant institutes of excellence for teachers training.

Another significant announcement in the Union Budget 2023 was the establishment of a National Digital Library for Children and Adolescents. This library aims to provide access to high-quality books across different geographies, languages, genres, and reading levels, ensuring device-agnostic accessibility.

In November 2022, Mr. Dharmendra Pradhan, the Minister of Education and Skill Development

& Entrepreneurship, proposed the formation of a joint working group between India and Zimbabwe to collaborate on education, skill development, and capacity building.

To liberalize the education sector further, the government has initiated important measures such as the National Accreditation Regulatory Authority Bill for Higher Education and the Foreign Educational Institutions Bill.

In July 2022, Prime Minister Mr. Narendra Modi inaugurated a three-day Akhil Bharatiya Shiksha Samagam in Varanasi. This event aimed to discuss the implementation of the National Education Policy 2020 and its expansion throughout the country with various stakeholders.

The Department of School Education and the Ministry of Education received recognition from

UNESCO for their effective utilization of Information and Communication Technology (ICT) during the COVID-19 pandemic. This recognition was part of the comprehensive initiative called PM eVIDYA.

The Department of School Education and Literacy (DoSE&L), under the Ministry of Education, has planned to conduct an online public consultation survey to gather valuable inputs from various stakeholders. These inputs will assist in formulating the National Curriculum Framework.

The government schemes of Revitalising Infrastructure and Systems in Education (RISE) and Education Quality Upgradation and Inclusion Programme (EQUIP) play a crucial role in addressing the major challenges faced by the education sector. These initiatives focus on improving infrastructure, enhancing educational quality, and promoting inclusivity.

The Union Budget 2023 allocated a record-breaking amount of 1.12 lakh crore (US$ 13.5 billion) for education, marking an increase of approximately 8.2% compared to the previous years allocation.

Emerging trends in education sector transformations and achieve various

The education sector is undergoing a constant transformation driven by new pedagogical approaches, technological advancements, and evolving learner and teacher profiles. The Covid-19 pandemic further accelerated these changes and highlighted the sectors resilience in adapting to disruptions. In 2022, the education sector not only regained relative normalcy but also made significant progress toward a new paradigm in education

Digitalization of Education: In 2022, the government spearheaded the digitalization of education through initiatives such as DIKSHA, online MOOC courses, e-Pathshala web portal, and the National Repository of Open Educational Resources (NROER). These platforms provided e-content for students, teachers, educators, and parents. Moreover, both government and private institutions made significant investments in digital infrastructure, training teachers in ICT, and integrating blended learning and hybrid learning programs into their curricula. Innovations in education delivery were witnessed through television, radio, and online platforms.

Nurturing New-age Industry Skills: Education in 2022 prioritized the development of new-age industry skills, including innovation, creativity, technology, and interpersonal skills, among students. Pedagogy underwent a transformation as educators moved beyond academic excellence and embraced personalized learning, self-paced learning, student-driven learning, problem-based learning, and collaborative learning to foster global citizenship skills. The start-up culture experienced a surge with the emergence of over 24 new unicorns. Consequently, business education emphasized entrepreneurial competencies to support the aspirations of young graduates in creating their own successful ventures.

Holistic Education and Student Well-being: The focus on holistic education gained momentum in 2022, with institutions incorporating learning loss recovery programs and adopting a balanced approach that encompassed knowledge, skills, values, and attitudes. Many institutions introduced the Health Education Curriculum to promote health awareness among learners. Customized programs aimed at enhancing the mental health and well-being of students were also implemented, recognizing the importance of a comprehensive educational experience.

Thrust on Internationalism: In recent years, efforts have been made to further internationalize Indian education. While Indian students traditionally pursued higher education opportunities abroad, the trend has started to shift. In 2022, there was an increased focus on making India a preferred destination for international students. This trend towards internationalization should be continued in 2023 to enhance Indias position as a global knowledge hub and develop a competent human capital base, aligning with the countrys aspirations of becoming a developed nation and a knowledge superpower.

Way forward

In 2030, Indias higher education is projected to undergo significant

The adoption of blended learning methods, combining online learning and gamification, is expected to contribute to a growth rate of 38% in the next 2-4 years.

Higher education institutions will embrace innovative and transformative approaches to education.

.

The Gross Enrolment Ratio (GER) is anticipated to reach 50%, indicating increased access to higher education across the population.

Efforts will be made to minimize state-wise, gender-based, and social disparities in GER, aiming to reduce them to 5%.

India is expected to become the largest contributor to global talent, with one in four graduates worldwide being a product of the Indian higher education system. In terms of research output, India aims to be among the top five countries globally, with an annual expenditure of US$ 140 billion dedicated to research and development (R&D).

More than 20 Indian universities are projected to rank among the top 200 universities worldwide.

The education sector has undergone significant and witnessed increased financial allocations in recent years, positioning India as a potential knowledge hub. Recognizing the importance of human resources for overall national development, the focus on developing education infrastructure will continue throughout the current decade. Consequently, investments in education infrastructure are expected to witness a substantial increase in the coming years.

National Education Policy 2020

The National Education Policy 2020 (NEP 2020) was introduced on July 29, 2020, with the aim of outlining a new vision for Indias education system. It focuses on five essential pillars: Affordability, Accessibility, Quality,

Equity, and Accountability, with the goal of enabling lifelong learning. NEP 2020 has been designed to align with the evolving needs of society and the economy, recognizing the increasing demand for knowledge and the necessity to acquire new skills regularly.

One of the key objectives of NEP 2020 is to provide quality education and establish lifelong learning opportunities for all individuals. This is crucial in facilitating full and productive employment, as well as promoting decent work, which aligns with the United Nations Sustainable Development Goals for 2030.

By replacing the previous National Policy on Education from 1986, NEP 2020 offers a comprehensive framework to transform both elementary and higher education in India inby 2040. The policy incorporates significant school and higher education to equip the next generation with the necessary skills to thrive and compete in the digital age.

NEP 2020 places strong emphasis on multidisciplinary learning, digital literacy, written communication, problem-solving, logical reasoning, and vocational exposure. These aspects are considered vital for preparing students to navigate the challenges and opportunities presented by the contemporary world.

THREATS AND OPPORTUNITIES

The education system in India has undergone significant changes over the past few decades. Despite its long history of learning and knowledge, the Indian education system has faced numerous challenges, including unequal access to education, outdated curricula, and inadequate funding.

Despite these challenges, despite the countrys rapid economic growth and increasing prosperity, many rural and underprivileged communities still lack access to quality education. This inequality is reflected in the low literacy rates in these areas, as well as in the high dropout rates for students from these communities.

Another challenge facing the education system in India is outdated curricula. In many cases, the curricula used in schools and colleges are not in line with the latest developments in technology and society. This can result in students being ill-prepared for the demands of the modern workplace and can limit their future career prospects. In addition to these challenges, the education system in India also faces a lack of funding. Despite the governments commitment to education, many schools and colleges still lack the resources they need to provide quality education to their students. This includes funding for basic facilities, such as classrooms and libraries, as well as funding for the development of new curricula and the training of teachers. Despite these challenges, however, the education system in India has made great strides in recent years. Many universities and colleges have modernized their curricula to better reflect the needs of the modern workforce, and the government has increased its funding for education. Additionally, new initiatives, such as the Right to Education Act, have been introduced to increase access to education for all Indian citizens, regardless of their background or income.

To liberalise the education sector, the Government has taken initiatives such as the National Accreditation Regulatory Authority Bill for Higher Educational and the Foreign Educational Institutions Bill. The government schemes of Revitalising Infrastructure and System in Education (RISE) and Education Quality Upgradation and Inclusion Programme (EQUIP) are helping the government tackle the prominent challenges faced by the education sector.

The Central Government has approved the "New India Literacy Programme" for the period FY22-27 to cover all the aspects of adult education to align with the National Education Policy 2020 and Budget Announcements 2022-23.

The 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 the countrys 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.

Accordingly, the Company is actively identifying and pursuing opportunities by developing new key accounts and exploring other available prospects.

Furthermore, the Company is committed to establishing a comprehensive and robust enterprise-wide risk management structure. This framework enables all business units to proactively identify risks associated with key initiatives, allowing for the development of appropriate and effective mitigation plans to ensure the achievement of goals. The risk management mechanism is an integral part of the Companys core processes and involves recording, monitoring, independent testing, and controlling internal functions through the establishment of a Risk Control Matrix (RCM) for process control, a Business Risk Management (BRM) framework for business objectives, and Entity Level Control (ELC) for comprehensive risk reporting. The Company recognizes that the rapid technological advancements globally require dynamic changes in its business and delivery models. As risk-taking is inherent in all business activities, MT Educare consistently strives to strike a balance in risk appetite across each line of business. This approach ensures that each business generates high risk-adjusted returns while maximizing value for shareholders.

MT Educare has taken proactive measures to identify and prioritize risks, collaborating with business groups to document them and define a risk management framework. The Company has implemented internal controls over Financial Reporting that are sufficient and effective.At the entity level, MT Educares risk management by theframework addresses all significant businesses, considering managements insights, the business environment, and future initiatives. This enables the attainment of the business groups objectives while incorporating relevant mitigation strategies. The respective business groups simultaneously address the mitigation strategies for each identifiedrisk duringthefinalizationof strategic and operational parameters. Internal Audit and Assurance Group oversee compliance with and assurance of the risk mitigation strategies. risks The Company has categorized major and significant into two broad categories: External Risks and Internal Risks. Each category has its corresponding mitigation strategies. portfolio in terms MTEducaremaintains a well-diversified of service offerings and geographic reach.

FINANCIAL PERFORMANCE AND KEY FINANCIAL RATIOS

Consolidated Results Income

The total consolidated revenue for the year FY23 stood at

6,269 lakhs as against 6,803 Lakhs in FY22, this decrease of 7.84% in revenue. In previous year there were Income on account of liability written back while during the current year liability written back is negligible.

Expenditure

Total expenditure stood at 10,939 lakhs during the year under review as compared to 9,089 Lakhs in FY22, the Increase is due to Provision for doubtful debts and impairment of property.

Operational Expenses

The Direct expenses mainly include fees paid to visiting faculties, Rent & Printing Expenses for the study materials which are issued to students as a part of course material. The direct expense for the year FY23 was 3,829 Lakhs as against 3,105 Lakhs in FY22, the increase due to visiting lecturers fee and other material expenses.

Employee Benefit Expenses expense for the year FY23 stood at Theemployeebenefits

1,383 Lakhs as against 1,427 Lakhs in FY22, decreased by 3.08% primarily on account of rationalisation in a number of employees.

Other Expenditure

Other expenses for the year FY23 stood at 3,770 lakhs as against 2,024 lakhs in FY22, the increase is mainly on account of Increase in Provision for doubtful debts and impairment of property.

Finance Costs

Finance costs for the year FY23 stood at 864.32 lakhs as against 1,062 lakhs in FY22, the reduction is mainly on account of non-recognition of interest expense on disputed loans and reduction in interest on leased assets under IND-AS 116.

Depreciation and Amortisation Expenses

Depreciation & Amortisation expenses for the year FY23 stood at 1,092 lakhs as against 1,472 lakhs in FY22 on account of the de-recognition of ROU and impairment of Assets.

Profit After Tax

The profit/(loss) after tax is (6,071) lakhs for FY23 as compared to profit after tax for (2,552) Lakhs for FY22.

SOURCE OF FUNDS

Share Capital

The equity share capital remains the same for 7,223 Lakhs during the year under review.

Other Equity

Other equity decreased by 6,071 Lakhs from 4,531 Lakhs as on March 31, 2022 to (1,540) Lakhs as on March 31, 2023 on account of Net loss incurred during the year.

Non-Current Liabilities

Non-current liabilities Increased by 832 Lakhs from 5,599 Lakhs as on March 31, 2022 to 6,431 Lakhs as on March 31, 2023 largely on account of Increase in Borrowings and lease liabilities during the year.

Current Liabilities

Current liabilities Increased by 1,401 Lakhs from 15,930 Lakhs as on March 31, 2022 to 17,331 Lakhs as on March 31, 2023, increase is due to increase in current borrowings and other Current liabilities.

APPLICATION OF FUNDS

Non-Current Assets

Non-Current Assets decreased by 2,875 Lakhs from

22,473 Lakhs as on March 31, 2022 to 19,598 Lakhs as on March 31, 2023, mainly on account of Impairment of property, plant and Equipments, Goodwill and Investments and loans.

Current Assets

Current assets decreased by 963 Lakhs from 10,810 Lakhs as on March 31, 2022 to 9,847 Lakhs as on March 31, 2023, mainly due to reduction in trade receivables and other financial assets during the year under review.

Standalone Results Income

The revenue for the year FY23 stood at 3,511 lakhs as against 4,045 lakhs in FY22. because previously there were Income on account of liability written back.

Total Expenditure

Total expenditure was increased by 690 lakhs in FY23, Provision for doubtful debts and impairment of property.

Operational Expenses

The Direct expenses mainly include fees paid to visiting faculties & Printing Expenses for the study materials which are issued to students as a part of course material. The direct expense for the year FY23 was 1,916 Lakhs as against 1,565 Lakhs in FY22, the increase was mainly on account of Increase in expense of Visiting Lecturer fee, Electricity Charges and cost of study material during the year under review.

Employee Benefit Expenses

The employee benefits

936 Lakhs as against 1,132 Lakhs in FY22, decreased on account of rationalisation in a number of employees and controls on hiring as a cost-saving measure.

Other Expenditure

Other expenses for the year FY23 stood at 2,367 lakhs as against 1,432 lakhs in FY22 mainly on account of increase in Provision for doubtful debts and impairment of property.

Finance Costs

Finance costs have decreased by 134 lakhs reduction is mainly on account of non-recognition of interest expense on disputed loans and reduction in interest on leased assets under IND-AS 116.

Depreciation and Amortisation Expenses

Depreciation and amortisation expenses decreased by 266 lakhs on account of the de-recognition of ROU assets and impairment of Assets.

Profit After Tax

The profit/(loss) after tax is (4,859) lakhs for FY23 as compared to profit after tax for (2,516) Lakhs for FY22.

SOURCE OF FUNDS

Share Capital

The equity share capital remains the same for 7,223 Lakhs during the year under review.

Other Equity

Other equity decreased by 4,858 Lakhs from 4,148 Lakhs as on March 31, 2022 to (709.15) Lakhs as on March 31, 2023 largely on account of Net loss incurred during the year.

Non-Current Liabilities

Non-current liabilities increased by 310 Lakhs from 4,911 Lakhs as on March 31, 2022 to 5,221 Lakhs as on March 31, 2023 largely on account of Increase in Borrowings and lease liabilities during the year.

Current Liabilities

Current liabilities increased by 531 Lakhs from 10,882 Lakhs as on March 31, 2022 to 11,412 Lakhs as on March 31, 2023 increase is due to increase in current borrowings and other Current liabilities.

APPLICATION OF FUNDS

Non-Current Assets

Non-Current Assets decreased by 2,320 Lakhs from

18,080 Lakhs as on March 31, 2022 to 15,760 Lakhs as on March 31, 2023, mainly on account of Impairment of property, plant and Equipments, Goodwill and Investments and loans.

Current Assets

Current assets decreased byexpensefortheyear FY23stood at 1,697 Lakhs from 9,084 Lakhs as on March 31, 2022 to 7,387 Lakhs as on March 31, 2023, mainly due to reduction in trade receivables and other financial assets during the year under review.

Other information relating to details about various ratios were duly attached with the financials of the company (forming part of the financial report) along with reasons under note no. 51 of the Standalone financial Statement and Note no. 55A of the Consolidated Financial Statements.

OUTLOOK

India Ratings and Research (Ind-Ra) has revised the outlook on the Indian education sector to "improving" from "neutral" for upcoming financial year 2023-24, citing a recovery in enrolments post-pandemic and a continuous rise in enrolments in higher education. Student enrolments, according to the rating agency, fell in 2020-21 across the nation, as students shifted from private institutions to government institutions to get affordable education. However, Ind-Ra expects student headcount levels to touch new highs in 2023-24.

India pipped the UK to become the fifth largest economy in the world during the last quarter of 2021. The last time this happened was pre-pandemic, in 2019. India also boasts of having the worlds largest population in the age cohort 5-24 years at 580 million. The countrys median age is around 28.4 years.

Put these together, and the automatic implication becomes that India is a huge market for the education industry. The overall Indian education market is projected to be worth US$225 billion by FY 2024-25, showing compound annual growth rate (CAGR) of 14 percent as per a 2021 report. Indias education industry has become increasingly competitive and highly diversified across all segments.

Yet, there are scalable investment opportunities as quality access to education is not consistent throughout the country due to inadequate infrastructure and overwhelming demand.

This is helped by the fact that education is a non-discretionary spend in India and regarded as a key enabler for upward mobility. This means that irrespective of economic downturns, household budgets for education-related items stay prioritized.

The expanding population of school-going students is primarily driving the India higher education market. In addition to this, the launch of several favourable policies by government bodies, including the National Accreditation Regulatory Authority for Higher Educational Institutions Bill and the Foreign Educational Institutions Bill, aimed at boosting the academic sector and the increasing application of the Study in India program are acting as significant growth-inducing factors.

The higher education market size in India is expected to exhibit a growth rate (CAGR) of 9.9% during 2023-2028. Higher education represents tertiary education or the final stage of formal learning provided by universities, grad schools, college-level institutions, trade schools, academics, vocational degree-granting institutions, etc. It consists of numerous courses, such as graduation, post-graduation,diploma,certifications,Ph.D., etc. These higher education programs assist in career specialization, personal development, identifying new skills, enhancing critical thinking, improving employment scopes, etc. Consequently, they are in high demand among students in India.

The management will continue to take incremental steps in its commitment to deliver top notch coaching and ancillary services, to satisfy all our Stakeholders.

RISK AND CONCERNS

MT Educare has implemented a robust risk management mechanism to identify and mitigate potential risks to its business. The company has an Enterprise Risk Management (ERM) system in place, which facilitates the involvement of cross-functional teams in managing risks in a structured manner. This ensures that risk mitigation efforts are coordinated and comprehensive.

Furthermore, the senior-level members of the team, specifically the Board of Directors, play a crucial role in assessing long-term and macro risks. Their expertise and oversight contribute to a more comprehensive understanding of potential risks and the development of appropriate mitigation strategies.

However, it is important to note that despite these measures, unforeseen events such as force majeure situations, including the Covid-19 pandemic, can pose significant challenges to any business.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adopted global practices for evaluating and reporting on internal controls, based on its operational experience. It has also implemented one of the leading ERP solutions in its operations to integrate various facets of business operations, including Human Resources, Finance, and Sales. This has enabled the Company to control and monitor its operations and strengthen the ability of internal controls to function most optimally. These procedures ensure that the transactions are properly authorized, validated and reported and that the assets of the Company are safeguarded except for two instances of fraud by employee which were detected and duly disclosed with Stock Exchange. Additionally, the Company has laid down policies, wherever required, the Company has desired internal control & mechanism in place & more has designated an internal auditor from an internal source to complete the audits as per a defined plan in place from time to time. The Statutory Auditors also verify the adequacy of theinternalfinancial as well as compliance with the applicable laws and statutory regulations.

The Audit Committee of the Board with an Independent Director as its Chairman, meets quarterly and as and when required with the Management and Auditors to review the reports and to address the exceptions, if any.

HUMAN RESOURCE

The Company believes that Human Resource is the principal driver of change. It pushes the levers that take futuristic businesses to the next level of excellence and achievement. The Company focuses on providing individual development and growth in a professional work culture that enables innovation, ensures high performance and remains empowering. The Company work, towards creating leadership in all business in which it operates.

Many other programs for employee rejuvenation, creating stronger inter-personnel relations and team building and aimed at strengthening the bond across all divisions and locations of the company were organized. These programs helped employees significantly in leading a balanced work life in the organization. The HR function is committed to improve all processes based on the results and feedback and ensure that its manpower will remain its greatest asset. MT Educares HR strategy is centred on attracting and retaining top-tier industry talent. Our efforts to cultivate a performance-based culture and foster our employees have been fortified over the years through various training programs aimed at honing skills and upgrading knowledge. These initiatives serve as motivation for our team to strive for organizational excellence. To boost our teams performance, we provide leadership and managerial development training programs. Additionally, we offer several curriculum-based learning programs that impart functional and behavioural skills to consistently enhance our teams efficiency.

help keep the workforce motivated and aligned with the companys vision.

CAUTIONARY STATEMENT

This document contains statements about expected future events, and financial and operating results of MT

Educare Limited, which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualifiedin its entirety by the assumptions, qualifications and risk factors referred to in the managements discussion and analysis of MT Educare Limiteds Annual Report, 2022-23.