MT Educare Ltd Management Discussions

ECONOMIC REVIEW Global

In 2024, the world economy grew at a moderate rate of 3.3% as per IMF, signifying a phase of relative stability, but growth was still restrained. As we progress through 2025, the global environment is seeing a substantial transformation, prompted by nations realigning their policy priorities in reaction to escalating geopolitical tensions and increasing economic difficulties.

The United States has implemented a series of additional tariff measures, eliciting immediate and vigorous responses from key trading partners. This resulted in the enactment of nearly universal tariffs on April 2. Consequently, effective tariff rates have escalated to unprecedented heights, inflicting a severe and detrimental impact on global GDP. The issue has been exacerbated by the rapid and erratic nature of these policy shifts, which have markedly intensified economic uncertainty and rendered the shortterm outlook highly unstable.

In light of this uncertainty, worldwide headline inflation is projected to decrease at a slower rate than previously planned. IMF projection indicates a decline to 4.3% in 2025 and thereafter to 3.6% in 2026. The revision indicates elevated inflation projections for industrialised nations, somewhat counterbalanced by slight downward modifications in emerging markets and developing economies.

GDP growth projections			(in %)
	2024	2025	2026
Global Economy	3.3	2.8	3.0
Advanced Economies	1.8	1.4	1.5
Emerging Markets and Developing Economies	4.3	3.7	3.9

(Source: IMF, World Economic Outlook, April 2025)

Despite the ongoing difficulties confronting the global economy, this period offers a meaningful opportunity to strengthen resilience and lay the foundation for a more sustainable and inclusive future. The adaptability shown by many economies under pressure signals that recovery is possible-provided it is supported by well-coordinated policies and forward-looking reforms.

Progress will depend on collaborative efforts to foster a stable and transparent global trading environment, ensure timely and equitable debt resolution, and address longstanding structural imbalances. These steps can contribute to a recovery that is not only robust but also more evenly shared across countries and communities.

The road ahead will require sustained international cooperation and a shared sense of purpose. With coherent strategies, capable leadership, and a commitment to collective progress, the global economy can regain momentum, rebuild essential buffers, and create new opportunities for long-term prosperity.

India

Indias GDP grew by 6.5% in FY 2024-25, reaffirming its position as one of the fastest-growing major economies amid continued global uncertainty. This robust performance was underpinned by structural reforms, rapid digitalisation, and sustained investments in infrastructure-all of which strengthened the countrys economic foundation. Resilient domestic demand and rising private sector investment further contributed to broad-based growth across key sectors.

Monetary policy adopted an accommodative stance during the year. The Reserve Bank of India reduced the repo rate by 25 basis points to 6.25%, balancing inflation control with the need to stimulate credit flow and investment. This policy shift improved liquidity conditions and supported corporate expansion.

On the external front, Indias trade performance remained resilient. Total exports rose nearly 6% year- on-year, with services exports emerging as a key driver. This growth enhanced Indias position in global services trade, reinforcing its role as a major exporter of high- value services.

The convergence of progress across consumption, employment, investment, policy, and trade created a strong and coherent platform for sustained economic momentum. Indias ability to navigate a volatile global environment while driving internal transformation reflects its growing resilience and readiness to harness future opportunities.

Indian GDP trend				(in %)
FY 2020-21	FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25
(6.6)	8.7	7.0	8.2	6.5

(Source: Government of India)

Indias FY 2025-26 economic outlook is cautious and resilient due to domestic strengths and global uncertainties. Commodity price volatility, trade interruptions, and geopolitical concerns may hinder growth. Due to structural stability and a strong policy framework, the economy should be able to weather these threats. Maintaining momentum requires accelerating corporate wage growth, improving consumer mood, and boosting private sector investment in critical industries. Agriculture, lower food inflation, and macroeconomic stability should boost rural demand. These elements are crucial for inclusive growth and consumption. Indias global competitiveness is likely to improve with targeted deregulation and grassroots structural reforms.

EDUCATION INDUSTRY REVIEW

India holds a prominent place in the global education landscape, home to one of the worlds largest and most diverse networks of higher learning institutions. With nearly 26% of the population in the 0-14 age group, the countrys demographic dividend presents significant opportunities for long-term educational and economic advancement.

Over the years, India has witnessed a steady rise in the number of colleges and universities, reflecting the growing demand for accessible, quality education and skilling. This expansion is mirrored in the consistent increase in enrolment levels, improved gender parity, and greater inclusion across urban and rural geographies. The countrys Gross Enrolment Ratio in higher education continues to strengthen, driven by policy support, rising awareness, and a collective aspiration for academic and professional success.

A defining feature of Indias education growth story is the emergence of a dynamic edtech ecosystem. Backed by a tech-savvy youth population and deepening internet penetration, online and hybrid learning models are reshaping the education landscape—particularly in the areas of higher education, competitive exam preparation, and professional upskilling. From innovative startups to established platforms, Indias edtech space has attracted robust investment and strategic collaborations with global players.

Indias English-speaking population and growing capabilities in digital content development position it as a natural hub for global education services. Indian institutions are increasingly gaining recognition in international rankings, driven by improvements in pedagogy, research capabilities, and cross-border academic partnerships.

Policy reforms have played a pivotal role in enabling this transformation. The National Education Policy (NEP) provides a forward-looking roadmap aimed at delivering holistic, multidisciplinary, and skill-oriented learning. Complementary initiatives—such as the National Curriculum Framework, PM Vidyalaxmi scheme, New India Literacy Programme, and the Skill India Digital platform— are advancing goals of access, equity, and employability across education levels.

With the sector valued at approximately US$ 117 billion in FY20 and projected to reach US$ 225 billion by FY25, Indias education market continues to expand at scale. The edtech segment alone is expected to grow to US$ 30 billion by 2031, underscoring the countrys growing leadership in education innovation and digital learning solutions.

Union Budget 2025-26

• Bharatiya Bhasha Pustak Scheme: Digital Indian language books for school and higher education to improve subject comprehension.

• National Centres of Excellence for Skilling: Five new centres to be set up in collaboration with global partners to focus on curriculum design, trainer training, skills certification, and regular reviews.

• Expansion of Capacity in IITs: Additional infrastructure in five post-2014 IITs to accommodate 6,500 more students; expansion of hostel and allied facilities at IIT Patna.

• Centre of Excellence in AI for Education: A dedicated Centre of Excellence in Artificial Intelligence for education with an outlay of 500 crore to enhance learning through technology.

• Expansion of Medical Education: 10,000 new MBBS and PG seats to be added in the coming year, as part of the goal to add 75,000 medical seats over the next five years.

Emerging trends in education sector Government Policy and Educational Reforms: The NEP

2020 aims for a 100% Gross Enrollment Ratio (GER) by 2030. The GER is near universal at the primary (93 %) and the efforts are underway to bridge the gaps at the secondary (77.4 %) and higher secondary level (56.2 %), driving the nation closer to its vision of inclusive and equitable education for all. In the realm of higher education, India has seen a dramatic rise in student enrollment. The total number of students enrolled in higher education reached 4.33 crore in 2021-22, a 26.5% increase from 3.42 crore in 2014-15. The Gross Enrollment Ratio (GER) for the 18-23 age group also rose from 23.7% to 28.4% in the same period.

Technological Integration in Education: The integration of advanced technologies such as AI, VR, and online learning platforms is revolutionizing education delivery and consumption. This transformation is rendering education more accessible and tailored to individual learning styles and needs.

Increased Focus on Skill Development: There is a growing emphasis on vocational training and skill development to bridge the gap between academia and industry demands. Educational institutions are increasingly integrating skill- based courses to enhance employability.

Rising Demand for Quality Higher Education: With a sizable youth population and increasing awareness of the value of quality education, there is a surge in demand for higher education, propelling expansion and diversification in the sector.

Private Sector Participation and Investment: Private entities play a critical role in expanding and enhancing the education sector. This encompasses not only the establishment of new institutions but also investment in edtech startups and innovative educational solutions.

Globalization and International Collaborations: The sector is witnessing a trend towards globalization with increased collaborations between Indian and foreign universities. This encompasses student and faculty exchange programs, research partnerships, and dual degree programs.

Digital Divide and Technological Access: Despite the accelerated push for digital education, a significant digital divide persists. Access to reliable internet and technological devices remains a major barrier for many students, particularly in rural and low-income areas, impacting the quality of education and participation in online learning.

Quality of Education and Teacher Training: Ensuring consistent quality of education across various regions and institutions poses a challenge. There is a need for improved training and development programs for teachers, especially in adapting to new educational technologies and pedagogies.

Infrastructure Gaps: Many educational institutions, particularly in less developed areas, face inadequate infrastructure, including proper classrooms, sanitation facilities, and learning resources, hampering the overall educational environment and learning outcomes.

Curriculum Modernization and Skill Development:

The curriculum in numerous educational institutions does not align with current industry demands and lacks a focus on skill development. Updating and modernizing the curriculum to include more practical, skill-based, and contemporary subjects remains a significant challenge.

Regulatory and Policy Framework: Navigating the regulatory framework and adapting to new educational policies while maintaining standards and quality present ongoing challenges. This includes addressing bureaucratic hurdles and ensuring compliance with evolving educational norms and standards.

Inclusivity and Equity in Education: Addressing inclusivity and ensuring equitable access to quality education for all sections of society, including differently-abled students, women, and marginalized communities, remains a pressing challenge.

Way forward

Indias education sector is entering a decisive phase, backed by the momentum of ongoing reforms, demographic strength, and digital acceleration. The effective implementation of the National Education Policy (NEP) 2020 remains pivotal in building a future-ready, inclusive, and holistic education system. As the country progresses

toward its goal of achieving a 100% Gross Enrollment Ratio by 2030, the emphasis must be on strengthening foundational literacy and numeracy, particularly in early childhood and primary education.

To bridge regional and socio-economic disparities, focused investments in infrastructure, digital connectivity, and multilingual educational resources are essential. Expanding access to quality education in rural and underserved areas will be key to ensuring equitable learning outcomes. At the same time, Indias growing youth population presents an opportunity to scale skill-based education, vocational training, and industry-aligned programs that can directly enhance employability.

The rapid rise of edtech and hybrid learning formats calls for deeper integration of technology in classrooms, supported by teacher training and curriculum innovation. The establishment of Centres of Excellence in AI and Skilling, as outlined in the Union Budget 2025-26, reflects a forward-looking approach to embedding digital competencies into the academic fabric.

Moreover, global partnerships, institutional collaborations, and outcome-based learning frameworks will play a vital role in improving research, innovation, and international rankings of Indian institutions. Continuous teacher development, learner-centric pedagogies, and inclusive policies must underpin this progress.

Looking ahead, India must focus not just on expanding the education system, but on making it more adaptive, relevant, and resilient. By aligning educational outcomes with the aspirations of a new generation and the demands of a dynamic economy, India can position itself as a global hub for knowledge, innovation, and human capital development.

National Education Policy 2020

The National Education Policy (NEP) 2020 represents a landmark shift in Indias approach to education, aiming to build a more holistic, flexible, and inclusive learning ecosystem across all stages—from early childhood to higher education. Replacing the traditional 10+2 format, the new 5+3+3+4 structure encompasses ages 3 to 18 and targets universal access to Early Childhood Care and Education (ECCE) by 2025. Rooted in Indias cultural heritage and aligned with global standards, NEP 2020 aspires to nurture cognitive, emotional, ethical, and creative capacities, while positioning India as a knowledge superpower by 2040.

In school education, the policy emphasizes foundational literacy and numeracy through the NIPUN Bharat mission and shifts pedagogy toward experiential, activity-based learning. Key reforms include curricular flexibility, dismantling rigid subject silos, promoting multilingual education, and introducing holistic report cards that measure learning outcomes more comprehensively. In

higher education, NEP advocates for multidisciplinary universities, the creation of a unified regulator (HECI), and a flexible entry-exit framework supported by an Academic Credit Bank. It also prioritizes research through the proposed National Research Foundation and leverages digital platforms such as SWAYAM, MOOCs, NETF, and the National Academic Depository to expand access and digitally secure academic records.

Implementation progress has been uneven across states. Maharashtra has led with initiatives such as skill- based internships and revised curricula, while others, like Chandigarh, face textbook delays. The curriculum draft for Classes III-V was released for public feedback in July 2025, reflecting continued efforts toward national alignment. However, challenges remain. States like West Bengal have asserted their autonomy with alternate models (e.g., 5+4+2+2), reinforcing the policys non-binding nature. Criticism from states like Bihar highlights fears of commercialization and exclusion of disadvantaged groups, particularly in a loan-based funding environment. Additional hurdles include digital inequality, teacher training gaps, content delays, and ideological concerns surrounding curricular material.

In sum, NEP 2020 is a bold blueprint for transforming Indias education system. While promising initiatives—such as NIPUN Bharat, digital tools, and curricular reforms— signal progress, sustained success will require coordinated execution, inclusive strategies, and collaborative support from governments, institutions, educators, and civil society.

THREATS AND OPPORTUNITIES

Indias education system has experienced a series of structural and policy shifts over recent decades. Despite its rich legacy in learning and scholarship, the sector has grappled with persistent challenges such as unequal access, outdated curricula, and limited funding. While the nations economic development has accelerated, large sections of rural and underprivileged populations continue to face obstacles in accessing quality education. This disparity is evident in the relatively low literacy levels and high dropout rates, especially among marginalized communities.

A key concern continues to be the lack of relevance in curricula. In several cases, academic programs across schools and higher education institutions are not aligned with current technological and societal advancements. This disconnect leaves students underprepared for evolving workforce demands and limits their professional growth potential.

Financial constraints further compound the problem. Although the government has made education a priority area, a significant number of institutions still operate with insufficient infrastructure and learning resources. Deficits in basic amenities such as classrooms, libraries, laboratories, and digital tools hinder the delivery of quality

education. Moreover, limited financial support restricts the regular upskilling of educators and the timely upgrade of curricula.

Despite these longstanding challenges, positive developments are underway. Several universities and colleges have modernized their programs to better reflect contemporary workforce requirements. Government spending on education has also increased, with the introduction of progressive legislation and reforms aimed at ensuring inclusive and equitable access. For instance, the implementation of the Right to Education (RTE) Act has broadened access to education across all socioeconomic segments.

To further liberalize the sector, the Government of India has introduced legislative and policy measures such as the National Accreditation Regulatory Authority Bill for Higher Education and the Foreign Educational Institutions Bill. Additionally, strategic programs like Revitalizing Infrastructure and Systems in Education (RISE) and the Education Quality Upgradation and Inclusion Programme (EQUIP) have been rolled out to strengthen institutional capacity, improve quality standards, and bridge access gaps.

The "New India Literacy Programme," launched for FY2022-2027, complements these efforts by promoting adult education in alignment with the objectives of the National Education Policy (NEP) 2020. These initiatives reflect a broader shift towards positioning India as a global knowledge hub. With a growing emphasis on skill development and human capital enhancement, the current decade is expected to witness sustained investment in education infrastructure and digital learning platforms.

In alignment with this national momentum, the Company is actively exploring new business opportunities within the sector. Efforts are underway to expand client portfolios and tap into emerging growth segments by engaging with key institutional stakeholders and forming strategic partnerships.

The Company has also embedded a comprehensive enterprise-wide risk management framework to navigate the dynamic business environment. This framework empowers business units to proactively identify, assess, and mitigate risks linked to core initiatives. It integrates process-level monitoring through a Risk Control Matrix (RCM), business-level evaluation via a Business Risk Management (BRM) framework, and entity-wide oversight using Entity Level Controls (ELC). This layered structure ensures that risks are not only documented but also actively managed to safeguard long-term objectives.

Given the rapid pace of technological evolution and changes in service delivery models, the Company recognizes the need for adaptive and forward-looking risk management. Every business decision involves some degree of risk; however, the focus remains on maintaining a balanced risk appetite that aligns with the Companys value creation goals. The aim is to ensure high risk-adjusted returns across all business lines while protecting shareholder interests.

MT Educare has instituted robust internal controls over financial reporting and operational risk. Risks are systematically identified and prioritized through close collaboration between business units and risk management teams. This approach ensures that mitigation strategies are embedded during the planning and execution stages of both strategic and operational initiatives. The Internal Audit and Assurance Group plays a critical role in ensuring compliance and evaluating the effectiveness of these strategies.

Risks are broadly classified into External and Internal categories, each with distinct mitigation frameworks. MT Educare maintains a diversified service and geographic portfolio, which provides resilience and enables the Company to manage uncertainties effectively while pursuing long-term growth.

FINANCIAL PERFORMANCE AND KEY FINANCIAL RATIOS

Consolidated Results Income

The total consolidated revenue for FY25 stood at 5,563 lakhs, as compared to 5,137 lakhs in FY24, reflecting an increase of 8.29%. This growth was primarily driven by higher income from content creation in one of the subsidiary companies.

Expenditure

The total expenditure for the year under review stood at 7,389 lakhs, as compared to 7,768 lakhs in FY24, reflecting a decline primarily due to a reduction in direct expenses incurred by the Company.

Operational Expenses

Direct expenses primarily comprise fees paid to visiting faculty, rent, and printing costs for study materials provided to students as part of the course curriculum. For FY25, direct expenses stood at 3,334 lakhs, as compared to 3,652 lakhs in FY24. The decline was mainly attributable to a reduction in visiting lecturers fees and costs related to study materials.

Employee Benefit Expenses

The employee benefits expense for FY25 stood at 950 lakhs, as compared to 861 lakhs in FY24, marking an increase of 10.34%. This rise was primarily due to an increase in manpower and salary increments to existing employees.

Other Expenditure

Other expenses for FY25 stood at 878 lakhs, as compared to 1,004 lakhs in FY24. The decrease was primarily on account of reduced expenditure on business promotion and advertisement activities.

Finance Costs

Finance costs for FY25 stood at 1,343 lakhs, as compared to 1,215 lakhs in FY24, reflecting an increase primarily due to higher interest expenses incurred by a subsidiary company.

Depreciation and Amortisation Expenses

Depreciation and amortisation expenses for FY25 stood at 883 lakhs, as compared to 1,037 lakhs in FY24, indicating a reduction over the previous year.

Profit After Tax

The loss after tax for FY25 stood at 3,099 lakhs, as against a loss of 2,765 lakhs in FY24, indicating a widening of the loss during the year.

SOURCE OF FUNDS Share Capital

The equity share capital remained unchanged at 7,223 lakhs during the year under review.

Other Equity

Other equity decreased by 3,121 lakhs, from (4,281) lakhs as on March 31,2024 to (7,402) lakhs as on March 31, 2025.

Non-Current Liabilities

Non-current liabilities decreased by 390 lakhs, from 2,222.70 lakhs as on March 31, 2024 to 1,833 lakhs as on March 31, 2025, primarily due to a reduction in lease liabilities.

Current Liabilities

Current liabilities increased by 876 lakhs, from 23,914.74 lakhs as on March 31,2024 to 24,790.34 lakhs as on March 31, 2025, primarily due to an increase in trade payables and other payables.

APPLICATION OF FUNDS Non-Current Assets

Non-current assets decreased by 7,404 lakhs, from 16,601 lakhs as on March 31, 2024 to 9,197 lakhs as on March 31, 2025, primarily due to the derecognition of Right-of-Use (ROU) assets and the corresponding deferred tax assets (DTA) related to the same.

Current Assets

Current assets increased by 292 lakhs, from 12,478 lakhs as on March 31, 2024 to 12,770 lakhs as on March 31, 2025, primarily due to an increase in investments in fixed deposits (FDs).

Standalone Results Income

Revenue for FY25 stood at 2,546 lakhs, as compared to 2,884 lakhs in FY24, reflecting a decline of 11.72%. This decrease was primarily attributable to a reduction in student rollover enrolments.

Total Expenditure

Total expenditure decreased by 1,022 lakhs in FY25, primarily due to a reduction in depreciation and interest expenses arising from the application of Ind AS 116.

Operational Expenses

Direct expenses primarily include fees paid to visiting faculty and printing costs for study materials provided to students as part of the course curriculum. For FY25, direct expenses stood at 1,773 lakhs, as compared to 1,944 lakhs in FY24.

Employee Benefit Expenses

Employee benefits expense for FY25 stood at 607 lakhs, as compared to 502 lakhs in FY24. The increase was primarily on account of higher manpower costs and salary increments to existing employees.

Other Expenditure

Other expenses for FY25 stood at 478 lakhs, as compared to 563 lakhs in FY24. The decrease was primarily due to reduced spending on business promotion and advertisement activities.

Finance Costs

Finance costs decreased by 573 lakhs in FY25, primarily due to a reduction in interest on lease liabilities in accordance with Ind AS 116.

Depreciation and Amortisation Expenses

Depreciation and amortisation expenses decreased by 299 lakhs in FY25, primarily due to a reduction in lease assets, in line with the provisions of Ind AS 116.

Profit After Tax

The profit after tax for FY25 stood at 821 lakhs, compared to a loss of 1,475 lakhs in FY24, indicating a substantial improvement in the Companys financial performance.

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 increased by 795.58 lakhs, improving from (2,160.27) lakhs as on March 31,2024 to (1,364.69) lakhs as on March 31,2025.

Non-Current Liabilities

Non-current liabilities decreased by 5,105 lakhs, from 5,532 lakhs as on March 31, 2024 to 427 lakhs as on March 31, 2025, largely due to a significant reduction in lease liabilities during the year in accordance with Ind AS 116.

Current Liabilities

Current liabilities increased by 114 lakhs, from 11,482 lakhs as on March 31,2024 to 11,596 lakhs as on March 31, 2025.

APPLICATION OF FUNDS Non-Current Assets

Non-current assets decreased by 4,083 lakhs, from 13,151 lakhs as on March 31, 2024 to 9,068 lakhs as on March 31, 2025, primarily due to the derecognition of Right-of-Use (ROU) assets and the corresponding deferred tax assets (DTA) related to the same.

Current Assets

Current assets decreased by 112 lakhs, from 8,926 lakhs as on March 31,2024 to 8,814 lakhs as on March 31,2025, primarily due to a reduction in receivables during the year under review.

Additional information relating to various financial ratios, along with the corresponding explanations, has been duly provided as part of the financial statements of the Company, forming an integral part of the financial report.

OUTLOOK

As India enters a transformative phase, its education system is poised for a fundamental overhaul. The coming decade will not merely improve existing structures but reimagine how learning is delivered, accessed, and experienced. The digital acceleration during the pandemic has laid the groundwork for deeper integration of emerging technologies. Artificial Intelligence, Machine Learning, blockchain, Virtual Reality, and Augmented Reality will drive personalized learning, secure academic credentials, and immersive classroom experiences. These advancements will make education more engaging, accessible, and responsive to individual learner needs across diverse geographies.

The National Education Policy (NEP) 2020 will play a pivotal role in shaping long-term reforms. Its emphasis on holistic development, flexibility, and skill-based learning is expected to gain full momentum over the next decade. Multiple entry and exit options, vocational training, and multilingual education will become mainstream, helping

learners adapt to a dynamic and globalized job market. Schools and higher education institutions will increasingly collaborate with industry to ensure alignment between academic offerings and real-world requirements. In parallel, soft skills, emotional intelligence, and entrepreneurial thinking will gain prominence as essential capabilities for the future workforce.

Generative AI will become a central enabler in classrooms, offering real-time support, interactive content, and personalized feedback to both students and educators. At the same time, inclusive learning will receive greater attention through tech-enabled solutions for rural areas and students with special needs. Affordability and financial access will be improved through innovative funding models and policy support. Sustainability will also be embedded as a key theme, with educational institutions adopting green practices and incorporating climate consciousness into the curriculum.

Teachers will continue to play a critical role, supported by continuous professional development and AI-assisted tools that enhance teaching effectiveness. Hybrid learning models will offer flexibility, reduce infrastructure costs, and expand access to global resources. Policy innovation will be vital in sustaining this momentum, with support for public- private partnerships, education technology research, and universal access to quality education.

While Indias education system will increasingly align with global benchmarks, it will also preserve and promote cultural identity. Curricula will integrate local traditions, languages, and knowledge systems alongside global exposure and bilingual proficiency. Despite the optimistic outlook, challenges such as the digital divide, technology resistance among educators, and cost barriers must be proactively addressed.

Progress will be measured through improved enrollment and retention rates, higher skill readiness among graduates, better global rankings, and reduced regional disparities. If India seizes this opportunity with clarity and commitment, the next decade can position the country as a global leader in education, empowering learners to thrive in an increasingly complex and connected world.

RISK AND CONCERNS

MT Educare has instituted a comprehensive risk management framework designed to proactively identify, assess, and address potential threats to its operations. At the core of this framework is the Enterprise Risk Management (ERM) system, which enables crossfunctional collaboration and a structured approach to risk mitigation. This integrated system ensures that risks are consistently monitored and managed across all levels of the organization.

The active involvement of senior leadership, including the Board of Directors, reinforces the robustness of the framework. Their strategic oversight ensures a forwardlooking evaluation of emerging and long-term risks, fostering the development of effective mitigation strategies aligned with the Companys objectives.

While the framework is designed to be dynamic and responsive, it is recognized that certain unforeseen events—such as natural disasters or regulatory shifts— may still pose challenges. MT Educare remains committed to enhancing its preparedness and resilience to navigate such uncertainties effectively.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adopted globally benchmarked practices for evaluating and reporting internal controls, drawing from its operational expertise. It has also implemented a leading ERP solution to integrate key business functions such as Human Resources, Finance, and Sales. This integration has enhanced operational oversight, enabling more effective monitoring and control, and ensuring that internal control systems function at optimal efficiency.

These measures ensure that all transactions are appropriately authorized, recorded, validated, and reported, while also safeguarding the Companys assets. Comprehensive policies and control mechanisms have been established where necessary, and the Company has appointed an internal auditor from within the organization to execute audits based on a defined, periodically updated audit plan.

In addition to internal audits, the Statutory Auditors assess the adequacy of internal financial controls and verify compliance with applicable laws and regulatory requirements.

Oversight is further reinforced by the Audit Committee of the Board, chaired by an Independent Director. The Committee meets quarterly—or as required—with the Management and Auditors to review reports, discuss key findings, and address any exceptions or concerns that may arise.

HUMAN RESOURCE

MT Educares human resources strategy is thoughtfully designed to attract, develop, and retain high-caliber talent. The Companys consistent focus on cultivating a

performance-oriented culture and investing in employee growth has been instrumental to its sustained success. A wide range of targeted training initiatives—focused on skill development and knowledge enhancement— empowers employees to contribute meaningfully to organizational goals while advancing their personal and professional growth.

To drive high-performing teams, MT Educare places strong emphasis on leadership and managerial development. Structured leadership programs are tailored to equip employees with the critical competencies needed to navigate todays dynamic business landscape. Complementing these are function-specific and behavioural learning modules, designed to ensure holistic capability building and promote a well-rounded professional outlook.

Continuous learning is a central tenet of the Companys approach to workforce development. By offering employees ongoing opportunities to upskill and reskill, MT Educare fosters agility, innovation, and resilience across all levels of the organization.

In parallel, the Companys employee-centric HR policies help cultivate a work environment that encourages engagement, alignment, and well-being. From inclusive wellness programs to flexible work arrangements, MT Educare is committed to supporting the holistic needs of its people. As of March 31,2025, the Companys workforce strength exceeded [], reflecting its strong position as an employer of choice in the education sector.

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 qualified in its entirety by the assumptions, qualifications and risk factors referred to in the managements discussion and analysis of MT Educare Limiteds Annual Report, 2024-25.