vjtf eduservices ltd share price Management discussions


REPORT BUSINESS OVERVIEW

We provide a wide variety of educational services to K-12 schools which include designing curriculum, providing teaching aids, supplying methods for imparting education, organizing extra-curricular activities for students and teacher training, etc. The Company is already providing services to Witty Kids at Goregaon East, Witty International School, Borivali (West), Malad West, Udaipur and Bhilwara. The Company has now started providing services to Witty Kids, Udaipur and Witty International School, Bhilwara.

INDIAN ECONOMIC OVERVIEW

Union Finance Minister Nirmala Sitharaman announced Union Budget 2023, allocating Rs. 1,12,899/- lakh crore to the education sector. This includes allocation to secondary education, higher education and various schemes like the Samagra Shiksha Abhiyaan. In comparison to the previous budget estimate (BE) of Rs. 1,04,278/- crore, this is nearly 8.26 crore more or 8.26 percent growth 2022-23.

In Union Budget 2022 the education sector was allotted Rs. 1,04,278/- crore signifying a rise of Rs 11,054/- crore from 2021. In 2022-23, the Department of School Education and Literacy was allocated Rs 63,449 crore in or 61% of the Ministrys total budget. The Department of Higher Education was allocated Rs 40,828/- crore, accounting for 39 percent of the Ministrys total allocation.

GOVERNMENT INITIATIVES FOR THE SECTOR

• 100% FDI under automatic route is allowed in the Indian education sector.

• A National Digital Library will be established for children and young adults, making quality books accessible regardless of geography, language, genre, level, or device..

• To ensure a skilled workforce for future medical technologies and research, existing institutions will offer dedicated multidisciplinary courses for medical devices.

• Over the next three years, the central government will hire 38,800 teachers and support staff for 740 Ekalavya schools that serve 3.5 lakh tribal students. The budget for Eklavya Model Residential Schools (EMRS) has seen a significant increase of INR 581.96 crore, rising from INR 1418.04 crore in 2021-22 to INR 2,000 crores in the 2022-23 financial year. This initiative will provide support to residential schools aimed at educating tribal students..

• To foster a reading culture and to compensate for learning loss during the pandemic, the National Book Trust, Childrens Book Trust, and other entities will be encouraged to supply regional language and English books along with other materials to physical libraries.

• An integrated online training programme will be set up to enhance skills for Civil Servants and government employees.

• Selected ICMR lab facilities will be made accessible for outside research, and a programme to boost pharmaceutical research and innovation will be launched. Additionally, 157 new nursing colleges will be established alongside the 157 medical colleges established since 2014.

• Under the Mission Karma Yogi initiative, the centre, states, and Union Territories are executing capacity-building programmes for Civil Servants. Additionally, an integrated online training platform has been launched to provide continuous learning opportunities and upgrade the skills of numerous government employees, promoting a people-centric approach.

• The training of teachers will be revamped through innovative pedagogy, curriculum delivery, ongoing professional development assessments, and the implementation of information and communication technology. The District Institute of Education and Training (DIET) will be transformed into a dynamic institute of excellence for this purpose.

• 100 labs will be established in engineering institutions with partnerships between various organisations such as regulators, banks, and businesses to develop 5G-based applications. These labs will focus on innovative areas such as smart classrooms, precision agriculture, intelligent transportation systems, and healthcare, with the aim to maximise the potential for new business models and job opportunities.

• The fourth edition of PM Kaushal Vikas Yojana 4.0 will be launched.

• 30 Skill India International Centers will be established across various states to equip the youth for international opportunities.

• To achieve the goals of "Make AI in India" and "Make AI Work for India", three centres of excellence for artificial intelligence will be established in top educational institutions.

• The government will offer an R&D grant to one of the IITs to promote the production of domestically-grown laboratory diamonds and decrease imports.

• The finance minister announced the launch of cutting-edge courses for Industry 4.0, including coding, AI, IoT, mechatronics, drones, and other crucial soft skills. Additionally, 30 Skill India International Centers will be established across the country.

PERFORMANCE:

In the following table, please find brief of financials of the Company:

PARTICULARS Standalone for the year ended 31st March, 2023 Standalone for the year ended 31st March, 2022 Consolidated for the year ended 31st March, 2023 Consolidated for the year ended 31st March, 2022
Revenue from Operations 2076.43 747.68 2076.43 747.68
Other Income 120.26 598.64 120.26 598.64
Total Income 2196.69 1346.32 2196.69 1346.32
Total Expenses 2202.21 1325.97 2202.59 1326.51
Operating Profit/(Loss) (5.52) 20.35 (5.90) 19.81
Less: Finance Cost 555.92 441.51 555.92 441.51
Less: Depreciation 251.76 277.95 251.76 277.95
Profit/ (Loss) before Tax (5.52) 20.35 (5.90) 19.81
Prior Period Taxation Adjustments - (9.98) - (19.57)
Deferred Tax (40.01) 3.05 40.01 (3.05)
Profit/(Loss) after Tax for the year 34.49 33.38 34.11 42.43
Other comprehensive income/(loss) 10.84 8.98 10.84 8.98
Total Comprehensive Income/(Loss) for the year 45.33 42.36 44.95 51.41

THE FUTURE OF EDUCATION IN INDIA OPPORTUNITIES & THREATS:

Weve put together a list of educational trends that will make learning more flexible, available, and engaging for both students and instructors. The top five trends that will have a big impact on education and beyond are listed below:

1. Augmented reality and virtual reality

Technology is developing, and we have reached a brand-new era when augmented reality (AR) and virtual reality (VR) are quickly gaining traction. Because of virtual reality and augmented reality technologies, children now have a space where they can understand complicated ideas and gain practical learning experiences in low-risk virtual environments. STEM-related classes, simulations of medical procedures, resources in the arts and humanities, technical education, AR, and VR all have the potential to improve it. The capacity to communicate knowledge in novel and more interesting ways online is the second reason why virtual reality and augmented reality technologies are on their way to becoming one of the most promising additions to the "Edtech" field.

2. Rise of Real and AI together

Artificial intelligence, also known as AI, can communicate with humans and provide assistance. It has the potential to alter a wide number of sectors, including education, and to solve some of the most pressing challenges facing education today by introducing novel approaches to teaching and learning. The use of AI tools and technology may provide benefits such as faster paper grading, tailored training, intelligent material delivery, and student access to tutoring programs or Al-based intelligent tutoring systems (ITS). Realizing that AI should be centered on people is vital. Giving students a sustainable and high-quality education in the future will be made possible by a mix of teachers involvement and AI.

3. Personalized Education

Personalizing learning for each students strengths, needs, talents, and interests is yet another straightforward yet very successful and novel approach to the learning process. This aids in creating a learning plan specifically for the learner. The fundamental idea behind introducing customized learning is that every kid learns in a unique way and at a unique speed. Each student in customized learning receives a learning plan based on their learning style, prior knowledge, abilities, and interests. It goes against the one size fits all philosophy that is prevalent in most schools. In order to ensure that the student obtains hands-on learning on the selected topics and that theyre expected to learn as they move through their education, the developed plan is kept project-based.

4. Holistic learning will be the focus

The emphasis now is on supporting a childs whole and holistic development so they may grow up to be responsible adults with the right skill sets, thanks to shifting educational environments. Educators are increasingly emphasizing the holistic learning approach to education, which emphasizes a childs academic success while also preparing them to confront lifes obstacles. There are several advantages to holistic education. Students are given the tools they need to improve their academic achievement as well as develop the soft skills required for a successful professional career. The fact that holistic learning enhances academic achievement, mental and emotional health, and problem-solving skills is only one of its many advantages.

5. Education with the Entrepreneurial Mindset

In recent years, there has been a lot of excitement about incorporating entrepreneurship into schooling. Teachers design their lectures and classes to help students develop an entrepreneurial mindset and perspective from an early age. If entrepreneurial ideals are entrenched in the educational process, students will be better equipped to be obedient members of society. Students who are taught such a mindset are better able to acquire the skills and information needed to achieve their own unique goals. As a result, the curriculum designed here aims to build entrepreneurial knowledge, skills, attitudes, behavior, and drive in a way that assures entrepreneurial success while also making the student more employable in the future workforce.

The covid-pandemic has been a learning experience for educators and policymakers, and it has established a standard for the foreseeable future. The effective measures and techniques implemented now will establish the foundation for the Indian educational systems ability to handle crises in the future without suffering significant interruption. Its also helped us recognise that learning doesnt have to be a strict, one-way process. EdTech will play a vital role in society and serve as a solid pillar for the next generation despite the huge shift brought about by technology and new policy reforms like the NEP. Its time to welcome the innovative advances that technology is bringing to education and to look ahead to a successful and forward-thinking future.

RISK & CONCERNS

Your Companys Board of Directors have put in place adequate risk assessment and risk mitigation measures. The Executive Management has an appropriate framework that generates confidence of foreseeing and mitigating the risks, which every manufacturing company faces in the form of fluctuations in the supply and pricing of fuel, energy and essential raw material. However, no measures are adequate when confronted by force majeure event like Covid-19.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

An appropriate and adequate system of internal controls exist in your company to ensure that all assets are safeguarded and protected against loss or from misuse or disposition, and that the transactions are authorized, recorded and reported suitably. Internal control systems are ensuring effectiveness of operations, accuracy and promptness of financial reporting and observance with laws & regulations.

The internal control is supplemented on an ongoing basis, by an extensive program of internal audit being implemented throughout the period. The internal audit reports along with management comments thereon are review by the Audit Committee of the Board comprising of independent and non- executive Directors, on a regular basis. Implementations of the suggestions are also monitored by the Audit Committee. The internal control is designed to ensure that the financial and other records of the company are reliable for preparing financial statements and other data, and for maintaining accountability of assets.

HUMAN RESOURCES POLICIES:

It is your companys belief that people are at the heart of corporate & constitute the primary source of sustainable competitive advantage. The trust of your companys human resource development efforts therefore is to create a responsive and market driven organization. Your company continues its focus on strengthening competitiveness in all its business. Your directors look forward to the future with confidence. The company has followed a conscious policy of providing training to Management Staff through in-house and external programmes, for upgrading personal and technical skills in relevant areas of functional disciplines.

RISK MANAGEMENT:

Although the company has long been following the principle of risk minimization as is the norm in every industry, it has now become a compulsion.

Therefore, in accordance with Regulation 21 of SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015, the Board members were informed about risk assessment and minimization procedures after which the Board formally adopted steps for framing, implementing and monitoring the risk management plan for the company through Audit Committee.

The main objective of this policy is to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the business. In order to achieve the key objective, the policy establishes a structured and disciplined approach to Risk Management, in order to guide decisions on risk related issues.

In todays challenging and competitive environment, strategies for mitigating inherent risks in accomplishing the growth plans of the Company are imperative. The common risks inter alia are Regulations, competition, Business risk, Technology obsolescence, Investments, retention of talent and expansion of facilities.

Business Risk, inter alia, further include financial risk, political risk, fidelity risk, legal risk. As a matter of policy, these risks are assessed and steps are taken to mitigate the same.

CAUTIONARY STATEMENT:

The statements in report of the Board of Directors and the Management Discussion & Analysis Report describing the Companys outlook, estimates or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied since the Companys operations are influenced by many external and internal factors beyond the control of the Company. The Company takes no responsibility for keeping the members updated on changes in these factors except as may be statutorily required from time to time.

By Order of the Board
For VJTF Eduservices Limited
Dr. Vinay Jain Dr. Raina Jain
Managing Director Whole Time Director
(DIN: 00235276) (DIN: 01142103)
Dated: 05/09/2023
Place: Mumbai