MANAGEMENT DISCUSSION AND ANALYSIS REPORT CAUTIONARY STATEMENT: Certain statements made in the management discussion and analysis report relating to Company's objectives, Projections, outlooks, expectations, estimates and others may constitute forward looking statements within the meaning of applicable laws & regulations. Actual results may differ from such expectations, projections and son on whether exbrss or implied. However, company has also submitted various risks associated with the business. INDUSTRY OVERVIEW: India is an important educational center in the global education industry. India has more than 1.4 million schools and more than 35,000 higher education institutes. India has one of the largest higher education systems in the world and there is still a lot of potential for further development in the education system. India's online education market size is expected to touch US$ 40 billion by 2017. The RNCOS report titled, 'Booming Distance Education Market Outlook 2018' expects the distance education market in India to grow at a compound annual growth rate (CAGR) of around 34 per cent during 2013-14 to 2017-18. Moreover, the aim of the government to raise its current gross enrollment ratio to 30 per cent by 2020 will also boost the growth of the distance education in India. The vocational education and training is fast emerging as an important area of focus, as Germany and India enhance their strategic bilateral partnership. One of India's biggest challenges as well as advantages is its growing young population. India targets creation of 500 million skilled workers in 2022. The need to train fresh graduates in new skills and ensure that they remain employable is important since the US$ 118 billion Indian information technology (IT) industry added about 180,000 new employees in 2013-2014, 70 per cent of which were fresh hires, according to Nasscom. India's IT firms are working with academic institutions and setting up in-house institutes to groom the right talent as these companies move to social media, mobility, analytics and cloud (SM AC) technologies. Tech Mahindra's infrastructure management services academy set up in 2014 has inked partnerships with five universities to hire students trained on a co-developed curriculum. GOVERNMENT INITIATIVES New Educational Policy is expected to be released by 2015 according to Ms Smriti Irani, Union Minister of Human resource Development (HRD),Government of India. Other initiatives taken by Government of India are: • The Government has drawn up an ambitious roadmap to enhance skill levels of millions of people. The plans involve integrating skill enhancement and entrebrneurship in the syllabi at the school level, setting up of 2,500 multi- skilling institutions in the public-private partnership (PPP) mode, and set up institutes of entrebrneurship development in various centres including upcoming smart cities among others. India will have to skill 120 million people in non-farm sectors, with the highest requirement of skilled labour to come from the construction sector (31 million) followed by retail (17 million) and logistics (12 million), according to estimates between 2013 and 2022. A National policy on skill development and entrebrneurship has also been finalised. • The Government of India plans to open a first-of-its-kind national vocational university that will subsume all Industrial Training Institutes (ITIs), a move to improve standards and bring uniformity among the schools that supply workers to the manufacturing sector. • A memorandum of understanding (MoU) has been signed between Foundation for Innovation and Technology Transfer (FITT) and Security Printing and Minting Corporation of India Ltd (SPMCIL). The MoU has been envisioned to foster collaboration on research, training and professional development and exchange of technical expertise in areas of mutual interest such as material sciences and testing capabilities. • In addition to the above, Government of India restructured its teacher training system, doubling its duration to two years and mandating a six-month internship as part of it, in an effort to improve the quality of teachers and, by extension, education. ROADAHEAD The vocational education and training is fast emerging as an important area of focus, as Germany and India enhance their strategic bilateral partnership. One of India's biggest challenges as well as advantages is its growing young population. India targets creation of 500 million skilled workers in 2022. The need to train fresh graduates in new skills and ensure that they remain employable is important since the US$ 118 billion Indian information technology (IT) industry added about 180,000 new employees in 2013-2014, 70 per cent of which were fresh hires, according to Nasscom. India's IT firms are working with academic institutions and setting up in-house institutes to groom the right talent as these companies move to social media, mobility, analytics and cloud (SM AC) technologies. Tech Mahindra's infrastructure management services academy set up in 2014 has inked partnerships with five universities to hire students trained on a co-developed curriculum. Various government initiatives are being adopted to boost the growth of distance education market, besides focussing on new education techniques, such as E-learning and M-learning. SCOT Strengths • More than 33 years experience in Education sector • Decades of experience in conducting training programs • Strongtie-upsin Education space • Handled extreme projects in field of training and Education • Internationally Competitive Challenges • Restricted access in Formal Education sector due to Regulatory measures • Lackofpan India brsence • Limited Financial resources Opportunities • Rising opportunities in Skill Development, Government of India Schemes • Growing trend of corporate training programs in corporate sector • Rise in personality developments programs by colleges and universities for their students and faculties • Government initiatives for mandatory contribution by corporate in CSR activities including Education sector • Increasing Private Participation in Education • Opening up of new avenues like BOTs and PPPs • Use of distance education, flexible learning and adoption of new information and communications technologies to increase access Threats • Excessive Competition • Entry of corporate houses • Entrance of foreign Universities in India • Shortage of Competent faculties PERFORMANCE The company has provided personality development programs trainings, ICT programs and also holds collaborations with education groups to provide services. The total revenue from operations stood at Rs. 335.70 Lacs, Last year it was Rs. 345.54 Lacs minimally decreased by 2.85 %, as PDP income is directly related to no. of students in colleges/ Universities wherein I EC is providing PDP service as part of General Proficiency course curriculum, Lesser no. of students in these colleges / universities is the main reason of downfall in income of the Company. Personality Development Program (PDP) again remains the major revenue generator with its contribution of Rs. 333.79 Lacs. Last year it stood at 343.74 Lacs down by 2.9%. The Company has several niche Colleges of Northern India as its Clients to whom company provides PDP services. In past IEC as part of its business activities has been involved in providing IT consultancy to various Government departments and business houses. Training and Education income of the Company stood at Rs. Nil as compared to Rs. 1.00 Lacs in the last fiscal. Completion of various (information and communications technology) ICT programs is the reason for fall in the revenues of this segment. IT Franchise segment has contributed Rs. 0.72 Lacs as compared to Rs. 0.34 Lacs in the brvious year. Management of the company is looking is in the process of procuring new ICT projects, and setting up Vocational Training Institutes / entering into MoU with Universities / Colleges for implementing Vocational Training Programs as per the schemes floated by Ministry of Human Resource Development, Government of India. Further the Management is in the process of collaborating with Colleges / Universities in India to provide Educational Infrastructure and other services in the nature of procurement of admissions, conduct of Examinations for students of such colleges / universities and such other services as may be necessary. To seek opportunities in new avenues in non-formal education and training sectors, to bag more contracts for providing Management Services in education sector, the management is also committed to revive the ICT business space of the company. EXPENDITURE As no of PDP programs has reduced during the fiscal under review, Expenditure on Personnel and other expenses have also been reduced. Total expenses of the Company were Rs. 341.78 Lacs as compared to Rs. 448.73 Lacs in the brvious year. PDP expenses the major revenue generator contributes largest share of expenses with Rs. 94.96 Lacs last year it was Rs. 129.89 Lacs, decreased by almost 27%. Course education charges were Rs. 2.34 Lacs in comparison to Rs. 2.79 Lacs last year. Rs. 0.96 Lacs contributes to Training and Education charges. Employee Benefit expenses were Rs. 47.76 Lacs last year they were Rs. 63.91 Lacs. Debrciation on the assests of the company was Rs. 63.44 Lacs, last year it was Rs. 58.96 Lacs. FIXED ASSETS The fixed Assets of the Company stood at Rs. 274.57 Lacs for the fiscal Year under consideration, last year it was Rs. 370.82 Lacs. PERSONNEL ASSETS Company always has an encouraging work environment that leads to higher caliber and encouragement among employees, contribute to the overall growth and performance of the personnel while adhering to the highest degree of quality and integrity. Company believes that even a pin of an organization matter that is every employee irrelevant the place he holds is a contribution in the growth of the company. INTERNAL CONTROL SYSTEM Your Company has a proper and adequate system of internal controls commensurate with its size and nature of operations to provide reasonable assurance that all assets are safeguarded, transactions are authorized, recorded and reported properly and applicable statutes, codes of conduct and corporate policies are duly complied with. The Internal Audit Department reviews the adequacy and efficacy of the key internal controls. The scope of the audit activity is guided by the annual audit plan, which is approved by the Audit Committee of the Board. For and on behalf of Board of Directors Sd/- Naveen Gupta [Chairman) (00097128) Place: Delhi Date: August 31,2015 |