MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure and Analysis:

This current fiscal year experienced its fair share of challenges and uncertainties along with a new hope of a dynamic environment with the formation of a new government at the center. Overall job market did not witness improvement however with the emergence of newer organizations in the manufacturing sector; we can look forward to better employment and training opportunities going forward. The government has created a new ministry of skill development that will provide a boost to the overall skill development scenario in the country

Risks and Concerns and challenges:

Your company has been conscious of the risks it faces and hence, in the mainstream business of franchise based education the risk has been reduced through a conscious policy of diversification. But on account of the emerging nature of its Assessment and Testing, overall challenges such as political risk, economic risk, regulatory risk and currency risk had a severe impact on the business.

In case of these overall risks, the focus of the Company is on mitigation, which becomes much more effective in its development. Some of the risks and challenges faced by the company especially due to dependence on franchisees and demand risk for new products/methods. The Company has adopted various control measures for these categories of risks in order to ensure effective monitoring and resolution.

As we have discussed about the large Govt. projects, in the execution of large projects which are highly capital intensive in nature, there could be exposure to time and cost over runs. To mitigate these risks, the project management team and the project accounting and governance framework has been further strengthened.

The IT Industry is becoming intensely competitive with the venture of new participant and some of the existing players adopting inorganic growth strategies. To mitigate this risk, the Company is leveraging on its expertise, experience and its created capacities to increase market share, enhance brand equity / visibility and enlarge its portfolio.

Outlook & Opportunity

In the financial year 2014-15, the Indian economy grew at a rate of 7.4% as compared to6.9% in the year 2013-14 based on the new method adopted by Central Statistical Office of India. GDP growth estimation for FY2015-16 are 8.1% - 8.5% and7.8% from the Indian government and RBI respectively. GDP growth numbers show that economic momentum is again picking up after slowdown  from2011 to 2014.

The education sector received an allocation of Rs. 69,075 crore for 2015-16, down from the revised budget estimate in 2014-15. The reduction is on account of greater devolution of tax revenues to state government based on 14th finance commission report. The Country adds nearly 120 lac people to its workforce every year, but there is lesser number who received any formal training. Thus leading to one of the lowest workforce readiness is in the world. With job creation as one of the most important focus areas of the new government, this shift in priorities is rational. There was also an announcement of a National Skills Mission to be set up under the Skill Development and Entrebrneurship Ministry. This was aimed at consolidating skill initiatives across several ministries and at increasing the employability of rural youth population.

Your company is executing various projects as a skill partner under various ministries and government departments like Uttar Pradesh Skill Development mission, SUDA - Uttar Pradesh, SUDA Orissa, Bihar Urban Development Authority, West Bengal Skill Development Society. The sponsoring ministries for these departments include Ministry of Urban Development, Ministry of Rural Development, Ministry of Youth Affairs. Your company is working in the capacity of a large training partner for all these projects.

Segment / Product wise Performance: Training& Education:

The company continues to focus on Skill Development Training across 5 verticals as the major area as the growth in potential in this sector is prospective. At the same time your company is also moving towards the significant development in the other concerned area in IT industries. Strategic focus for the Company in this space is to maintain its position and grow profitably at a reasonable pace in a mature market. Hence, the Company has rationalized the network by weeding out defunct and nonperforming centers. Company is also focusing on adding more centers to impart employable training in current competitive market.

Vocational Training and Government Projects:

As discussed in respect to allocation of fund to educational sector by current Government, your company has added several more new project from various state governments departments as compared to the last year. There is a big raise in employment of Skilled Manpower in the country and to meet these requirements and provide best skilled manpower, Indian Government has major planned initiatives in the Education & Skilling sector. Some of these initiatives are like:

• Addition of skill enhancement and entrebrneurship in the syllabus at the school level Setting skilling institutions in the public-private partnership (PPP) mode

• Formulation of national policy on skill development and entrebrneurship

• Plans to open national vocational university that will include all Industrial Training Institutes (ITIs), a move to improve standards and bring uniformity among the schools that supply workers to the manufacturing sector

Considering the above your company has also been working closely as an empanelled partner of various state and central government departments and is expecting to add several large-scale training and skill development project in the subsequent financial years.

Internal Control Systems:

The Company has an Internal Control System, Commensurate with the size, scale of business to safeguard and protect the company from unauthorized use and disposition of its assets. The Company is following all the applicable Accounting Standards for properly maintaining the books of accounts and reporting financial statements. The internal audit and internal control procedures adopted in LCC are adequate and commensurate with the size and the complexity of the business. All major expenses are controlled and businesses are monitored so that the actual spending is inaccordance with the budget. A well-defined organizational structure, strong internal controls, defined authority matrix and documented policy guidelines ensure compliance with internal policies and applicable laws and regulations, efficiency of operations and protection of resources.

Future Prospects:

Your Company is expanding its foot prints across the country by entering newer geographical areas to strengthen its skill development business. We are also forging new alliances and empanelment as skill trainers under various new initiatives by the Central and various state govt. departments. We are working towards creating a robust network of training and skill development centres that would enable your company to execute larger projects in future.

Human Resource

Many initiatives have been taken to support business through organizational efficiency, process change support and various employee engagement programmes which has helped the Organization achieve higher productivity levels. A significant effort has also been undertaken to develop leadership as well as technical/ functional capabilities in order to meet future talent requirement. The Company's HR processes such as hiring, fair transparent performance evaluation and talent management process etc. have been seen as benchmark practices in the company.

Cautionary Statement

The statements contained in the Board's Report and Management Discussion and Analysis contain certain statements relating to the future and therefore are forward looking within the meaning of applicable securities, laws and regulations. Actual results, performance or achievements may differ materially from those exbrssed in the statement. Important factors that could influence the Company's operations high competition in IT industries relating to software training and development.