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Maharashtra Knowledge Corporation Limited (MKCL) Shares

Annual Report: 2023

Year: 2023

Annual Report Summary

The document is the 22nd Annual Report for the fiscal year 2022-23 of Maharashtra Knowledge Corporation Limited (MKCL), a company focused on bridging the digital divide through education, eGovernance, and eEmpowerment programs.

Homage: The report pays tribute to Professor Dr. Ram Takwale, the founder director of MKCL, highlighting his visionary leadership and contributions to the company's success in providing IT literacy and educational transformation.

Company Overview: MKCL was promoted by the Department of Higher and Technical Education (H & TE), Government of Maharashtra and incorporated under the Companies Act, 1956. It has been allocated to the Directorate of Information Technology under GAD. MKCL designs, develops, and delivers eLearning, eGovernance, and eEmpowerment programs. The company's vision is to develop world-class learning, governance, and empowerment systems responsive to individual and social developmental needs by bridging the Digital Divide. Its mission focuses on economical, social, and environmental transformation, emphasizing deeper personal experiences, wider reach, better quality, cheaper costs, and faster delivery.

Financial Highlights (FY 2022-23):

  • Revenue from Operations: Rs. 17,750.84 Lakhs (48% increase YoY)
  • Profit Before Tax (PBT): Rs. 6,129.45 Lakhs (28% increase YoY)
  • Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): Rs. 6,739.99 Lakhs (33% increase YoY)
  • Cash Generated from Operations (Gross): Rs. 5,155.23 Lakhs (2,122% increase YoY)
  • Net Worth: Rs. 47,667.17 Lakhs (10.82% increase YoY)
  • Earning Per Share (EPS): Rs. 59.11 (23.48% increase YoY)

Business Development Program (BDP) Revenue (FY 2022-23):

  • KLCDP: 67%
  • MMSDP: 22%
  • HETP: 8%
  • eGov: 2%
  • Others: 1%

Key Performance Indicators: Key metrics like EBITDA, PAT, margins, EPS, and Net Worth showed substantial growth compared to previous years, supported by detailed charts. For example, EBITDA grew at a CAGR of 66% and PAT at a CAGR of 67%.

Directors' Report: The Directors' Report provides a summary of the financial results, results of operations, liquidity, particulars of loans, report on the performance of subsidiaries, and other details.

Results of Operations:

  • Total Income for FY 2022-23 amounted to Rs.20,323.90 lakhs, a 33.75% increase over last year due to mainly the increase in learners in MS-CIT, BSDM, and KLIC.
  • Profits Before and After Tax also increased compared to the previous financial year.
  • Dividend declared @ Rs.2/- per equity share of Rs.10/- each.
  • Net Cash Inflow from operating activities (before Tax) is Rs.5,155.23 lakhs, but there was Net Cash Outflow of (Rs.4,273.92) lakhs due to investing activities as on March 31, 2023.

Report on Subsidiaries and Joint Ventures: The report provides details on the performance and financial position of MKCL's subsidiaries and joint venture companies, including MKCL Knowledge Foundation, Odisha Knowledge Corporation Limited (OKCL), Haryana Knowledge Corporation Limited (HKCL), and MKCL Arabia Limited.

Report of Business Operations of MKCL: MKCL's mission is to create a new paradigm in education and development by bridging the Digital Divide. MKCL has a transformative agenda focused on creating knowledge-based and value-based transformations in education, development, governance, and empowerment. MKCL strategically uses Information Technology and forms partnerships to achieve its goals. The organization is certified for ISO 9001:2015, ISMS (ISO 27001:2013), and CMMI Level 3.

  • Knowledge-Lit Career Development Program (KLC-DP): Key offerings include MS-CIT, MS-ACIT, KLIC and others. MS-CIT helps bridge the digital divide. The MS-CIT curriculum pillars and the MS-CIT aims and benefits are discussed. Key aspects include the ALC (Authorized Learning Centers) network expansion and student empowerment through online learning and resources. The MS-ACIT program is for teachers, and KLIC enables youth for knowledge-lit careers. EASY (Earning Assistance Services to Youth) helps in earning opportunities for KLIC Learners through the EASY framework & the Career for You framework. Chhatrapati Sambhaji Maharaj SARTHI Digital Employability Enhancement Program ("CSMS-DEEP") Diploma for target group is also planned. Learning Facilitators are important to enriching High-Tech Learning with Human Touch; LiveDemy – Short Courses for Digital Enablement of MSMES; MKCL's Mastering Series help with exam preparations; and MKCL Finishing Schools – Mainstreaming Work-Based Learning.
  • Mission Mode Skills Development Program (MMS-DP): Here, MKCL acts as a Knowledge Partner for State Skill Development Missions in India.
  • Higher Education Transformation Program (HETP): The HETP offers student/college/course lifecycle management through Digital University software. The Digital University framework offers eservices at affordable costs to millions of students.
  • School Education Transformation Program (SETP): MKCL is creating Cloud-based Learning Management Systems (LMS), called MKCL’s ERA, and MKCL LearnLive.
  • eGovernance Business Development Program (eGov BDP): Key initiatives here are JanLabh for citizens to access welfare schemes, Van Mitra portal for forest rights, e-Tendering System (SeTS), eAuction portal for bidding and auctioning, SugarMart and EduMart perfect completion for buyers and suppliers, and Digital Legislature Framework. Also, the Government Employee Online Transfer System (GoOnTransfer) has been developed. RecruitLive recruitment portal is mentioned.
  • International Business Development Program (I-BDP): MKCL promotes the Online Examination System (ExamLive) in Kingdom of Saudi Arabia and Egypt. Products in New Exponential Technologies Business Development Program (ProNExT) are in low code creation, IT Infrastructure Development, and Artistic Creations Program.

Other Points:

  • The Company has a policy on Directors' appointment and remuneration, highlighting the importance of board diversity and financial sustainability.
  • Details related to sexual harassment prevention at the workplace have been provided.

Compliance and Standards:

  • The company is certified for ISO 9001:2015 Certification, ISMS Certification (ISO 27001:2013) and CMMI Level 3 Certification.

Financial Statements and Audit:

  • The Directors' Responsibility Statement and Independent Auditor's Report confirm the integrity and fairness of the financial statements.
  • A detailed list of financial ratios, along with explanations for any variance from the previous year, is provided.
  • Complete financial statements, including the balance sheet, statement of profit and loss, and cash flow statement, are presented, along with detailed notes.

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