Addictive Learning Technology Ltd Management Discussions

The following discussion is intended to convey managements perspective on our financial condition and results of operations for the period ended 31 August 2023 and financial year ended March 31, 2023, and for the financial year ended March 31, 2022, and 2021. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with our section titled "Financial Statements" and the chapter titled "Financial Information" on page 213 of the Draft Red Herring Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors" on page 26 of this Draft Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer the chapter titled "Forward-Looking Statements" on page 18 of this Draft Red Herring Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from the Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Addictive Learning Technology Limited (Formerly Known as Addictive Learning Technology Private Limited), our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Statements for the period August 2023, and Financial Years 2023, 2022 & 2021 included in this Draft Red Herring Prospectus beginning on page 213 of this Draft Red Herring Prospectus.

BUSINESS OVERVIEW

Our Company was originally incorporated as a private limited company under the Companies Act, 2013 in the name and style of "Addictive Learning Technology Private Limited" bearing Corporate Identification Number U74110DL2017PTC323508 dated September 12, 2017, issued by the Registrar of Companies, Delhi. Subsequently, our Company was converted into public limited company pursuant to a shareholders resolution passed at an Annual General Meeting held on Tuesday, 19th September 2023 and name of our Company was changed to "Addictive Learning Technology Limited" and a fresh Certificate of Incorporation dated September

29, 2023, was issued by Registrar of Companies, Delhi. As on date of this Draft Red Herring Prospectus, the Corporate Identification Number of our Company is U74110DL2017PLC323508.

The company by passing a Special Resolution has approved the shifting of registered office of the company from Delhi to Haryana. (Outside the state but within the jurisdiction of the same ROC). The petition is pending for the approval of Regional Director, Ministry of Corporate Affairs, Northern region.

Our company is a professional upskilling and career services edtech platform which caters primarily to senior & mid-career professionals, and in some cases to young professionals as well. The company offers a comprehensive range of professional upskilling courses and training programs which includes Law, Finance, Compliance, Human Resources, Business Consulting, Artificial Intelligence, Content Writing and Data Science through three distinct brands LawSikho, Skill Arbitrage and Dataisgood. These educational offerings are designed to help busy professionals to learn high demand skills, develop a strong demonstrable track record & access international as well as domestic freelance work and remote jobs. We also cater to college students looking for advanced skills and recent graduates who are struggling to find jobs.

One of our major focus areas is to offer upskilling courses which enable our learners to find career opportunities in the international market remotely. Some of the popular courses cover subjects like US Intellectual Property Law, US Tax Law, US Accounting, Bookkeeping and Corporate Compliances, International Contract Drafting, International Business Law, International Labour Laws, US Technology Law, US Corporate Law, US Real Estate Law etc.

Some unique points about our courses:

1. Our courses consist of recorded videos or textual documents followed by automated quizzes like most other edtech & upskilling courses. Our courses involve cohort based live classes, weekly assignments, simulation exercises, real life situation-based coaching over live calls & one-on-one personalized feedback apart from certification.

2. We also provide placement & career support to our learners right from the time when they start learning with us. Career support is embedded throughout our programs rather than at the end of a course.

3. Our team helps our learners hands on to identify and to create opportunities, provide guidance & support to develop their professional track record & develop an outreach strategy for them which can help them to take career benefits from newly developed skills.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR AND STUB PERIOD

As per mutual discussion between the Board of the Company and BRLM, in the opinion of the Board of the Company there have not arisen any circumstances since the date of the last financial statements as disclosed in the Draft Red Herring Prospectus and which materially and adversely affect or is likely to affect within the next twelve months except as follows:

? The Board of Directors of our Company has approved and passed a resolution on October 18, 2023 to authorize the Board of Directors to raise the funds by way of Initial Public Offering. ? The Shareholders of our company appointed Mr. Ramanuj Mukherjee as Managing Director w.e.f. 19 September 2023 in the Annual General Meeting held on 19 September 2023, and board meeting held on 18 September, 2023 respectively.

? The shareholders of our Company appointed Mr. Abhyudaya Sunil Agarwal as Whole-Time Director in the Extra Ordinary General Meeting held on October 13, 2023.

? The shareholders of our Company appointed Mr. Siddhant Singh Baid as Executive Director in the Extra Ordinary General Meeting held on October 13, 2023.

? The shareholders of our Company appointed Ms. Debbolina Gosh as Independent Directors in the Annual General Meeting held on September, 19, 2023.

? The shareholders of our Company appointed Mr. Mohammed Sirajuddin and Ms. Shruti Khanijow as Independent Directors in the Extra Ordinary General Meeting held on October 13, 2023.

? The board of directors in its meeting held on October 11, 2023, appointed Ms. Komal Shah as Company Secretary & Compliance officer of the Company & appointed Mr. Siddhant Singh Baid as Chief Financial Officer of the Company w.e.f. October 11, 2023, respectively.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled " Risk Factor" beginning on page 26 of this Draft Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

? Changes, if any, in the regulations / regulatory framework / economic policies in India and / or in foreign countries, which affect national & international finance.

? Companys results of operations and financial performance;

? Performance of Companys competitors;

? Significant developments in India‘s economic and fiscal policies;

? Failure to adapt to the changing needs of industry and in particular Sector may adversely affect our business and financial condition;

? Volatility in the Indian and global capital market;

MANAGEMENTs DISCUSSION ON RESULTS OF OPERATION

(Rs. In Lakhs)

S.N.	Particulars	For the period ended				For the year ended
		August 31, 2023	%age of Total Income	March 31, 2023	%age of Total Income	March 31, 2022	%age of Total Income	March 31, 2021	%age of Total Income
1	Revenue from	2482.36	100.00%	3353.43	99.97%	1857.29	99.89%	677.77	100.00%
	Operations
II	Other Income	-	-	1.04	0.03%	2.05	0.11%	-	-
III	Total Income (I + II)	2482.36	100.00%	3354.47	100.00%	1859.34	100.00%	677.77	100.00%
IV	Expenses
	Cost of Services	1540.40	62.05%	2288.90	68.23%	1410.59	75.87%	505.77	74.62%
	Employee benefit expense	66.82	2.69%	136.90	4.08%	99.47	5.35%	56.81	8.38%
	Financial costs	-	-	-	-	-	-	-	-
	Depreciation and amortization expense	50.81	2.05%	9.51	0.28%	5.51	0.30%	2.13	0.31%
	Other expenses	385.96	15.55%	594.18	17.71%	393.46	21.16%	113.03	16.68%
	Total Expenses (IV)	2043.99	82.34%	3029.48	90.31%	1909.03	102.67%	677.74	99.99%
V	Profit before exceptional and extraordinary items and tax (III-IV)	438.37	17.66%	324.99	9.69%	(49.70)	(2.67) %	0.04	0.01%
VI	Exceptional Items	-	-	-	-	-	-	-	-
VII	Profit before extraordinary items and tax	438.37	17.66%	324.99	9.69%	(49.70)	(2.67) %	0.04	0.01%
VIII	Extraordinary Items	-	-	-	-	-	-	-	-
IX	Profit before tax (VII-VIII)	438.37	17.66%	324.99	9.69%	(49.70)	(2.67) %	0.04	0.01%
X	Tax expense:
	(I) Current tax	128.67	5.18%	84.66	2.52%	-	-	0.74	0.11%
	(II) Deferred tax	(6.25)	(0.25) %	(6.79)	(0.20) %	(0.62)	(0.03) %	(0.16)	(0.02) %
XI	PROFIT/(LOSS) FROM THE PERIOD FROM CONTINUING OPERATIONS	315.96	12.73%	247.13	7.37%	(49.07)	(2.64) %	(0.54)	(0.08) %
XII	Profit/ (Loss) from discontinuing operations	-	-	-	-	-	-	-	-
XIII	Tax expense of discounting operations	-	-	-	-	-	-	-	-
XIV	Profit/(Loss) from Discontinuing operations	-	-	-	-	-	-	-	-
XV	Profit/ (Loss) for the period (XI + XIV)	315.96	12.73%	247.13	7.37%	(49.07)	(2.64) %	(0.54)	(0.08) %
XVI	Earning per equity share:
	(I) Basic & Diluted (Rs.)	6.32		4.94		(0.98)		(0.01)
	(II) Annualized (Rs.)	15.16		4.94		(0.98)		(0.01)

Our Significant Accounting Policies

For Significant accounting policies please refer Significant Accounting Policies", under Chapter titled Financial Statements beginning on page 213 of the Draft Red Herring Prospectus.

Overview of Revenue & Expenditure

The following discussion on results of operations should be read in conjunction with the Restated Financial statements for the period ending on August 31, 2023, Financial years 2022- 2023, Financial Year 2021-22 & Financial Year 2020-21. Our revenue and expenses are reported in the following manner:

Revenues

? Revenue of operations

Our Companys revenue is primarily generated from providing professional upskilling course career services.

? Other Income

Other Income includes interest income on fixed deposit.

Expenditure

Our total expenditure primarily consists of Cost of Services, Employee benefit expense, Finance Costs, Depreciation and amortization expense, and Other Expenses.

? Cost of Services

Cost of Service includes Content Charges, Animation Charges, Material Printing & Delivery Cost, Training & Development Exp, Professional Charges, Advertisement & Publicity Exp, Commission, Website Maintenance, Technical Charges, Internship Stipend, Software Renewal Charges, Digital Marketing Exp, International Consultancy Charge.

? Employee benefit expense

The Employee benefit expense includes Salaries and wages, Staff welfare expenses.

? Depreciation and Amortization Expenses

Depreciation and Amortization Expenses majorly includes depreciation on tangible assets and software, etc.

? Other Expenses

Other Expenses include major expenses on Legal and professional charge, Travelling Expense, Unclaimed GST input, Business Promotion Expenses Service Charge, Office Expenses, and other expenses.