C J Gelatine Products Ltd Management Discussions

("MDA")

(As on March 31, 2025)

? Industry Structure & Developments:

During the year under review, Gelatin plays a critical role on Domestic as well as global stage where it plays a major role in Healthcare Sector. Companies in India control a sizable market share of 1/5th of worlds Supply Chain. They are a major source of affordable medicines in India and worldwide. This has made India a driving force and earning itself a name worldwide as "Pharmacy of the World". In Coming years, our Government has laid a path for Pharma Sector to achieve the Global status of Pharmacy for the world.

Further, Gelatin industry is anticipated to grow at a steady rate in the coming years. This growth will be due to continuous use of gelatin in manufacturing of Hard Empty Capsules, Soft gel Capsules which has now become one of the preferred ways for medication and nutrition Supplements. Additionally, rising standards of living, easy affordability and greater awareness in emerging economies like India will promote further growth.

? Opportunities and Threats:

Our Company is part of Healthcare Sector wherein Pharmaceutical Industry plays a major role in the same. The Indian Pharma industry is going to experience a significant growth in coming years.

Continuous Increase in rising cost of Raw Material and low availability could affect our Markets growth. The Increasing Plant Based Gelatin alternatives are a Challenge in markets like India. Global Uncertainties in the market may hamper the growth.

? Segment Wise or Product Wise Performance:

The Company is engaged in only one segment namely manufacture and Sale of Gelatin and related products like Ossein and Di-Calcium Phosphate (DCP) and as such there are no other reportable Segments as per IND-AS-108 "Operating Segments".

? Outlook:

The Outlook of the Gelatin Market will remain strong, as our Fierce Competitor, China is also facing huge issues and world is looking at India as a substitute in the Pharma Sector for the world. World believes in India to be a quality Supplier of Medicine.

? Risks and Concerns:

The Energy Costs and rising Prices of Raw Material will lead to increase in cost, however, Company is studying to gradually improve the Infrastructure which will in turn lower the operational cost and would yield good profits for the Company.

? Internal Control Systems and their Adequacy:

The Company conducts its business with integrity and high standards of ethics and in compliance with the laws and regulations that govern its business. The Company has a well-established system of internal controls in operations, supported by suitable monitoring procedures and self-assessment exercises. The financial and commercial functions are structured and reviewed timely to provide adequate support and controls for the business of the Company. In addition to external audit, The Company has appointed M/s Prem Chand Jain & Co., Chartered Accountants, as an Internal Auditor, who report significant findings to the Audit Committee of the Board and consequently required steps are taken to improve the operations.

? Discussion on financial performance with respect to operational performance:

The financial performance during the year under reference has been reasonably good in all respects. The company could achieve respectable growth in terms of turnover as well as profits in spite of high prices of Raw Material.

? Material Development in Human Resources/Industrial Relations front, including number of people employed:

As on March 31, 2025 the company had 65 permanent employees. The company recognizes the importance of human value and ensures that proper encouragement both moral and financial is extended to employees to motivate them.

The company has provided rent free accommodation to some of its staff members adjacent to the factory premises of the company. The company enjoyed excellent relationship with workers and staff during the last year.

Details of Significant Changes in key financial ratios along with detailed explanation therefore

?: Sr. No. Particulars	Current Year	Previous Year	*Reason for variance
1 Current Ratio	1.69	1.36	-
2 Debt-equity Ratio	5.00	4.15	-
3 Debt Service Coverage Ratio	1.54	(0.01)	Due to loss in previous year
4 Return on equity Ratio	0.04	(0.33)	Due to loss in previous year
5 Inventory turnover Ratio	1.51	1.54	Due to reduction in inventory levels
6 Trade Receivable Turnover Ratio	11.32	15.41	Due to increase in trade receivables
7 Trade Payables Turnover Ratio	7.29	-	Due to reduction in trade payables
8 Net Capital Turnover Ratio	4.04	5.11	-
9 Net Profit Ratio	0.00	(0.05)	Due to loss in previous year
10 Return on Capital Employed	0.35	(0.25)	Due to loss in previous year
11 Return on Investment	NA	NA	NA -

*Details of Significant Changes (i.e., Change of 25% or more as compared to the immediately previous financial year).

? Details of any Change in Return on Net worth as compared to the immediately previous financial year along with a detailed explanations thereof:

No Significant Change in Return on Net worth.

? Cautionary Statement:

The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors.

For and on Behalf of Board of Directors

Place: Mandideep Sd/-

Date: 14/08/2025 Jaspal Singh

(DIN: 01406945)

Chairman & Managing Director