c j gelatine Management discussions

(As on March 31, 2023)

1. Industry Structure & Developments:

During the year under review, world is moving-up from Covid-19 Infections after the pandemic infected many and killed lot of people during its Second wave. The uncertainties created and affected the whole economy. However, Gelatine Industry being related to healthcare recovered well during the year. In Coming years, where Indian Government has also laid a path to spend more on Research & Developments in Pharma Sector and making targets to Spend more on healthcare to improve the health of a Common Man with launching various Schemes will surely help our industry to grow further on the whole.

Further, worldwide Gelatin consumption forecast to reach new heights, driven by an increasing demand for functional and convenience foods, growth in end-user industries, rising health awareness and growth in emerging markets. Additionally, rising standards of living, easy affordability and greater awareness in emerging economies like India will promote further growth.

2. Opportunities and Threats:

Our Company products are very well related to Pharma and Food Industry and the Ongoing Pandemic has made the public at large to be focused on their Health in General. Vitamins products are now being a large part of health care supplements which are now a daily need for human beings.

Continuous Increase in Energy Charges or Fuel around the whole world, Oil Reaching more than three digits in $ have made impact on cost of Energy and Chemicals. Consumption of Non-veg reduced due to lockdowns which also had an impact on the availability of Crushed Bones.

3. 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 reportable segment as per IND-AS-108 “Operating Segments.”

4. Outlook:

As the pandemic still continues in several parts of the world, the Outlook for our Industry is likely to remain strong as our Fierce Competitor, China is also facing huge problems and world is looking at India as a Substitute in the Pharma Sector.

5. Risks and Concerns:

The pandemic had a severe impact on overall economy of the Country, and as every Sector is interconnected and interdependent it can have an impact on our industry as well. The Energy Costs and rising Prices of Raw Material & other inputs will lead to Increase in Cost which will be passed to the next Consumer and ultimately to the Public at large who are already burdened with Increase in prices across all Sectors.

6. 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.

7. 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.

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

As on March 31, 2023 the company had 95 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.

9. 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	1.502	1.544
2 Debt-equity Ratio	2.704	2.454
3 Debt Service Coverage Ratio	0.950	1.094
4 Return on equity Ratio	0.031	0.045	Due to decrease in operating revenue
5 Inventory turnover Ratio	1.306	1.297
6 Trade Receivable Turnover Ratio	12.700	12.655
7 Trade Payables Turnover Ratio	4.377	3.574
8 Net Capital Turnover Ratio	4.026	4.840
9 Net Profit Ratio	0.006	0.009	Due to decrease in operating revenue
10 Return on Capital Employed	0.233	0.210
11 Return on Investment	NA	NA

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

10. 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.

11. 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: 12/08/2023	Jaspal Singh
	(DIN:01406945)
	Chairman & Managing Director