Cian Healthcare Ltd Management Discussions

Management Discussion and Analysis Report:

a) Industry Structure and Development:

The Company was originally incorporated as "Cian Healthcare Private Limited" at Pune, Maharashtra as a Private Limited Company under the provisions of Companies Act, 1956 vide. Certificate of Incorporation dated January 07, 2003 bearing Corporate Identification Number U24233PN2003PTC017563 issued by Registrar of Companies, Pune, Maharashtra.

Subsequently, our Company was converted into a Public Limited Company pursuant to special resolution passed by the shareholders at the Extraordinary General Meeting held on November 19, 2018 and fresh certificate of incorporation consequently upon change of name was issued by Registrar of Companies, Pune, Maharashtra dated November 30, 2018 and name of our Company was changed to Cian Healthcare Limited. The Corporate Identification Number is L24233PN2003PLC017563.

Healthcare has become one of Indias largest sectors, both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services, and increasing expenditure by public as well as private players.

Indias healthcare delivery system is categorized into two major components - public and private. The government, i.e., the public healthcare system, comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of Primary Healthcare Centers (PHCs) in rural areas. The private sector provides the majority of secondary, tertiary, and quaternary care institutions with a major concentration in metros, tier-I, and tier-II cities.

Indias competitive advantage lies in its large pool of well-trained medical professionals. India is also cost-competitive compared to its peers in Asia and Western countries. The cost of surgery in India is about one-tenth of that in the US or Western Europe. The low cost of medical services has resulted in a rise in the countrys medical tourism, attracting patients from across the world. Moreover, India has emerged as a hub for R&D activities for international players due to its relatively low cost of clinical research.

During FY 2024 25, the Indian healthcare sector continued its strong growth trajectory and remains on course to reach an estimated market size of US$ 638 billion by 2025, driven by rising healthcare demand, increased digital adoption, and continued private sector participation. Public expenditure on health maintained its upward trend, with the Union Budget 2024 25 allocating approximately 90,659 crore to the Ministry of Health & Family Welfare and total health sector allocation estimated at around 98,761 crore. The sector also benefited from sustained foreign investment momentum, with pharmaceutical and medical devices attracting FDI inflows of approximately 11,888 crore between April December 2024, in addition to approvals for 13 brownfield FDI proposals worth 7,246 crore during the year. The pharmaceutical market continued expanding, with the Indian Pharmaceutical Market valued at about 2,33,261 crore in FY 2024 25. Digital health continued to be a major growth catalyst, with strong adoption across telemedicine, e-health platforms and AI-enabled healthcare solutions, aligning with the industrys wider shift toward integrated, technology-driven care models. Overall, Indias healthcare landscape in FY 2024 25 reflected steady expansion, increasing investment, and accelerated digitisation, reinforcing the sectors role as one of the countrys most significant economic and employment drivers.

b) Opportunities and Threats:

Opportunities	Threats
Entry in the market of Govt., Supply and Exports where own Mfg. is a pre-requisite	Changes in Government policies Supply chain disruption
Reduction in Inventory holding coupled with improved quality and timely delivery	Excessive lead times in case of more contract work
Capitalization on the marketing setup by backward integration thereby reducing the dependency on contract manufacturers	Inventory float and the difficulty of tracking it Imports and regulatory structure Slowdown in rural demand
Due to increased health awareness in India, the setting up of number of hospitals / clinics with laboratories are expected to increase every year, which is expected to gives boost to market company\u2019s products	Presence of chemicals and other toxic elements in soaps can damage skin texture or trigger allergies, in some people
Global market is lucrative
Can take help of expertise from technical persons to curb competition
Large domestic market
Export potential
Increasing income levels is estimated to result in faster revenue growth
Indian government\u2019s Swachh Bharat mission
GST lowered duty
Increasing purchasing power and premiumisation of
soaps has created a growing need for premium,
feature-rich products, such as herbal soaps

c) Segment wise performance:

The company operating in Five sectors i.e. Export, Government Supplies, Merchant Export, Own Brand Franchise Business and Third Party/ Contract manufacturing, The details of segment wise performance is as under:

Sr. No. Segment	Net Sales
1. Export	4,52,55,206
2. Government Supplies	1,67,38,722
3. Merchant Export	2,48,08,660
4. Third Party	24,64,33,507
5. Other	92,68,275
Total:	34,25,04,369

d) Outlook:

Your Companys estimates for future business development are based both on its customers forecasts and on the Companys own assessments.

e) Risk and Concern:

The Company is responsible for handling risks, which forms a part of good corporate governance. As part of our group values, adequate risk management ensures that risks are identified early and mitigation process is defined. Various types of risks that can be categorized into external risks and internal risks impact the Company .

External Risks:

Industrial risks like change in government regulations or their implementation could disrupt our operations, unethical marketing, dishonest advertising, questionable pricing practices, inaccurate claims with regards to safety and efficacy of the product, Political instability, Natural calamities, Terrorist attacks, civil unrests etc.

Internal Risks:

The Company can improve operational performance and create long-term value for shareholders on the back of superior consumer innovation as well as persistent focus on profitable growth and cost efficiency. The internal departments of the Company proactively monitor and manage the operational risks at various levels.

f) Internal Control:

Commensurate with size, scale and complexity of its operation, the Company has well defined and adequate internal controls, throughout the year, the internal controls operated effectively. Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor, including:

Sr. No. Particulars	Current Year	Previous Year	Variance	Comments For Variations in Ration
	2024-25	2023-24
Current Ratio (in 1 times)	0.69	1.15	-40.49%	The current ratio has declined significantly compared to the previous year, primarily due to an increase in current liabilities. The company has been undergoing the Corporate Insolvency Resolution Process (CIRP) since August 14,
				2024, which has resulted in considerable financial distress. A major component of the increased current liabilities comprises deposits received from resolution applicants as part of the CIRP proceedings.
				The debt-equity ratio has increased during the current financial year, primarily as a result of losses incurred during the CIRP
Debt Equity Ratio (in 2 times)	0.95	0.66	43.00%	period, which have reduced the equity base. This increase reflects the heightened financial leverage associated with the insolvency resolution process.
Debt Service				The debt service coverage ratio has deteriorated during the current financial year, primarily due to the losses incurred and a substantial increase in debt liabilities. The ongoing Corporate Insolvency
3 Coverage Ratio (in times)	(1.22)	0.95	-228.05%	Resolution Process (CIRP) since August 14, 2024, has further impacted the company\u2019s ability to generate sufficient operational cash flows to service its debt obligations.
4 Return on Equity (%)	-37.81%	0.63%	-6080.55%	The return on equity ratio has declined during the current financial year, primarily due to losses incurred while the company has been undergoing the Corporate Insolvency Resolution Process (CIRP) since August 14, 2024. The ongoing financial distress during the CIRP period

g) Discussion on financial performance with respect to operational performance:

During the year the performance of the Company has substantially Decreased compared to the previous year.

a) Total turnover for the financial year 2024 -2025 was Rs. 3,113.50 Lakh as compared to the previous financial year 2023-2024 which was Rs. 5,980.97 Lakh resulting a decrease by 47.92% between the two financial years. b) Profit /(Loss) before Tax for the financial year 2024 -2025 was Rs. (1,967.42) Lakh as compared to the previous financial year 2023-2024 which was Rs. 1.26 Lakh resulting a decrease by 1,56,125.4% between the two financial years. c) Profit /(Loss) after Tax for the year was Rs. (1965.65) Lakh as compared to the previous financial year which was Rs. 38.96 Lakh resulting a decrease by 5,147.4% between the two financial years.

h) Human Resource Management:

To build a talent pool, it becomes necessary for the human resources function to partner with the various business segments so as to create a work ecosystem that shall have on board, the right talent and therefore nurture them to deliver superior performances. As an organization committed towards motivating its employees, the Company believes in recognizing and rewarding its employees for their extra-ordinary contributions through quarterly and annual rewards programs. It also recognizes employees who have contributed to the organization. Your company is focused on building a high performance culture with a growth mindset. Developing and strengthening capabilities of all employees has remained on ongoing priority.

Cautionary Statement:

Cautionary Statement Statements in this report describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable laws and regulations. The actual results may differ materially from those expressed in this statement because of many factors like economic condition, availability of labour, price conditions, domestic and international market, changes in Government policies, tax regime, etc. The Company assumes no responsibility to publicly amend, modify or revise any statement on basis of any development, information and event.

BY THE ORDER OF RESOLUTION PROFESSIONAL FOR CIAN HEALTHCARE LIMITED

Sd/-	Sd/-
Suraj Shriniwas Zanwar	Roshen Chordiya
(Managing Director)	Insolvency Resolution Professional
DIN: 01304850	IBBI/IPA-001/IP-P02840/2023-2024/14347
Date: 24/11/2025
Place: Pune