Jaipan Industries Ltd Management Discussions

Pursuant to Regulation 34(2)(e) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI LODR Regulations") read with Schedule V thereof, the Management Discussion and Analysis Report for the financial year ended 31st March, 2026 is presented below.

Although the Company continues to avail the exemption under Regulation 15(2) of the SEBI LODR Regulations (paid-up equity share capital and net worth being below the prescribed thresholds), the Company has voluntarily prepared this Report as a measure of good corporate governance and transparency.

1. Industry Structure and Developments

Jaipan Industries Limited operates in the household appliances and consumer durables sector, primarily engaged in the trading and sale of electronic household accessories such as mixer grinders, kitchen appliances and related products.

The Indian household appliances industry continues to be characterised by steady demand driven by rising disposable incomes, urbanisation, nuclear family structures and increasing penetration of organised retail and e-commerce. At the same time, the industry remains highly competitive, with significant presence of both organised brands and unorganised players, resulting in pricing pressures.

Export markets continue to offer diversification opportunities. The Company remains focused on quality, brand recall and cost competitiveness to strengthen its position in both domestic and international markets.

2. Financial Performance

During the financial year 2025-26, the Company recorded the following key financial results:

- Revenue from Operations (Net) : Rs27,31,37,042

- Other Income : Rs3,93,278

- Total Revenue : Rs27,35,30,320

- Profit before Exceptional Items and Tax : Rs33,16,249

- Exceptional Item (Insurance Claim received against loss by fire) : Rs2,99,81,245

- Profit before Tax / Net Profit after Tax : Rs3,32,97,494

- Basic Earnings Per Share : Rs5.46

Key Balance Sheet indicators as at 31st March, 2026:

- Total Assets : Rs18,10,24,537

- Inventories : Rs3,11,01,943

- Trade Receivables : Rs9,47,59,122

- Cash and Cash Equivalents : Rs1,77,17,043

- Short term Borrowings : Rs4,58,28,452

- Long term Borrowings (including other long term liabilities) : Rs2,56,30,088

- Reserves and Surplus : Rs1,60,83,003 (turned positive from a deficit in the previous year)

The significant improvement in profitability and reserves was primarily driven by the recognition of the Insurance Claim of Rs2,99,81,245 relating to the earlier fire incident at the Vasai-Palghar plant. Core operating performance also showed resilience with controlled finance costs and improved working capital management.

3. Opportunities and Threats

Opportunities

- Growing domestic demand for household appliances driven by urbanisation and rising incomes.

- Expansion of e-commerce and modern retail channels.

- Potential to increase export footprint in existing and new geographies.

- Scope for product range expansion and brand strengthening.

Threats

- Intense competition from organised and unorganised players.

- Volatility in raw material and component prices.

- Fluctuations in foreign exchange rates affecting export realisations.

- Changes in government policies, duties and regulations.

- Working capital intensity of the trading business.

The Company continuously monitors these factors and takes appropriate mitigation measures through cost optimisation, prudent inventory management and focus on high-value customers.

4. Segment-wise / Product-wise Performance

The Company operates in a single primary business segment – trading and sale of electronic household appliances and accessories. Revenue is derived from domestic sales as well as exports. Performance during the year was supported by better realisation in certain

Annual Report 2025 - 2026

product categories and controlled operating expenses.

5. Outlook

The Company remains cautiously optimistic about the medium-term outlook. Focus areas for the coming years include:

- Strengthening the domestic distribution network and e-commerce presence;

- Expanding the export portfolio;

- Continuous cost optimisation and working capital efficiency;

- Leveraging the improved balance sheet strength post the insurance claim receipt.

The management expects gradual improvement in operating performance, subject to stable market conditions.

6. Risks and Concerns

Key risks faced by the Company include market competition, raw material price volatility, foreign exchange fluctuations, credit risk on receivables, and regulatory changes. The Company has put in place a risk management framework which is reviewed by the Board and the Audit Committee. Appropriate mitigation strategies, including diversified sourcing, credit monitoring and cost control measures, are being implemented on an ongoing basis.

Subsequent Events:

Subsequent to the end of the financial year on 31st March, 2026, the following material events have occurred:

- There have been open-market sales of equity shares by certain members of the Promoter Group during June and July 2026. As a result, the Promoter Group holding has reduced from 39.93% as on 31st March, 2026 to approximately 30.38%. The paid-up equity share capital of the Company remains unchanged. The management does not expect this change in shareholding pattern to have any material adverse impact on the operations or the going-concern status of the Company.

- Mr. Atin J. Agarwal resigned as Chief Financial Officer of the Company with effect from 13th August, 2026. The Company is in the process of identifying and appointing a suitable replacement in accordance with the applicable provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

The Board and the management remain committed to the long-term growth of the Company.

7. Internal Control Systems and their Adequacy

The Company has an adequate system of internal controls commensurate with its size and nature of business. These controls provide reasonable assurance regarding the reliability of financial reporting, compliance with applicable laws and safeguarding of assets.

The internal control systems are reviewed periodically by the Internal Auditors and the Audit Committee. The Statutory Auditors have also expressed satisfaction regarding the adequacy and operating effectiveness of internal financial controls with reference to the financial statements.

8. Human Resources

The Company considers its employees as a key resource. Continuous efforts are made to provide a conducive work environment, skill development opportunities and performance-linked culture. Relations with employees remained cordial during the year.

9. Discussion on Financial Performance with respect to Operational Performance

The operational performance during the year remained stable despite a marginal decline in revenue. The exceptional insurance claim significantly boosted the bottom line and strengthened the balance sheet. Working capital cycle improved with higher inventory levels matched by better cash position and reduced trade payables. Finance costs declined, reflecting better debt management.

10. Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied due to various risks and uncertainties. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statement on the basis of any subsequent development or information.