Jiya Eco-Products Ltd Management Discussions

INDUSTRY STRUCTURE AND OUTLOOK

Bio fuel (Briquettes and pellets) has the highest potential for small scale business development and mass employment. Characterized by unique technologies and freely available raw materials, it is still one of the leading sources of primary energy for most countries. With better technology transfer and adaption to local needs, bio-fuel is not only environmentally benign, but also an economically sound choice. Biobased energy can be expected to grow at a faster pace in the years to come. Bio-fuels can increasingly satisfy these energy needs in an environmentally benign and are cost effective. Bio fuel (Briquettes and Pellets) is substitute of fossil fuels such as coal, lignite, diesel, LDO, kerosene and other petroleum products. Thus, the increase in use of Bio fuel, will ultimately reduce the imports of petroleum products and it will helpful to the country in terms pollution related matters. Our Company, an ISO 9001:2008 certified is engaged in the manufacturing of bio-fuels viz. bio briquettes and bio-pellets. In 2012, our Company succeeded in setting-up our manufacturing unit at Navagam, Bhavnagar. Our Company started with the production of bio-briquettes and within a short span of time of around 2 years it enhanced its installed capacity to around 31,000 tonnes by installing new machineries, and forayed into production of bio-pellets as well thus making diversification in our range of products and increasing the scalability of our business

COMPANY PERFORMANCE:

During the financial year 2024 2025, Companys financial performance was as follows Total Income: 2.66 Lakh (Previous Year: Nil) Loss Before Tax (PBT): 104.05 Lakh (Previous Year: 114.82 Lakh) Loss After Tax (PAT): 104.05 Lakh (Previous Year: 114.82 Lakh)

BUSINESS STRENGTHS AND STRATEGIES:

- Strong project execution capabilities with focus on cost optimization, quality, and timely delivery.

- Certified management systems ensuring compliance with global quality, safety, and environmental standards.

- Integration of digital solutions (ERP) for project monitoring and execution.

- Active customer feedback mechanisms and focus on sustainability to minimize environmental impact.

MANAGEMENT SYSTEM:

Company being acquired through CIRP; on and from the Transfer Date, the Resolution Applicants shall constitute the Reconstituted board of the Corporate Debtor and appoint key managerial personnel, which may include independent professionals ("New Company Management") a) Control & Supervision of the New Company Management

? The New Company Management shall define organisation structure, policies, procedures, records and methods of reporting that are necessary to collectively ensure that the financial and non-financial operations of the Corporate Debtor is conducted in an orderly and efficient manner to achieve the Corporate Debtors objectives.

? Assessing and containing the risks faced by the Corporate Debtor to acceptable level. ? Preventing and correcting irregularities. ? Safeguarding assets against the loss / misuse. ? Ensuring financial and other records are complete in all respects and accurately and reliably reflect the conduct of the Corporate Debtor.

? Preventing the misuse or appropriation of resources.

? The actions of all officers of the Corporate Debtor including Directors, Key Managerial Personnel, Senior Management and Staff are in compliance with the Corporate Debtors policies standard compliance and procedures and also relevant laws and regulations.

? Monitoring of systems related to accounting and reporting as also relate to the organisations culture, communication process both internal and external, which include, handling of funds received and expenditure incurred by the Corporate Debtor, preparing appropriate and timely financial report to the Reconstituted Board and officers, conducting the annual audit of the Corporate Debtor, Corporate Debtors financial statements, evaluating staff and progress, maintaining inventory records and properties and their whereabouts and maintaining personal and conflict of interest policies.

The Company shall always maintain the highest governance standards and practices by formulating

"Corporate Governance Policies and Code of Conduct". These Policies and Code of Conduct shall prescribe a set of systems, processes and principles, which conform to the highest international standards and are reviewed periodically to ensure their continuing relevance, effectiveness and responsiveness to the needs of investors, both local and global, and all other stakeholders.

RISK MANAGEMENT AND OPERATIONAL RESILIENCE:

The development of the company would depend on overall macro and micro economic policy of the Government. The rapid changes in technological advancement requiring huge investment in an area of concern for the company.

OPPORTUNITIES AND CHALLENGES:

The industry has vast opportunities for expansion to meet up the increasing demand. The Bio fuel being a different commodity with not many competitors in the market and hence the industry can take benefit of this opportunity. The following factors have been considered for determining the materiality of Threat/Risk Factors: -

- General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies;

- Changes in laws and regulations relating to the sectors/areas in which we operate;

- The bio-fuel production / manufacturing is a relatively new concept to India and is yet to have a defined market as compared to its contemporary conventional fuel.

- Major change in policy and/or practice of road transport.

INTERNAL CONTROLS SYSTEM AND ADEQUACY:

The Board of Directors of the Reconstituted Board were not in office for the period to which this report primarily pertains. During the CIRP Process (i.e. between 24.04.2023 to 11.12.2024), RP and prior to the Insolvency Commencement Date, the Resolution Professional was entrusted with and responsibly for the management of the affairs of the Company. Further, during the implementation period i.e. w.e.f. 11.12.2024 till the constitution of Board, the affairs and control of the company was under the Management Committee, constituted as per NCLT order. As pointed out above, the Reconstituted Board of Directors have been in office only since April, 2025. Consequently, the Reconstituted Board has only a limited overview of the effectiveness of the internal financial and other controls of the Company for the financial year 2024-25 and Directors, as on date, are not to be considered responsible to discharge fiduciary duties with respect to the oversight on financial and operational health of the Company and performance of the management for the period prior to the Acquisition.

HUMAN RESOURCES:

Given the nature of the operations, a significant portion of the said employee strength comprises of drivers, cleaners and other unskilled employees. Your management feels proud to state that there were no instances of strikes, lockouts or any other action on part of the employees that affected the functioning of the Company. It is noteworthy that there is no Employee Union within the organization.

CAUTIONARY STATEMENT

Statements in the Management Discussions and Analysis Report in regard to projections, estimates and expectations may be "forward looking statement" within meaning of applicable securities laws and regulations. Many unforeseen factors may come into play and affect the actual results, which would be different from what directors envisage in terms of future performance and outlook. Market data and product information contained in this report have been based on information gathered from various sources published and un-published reports, and their accuracy, reliability and completeness cannot be assured.

For and on behalf of the Board of Directors

Sd/-	Sd/-
Mr. Pradeep Khandagale	Mrs. Rajashri Khandagale
Whole Time Director	Non-executive Director
DIN: 01124220	DIN: 02545231

 

Place: Pune

Date: 21st November, 2025