Jiya Eco-Products Ltd Management Discussions

INDUSTRY STRUCTURE AND OUTLOOK

The Indian biomass briquette and pellet industry is emerging as an important segment of the renewable energy sector, driven by increasing demand for cleaner and alternative fuels, government initiatives, rising environmental concerns and the need to utilise agricultural residues. Biomass briquettes and pellets are increasingly being used as substitutes for conventional fuels such as coal and other fossil fuels in industrial heating, boilers and power generation. The development of the industry has received significant impetus from the Government of India s policy on biomass co-firing in coal-based thermal power plants. The Ministry of Power, through the SAMARTH Mission, is promoting the utilisation of biomass pellets in thermal power plants and aims to increase the level of biomass co-firing beyond the existing levels. During 2025, approximately 24.76 lakh metric tonnes (LMT) of biomass pellets were co-fired across India, representing an increase of approximately 108% over the previous year. This demonstrates the growing adoption of biomass pellets by the power sector and provides a significant demand opportunity for pellet manufacturers and the associated biomass supply chain. The Government has also strengthened the policy framework for biomass utilisation. In November 2025, the Ministry of Power issued a Comprehensive Policy for Co-firing of Biomass Pellets, including torrefied charcoal made from municipal solid waste, in coal-based thermal power plants. The policy framework, together with standard operating procedures and capacity-building initiatives, is expected to support the development of a more organised biomass pellet ecosystem. The industry is primarily dependent upon agricultural and other biomass residues such as paddy straw, cotton stalks, groundnut shells, sawdust, bagasse and other agro-industrial residues. Consequently, the sector also contributes towards productive utilisation of agricultural waste and can provide an additional source of income to farmers. 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. The development of organised collection, processing, storage and transportation infrastructure remains critical for ensuring a consistent supply of raw materials to manufacturing units. 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. Going forward, the industry is expected to witness continued growth in demand for biomass pellets and briquettes, particularly from thermal power plants and industrial users seeking to reduce their dependence on fossil fuels. The Governments focus on increasing biomass co-firing, development of supply-chain infrastructure, technology improvement and support for pellet manufacturing is expected to create further opportunities for existing manufacturers as well as new entrants. The SAMARTH Mission specifically recognises the need to support start-ups and SMEs in establishing pellet manufacturing facilities and developing sustainable biomass supply chains.

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; - availability and seasonal variation of raw materials, collection and transportation costs, storage requirements, quality consistency, moisture content, logistics and fluctuations in biomass prices.

- 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.

CORPORATE INSOLVENCY RESOLUTION PROCESS (CIRP) OF JIYA ECO-PRODUCTS LIMITED KEY HIGHLIGHT:

Jiya Eco-Products Limited ( the Company ) was incorporated, on 27.12.2011, carrying on the business of farming, agriculture and horticulture and to grow, produce, manufacture, process, prepare, refine, extract, manipulate, hydrolyse, buy, sell, market or deal in all kinds of agricultural, horticultural, dairy, poultry and farm produces and products including food grains, cereals, seeds, soyabeans, corn, corn oils, cash crops, plants, flowers, vegetables, edible oils, meat fish, eggs, animal and human foods and food products and also to produce and develop value added products like bio-coal from biomass and waste of above products. The Financial Creditor-Raj Radhe Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (As amended and hereinafter referred to as the Code) to initiate the Corporate Insolvency Resolution Process (CIRP) against the Company. The National Company Law Tribunal (NCLT), Ahmedabad has admitted the Company under CIRP on 24.04.2023. The Honble NCLT, Ahmedabad Bench, passed the order for initiation of CIRP under section 7 of the Code appointing Mr. Keyur J Shah as Interim Resolution Professional, subsequently confirming Prawin Charan Dwary as the Resolution Professional (RP) vide NCLT order dated 17.07.2023 under the provisions of the Code. Under Section 17 of the Insolvency and Bankruptcy Code the management of the affairs of the company shall vest in the erstwhile Resolution Professional. The powers of the Board of Directors shall stand suspended and be exercised by the erstwhile Resolution Professional. Pursuant to the appointment, the Resolution Professional took various steps in conformity with the provisions of the IBC Code towards the conduct of the CIRP and management of the Company, including the invitation of a resolution plan in consultation with the CoC and resolution plan submitted by the RPK Green Energy LLP ( Resolution Applicant ), was approved by the CoC in its meeting held on 28 th August, 2024 and has been approved by a Honble NCLT, Ahmedabad Bench, vide Order dated 11 th December, 2024.

COMPANY PERFORMANCE:

During the financial year 2025-26, Company s financial performance was as follows Total Income: Nil (Previous Year:2.66 Lakh) Loss Before Tax (PBT): 47.25Lakh (Previous Year: 104.05 Lakh) Exceptional items: 1,521.40 (Previous Year: Nil) Profit/Loss After Tax (PAT): 1,474.15 Lakh (Previous Year: Loss After Tax- ( 104.05 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 Debtor s 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 Debtor s policies standard compliance and procedures and also relevant laws and regulations. Monitoring of systems related to accounting and reporting as also relate to the organisation s 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 Debtor s 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 CONCERNS:

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.

INTERNAL CONTROLS SYSTEM AND ADEQUACY:

The Reconstituted Board of Directors of company were not in office for the period 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 2025-26 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. However, the Company has developed a strong two-tier internal control framework comprising entity level controls and process level controls. The entity level controls of the Company include elements such as defined Code of Conduct, Whistle Blower Policy / Vigil Mechanism, rigorous management review and Management Information System (MIS) and strong internal audit mechanism. The process level controls have been ensured by implementing appropriate checks and balances to ensure adherence to Company policies and procedures, efficiency in operations and also reduce the risk of frauds. Regular management oversight and rigorous periodic testing of internal controls makes the internal controls environment strong at the Company. The Audit Committee along with the Management oversees results of the internal audit and reviews implementation on a regular basis.

DETAILS OF SIGNIFICANT RATIO CHANGE:

The key financial ratios of Jiya Eco-products Limited are given below;

Key Financial Ratios (Standalone)	2025-26	2024-25	Variance
Current Ratio	1.35	0.35	286%
Debt to Equity Ratio	(1.44)	(1.44)	0%
Debt Service Coverage Ratio	NA	NA	0%
Return On Capital Employed	11.86	NA	0%
Net profit ratio	NA	NA	0%
Return on Equity	(5.27)	0.06	(8,883%)

Notes:

- Current ratio [Current assets ÷ Current liabilities]

- Debt-equity ratio [Total debt excluding lease liability ÷ Equity]

- Debt service coverage ratio [(Profit after tax +Finance cost + Depreciation) ÷ (Finance cost +Long term debt)]

- Return On Capital Employed [Earnings before interest and taxes ÷ Capital Employed]

- Capital Employed [Tangible net worth + Deferred tax liabilities + Lease liabilities]

- Net profit ratio [Net Profit after tax ÷ Net sales]

- Return on Equity [Net Profits after taxes ÷ Shareholders equity]

HUMAN RESOURCES:

The total employee strength during of the Company as of 31 st March, 2026 wa s 5 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 JIYA ECO-PRODUCTS LIMITED

Sd/-	Sd/-
Mr. Pradeep Khandagale	Mrs. Rajashri Khandagale
Whole Time Directors	Non-executive Director
DIN: 01124220	DIN: 02545231
Place: Pune
Date: 11 th August, 2026.