Royal Sense Ltd Management Discussions

In compliance of Regulation 34(3) and 54(f) read with Schedule V of Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations,

20 5, please find Management Discussion and Analysis Report forming part of Annual Report.

At Royal Sense, we specialize in the supply of premium-quality products that adhere to international standards, catering to the needs of hospitals, laboratories, institutions, and clinics engaged in delivering healthcare services. Our extensive portfolio includes a broad range of surgical instruments, accessories, equipment, and related medical supplies. We also offer customization options to meet specific client requirements, ensuring flexibility across a diverse set of specifications.

1. INDUSTRY OVERVIEW

The Indian healthcare and pharmaceutical sector continue to experience robust growth driven by increased health awareness, rising demand for quality medical products, and government initiatives to improve healthcare infrastructure. The demand for diagnostic tools, pharmaceuticals, surgical accessories, and home healthcare devices remains strong, especially in the post-pandemic landscape where preventive healthcare and rapid diagnostics have become critical.

The Indian Pharmaceutical industry is currently ranked third in pharmaceutical production by volume after evolving over time into a thriving industry growing at a CAGR of 9.43% since the past nine years. Generic drugs, over-the-counter medications, bulk drugs, vaccines, contract research & manufacturing, Surgical Equipments, and biologics are some of the major segments of the Indian pharma industry. India has highest number of pharmaceutical manufacturing facilities that comply with the US Food and Drug Administration (USFDA) and has 500 API producers that make for around 8% of the worldwide API market.

2. BUSINESS OVERVIEW

Royal Sense Limited stands as a beacon of innovation and excellence in the healthcare industry, specializing in medical device and pharmaceutical trading. Established in April 2023, our commitment is unwavering, aiming to provide cutting-edge solutions, superior products, and exceptional service to meet the evolving needs of healthcare professionals and patients globally.

Royal Sense has continued to strengthen its position as a trusted supplier of high-quality medical and healthcare products. The Company caters to a broad client base including hospitals, clinics, diagnostic laboratories, and healthcare institutions across India. With a strong commitment to quality, innovation, and compliance, Royal Sense offers a wide array of medical supplies and equipment tailored to meet international standards.

Core Business Segments:

• Pharmaceuticals: Discover groundbreaking pharmaceutical solutions tailored to diverse healthcare needs. Our research-driven approach ensures the highest standards of safety and efficacy. We are committed to inclusivity, reflecting the rich diversity of patients we serve. Explore our range of innovative treatments, designed to improve quality of life and advance medical care. Our products Branded generics, specialty drugs, OTC medicines, biologics, biosimilars.

• Surgical & Medical Equipment: We specialize in providing cutting-edge diagnostic tools, surgical instruments and disposables designed to empower healthcare professionals in making accurate and timely clinical decisions. We focus on precision, safety, and cost-effectiveness. Wide range of products including diagnostic devices and surgical consumables.

3. KEY BUSINESS HIGHLIGHTS – FY 2024–25 A. Product Expansion and Launches

During the financial year under review, the Company expanded its product portfolio significantly, launched 80+ products across multiple categories including pharmaceuticals, medical devices, diagnostic kits, and healthcare accessories. Notable launches include:

Pharmaceuticals:

IETRACON 00 mg / 200 mg

Isompra DSR

ILEVOFLOXA 500 mg

Ugmntin LB / Ugmntin 25 Tablet / Ugmntin Syrup / Ugmntin .2gm Injection

Prigal ( 5 mg, 50 mg, 300 mg) and Prigal M

• CINAZI (250 mg / 500 mg)

• JCZ Series (JCZ-M Syrup, JCZ-C, JCZ 5, JCZ PLUS)

• Opentop Series (Opentop 40, D, L, DSR)

• RABI.SEC DSR, MECGIC, NSUME

• Trnxa Tablet, Trnxa MF Tablet, NDEM 4 MG, EF.TUM

Tablets

• ONLOX 200 / ONLOX OZ Tablets

• Cefix-O, Cefix-CV Tablets

• Steropenam gm, Nomoceft gm Injections

Diagnostic Kits:

ONCE Rapid DIY Kits for:

Typhoid

Chikungunya

HBsAg

Dengue Combo

Pregaonce (Pregnancy Test Kit)

Stergic Rapid Test Kits:

Typhoid IgG/IgM

Chikungunya IgG/IgM

• Dengue IgG/IgM

• Syphilis Ab

• HIV

• HBsAg

Medical Devices & Surgical Supplies:

• Stergic Range of Devices:

• Mesh Nebulizer, Lumia EC/FC/HC Nebulizers, Lumia Steam Vaporiser

• Digital Thermometer, Breast Pump

• Blood Lancets (Round & Flat)

• Walking Stick, Crutch, Toilet Seat, Walker, Back Rest, Hot Water Bag, Coccyx Cushion

Supportive Belts:

• Stergic Iris Lumbo Sacral Belt

• Anklet

• Abdominal Supportive Belt

• Stergic Cervical Neck Support

• Stergic Next Ankle Binder Other Launches:

• Pecolux Syrup, Xedex (Syrup, L Syrup, BR Syrup)

• Neucaine, Sumerest, IONFLAM, IONZOX, Mftal Tablets

• Cefix 200, AC_ECLO Series (P, MR, FLAM)

A. Regulatory Milestone – US FDA Approval

One of the most significant achievements during the year was obtaining US FDA approval for over 40 products. This milestone reflects the Companys ongoing commitment to maintaining the highest standards of quality, manufacturing excellence, and global compliance. The approval opens new avenues for exports and international market penetration.

4. OPPORTUNITIES AND THREATS:

Pharmaceutical companies face strong growth opportunities due to rising global healthcare demand, technological advancements, emerging markets, and innovation in areas like personalized medicine and biosimilars. However, they also encounter major threats including strict regulations, patent expirations, pricing pressures, market competition, supply chain risks, and legal or reputational challenges. Success depends on leveraging innovation and partnerships while effectively managing risks and compliance.

5. RESEARCH & DEVELOPMENT

The Company has made focused investments in R&D to strengthen its product pipeline and introduce innovative offerings in the diagnostics and pharmaceutical segments. Customization of medical products to meet specific clinical requirements continues to be a key area of innovation.

6. OUTLOOK FOR FY 2025–26

We aspire to be the premier provider of cutting-edge medical devices and pharmaceuticals, delivering impactful solutions that enhance patient care, improve health outcomes, and inspire trust worldwide. Building on its strong foundation, Royal Sense aims to:

• Expand its domestic and global distribution network.

• Launch new therapeutic and diagnostic products.

• Explore strategic alliances and partnerships to strengthen its supply chain and technology base.

• Continue enhancing its regulatory capabilities to penetrate regulated international markets.

Through our unwavering commitment to our vision and values, we strive to make a meaningful difference in the lives of patients, healthcare professionals, and communities worldwide. Together, we are shaping the future of healthcare, one innovative solution at a time.

7. RISK MANAGEMENT

The Company remains vigilant in monitoring risks associated with supply chain disruption, regulatory changes, pricing pressure, and market competition. Contingency measures, diversification strategies, and quality assurance systems are in place to mitigate such risks effectively.

We are driven by a clear strategy, future-focused mindset, and a commitment to innovation, aiming to establish ourselves as a comprehensive, one-stop destination for customers seeking end-to-end solutions across the healthcare spectrum. Our offerings encompass medical equipment, surgical instruments and consumables, laboratory equipment and reagents, diagnostic tools, sanitary products, pharmaceuticals, medicines, and cosmetics meeting the diverse and evolving needs of the healthcare industry.

We supply our products to the Ministry of Health of Various states like Uttar Pradesh, Himachal Pradesh, Rajasthan, Jammu & Kashmir and in domestic by our self or through distributors/ sub-distributors. we also supply to both to Govt. Institutions and private hospitals in all over India.

7. COMPETITION

We operate in a highly competitive environment characterized by the presence of numerous unorganized players and a limited number of organized competitors. The absence of significant entry barriers in our industry increases the risk of competition from new entrants, further intensifying market dynamics.

Despite these challenges, we believe we are well-positioned to compete effectively, owing to the consistent quality of our products and our commitment to customer satisfaction. The key factors influencing competitiveness in our sector include the strength of client relationships, brand reputation, product quality, and pricing.

We actively compete with both organized and unorganized players to secure direct engagements with customers, and we continue to focus on enhancing our value proposition to strengthen our market position.

8. PROSPECT & OUTLOOK

The management remains optimistic about the future prospects of the Company and anticipates strong performance in the current financial year. With continued support from our committed customer base and a steady increase in order volumes, the Company expects a positive impact on its revenue growth and overall financial performance.

9. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a robust internal control system designed to ensure the accuracy and reliability of financial reporting, safeguard its assets, promote operational efficiency, and ensure compliance with applicable laws and regulations. These controls are regularly reviewed and updated to align with evolving business needs and regulatory requirements. The internal audit function, which operates independently, conducts periodic audits across various departments and processes to assess the effectiveness of the control systems and identify areas for improvement. The findings and recommendations of internal audits are reviewed by the management and the Audit Committee, and corrective actions are implemented where necessary. Based on the review and assessments conducted during the year, the management is of the view that the internal control systems in place are adequate and operating effectively to support the Companys objectives.

10. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The details of the financial performance of your Company are reflected in the Balance Sheet, Profit

& Loss Account and other Financial Statements, appearing separately. Highlights are provided below:

Particulars	Standalone	Consolidated
	2025	2025
Revenue from	2 4.3	3.40
Operations
Other Income	.98	.98
Total Income	2 2.29	8 .38
Profit/(Loss)	4 2.93	8 3.4
Before Tax

The financial performance of your Company has been further explained in the Directors Report of your Company for the year 2024, appearing separately.

11. HUMAN RESOURCES

The Company continually enhances its organizational structure and places strong emphasis on adopting best-in-class Human Resource practices. Continuous training and development programs are undertaken to strengthen management capabilities and improve overall operational efficiency.

Our objective is to foster a work environment where every individual is empowered to realize their full potential. Employees are encouraged to contribute their best efforts, and a culture of innovation is promoted to support both short-term goals and long-term strategic objectives.

The Company is proud to maintain a positive and collaborative work culture, with employees expressing high levels of satisfaction and enjoying a strong, respectful relationship with the management.

12. SIGNIFICANT CHANGES IN FINANCIAL RATIOS

During the year, the significant changes in the financial ratios of the Company, which are 25% or more as compared to the previous year are summarized below:

Ratio	Numerator	Denominator	Current period	Previous period	% variance	Reason for variance
(a) Current ratio	Current assets	Current liabilities	2.48	.00	- 5%	As increase in current liabilities and decrease in current assets during the year
(b) Debt-equity ratio	Borrowings+ Interest	Total Equity	0. 3	0.09	5 %	As bank overdraft were increased in the current year
	Accrued
(c) Debt service coverage ratio	Earning for Debt Service	Interest	4. %	3. 9%	0%	NA
(d) Return on equity ratio	Net Profits before taxes	Average Shareholders Equity	0. 9	0.25	-23%	NA
(e) Inventory turnover ratio	Cost of goods sold OR sales	Average Inventory	.94	40.9	-88%	As inventory were increased in the current year
(f) Trade receivables turnover ratio	Net Credit Sales	Avg. Accounts Receivable	4.0	8.0	-50%	As accounts receivable is increased for the year
(g) Trade payables turnover ratio	Net Credit Purchases	Average Trade Payables	3 .3	,3 2.98	-9 %	Increase in trade payable during the year
(h) Net capital turnover ratio	Net Sales	Working Capital	3.0	.3	2 %	As increase in current liabilities and decrease in current assets during the year
(i) Net profit ratio	Net profit	Net Sales	.02%	8.9 %	23%	NA
(j) Return on capital employed	Earning before interest and taxes	Capital Employed	%	3%	34%	As increase in profit during the year
(k) Return on investment	Earning before taxes	Capital Employed	NA	NA	NA	NA

Note no - Please note that variance below 25% has not been explained.

13. CAUTIONARY STATEMENT

This Management Discussion and Analysis contains certain forward-looking statements relating to the Companys expectations, objectives, projections, and outlook for the industry and its operations, which are based on current estimates and assumptions in accordance with applicable laws and regulations.

These statements are subject to inherent risks and uncertainties. Actual results may differ materially from those expressed or implied due to various factors including, but not limited to, fluctuations in market demand and supply, changes in input costs and availability, regulatory changes, taxation policies, judicial or governmental decisions, industrial relations, and broader economic and political developments.

The Company advises investors and stakeholders to exercise caution in interpreting and relying on these forward-looking statements, as they are not guarantees of future performance.

Dated: 02.09.2025
	By order of the Board of Directors
	For Royal Sense Limited