JM Financial Ltd Management Discussions.

Global growth prospects look bright on vaccination hopes

Global growth in 2020 contracted 3%YoY (IMF estimates), sharper than during the 2008-09 financial crisis as the Covid-19 pandemic and the resultant great lockdown wreaked havoc on economic activity. Over the course of last year, vaccination drives raised hopes, whereas renewed waves and new virus variants continue to pose concerns for the outlook. The IMF, in Apr21, raised the global growth forecast for 2021 by 50bps, to +6.0%YoY reflecting

i) additional fiscal support in a few large economies, ii) an anticipated vaccine-powered recovery in the second half of 2021, and iii) continued adaptation of economic activity to subdued mobility.

Indian Economy

India officially entered into a recession in 2020. Data from the Central Statistical Office (CSO) however reveals sequential improvement in quarterly GDP growth (-24.4%/-7.3%/0.4% in 1Q/2Q/3QFY2020-21) driven by - i) gross capital formation (possibly driven by centre and states government capital expenditure growth along with households capital expenditure in real estate), and ii) private and government consumption expenditure. India is again witnessing a fresh surge of infections that reinforces growth pressures amidst several regional lockdowns. The second wave of Covid-19 infections remains the key downside risk to growth assumptions which so far have been retained by the RBI at 10.5%YoY for 2021 (IMF projects growth at + 12.5% in 2021).

In response to the pandemic crisis, the government announced stimulus measures worth INR 17trn - (8% of FY2019-20 GDP), directed primarily towards the poor, migrants and rural areas (c.44%). The economic slowdown in 2020 directly reflected in the negative growth in revenues. Yet, favouring counter-cyclical policy, the Centre held up spending and revised its gross-fiscal deficit-to-GDP target for FY2020-21 from 3.5% to 9.5%. For FY22, the deficit target has been set at 6.8% with focus on i) capital expenditure, ii) infrastructure spending and announcement to set-up a Development Finance Institution, iii) asset monetisation, and iv) financial sector reforms (privatisation of Public sector banks /one insurance company, setting up of an ARC and AMC), amongst others.

Inflation

Inflation remained above RBIs target band of 4% +/-2% for the first eight months of FY2020-21 till Nov20-reaching its highest peak since 2014 of 7.6% in Oct20 mainly on account of high food inflation. Though retail inflation fell back under RBIs target band post Nov20, it gained pace again in Feb21/ Mar21 reaching 5%YoY/ 5.5%YoY due to- i) uptick in food inflation, and ii) historic highs in petrol/diesel prices.

Overall, retail inflation in FY2020-21 stood at 6.2%YoY, 1.4ppts above FY2019-20 retail inflation. Wholesale inflation on the other hand came off by 1.1 ppts to 0.6%YoY in FY2020- 21 (till Feb21) vs. FY2019-20. The inflation target of 4% with a +/-2% tolerance band was retained for the next five years, the RBI expects inflation to average at 5% for FY22- i) 5.2% in 1QFY22, ii) 5.2% in 2QFY22, iii) 4.4% in 3QFY22, and iv) 5.1% in 4QFY22. Upside risks to inflation remain in the form of - i) higher commodity prices and the consequent pass-through to output prices, and ii) elevated fuel taxes by the Centre and states which has implications on core inflation too.

Monetary conditions

As the Covid-19 pandemic picked up pace in India, the RBI cut the i) repo rate by 40bps to 4.0%, and ii) reverse repo rate by 45bps to 3.35%. After May20, with high inflation and improving economic activity with easing lockdowns, no further rate cuts were announced but the RBI maintained its accommodative stance with the commitment to do so "as long as necessary to sustain growth on a durable basis and mitigate the impact of Covid-19 on the economy, while ensuring that inflation remains within the target going forward". The RBI also announced liquidity measures worth INR 13.6trn (7% of FY2019-20 GDP) including- i) long-term/ targeted-term repos (LTRO/TLTRO/TLTRO 2.0/On-Tap LTRO worth INR 2/1/0.5/1trn), ii) net Open market operations (OMO) purchases worth 1.5trn, iii) special liquidity facility for mutual funds/ refinance to NABARD, SIDBI, NHB and EXIM bank/ special liquidity scheme for NBFCs worth INR 500/750/300bn, iv) variable rate repo worth INR 2.25trn, and v) CRR cut worth INR 1.37trn (to be reversed in two phases).

In order to ensure the gradual and orderly evolution of the yield curve, after bond yields rose sharply with the higher- than-expected market borrowings in the Union Budget 2021- 22, the RBI for the first time in history committed its balance sheet for the conduct of monetary policy by announcing the Government Securities Acquisition Programme (G-SAP). This announcement assures purchase of G-securities worth INR 1 trn in 1QFY22, in addition to the exiting tolls of the RBI such as the LAF operations, OMOs, special OMOs etc.

External economy

On the external front, FY2020-21 began with: i) the INR crossing the 76/USD mark for the first time in history, ii) net cumulative Fll outflows in equity and debt, and iii) oil prices falling below the USD 20/bbl mark due to global slowdown. However by the end of FY2020-21- i) the INR recovered to around 73/USD (averaging at 74/USD in FY2020-21), ii) oil prices rose to USD 69/bbl on demand rise and continued production cut by OPEC+ (averaging at USD 45/bbl in FY2020-21), and iii) Fll equity inflows stood at USD 37.3bn while Fll debt outflows stood at USD 6.1 bn.

Indias foreign exchange reserves that stood at USD 481.1 bn in Apr20 reached a peak of USD 590.2bn by the end of Jan21 but declined to USD 579.3bn by the end of FY2020- 21 due to RBIs interventions in the foreign exchange market. India recorded a current account surplus of 1.7% of GDP till Dec20 as against a deficit of 0.9% in FY2019-20 on the back of a sharp contraction in the trade deficit. Exports and imports have contracted 7%YoY and 18%YoY respectively in FY2020-21 (preliminary) against a contraction of 5%YoY and 8%YoY respectively last year.

JM Financial Limited (the "Company") is the only entity in the Group whose equity shares are listed on the stock exchanges. In view of the above structure, the way to understand the business performance of the Company is to analyse the standalone businesses and the businesses of its Group Entities. The core business area of the Group remains financial services. According to Ind AS, considering that the views of the management have precedence over the erstwhile risks and rewards model, segments have been reported based on managements evaluation of financial information for allocating resources and assessing performance. The various businesses in the Group are divided in four reportable segments.

These are:

• Investment banking, Wealth management and Securities business (IWS): Our Group has evolved over a period of time to a leading diversified financial services firm. We have a wide range of product offerings and cater to several customer segments. We have presence across several complementary businesses. The IWS segment has been created with the objective of serving the clients in an integrated manner for our client needs. Our IWS segment includes advisory and execution services of diverse nature to corporates, institutions, governments and government owned corporations, banks, providing wealth advisory services, institutional securities business, broking services, distribution of financial products, syndication, private equity & real estate fund and providing leverage to our clients.

• Mortgage Lending: Our mortgage lending segment includes wholesale mortgage and retail mortgage as follows:

o Wholesale mortgage which includes commercial real estate lending to real estate developers.

o Retail mortgage which includes housing finance business and loan against property (LAP) and education institutions lending ("EIL").

• Distressed Credit comprises the asset reconstruction business and

• Asset management comprises mutual fund management business.

Our business segments are discussed in detail below:

Investment Banking, Wealth Management and Securities Business

Impact of Covid-19

In late 2019, Covid-19 emerged and by March 11, 2020 was declared a global pandemic by The World Health Organization.

Governments and municipalities around the world instituted measures in an effort to control the spread of Covid-19, including restrictions on international and local travel, public gatherings and participation in physical meetings, as well as closure of non-essential services, universities, schools, stores, restaurants and other key service providers, with some countries imposing strict curfews. In India, the Government of India initially announced a 21-day countrywide lockdown starting on March 25, 2020, which has been subject to successive extensions since then, particularly in Maharashtra, where we are headquartered. These measures have led to a significant decline in economic activities. Any instability or prolonged periods of unfavourable market or economic conditions as a result of the Covid-19 pandemic could lead to a significant decrease in the volume and value of our IWS products and services. In light of the ongoing impact of the outbreak of Covid-19, we will continually evaluate our strategy, with a view to growing our business as a sustainable franchise.

Investment Banking Business

Investment banking business is amongst the oldest businesses within the JM Financial group. We are a full service investment banking franchise present across products viz. equity capital markets, debt capital markets, mergers and acquisitions and private equity syndication with a strong track record of over four decades. We have deep relationships into large and emerging corporates in India and have acted as their advisors for decades. These relationships have strengthened over time and have enabled us to be the advisor of choice for managing marquee clients. Our expertise and relationships have helped us handle some of the most complex, innovative, challenging and largest transactions in India.

We shall leverage our relationships and expertise built through our investment banking platform and providing clients with products and services across other segments.

Market Environment

Primary Market

The breakup of funds raised in public markets during FY 2020-21 as compared to the FY 2019-20 is as follows:

Capital market FY 2020 - 21 FY 2019-20 FY2020-21 v/s FY2019-20
No. Rs. in Crore No. Rs. in Crore In %
Initial Public Offering ("IPO") 30 31,267 13 20,350 54%
IPO on the SME Platform 28 244 45 436 (44%)
FPO 1 15,000 - - -
SME FPO 1 28 2 35 (19%)
InvIT 1 25,215 1 2,306 993%
REIT 2 8,300 - - -
Rights Issue 20 64,256 13 55,998 15%
Qualified Institutions Placement ("QIP") 32 81,731 13 51,216 60%
Offer for Sale ("OFS") 35 28,428 26 17,326 64%
Total Equity Raised 150 2,54,469 113 1,47,667 72%
Total Debt raised through Public issue 18 10,488 35 15,146 (31 %)
Total Amount Raised 168 2,64,957 148 1,62,813 63%

Fund raising through equity capital markets in India was at record high levels with corporates raising a total of Rs.2,54,469 crore in FY 2020-21 as compared to Rs.1,47,667 crore in FY2019-20, an increase of 72% over one year. Companies and promoters have predominantly used the Rights Issue, OFS, IPO and QIP routes to raise funds.

In FY 2020-21, JM Financial successfully closed 28 deals with 10 IPOs, 2 Rights Issues, 4 OFS and block deals, 6 QIPs, 4 buybacks and 2 delisting.

FY 2020-21 saw a large number of first time issuers raising capital through IPOs. Most IPOs received overwhelming response from institutional as well as non-institutional investors, followed by stellar listings.

Mergers and Acquisition

During FY 2020-21, 466 deals were announced as compared to 589 deals in FY 2019-20. The total value of the deals announced was Rs.6.7 lakh crore for FY 2020-21 (this does not include 118 deals for which deal values were not available) as against Rs.4.7 lakh crore for FY 2019-20 (this does not include 142 deals for which deal values were not available).

Notes

1. Deals are considered based on announcement date (excluding lapsed/ withdrawn bids).

2. Deals where both target and bidder are outside India are not considered.

3. Deal values are converted from USD to INR based on the average exchange rates for FY 2019-20 and FY 2020-21 FBIL website i.e., https://fbil.ora.in/

Domestic v/s Cross-Border Activity

During FY 2020-21, domestic transactions contributed 33% to the overall M&A activity with deal value aggregating Rs.2.2 lakh crore compared to 50% in FY 2019-20 and a deal value aggregating Rs.2.3 lakh crore.

Notes

1. Deals are considered based on announcement date (excluding lapsed/ withdrawn bids).

2. Deals where both target and bidder are outside India are not considered.

3. Deal values are converted from USD to INR based on the average exchange rates for FY 2019-20 and FY 2020-21 FBIL website i.e., https://fbil.orq.in/

Private Equity

In FY 2020-21, private equity deals worth Rs.2,75,467 crore were announced compared to Rs.2,14,995 crore in FY 2019-20 (Source: JM Financial Estimates)

The sectors that experienced the maximum interest from private equity investors include IT/ITES, Telecom and Retail.

Operational Performance of Investment Banking Business

During FY 2020-21, we concluded the following equity capital market transactions:

• Book Running Lead Manager to the IPO of:

Mindspace Business Parks REIT - Rs.4,500 crore Brookfield India Real Estate Trust - Rs.3,800 crore UTI Asset Management Company - Rs.2,160 crore Burger King India -Rs.1,067 crore

Anupam Rasayan India - Rs.760 crore MTAR Technologies -Rs.696 crore Equitas Small Finance Bank - Rs.518 crore Easy Trip Planners -Rs.510 crore Mazagon Dock Shipbuilders - Rs.444 crore Stove Kraft -Rs.413 Crore

• Managers to the OFS & Block Deals in:

Bandhan Bank-Rs.10,600 crore GMM Pfaudler - Rs.1,028 crore Amber Enterprises India - Rs.600 crore Sumitomo Chemical India - Rs.757 crore

• Book Running Lead Managers to the Qualified Institutions Placement ("QIP") by:

ICICI Bank -Rs.15,000 crore

HousingDevelopmentFinanceCorp-Rs.14,000 crore

Bank of Baroda -Rs.4,500 crore

Canara Bank -Rs.2,000 crore

Amber Enterprises India - Rs.400 crore

Poly Medicure -Rs.400 crore

• Book Running Lead Managers to the Rights Issues by:

Reliance Industries - Rs.53,124 crore Shoppers Stop -Rs.300 crore

• Buyback:

Tata Consultancy Services - Rs.16,000 crore Wipro -Rs.9,500 crore NIIT Technologies - Rs.3,375 crore JK Paper -Rs.100 crore

• Delisting:

Hexaware Technologies - Rs.4,146 crore X changing Technology -Rs.94 crore

Mergers & Acquisitions and Private Equity Syndication

We are pleased to report that JM Financial has emerged as the most successful domestic investment bank in FY2020- 21, having announced 13 M&A transactions with a total deal value of Rs.43,000 crore.

(Source: Mergermarket)

JM Financial was an advisor to the following marquee transactions during FY 2020-21:

• Exclusive financial advisor to Future Group on the sale of its retail, wholesale, logistics and warehouse businesses to Reliance Retail through a composite scheme. This transaction is currently under execution;

• Financial advisor to the ongoing family arrangement involving the TVS family;

• Exclusive investment banker to Escorts on acquisition of stake by Kubota Corporation (Japan) in Escorts;

• Exclusive financial advisor to International Cargo Terminals and Infrastructure Private Limited (ICTIPL) on fund raise from Bain Capital;

• Advisory to Brookfield on acquisition of a portfolio of office and retail assets, and co-working business from RMZ Group and its promoters;

• Financial and transaction advisor to IL&FS on sale of its stake in Schoolnet India to Falafal Technologies;

• Exclusive financial advisor to L&T Finance Holdings for sale of 100% shareholding in L&T Capital Markets to NFL Wealth Group;

• Financial advisor to India Grid Trust for acquisition of Jhajjar KT Transco from Kalpataru Power Transmission and Techno Electric & Engineering Company;

• Financial advisor to India Grid Trust for acquisition of 74% of share capital of Parbati Koldam Transmission Company;

• Exclusive financial advisor and manager to the open offer to the Equity Shareholders of Healthcare Global Enterprises;

• Advisor to Fairchem Speciality on demerger of the speciality oleo chemicals and nutraceuticals business into Fairchem Organics and amalgamation of aroma chemicals business into Fairchem Speciality;

• Exclusive financial advisor in relation to the open offer to the shareholders of Accelya Solutions India by Aurora UK Bidco together with entities belonging to the Vista Equity Partners Group;

• Exclusive financial advisor to the promoters of Sunrise Foods for sale of 100% shareholding to ITC;

• Fairness opinion on the share exchange ratio relating to the amalgamation of Adani Ports and Special Economic Zone and Bramhi Tracks Management Services.

Securities Business

Our securities business includes our Institutional Equities Business which serves our institutional clients and our Equity Broking Group which serves individual and corporate clients.

Institutional Equities

Our Institutional Equities business offers broking services in both cash and derivatives segments to Indian and global institutional clientele. We strive to provide research with a focus on new stock ideas, intensive client servicing and efficient trade execution, complemented by post trade settlement.

The performance of our Institutional Equities business was primarily achieved through years of investment in the appropriate talent across sales, trading, research, operations, compliance and technology functions.

Equity markets rebounded in a very short time following a very steep fall in March 2020. Volumes increased sharply across the board and primary market activity gained significant momentum during the year. Institutional Equities business participated very strongly in this rise. This was primarily achieved through years of investment in the appropriate talent across sales, trading, research, operations, compliance and technology functions. Stable talent pool, consistent higher levels of servicing provided to its institutional clientele, strong customer focus, differentiated service offerings combined; enhanced the Firms rankings amongst many of its top tier institutional customers.

Judicious investments in fixed assets and regular enhancements of technology platforms across the value chain, enabled the firms institutional clientele to receive best in class service.

Yields continued to trend lower - a function of a) the highly competitive nature of institutional equities business and b) global active asset managers consistently losing assets under management to passive asset managers, profitability was enhanced due to judicious management of costs and extracting better operating leverage out of the talent pool and its technology platforms.

Despite the impact of the lockdowns and restricted movements in the early part of the year, technology helped the team to work seamlessly and efficiently even from home. With tremendous human spirit and a DNA of teamwork; entire teams across functional areas in institutional equities business, quickly reworked every aspect of their work- flows, created parallel pods, set-up communication lines, accelerated the use of technology in their day-to-day functional areas so that 90% of the staff could yet operate from home; with only the essential sales trading and execution personnel needing to physically attend the work places.

It is heartening to mention that all the efforts resulted in the business operating (anecdotally) at near 100% productivity as compared to the normal. It is further important to mention that the institutional equities group stood up to the occasion with its single-minded purpose "being there and available" for the Firms customers, and ensuring they get all the assistance and service required in unprecedented times like these.

We expect the robustness in the equities market to continue and believe that domestic institutions which were seeing outflows will reverse in FY22. We are already seeing signs of that happening. The Fll inflows are expected to continue strongly in FY22.

Equity Broking Group

We offer research based equity advisory and trading services to high net-worth individuals, corporate and retail clients. The Equity Broking Group has its presence in more than 170 cities in India through network of branches and franchisees. The combination of branches and franchisee has helped us in achieving a de-risked business model and a wide spread presence.

We will continue to focus on strengthening our branch and franchisee network. The Firm has made a few hires and is focused on expanding its presence. An enhanced franchise team has resulted in acquisition of new franchises despite lockdown arising out of Covid-19 pandemic.

We have made hires to strengthen our product and investment counselor team for in-house and third party investment products through our broking channel.

The comparative details of average daily turnover in the Cash and Derivative segments of BSE and NSE are given below:

Rs. in Crore
Average Daily Volume FY 2020-21 FY 2019-20
Cash Market 70,695 41,675
Derivative 27,25,616 13,99,415
Total 27,96,311 14,41,090

During FY 2020-21, our average daily volume stood at Rs.12,287 crore compared to Rs.11,669 crore for FY 2019-20.

Wealth Management

The Wealth Management Group has been divided into two (1) Elite Wealth Management Group (2) Private Wealth Management Group respectively. We have separate teams to service both the category of clients.

The ‘Elite Wealth Management division focuses on clients with net worth in the range of Rs.1 crore to Rs.100 crore and is present in seven cities. We have a team of 61 wealth relationship managers as of March 31,2021. It caters to retired people looking for regular income and wealth preservation, first gen entrepreneurs who are looking to create alpha over their investments, top executives in corporates, millennial on their journey to create wealth, tech savvy professionals.

Our endeavour is to be the second RM to our clients next only to banks when it comes to their personal finances. Focus will be to cater to all investments and insurance related needs, including exotic product variants across various asset classes through an open architecture model.

We intend to provide robust online platform for client on- boarding, execution of transactions and to have unified view of all their investments with us. We have on boarded 1,400 clients with Rs.549 crore of AUM* in the first full year of operation.

Private Wealth Management Group is an arm exclusively focusing on Ultra HNI families, Corporates & Institutions. It is positioned as a third party advisory house with an open architecture with regards to products, manufacturers & ideas. At JM Financial, "IWS" group has been formed wherein Investment banking, Wealth management and Institutional Equities Securities groups have been working on an integrated basis to meet client needs seamlessly. The group has a team of 47 wealth advisors, focused to meet client requirements by providing them unbiased investment solutions.

During the year, our Assets under Management (the "AUM") * grew by 31.6% from 44,883 crore as on March 31, 2020 to 59,052 crore as on March 31, 2021.

Distribution of Financial Products

With a strong network of over 11,000 active Independent Financial Distributors (IFDs), our Independent Financial Distribution Group (IFDG) distributes various financial products such as mutual funds, fixed deposits, Public Issue of Equity and NCDs, Sovereign Gold Bonds (SGBs) to retail and high net worth customers across the country.

In FY 2020-21, we strengthened our digital presence with substantial growth in our online accounts for paperless transactions in Mutual Funds, Fixed Deposits and Public issues. 75% of our transactions were done without physical movement of paper in FY 2020-21 by using either our own transaction platform or using transaction platform of the issuers. We also helped in participation of Retail & HNI investors in Secondary Debt Market using Exchange Platforms in paperless process.

The AUM* of our Independent Financial Distribution (IFD) business stood at ^16,171 crore as on March 31, 2021 as compared to Rs.13,437 crore as on March 31, 2020. We added over 1,200 new partners with majority of them being qualified professionals like CAs and senior Bankers.

Leverage Products

Our portfolio under this segment can be broadly classified into the following: (i) capital markets lending; (ii) corporate lending;(iii) wholesale mortgage (overflow) lending; and (iv) others (such as providing loan against property to our wealth and equity broking clients, purchase pool of assets and retail mortgage lending).

Capital Markets lending

Our capital markets lending caters largely to our wealth and broking clients. Capital market steady state lending includes financing in the area of loan against shares, margin funding, ESOP financing, loan against bonds/mutual funds and sponsored financing. In H1 FY 2020-21, NBFCs got impacted on account of tight liquidity conditions, high cost of borrowing and volatility in the capital markets especially in the first quarter due to Covid-19 pandemic. This resulted in subdued growth in capital market lending business throughout H1 FY 2020-21. However, there was marginal improvement in H2FY2020-21 on the back of improving economic activities and reduction in Covid-19 cases in the country. The evolving economic environment due to the second wave of Covid-19 pandemic and the liquidity scenario is expected to have an impact on capital market lending business going forward.

The capital market loan book for March 31, 2021 stood at Rs.735 crore as compared to Rs.465 crore as at March 31,2020.

Corporate Lending

Our corporate lending business provides customized financing solutions under the following broad categories:

Structured Lending: We offer comprehensive financing solutions to operating businesses to refinance existing debt, top-up working capital funding, general corporate purposes and for funding growth capital expenditure. We offer efficient financing structures to companies for short tenures structured as a bridge to IPO or private equity infusion; alternately, structured debt financing can be a medium-term solution for such companies to raise capital without equity dilution.

Promoter Financing: We offer financing to promoter holding companies against listed securities or mortgage of properties to meet their strategic requirements, such as equity funding for acquisitions or capital expenditure, increase of shareholding in group companies, investments, buying out of private equity investors and promoter debt refinancing.

Acquisition Financing: We offer rupee funding solutions to companies acquiring domestic assets, where banks are restricted by regulation from providing financing for the equity investment.

Mezzanine Financing: We also offer subordinated debt or preferred equity instruments that represent a claim on a companys assets.

Financial Institutions Funding: We have selectively partnered with financial institutions which have domain expertise by providing them the loans.

We also provide wholesale mortgage lending solutions in partnership with our fellow subsidiary.

The Corporate loan book as at March 31,2021 stood at Rs.2,101 crore. Given the uncertain recovery prospects of corporate clients across sectors on account of Covid-19, new business had been muted during most part of the year.

During FY 2020-21, the Group focused on profitable short-term transactions and deployed capital to support franchise clients in addition to focused efforts for de-risking the portfolio.

The year 2020-21 was marked by a cautious sentiment towards lending and rigorous credit monitoring which has helped helped to maintain the portfolio quality.

Going forward, we seek to drive the business through sustained engagement with clients, identifying the shortterm financing requirements of our franchise clients and other credit-worthy corporates even as challenges of Covid-19 continue to impact the financial services sector. We expect that such opportunities will continue in the next few quarters and we particularly stand to benefit given our overall low leverage and strong balance sheet position.

Real Estate Consultancy Services (Dwello)

Dwello is a technology based real estate consulting division that operates within the primary residential real estate space. We enable the team of professionals and trained consultants, through our cutting edge technology and analytics, to assist customers in making right decisions at every step from initiation to completion of their home buying journey.

Our scientific approach towards helping the customers in their home buying decision is making Dwello a popular choice among them.

We have also initiated the mandate model within Dwello which takes sole selling rights for the selected few projects. These projects are vetted thoroughly by our experts to evaluate their saleability and marketability. Through this vertical, we aim to serve developers who look for high volume sales and benefit from Dwellos expertise in sales and marketing of residential real estate.

After expanding our reach to almost all the micro-markets in Mumbai and Pune, we are serving the different stakeholders of the real estate market through different models. While our consulting model is oriented towards fulfilling the requirements of the customers, the mandate model is focused on taking over the sales of the projects with good proposition for the buyers. Both the models share our customer centric approach. While we increase efficiency in the consulting model, our mandate model will bring in the next wave of growth.

Private Equity Fund Management Private Equity Fund Market Environment

In FY 2020-21, as per the JM financial estimate, the Private Equity (PE) investments were Rs.2,75,467 crore (844 deals) as compared to Rs.2,14,995 crore (751 deals) during FY 2019-20.

Year Private Equity Investment (Rs. in Crore) Number Of Deals Average Deal Size (Rs. in Crore) Top Sectors where PE investments were made
FY2020-21 2,75,467 844 404 IT/ITES, Telecom and Retail
FY2019-20 2,14,995 751 286 IT/ITES, Infrastructure and Financial Services

IT/ITES accounted for 29% of the total PE investments in FY 2020-21. Other sectors which witnessed high activity in terms of deal value were Telecom and Retail accounting for 27% and 17% respectively of the total PE investments.

Total PE exits were Rs.44,743 crore (123 deals) in FY 2020- 21 as compared to Rs.62,355 crore (95 deals) in FY 2019-20. Strategic and PE to PE transactions for unlisted companies, and secondary market transactions for listed companies were the preferred exit routes for PE Investors.

Operational Performance

JM Financial India Fund II ("Fund II") is a 2019 vintage (i.e., Final Close) private equity fund established as a trust under the Indian Trust Act, 1882 and registered with the Securities and Exchange Board of India (the "SEBI") under the SEBI (Alternative Investment Funds) Regulations 2012, as a Category II AIF.

Similar to the first Fund, Fund II is an India focused sector- agnostic private equity fund. Its primary objective is to achieve superior risk adjusted returns, by investing growth capital in dynamic and fast growing, small to mid-market Indian companies. We believe that the small to mid-market opportunity is relatively less crowded, allowing for attractive investment opportunities in early stage companies that are in their first phase of expansion. Key sectors of interest include Financial Services, Consumer, Infrastructure Services, IT/ ITeS and Manufacturing among others. As of date, Fund II has completed seven investments and is actively evaluating new investment opportunities. In addition, Fund II has completed a partial divestment from one of its portfolio companies.

JM Financial India Fund (the "Fund") is a 2006 vintage (i.e. Final Close) India focused private equity fund, focused on providing growth capital to dynamic, fast growing companies in India. The Fund raised capital of Rs.952 crore through its domestic and offshore schemes and invested the corpus in thirteen companies across various sectors. The Fund has successfully exited from all of its portfolio companies (including one partial exit) and is operationally wound up.

Real Estate Fund

JM Financial Property Fund (the "Property Fund") is a real estate focused private equity fund that has invested in residential, hospitality and mixed use development assets at individual project or at holding level in development companies. The Property Fund through its domestic and offshore schemes had raised total capital contribution of Rs.401 crore, which is fully invested. The Property Fund has Assets under Management (the "AUM") of Rs.155 crore as of March 31, 2021. The Property Fund continues to focus on exploring exit opportunities for its outstanding portfolio investments. During the year, the Domestic scheme of the Property Fund has received consent from its investors to extend the tenure by another 2 years till March 04, 2023.

Our Private Equity and Real Estate fund business may face challenges in terms of our ability to raise funds and being able to exit portfolio companies at desired valuations. Further, our portfolio investments are subject to business specific and macro-economic threats.

Investment Grade Debt Trading and syndication

• Growth is gradually recovering from the slowdown, but it remains uneven across countries and is supported by ongoing vaccination drives, sustained accommodative monetary policies and further sizeable fiscal stimulus. World output is projected by the Organisation for Economic Co-operation and Development (OECD) to reach its pre-pandemic level by mid-2021, though it will be largely contingent on the pace of vaccine distribution and its efficacy against emerging variants of the virus. Stronger external demand should support Indias exports and investment demand.

• Headline inflation, after moderating close to the target rate in January 2021, firmed up to 5.0 per cent in February 2021, primarily due to an adverse base effect. Looking ahead, the evolving CPI inflation trajectory is likely to be subjected to both upside and downside pressures.

• Despite the recommencement of 14-day variable rate reverse repo (VRRR) auctions since January 15, 2021, liquidity absorbed through the fixed rate reverse repo has steadily increased from a fortnightly average of ?4.3 lakh crore during January 16-29 to ?4.9 lakh crore during January 30-March 31, 2021.

• The benchmark 10-year yield, which traded at 5.93 per cent (on an average) during April 2020-January 2021, spiked to 6.25 per cent on March 10, 2021 before coming down again. In sync with G-secyields, corporate bond yields also hardened across issuers and rating categories in the recent period.

• Since end-January 2021, AAA corporate bond yields of 3-year and 5-year maturities have firmed up by 30 bps and 31 bps, respectively, by March 31, 2021. Reflecting these developments, corporate bond issuance in February at ?45,685 crore has moderated from its peak of ?88,130 crore recorded in December 2020.

• The Reserve Bank scaled up its open market operations (OMOs) in February and conducted five special OMOs (operation twists) in February and March; increased the amount for the operation twist (OT) auction on March 4, 2021 from ?10,000 crore to ?15,000 crore; and adopted an innovative asymmetrical special OMO (purchase of ?20,000 crore and sale of ?15,000 crore) on March 10, 2021 to reinforce the compression of term premia as well as to inject liquidity which drew a favourable market response.

The Institutional Fixed Income Division (IFID) started operations actively in the second half of FY2019-20 with focus on raising debt resources for corporate clients, investment advisory and active dealing in corporate bonds. In its first full year of operations, the key developments for the desk along with focus areas are as follows:

1. Public Issues of NCDs: In the public issue space, the team worked extensively in higher-rated corporates across both the private and public sector. The desk ranks 2nd for the FY20-21 in the Prime Database League Table. The total volume of issuances managed by the desk in the public issue space was ~ Rs.6,700 crore and achieved a market share of 64%.

2. Private Placement: In the private placement space, the team worked extensively in top rated corporates, thereby improving its league table ranking to 11th on the table for the FY 20-21. The desk arranged ~ Rs.1,02,925 crore in the private placement space across 52 issuances with a market share of -17%.

3. Sales and Distribution: The IFID desk continued empanelment across a marquee list of investors and on boarded many investors across categories. The desk actively traded and acted as a market maker in corporate bonds. The year saw OTC trade volume of - Rs.23,000 crore with - 490 counterparties and exchange traded volume stood at ~ Rs.150 crore. The credit team provides credit views and monitoring of the credits that the team offers to the markets both from DCM and Sales perspective.

4. Market Making: Additionally, the desk continued market making as an authorized market maker for the PSU Bond ETF, ‘Bharat Bond ETF managed by Edelweiss AMC. IFID provided two way quotes for both 3Y and 10Y ETFs on the exchange. Also, the AMC had launched two more ETFs during the year for 5Y and 11Y maturities. IFID has also been authorized as a market maker for SBI MF for its 10 year gilts scheme and in NIPPON INDIA ETF NIFTYCPSE BD PLUS SDL wherein it has been actively providing buy and sell quotes on the exchange. The year saw trade volumes of ~ Rs.2,400 crore in ETF (market making) with - Rs.1,000 crore on the OTC platform and - Rs.1,400 crore on the exchange.

International Operations

We have established subsidiaries/step down subsidiaries in Mauritius, Singapore and USA to cater to and service overseas clients/investors and to carry out permitted business activities in these jurisdictions. We have a representative office in Dubai.

Our IWS segment is subject to threats which include

• Short term and long term impact of Covid-19 on the entire business segment

• macro-economic factors such as abnormal monsoon, geopolitical tensions, global economic threats impacting the business, economic situation, liquidity situation in the market, cost effective availability of funding and capital market environment

• business specific threats such as increased intensity of competition from players across the industry creating downward pressure on yields fees, commissions and brokerages, regulatory challenges, technology innovations, amongst others

• Real estate sector has been experiencing flux of policy implementations which affect the home buying behaviour directly. Any new complex policy implementation like introduction of RERA, GST changes, etc. makes a lot of home buyers hold their decisions until the period of uncertainty settles down. This creates fluctuations in the business cycles for the players in the consulting space.

Financial Performance of IWS Segment

Rs. in Crore
Particulars FY 2020-21 FY 2019-20
Gross Income 1,566.77 1,611.52
Profit before tax 445.76 434.60
Profit after tax before non-controlling interest 331.90 312.30
Profit after tax after non-controlling interest 331.08 311.26
Segment Capital Employed 3,042.15 2,694.43

Mortgage Lending

Impact of Covid-19

The uncertainties of the Covid-19 pandemic shall impact the mortgage lending business. The impact shall be on account of several factors including lack of site visits delaying sales of projects, delays in new project roll outs due to uncertainties in end user demand and in the credit environment, collections, movement of people and minimum staff, progress on construction sites getting impacted due to lack of availability of labour, slowdown in economic activities, valuation of collateral, potential impact on asset quality and moratoriums to be provided, delay in commercial leasing decisions, impact on retail businesses, income and cash flows, reduced fee collections for the schools, moratorium being offered. In light of the ongoing impact of the outbreak of Covid-19, we will continually evaluate our strategy, with a view to growing our business as a sustainable franchise.

The mortgage lending business is divided into two parts (i) Wholesale Mortgage Business (ii) Retail Mortgage Business

Wholesale Mortgage Lending

The Wholesale Mortgage Lending business is focused on offering a solution based approach to the clients in the real estate sector by catering to their various financing requirements and by keeping in mind the typical nature of the industry. We consider our clients as partners and aspire to have significant mind share of our clients when it comes to financing requirements/solutions.

• Project Loans: Our wholesale mortgage financing business is primarily focused on providing project specific funding for ongoing residential and commercial projects which have received key regulatory approvals.

• Loans against Land: We offer loans to customers for land acquisition or against land parcels to be used for projects that are not expected to be launched in the near-term. At the time of funding, these land parcels do not have any relevant approvals and the loan repayment is based on the borrower-groups cash flows.

• Projects at Early Stage Loan: This is offered for projects that are expected to be launched in the near- term. These projects are typically in the approval stage and may be raising funds for development and/or for seeking relevant approvals. These loans are typically advanced in part as a portion of a refinancing of existing loans and in part, as project related funding. Repayment of the loan is expected from project cash flows that will accrue during the loan tenure.

• Loan against Property: These loans are advanced against fully constructed residential and/ or commercial units that have been granted an occupation certificate. Repayment of the loan is expected from sale of the units.

• Loan against Securities: Clients may be granted these loan against a pledge of listed/unlisted securities of their companies to bridge the gap in the event the inventory of the developer is not being sold as expected, thereby offering cash flow to the developer until completion of the project. These loans are advanced to select borrower-groups with strong credit history in few cities. These loans are mainly provided for funding the clients group activities and repayment of existing loans (secured and unsecured).

As on March 31, 2021, the total loan book for wholesale mortgage lending stood at Rs.7,158 crore as compared to Rs.8,052 crore as on March 31, 2020. The financial year saw the sector dealing with the challenges faced due to the ongoing Covid-19 crisis, as during almost half the financial year most geographies were going through a lockdown due to which sales and construction activity was affected. Also, the sector was majorly affected due to labour migration and non-availability of skilled and unskilled labourers to complete construction activities. However, there were also a lot of incentives announced by the central government and some state governments to revive the sector and boost demand. Due to this and also the availability of home loans at attractive rates the last two quarters saw massive increase in sales volumes across all geographies in which we are present. This increase in sales numbers was also more prominent with reputed builders and brands showing a trend of consolidation.

Our ability to continue our disbursements post the IL&FS crisis, unlike most peers, has clearly set projects funded by us apart from most others as rapid pace of construction instils confidence in the end users. Our view is that residential real estate will continue to show robust sales and the end user demand will be strong in the coming quarters. We have also observed the gap between demand and supply situation narrowing in most geographies as absorption has been higher than supply for the last few years. This trend has led to new acquisitions by developers and we should see more new launches in the near future.

As we step into the financial year 2020-21, we believe that we will have to be aware of the second wave of Covid-19 and the impact that it can have on the sector. However, we will continue looking for opportunities to lend, as we feel that we are at the bottom of the real estate cycle and will find good credits to underwrite.

Retail Mortgage Lending

Housing Finance Business and loan against property

Our housing finance business commenced operations in 2017 in order to expand groups presence in retail mortgage space with a focus on affordable housing finance. JM Financial Home Loans Limited (the "JMFHLL"), the groups housing finance entity, in its short history, has shown resilience and a tenacity to grow despite an unconducive operating environment. JMFHLL has steadily expanded its operations to 30 locations across eight states in the country. It has consistently grown its loan book while maintaining a healthy yield and below industry average GNPA.

FY 2020-21 was an unprecedented year for all the businesses. India went into one of the strictest lockdown globally in response to Covid-19. Impact of such a widespread and elongated lockdown on the economy was expectedly severe as India went into the recession in 1HFY2020-21. The rub off effect of such a large dislocation in the economy on housing finance was likely to be three fold - a) lower demand as customers push out their home purchase decisions; and b) higher delinquencies due to job losses; c) further deterioration of liquidity conditions. However, pro-active measures from government and RBI were able to significantly mitigate the tail risks of the lockdown on the sector. On one hand, price correction of houses, decade low home loan interest and stamp duty reduction in state such as Maharashtra were able to spur housing demand. On the other hand, moratorium on loan instalment and emergency credit guarantee scheme have avoided widespread defaults. Further, RBI injected adequate liquidity in the banking system to kick-start credit flow. Above measures allowed housing finance sector to tide over the crisis relatively unscathed. Collection efficiencies have improved significantly from May-lows for most players.

JMFHLL, owing to its presence largely in tier-2/3 towns, has been able to recover faster. JMFHLL exited FY2020-21 with best ever quarterly disbursements in Q4FY2020-21. More importantly, it has achieved collection efficiency of c.99% which underscores its strong underwriting standards. We believe healthy liquidity position within the group, strong focus on asset quality and focus on affordable housing will make the JMFHLL emerge stronger from the crisis. During FY2020-21, JMFHLL raised equity funds aggregating Rs.50 crore from JM Financial Credit Solutions Limited.

Education Institution Loans

India continues to see improvement in the education space underpinned by a desire to educate the next generation, complemented by rising disposable income and spurred on by governments sustained effort towards improving enrolment at the pre-primary and primary school levels. With aspiring parents willing to pay for better education outcomes and all around child development, private school have greater impetus to invest in developing better school infrastructure and facilities in urban, semi-urban and rural centres alike. Greater enrolment in private schools at the pre-primary and primary school level and movement of students from public to private schools at the secondary and higher secondary levels are driving the growth of private schooling in India. A sustained growth in central and international board affiliated schools is also leading to greater deployment of capital for school infrastructure development.

JMFHLLs focus on building a high quality diversified K 12 education institution loans portfolio continues through acquisition of school clients across urban, semi-urban and rural centres across state and national boards. We continue to closely monitor the situation unfolding in the second wave of Covid-19 and its impact on the opening/re-opening of schools and education institutions.

Our mortgage lending segment is subject to threats which include:

• Short term and long term impact of Covid-19 on the entire business segment;

• Impact of Covid-19 on the reopening of schools and education institutions;

• macro-economic factors such as abnormal monsoon, geopolitical tensions, global economic threats impacting the business, economic situation, liquidity situation in the market, cost effective availability of funding;

• business specific threats such as increased intensity of competition from players across the industry creating downward pressure on yields fees, commissions and brokerages, regulatory challenges, technology innovations, amongst others; and

• Regulatory changes and adverse sector changes including slowdown in the real estate sector and housing.

Financial performance of Mortgage Lending Segment

Rs. in Crore
Particulars FY 2020-21 FY 2019-20
Gross Income 1,217.72 1,350.85
Profit before tax 477.50 533.01
Profit after tax before non-controlling interest 356.27 381.21
Profit after tax after non-controlling interest 164.80 178.62
Segment Capital Employed 3,787.86 3,431.82

Distressed Credit Business

Impact of Covid-19

For the distressed credit business, Covid-19 impact on operating units under restructuring may be due to reasons including temporary closure of plants, additional burden of fixed costs during the lockdown period, cancellation of existing orders, low off take, etc. The lockdown has also impacted resolution of assets. Due to the overall economic slowdown, there are uncertainties and volatility impacting the credit markets and more so short term liquidity. Covid-19 is also expected to impact the valuations across most sectors. The delay in the cash flow of the underlying companies shall impact the cash flows of the distressed credit business. In light of the ongoing impact of the outbreak of Covid-19, we will continually evaluate our strategy, with a view to growing our business as a sustainable franchise.

Our distressed credit business includes asset reconstruction business.

During the financial year 2020-21, while recognizing the role of Asset Reconstruction Companies (the "ARCs") in the financial sector ecosystem and enable development of this sector, RBI has constituted a Committee to undertake a comprehensive review of the working of ARCs and recommend suitable measures for enabling ARCs to meet the growing requirements of the financial sector. Further, RBI notified Category I Alternative Investment Funds (AIFs) set up as trust and registered with SEBI as "Qualified Buyers" under the SARFAESI Act, 2002 subject to certain conditions to facilitate more investor participation in Security Receipts issued by ARCs.

In order to achieve efficacious and expeditious completion of liquidation process under the Insolvency and Bankruptcy Code, 2016 (IBC), the Central Government brought changes to enable (a) assignment by a creditor of its claims/interest during liquidation process; (ii) disposal/assignment of non- readily realisable/illiquid assets. Accordingly, an assignee of a creditors claim can be treated as a creditor during liquidation. Further, the amendment also stipulated that a liquidator may assign or transfer ‘Not Readily Realisable Asset (NRRA) through a transparent process, in consultation with the stakeholders consultation committee. NRRA inter-alia, include contingent or disputed assets and assets underlying proceedings for preferential, undervalued, extortionate credit and fraudulent transactions. The above amendments in the regulations will help lenders to speed up recovery process and also enable them to exit by assigning their exposure.

The Central Government has introduced regulations for prepackaged insolvency resolution process for MSME sector. The regulations are aimed to achieve a cost effective resolution frame work for MSMEs, where resolution of insolvency can also be achieved in a much shorter timeframe. The prepackaged insolvency resolution process is also expected to be extended to all other companies in time, which will help lenders in early restructuring of the distressed units.

The Courts pronounced rulings settling various contentious issues. Honble Supreme Court has ruled that the promoter, if ineligible under Section 29A of IBC cannot make an application for Compromise & Arrangement under Section 230 of the Companies Act, 2013 in respect of a corporate debtor which is undergoing liquidation under IBC. The Apex Court also ruled that entry in balance sheet will amount to acknowledgement of debt and applications filed for admitting a corporate debtor to CIRP under IBC, if supported by balance sheet acknowledgment, shall be within the limitation period.

FY 2020-21 was a challenging year for the asset reconstruction business for several reasons. Despite the headwinds due to Covid-19, we achieved good results with total recovery of Rs.1,192 crore aided by implementation of approved resolution plans by NCLT, successful sale of assets under SARFAESI and settlements.

As the NCLTs/Courts opened gradually and started hearing matters virtually and later physically, the resolutions through legal means started gaining momentum in Q2 FY21 as evidenced by approval of resolution plans and implementation thereof. What gave us immense satisfaction during the year was that in seven cases, Resolution Plan was approved by NCLT during the year. Besides, in four cases

Resolution Plan recommended by Committee of Creditors is pending for approval by NCLT. This has been our contribution towards reconstruction of distressed units so that these can start contributing optimally to economy of the country and save/generate employment.

JM Financial Asset Reconstruction Company Limited (the "JMFARC") is presently focused on profitability over growth and is being prudently managing its ALM by pre-paying external liabilities and deleveraging the balance sheet. During the year, JMFARC has been able to prepay/buyback some of its long-term external debts maturing in FY22. Further, it has also been able to raise long term debt (including additional Bank lines) in Q4 FY21.

Beginning the fourth quarter, we restarted evaluating few accounts for acquisition purposes.

Till March 31, 2021, we have acquired total outstanding dues of Rs.61,666 crore at a gross consideration of Rs.17,427 crore. Security Receipts worth Rs.769 crore were redeemed during the year. The outstanding Security Receipts stood atRs.11,060 crore as on March 31, 2021. The contribution outstanding of JMFARC stood at Rs.3,193 crore as on March 31, 2021. JMFARC had also made aggregate cash investment till date of Rs.5,082 crore, and achieved total recovery of Rs.9,739 crore till date.

Looking ahead, as JMFARCs business forte comes from their professionally managed team, high capital base and tailor-made acquisition and resolution strategies, we would continue to evaluate the right acquisition opportunities and gradually grow our book. We will also continue to focus on cash investments in a co-investment model with funds and work with strategic and financial advisors on selected deals.

Our distressed credit segment is subject to threats which include:

• short term and long term impact of Covid-19 on the entire business segment

• macro-economic factors such as abnormal monsoon, geopolitical tensions, global economic threats impacting the business, economic situation, liquidity situation in the market, cost effective availability of funding

• business specific threats such as increased intensity of competition from players across the industry creating downward pressure on yields, fees, amongst others

• regulatory changes, delays and adverse sector changes affecting the acquisition and resolution of assets

Financial performance of Distressed Credit Business

Rs. in Crore
Particulars FY 2020-21 FY 2019-20
Gross Income 384.60 413.50
Profit before tax 90.67 85.58
Profit after tax before non-controlling interest 70.83 52.49
Profit after tax after non-controlling interest 44.10 29.85
Segment Capital Employed* 1,631.69 1,601.29

* Includes non-controlling interest of Security receipts holders under distressed credit business

Asset Management

Impact of Covid-19

The Covid-19 pandemic and the resultant lock downs have impacted and are likely to further impact our asset management business due to a variety of factors including global slowdown, uncertainties in macro-economic and credit market environment, restriction in the movement of people, distribution activities, volatility and uncertainties impacting the financial and capital markets, uncertainties in business growth, valuation mismatches, underperformance of mutual fund schemes affecting investor sentiment and risk appetite, rating downgrade of companies, defaults by corporates, redemption pressures and flow of funds to mutual funds. In light of the ongoing impact of the outbreak of Covid-19, we will continually evaluate our strategy, with a view to growing our business as a sustainable franchise.

Under our asset management business, we offer a wide range of investment options that cover the entire risk spectrum, catering to the diverse needs of the Institutional and the Non- institutional Investors. The average assets under management (AAUM) of JM Financial Mutual Fund for FY 2020-21 were at around Rs.3,585 crore with Equity AAUM around Rs.819 crore and Debt AAUM around Rs.2,766 crore. In Alternate Investment Fund vertical, our maiden fund JM Financial Yield Enhancer (Distressed Opportunity) Fund I which has mandate to invest in distressed space declared final close in the month of March 2021 with commitments aggregating ~ Rs.146 crore.

As Covid-19 pandemic engulfed the entire world, there was high volatility and wild swings in the stock markets in FY2020 - 21. The AUM of the mutual fund industry stood at around Rs.31.4 trillion as on March 31, 2021. Overall, there were net outflows in the Growth / Equity oriented funds in FY2020-21. For consecutive eight months from Jul-20 and Feb-21, there were net outflows from equity funds as investors looked to book profits on worries of higher market valuations. However, equity mutual funds witnessed a net inflow in the last month of FY i.e. March, 2021 amid a correction in the stock market. The equity fund contribution has come predominantly from capital appreciation as the broader indices such as S&P BSE Sensex and Nifty 50 gained around 70% during FY2020-21. Money market and Debt funds saw good inflows in FY2020- 21 in search of better yields as the infusion of liquidity in the wake of the pandemic had led to a sharp decline in term rates in the economy. However, March 2021 saw outflows in the above category due to financial year end on account of advanced tax & GST payments by Institutional investors. The contributions through Systematic Investment Plans (SIPs) continued to remain strong. Industry initiatives such as customer education, "Mutual Fund Sahi Hai" campaign by AMFI, ease of investing through digitization boosted the MF Industrys Assets.

Our asset management business is subject to threats which include:

• Short term and long term impact of Covid-19 on the entire business segment

• macro-economic factors such as abnormal monsoon, geopolitical tensions, global economic threats impacting the business, economic situation, liquidity situation in the market

• business specific threats such as increased competition affecting market share and fees, higher commissions to distributors, regulatory changes, threats from exchange traded funds, and passive funds and redemption pressures.

Financial performance of Asset Management Business

Rs. in Crore
Particulars FY 2020-21 FY 2019-20
Gross Income 31.33 62.88
Profit/(loss) before tax (3.54) 22.49
Profit/(loss) after tax before non-con- trolling interest* (0.20) 16.99
Profit after tax after non-controlling interest* 0.79 10.28
Segment Capital Employed 231.35 231.39

* Includes Profits from Associate

Analysis of Financial Performance

Consolidated Financial Performance

The consolidated gross income of the Company stood at Rs.3,226.63 crore as against Rs.3,453.55 crore in the previous year. Profit before depreciation and amortisation expense, finance cost and tax expense during the year stood at Rs.2,217.47 crore as against Rs.2,520.42 crore, in the previous year. The Profit before and after tax stood at Rs.1,066.85 crore and Rs.590.14 crore respectively as against the Rs.1,093.52 crore and Rs.544.98 crore in the previous year.

The profit in the current year increased to Rs.590.14 crore as against Rs.544.98 crore in the previous year primarily due to increase in the performance of Investment Banking, Wealth Management & Securities Business (IWS) and treasury operations during the year. Also, the outbreak of Covid-19 pandemic across the globe and in India contributed to a significant decline and volatility in the global and Indian financial markets and slowdown in the economic activities. The management estimated the impact of pandemic on impairment provision on financial assets carried at amortised cost and fair valuation of certain financial assets at fair value. Accordingly, the statement of profit and loss for the year ended March 31,2021 includes incremental gross impairment provision of Rs.207.55 crore, on account of the pandemic. The adjusted profit after tax (Pre Covid-19 impact) for the current year would have been Rs.688.64 crore.

The following table describes consolidated income during the year:

Rs. in Crore
Particulars For the Year ended
March 31, 2021 March 31, 2020
Interest Income 1,908.54 2,281.27
Fees and Commission Income 628.53 646.26
Brokerage Income 256.61 202.70
Net gain on fair value changes 311.91 175.53
Net gain on derecognition of financial instruments carried at amortised cost 6.60 18.02
Other Operating Income 85.28 108.25
Other Income 29.16 21.52
Total 3,226.63 3,453.55

Interest Income

Interest Income from lending activities continued to be a major contributor to the gross revenue at Rs.1,908.54 crore as against Rs.2,281.27 crore during the previous year, constituting around 59.15% of the total revenue. Decrease in interest income is due to decrease in average loan book during the year.

Fees and Commission Income

Fees and commission earned during the year were Rs.628.53 crore as against Rs.646.26 crore during the previous year, constituting 19.48% of the total revenue. The decrease is primarily on account of decline in management fees from asset management business due to reduction in AAUM to Rs.3,585 crore in the current year from Rs.6,495 crore in the previous year. The decrease is partially offset by increase in fee income on account of increase in deal closures in investment banking during the year.

Brokerage Income

Brokerage income earned during the year was Rs.256.61 crore as against Rs.202.70 crore during the previous year, constituting around 7.95% of the total revenue. The increase in brokerage income is on account of increase in average daily turnover and block deals during the year.

Net gain on fair value changes

Net gain on fair value changes stood at Rs.311.91 crore as against Rs.175.53 crore during the previous year, constituting around 9.67% of the total revenue. This is primarily due to mark- to-market changes on account of fair value of investments in equity shares, bonds, mutual funds, security receipts and financial assets under distressed credit business during the year. The increase is primarily on account of fair value gains on equity shares and bond trading during the year.

Net gain on de-recognition of financial instruments carried at amortised cost

Net gain on de-recognition of financial assets carried at amortised cost were Rs.6.60 crore as against Rs.18.02 crore during the previous year, constituting 0.20% of the total revenue. This is primarily due to profit on de-recognition of a loan or a borrowing, which were carried at amortised cost during the year.

Other operating income and other income comprising revenue from treasury operations and other activities were Rs.114.44 crore as against Rs.129.77 crore during the previous year, constituting around 3.55% of the total revenue.

The following table describes consolidated expenditure during the year:

Rs. in Crore
Particulars For the Year ended
March 31, March 31,
2021 2020
Finance costs 1,110.87 1,385.86
Impairment on Financial Instruments 256.76 233.72
Employee Benefits Expense 440.83 391.41
Depreciation and amortisation expense 39.75 41.04
Other expenses 311.57 304.00
Total 2,159.78 2,360.03

Finance Cost

The decrease in finance cost from Rs.1,385.86 crore in the previous year to Rs.1,110.87 crore in the current year is on account of decrease in the average borrowings during the year.

Impairment on Financial Instruments

Impairment on Financial Instruments stood at Rs.256.76 crore as against Rs.233.72 crore during the previous year. This is on account of provisioning based on expected credit loss model on the loans and trade receivables. The increase is primarily on account of additional provisioning due to uncertainties in the macro economic environment, impact of Covid-19 and due to increase in Stage 2 and Stage 3 assets as compared to previous year.

Employee Benefits Expense

The increase in employee cost by about 11.49% is mainly on account of increase in annual performance linked bonus of the employees in the current year as compared to previous year.

Depreciation and Amortisation Expenses

The decrease in depreciation and amortisation expenses by about 3.14% is on account of lower capital expenditure during the year.

Other Expenses

Other expenses comprise sub-brokerage, fees and commission and administrative costs. The sub-brokerage, fees and commission mainly relates to secondary market and distribution business. These expenses increased by 43.94% in the current year because of corresponding increase in brokerage and fee income in the current year. Administrative costs mainly comprise establishment expenses. These expenses decreased by 19.63% primarily attributable to decrease in write-offs, travelling and conveyance expenses and advertisement expenses. The decrease was partially offset by increase in legal and professional fees and donations during the year.

The break-up on a consolidated basis under key segments is as under:

Rs. in Crore
FY 2020-21 FY 2019-20
Amount % to total Amount % to total
Segment Revenue
Investment banking, wealth management and securities business (IWS) 1,566.77 48.56% 1,611.52 46.66%
Mortgage Lending 1,217.72 37.74% 1,350.85 39.12%
Distressed Credit 384.60 11.92% 413.50 11.97%
Asset management 31.33 0.97% 62.88 1.82%
Others 125.18 3.88% 79.75 2.31%
Total Segmental revenue 3,325.60 103.07% 3,518.50 101.88%
Less:- Inter segmental revenue (98.97) (3.07%) (64.95) (1.88%)
Total revenue 3,226.63 100.00% 3,453.55 100.00%
Segment Results (Profit/(loss) Before Tax)
Investment banking, wealth management and securities business (IWS) 445.76 41.78% 434.60 39.74%
Mortgage Lending 477.50 44.76% 533.01 48.74%
Distressed Credit 90.67 8.50% 85.58 7.83%
Asset management (3.54) (0.33%) 22.49 2.06%
Others 56.46 5.29% 17.84 1.63%
Total Results (Profit/ (loss) before tax) 1,066.85 100.00% 1,093.52 100.00%
Rs. in Crore
FY 2020-21 FY 2019-20
Amount % to total Amount % to total
Segment profit after tax (after non-controlling interest)
Investment banking, wealth management and securities business (IWS) 331.08 56.10% 311.26 57.11%
Mortgage Lending 164.80 27.93% 178.62 32.78%
Distressed Credit 44.10 7.47% 29.85 5.48%
Asset management 0.79 0.13% 10.28 1.88%
Others 49.37 8.37% 14.97 2.75%
Total Segment profit after tax (after non-controlling interest) 590.14 100.00% 544.98 100.00%
Rs. in Crore
Segment Capital Employed March 31,2021 % to total March 31, 2020 % to total
Investment banking, wealth management and securities business (IWS) 3,042.15 31.61 % 2,694.43 33.34%
Mortgage Lending 3,787.86 39.36% 3,431.82 42.46%
Distressed Credit 1,631.69 16.96% 1,601.29 19.81%
Asset management 231.35 2.40% 231.39 2.86%
Others 930.56 9.67% 123.06 1.53%
Total Capital Employed 9,623.61 100.00% 8,081.99 100.00%

Investment Banking, Wealth Management and Securities Business:

The investment banking, wealth management and securities business registered revenue of Rs.1,566.77 crore as against Rs.1,611.52 crore in the previous year. During the year, the percentage of segment results to segment capital employed was 14.65% as against 16.13% in the previous year. This segment contributed 56.10% to our consolidated profit after tax.

Mortgage Lending:

This segment registered revenue of Rs.1,217.72 crore as against Rs.1,350.85 crore in the previous year. Percentage of segment results to segment capital employed in this segment was 12.61% as against 15.53% in the previous year. This segment contributed 27.93% to our consolidated profit after tax.

Distressed Credit:

This segment registered revenue of Rs.384.60 crore as against Rs.413.50 crore in the previous year. Percentage of segment results to segment capital employed in this segment was 5.56% as against 5.34% in the previous year. This segment contributed 7.47% to our consolidated profit after tax.

Asset management:

The asset management business registered revenue of Rs.31.33 crore as against Rs.62.88 crore in the previous year. During the year, the percentage of segment results to segment capital employed in the segment was (1.53%) as against 9.72% in the previous year. This segment contributed 0.13% to our consolidated profit after tax.

Standalone Financial Performance:

On a standalone basis, the Company earned a gross income of Rs.374.41 crore during the year as against Rs.303.07 crore in the previous year. The profit before tax stood at Rs.216.83 crore as against Rs.156.45 crore in the previous year and the profit after tax stood at Rs.175.23 crore as against Rs.127.31 crore in the previous year. The profit in the current year increased primarily on account of increase in net gain on fair value changes from Rs.21.15 crore in the previous year to Rs.65.27 crore because of treasury activities and proceeds from QIP issue temporarily deployed in liquid mutual funds. Fee income also increased from Rs.219.45 crore in the previous year to Rs.229.10 crore in the current year due to increase in deal closures in investment banking during the year. The increase was partially off-set by decrease in dividend received from subsidiaries from Rs.35.53 crore in the previous year to Rs.16.43 crore in the current year.

Key Financial Ratios:

Ratios Consolidated Standalone
FY 2020-21 FY 2019-20 FY 2020-21 FY 2019-20
Interest Coverage Ratio 1.99 1.76 27.51 19.16
Current Ratio 1.91 1.92 13.27 4.07
Debt Equity Ratio 1.29 1.47 - -
Net Debt Equity Ratio 0.73 1.04 - -
Cost to Net Total Income Ratio 32.59% 32.35% 34.13% 40.00%
Net Profit Margin 25.05% 22.53% 46.80% 42.01%
Return on Equity (ROE)* 9.17% 10.24% 5.42% 5.04%
Return on Assets (ROA)* 3.77% 3.47% 5.02% 4.63%

*ROE and ROA for FY 2020-21 are calulated on weighted average basis taking into account the funds raised through QIP issue in JM Financial Limited during the year.

Ratios where there has been significant change (i.e. change of 25% or more as compared to the immediately previous financial year) from FY 2019- 20 to FY 2020-21:

Interest coverage ratio:

On a standalone basis, Interest coverage ratio as on March 31,2021 stood at 27.51 as against 19.16 as on March 31,2020. The increase is primarily on account of increase in profit after tax during the year. The profit after tax stood at Rs.175.23 crore as against Rs.127.31 crore in the previous year.

Current Ratio:

On a standalone basis, the current ratio as on March 31,2021 stood at 13.27 as against 4.07 as on March 31, 2020. The increase is primarily on account of increase in investments in liquid mutual funds owing to net proceeds from the QIP issue which remained temporarily deployed as on March 31, 2021.

Net Debt Equity Ratio:

On a consolidated basis, the net debt equity ratio as on March 31, 2021 stood at 0.73 as against 1.04 as on March 31, 2020. The reduction is primarily on account of increase in total equity and liquid funds. (Refer Note 47 of the Notes to the Consolidated Financial Statements)

Resource Mobilisation

During the last year the social and economic environment moved from a state of uncertainty and fear to optimism, recovery and doing everything necessary to fight the pandemic. FY2020-21 was one of the most challenging year, humanity has faced in the past century. After Covid-19 was declared a pandemic by World Health Organisation (WHO) in March 2020, many countries imposed varying degrees of restrictions to curb its spread. The world entered the year on the backdrop of unprecedented lockdowns globally and an impending pandemic. The imposition of lockdowns resulted in severe disruption of economic activity and a toll on human life and livelihood.

This also resulted in significant volatility in financial markets with prices of most asset classes including equities, commodities and currencies falling sharply initially; but recovered strongly once measures kicked in. The Government and Central Banks across the world swiftly unleashed flurry of measures to cushion the impact on economies.

Someof thesteps announced by the Indian central government were - Garib Kalyan Yojana which amongst other measures included distributing free grains to the poor section of the economy. We also saw Government implementing its long pending reforms under the "Aatma Nirbhar Package". This package covered support for MSMEs, incentives for domestic manufacturing, plan for privatisation of many CPSEs, etc.

Complementing this, the RBI also announced aggressive and unprecedented measures to ease financial conditions and improve liquidity and reduce the financial volatility through 115 bps reduction in policy rates, CRR cut of 1%, unconventional tools like LTROs, TLTROs, Operation TWIST, special refinancing facilities for select PFIs, allowing moratorium on outstanding loans and permitted restructuring of loans for financial institutions, etc. were some of the other supporting measures.

In the month of April, 2020, Franklin Templeton India Mutual Fund announced winding up of 6 debt schemes due to sharp increase in redemptions and liquidity pressures. This announcement gave a jolt to the faith and confidence of Indian retail and institutional investors. This further had its repercussions on the credit space with spreads widening across the board.

The strict lockdown and disruption led to Indias real GDP contracting by over 24% in Q1FY2020-21. After contracting first 2 quarters; our GDP recorded a positive YoY growth in Q3FY2020-21.

Average interbank liquidity was significantly positive during the year supported by RBIs large liquidity infusion measures and Foreign exchange purchases. The year also saw a rise in Government spending and soft credit growth vis-a-vis the deposit growth also adding to the interbank liquidity.

In recent developments, Monetary Policy Committee (the "MPC") at its meeting concluded on 7 April 2021, unanimously voted to keep the policy Repo Rate and Reverse Repo Rate unchanged at 4.0% and 3.35% respectively. It also voted in favour of maintaining an accommodative stance as long as necessary to sustain growth on a durable basis and continue to mitigate the impact of Covid-19 on the economy, while ensuring that inflation remains within the target going forward.

In addition to above, RBI also announced following measures:

• Setting up of secondary market G-sec acquisition programme or G-SAP 1.0. Under this program, the RBI will commit upfront to a specific amount of open market purchases of Government securities. For Q1FY22, RBI has announced target ofRs.1 lakh crore with first purchase ofRs.25,000 crore to be conducted on 15 April 2021.

• To conduct longer tenure Variable Rate Reverse Repo (VRRR) operations to manage liquidity more efficiently.

• RBI announced special liquidity facility of INR 50,000 crore for select AIFIs for a period of one year for onward lending in FY22.

However, there are risks that are playing out in our domestic markets since some time, the rise in international crude prices, increase in 10Y US treasury yields, significantly higher fiscal deficit, elevated CPI especially Core CPI, higher domestic fuel prices are increasing risk of second round impact on CPI, etc. Further improvement in broad based economic activity and higher government borrowings can put pressure on the sovereign yields and in turn on the corporate spreads.

Source: JM Financial group analysis, others.

FY 2020-21 witnessed the benchmark 10 year G-Sec rates increase marginally from 6.14% to 6.18% (half yearly yield) and repo rate was reduced from 4.40% to 4.00%. Though Y-o-Y the movement in 10 year G-sec appears to be marginal, it made a low of 5.79% in July 2020 before the trend reversed. The banking sector as on Feb 28, 2021 had lent Rs.8.96 lakh crore to NBFC sector which represented ~9% of the non-food credit (Rs.94.94 lakh crore) lent by banks. For Mar 31, 2020 the NBFC sector borrowing stood at Rs.9.05 lakh crore which represented -10% of the non-food credit (Rs.92.12 lakh crore). The total AUM of MFs as on March 31, 2021 was Rs.31.43 lakh crore, out of which Rs.16.66 lakh crore was part of equity schemes and Rs.14.77 lakh crore was managed under debt schemes. During the year, equity capital markets saw a net inflow of Rs.2,74,032 crore and debt capital markets saw net outflow of Rs.50,443 crore from FPI / Fll (Foreign Portfolio Investors / Foreign Institutional Investors).

The Group continued its focus on ALM and maintaining appropriate cash liquidity on its balance sheet. The Consolidated debt outstanding at the financial year ended March 31,2021 stood at Rs.12,369 crore versus Rs.11,756 crore a year earlier (an increase of approximately Rs.613 crore). During the year, the Group continued the efforts of diversifying the sources and maturities for the borrowing profile at the consolidated level. The long-term borrowing stood at Rs.9,621 crore versus Rs.10,721 crore a year earlier. The Consolidated long term: short term ratio stood at 78:22. The Groups shortterm borrowing as on March 31, 2021 stood at Rs.2,748 crore compared to Rs.1,035 crore as at the previous year end. As on March 31, 2021, the liquidity in the Group stood at Rs.5,351 crore. During FY2020-21, the Group raised Rs.3,123 crore as long term borrowings from banks, insurance and mutual funds, out of which Rs.725 crore was raised under TLTRO and PCG scheme. During FY2020-21, the Group through its respective subsidiary companies bought back Rs.1,471 crore worth of debt (consisting of NCDs and CPs). This has facilitated respective companies in reducing negative carry on available liquidity, improve ALM, reducing interest cost and maintaining necessary liquidity buffers.

The Group continues to explore variety of new avenues of financing to further diversify its borrowing profile.

CREDIT RATING

• The credit rating agency included in their surveillance parameter severe stress test models and increased their surveillance during the year to measure the unprecedented and unimagined impact of the pandemic.

• The credit rating agencies have continued with their long term rating and outlook on all companies within the group as per the table below.

• The credit rating agencies have continued with their highest short-term rating of A1+ on all companies within the group.

Company ICRA CRISIL India Ratings
JM Financial Limited AA / Stable AA / Stable -
JM Financial Products Limited AA / Stable AA / Stable -
JM Financial Credit Solutions Limited AA / Stable - AA / Stable
JM Financial Asset Reconstruction Company Limited AA- / Stable AA- / Stable -
JM Financial Home Loans Limited AA / Stable AA / Stable -
JM Financial Services Limited AA / Stable - -
JM Financial Capital Limited AA / Stable - -
JM Financial Properties and Holdings Limited AA / Stable - -
JM Financial Institutional Securities Limited AA / Stable - -

Respective companies in the group have taken dual rating for the Commercial Papers and Public issue NCD (Non-Convertible Debenture) issuances. Dual ratings are also required by certain class of investors as part of their regulatory requirement of investment.

RISK MANAGEMENT

Risk is an integral part of the business and almost every business decision requires the management to balance risk and reward. The ability to manage risks across geographies, products, asset classes, customer segments and functional departments is of paramount importance for the hindrance free growth of every organisation.

Due to increasing globalisation, integration of world markets, newer and more complex products & transactions and an increasingly stringent regulatory framework, the financial services industry is subject to continuously evolving legislative and regulatory environment.

The Group provides a wide range of services and products in the Indian capital markets and also offer capital markets financing, broking services, distribution of initial public offerings, mutual funds, distribution of other financial products, and investment banking services. Additionally, the Group is engaged in wholesale and retail mortgage lending business as also the distressed assets business, apart from private equity and real estate fund management business. Presence of JM Financial Group in several businesses, asset classes and geographies, exposes it to various risks. The risk also emanates from various businesses of operating entities within the Group.

At JM Financial, risk management forms an integral part of the business operations and monitoring activities. The risk is managed through risk management framework approved by Risk Management Committee established by the board, encompassing independent identification, measurement and management of risk across various businesses of the Group. The Company has formulated comprehensive risk management policies and processes to identify, evaluate, manage and mitigate the risks that are encountered during conduct of business activities in an effective manner. We have established a system of risk management and internal controls consisting of an organizational risk management framework, policies, risk management system tools and procedures that we consider to be appropriate for our business operations. The board reviews the effectiveness of risk management systems in place and ensures that the risks are effectively managed. The Audit Committee has additional oversight in the area of financial risks and controls.

The Group is exposed to a variety of risks, including liquidity risk, interest rate risk, market credit risk, operational risk, regulatory and compliance risk, reputation risk, business continuity risk, legal risk, competition risk and risks emanating from Covid-19 pandemic.

A team of experienced and competent professionals, at business level as well as Group level, identify and monitor these risks on an on-going basis and evolve processes/ systems to monitor and control the same to keep the risks to minimum levels. On-going monitoring by our officials helps in identifying the risks at an early stage. There is a continuous focus on the maker-checker processes. Detailed regulatory as well as regular inspections also help test our processes and compliances.

A risk event update report is periodically placed before the Risk Management Committee which includes, inter alia, the risk identification, risk classification, assessment of impact, risk mitigation/remedial action, risk status amongst others.

The Committee reviews these reports along with the course of action taken or to be taken to manage and mitigate the risks. Additionally, independent Internal Audit firms have been appointed to review and report on the business processes and policies for all operating companies in the Group. The report of internal auditors on set processes is reviewed and discussed by the Audit Committee of the Company and respective operating companies. Also, as required by the RBI, dedicated Chief Risk Officers have been appointed by the Groups NBFCs to identify various risks that are posed to the business, and put in place the mechanism to prevent and mitigate risks.

Various risks associated with the businesses of JM Financial Group are discussed in detail below:

Key Risk Description/Impact of Risk Risk Mitigation
Credit Risk The risk associated with the failure of the borrower to meet financial obligations to the lender in accordance with the agreed terms is known as Credit Risk. If any of our borrowers fail to discharge their obligations to us, it would result in financial loss. A comprehensive review exercise is conducted for credit approvals, ensuring proper documentation, carrying out extensive credit appraisal, conducting periodic reviews etc., is done as a part of credit risk mitigation. Various norms for customer identification and evaluation procedure for prospective credit proposals have been stipulated as a part of risk mitigation.
As we are in the business of lending, any material unexpected credit losses or failure of the borrowers to repay debt on time, may have an adverse and negative effect on our business.
Regular portfolio risk analysis is done on various financial and policy parameters, for making required changes in the credit policy as a proactive approach to risk management.
Market Risk Market risk is the risk arising from the adverse movements in market price of various securities, which may impact value of portfolio of investment in securities. The risk may pertain to interest bearing securities (interest rate risk), equities (equity price risk) and foreign exchange rate risk (currency risk). Our portfolios and collaterals/ securities are continuously monitored and also the usage of derivative instruments which minimises the impact of market risk.
As a part of it operations, the Group makes investments in securities and other financial instruments from time to time.
We are exposed to potential changes in the value of financial instruments held by us caused by above factors. Any decline in the price of our investments in quoted securities may affect our financial performance and position.
Liquidity Risk Liquidity risk is the risk arising due to unavailability of adequate funds at appropriate prices or tenure. It also refers to the risk that arises from the difficulty of selling an asset without a high impact cost. We have a strong financial position and all our businesses are adequately capitalized, have good credit rating and appropriate credit lines available to address liquidity risks. We also maintain a part of our capital in liquid assets to manage any sudden liquidity needs. Also, as per the guidelines prescribed by RBI, the NBFC subsidiaries, as applicable, are required to have High Quality Liquid Assets (HQLA) to maintain Liquidity Coverage Ratio (LCR), which acts as liquidity buffers.
Our liquidity is mainly dependent upon our timely access to, and costs associated with raising funds. Any lack of liquidity in the market could adversely affect our ability to access funds at competitive rates. Our liquidity shall be affected due to severe liquidity crunch in the market or due to market disruptions where we cannot access public funds. Our clients may, due to certain circumstances not honour their commitments which would indirectly lead to our inability to meet the obligations.
Also, the Company raised Rs.770 crore through QIP issue during June 2020 and has build sufficient liquidity to absorb unprecedented maket shocks.
Operational Risk Operational risks can result from a variety of factors, including failure to obtain proper internal authorizations, improperly documented transactions, failure of operational and information security procedures, computer systems, software equipment, fraud, inadequate training and employee errors. Well defined policies, operational processes and systems have been devised for our operations. Regular audit are done by internal auditors to monitor the adherence of policies and processes. We also get systems audit carried out periodically by competent external audit firms.
Our businesses are dependent on people and processes. Shortcomings or failure in internal processes or systems may have material adverse impact on the financial position as well as affect its operation. Maker/Checker mechanism has been put in place to ensure compliance with laid down systems and procedures in all areas of functioning of the Company.
Also the Companys key management team consists of professionals of high level of commitment and the team is well versed in the key issues relevant to the holding company structure. They have a good understanding of all the groups businesses helping the group companies to grow in a compliant manner.
Reputation Risk Reputation Risk is the current or prospective risk to business, earnings and capital arising from adverse perception of the organisation on the part of customers, counterparties, shareholders, investors or regulators. We conduct our business with diligence keeping in mind the stakeholders and their needs.
Adequate training is provided to employees to conduct their activities with utmost care and diligence keeping in mind the first class reputation and status enjoyed by the Company.
Reputation risk is a very high risk and can cause long term and sometime irreparable loss of business/revenue.
Regulatory and Compliance Risk Most of our businesses as well as the Company itself operate in strongly regulated business segments. We have a team of experienced and qualified professionals reporting to Group Head — Compliance, Legal & Company Secretary which takes care of compliance with applicable laws, rules, regulations and guidelines involving our businesses.
The risk arising out of a change in laws and regulation governing our business. It could also arise on account of inadequate addressal of regulatory requirements or differences in interpretation of regulations vis-a- vis the regulators. This risk is heightened in setting up global offices as familiarisation with global regulations and practices can take time as well as lead to risk of inadequate understanding.
We also take external advice and appoint well qualified professionals in respective functions in various offices. All the new guidelines, circulars, notifications are complied with. Formulation of the policies as well as its implementation is taken due care of.
In recent times, these risks have spread to tax laws and unexpected demands being raised by various tax authorities.
Internal audit is carried out by external professional firms to monitor compliance with best practices, approved policies and applicable regulations.
New laws or regulations or changes in the enforcement of existing laws and regulations may adversely affect the business/revenue/profits.
Our business team is strongly supported by our Corporate Functions team to quickly calibrate our actions in event of change in regulatory environment.
Non-compliance with regulations may invite strictures, penalties and even punitive action from the Regulators.
Competition Risk The industry in which the Company operates is growing at a rapid pace and is exposed to tremendous competition at the national as well as international level. Strong growth prospects combined with liberalization of financial services sector have prompted the entry of newer foreign and domestic financial services companies. Diversified and innovative product and services are offered to keep the customers and other stakeholders intact as well as continuous research and development helps in mitigating the competition risk.
Fair and transparent practices help the entity gain competitive advantage over other entities.
We operate in a highly competitive market and face significant competition from other players in the financial services industry and from companies seeking to attract our customers financial assets. Entry of new players has increased the competition faced by us. It may also lead to attrition of our key personnel.
Our human resource policies and a healthy positive work environment help us attract and retain best talent on a continuous basis.
Business Continuity Risk In the event of disruption in the conduct of business due to incidents like fire, natural calamity, breakdown of infrastructure, acts of terrorism etc. we are exposed to the risk of loss of data, clients and/or business that can adversely affect our financial results. We have in place Business Continuity Plan ("BCP") to mitigate the impact of any such exigencies. We continuously test check the processes laid out under the BCP and review the same. The records with respect to confidential data are preserved and are secured.
Technology Risk Technology risk is the potential risk arising out of any technology failure, which disrupts the business. Technology risk is also posed by the Cyber-attacks, which breaches the security of the system leading to data leakage and unauthorised access to company information. This risk is mitigated by regular review of various technology risks and steps taken to protect sensitive customer data, identification and prevention of data theft, cybercrimes, data leakage, unauthorised access to the system.
The Company has put in place the processes, systems and tools for monitoring and detection of unusual activity with round the clock security operations centre.
The Company has also implemented tools for mitigating various security risks - restriction of tool access, mobile device management and secured internet access along with user awareness program.
The Company has also in place the requisite secured systems which allows employees to access office infrastructure from home thus ensuring business continuity.
Risks emanating from Covid-19 pandemic The Covid-19 pandemic represents the biggest test of the post-crisis financial system to date. The pandemic constitutes an unprecedented macro- economic shock, pushing the economy into a recession of uncertain magnitude and duration. The financial system faces the dual challenge to sustain the flow of credit amidst declining growth and to manage heightened risks. Covid-19 has increased the risk across the Group such as credit risk, market risk, liquidity risk, operational risk, competition risk, reputation risk, regulatory and compliance risk, business continuity risk. We assess financial risks and vulnerabilities related to Covid-19 on an ongoing basis. Given the increased risks that the pandemic poses with its second wave, JM Financial Group is holding regular calls of its senior committees to discuss these risks and to share experiences of members on the steps they are taking to address them.
We are examining the potential financial stability risks that may lie ahead as the impact of Covid-19 on the economy unfolds. Going forward, we intend to monitor the resilience of the critical financial nodes so as to identify any emerging issues in a timely manner. We also intend to identify and assess in a forward-looking manner the specific vulnerabilities that may materialise during this major global economic downturn.
From a medium-term perspective, we intend to examine how likely far-reaching changes in the financial system associated with the Covid-19 crisis may affect the nature of financial stability risks. We will focus on monitoring current risks to financial stability, and in particular the impact of Covid-19 on the resilience of the financial system.

Internal Control Systems and their Adequacy

We have adequate internal control systems to commensurate with the nature of business and size of operations for ensuring:

• orderly and efficient conduct of business,

• adherence to the Groups policies and procedures,

• safeguarding of all our assets against loss from unauthorised use or disposal,

• prevention and detection of frauds and errors,

• accuracy and completeness of accounting records,

• timely preparation of reliable financial information; and

• compliance with applicable laws and regulations.

Policies, guidelines and procedures are in place to ensure that all transactions are authorised, recorded and reported correctly as well as provide for adequate checks and balances.

Adherence to these processes is ensured through frequent internal audits. The internal control system is supplemented by an extensive program of internal audit and reviews by the senior management. We have appointed independent internal audit firms for the Company and all our operating subsidiary companies to assess and improve the effectiveness of risk management, control, operations and processes. To ensure independence, the internal audit function has a reporting line to the Audit Committee of the Board.

Internal audit team is empowered to examine the adequacy of and compliance with policies, plans and statutory requirements.

The senior management regularly reviews the findings and recommendations of the internal auditors so as to continuously monitor and improve internal controls to match the organisations pace of growth and increasing complexity of operations as well as to meet the changes in statutory and accounting requirements.

The Audit Committee of the Board of respective companies reviews the performance of the audit and the adequacy of internal control systems and compliance with regulatory guidelines. Significant deviations are brought to the notice of the Audit Committee of the respective companies and corrective measures are recommended for implementation. The Audit Committee provides necessary oversight and directions to the internal audit function and periodically reviews the findings and ensures corrective measures are taken. This system enables us to achieve efficiency and effectiveness of operations, reliability and completeness of financial and management information and compliance with applicable laws and regulations.

CORPORATE SOCIAL RESPONSIBILITY (CSR) AND PHILANTHROPIC GIVING

At JM Financial, social responsiveness is synonymous with dedicated efforts to uplift most neglected and vulnerable communities in the country. Our efforts are crystallized at the grassroots in the form of planned, long-term projects. These projects are premised on community needs and driven by collective community action. JM Financials endeavours devoted to deserving causes and grassroots development, picked up form and pace in 2001 with the establishment of JM Financial groups CSR (Corporate Social Responsibility) and philanthropy arm, i.e. JM Financial Foundation. Our CSR initiatives, projects and programmes, implemented under the aegis of Integrated Rural Transformation Programme along with their financial resources and concomitant expenditures have been planned, executed and overseen by JM Financial Foundation as outlined in our CSR Policy and espoused by JM Financial Limited and all other Group entities.

In compliance with the applicable provisions of the Companies Act, 2013 and the amendments made thereunder from time to time, along with conformity with the CSR Policy the CSR Committee of JM Financial Limited has approved and contributed an aggregate sum of Rs.1.24 crore in FY 2020- 21 for expenditure towards PM CARES and JM Financial Scholars Programme (detailed in the subsequent sections).

JM Financial Limited is an operating cum holding company in the financial services industry, through several subsidiary and associate companies, managing their operations and presence through 76 locations across 11 states and two union territories in the country.

The following segments highlight the projects undertaken during the year, followed by an update on the progress of ongoing long-term projects initiated by the Company and other Group entities prior to the said year.

Projects initiated and supported in FY 2020-21

JM Financial Scholars Programme

This year, JM Financial Limited extended support to an inclusive education initiative at Ashoka University - a premier educational institution located in Sonepat, Haryana offering education in Liberal Arts and Sciences. The initiative has been undertaken to offer equal opportunity through financial aid to students from weak socio-economic backgrounds, aspiring to pursue their undergraduate courses at the University. This support from the Company forms part of collaborative contributions from other JM Financial group entities.

Contribution to PM CARES

Our Company pooled in financial resources with other JM Financial group entities to contribute towards the Prime Ministers Citizens Assistance and Relief in Emergency Situations (PM CARES) fund in order to strengthen the countrys fight against Covid-19.

Ongoing Long-Term CSR Projects

The year has been an unprecedented one, shaking everyone to their core. The pandemic coupled with the nationwide lockdown imposed a complete curb on civilian movement in India. At this time, while the authorities were aggressively trying to control the spread of the infection, people in metropolitan cities stocked up on their domestic supplies and tried to adapt to the "new normal". In the hinterlands, daily wage workers and migrant labourers struggled with loss of daily and/or agricultural labour work, resultant loss of daily income and the impending doom of hunger. A year has passed, and we are still grappling with the same grim reality. In the first half of the year, we found ourselves reaching out to our fellow citizens with relief measures. The second half luckily appeared to be a ray of hope when the pandemic started to look a little weak as compared to our determination and courage to move ahead, double up on our energy, and progress towards the pre-determined deliverables through ongoing projects.

Covid-19 Relief Measures

Given below is a synopsis of the relief efforts undertaken by the Company to support the fight against the pandemic:

• Supported the re-development and re-operationalization of a multi-specialty hospital located in suburban Mumbai, converting 114 of their existing 1,500 beds, into a dedicated Covid-19 facility. This entailed complete refurbishment and restarting of defunct but highly essential departments, viz. Radiology, Pathology and CSSD (Central Sterile Supply Department). The hospital is now renovated and functional with 250 ICU/HDU facilities. Over the year, up to March 2021, the upgraded hospital has provided isolation facilities and treatment to an estimated 24,500 Covid-19 affected patients of which, 22,700 patients have been discharged successfully. The hospital continues to treat and cater to the growing number of cases.

• In partnership with the Department of Health, Government of Bihar, we provided 10 Truelab™ Real Time micro PCR (Polymerase Chain Reaction) systems (i.e. machines) to the Department of Health, Government of Bihar and one machine to Bihar Foundation, to increase daily Covid-19 testing capacities across the state, enabling minimum 10,000 daily samples to be tested. The Truelab™ diagnostic machines are primarily used for testing tuberculosis and other 20

other forms of immunology infections, and is therefore approved for screening of Covid-19 cases by the apex health research body in India, i.e. the Indian Council of Medical Research (ICMR). These machines are currently installed and operational in district hospitals and medical colleges across 10 districts of the state, namely - Araria, Begusarai, Katihar, Madhubani, Muzaffarpur, Patna, Samastipur, Saran, Sitamarhi and Vaishali.

• Contributed towards the set-up of a 100-beds dedicated Covid-19 facility in Byculla, Mumbai, targeted towards helping lower and middle-income groups to access quality medical Covid-19 healthcare.

• Provided 1,000 premium quality Personal Protective Equipment (PPE) cover-all non-woven suits with shoe covers to be used by doctors and nursing staff working 24/7 at a dedicated Covid-19 hospital declared by the Brihanmumbai Municipal Corporation (BMC).

• Distributed 20,000 vegetable khichdi boxes in the slums of M-Ward and police stations in Mumbai city.

• Distributed 1,000dry grocery kitstofamiliesinDarbhanga and East Champaran districts of Bihar, ravaged by dreadful floods in August 2020, amidst the pandemic.

In addition to the aforementioned efforts, through JM Financial Foundation, we set up, initiated, and ran four community kitchens in four villages of our CSR project geographies, namely - Dhanimatari, Dhawatanr, Korasi and Lachhuar in Sikandra block of Jamui, Bihar. This was done with an appeal from the village communities to JM Financial Foundation, since many families were sleeping hungry with one-time meals or sometimes, none. The kitchens, run locally by community volunteers and our team from 6:00 am to 2:00 pm daily, fed over 1, 55,000 one-time wholesome meals over a span of 46 days. This initiative covered all 15 villages (13 villages and two hamlets) where JM Financial Foundation is present and working through its CSR projects.

MAHARASHTRA

The state of Maharashtra is the base location for JM Financial group of companies. We recognize our duty in reaching out to communities that are in our vicinity, apart from reaching out to those that reside in far flung, arduous terrains. Palghar district has been highlighted time and again in popular sources for unpalatable reasons. However, the villages of the Mokhada block where we work by way of our CSR hold immense potential and show high promise in becoming developed models to be reckoned with. Our project undertaken in this geography works with an umbrella approach, encompassing all aspects of agrarian life and livelihoods.

Integrated Village Development Project

The Integrated Village Development Project was initiated in 2018 by way of a tripartite Public Private Partnership (PPP) agreement, entered into with the Office of the Collector and District Magistrate, Palghar, Maharashtra. The project began with a vision of bringing well-rounded development to over 1,100 identified farmer households across seven villages of Mokhada and has so far, successfully achieved significant milestones through agriculture and allied activities, water irrigation and sanitation, improving education outcomes and increasing community access to public entitlements.

Agriculture and allied activities1 -> The project has been practicing the approach of training farmers, helping them pilot advanced agri-inputs and solutions, introducing traditional and economical water conservation methods at scale and hand-holding them throughout. From June 2020 till the end of March 2021, we have been able to organize 17 farmers training and capacity building sessions across Ase, Beriste, Brahmangaon, Karoli and Kalamgaon villages. These sessions addressed disease management for jasmine plants (related to jasmine cultivation undertaken through our project for a cluster farming approach in FY 2019-20).

NagalP cultivation, kitchen gardens, sweet potato cultivation, paddy cultivation using Systematic Rice Intensification (SRI) and aftercare of cashew and mango plants/trees (related to saplings provided under our intervention). They were attended by a total of 265 farmers. Simultaneously, by way of agri-inputs, we supported 50 identified farmers with 70,000 chili saplings and guided them in their cultivation and sale. The said saplings were planted across 6.25 acres of land, which yielded 5.33 metric tonnes and fetched the farmers a total ofRs.5.04 Lakhs when sold in the market.

Similarly, in November 2020, we encouraged 60 farmers to cultivate chickpea by providing each of them with 5 kg chickpea seeds, so as to avoid paddy fields from remaining barren during the post-Monsoon season and to utilize the available moisture for productive cultivation. These seeds planted across 10.91 acres of land yielded 3.11 metric tonnes of chickpea. To encourage the cultivation and consumption of vegetables in an otherwise millets-dependent region, 100 farmer families were supported with 100 mini vegetable seed kits under the project and 50 other farmers were supported with such kits by way of government convergence with the Krishi Vigyan Kendra (KVK), Kosbad - Dahanu. The total area brought under cultivation of vegetables was well over 3 acres. In the previous year, we had supported 80 farmers with 16,000 jasmine saplings through convergence with Zilla Parishad (ZP) Cess fund scheme - a district fund offered for various benefits under agriculture, livestock, health and so on. This year, 75 of them reported an output of 141.94 kg which fetched them a total income ofRs.0.63 Lakhs by way of sale of flower buds and gajras3 at the Nashik city market, bordering Mokhada block. Additionally, 69 jasmine farmers have been supported with 3,975 kg barbed wire for permanent fencing of their plots at an 85 per cent subsidy. Of the 20 farmers encouraged for SRI method of paddy cultivation in FY 2019-20,18 farmers stepped forward to once again cultivate the crop using this method, thereby building continuity and paving the way for sustainable agriculture practices. Evidently, they also enjoyed an increased yield (from 2,987 kg in FY 2019-20 to 4,217 kg in FY 2020-21), leading them to gain faith in the SRI method.

As a step towards ecology-friendly agri-methods, 42 identified farmers were provided with a vermibed each. These vermibeds raised in the months of April-May 2020 have completed four cycles (each lasting an average of 45 to 65 days) and have yielded a total of 28.83 metric tonnes of vermi-compost and 5,616 litres of vermi-wash. Resultantly, the farmers have used the vermibed yield in their mango, cashew, jasmine and vegetable plots cultivated under the project, thereby saving on an approximate total expenses of over Rs.3.70 Lakhs which they would have otherwise incurred on purchasing vermicompost (priced in the market at approx. Rs.10 per kg) and vermiwash (priced in the market at approx. Rs.15 per litre).

In convergence with Krishi Vigyaan Kendra (KVK), Dahanu - Maharashtra, the project also supported 50 farmers across six villages with 350 fruit plant saplings of Sapota (Naseberry), Guava, Custard apple, Moringa (Horseradish), Cashew, Mango and Lemon between September and November 2020.

Our capacity building goes beyond farmers and extends to women members of Self-Help Groups (SHGs). From June 2020 to February 2021, the project has conducted 24 training sessions for 216 women SHG members, and significantly built their knowledge, awareness and practices in entrepreneurship, record keeping and management, running millet processing and sugarcane juicing units (related to two trades encouraged under our project for two of the SHGs in the area). Apart from the said sessions, we mobilized 10 women trainees from from the SHG Swarajya Mahila Swayam Sahayta Gat to attend a training on Bakery Technology - setting up and running a bakery unit. They attended the five-day residential training (February 22 to 27, 2021) conducted at Dr. Balasaheb Sawant Konkan Krishi Vidyapith, Dapoli - Maharashtra.

Water, irrigation and sanitation -> The project geography receives a good amount of rainfall every year. In an attempt to encourage water conservation and groundwater restoration through non-concrete means, the project has introduced the concept of digging smaller trenches/pits without any casting material, known as Continuous Contour Trenches (CCTs). This year, in addition to the 1,073 CCTs dug last year, 11 farmers were mobilized to dig 1,787 new CCTs across 15.23 acres, with a total water holding and recharging capacity of approx. 1,500 litres per trench.

Increasing community access to public entitlements -> Three helpdesks have been set up under the project to educate the communities in our seven villages and across the 59 villages of the block on available government schemes and policies, help them apply and ensure the receipt of the entitlements that are meant for them. From October 2018 to March 2021, the three helpdesks have received a total of 5,016 applications which have been compiled, submitted to the concerned government officials and departments, and pursued through multiple visits and interactions. As a result, 3,497 applications have been processed successfully, leading to a total convergence of Rs.2.73 crore. A noteworthy convergence that has taken place through these efforts is the approval received in February 2021 from the Bandhkam Department, Zilla Parishad, Palghar, for the construction of a 2.5 km road to be initiated. This road, once completed, will connect about 43 households of Biwalpada hamlet to the rest of the villages, reduce the communitys hardships and also help them receive the benefits of our project intervention and government schemes convergence.

Improving education outcomes -> In an attempt to facilitate improved education infrastructure for 379 lesser-privileged tribal children in the project geography, the company has also contributed towards an Ashramshala Infrastructure Support Project. The Ashramshala is a privately-owned residential school located in Ase panchayat, educating and housing students in grades 1 to 10, hailing from households located in a radius of up to 50 km. Prior to this project, the students in grades 1 to 4 at this Ashramshala were forced to attend classes in their hostel rooms owing to no space available in the school building. With our project efforts, the following portions of the Ashramshala are undergoing construction and renovation, and span a total area of over 9,200 sq. ft.:

• Renovation of the existing school building

• Construction of a new school building

• Construction of males toilet blockandfemales toilet block

• Construction of four rainwater harvesting tanks, each with a capacity of 30,000 litres

The complete infrastructure development is expected to be concluded by the time the new academic year begins and it is envisioned that students, especially girl-children will get a respectable place to learn and grow.

@ BIHAR

Over the past three years, our Company has been working in the state of Bihar in Jamui district, identified by the NITI Aayog4 as one of the 115 districts in India in want of development in health and nutrition, education, agriculture and water resources, basic infrastructure, financial inclusion and skill development. Herein, we have followed the twin approach of intensive development and extensive development. Under the former, our efforts are focussed on development in integrated aspects of rural life in identified and systematically assessed village clusters. Under the latter, we spread over to larger number of areas/blocks, with one cause or focus area, as mapped by us. The interventions in Jamui district while working for inter-related focus areas, have been designed and implemented as separate projects, for ease of execution. Our projects and their deliverables have been demonstrated in Chakai, Jhajha and Sikandra blocks of Jamui, over the years. This year, we have included in our intervention, a fourth, adjacent and extremely disadvantaged block, named Khaira our footprint in this district.

Project Bachpan

Our youngest project that reaches out to the youngest among us, Project Bachpan was taken up in August 2017 with the mission of extending learning and holistic development opportunities to children in the age of 3 - 6 years, left out of the fold of the existing anganwadis owing to their limited intake capacities. Implemented by way of five child-friendly, pre-school learning centers set up exclusively for the project, Bachpan has been running successfully in five villages of Dhanimatari, Dhawatanr, Korasi, Lachhuar and Sabal Bigha. Each center is run by a teacher and an assistant teacher paying attention to the needs and wants of a maximum of 25 children for five hours a day, six days of the week.

Children coming from deprived families in the villages, learn pre-literacy and pre-numeracy concepts, while exploring activities that develop their fine and gross motor skills.

This year, the pandemic brought our centers to a rude halt. While a number of the educational institutions in the country were able to quickly adapt to Internet-based learning, we were left with little to no choice since our students come from families with one basic mobile phone if theyre lucky, which too are mostly in want of connectivity since they dont have the expendable income to spend on a recharge. With a lot of patience, our teachers as well as students and their families waited for a good, long nine months. However, with the situation not looking any better, in September 2020, we remodelled the project to take the learning to the childrens doorsteps. In this new model, the mothers, though illiterate, assumed the role of teachers, while the center teachers became their guides. A simple take-home kit equipped with basic stationery, writing, colouring and craft practice books was provided to each of our current 164 children and a weekly schedule was designed to teach the mothers, who would in turn teach their children.

Going forward, these kits will be further enhanced to include more advanced learning and activities for the children. This newly developed model is expected to help the project ensure that our students do not forget their concepts and skills taught once again, and that they are able to keep alive the joy in learning and teaching, till the time that centers are allowed to re-open.

Shri Vardhman Mahila Griha Udyog

Every human being has the right to carve out their lives the way they dream. More often than not, this dream remains unrealized for most women, since they arent exposed to the right channel and opportunity. Shri Vardhman Mahila Griha Udyog has taken shape with 18 such women, who were leading usual lives as farmers, wage and bonded labourers, until 2018, when they took up the challenge of stepping out of their homes to learn and earn for themselves. These women identified under the project, travelled to Gujarat for a good 20 days, to learn the skill of rolling, roasting and selling khakhra (a popular Indian snack made of whole-wheat flour). Ever since, the trained women have been working at the Udyog in a dignified manner, and earning output-based incomes at the end of the month.

Today, the Udyog located in Sikandra block has been running for over three years as the only women-based production unit in the region. JM Financial Foundation supported them financially for a little over 1.5 years, post which, from August 2019, the Udyog didis5 have been managing the Udyog independently, with handholding and monitoring from the Foundation, time to time. In the year 2020-21, our 18 women members have earned a total of over Rs.4.45 Lakhs, while the Udyog has earned a total sale income upwards of Rs.21 Lakhs from inception till date. Like every other business enterprise, our Udyog too has suffered massive losses and continues to suffer from an extended down-time owing to the pandemic.

JM Financial Foundation had been exploring the scale-up of the Udyogsexistingscope, strength andreach through product diversification, given the success of the first (khakhra) unit. While the pandemic has been a dampener on our plans, this was done through visiting and speaking to the women folk in villages of Khaira and Sikandra blocks. JM Financial Foundation identified and mobilized 27 lesser- privileged women from Bardaun and Ghaskotand villages of Khaira block and facilitated their training in papad6, pickle and spice making. These women were trained over 10 days in January 2021, at the Rural Self Employment Training Institute (RSETI) run by State Bank of India (SBI), Jamui district. This training was the first opportunity in the womens lives, given that most of them come from kuchcha houses, belong to tribal and OBC families, are illiterate (only 4 of 27 can write) and are mothers to two or three grown up children at the very minimum. No one had till date taken any interest in furthering their education or skills and hence, they grabbed the opportunity to get trained and earn a livelihood of their own. Going forward, as the pandemic situation comes under control, we plan to set up a new wing of the Udyog, with the newly trained women, focussed on papad production and sale.

Project Integrated Livelihoods Development Centers (ILDC)

In India, agriculture and livestock have always been known to complement a farmers livelihoods, especially in cases of small and marginal landholding farmers for whom, their cattle yield makes up for the low income from agricultural yield. This situation was witnessed in Jamui as well, when in 2018, we had conducted a survey to assess the high livestock population and their health conditions. Based on this survey and the high potential of cattle development (40,000+ at the time of the survey in three blocks), the ILDC project was initiated in Chakai, Jhajha and Sikandra with the primary objective of augmenting cattle - owners livelihoods with improved milk yield through livestock development and management services. The project is implemented by way of 21 ILDCs (physical centers) set up and operationalized across 21 village locations, run by local para-veterinarian youth, trained under the project, addressed as Gopals. Each center serves about 8-10 villages, offering 24/7, scientifically-driven cattle health management and breed upgradation services to cattle-owners at their homes.

While the Covid-19 lockdown disrupted the full-fledged running of the centers, our Gopals continued providing basic cattle healthcare and development services in their villages, following safety protocol, using the medicines and related supplies that they had with them at the ILDCs. (This did not include the months of March and April 2020 during strict lockdown). The project resumed all veterinarian services from the month of September 2020 after normal civic movement was allowed in almost all parts of the country. Given below is a glimpse of the cattle management and development services rendered through the year:

Throughout the life-cycle of the project so far, the ILDC services have birthed 4,101 calves (2,047 female and 2,054 male) of higher breed varieties with improved milk yield potential, namely - Sahiwal (2,053), Jersey (595), Holstein Friesian (719), Murrah Buffalo (364), Gir (348) and Red Sindhi (22).

In the months of February and March 2021, the project extended its services to eight villages of Khaira block with the available project expertise and ILDC resources, basis the need felt by the community therein and expressed to the JM Financial Foundation team. These villages, namely - Bardaun, Dipakarhar, Gaighat, Jhilar, Mahengro, Pratappur, Rajla-Sirsiya and Ropawel have a significant number of cattle, most of which were found to be malnourished owing to the lack of green fodder and water scarcity and suffering from Foot and Mouth Disease (FMD) owing to frequent grazing on hilly, forest terrain. Given this context, our ILDC para-veterinarians and project team members conducted a series of eight outreach cattle health camps, thereby providing 140 cattle OPD services, de-ticking to 1,394 cattle and deworming to 1,578 cattle.

The project implementation will be supported for another two years, as planned.

Shri Vardhman Dugdhalay

As a scale up and intensification of the ongoing ILDC project, JM Financial initiated the Shri Vardhman Dugdhalay - a dairying initiative to channel the substantial, but untapped milk collection potential in the villages of Sikandra block, providing an opportunity to cattle-owners to earn increased livelihoods. The project was designed to be implemented on ground with 10 village-based Milk Collection Centers (MCCs) identified and set up with requisite equipment to facilitate daily milk collection and one Bulk Milk Cooling (BMC) unit at the block place in Sikandra. The MCC at each location is operated by a local village resident (addressed in the project as a Sahayak) and is equipped with a set of eight milk collection, weighing and testing instruments provided under the project.

The project was initiated in January 2020, and from February 1, 2020, we initiated the milk collection and supply operations. However, with the imminent Covid-19 lockdown from March 2020, the project operations came to a complete standstill after the first six milk collection cycles. After a long gap of five months, seeing the situation gradually resume normalcy, the project once again initiated ground operations from September 16, 2020, to slowly crawl back to a point of stability. Given below is a glimpse of the milk collected over 25 milk collection cycles from February 1, 2020 to March 31, 2021:

Through a total milk collection of 68,298.57 litres depicted above, the Sahayaks have till date earned a total commission of Rs.0.68 Lakh while the milk pouring farmers have earned a total sum of Rs.24.27 Lakh.

Adarsh Gram (Model Village) Development Project

Agriculture forms the backbone of Indian agrarian life and economy and this fact holds true for our villages in Bihar as well. In order to conceptualize and develop villages as models, it was necessary for us to implement a project that focuses the maximum on agriculture, while tying together few other aspects of rural life as well. The Model Village (Adarsh Gram in Hindi) Development Project was initiated in 2018 with the primary objective of developing such villages while harnessing natural resources and village capacities to convert 15 identified remote villages in Sikandra block into self-reliant villages. Given below are some updates on the project progression under its primary focus areas:

Livelihoods and alternate agriculture -> Similar to our approach in Maharashtra, we have been following a cyclical model of training-agri inputs-handholding with the vulnerable marginal and small farmers. This year, the pandemic and the national lockdown played a very big spoilsport for our planned deliverables for both the Kharif and Rabi seasons. Given the context, we realized that we would have to go back to educating and handholding farmers in reverting to traditional but scientific methods of reusing seeds for subsequent rounds of cultivation, and nurturing them with effective, organic fertilizers to enhance and retain soil quality and health. To this effect, our project has so far intervened in enhancing farmers awareness and providing quality inputs timely. While the year was largely disruptive, we were able to bolster ourselves in the month of November 2020, when we conducted extensive meetings across our project villages, understood farmers challenges faced during the pandemic and addressed their major concerns towards betterment of agriculture. We began organizing planned farmers awareness-building sessions and increasing our frequency as well as scale of interactions from February 2021. Therefore, as opposed to other years when we had multiple sessions through the year reaching out to our farmer beneficiaries, this year, we organized four structured, large- scale events in convergence with Krishi Vigyan Kendra (KVK), Jamui, impacting a total of 740 farmers. A first-ever three-day farmers knowledge building session series was organized in three high agri-potential villages, namely - Jagdishpur, Nauwadih and Fatehpur. These sessions, held from February 1 to 3, 2021 under the banner Khet, Khalihaan aurjaagruk kisaan adhiveshan (Farm, barn and aware farmer session in Hindi) were arranged with the primary objective of disseminating knowledge timely, prior to the Zaid cropping season, dispelling myths and misconceptions, while feeding farmers curiosities with information based in Science. The sessions were attended by a total of 527 farmer attendees, and delivered by Dr. Sudhir Kumar Singh (Director and Senior Scientist, Krishi Vigyaan Kendra, Jamui). The content in these sessions revolved around the significance of soil health and tests, which form the core for a better crop, healthy plant and contribute to soil sustainability in the long run.

As an immediate outcome of the farmers knowledgebuilding series conducted in February 2021, on March 2nd and 3rd, KVK - Jamui had organized a training session on the importance and methods of soil testing. The main objective of this training was to provide a unique opportunity of entrepreneurship to youths along with enabling them to set up and run soil test labs in their village itself, with an agenda of helping farmers in better crop-planning while ensuring better soil nutrient management for enhanced crop production. The two-day training was attended by 17 youths mobilized by JM Financial Foundation. The third event was an exposure visit planned and organized with the KVK, Jamui on March 2, 2021, to Kundri in Jamui block, Jamui district, which has been developed as a climate resilient agriculture village. We identified and mobilized 92 farmers from Nauwadih (38 farmers), Jagdishpur (16 farmers) and Fatehpur (38 farmers) villages who through a visit to three farm plots, got an opportunity to observe-

• Zero tillage of sowing paddy and wheat

• Furrow irrigated raised bed system

• Plots cultivated entirely using farmer-produced seeds

The fourth event involved an exposure visit conducted for 104 farmers at our projects model/demonstration farm with the objective of orienting them to the concept, method and practice of capsicum cultivation, in anticipation of the imminent Rabiseason.

Complementing the farmers capacity building efforts are the agri-inputs provided under the project, either free of cost or with heavy subsidies. The model of nutrition gardens was introduced in our project from the second year of its implementation, as a small-scale, holistic model of kitchen garden, involving vegetable cultivation on raised beds interspersed with water drainage channels.

These nutrition gardens, if cared for, yield healthy greens for four months straight. Under our project intervention this year, a total of 102 farmers across 11 intervention villages were provided with vegetable seeds for cultivation in the nutrition gardens, which after cultivation, fulfilled their nutritional requirements during the peak lockdown months. Fruit plant saplings of lemon (2,475 saplings), guava (961 saplings) and custard apple (483 saplings) were provided to 61 farmers for cultivation of individual orchards across all our project villages. Of these orchards, 53 are in vegetative growth stage, 4 have been destroyed by wild animals and the status of four others has been difficult to ascertain owing to restricted movement during the lockdown. As a step towards organic farming, in continuation with the efforts last year, 32 vermi-beds have been provided to and raised by 32 farmers. The vermicompost yielded from the said beds have been used by the farmers in their crop fields.

Shri Vardhman Nidaan Seva

Addressing health issues and concerns is of paramount importance, while trying to achieve the goal of comprehensive development. Keeping this along with the existing, visible health issues in the community at the center of our intervention plans, JM Financial proudly initiated its first own mobile health unit under the name - Shri Vardhman Nidaan Seva (abbrv. SVNS) on December 10, 2020. The project has been identified, evaluated and undertaken with the objective of providing primary - preventive and curative healthcare services to families in Khaira and Sikandra blocks, that face the hardest time in accessing reliable care, and possess an even lower level of awareness of good health seeking practices. Since inception, though in the midst of a pandemic, the MHU has been serving more than 14 villages through its weekly pre-designated and scheduled clinic locations in the said blocks.

The MHU is operational from 9:00 am to 5:00 pm for five days a week and on alternate Saturdays as per a predecided weekly routine. The project is executed on ground by a team of six subject matter experts, comprising -> a qualified medical practitioner, a qualified nurse, a driver, an MIS and data management executive and two qualified health and applied nutrition professionals from Tata Institute of Social Sciences.

From December 10, 2020 to March 31, 2021, Shri Vardhman Nidaan Seva has treated 5,812 patients through 136 OPD visits over 69 days of serving villages in a radius of 50-53 km per day. With its daily visits, personalized patient followups and free medication continued even through the raging pandemic, the project has in little time, managed to earn the faith of the community.

JHARKHAND

The state of Jharkhand may be hailed as the industrial linchpin for a forward-looking India, but a closer look at the some of the geographies within would reveal the blighting state of health indicators in districts that are poorer, with heavy tribal population concentration. Giridih is one such district, also highlighted by the NITI Aayog as an Aspirational District and JM Financial has been working to strengthen public health therein, since 2017. Our CSR projects in this region are focused purely on community healthcare, with intensive concentration in Dumri and Pirtand blocks.

Project First Referral Unit (FRU)

The Project FRU began with a tripartite (PPP) agreement entered into with the Jharkhand Rural Health Mission Society (JRHMS - Govt, of Jharkhand) in September 2017, with the predominant objective of improving maternal and child health indicators. For this purpose, the project implementation was undertaken at the block-level Community Health Center (CHC) located in Dumri block, wherein we worked for over three years to set up and run successfully, a Comprehensive Emergency Obstetric and New-born Care (CEmONC) Unit within the First Referral Unit (FRU) in the CHC. Over 3.3 years of its implementation, the project sustained relentless efforts at initiating and cementing quality healthcare services being available for over 2 lakhs (approx.) population in the region. These efforts included:

• Identifying system and facility gaps through external audits paediatric and gynaecology facilities

• Development of Standard Operating Procedures (SOP) and deploying them as per National Health Mission (NHM) protocol

• Recruitment and skills enhancement of 41 trained staff and existing hospital staff

• Enhancing FRU services operations and management through digitized OPD registrations, creating a permanent repository of patient data, operationalizing a 24x7 laboratory, regular deliveries by trained nursing staff

• Linking community needs with FRU services via monthly community visits and awareness sessions in the villages on maternal and child healthcare, regular meetings with government and JRHMS officials at block, district and state levels, implementation of government programmes such as Janani Suraksha Yojana and PM Surakshit Matritva Abhiyan.

• Following output-oriented monitoring and evaluation framework

As a result of the said efforts, 4,042 babies were safely delivered at the FRU during the life-cycle of the project, of which 76 were caesarean deliveries. The New Born Stabilization Unit (NBSU) which lay closed and non-functional was inaugurated under our project and made operational, thereby saving lives of 318 critical new-born babies, from January 2018 to June 2020.

The Operation Theatre was refurbished, operationalized and maintained, leading to 1,809 surgeries being performed.

The FRU being functional during the project life-cycle has been a boon to the mothers and children in the region, who would often have to depend on expensive private healthcare options for quality services. The project also brought us a moment of feeling humbled but immense pride at the same time when it received the prestigious 18th FICCI (Federation of Indian Chambers of Commerce & Industry) award in July 2020.

The project MoU had a commitment for three years till March 31, 2020, but concluded in the month of June 2020 with an extension of three months accorded by the authorities.

Project Mobile Health Unit (MHU)

Akin to the project in Jamui district, Bihar, project MHU was undertaken in September 2017 in Dumri and Pirtand blocks of Giridih in order to make available healthcare services by way of a mobile medical van. Renowned locally as the chalta phirta dawkhana7, the MHU has been providing doorstep healthcare services to 14 identified, most needy villages*, located on undulating terrains of the aforementioned blocks, inhabited by largely tribal and other backward caste families.

* The project after two years of serving 24 villages, has re-oriented its approach in the third year to focus on 14 villages from the said group, basis comparative levels of deprivation from medical care and our potential to provide intensive services with timely follow-up.

Through the year, the MHU has treated 13,067 (cumulative) OPD patients, bringing the record since inception to 60,007.

Most of the patients treated consult our MHU doctor with general, dermatological, musculoskeletal, respiratory, gastro-intestinal and orthopaedic complaints.

Philanthropic Causes Supported by JM Financial Foundation

In addition to the CSR projects undertaken by the company, we have also been supporting deserving philanthropic initiatives through JM Financial Foundation (JMFF). Keeping in line with the objectives of the Foundation, we have endeavored to support programs in the space of promoting education, healthcare, sports and music, with partner organisations. Due to the pandemic, many organisations we support, created alternatives to reach out to their beneficiaries and sustain their positive impact.

Augmenting Education Facilities

JM Financial Foundation has partnered with an organization that encourages holistic development of differently abled children with a well-balanced curriculum and supported by special educators and therapists. Scholarships were endowed to 34 girls to pursue bachelors/masters in Computer Applications in Bhavnagar, Gujarat. We supported an institution that impacts 72,000 students and 3,000 educators across Municipal schools of Mumbai, with tried and tested training models. Skills training was provided to 248 students with intellectual & developmental disabilities, so as to maximise their potential by identifying and building on skills within them that would help them lead independent lives. About 23 one-teacher schools known as ‘Ekal Vidyalayas were supported as an education initiative for tribal children in rural areas across the country.

Aiding Healthcare Initiatives

With our support, rehabilitative aid was provided to 92 differently abled, underprivileged individuals, by way of providing prosthetic limbs, callipers, wheelchairs and hearing aids. Treatment of 698 patients with Ayurveda medicines supplied by an eminent institute in Bengaluru was supported by us. Free eye surgeries were conducted with JMFF support, for 334 patients in Maharashtra and Rajasthan while eye screening was done for 2,000 students in Udupi, Karnataka. We extended medical aid by way of part funding of critical surgeries for 32 children (up to 18 years of age) in Mumbai and other parts of Maharashtra. Surgery for a one- month old child with congenital heart defect in Hyderabad, was supported also supported. We helped sustain the running cost of a hospital in Palitana, Gujarat during the pandemic. Lastly, 3,000 blankets were distributed by our partner organisation and our employees to street dwellers in Delhi NCR, Kanpur and Lucknow, Shimla, Chandigarh and Mayurbhanj in Orissa, to combat the harsh winters.

Additional Areas of Support

Training of sports athletes

JMFF supports a premier institute initiated and managed by our nations top sportspersons. Training is provided to budding athletes who otherwise do not have access to facilities to enhance their skills. World class coaching, nutritional facilities and equipment was provided to train 96 such athletes to participate in global sports competitions and win medals for the country. During the lockdown, the athletes were at home but it was important for them to train and maintain their physical fitness levels and stay mentally motivated. Regular online fitness training sessions by Strength & Conditioning (S&C) trainers, nutrition sessions by nutritionists, psychology sessions by sports psychologists, daily wellness monitoring by physiotherapists and fitness training related equipment were provided as well.

Promotion of music & cultural traditions

JMFF supports an organisation in Ahmedabad that runs a School for Indian Classical Music with a large number of students, who have performed excellently in various youth festivals and music competitions.

Nutritional assistance to infants

JMFF supports an organisation that promotes adoption of children and child welfare. During the year, we supported nutritional supplements that were provided to 22 such children in pre-adoption foster care.

Human Resources

At JM Financial, we attribute our growth and success to our work family - our human capital.

We believe in investing in our employees, nurturing their personal and professional growth, empowering them to make work better and most importantly, trusting their abilities and valuing their contributions.

Talent is our most valuable asset and we believe that the ultimate identity and success of our Firm lies in the excellent quality of our people and their commitment towards attaining our organizational goal.

Human Resources function is responsible for building the Group Human Resources strategy and is supporting all our businesses, by delivering best in-class Human Resources partnership.

HR Promise - The Human Resources Tagline

HUMAN RESOURCES

We believe that the credibility and reputation of the Firm is shaped by the collective conduct of individual employees and the tagline affirms these three beliefs at its foundation to supplement the Group values.

Pragmatic

Professional

Progressive

Engagement Surveys - Great Place To Work

As part of our endeavour to rank as an employer of choice and also identify our developmental areas, we internally conducted a dipstick study to understand our employees - what motivates them to go the extra mile, what drives loyalty and what genuinely makes and keeps them happy.

The findings of the survey reiterated our belief that our strongest attributes are our value systems, our open door culture, innovative practices, transparency, a sense of belonging, spirit of teamwork and the respect and credibility we hold in the industry.

This year, five entities viz., JM Financial Limited (representing Institutional Businesses), JM Financial Services Limited, JM Financial Asset Management Limited, JM Financial Products Limited (Dwello) and JM Financial Home Loans Limited participated in the Great Place To Work survey.

JM Financial Group has been accredited as Great Place to Work-Certified™ by the Great Place to Work Institute for all five participating entities in 2021.

Talent Management

Building and developing our talent pool is our continuous and top priority and we have been successful in attracting diverse talent with sound expertise, new perspectives and experience.

JM Financial has a strong presence in the market and our empanelled service partners help us study, survey and attract superior talent in the market.

Our initiative to participate in various market studies enable us to stay updated with market trends.

Workforce Diversity

We have employees from extremely diverse backgrounds in terms of experience, culture and heritage. This goes a long way in building our inclusive culture, as people from different backgrounds bring with them fresh ideas, innovations, unique styles and methods.

Through this, we aspire to develop a flexible, agile and high performing workforce and most importantly, a blended one.

We take pride in the workforce diversity that we have and ensure that each individual is treated with equality and respect.

Campus Hiring

Our aim is to hire a strong pool of fresh minds, whose competencies can be further developed.

The batch of 2020-21 comprised Management Graduates from schools of Business Management and Social Work. The hiring has been executed for Dwello and CSR teams at JM Financial.

JM Financial also focuses on a Management Internship Program, which aspires to establish not only its brand at campuses but also build a relationship with potential candidates that it can recruit as full time resources from the campuses. Through this program, we get an opportunity to evaluate Interns for a possible Pre-Placement Offer.

Rewards and Recognition

At JM Financial, we pride ourselves in our people and their achievements. It is therefore important for us to recognize their hard work, dedication and commitment.

Our Rewards and Recognition program provides a framework for encouraging and recognizing long service and exemplary performance of our employees.

The organization has an annual Reward and Recognition Program, which recognizes and appreciates talent. The reward is non-monetary in nature and is designed for both, Business and Support functions.

Employee Engagement

New Introductions:

Chai Pe Charcha - During the lockdown, we introduced ‘Chai Pe Charcha, where Team Leaders/ Department Heads were encouraged to organize online chai-pe-charcha meetings (with chai), on various platforms like Microsoft Teams, Zoom, Google Meet etc. The intent was to get-together and have virtual interactions apart from work.

Thank you Email from Group Managing Director and HR - Employees were thanked for standing by these tough times and ensuring that they gave their best in supporting the organizational goals.

JM Financial Super Heros - We thanked each employee who braved all odds and were in office premises during the challenging times of a nationwide lockdown and ensured the continuity of all our businesses and timely support to all clients. We also thanked our CSR associates, who continued to work at the grassroots for lesser served communities.

Covid-19 Frontliners - The JM Financial family shared a salute with all the Covid-19 frontliners, for their service to the nation during these extraordinary times. Employees were asked to share pictures of someone from their family (spouse / parents / siblings / children) who have been Covid-19 frontliners. We added their pictures in our monthly newsletter - Essence, thanking each and every one of them.

#MyWork from Home - During this initiative, we encouraged employees to share pictures of their ‘home-stations.

Rise and Shine - In order to keep spirits high, employees were requested to share their personal achievements during the lockdown. From the small bits of chores to the big tasks they were undertaking, we wanted to hear them all. ‘Rise and Shine is a section in our HR Newsletter - Essence.

Young Achievers - With an aim to inspire innovation amongst children of JM Financial employees, we had invited entries of employees kids on the notable contributions and creations during the past one year.

Terrific Tuesday - Dwello conducted employee engagement activities and fun minute to win games within branches, as part of the team building activity.

Womens Day - Employees were encouraged to share iCheers with their women colleagues, to spread smiles by acknowledging the ones who have helped, inspired and motivated them.

Appreciation Week - During Appreciation Week, employees were encouraged to show their appreciation to those colleagues across teams, who they feel have helped or supported them throughout the year, through iCheer. An overwhelming number of 5000+ iCheers were sent across the organization during this period.

Tell a Tale - This initiative was undertaken to encourage reading as a hobby within our employees. Also, to push employees to pen down their thoughts in form of stories or poems. This way, we asked employees to share their stories, poems or book reviews with pictures. ‘Tell a Tale is a section in our HR Newsletter - Essence.

Other Initiatives:

Dwello Leadership Meet: A two-day Leadership Meet was organized for Team Leaders at Dwello, to encourage team bonding and plan the strategy for FY2021-22.

Covid-19 Care Leave: Employees who test Covid-19 positive could apply for leave under this leave category. As the impact of this infection varied on case to case basis, we had not stipulated the number of days of leave that can be availed. Number of days of leave varied depending on the severity of the case.

Celebrations

At JM Financial, we firmly believe that celebration is a part of our work culture. Festivals bring employees closer and help improve work relationships. Celebrations provide a well- deserved break and help employees to remain engaged.

Several occasions were celebrated, including Diwali, Christmas, Navratri, Holi, Friendship Day, Independence Day, International Yoga Day, World Photography Day etc.

Several online workshops such as Diya Decoration, Handmade Gift Making, Home Decoration, Zumba, Garba etc were conducted.

Several online engagement activities such as Twin with your Work Buddy, Tricolour Dishes, Poetries and Paintings about the country were conducted.

Employees participated in large numbers and with great enthusiasm.

Health and Awareness

Doctor Consultation - Employees could consult a doctor via email or phone, for any health related queries/reports. Mails were rolled out to employees with the doctors contact information and consultation timings.

Mindhouse App - We had introduced an app called ‘Mindhouse. The app had various Yoga sessions, sessions on handling and managing stress and anxiety, sessions to improve focus, recorded sessions of guided meditation and guided sleep meditation and sessions on calming the mind and boosting productivity, for employees to enrol and benefit from the same.

#BeJMFit - We had initiated the fitness month in September, 2020 called #BeJMFit, where every week a fitness bingo was shared with employees and they were encouraged to engage in fitness activities. For eg: Drink 3 litres of water daily, do 10 jumping jacks daily etc.

Performance Management

We follow a comprehensive performance evaluation process for annual reviews, which was digitalized and a structured performance evaluation calendar was launched.

Employees across levels benefit from the development oriented approach of this system.

This practice helps us identify the capabilities of employees and leverage the same. It also helps us to suggest and plan development in the identified areas through training. For this, a Training Need Analysis is captured.

Trainings were provided to new joinees, in order to help them get equipped with the appraisal process and the system.

Compensation and Benefits

JM Financials compensation framework is structured to align the interests of our employees with the long-term interests of the Firm and its other stakeholders.

Our compensation framework is designed to retain and motivate our human capital, reward them for their performance and attract superior talent from the industry.

JM Financial also offers various benefits designed to meet the needs of our employees. These benefits are an integral part of our Company and provide employees and their families valuable support, during employment with JM Financial.

Succession Planning

At JM Financial, we promote an atmosphere of inclusion, by encouraging the next level of employees to take higher responsibilities.

Managers along with Human Resources formulate a customized grooming and orientation of high potentials, by carefully planning their work experiences. Their skills and capabilities are developed through further training and mentoring.

Learning and Development

Training is necessary for the employees development and progress. We have an environment supporting continuous learning.

Learn is our one stop destination to all our training requirements. This year, due to the pandemic, all trainings were conducted online.

Learn is a blend of:

Online technical and behavioural courses (Online Trainings) which are hosted on the platform. Courses were decided basis the training requirement of employees. These training modules are micro video based lessons, which focus on retention.

External faculty trainings (Classroom Trainings) are conducted and employees are given opportunities to develop their skills.

We have promoted open programs conducted by employees of the organization, who share their knowledge and expertise on subject matters (Knowledge Community).

Employees can also seek information on seminars and job related trainings, arranged by specialized centres (Seminars and Workshops).

In order to create awareness, market the platform and ensure that employees undergo trainings, we executed a marketing campaign called ‘Learning Premier League 2.0, flavour of the campaign being similar to Cricket. Employees were encouraged to browse the open platform and take up courses of their choice. We felicitated the ‘Learner of the Tournament and encouraged other employees to keep learning.

Basis employees training requirements, content is developed in-house also and uploaded on the Learn platform.

New joinees are introduced to the Learn portal, as well as the Learn mobile app at the time of their Induction. Courses like POSH, IT User Awareness and Social Media Policy have to be undertaken by each and every employee of JM Financial.

A Learning Calendar was created across businesses and levels to inculcate the culture of learning.

Workshops on topics such as ‘Organic Farming, ‘Energy Conservation and ‘Basics of Photography were also conducted.

A contest called ‘#bingelearning was initiated by Home Loans. Winners were felicitated with e-certificates.

We have successfully achieved a total of 374 man days of trainings (Classroom Trainings, Knowledge Community and Webinars), during the FY 2020-21.

Wellbeing and Safety

For us, the health and safety of all our employees and their families is of utmost concern and priority.

The Covid-19 pandemic has been unprecedented and required immediate action to be taken across the Group. We activated the business continuity plan and a large part of our employees were working from home or remotely.

Employees were constantly being communicated and updated about the developments of the pandemic, Government guidelines, dos and donts and measures that the Firm had taken. Multiple advisories were sent to all employees, along with the activation of the Crisis Management Team for health related assistance needed during the interim period.

All offices were fumigated, sanitary equipment was made available and HR Business Partners were constantly in touch with the employees to ensure their safety.

In addition, several precautionary measures were taken for the essential staff working out of the offices, including fumigation, temperature check, masks, sanitizers etc.

Work from Home facility was provided. Remote access was provided to employees on their laptops, so that they had the necessary accesses to relevant email inbox and drives.

Internal and external meetings were conducted on digital platforms.

Hiring process was digitalized with online interviews, prejoining formalities, on-boarding and induction.

‘Post Covid-19 - Welcome back to office webinar were conducted to ensure that employees were aware and followed the necessary protocols.

The total employee strength of JM Financial Group stood at 1,978, as on March 31, 2021.

Safe Harbour

This report describing our activities, projections and expectations for the future, may contain certain ‘forward looking statements within the meaning of applicable laws and regulations. The actual results of business may differ materially from those expressed or implied due to various risk factors and uncertainties. These riskfactors and uncertainties include the effect of domestic as well as global economic and political events, volatility in interest rates and in the securities market, new regulations and government policies that may impact our businesses as well as ability to implement our strategies. We are under no obligation to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events and assume no liability for any action taken by anyone on the basis of any information contained herein.