JM Financial Ltd Management Discussions.

MANAGEMENT DISCUSSION AND ANALYSIS

Global growth prospects looks moderated

Outlook for the global economy has dampened due to the impact of the on-going geopolitical disturbances arising from the Russia-Ukraine war and the renewed pandemic related lockdowns in China emanating primarily from its zero Covid policy. These events have accentuated supply shortages and inflationary trends across the world. The IMF has scaled down global GDP growth for 2022 by 80bp to 3.6%. Likewise, the WTO has scaled down projection of world trade growth for 2022 by 170bp to 3.0%. IMF notes that the medium- term outlook is revised downwards for all groups, except commodity exporters who benefit from the surge in energy and food prices.

Indian Economy

In Q4FY22, the Indian economy witnessed a recovery from the third wave of Covid-19 as the restrictions eased out. It reflected in a revival in urban economy even as rural saw some slackness. Recently, the effect of rising agri commodity prices induced by global disturbances, would have a rub off effect on revival of rural economy. Exports growth continues to remain robust and imports have also surged, thus translating into a monthly trade deficit of USD 18-20bn. There has been some revival in household consumption and investments intents have shown early signs of improvement.

The outlook appears to be impacted by global spill over effects reflecting in rising inflation and hardening in interest rates. RBI has scaled down FY23 GDP growth forecast to 7.2% while inflation is projected higher at 5.7%. But the latest data show that the inflation has already edged higher at 7% in Mar22 and core inflation at 6.4%.

Monetary conditions

RBI has shifted its monetary policy direction from being very accommodative to being hawkish with the out of turn 40bp hike in reverse repo rate to 4.4% and increase in CRR by 50bp to 4.5%, which implies that the central bank is on the path of liquidity normalisation. Given the upside surprises on inflation, the RBI is leaning more towards its objective of inflation control rather than continued focus on reviving demand and growth.

During the month of April liquidity in the banking system has remained in excess, averaging at Rs.7.5 tn. The large liquidity overhang in the form of daily surplus funds parked under the SDF (average of Rs.2.0 trn resulted in average overnight call rate dipping below the SDF rate at 3.75%). With the 50bp hike in CRR the RBI will be sucking out Rs.870bn of surplus liquidity. Higher than projected inflation will likely see further rate hike, and liquidity withdrawal to counter weakening impulses on the Indian rupee, arising from a stronger US dollar.

External economy

The external sector has remained resilient despite the global headwinds. India exports at USD 422bn surpassed the USD 400 bn export target for FY22, significantly driven by rise in global commodity prices and post Covid revival in global trade. However, with global crude prices rising to over USD 100/bbl, imports at USD 612bn surpassed revival in exports. Overall, exports grew by 45% YoY in FY22 while imports expanded by 56%. Thus, trade deficit stood at USD190bn or 6% of GDP Net services exports, led by IT services rebounded by 20% to over USD 100bn in FY22 which is counterbalancing the widening trade deficit and moderating external capital flows. Net FDI flows have remained robust and long term flows such as ECB also remain stable. Indias foreign exchange reserves at USD 598bn remain sizeable and provides a strong buffer against global disturbances.

Source: International Monetary Fund, Reserve Bank of India

Discussion on Businesses and Operational Performance

The corporate structure of JM Financial Group (the "Group") as of March 31,2022 is presented below:

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. During the year, the underlying businesses of the reportable segments have been reclassified. The purpose of the said reclassification of business segments is primarily to create a client-aligned business structure to enable deeper focus, faster growth and a seamless execution of the organizations digital strategy. Accordingly, our business segments are as follows:

• Investment Bank (IB): 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. The IB segment caters to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance.

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

- Wholesale mortgage which includes commercial real estate lending to real estate developers

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

• Alternative and Distressed Credit comprises the asset reconstruction business and alternative credit funds and

* Asset management, Wealth management and Securities business (Platform AWS) provides an integrated investment platform to individual clients and comprises wealth management business, broking, PMS and mutual fund business.

The Board of Directors has approved the scheme of demerger of the undertaking ("Scheme") comprising of Private Wealth and Portfolio Management Services ("PMS") (catering to large clients) along with the investment in JM Financial Institutional Securities Limited (which houses the institutional equities business) from its wholly owned subsidiary, JM Financial Services Limited to the Company. The Scheme shall be subject to regulatory and other approvals. Accordingly, once demerged the Private Wealth and PMS divisions shall be classified under the Investment Bank segment.

Our business segments are discussed in detail below:

Investment Bank (IB)

Impact of Covid-19 on the IB segment

During the financial year 2021-22, the world was hit with the second and third waves of Covid-19 led by the Delta and the Omicron variants respectively. Governments and municipalities 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. Globally these measures have also impacted supply chains and resulted in inflation. These measures led to volatility, uncertainty and impacted 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 IB products and services.

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 we shall continue to provide solutions to our clients. We shall strive to deliver the entire firm to our clients and look to have a larger wallet share. Our pipeline of transactions is extremely healthy and subject to market conditions, we would look to execute the same over the course of FY 2022-23.

Market Environment Primary Market

The breakup of funds raised in public markets during FY 2021-22 as compared to the FY 2020-21 is as follows:

Capital market

FY 2021 - 22

FY 2020-21

FY 2021-22 v/s FY 2020-21

No. Rs. in Crore No. Rs. in Crore In %
Initial Public Offering ("IPO") 53 1,11,547 30 31,267 257%
IPO on the SME Platform 69 953 28 244 291%
FPO 1 4,300 1 15,000 (71%)
SME FPO 1 14 1 28 (50%)
InvIT 6 15,442 1 25,215 (39%)
REIT - - 2 8,300 -
Rights Issue 10 25,301 20 64,256 (61%)
Qualified Institutions Placement ("QIP") 29 28,532 32 81,731 (65%)
Offer for Sale ("OFS") 22 14,530 35 28,428 (49%)
Total Equity Raised 191 2,00,619 150 2,54,469 (21%)
Total Debt raised through Public issue 27 10,492 18 10,488 0%
Total Amount Raised 218 2,11,111 168 2,64,957 (20%)

(Source: Prime Database as on April 1,2022)

Equity capital markets in India witnessed another year of strong momentum especially with corporates tapping public markets through IPOs. 53 corporates raised over Rs.1 lakh Crore through IPOs in FY22 as compared to 30 corporates that raised a total of ~ Rs.31,000 Crore in FY21, an increase of over 250% in one year.

JM Financial also continued its dominance in Equity Capital Markets, successfully executing over 50 transactions in the financial year. Our commitment and deep understanding of the Indian markets have helped us achieve our clients goals. We expect the capital markets to remain volatile in FY 202223. We would look at opportune windows to consummate our transactions.

Mergers and Acquisition

During FY 2021-22, 845 deals were announced as compared to 541 deals in fY 2020-21. The total value of the deals announced was Rs.9 lakh Crore for FY 2021-22 (this does not include 220 deals for which deal values were not available) as against Rs.7 lakh Crore for FY 2020-21 (this does not include 129 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 2020-21 and FY 2021-22 FBIL website i.e. https://fbil.ora.in/

Domestic v/s Cross-Border Activity

During FY 2021-22, domestic transactions contributed 37% to the overall M&A activity with deal value aggregating Rs.3.3 lakh Crore compared to 36% in FY 2020-21 and a deal value aggregating Rs.2.5 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 2020-21 and FY 2021-22 FBIL website i.e. https://fbil.orq.in/

Private Equity

In FY 2021-22, private equity deals worth Rs.5,55,963 Crore were announced compared to Rs.2,72,097 Crore in FY 2020-21 (Source: JM Financial Estimates)

The sectors that experienced the maximum interest from private equity investors include IT/ITES, Consumer Tech and Financial Services.

Operational Performance of Investment Banking Business

During FY 2022, we concluded the following equity capital market transactions:

* Book Running Lead Manager to the IPO of;

- Sona BLW Precision Forgings - Rs.5,550 Crore

- FSN E-Commerce Ventures - Rs.5,350 Crore

- Aditya Birla Sun Life AMC - Rs.2,768 Crore

- Macrotech Developers - Rs.2,500 Crore

- Sapphire Foods India - Rs.2,073 Crore

- Clean Science & Technology - Rs.1,546 Crore

- Krsnaa Diagnostics - Rs.1,213 Crore

- CMS Info Systems - Rs.1,100 Crore

- C.E. Infosystems - Rs.1,040 Crore

- Go Fashion (India) - Rs.1,014 Crore

- Shyam Metalics and Energy - Rs.909 Crore

- India Pesticides - Rs.800 Crore

- Rolex Rings - Rs.713 Crore

- AGS Transact - Rs.680 Crore

- Data Patterns (India) - Rs.650 Crore

- Tega Industries - Rs.620 Crore

- Tatva Chintan Pharma Chem - Rs.500 Crore

* Advisors to the Private Placement in:

- API Holdings - Rs.2,600 Crore

- Gupshup Technologies - Rs.1,800 Crore

- Car Dekho - Rs.1,500 Crore

* Managers to the OFS & Block Deals in;

- TVS Motor - Rs.1,506 Crore & Rs.605 Crore

- MTAR Technologies - Rs.526 Crore

- National Stock Exchange of India - Rs.485 Crore

- Accelya Solutions India - Rs.248 Crore

- Suprajit Engineering - Rs.237 Crore

- Go Fashion (India) - Rs.180 Crore

- Orchid Pharma - Rs.160 Crore

- Stove Kraft - Rs.160 Crore & Rs.75 Crore

- Metropolis Healthcare - Rs.135 Crore

* Book Running Lead Managers to the QIP by:

- IDFC First Bank - Rs.3,000 Crore

- Bank of India - Rs.2,550 Crore

- Canara Bank - Rs.2,500 Crore

- Route Mobile - Rs.867 Crore

- Saregama India - Rs.750 Crore

- HFCL - Rs.600 Crore

- Gokaldas Exports - Rs.300 Crore

• Book Running Lead Managers to the Rights Issues by:

- Bharti Airtel - Rs.20,987 Crore

- Sundaram Finance Holdings - Rs.355 Crore

• Buyback:

- Tata Consultancy Services - Rs.18,000 Crore

- NIIT - Rs.237 Crore

- Insecticides India - Rs.60 Crore

• Delisting:

- Prabhat Dairy - Rs.492 Crore

Mergers & Acquisitions and Private Equity Syndication

JM Financial continued its momentum as one of the most successful investment banks in the Indian M&A space having announced 14 M&A transactions with a total deal value of ~ Rs.71,545 Crore during FY 2021-22.

(Source: Mergermarket as on April 5, 2022).

Some of the marquee M&A transactions where JM Financial was an advisor during FY 2021-22 include:

• Financial Advisor in connection with the family arrangement involving the TVS Group;

• Lead M&A Advisor to API Holdings and Docon Technologies, and Manager to the Open Offer to the shareholders of Thyrocare Technologies;

• Financial Advisor to Heineken for acquisition of 14.99% stake in United Breweries;

• Exclusive Financial Advisor to the TVS Group on acquisition of ZF Friedrichshafen AGs 49% shareholding in Brakes India;

• Financial advisor to Escorts on strategic investment from Kubota Corporation, Japan in Escorts;

• Financial and Transaction Advisor to IL&FS Group on sale of stake in IL&FS Environmental Infrastructure & Services and its subsidiaries to EverEnviro Resource Management;

• Advisor and Manager in reiation to the ongoing open offer to the shareholders of Eveready Industries;

• Exolusive Finanoial Advisor to Sundaram Asset Management Company for the purchase of the Indian asset management businesses of Principal Group, USA;

• Financial and Transaction Advisor to IL&FS on sale of stake in TerraCIS Technologies;

• Exclusive advisor to GMR Infrastructure (GIL) on its strategic group restructuring involving vertical split demerger of its Non-Airport Business (Energy, EPC, Urban Infrastructure, etc.) into GMR Power and Urban Infra;

• Exclusive Manager to the Open Offer to the public shareholders of Mphasis Limited by BCP Topco IX Pte. Ltd.;

• Financial Advisor in connection with a scheme of arrangement involving Orient Refractories and certain group companies;

• Financial and Transaction Advisor to the IL&FS on sale of IL&FS stake in ONGC Tripura Power Company;

• Transaction Advisor and Manager to the Open Offer to the public shareholders of Just Dial;

• Exclusive Financial Advisor to the Open Offer to the equity shareholders of Timex Group India;

• Financial Consultant to Vini Cosmetics on Sale of majority stake to KKR;

• Exclusive Financial Advisor to Calibre Chemicals and its promoters on controlling stake sale to Everstone Capital;

• Financial Advisor to Blackstone on stake sale in S H Kelkar to Firmenich;

• Financial Advisor to Honasa Consumer Private Limited for acquisition of Bblunt;

• Fairness Opinion to the board of HDFC Life Insurance Company for 100% acquisition of Exide Life Insurance Company;

• Fairness Opinion to the board of Shriram City Union Finance (SCUF) for the merger of SCUF with Shriram Transport Finance Company;

• Fairness Opinion to the board of Equitas Holdings w.r.t the proposed amalgamation with Equitas Small Finance Bank;

• Fairness opinion to the board of Saurashtra Cement (SCL) on amalgamation of Gujarat Sidhee Cement with SCL;

• Fairness Opinion on share exchange ratio on amalgamation of Gangavaram Port with Adani Ports and Special Economic Zone;

• Fairness opinion to the board of Kalpataru Power Transmission (KPTL) on amalgamation of JMC Projects into KPTL.

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 technology platforms.

Despite some impact of lockdowns and restricted movements during the year, technology helped the team to work seamlessly and efficiently even from home. Accelerated use of technology in the day-to-day functional areas helped 90% of the staff to operate from home during lockdowns and restrictions; 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.

Indian Equity markets have been volatile given concerns around rising inflation, hence rising interest rates, supply side constraints given sporadic lockdown in China, Russia-Ukraine conflict endangering global trade, however we expect Indian markets to do relatively better, given the domestic household liquidity. Equity Inflows in mutual funds have averaged Rs.250bn/month, with SIP inflows at Rs.120bn/month and we expect the same to remain stable.

Leverage Products

Our portfolio under this segment can be broadly classified into the following: (i) Capital markets lending; (ii) Bespoke finance; (iii) Wholesale mortgage (overflow) lending; and (iv) Financial institutional financing (v) Retail Mortgage (including purchase of pool of assets and retail mortgage lending).

Capital Markets lending

Our Capital Market Lending group offers margin-funding, loans against shares, and other securities to meet the fund requirements of various categories of clients inter-alia Retail, High networth individuals, Hindu Undivided Families and Corporate entities. The group also provides finance for investment in primary market issues as well as ESOP and mutual fund schemes.

Loans under this segment are typically in the nature of shortterm advances and primarily cater to the funding requirements of clients under the broking and wealth management businesses. The strong synergies within our businesses enable cross-selling of these financial products.

The third wave of the pandemic, though more widespread, did not lead to a proportionate increase in hospitalizations and hence did not have a material impact on demand drivers. Vaccination coverage remains crucial to containing the severity of future surges in infections. We managed to ensure smooth banking, risk and other capital market related operations with help of digitalization and support from banking partners and offices have resumed with the setting in of normalcy.

The capital market loan book for March 31, 2022 stood at Rs.834 Crore as compared to Rs.851 Crore as at March 31,2021.

Bespoke Finance

Our Bespoke finance business provides customized financing solutions to corporates and promoters under the following broad categories:

Structured Finance 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; alternatively, 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 through the share purchase route, 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.

The Bespoke finance book as at March 31, 2022 stood at 4,287 Crore as compared to Rs.2,092 Crore as at March 31, 2021. During FY2021-22, the Group focused on profitable short-term transactions and deployment of capital to support franchise clients.

Going forward, we seek to drive business through sustained engagement with clients and expect that there will be more opportunities to grow the lending business on the back of the investment banking franchise in the next few quarters and we particularly stand to benefit given our overall low leverage and strong balance sheet position.

Financial Institutional Financing (FIF)

Our Financial Institution finance business provides customized credit facilities to Financial Institutions (FIs). FIF specializes in underwriting loans to FIs towards their onward lending program, such credit facilities are provided to NBFIs, who are rated between BBB and AA-. The strategy is to partner with firms which have high-quality investors part of their cap table with strong management team and proven business model. We are intending to build a healthy loan book and a diversified approach.

The FIF loan book as at March 31,2022 stood at Rs.440 Crore as compared to Rs.9 Crore as at March 31,2021.

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 are present in almost all the micro-markets in Mumbai and Pune. We have recently begun our Bangalore and NCR operations. In all the regions, where we are present, we are serving 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 achieving top line targets for the developers while optimizing the sales and marketing costs. Both the models share our customer centric approach.

Our operations through both the models are carried out through data driven approach. We mine multiple data points across sales and marketing functions. Since we track millions of data points continuously, our experience so far combined with our approach has allowed us to offer better experience to our customers and the developers associated with us. As we expand to different markets, we expect to turn them around even faster since we have learnt various lessons on achieving efficiencies faster in both the models.

Private Equity Fund Management Private Equity Fund Market Environment

In FY 2021-22, as per our estimate, the Private Equity (PE) investments were Rs.5,55,963 Crore (1,137 deals) as compared to Rs.2,72,097 Crore (843 deals) during FY 2020-21.

Year Private Equity Investment C in Crore) Number of Deals Average Deal Size C in Crore) Top Sectors where PE investments were made
FY 2021 22 555,963 1,137 535 IT/ITES, Consumer Tech and Financial Services
FY 2020 21 272,097 843 399 IT/ITES, Telecom and Retail

IT/ITES accounted for 35% of the total PE investments in FY 2021-22. Other sectors which witnessed high activity in terms of deal value were Consumer Tech and Financial Services accounting for 31% and 8% respectively of the total PE investments.

Total PE exits were Rs.2,33,535 Crore (167 deals) in FY 202122 as compared to Rs.44,743 Crore (123 deals) in FY 2020-21. Strategic and PE to PE transactions for unlisted companies, and secondary market transactions for listed companies were the preferred exit routes for PE Investors.

(Source: JM Financial estimates)

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.

Fund II is an India-focused, sector-agnostic private equity fund, with the primary objective 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 attractive investment opportunities in early to growth stage companies that are in their early phase of expansion.

Key sectors of interest include financial services, consumer, manufacturing, technology and others (logistics, agri-allied sectors etc.). Fund II has finalized ten investments and is fully deployed. In addition, Fund II has completed a partial divestment from one of its portfolio companies.

During December 2021, JM Financial India Growth Fund III ("Fund III") completed its first closing. As of March 31,2022, Fund III has finalized three investments, API Holdings Private Limited, Aarman Solutions Private Limited, and BigHaat Agro Private Limited and continues to evaluate a strong pipeline of investment opportunities in its target segment. Similar to Fund II, Fund III is an India-focused, sector-agnostic private equity fund, with the primary objective to achieve superior risk-adjusted returns by investing growth capital in dynamic and fast-growing, small to mid-market Indian companies.

In addition to the two operating Funds, JM Financial also managed the JM Financial India Fund ("Fund I"), a 2006 vintage (i.e. Final Close) India focused private equity fund. This Fund raised capital of Rs.952 Crore and has successfully exited from all of its portfolio companies (including one partial exit) and has distributed / appropriated an aggregate of 203% in INR terms (before income tax related retentions and reserves), of the capital contribution.

Our Private Equity 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 macroeconomic threats.

Investment Grade, Debt Trading and syndication

The Investment Grade Group ("IGG") is a young business within the Group. It focuses on raising debt resources for corporate clients, investment advisory and active dealing in corporate bonds. In its second 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 in higher-rated corporates across both the private and public sector. The desk was ranked #3 for the FY21-22 in the Prime Database League Table. The total volume of issuances managed by the desk in the public issue space was Rs.4,000 Crore and achieved a market share of 35%.

2. Private Placement: In the private placement space, the team worked extensively in top rated corporates. The desk arranged ~ Rs.55,853 Crore in the private placement space across 32 issuances.

3. Sales and Distribution: The IGG continued empanelment across a marquee list of investors and on-boarded 500+ investors during the FY 2021-2022. The desk actively traded and acted as a market maker in corporate bonds. The year saw OTC trade volume of ~ Rs.22,668 Crore with ~ 774 counterparties and exchange traded volume stood at ~ Rs.475 Crore. The credit team provides credit views and monitoring of the credits that the team offers to the markets both from debt capital markets 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. IGG provides two way quotes for both 3Y and 10Y ETFs on the exchange. Also, the AMC had launched two more ETFs during the year for 5 years and 11 years maturities. IGG 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. It was also appointed as the Designated Market Maker for ICICI Prudential Mutual Funds ETF: ICICI Prudential 5 YEAR G-SEC ETF in FY22. The year saw trade volumes of ~ Rs.2,073 Crore in ETF (market making) with ~ Rs.931 Crore on the OTC platform and ~ Rs.1,142 Crore on the exchange.

Bondskart

BondsKart is Indias first intuitive investment platform that brings a rich variety of premium bonds and debentures to retail investors, in a matter of just a few clicks. Bondskart is available on both web and Android/ iOS apps. Our investors are offered exclusive access to our diverse portfolio that curates bonds with promising yields across large investor networks without compromising on the ease of buying and selling thereby ensures that our investors always have the edge. BondsKarts operational dynamics is based on relentless research, converting data into actionable insights for our investors, as it leverages our cutting edge analytics platform.

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 IB 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 infiation, 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; and

• 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.

Financial Performance of Investment Bank Segment

Rs. in Crore
Particulars FY 2021-22 FY 2020-21
Gross Income 1,272.56 1,083.79
Profit before tax 472.81 374.91
Profit after tax before noncontrolling interest 352.90 288.65
Profit after tax after noncontrolling interest 352.40 287.83
Segment Capital Employed 2,498.72 2,499.81

Mortgage Lending

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

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).

Impact of Covid-19 on Wholesale Mortgage Lending

The impact of Covid-19 on the wholesale mortgage segment was largely due to lockdowns faced in different geographies in different measures considering the severity of Covid-19 waves. During this period, there was a sharp fall in the footfalls in the projects impacting fresh sales. Further, it also led to delays in new project roll outs, movement of people, construction progress on sites due to labour shortage, valuation of collateral, potential impact on asset quality, moratorium to be provided and delay in commercial leasing decisions. The second and third wave also impacted the timeline involved in the resolution of some of the projects.

As on March 31, 2022, the total loan book for wholesale mortgage lending stood at Rs.6,286 Crore as compared to Rs.7,158 Crore as on March 31,2021.

Rapid consolidation in the sector continues whereby the amount of sales done by top developers as a percentage of overall sales is increasing gradually. Given the reduction of the inventory overhang across geographies and the rise in demand, developers are looking at acquiring new projects and new launches are expected to increase. In Mumbai Metropolitan region, we anticipate new launches on the back of the premiums paid for development of properties. This is expected to increase the demand for construction finance. We have further strengthened our processes on origination and monitoring of business based on learnings from experiences emanating out of the various uncertainties in the sector. We believe that these changes will further improve our business processes as we look to capitalise on the opportunities to grow our loan book.

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 offers the whole gamut of housing finance products including various kinds of home loans and loans against residential property. It leverages its key competencies i.e. underwriting, service and speed along with technology to develop a successful business model.

FY22 was a year of two halves for the housing finance business. We started the year in the midst of a fierce Covid-19 wave leading to heightened uncertainty in the business environment. Not only did new disbursements slow down considerably, but also the collection efficiencies and bounce rates deteriorated materially. Credit growth was flat year on year for housing finance companies in Q1FY22. Further, unlike the first wave, RBI did not offer a blanket moratorium facility to all borrowers. Instead, RBI extended the one-time restructuring guidelines on account of Covid -19 related stress (Resolution Framework 2.0) to retail and MSME borrowers. Fortunately, second Covid -19 wave peaked early during the first quarter. In addition, increasing vaccination coverage meant the impact of second wave on the economic activity was relatively shortlived. Second half of the year on the other hand witnessed strong credit demand and improved collection efficiency.

Despite the uncertain operational environment in the first half, JMFHLL continued to expand its branch network, thus demonstrating its long term vision to grow in this segment. JMFHLL expanded its branch network from 31 to 50 during 1HFY22. The investment helped as the demand bounced back in 2HFY22. JMFHLLs monthly disbursement run- rate was more than 2 times in 2HFY22 versus a year ago. As a result, the loan book increased from Rs.431 Crore as of March 31, 2021 to Rs.819 Crore as of March 31, 2022. More importantly, JMFHLL was able to maintain a tight grip on the credit quality. Collection efficiency is back to 99% and GNPA is 0.71 % of the AUM.

Education Institution Loans

The year gone by continued to remain difficult for education institutions business following a tumultuous FY 2020-21. The year started with the devastating second wave of Covid-19 and wiped out the school calendar until August 2021. Education Institutes slowly started to get back from September 2021 with higher grades resuming physical school. While things were starting to gain momentum, January 2022 saw the third wave of Covid-19 slowing down the pace of recovery of the education sector. However, both new disbursements and collections continued to show improvement due to the shortlived nature of the wave. With resumption to full capacity across all segments of the education sector pan India, collection efficiency of the portfolio improved to over 98% in March 2022.

Our experience of the past two years has demonstrated that much like any other sector of the economy larger institutions in the education sector have also gained at the behest of smaller ones. Going forward, larger education institutions are likely to gain greater enrolment not only due to closure of smaller institutes but also due to higher number of admissions in pre-primary and primary grades which anxious parents held back over last two years. The EIL business strategy is being realigned to reflect this shift by rebalancing the new business towards larger institutions to ride the next phase of growth.

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 inflation, 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 2021-22 FY 2020-21
Gross Income 1,191.04 1,217.72
Profit before tax 375.70 477.50
Profit after tax before noncontrolling interest 270.94 356.27
Profit after tax after noncontrolling interest 116.54 164.80
Segment Capital Employed 3,969.60 3,787.86

Alternative and Distressed Credit Busines

Amidst persisting challenges impacting the ARC sector, Reserve Bank of India (RBI) announced Committee for Asset Reconstruction Companies (ARCs) to undertake a comprehensive review of the working of ARCs and recommend suitable measures to meet the growing requirements of the financial sector. The recommendations made by the Committee in its report is a welcome step towards strengthening and streamlining of ARC framework in India. The key recommendations of the Committee inter alia, are as follows:

• Acquisition of NPAs from all the regulated entities;

• Minimum requirement for SR holding by ARCs to be the higher of 15% of the lenders investment in SRs or 2.5% of the total SRs issued;

• Removing obstacles of debt aggregation, if 66% of lenders (by value) decide to accept an offer by an ARC, the same may be binding on the remaining lenders and it must be implemented within 60 days of approval; and

• Allowing ARCs to use SEBI registered Alternative Investment Funds (AIFs) as an additional vehicle for facilitating additional funding and restructuring of debt acquired by them.

These recommendations, if implemented, will be instrumental in improving the positioning of the ARCs as an important tool for resolving the NPA situation.

The opportunity for ARCs and other distressed asset investors shall improve as Ministry of Finance has notified Housing Finance Companies (HFCs) registered under the National Housing Bank Act, 1987 and having assets worth Rs.100 Crore and above as Financial Institution under the SARFAESI Act, 2002. This will allow ARCs to purchase NPAs from HFCs. With the recent RBIs circular for NBFCs (effective from October 1, 2022), it is stipulated to implement tighter NPAs norms which may lead to spike in NPAs for NBFCs. This will expand the market for ARCs.

Further, to increase investment in stressed assets, SEBI amended the AIF Regulations, to introduce Special Situation Funds (SSF), a sub-category under Category I AIF, which shall invest only in defined ‘stressed assets which includes SRs issued by ARCs.

The Government while recognizing the role of MSMEs and the challenges faced by them due to the pandemic, introduced Pre-packaged Insolvency Resolution Process for MSMEs with minimum threshold of Rs.10 lakh up to Maximum Rs.1 Crore. It is expected that this will facilitate speedy resolution process for the smaller NPAs as the entire process is likely to be completed within a period of 120 (one hundred and twenty) days from the commencement date.

We have a proven track record as one of the consistent top performers in the industry in terms of recovery, resolution and profitability. During the financial year 2021-22, Covid-19 impacted operating units under restructuring 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 lock down has also impacted resolution of assets. The delay in the cash flow of the underlying companies has impacted the cash flows of the distressed credit business. However, the focus on resolutions over growth in the FY 2021-22 yielded significant recoveries of Rs.2,041 Crore through settlement, enforcement of security and CIRP process. These recoveries helped us to prudently manage our ALM by pre-paying external liabilities and deleveraging the balance sheet. Despite the challenges in funding ARCs, JM Financial Asset Reconstruction Company Limited (the "JMFARC") raised an amount of Rs.792 Crore though external borrowings.

We have a team of professionals from diverse backgrounds who are experienced in banking, corporate debt restructuring and bankruptcy. We work closely with diverse sector-specific professionals and sector-specialised firms for revival of the acquired units.

During the year, we acquired dues of Rs.2,092 Crore including aggregation of debt of one large account. Our investment strategy is to acquire quality assets at the right price and limiting the downside risk by ensuring sufficient underlying security value. Our investment approach is based on a disciplined due diligence process that evaluates risks while also identifying various measures to increase value from our investments.

Till March 31,2022, we have acquired total outstanding dues of Rs.63,757 Crore at a gross consideration of Rs.18,138 Crore. Security Receipts worth Rs.760 Crore were redeemed during the year. The outstanding Security Receipts stood at Rs.10,936 Crore as on March 31,2022. The outstanding contribution of JM Financial Asset Reconstruction Company Limited stood at Rs.3,160 Crore as on March 31,2022. We have had 65 exits (trusts) spread across sectors which we believe has helped us in developing strong expertise in resolving distressed assets.

With normalcy approaching, we look forward to evaluate opportunities to grow our business and enter FY 2023 with a positive outlook. Our acquisition strategy has primarily been towards full cash acquisitions and going forward too, the focus will be on similar lines. However, the future acquisition focus will be more on a co-investment model with financial investors and strategic partners to ensure growth and at the same time ensuring sustainable and moderate level of leverage. In the coming year, we shall also focus on acquiring retail portfolios of optimal sizes at right prices.

Our alternative and 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 inflation, 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; and

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

Financial performance of Alternative and Distressed

Credit Business

Rs. in Crore
Particulars FY 2021-22 FY 2020-21
Gross Income 522.09 388.83
Profit before tax 236.10 93.70
Profit after tax before noncontrolling interest 177.39 73.11
Profit after tax after noncontrolling interest 107.29 46.38
Segment Capital Employed* 1,854.95 1,651.31

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

Asset management, Wealth management and Securities business (Platform AWS)

Impact of Covid-19

During the financial year 2021-22, the second and third waves of Covid-19 impacted local travel, public gatherings and participation in physical meetings, as well as closure of non-essential services. These measures led to volatility, uncertainty and impacted economic activities. The Covid-19 situation resulted in delays in account opening, slow-down in expansion of franchisee business and other business development activities.

Equity Brokerage Group

The Equity Brokerage Group offers research based equity advisory and trading services to high net-worth individuals, corporates and retail clients. The Equity Brokerage Group has its presence in 185 top cities in India through a network of 34 branches and 634 locations. The combination of branches and franchisees has helped us in achieving a de-risked business model and a widespread presence.

We shall continue to focus on strengthening our branch and franchisee network. We have expanded our reach and visibility by opening additional branches at Kolkata, Pune, Chennai

Ludhiana, etc., and are focusing on increasing our presence in eastern India. The group provides service to clients with 300+ sales team spread across the country. During FY 2021-22, 63% of its clientele volume was contributed through online trading.

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

The year on year 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 2021-22 FY 2020-21
Cash Market 78,413 70,695
Derivative 71,02,062 27,25,616
Total 71,80,475 27,96,311

(Source: SEBI, NSE, BSE)

During FY 2021-22, our average daily volume has grown to Rs.15,453 Crore as compared to Rs.11,754 Crore in FY 202021. During Q4FY22, our average daily volume has crossed Rs.20,000 Crore.

Digital Business Group

Digital Business Group ("DBG") is a new age consumer internet business that digitally caters in the financial services. With an entrepreneurial and customer centric mind-set, our goal is to simplify the financial journey for everyone. DBG team believes that constant experimentation, strong execution and customer centric approach are the stepping stones for a successful business.

Our digital transformation journey combines the strength of data and intelligence for smart and innovative services keeping our focus on the clients. Our pipeline of digital initiatives are spread across broking, investments, advisory, lending and other financial products.

Wealth Management

The Wealth Management Group has been divided into three (1) Elite Wealth Management Group (2) Private Wealth Management Group and (3) Retail Wealth Group respectively. The Wealth Management verticals cater to both 1) Millennials, clients creating new wealth, young entrepreneurs, senior executives of corporates, tech-savvy professionals; and 2) ultra and high net-worth investors, corporates, banks, and institutions. These clients are serviced through separate teams.

The Elite Wealth Management division focuses on clients with a net worth in the range of Rs.1 Crore - Rs.100 Crore and is present in eight cities. The segment has a team of 92 wealth

relationship managers as of March 31, 2022. It caters to mass affluent HNIs looking for regular income and wealth preservation, first generation entrepreneurs who are looking to create alpha over their investments, top executives of corporates, millennials on their journey to create wealth, and tech savvy professionals.

Our endeavour is to be the second relationship manager to our clients next only to banks when it comes to their personal finances. The 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 a robust online platform for client on-boarding, execution of transactions, and to have a unified view of all their investments with us. The Elite Wealth Management Group has AUM* of Rs.1,030 Crore in the full year of operation.

Private Wealth Management Group is an arm exclusively focuses on Ultra HNI families, Corporates and Institutions. It has an open architecture with regards to products, manufacturers and ideas. The group has a strong team of wealth advisors, focused to meet client requirements by providing them unbiased investment solutions.

During FY 2021-22, the segment has mobilized ~ Rs.15,000 Crore in various products like equity and debt mutual fund schemes, corporate fixed deposits and bonds. Private Wealth Management Group AUM* stands at Rs.61,211 Crore as on March 31,2022.

Retail Wealth Group has a network of over 7,300 active Independent Financial Distributors ("IFDs") who distribute various financial products such as mutual funds, fixed deposits, IPOs, and bonds to retail and high net worth customers across the country. During FY 2021-22, the segment has mobilized more than Rs.7,800 Crore in various corporate fixed deposits and bonds and over Rs.1,600 Crore in various equity and debt mutual fund schemes. Retail Wealth Management Group AUM* stands at Rs.20,202 Crore as on March 31,2022, as compared to Rs.16,521 Crore as on March 31,2021. The segment added over 1,500 new partners, majority of them are qualified professionals like Chartered Accountants and senior bankers.

*Assets under Management (AUM) comprises distribution assets and advisory assets, as applicable

Asset Management

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 Noninstitutional Investors. The average assets under management (AAUM) of JM Financial Mutual Fund for FY 2021-22 were

2,139 Crore with Equity AAUM Rs.555 Crore, Debt AAUM Rs.227 Crore and Liquid AAUM 1,357 Crore.

In a bid to grow its AUM and folio base, we have on-boarded senior hires across functions such as the Investment Team, Products, Sales, Risk, Operations and Technology. The engagement efforts are picking pace and we have been rebuilding relationships with several key distributors.

Our Platform AWS business is subject to threats which include:

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

• maoro-eeonomio faotors suoh as in^ation, abnormal monsoon, geopolitical tensions, global economic threats impacting the business, economic situation, liquidity situation in the market; and

• business speoi^o threats suoh as inoreased oompetition 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 Platform AWS Business

Rs. in Crore
Particulars FY 2021-22 FY 2020-21
Gross Income 662.27 501.63
Profit before tax 128.38 66.10
Profit after tax before noncontrolling interest 90.50 49.06
Profit after tax after noncontrolling interest 96.27 50.06
Segment Capital Employed 767.08 718.16

Analysis of Financial Performance

Consolidated Financial Performance

The consolidated gross income of the Company stood at Rs.3,763.28 Crore as against Rs.3,226.63 Crore in the previous year, registering an increase of 16.63%. Profit before depreciation and amortisation expense, finance cost and tax expense during the year stood at Rs.2,467.55 Crore as against Rs.2,217.47 Crore in the previous year. Pre-Provision Operating Profit during the year stood at Rs.1,696.40 Crore as against Rs.1,323.61 Crore in the previous year, thereby registering an increase of 28.16%. The Profit before and after tax stood at Rs.1,348.04 Crore and Rs.773.16 Crore respectively as against Rs.1,066.85 Crore and Rs.590.14 Crore in the previous year. The profit in the current year increased by 31.01% to Rs.773.16 Crore from Rs.590.14 Crore in the previous year primarily due to increase in the performance of Investment Bank, Alternative and distressed credit and Platform AWS during the year.

The following table describes consolidated income during the year:

Rs. in Crore
Particulars For the Year ended March 31, 2022 For the Year ended March 31,2021
Interest Income 1,850.71 1,908.54
Fees and Commission Income 816.96 628.53
Brokerage Income 330.54 256.61
Net gain on fair value changes 588.59 311.91
Net gain on derecognition of financial instruments carried at amortised cost 0.05 6.60
Other Operating Income 120.31 85.28
Other Income 56.12 29.16
Total 3,763.28 3,226.63

Interest Income

Interest Income from lending activities continued to be a major contributor to the gross revenue at Rs.1,850.71 Crore as against Rs.1,908.54 Crore during the previous year, constituting around 49.18% of the total revenue. Decrease in interest income is on account of decline in yields due to change in loan book mix during the year. The decrease was partially offset by increase in interest income on account of higher IPO financing during the year.

Fees and Commission Income

Fees and commission earned during the year were Rs.816.96 Crore as against Rs.628.53 Crore during the previous year, constituting 21.71% of the total revenue. The increase is primarily on account of 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.330.54 Crore as against Rs.256.61 Crore during the previous year, constituting around 8.78% 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.588.59 Crore as against Rs.311.91 Crore during the previous year, constituting around 15.64% of the total revenue. This includes primarily realised gains on de-recognition as well as 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 increase in realised gains on de-recognition as well as fair value gains on investments in security receipts, equity shares and mutual funds 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.0.05 Crore as against Rs.6.60 Crore during the previous year. 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.176.43 Crore as against Rs.114.44 Crore during the previous year, constituting around 4.69% of the total revenue.

The following table describes consolidated expenditure during the year:

Rs. in Crore
Particulars For the Year ended March 31, 2022 For the Year ended March 31, 2021
Finance costs 1,081.73 1,110.87
Impairment on Financial Instruments 348.36 256.76
Employee Benefits Expense 547.81 440.83
Depreciation and amortisation expense 37.78 39.75
Other expenses 399.56 311.57
Total 2,415.24 2,159.78

Finance Cost

The decrease in finance cost from Rs.1,110.87 Crore in the previous year to Rs.1,081.73 Crore in the current year is on account of decrease in the cost of borrowings which is partially off-set by increase in average borrowings during the year.

Impairment on Financial Instruments

Impairment on Financial Instruments stood at Rs.348.36 Crore as against Rs.256.76 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 24.27% is mainly on account of increase in the head count and 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 4.96% is on account of lower capital expenditure.

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 44.08% 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 increased by 13.11% primarily attributable to increase in rates and taxes, travelling and conveyance expenses and advertisement expenses.

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

Rs. in Crore

FY 2021-22

FY 2020-21

Amount % to total Amount % to total
Segment Revenue Investment Bank (IB) 1,272.56 33.82% 1,083.79 33.59%
Mortgage Lending 1,191.04 31.65% 1,217.72 37.74%
Alternative & Distressed Credit 522.09 13.87% 388.83 12.05%
Asset Management, Wealth Management & Securities Business (Platform AWS) 662.27 17.60% 501.63 15.55%
Others 243.28 6.46% 136.85 4.24%
Total Segmental revenue 3,891.24 103.40% 3,328.82 103.17%
Less:- Inter segmental revenue (127.96) (3.40%) (102.19) (3.17%)
Total revenue 3,763.28 100.00% 3,226.63 100.00%
Segment Results (Profit Before Tax)
Investment Bank (IB) 472.81 35.07% 374.91 35.14%
Mortgage Lending 375.70 27.87% 477.50 44.76%
Alternative & Distressed Credit 236.10 17.52% 93.70 8.78%
Asset Management, Wealth Management & Securities Business (Platform AWS) 128.38 9.52% 66.10 6.20%
Others 135.05 10.02% 54.64 5.12%
Total Results (Profit before tax) 1,348.04 100.00% 1,066.85 100.00%
Segment profit after tax (after non-controlling interest)
Investment Bank (IB) 352.40 45.58% 287.83 48.77%
Mortgage Lending 116.54 15.07% 164.80 27.93%
Alternative & Distressed Credit 107.29 13.88% 46.38 7.86%
Asset Management, Wealth Management & Securities Business (Platform AWS) 96.27 12.45% 50.06 8.48%
Others 100.66 13.02% 41.07 6.96%
Total Segment profit after tax (after noncontrolling interest) 773.16 100.00% 590.14 100.00%

 

Rs. in Crore
Segment Capital

March 31, 2022

March 31, 2021

Employed Amount % to total Amount % to total
Investment Bank (IB) 2,498.72 23.63% 2,499.81 25.98%
Mortgage Lending 3,969.60 37.55% 3,787.86 39.36%
Alternative & Distressed Credit 1,854.95 17.55% 1,651.31 17.16%
Asset Management, Wealth Management & Securities Business (Platform AWS) 767.08 7.25% 718.16 7.46%
Others 1,482.85 14.02% 966.47 10.04%
Total Capital Employed 10,573.20 100.00% 9,623.61 100.00%

Investment Bank (IB):

The Investment bank business registered revenue of Rs.1,272.56 Crore as against Rs.1,083.79 Crore in the previous year. During the year, the percentage of segment results to segment capital employed was 18.92% as against 15.00% in the previous year. This segment contributed 45.58% to our consolidated profit after tax.

Mortgage Lending:

This segment registered revenue of Rs.1,191.04 Crore as against Rs.1,217.72 Crore in the previous year. Percentage of segment results to segment capital employed in this segment was 9.46% as against 12.61% in the previous year. This segment contributed 15.07% to our consolidated profit after tax.

Alternative & Distressed Credit:

This segment registered revenue of Rs.522.09 Crore as against Rs.388.83 Crore in the previous year. Percentage of segment results to segment capital employed in this segment was 12.73% as against 5.67% in the previous year. This segment contributed 13.88% to our consolidated profit after tax.

Asset Management, Wealth Management & Securities Business (Platform AWS):

This segment registered revenue of Rs.662.27 Crore as against Rs.501.63 Crore in the previous year. During the year, the percentage of segment results to segment capital employed in the segment was 16.74% as against 9.20% in the previous year. This segment contributed 12.45% to our consolidated profit after tax.

Standalone Financial Performance:

On a standalone basis, gross income was higher at Rs.619.63 Crore for the year ended March 31, 2022 as against 374.41 Crore in the previous year, registering an increase of 65.50%. The profit before tax was higher at Rs.415.90 Crore as against Rs.216.83 Crore in the previous year, registering an increase of

91.81% and the profit after tax was higher at Rs.327.78 Crore as against Rs.175.23 Crore in the previous year, registering an increase of 87.06%. The profit in the current year increased primarily on account of increase in fee income from Rs.229.10 Crore in the previous year to Rs.349.01 Crore in the current year due to increase in deal closures in investment banking during the year. Net gain on fair value changes also increased from Rs.65.27 Crore in the previous year to Rs.117.06 Crore because of treasury activities and proceeds from QIP issue temporarily deployed in liquid mutual funds. Dividend received from subsidiaries also increased from Rs.16.43 Crore in the previous year to Rs.46.14 Crore in the current year.

Key Financial Ratios:

Ratios

Consolidated

Standalone

FY 2021-22 FY 2020-21 FY 2021-22 FY 2020-21
Interest Coverage Ratio 2.27 1.99 51.07 27.51
Current Ratio 2.06 1.91 15.09 13.27
Debt Equity Ratio 1.29 1.29 - -
Net Debt Equity Ratio 0.94 0.73 - -
Cost to Net Total Income Ratio 31.10% 32.59% 26.47% 34.13%
Net Profit Margin 26.37% 25.05% 52.90% 46.80%
Return on Equity (ROE)* 10.58% 9.17% 8.99% 5.42%
Return on Assets (ROA)* 4.24% 3.77% 8.32% 5.02%

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

Ratios where there has been significant change (i.e. change of 25% or more as compared to the immediately previous financial year) from FY 2020-21 to FY 2021-22:

Interest coverage ratio:

On a standalone basis, Interest coverage ratio as on March 31, 2022 stood at 51.07 as against 27.51 as on March 31, 2021. The increase is primarily on account of increase in profit after tax during the year. The profit after tax stood at Rs.327.78 Crore as against Rs.175.23 Crore in the previous year.

ROE and ROA:

On a standalone basis, the ROE and ROA for the year ended March 31,2022 were 8.99% and 8.32% as against 5.42% and 5.02% respectively for the year ended March 31, 2021 The increase is primarily on account of increase in profit after tax during the year.

Net Debt Equity Ratio:

On a consolidated basis, the net debt equity ratio as on March 31,2022 stood at 0.94 as against 0.73 as on March 31,2021. The increase is primarily on account of decrease in cash and cash equivalents during the year. (Refer Note 49 of the Notes to the Consolidated Financial Statements)

Resource Mobilisation

The financial year, which started with the struggle of pandemic woes was marked towards the end, with escalating geopolitical situation in the Europe region. The lingering war and sanctions, elevated oil and commodity prices, prolonged supply chain disruptions, along with monetary policy shifts in major economies, and renewed waves of Covid-19 across countries, posed downside risks to the growth and upside risks to the inflation outlook.

With inflation turning out to be persistent and broad-based and well above targets, major advanced economies (AEs) quickened the pace of unwinding of their ultra-accommodative monetary policies. A number of emerging market economies (EMEs) have been in a tightening mode since 2021, and more are expected to follow. Sovereign bond yields in major AEs had hardened substantially in anticipation of a faster and steeper tightening of policy rates.

Consumer price index (CPI) inflation in India edged above the upper tolerance band in February - March 2022. RBI, in its last April MPC; sounded hawkish, although the stance was accommodative; it shifted its focus to inflation over growth. Post policy, market participants have started building up expectations of rate hikes in the June policy measures.

FY 2021-22 witnessed the benchmark 10 year G-Sec rates increase substantially year on year. The markets have witnessed a highly volatile movement in rate given micro and macro scenarios within and outside India.

Source: www.rbi.org.in, www.fpi.nsdl.co.in, JM Financial Analysis, Others

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 31,2022 stood at Rs.13,458 Crore versus Rs.12,366 Crore a year earlier (an increase of approximately Rs.1,092 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.9,952 Crore versus Rs.9,618 Crore a year earlier. The Groups long term: short term ratio stood at 74:26. The Groups shortterm borrowing as on March 31,2022 stood at Rs.3,506 Crore compared to Rs.2,748 Crore as at the previous year end. As on March 31, 2022, the liquidity in the Group stood at Rs.3,637 Crore. During the financial year ended March 31, 2022, the

Group raised Rs.3,818 Crore as long term borrowings from banks, insurance and mutual funds, out of which Rs.500 Crore were raised through public issue of NCDs. Respective companies in the Group have focused on maintaining righteous ALM, elongating maturities, 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 agencies 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 Home Loans Limited AA / Stable AA / Stable -
JM Financial Services Limited AA / Stable - -
JM Financial Institutional Securities Limited AA / Stable
JM Financial Capital Limited AA / Stable - -
JM Financial Properties & Holdings Limited AA / Stable
JM Financial Asset Reconstruction Company Limited AA- / Stable AA- / Stable

Respective companies in the Group have taken dual rating for the Commercial Papers and Public issue of NCD (NonConvertible Debenture) issuances. Dual ratings are also required by certain class of investors as part of their investment policies/charter.

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 and transactions and an increasingly stringent regulatory framework, the financial services industry is subject to continuously evolving legislative and regulatory environment.

The Group provides a range of products and services in the financial services space. Its segments include (a) Investment Bank (IB); (b) Mortgage Lending; (c) Alternative and Distressed Credit; and (d) Asset management, Wealth management and Securities business (Platform AWS). 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 the 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 the Board of Directors, 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 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, cyber security risk, competition risk and risks pertaining to the Covid-19 pandemic.

A team of experienced and competent professionals, at business level as well as the 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.

The Board of Directors of the Company has constituted Risk Management Committee which frames, implements and monitors the risk management plan including functions relating to cyber security, assess the risks, decide the measures to mitigate the risks. 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.

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.

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
We are in the business of lending against mortgages and providing securities backed loans. prospective credit proposals have been stipulated as a part of risk mitigation.
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 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.
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.
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 or equipment, fraud, inadequate training and Well defined policies, operational processes and systems have been devised for our operations. Regular audits are done by internal auditors to monitor the adherence of policies and processes. We also get our systems audited periodically by competent external audit firms.
employee errors. Our businesses are dependent on people and processes. Shortcomings or failure in internal processes or systems A maker/checker mechanism has been put in place to ensure compliance with laid down systems and procedures in all areas of functioning.
may have material adverse impact on the financial position as well as affect its operation. Also, the key management team consists of professionals with 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.
Reputation risk is a very high risk and can cause long term and sometime irreparable loss of business/ revenue. 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.
Regulatory and Compliance Most of our businesses as well as the Company itself operate in strongly regulated business segments.
Risk 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-avis the regulators. We have a team of experienced professionals reporting to Group Head - Compliance, Legal & Company Secretary which takes care of compliance with applicable laws, rules, regulations and guidelines affecting our businesses.
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. Our human resource policies
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. 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.
Cyber Security Risk Cyber risks include risks which could emanate from the failure or compromise of cyber resources / information technology. Cyber threats include phishing attacks, malware attacks, ransomware attacks etc. and can result in to loss of data, control over information systems and could result into adverse impact on the operations. We have adopted measures to mitigate the cyber security risks including through appropriate firewalls, providing regular advisories, providing training to users, review of the information technology assets
Risks pertaining to 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. We assess financial risks and vulnerabilities related to Covid-19 on an ongoing basis. 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.
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 firm such as credit risk, market risk, liquidity risk, operational risk, competition risk, reputation risk, regulatory and compliance risk, business continuity risk. 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 ^nancial 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 the 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

Corporate Social Responsibility (CSR) for the JM Financial group of Companies has been rising - upwards and onwards. Through the year, our Integrated Rural Transformation Programme has deepened its roots in the states of Maharashtra and Bihar, while also branching out through support to causes that transcend state boundaries. The groups CSR arm - JM Financial Foundation, set up in 2001, has evolved in strength and capacity, determined to bring about the desired transformation in Education, Sports, Health, Agriculture and Women Empowerment. The year went by, picking up pace once again with the communities and investing in creating measurable impact for the betterment of the lives led by lesser- privileged communities, near and far. The pandemic adversely impacted the CSR progression. However, the company, and the Group, patiently pursued and brought to fruition, the plans devised at the beginning of the year.

Our CSR initiatives, budgets and expenditures are administered by JM Financial Foundation as outlined in the CSR Policy, adopted by JM Financial Limited and all other JM Financial Group entities.

In conformity with our CSR Policy and considering the applicable provisions of the Companies Act 2013 and the amendments made thereunder from time to time, the CSR Committees of the JM Financial group entities have approved and allocated a total amount of Rs.27 Crore in the Financial Year 2021-22, of which JM Financial Limited has approved and contributed an amount of Rs. 2.01 Crore. The entire amount for the year has been utilized for expenditure towards the project - Jm Financial Shiksha Samarthan.

The subsequent sections highlight the projects undertaken during the year and the last, as per their respective Annual Action Plans, along with an update on the long-term projects initiated by the company and the group, prior to FY 2020-21.

Multi-year CSR project initiated and supported in FY 2021-22

JM Financial Shiksha Samarthan

The COVID-19 pandemic impacted everyone world-over in unprecedented ways, leading to a rapid loss of lives. While each of these losses has been a traumatic one, some have left an indelible mark on the minds and hearts of young children who have lost a parent or both. This loss has not just led to an emotional drain but also made them vulnerable to quitting their schools for want of an affordable life. JM Financial initiated Shiksha Samarthan with the objective of restoring continuity in education for children (up to grade 12), who have lost one or both parents to the pandemic. Under the project, we have supported 6,113 children for their annual academic fees. To this effect, JM Financial Foundation has inked agreements with the Social Justice and Empowerment Department (Government of Gujarat) and the Department of Women and Child Development (Government of Maharashtra). As a result, 2,502 private school students have been supported with direct fee remittance (up to Rs.50,000/- annually) and 3,611 students have been supported for their ancillary education needs (up to Rs.700/- per month per child).

2,502 private school students across 17 states and 3 Union Territories

Sr. No. State Students
1 Maharashtra 1,408
2 Gujarat 669
3 Andhra Pradesh 113
4 Telangana 100
5 Karnataka 83
6 Madhya Pradesh 30
7 Rajasthan 21
8 Uttar Pradesh 21
9 Tamil Nadu 19
10 Haryana 7
11 Uttarakhand 6
12 Delhi 6
13 Assam 5
14 West Bengal 4
15 Odisha 3
16 Bihar 2
17 Punjab 2
18 Chhattisgarh 1
19 Jammu & Kashmir 1
20 Daman and Diu 1
TOTAL 2,502

The private school students supported under the project include 1,177 girls and 1,325 boys from 1,194 schools affiliated with the below-mentioned boards:

Education Board Schools
• State Board 852
• CBSE (Central Board of Secondary Education) 276
• ICSE (Indian Council for Secondary Education) 29
• Other boards (International Baccalaureate - IB, Council for the Indian School Certificate Examinations - CISCE, International General Certificate of Secondary Education - IGCSE) 37

Multi-year projects initiated and supported in FY 2020-21

JM Financial Scholars Programme

The Company and the JM Financial group have supported scholarships for 58 students pursuing their undergraduate studies in Liberal Arts and Sciences at the esteemed Ashoka University in Sonepat, Haryana. Through this project, these JMF Scholars have received the last-mile support required to fulfil their aspirations of achieving an excellent education.

JMFF Digital Saksharta

The COVID-19 pandemic brought out starkly the digital divide in the country. While digital literacy was considered to be a choice and privilege in the past for the selective few, it manifested into a necessity in the last two years. The sudden onset of the pandemic in March 2020 had us hoping that the situation would be brief and that children would soon go back to school. However, the reality was hard-hitting. Students did not attend school physically for a prolonged period of time, and those in the rural areas were the worst affected, with no access or affordability to learn virtually.

Given this backdrop, JM Financial Foundation conceptualized the JMFF Digital Saksharta project to be implemented in Mokhada block of Palghar district, Maharashtra and in Sikandra block of Jamui district, Bihar. In both geographies, the objective is to bridge the digital divide in rural areas, by imparting computer literacy to children and professional IT certificate courses to youth for enhanced employability and life skills.

In Jamui district, Bihar, the project is implemented by way of a hub and spokes model, where the hub is located at a central location, i.e. village Lachhuar in Sikandra block. It is equipped with 15 computers and helps to impart advanced IT and fundamental communication skills to 120 students (grades 10 and above) per four months. The hub center initiated its sessions on December 27, 2021.

The project design holds the scope for running five spoke centers, of which, currently, three are operational since January 2022. Each of these smaller centers are equipped with three computers, imparting basic IT literacy to a batch of 12 students per 20 days.

In Palghar district, Maharashtra, the project is implemented by way of one hub center located centrally at Mokhada block, equipped with 50 computers. The center was inaugurated in the last week of March 2022.

JMFF Vachanalaya

The world, is moving towards digitization at an unprecedented pace. Machine teaching and learning have already made their headway into childrens reality. On the one hand, its important for every child and individual to be given the chance to be digitally literate, in keeping with the times. On the other, theres also a need to retain, and in most cases, inculcate the love for reading in order to address and strengthen poor literacy levels. Children in rural areas of our country are exposed to books which are prescribed in the school curriculum, lack quality (physically and content-wise) and are largely absent. The knowledge therefore gained through textbooks stays limited to sentences not comprehended, yet copied into notebooks. Project JMFF Vachanalaya has been undertaken to develop libraries in school and community spaces, equipped with quality books, serving as a sanctuary for children and youth, to consume content that will aid directly and indirectly, in strengthening their foundation.

Project JMFF Vachanalaya has followed an approach of identifying library spaces in low-cost and government schools, in convergence with the District Programme Officer - Sarva Shiksha Abhiyaan - Jamui in Bihar and with the Chief Executive Officer, Zilla Parishad - Palghar in Maharashtra. JM Financial Foundation has selected 21 schools in Jamui and 15 schools in Palghar basis an assesment of schools village profile, student enrolment, teachers and headmasters cooperation, and the availability of a space for the Vachanalaya to be developed.

We have identified and procured books (338 titles at the two locations) from companies and non-profit organizations that have an expertise in creating, curating and publishing low-cost books with age and reading level specific content, filled with colourful and meaningful illustrations. Colours over letters, enjoyment over learning and exploration over knowledge has been the primary driving force behind selection of the books and publications.

JMF Sports Project

Jamui, an Aspirational District in Bihar, holds immense potential in sports development for youth, which largely goes untapped, owing to the absence of good infrastructure and unavailability of technical coaching. The Sports project aims at fostering sports as a tool for holistic development and livelihoods generation in the local communities of Jamui district, Bihar by creating an environment and infrastructure of opportunities for all the future-fit candidates. The project entails the development of five sportsgrounds, where each comprises a full-size football ground, athletics track (400 metres * 200 metres), long jump pit and throwing area. Presented below is the status of the planned five sportsground infrastructures:

The satellite sportsground at Lachhuar village has been up and ready since January 2022 with over 300 children from the village communities using it daily and 80 children (girls and boys) training with our football and athletics coaches.

Long-term CSR Projects

Close to our corporate office operations in the state of Maharashtra, lies Palghar district which has been deprived of development, despite its proximity to Mumbai. One of the eight blocks - Mokhada has been especially disadvantaged, regardless of the natural beauty and the tribal community potential it has to offer. JM Financial Foundation, in a tripartite Public Private Partnership (PPP) with the Office of the Collector and District Magistrate, Palghar, has been working in seven villages of Mokhada block since FY 2018-19, to harness the aforesaid potential and bring about meaningful, sustainable impact.

Integrated Village Development Project

The Integrated Village Development Project (IVDP) was initiated to bring about comprehensive and inclusive development for over 1,100 famer households in seven villages of Mokhada block, namely - Ase, Bivalpada, Brahmangaon, Dhamani, Beriste, Karoli and Kalamgaon. In order to bring about such development, it was necessary for JM Financial Foundation to work in synergy with the local district government, complementing and supplementing their efforts. The primary objective of the project is to enhance small and marginal farmers livelihoods, earned through increased awareness, scientific farming practices and the resultant realization of better yields. The project design rests on strengthening farmers livelihoods through agriculture enhancement, water conservation and increasing community access to public entitlements.

Strengthening farmers livelihoods through agriculture enhancement: Our farmers in Mokhada have been following familial agriculture practices with mono-cropping, single crop per year for sustenance (limited to rice, nagli (finger millets) and varai (barnyard millets)), little to no cultivation of vegetables/pulses/fruits/oilseeds and shifting agriculture practices (involving the practice of burning the land once the crop yield is harvested). The terrain is largely hilly and receives an average annual rainfall of 2,450 mm. Against this backdrop, the project has been practicing the approach of training farmers, helping them pilot and practice advanced agri-inputs and solutions and hand-holding them through the farming seasons.

Through the year, we have organized 41 farmer training sessions for over 1,0001 farmer attendees on need-based topics such as Systematic Rice Intensification (SRI) method of paddy cultivation, cluster farming, watershed management, soil health, cultivation of chickpea and custard apple, use of farm equipment such as conoweeder and paddy cutter, pest management and so on.

During the year, farmers from our project geography were mobilized and taken for exposure visits to two villages, namely - Hirve in Mokhada block and Vanvasi in Jawhar block. The exposure visit to Hirve village was organized since large-scale jasmine cultivation is being practised in the same geographical area with similar topography and climatic conditions. Likewise, Vanvasi was chosen since farmers would get to observe the extensive use of CCTs clubbed with cluster/Wadi farming. A total of 96 farmers visited the Hirve jasmine cultivation plots, jasmine saplings nursery and attended a learning session with farmers to understand their experiences with the production and marketing of these flowers. A group of 99 farmers visited the newly dug Continuous Contour Trenches (CCTs), Wadi farm plots (with cashew and mango cultivation) and a horticulture nursery in Vanvasi.

In terms of better-quality farm inputs, this year, 40 farmers were provided with 120 kg finger millets seeds under the project, yielding a total production of 9,480 kg at an approximate market value of 80/- per kilogram. Under our efforts towards diversifying agriculture from staples to vegetables and cash crops, 129 farmers from five villages were supported with 1,016 kg chickpea seeds.

In FY 2020-21, the project had in convergence with Department of Agriculture, Zilla Parishad, Palghar, supported 82 farmers with jasmine saplings to pilot and encourage floriculture practices in our project geography. In FY 2021-22, the project has identified and linked our jasmine farmers to an alternate option of selling jasmine buds daily to flower traders in Nashik, Maharashtra. Of the 82 farmers, 59 are able to earn from the sale of the jasmine buds.

Traditionally, the farmers in our project area have been cultivating pigeon pea (tuur in Hindi) on flatlands at a high density, which reduces the quality of the produce as well as the total yield. This only fulfils the yearly family demand, leaving no scope to make it commercially profitable. This year, we promoted farmers for the scientific cultivation of 100 kg pigeon pea seeds provided under the project and sown on 50 acres of paddy bunds. The farmers have reported a yield of 1,100 kg with a total market value of Rs.60,500/-.

Organic farming practices: The project had supported 42 farmers with high-quality vermi-beds in FY 2020-21 to inculcate and promote organic farming practices. The farmers care for the vermi-beds combined with our handholding has led to an excellent yield of over 77,000 kg of vermicompost and close to 15,000 litres of vermi-wash in over five cycles. Post usage in their own farm plots, the farmers have also sold some of the compost at an average market rate of Rs.10/- to Rs.15/- per kilogram and vermiwash at a rate of Rs.15/- to Rs.20/- per litre.

Water conservation: Our activities under this focus area are targeted at conserving the heavy rainfall received by this region, using low-cost, eco-friendly, rainwater harvesting structures, i.e. Continuous Contour Trenches (CCTs) and jalkunds dug by farmers with our technical inputs.

• Continuous Contour Trenches (CCT) - In FY 2019-20, we had introduced the concept of CCTs in the hilly terrain across seven project villages, with the aim of increasing the groundwater table and soil moisture. Each CCT measures 18 * 2.5 * 2 (length * depth * width) and has an average water-bearing capacity of 1,500 litres. Along with the CCTs, the farmers have also been provided with saplings for the cultivation of cashew and mango around the CCTs.

Through the year, the project has promoted 3,221 CCTs on a large-scale across the region as low-cost, sustainable models of rainwater conservation. The aforementioned CCTs have been planned and dug from March - June, 2021 while the cashew and mango saplings have been planted on their periphery for improved irrigation. These plants also hold the soil together and prevent it from running off and from muddying the water in the CCT. The intervention has generated 46 days of wage-labour for 20 labourers Rs.600/- per day, per labourer for digging three CCTs), even during the second wave of COVID-19.

• Jalkund - This year, the project has introduced Jalkunds (translated literally to water-ponds) as low- cost, rainwater harvesting ponds to be dug in low-lying terrains of the project geography, specifically in the wadi (cluster farming) plots created with the project support in FY 2019-20, FY 2020-21 and FY 2021-22. Each jalkund measures 21 * 18 * 3 (length * depth * width) and has an average rainwater storage capacity of 30,000 litres. Our support under this sub-intervention includes training the farmers on the concept, identifying suitable areas, mobilizing farmers, providing plastic liners for the ponds and handholding the farmer beneficiaries.

Increasing community access to public entitlements ^ Since the inception of the project, two helpdesks have been set up at Ase and Beriste gram panchayats to increase our farmers knowledge and awareness on the available government schemes and policies, aid them in their application for the schemes and pursue relevant government departments until the benefits promised are received by the applicants timely. From October 2018 to March 2021, the helpdesks have received and facilitated government approvals for 8,290 applications for various schemes, Of the total approved applications, 6,377 applications have yielded the desired scheme benefits, while 2,031 applications await their turn. These convergences have resulted into farmers receiving scheme benefits of over Rs.5.49 Crore since project initiation.

Improving education outcomes

An Ashramshala is a residential school imparting education up to secondary level to Scheduled Tribes (STs) children, with funds allocated by the State Tribal Development Department. In hilly areas, an Ashramshala reaches out to a population of 5,000 - 7,000, while in other, remote areas, this number reduces to 2,000 - 3,000. In the state of Maharashtra, all Ashramshalas fall in the ambit of the Integrated Tribal Development Project Department. One such Ashramshala located in Ase Gram Panchayat of Mokhada block, was identified to be in urgent need of refurbishment and redevelopment, should the students educational outcomes (especially girl children) be of significance. The project on Ashramshala infrastructure support was evaluated and undertaken with the primary objective of providing an avenue comprehensive development of 379 lesser-privileged girls and boys (grades 1 - 10) attending the Mahatma Jyotiba Phule Asharamshala, located in Aase village, Mokhada block.

Over the past two years, amidst the interruptions caused by the pandemic, the Ashramshala infrastructure development has been completed with - renovation of the existing school building for six classrooms from grades 5 to 10, construction of a new school building for the primary section, creation and construction of new toilet blocks separately for boys/men and girls/women, and construction of four new rainwater storage tanks (each with 30,000 litres volume) to help with the water requirements at the Ashramshala premises.

The new school building constructed for grades 1 to 4 now welcomes a daily attendance of 109 students while 221 students in grades 5 to 10 now have fully furnished and fully renovated classrooms to sit in.

Our CSR journey in Bihar dates back to 2016, when we identified Jamui district as one of the most needy and disadvantaged geographies in the state. Under the aegis of Integrated Rural Transformation Programme, our approach in Jamui was centered in Sikandra block intensively, while extensive efforts branched out to Chakai and Jhajha blocks as well. As on date, JM Financials intensive efforts cover over 25 extremely deserving villages of Sikandra and Khaira blocks, while our extensive efforts have also extended to Islamnagar Aliganj and Laxmipur blocks, taking our companys and the Groups coverage to six of ten total talukas (blocks) in the district. These efforts, implemented on ground as long-term CSR projects cover the thrust areas of education, health, sports, agriculture and women empowerment.

Project Bachpan

As the name suggests, project Bachpan (translating literally to ‘childhood in Hindi) was initiated in FY 2017-18 with five preschool, child-centric learning centers for children in the ages of 3 to 6 years, left out of the existing Anganwadis owing to the latters mandated student intake capacity that is capped at 40. The first effort undertaken by JM Financial, the project was conceptualized to ensure that children belonging to socioeconomically weak families are provided with an avenue and an opportunity for holistic development through foundational learning and nutritional inputs. These five centers are located in Dhanimatari, Dhawatanr, Korasi, Lachhuar and Sabal Bigha villages of Sikandra block. Each center is run by a locally recruited teacher and an assistant teacher, catering to early childhood needs of a maximum of 25 children for five hours per day, six days a week, in an enabling environment, fulfilling their developmental and contextual needs. Our centers were forced to shut down with the COVID-19 pandemic and nationwide lockdown. Owing to this, the operational model of the project was modified to home-based learning, with the involvement of the students mothers and with activity and learning kits being provided to each child, basis ECCE (Early Childhood Care and Education) curriculum, comprising - books for pre-literacy patterns, pre-numeracy numerals, shapes, creativity and colouring along with weekly worksheets containing activities to be practiced for sharpening their cognitive, sensory, fine and gross motor skills. Starting September 2020, this home-based model was followed for 20 weeks to maintain the continuum of learning. But the passage of time necessitated innovation in the intervention, as a result of which, our teachers began teaching children in their village spaces in organized groups of 4 - 5 students at a time and feeding them at the centers in small groups, adhering to the COVID-19 norms and restrictions. Since the relaxation in the government-imposed restrictions in February 2022, the Bachpan centers have been once again, re-opened and reoperationalized, reaching out to 118 students on a daily basis.

Having observed and evaluated the impact of the Bachpan centers on the childrens developmental progress, JM Financial has committed itself to and taken action for upscaling the project from five to 25 centers, spread across Khaira and Sikandra blocks.

Shri Vardhman Mahila Griha Udyog

Shri Vardhman Mahila Griha Udyog was initiated in December 2017 as a field-action project in Sikandra block of Jamui district, Bihar. Since then, the Udyog continues to be the only women-run, khakhra* enterprise in the entire state.

Our Foundation provided the requisite financial support for the unit set up and operations from inception till July 2019. From the month of August in the same year, the unit has been independently taking care of all its expenses. While this may be one of the milestones, for the area and the context in which the Udyog is set, given the background that the women belong to, this is no small feat. Today, the Udyog has a strength of 21 women (fondly addressed as didis, meaning ‘sisters in Hindi) who now produce six varieties of khakhra, namely - Plain, Masala, Ghee, Methi, Mangroli and Jaggery. Each didi draws a steady, monthly income (average Rs.3,000/) from the Udyog. Over the last four years, the Udyog has produced over 20,000 kg khakhra and sold over 17,000 kg khakhra.

Adarsh Gram (Model Village) Development Project

The concept of a model village in India seems to be incomplete without agriculture being strengthened, given the dependence of rural households on land as an asset. Jamui district in Bihar is one such geography, which despite suffering from a monsoon-deficit, holds a high potential for farmers earning an increased livelihood through enhanced agriculture techniques and outputs. The project aims to increase small and marginal farmers livelihoods, earned through increased awareness, scientific farming practices and the resultant realization of better yields.

The project focus in the previous years has been on moving farmers from single to two crop pattern, along with the introduction of alternate, cash crops. This year, the highlight has been the proliferation of high-value crops such as capsicum, baby corn, sweet corn and watermelon. Post a successful pilot up to FY 2020-21 of these crops on our model farm* accompanied by intensive farmers training, this year, we have launched them as viable, commercial farming options.

Crop Farmers Inputs per farmer Production (in kg)
Seeds provided (in kg)
Baby corn 13 3.50 250+
Sweet corn 33 8.00 expected
Watermelon 34 0.33 3,900+
Saplings provided
Capsicum 13 19,330 1,200+
Papaya 52 3,250 expected

Aforementioned cultivation across a total of 10.80 acres. Production figures are as reported by our farmer beneficiaries. The production figures for sweet corn and papaya are expected by July 2022.

*An under 0.75 acre land in Lachhuar village of Jamui district, Bihar, cultivated and curated by JM Financial Foundation with model farming crop/plant varieties and practices, with an objective of visible demonstration for farmers. (1 acre = 44,000 sq.ft. approximately)

Two of our farmers, namely - Pramod Ram from Lachhuar village and Yogendra Paswan from Rajpura village also received the Zilla Kisaan Mela-sah-Pradarshini awards for their efforts at papaya and capsicum cultivation in a region otherwise alien to these varieties. The awards were presented by Dr. Rameshwar Singh, Dean - Bihar Animal and Science University (BASU), Patna.

Other agri-inputs provided to farmers through the year are as captured below:

The project has conducted 27 organized farmer-training sessions on need-based, capacity building areas such as seed sowing and care, direct sowing technology, zero tillage farming, water management with crops, seed selection methods and high value crop varieties. These sessions have been attended by 2,5342 farmer attendees.

In 2019, we had encouraged 11 marginal and small farmers from Dhanimatari village to cultivate a community orchard on 1.5 acres of land, with horticultural varieties of lemon, mango and guava saplings provided as inputs under our project. This year, nine of these farmers have realized a harvest of over 16,000 lemons from the orchard. The harvested lemons were also sold in the Bihar Sharif market in Nalanda district, yielding an average income of Rs.3,000/- per farmer.

Integrated Livestock Development Centers (ILDC)

Agriculture in Bihar is characterized by smaller sized landholdings on average, held in tandem with livestock, to help the average farmer practice farming and allied activities as a commercially viable livelihood option. However, Jamui region being rain-deficit suffers from well-bred and well-fed cattle which adds to a farmers woes. The ILDC project rests on the objective of augmenting cattle-rearers livelihoods through livestock management and development services, for improved cattle health and milk yield. Initiated in September 2017 with a comprehensive livestock survey, the project runs by way of 21 ILDCs operational in 21 villages across three blocks, reaching out to over 210 villages. The project design is tailored to deliver livestock management and development services to the communities through 21 local, technically trained youth para-veterinarians, addressed as Gopals.

Project ILDC has completed four (calendar) years of successful implementation, with a near achievement of its targeted livestock management and development services.

As a part of nutritious green fodder support to farmers, the project educated 507 farmers and helped them with 295.5 kg of makhhan grass (botanical name - Lolium Multiflorum - a highly succulent and palatable grass for cattle nutrition) fodder seeds at subsidized rates. The seeds post sowing, have yielded fresh and nutritious green fodder, fulfilling the year-round demand, which otherwise would be an addition to the farmers monthly expenditure. Farmers in our project geography have enjoyed a daily green grass output of 20-30 kg for at least four consecutive months, thereby providing them with a relief from having to purchase green fodder.

The project has also complemented the district administrations veterinarian efforts, by administering the Block Veterinary Hospitals HSBQ (Haemorrhagic Septicaemia Black Quarter) vaccine to 6,775 cattle across the villages served by seven ILDCs.

The projects livestock development efforts by the way of Artificial Insemination (AI) have birthed 5,785 calves (Female- 2,875, Male- 2,910). The calves born are of locally sustainable, higher milk-yielding breeds, as named below:

Sahiwal: 2,796 Gir: 605
Holstein Friesian: 1,029 Murrah Buffalo: 498
Jersey: 820 Red Sindhi: 37

Shri Vardhman Nidaan Seva

In areas suffering from remoteness and socio-economic backwardness, health suffers the most. It is extremely critical to address the issue of health and nutrition by implementing a scientifically planned intervention at the grassroots, to strengthen the health infrastructure and services, leading to not only the absence of sickness, but an overall physical, mental and socio-economic well-being for the community. The project has been undertaken with the objective of providing primary preventive and curative medical and 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 on good health seeking practices.

Shri Vardhman Nidaan Seva (SVNS) was initiated with the first Mobile Health Unit (MHU) providing doorstep healthcare services to 13 remote and deprived village communities in Khaira and Sikandra. A year later, JM Financial Foundation initiated the second MHU, seeing the dire need for accessible healthcare services in the Gram Panchayats neighbouring to the villages served by the first Unit.

Both our MHUs serve 26 villages in a radius of 40 - 50 kilometres daily. The two mobile health units have treated a total of 26,000 patients (61% male, 39% female) till March 31, 2022. Ailments most commonly treated include respiratory illnesses, skin ailments, gynaecological issues, and musculoskeletal issues.

The two MHUs treat patients with the help of diagnostic kits as well. The kits chosen to be deployed in the two MHUs have been identified basis the most prevalent health concerns. with the help of the said kits, we have screened 835 patients with blood pressure issues and diagnosed anaemia in another 166 patients.

As part of preventive healthcare, the project has conducted demonstrative health awareness sessions on water vector diseases, osteoarthritis, COVID-19, malnutrition, anaemia and healthy dietary practices.

Special focus Fight Against
interventions Malnutrition

In synergy with the Nutrition Rehabilitation Center (NRC) at the District (govt.) hospital in Jamui, through the mobile health units, we have screened 569 children for anaemia. The screening was conducted with technical methodology involving the usage of MUAC (Mid Upper Arm Circumference tapes to assess SAM (Severe Acute Malnourished) and MAM (Moderate Acute Malnourished) children. As per the diagnosis and high criticality of children ranging below the standard measurements for SAM, 21 children and their families were counselled and convinced to undergo 15-days rehabilitative care between January and March 2022, at the NRC in the District Hospital, Jamui. Given below is the case of one such child.

Village: Deepakarhar, Khaira block

• Father works as a daily wage agriculture labourer

• Weight - 5kg (minimum standard: 9 to 10kg as per WHO); Height - 69.5cm

• Diagnosis - SAM baby with high degree anaemia

• Our support - The child was diagnosed by our project nurse during one of our periodic health sessions. We facilitated the child and the mother being registered for hospitalization and 15 days of treatment, feeding and observation at the NRC.

• Results - 2.5 kg weight increased in 15 days bringing the child form SAM to MAM category.

JM Financial Foundation with the support of Neurology Foundation has reached out to 13 patients suffering from chronic epilepsy. These patients had hitherto been left untreated and suffered multiple injuries due to frequent seizures. Without the MHU intervention, these 13 patients wouldve been subjected to not only psychological and physical neglect, but also, social stigma for the rest of their lives.

Village: Korasi, Sikandra block

• Child with history of head injury four years ago was suffering from Epileptic seizures atleast 10-12 times per month. He was left untreated due to lack of awareness, social stigma and unaffordability to undertake treatment.

• JM Financial Foundation, with the support of Neurology Foundation helped in diagnosing the childs illness as Viral Encephalitis and guided the project team in ensuring his continuous treatment through weekly visits to the MHU.

• Post medication, the seizures frequency has reduced to 2-3 times per month, which has made a tremendous difference to the childs life and the restoration of normalcy to a large extent.

Apart from malnutrition, JM Financial has also put in efforts to treat and curb epilepsy in 13 patients suffering from this chronic disease.

These number as represented above, are very few to pen down here. What may be represented through words and pictures hardly captures the depth of what goes into bringing these patients out of the danger category. There are over hundred such cases being frequently tended to under different health ailments, which wouldve gone unnoticed and untreated without awareness and accessibility encouraged by Shri Vardhman Nidaan Seva.

Project Mobile Health Unit

Our CSR initiatives in Giridih district in the state of Jharkhand drew to a close in the Financial Year 2021-22. After completing five years of successful healthcare delivery, Project Mobile Health Unit (MHU) formally concluded its ground operations. Through its tenure of operations in the 24 villages (later 14) of Dumri and Pirtand blocks of Giridih district, the project has dedicatedly provided comprehensive, doorstep curative and preventive healthcare services to rural and backward communities. Over the years, the project consulted 66,808 patients, counselled 28,917 patients and referred 1,701 patients for further tertiary treatment and care (including followup cases). Majority of the patents belong to the age group of 20 - 45 years.

One-Time Support Initiatives

Hospital and healthcare equipment support

JM Financial has extended its CSR support to three hospitals in the state of Gujarat, vis-a-vis critical hospital equipment required to enhance the healthcare services provided by them.

1. Shri Kalikund Parshwanath General Hospital

Established in 2001, Kalikund hospital located in Dholka block of Ahmedabad district, is a 91-bedded charitable hospital catering to patients from over 200 villages located in the neighbouring blocks. The hospital provides multi-specialty services under categories like Medicine, Surgery, Orthopedic, Ophthalmology, ENT (Ears, Nose, Throat) and other super specialty services through on-call visiting consultants from the district headquarters. Overall the hospital caters to a daily OPD patient load of 300 - 400 and 6 - 8 surgeries through their four operation theaters.

Support extended: One MRI (Magnetic Resonance Imaging) machine in order to strengthen the hospitals diagnostic facilities and enable patients from rural areas to access complete medical care at one place.

2. Shrimad Rajchandra Hospital

Shrimad Rajchandra Hospital (SRH) located in Dharampur taluka of Valsad district was established to primarily serve the underprivileged tribal communities residing in Valsad, Navsari and Dang districts. The hospital is a 100-bedded facility providing primary and tertiary healthcare through pediatric, gynecology, surgery and general medicine specialties. The facility is the only source of comprehensive and accessible quality healthcare services, being provided to nearly 2.25 lakh patients annually. The hospital is currently one of the only well-equipped facilities. It offers some of the best neonatal services, free of cost to infants requiring emergency intensive care, owing to their susceptibility to congenital deformities, infections, illnesses and other, life-long complications.

Given the dire need and ever-increasing outreach of the hospital, the foundation stone for a new 250-bedded multispecialty, state of the art hospital has been laid in 2017, within a three kilometers radius of the existing hospital. Given the backdrop, with the aforementioned specialty and super-specialty services, the SRH envisions reducing neonatal morbidity and mortality also help children overcome the delayed development milestones leading to physical and mental conditions, which are often irreversible in nature, if not addressed early on.

Support extended: New SRH supported with -

• 15 sets of medical and diagnostic equipment for the Neonatal Intensive Care Unit (NICU) for the treatment of critical newborns

• Six sets of medical equipment for the District Early Intervention Centre (DEIC) for close monitoring of children with developmental milestones and for helping them strengthen their physical and mental health stability.

3. Civil Hospital - Ahmedabad, Gujarat

The Civil Hospital, Ahmedabad is a 3,200-bedded tertiary healthcare hospital; one of the largest in Asia. It is 160-years old and caters to OPD and IPD patients, through its specialty and super-specialty departments. Owing to the heavy patient load of about 500 daily OPDs, the hospital, and notably, the radiology department faces a challenge in providing efficient services.

Support extended: In order to aid in increasing the efficiency in services provided to the hospital patients, JM Financial Foundation has extended its support by way of providing for three sets of equipment as listed below:

Medical Equipment Functionality
Fixed X-Ray System with 4-way floating Table (1 unit) Providing high frequency, low radiation, better ergonomics and superior image quality
Digital Radiography System (2 units) New technology machineProviding Speedy display of X-RAY images, shortening examination and patient turnaround time
Patient Warming System (3 units) Ensuring controlled body temperature for new-born and post-operative paediatric patients in Operation Theatre

Education support

Sri Sri Gnan Mandir School located in Chandauli district, Uttar Pradesh is a low-cost school affiliated to the state board for grades 6 to 8. The area is notorious for insurgent activities and has only one government school, located six kilometers away, bereft of any organized transportation facilities. This results into children, especially girls dropping out at an early stage. Therefore, JM Financial is supporting the said school with its infrastructural expansion so as to accommodate students in grades 1 to 6 and provide for staffrooms, laboratories and washrooms.

Employees volunteering

In July 2021, when the tragic floods struck Konkan Maharashtra amidst the prevailing pandemic, 34 employee volunteers from across the JM Financial group travelled to Mahad in Raigad district to extend their helping hand. The Foundation, along with our volunteers contributed dry grocery kits comprising essentials, enabling over 1,000 families to tide over the trying times, with a live community kitchen run for 20 days.

As another expression of service to mankind, JM Financial Foundation conducted its fourth annual eye camp at Khaira block of Jamui district, Bihar. The camp was organized with an objective of screening and treating patients with cataract issues. Held in January 2022, the eye-camp saw a total registration of 416 patients of which 60 patients got their cataract issues screened and treated through surgery facilitated by our Foundation.

Philanthropy by JM Financial Foundation

The JM Financial group of Companies has been supporting some very deserving philanthropic initiatives through the JM Financial Foundation (JMFF) for over two decades. Through the year, in line with the objectives of the Foundation, we have extended our support to healthcare, sports development initiatives and towards the promotion of Indian art and culture. Some such initiatives supported by us are highlighted below:

Aiding healthcare services

JMFFs philanthropic support helped equip 130 individuals with disabilities, with artiflcial limbs, calipers, walker chairs and hearing aids. Our support aided in the cataract surgeries for 250 patients along with critical surgeries of two children (aged 2 and 3 years) suffering from Coronary Heart Diseases.

Training of sports athletes

With our continued support to athletes training for the Olympics, we have been able to help sportspersons like Lakshya Sen reach the Anal round of the prestigious All England Open Badminton Championships.

Promotion of music and cultural traditions JMFF has been supporting an organization in Ahmedabad that runs a School for Indian Classical Music with a large number of students, who have performed excellently in various youth and musical events.

Human Resources

We at JM Financial believe people are our biggest asset and safeguarding their wellbeing is of utmost importance to us. As we are getting back to normal and accepting the ‘new normal at the fullest, it is crucial to make the workplace lively. Our people strategy is inclusive to adapt with the changes post covid, we continue with our engaging talent onboarding and driving people culture.

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

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

HUMAN RESOURCES

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 Andings 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, Ave entities - 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-CertiAed™ by the Great Place to Work Institute for all Ave participating entities for the period Feb 2022 - Feb 2023.

Talent Management

Our people are our most valuable asset and we believe that the ultimate identity and success of our Firm is determined by quality of our people and their dedication and commitment towards attaining Organizational Vision. While we focus on the quality, there is also focus on providing an equal opportunity regardless of the gender, race, religion etc. Our endeavour is towards attracting the right talent, assessing them not only on their skills & knowledge but also assessing them keeping in mind our organizational values.

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 2021-22 comprised Management Graduates from schools of Business Management and Social Work. The hiring has been executed for Investment Banking, 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

Employee recognition is the open acknowledgment and expressed appreciation for employees contributions to their organization. It could be a high-Ave for a job well done, a special shout-out during an all-hands meeting, or even a bonus for meeting a monthly goal. Whatever may be the form of the recognition; but it serves the ultimate purpose of giving the business the competitive edge by boosting the employee morale. The various employee recognition programmes help improve employee engagement, reduce turnover, increase productivity, boost morale, and build purpose when used correctly.

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

Employees who feel connected to their organization work harder, stay longer, and motivate others to do the same. Employee engagement affects just about every important aspect of your organization; it is the strength of the mental and emotional connection employees feel toward the work they do, their teams, and their organization.

At JM Financial, we engage our employees via various initiatives, both at group as well as entity level. We celebrate all the festivities over the year. This year was no exception; we embraced ‘new normal & engaged all employees virtually in celebrations on the occasions of festivals. Mothers Days & Fathers Day were celebrated wherein we asked employees to shared their most cherished memories with their parents & stories shared by employees were featured on connect.

Diwali & Christmas were celebrated across offices with great enthusiasm. A special Musical Event was organized for corporate office employees to welcome 2022 in a unique way.

Essence of patriotism was high at work as Independence Day was celebrated at all the branches where employees decorated the branches & corporate office & were dressed in the traditional attire.

Appreciation week was celebrated in the month of February. Employees were encouraged to share appreciation via various ways as planned by businesses as well as via iCheer.

Initiatives During Covid

• Welcome Back to Office Sessions

To help employees resume offices effectively and by following all the safety measures; we arranged for Welcome Back to Office Sessions - our guidelines to ‘New Normal way of life. The guidelines issued by WHO were reiterated and all employee queries were addressed on these calls. The same were constantly reminded by continuous advisory mails. The HRBPs played a vital role in tracking employee & family health & provided necessary aid with the help of our admin team time to time.

• Covid Cases Tracking & Medical Assistance

The organization continuously tracked the employee & their family health (Covid Cases) details. There was a constant connect with the employees by the HRBPs for their respective locations/functions. The medical details of employees & their immediate family members were tracked & due assistance was provided in case of hospitalization, insurance claim etc.

• Health & Well Being

In order to encourage employees to initiate and maintain a healthy, active lifestyle thus ensuring their overall fitness and well - being, we introduced various fitness initiatives such as virtual yoga sessions, session on Diversity & Inclusion, live De-Stressing sessions etc. These were unique programs provided by the Firm to help employees remain physically & mentally active during the stressful pandemic period. The virtual yoga sessions were very much appreciated by our employees.

• Doctor on Call

Due to covid situation, we arranged for Doctor on call for all the employees in the organization. There are two empaneled doctors who are available on designated days during the week for telephonic consultation. Employees are informed about the available slots via mail.

• Leave & Paid Time Off

At JM Financial we encourage Work-Life Balance, which became crucial post covid. The pandemic erased the line between personal & professional time, which is taking toll on the mental wellbeing of human beings. We introduced additional leave type as well as encouraged employees to utilize their regular leaves in order to spend quality time with their family & friends breaking away from the work pressure which the whole world faced during the pandemic.

• Covid 19 Vaccination Drive

The safety of our employees and their family is most important for us. We arranged for covid vaccination drives for employees and their immediate family members. We also included parents in-law of the employees in the drive. The decision was appreciated by all the employees.

• Thanking COVID-19 Front liners

In this initiative, the JM Financial family shared a salute to all the covid-19 front liners for their service to the nation during these extraordinary times. We asked employees to share pictures of someone from their family (spouse / parents / siblings / children) who have been Covid-19 Front liners. We added their pictures in our monthly newsletter Essence, thanking each of them.

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

Growth is a significant part of human nature, and we have an intrinsic desire to continue to grow and develop throughout various aspects of our lives. Growth and development is present in a work environment where workers receive encouragement and support in the development of their interpersonal, emotional, and job skills.

Employee training programs or initiatives have been integral part of the HR vision and long-term strategic objectives of our Firm. Recognizing that our employees are our greatest single resource, the Firm is dedicated to providing high quality training to employees through professional training companies and qualified staff. Based on the identified training needs, the Firm offers a variety of training programs and development opportunities including. We adapted to the new ways to conduct & deliver trainings given the challenging situations where classroom trainings were difficult to conduct. We chose the virtual way of doing all kinds of trainings within the organization & enhance our e-learning portal by adding new modules on various topics. All the trainings were driven virtually with the help of our senior leadership & spocs from the Central teams. There was also major focus on e-Learning. Our internal e-Learning portal, iLearn, hosts number of modules on various behavioral & functional topics. Employees were encouraged to use the portal to the fullest. We have also made the portal available on the Connect mobile app for on the go access to all the learning material available on iLearn. New internally developed courses were made available for all the employees on iLearn.

Our internal Learning and Development initiative - Knowledge Community, which involves knowledge sharing sessions among business groups on a melange of topics of relevance. The subject matter experts within the organization are encouraged to conduct these sessions and mailers are sent to all employees of that location inviting to attend. The events details are also uploaded on iLearn for employees to find all relevant information and sign up.

In addition to helping employees keep abreast with happenings in diverse areas around them, these cross-functional training sessions also inspire bonding across different teams. We felicitate the trainer with a token of appreciation at the end.

We introduced the Group Monthly Training Calendar wherein training programs planned for all businesses were published for all employees. Employees gain the knowledge of all the training programs planned for the particular month across the group & it gives access for them to attend relevant training programs planned by other businesses as well.

Hiring During Covid

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.

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

The total employee strength of JM Financial Group stood at 2,405, as on March 31,2022.

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 risk factors 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.