J A Finance Ltd Management Discussions

The Directors take pleasure in presenting the management discussion and analysis report for the year ended on March 31, 2025.

Industry Structure and Development

J. A. Finance Limited is non-deposit taking Base layer NBFC Company.

Opportunities

Huge market opportunity Lower operational expenses

Threats

The Government of India (GoI) and the State Governments can majorly impact the Indian economy and our business in several ways.

Out Look

The company does not foresee any major threats to its growth in the coming years.

Risk and Concerns

The risk factors are classified as under for the sake of better clarity and increased understanding: 1.Internal Risk Factors 2.External Risk Factors

Internal Risk Factors: a. The main business of the Company is to giving loan to its group Companies and generate revenue which lead to concentrated business Risk.

b.We are dependent on a number of key personnel, including our senior management, and the loss of or our inability to attract or retain such persons could adversely affect our business, results of operations, cash flows and financial condition.

External Risk Factors: a. Political, economic or other factors that are beyond our control may have an adverse effect on our business and results of operations.

b.Our business is dependent on the performance of its Group Companies. c.Changing laws, rules and regulations and legal uncertainties in India, including adverse application of corporate and tax laws, may adversely affect our business and financial results.

Internal control system and their adequacy

The Company has adequate systems of internal control meant to ensure proper accounting controls, monitoring cost cutting measures, efficiency of operation and protecting assets from their unauthorized use. The Internal Audit department of the Company reviews control measures in the management of risks and opportunities and ensures adherence to operating guidelines and compliance with regard to regulatory and legal requirements.

The internal audit is carried by the M/s. Harnathka & Associates, Internal Auditors of the Company. The reports, thereby prepared, are reviewed in the Audit Committee meetings. Corrective measures to strengthen the internal controls are suggested and also taken in consideration.

Discussion on financial performance with respect to operational performance

The financial performance during the year under reference has been reasonably good in all respects.

Material developments in human resources/ industrial relations front, including number of people employed

As on March 31, 2025, the Company had total Seven (07) employees.