Jackson Investments Ltd Management Discussions

ECONOMY & OUTLOOK

The global economy in 2025 recorded steady but moderate growth of around 3.3%, reflecting resilience despite persistent macroeconomic challenges. Advanced economies expanded at a slower pace due to tight monetary policies, while emerging markets drove growth on the back of strong domestic demand and industrial activity. Inflation moderated to nearly 4.2% globally, though it remained above target levels, keeping interest rates elevated.

Global trade stayed subdued amid geopolitical tensions and supply chain realignments. Financial conditions remained tight but stable, with cautious lending, elevated bond yields, and improving equity markets, shaping investment flows and risk management across sectors.

Indias economy in FY 2025-26 demonstrated strong resilience and momentum, supported by stable macroeconomic fundamentals, policy support, and broad-based sectoral growth. Real GDP is estimated to grow at 7.4% in FY 2025-26, with Gross Value Added (GVA) expanding by 7.3%, indicating sustained economic strength despite global uncertainties. Inflation moderated sharply, with headline CPI averaging 1.7% during April–December 2025, marking one of the lowest levels in recent years.

Monetary conditions turned supportive, with the repo rate reduced by 100 basis points to 5.25% by December 2025 and the Cash Reserve Ratio (CRR) lowered to 3.0%. The RBI infused liquidity exceeding 3.39 lakh Crore through open market operations and forex measures, while maintaining a surplus liquidity of an average of D1.89 lakh Crore. Broad money supply grew by 12.1%, while the money multiplier improved to 6.21, reflecting enhanced financial intermediation.

INDUSTRY OVERVIEW

The financial sector remained robust, with bank credit growth accelerating to 14.5% year-on-year in December 2025, compared to 11.2% a year earlier. MSME credit grew by 21.8%, with micro and small enterprises expanding by 24.6%. Asset quality improved significantly, with gross NPAs declining to multi-decadal lows, while capital adequacy remained strong at 17.2%. Profitability indicators were healthy, with return on equity at 12.5% and return on assets at 1.3%.

Capital markets witnessed strong activity, with resource mobilisation of D10.7 lakh Crore in FY 2025-26 (till December 2025), while household participation increased, with equity ownership rising to 18.8% and financial savings in market-linked instruments reaching 15.2%. The Financial Inclusion Index improved to 67.0, indicating deeper penetration of financial services across the economy.

Looking ahead, the outlook for FY 2026-27 remains positive, with GDP growth projected at 6.8–7.2%, supported by sustained domestic demand, infrastructure investment, and continued policy support. Inflation is expected to remain moderate, with RBI projections at 3.9 to 4.0% in the first half of FY 2026-27 and IMF estimates at around 4.0% for the year. The macroeconomic environment is expected to remain stable, with strong external buffers, improving fiscal consolidation, and a well-capitalised financial system. Continued focus on capital expenditure, digitalisation, and financial inclusion is likely to sustain credit growth and investment activity.

SEGMENTWISE REPORTING

During the current financial year, the Company has operated in single segment wise, Finance & Investments and hence Segment Reporting is not applicable to the Company.

OPPORTUNITIES

Growing financial markets and increased retail participation

Expansion of digital financial services

Opportunities in capital market investments

Improved access to diversified funding sources

THREATS

Market volatility and economic uncertainties

Regulatory changes impacting financial services

Competition from established and emerging players

Liquidity and funding risks

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company has in place adequate internal financial controls with reference to the Financial Statements commensurate with the size, scale and complexity of its operations. Your Company has an Internal Audit team that is responsible for independently evaluating the adequacy and effectiveness of all internal control designs and implementation, risk management, systems and processes. Internal Audit team is manned by appropriately skilled, experienced and qualified personnel. The Internal Audit plan is also aligned with the business objectives of the Company which is reviewed and approved by the Audit Committee.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year under review, the Company earned revenue from operations of 56.03 lakh, along with other income of 142.51 lakh, taking the total income for the year to 198.54 lakh. While the Companys total expenses were less than its total income, resulting in a net profit for the year, the revenue generated from operations played a meaningful role in meeting the day-to-day operational and financial requirements of the Company. This, in turn, helped reduce the Companys dependence on additional borrowings from the Directors and from banks/financial institutions to fund its working capital and other requirements.

The management remains focused on improving operational efficiency, expanding revenue streams and exercising tighter control over costs, with the objective of strengthening the Companys overall financial performance in the coming years. These efforts are also aimed at progressively reducing the Companys reliance on external sources of finance and building a more self-sustaining operational and financial structure going forward.

RISKS AND CONCERNS

MARKET RISK

The Company has quoted investments which are exposed to fluctuations in stock prices. JIL continuously monitors market exposure in equity and, in appropriate cases, also uses various derivative instruments as a hedging mechanism to limit volatility.

LIQUIDITY AND INTEREST RATE RISK

The Company is exposed to liquidity risk principally, because of lending and investment for periods which may differ from those of its funding sources. Management team actively manages asset liability positions in accordance with the overall guidelines laid down by various regulators. The Company may be impacted by volatility in interest rates in India which could cause its margins to decline and profitability to shrink. The success of the Companys business depends significantly on interest income from its operations. It is exposed to interest rate risk, both as a result of lending at fixed interest rates and for reset periods which may differ from those of its funding sources. Interest rates are highly sensitive to many factors beyond the Companys control, including the monetary policies of the RBI, deregulation of the financial sector in India, domestic and international economic and political conditions and, inflation. As a result, interest rates in India have historically experienced a relatively high degree of volatility.

The Company seeks to match its interest rate positions of assets and liabilities to minimize interest rate risk. However, there can be no assurance that significant interest rate movements will not have an adverse effect on its financial position.

HUMAN RESOURCE DEVELOPMENT

The Company recognizes that its success is deeply embedded in the success of its human capital. During 2025-26, the Company continued to strengthen its HR processes in line with its objective of creating an inspired workforce. The employee engagement initiatives included placing greater emphasis on learning and development, launching leadership development programme, introducing internal communication, providing opportunities to staff to seek inspirational roles through internal job postings, streamlining the Performance Management System, making the compensation structure more competitive and streamlining the performance-link rewards and incentives.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

There is no material development in Human Resources, Industrial Relations front etc. during the year under review.

OTHER DISCLOSURES IN TERM OF SCHEDULE V OF SEBI LODR REGULATIONS, 2015

Disclosures in regard to following aspects, have been provided in Notes to Account, forming part of Annual Report –

a. Debtors Turnover

b. Inventory Turnover

c. Interest Coverage Ratio

d. Current Ratio e. Debt Equity Ratio

f. Operating Profit Margin (%)

g. Net Profit Margin (%) or sector-specific equivalent ratios, as applicable.

h. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof.]

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

The provision of the Companies Act, 2013 relating to CSR Initiatives are not applicable to the Company.

COMPLIANCE

The Compliance function of the Company is responsible for independently ensuring that operating and business units comply with regulatory and internal guidelines. The Compliance Department of the Company continues to play a pivotal role in ensuring implementation of compliance functions in accordance with the directives issued by regulators, the Companys Board of Directors and the Companys Compliance Policy. The Audit Committee of the Board reviews the performance of the Compliance Department and the status of compliance with regulatory/internal guidelines on a periodic basis.

The Company has complied with all requirements of regulatory authorities. No penalties/strictures were imposed on the Company by stock exchanges or SEBI or any statutory authority on any matter related to capital market during the last three years.

Kolkata, September 4, 2026	By order of the Board
	For Jackson Investments Limited
	S/d-
Registered Office:	Ramesh Kumar Saraswat
7A, Bentinck Street, 3 rd Floor, Room No. 310A Kolkata-700 001	DIN: 00243428
	Chairman & Managing Director