Jai Corp Ltd Management Discussions

Forward-looking Statement

This report contains forward-looking statements, which may be identified by their use of words like ‘plans, ‘expects, ‘will, ‘anticipates, ‘believes, ‘intends, ‘projects, ‘estimates or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the Companys strategy for growth, product development, market position, expenditures and financial results are forward- looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Companys actual results, performance or achievements could, thus, differ materially from those projected in any such forward- looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward- looking statements on the basis of any subsequent developments, information or events.

Overview of Financial Year (FY)

According to the Minutes of the Monetary Policy Committee Meeting, June 4 to 6, 2025 dated 20th June 2025 published by the Reserve Bank of India: "According to the provisional estimates released by the National Statistical Office (NSO) on May 30, 2025, real GDP growth in Q4:2024-25 stood at 7.4 per cent as against 6.4 per cent in Q3. On the supply side, real gross value added (GVA) rose by 6.8 per cent in Q4:2024-25. For 2024-25, real GDP growth was placed at 6.5 per cent, while real GVA recorded a growth of 6.4 per cent."

Key performance indicators of the Company are given below:

• The gross turnover increased by 11.82 per cent to

Rs 511.94 crore in FY 2024-25 from Rs 457.84 crore in FY 2023-24.

• The total EBIDTA increased by 17.92 per cent to

Rs 93.44 crore in FY 2024-25 from Rs 79.24 crore in FY 2023-24.

• The net Profit increased by 38.65 per cent to

Rs 74.72 crore in FY 2024-25 from Rs 53.89 crore in FY 2023-24.

Details of significant changes in Key Financial Ration along with detailed explanations:

S. No.	Particulars	2024-25	2023-24	% of change from 2023-24 to 2024-25	Remarks
1.	Current Ratio	10.94	12.53	-12.69%
2.	Debt-Equity Ratio	-	-	-
3.	Debt Service Coverage Ratio	-	-	-
4.	Return on Equity Ratio	0.05	0.04	-
5.	Inventory turnover Ratio	8.47	7.32	15.71%
6.	Trade Receivables turnover Ratio	9.90	9.14	8.32%
7.	Trade Payables turnover Ratio	120.44	86.81	38.74%	Primary due to increase in Revenue from Operations.
8.	Net capital turnover Ratio	2.44	1.64	48.78%	Primary due to increase in Revenue from Operations.
9.	Net Profit Ratio	0.14	0.12	16.67%
10.	Return on Capital employed	0.07	0.05	40.00%	Primary due to increase in Profit and decrease in Total Equity.
11.	Return on Investment	0.01	0.01	-40.00%	Primary due to decrease in Current Investment.

Business Review

Jai Corp is a stakeholder in following entities- I- Mumbai SEZ Limited (MSEZ) Performance Overview:

MSEZ has acquired land in Uran, Pen and Panvel areas in the state of Maharashtra. So far, consent award and sale deeds have been executed for around 4,600 acres. The subject land is not contiguous. The Land Acquisition Act which has been notified in January 2014 makes it difficult to buy land for contiguity. MSEZ is in discussion with GoM on way forward.

II- Rewas Ports Limited (RPL) Performance Overview:

RPL has signed the lease deed with Maharashtra Maritime Board (MMB) for 839 hectares (Ha) of inter-tidal land. The Government land of about 167 hectares has been transferred by the GoM to MMB. MMB will sign the lease deed for the same at the time of financial closure. RPL has been in discussions with Indian Railways and GoM to firm up the rail and road connectivity of the port with the hinter land. RPL has been persistently working to resolve the key issue related to right of way from Mumbai Port Trust, but progress is slow. Unless this issue is resolved the Project is unable to progress.

Real Estate Sector Overview:

According to a new item published in The Hindu newspaper edition dated 4th January 2025 under the heading: "Outlook 2025: Emerging trends of real estate sector-

It was reported that "Indias real estate market is entering a vital phase, with 2025 set to redefine its growth path. Contributing around 7% to the nations gross domestic product (GDP) in 2024, the sector is poised to grow to 13% in 2025 and 18% by 2047, aligning with Indias projected $26 trillion GDP by its centenary of independence. The market size is expected to expand from $300 billion in 2024 to $1 trillion by 2030, ultimately reaching $4.8 trillion by 2047 (CREDAI-EY)."

Our Business:

Certain subsidiaries of Jai Corp had acquired land. The same may be consolidated for the purpose of development subject to the applicable legislations at that point of time. The Company is of the view that any presumed fall in the current valuation of land held by some of the subsidiary companies is a temporary phenomenon. These are long-term investments and in the course of time are expected to realise their fair value.

Performance Overview:

One of the wholly-owned subsidiaries of the Company, Swar Land Developers Limited, is developing an industrial estate near Mumbai. Construction of Phases I, II & III are complete and are being disposed of. It has reported a net profit of about Rs 0.09 crore during FY 2024-25 as against a net profit of about Rs 1.21 crore during FY 2023-24.

Oasis Holding FZC earned Rs 7.70 crore as rental income from labour accommodations in the United Arab Emirates during the FY 2024-24 as against Rs 7.79 crore during the FY 2023-24.

Steel Division Sector Overview:

The World Steel Association (worldsteel) released its Short Range Outlook (SRO) steel demand forecast for 2024 and 2025 in October, 2024- "worldsteel forecasts that this year global steel demand will drop further by 0.9% to 1,751 Mt. After three years of decline, we expect to see a broad-based recovery in the world excluding China in 2025. Global steel demand is forecast to finally rebound by 1.2% in 2025 to reach 1,772 Mt." About India it says: "has emerged as the strongest driver of steel demand growth since 2021, and this trend is set to continue. We are maintaining our robust growth projections for India, anticipating an 8.0% increase in steel demand over 2024 and 2025. This expansion is fuelled by growth across all steel- consuming sectors, especially by continued strong growth in infrastructure investments."

However, the worldsteel postponed release of its Short Range Outlook (SRO) in April 2025 stating that "worldsteel believes that the imposition of tariffs by the US administration could render the SRO outdated. The SRO will be reviewed and reissued at an appropriate time."

Performance Overview:

Jai Corp manufactures cold rolled coils, galvanized coils and galvanized corrugated sheets at its Nanded unit in Maharashtra. During FY 2024-25, the Company did not produce any cold rolled coils (CR) due to lack of demand and achieved a production of GP/GC coils and sheets.The third-party production (Job Work) of Nil MT during FY 2024-25 as compared to Nil MT of galvanized plain and galvanized corrugated steel sheets (GP/ GC) sheets during FY 2023-24. The Division reported turnover of Rs 0.30 crore in FY 2024-25 as compared to

Rs 0.26 crore in FY 2023-24. It reported a loss of Rs 1.20 crore in FY 2024-25 as compared to a profit of Rs 0.05 crore in FY 2023-24.

Plastic Processing Division Tape Woven Products Sector Overview:

The usage of polyethylene (PE)/ polypropylene (PP) woven tape products like sacks, bags, Flexible Intermediate Bulk Containers (FIBCs), fabrics, geotextiles etc. has been growing in India. FIBC bags are constructed from woven PP fabric which may be single layered, with extra loose liner, or laminated. PP when treated with ultra violet acts as electrical insulator.

According to Global Markets Insights Report of March 2025: "The global flexible intermediate bulk container market was valued at USD 5.3 billion in 2024 and is estimated to grow at a CAGR of 6.3% to reach USD 9.8 billion by 2034. The growth of the market is attributed to factors such as growth in pharmaceutical and food industries and the booming e-commerce industry."

According to Horizon Grand View Research : "The intermediate bulk container market in India is expected to reach a projected revenue of US$ 1,258.9 million by 2030. A compound annual growth rate of 7.9% is expected of India intermediate bulk container market from 2023 to 2030."

Performance Overview:

The Companys production increased by about 9.02 per cent to 39,425 MT in FY 2024-25 as compared to 36,165 MT in FY 2023-24. The gross turnover increased by about 11.82 per cent to Rs 511.64 crore in FY 2024-25 as compared to gross turnover of Rs 457.58 crore in FY 2023-24. The net profit Increased by about 1.09 per cent to Rs 65.98 crore in FY 2024- 25 as compared to Rs 65.27 crore in FY 2023-24. The Companys exports were 2898.50 MT in FY 2024-25 as compared to 2404.57 MT in FY 2024-25. The FOB value of the exports increased by about 30.32 per cent to Rs 51.83 crore in FY 2024-25 as compared to Rs 39.77 crore in FY 2023-24 due to change in international scenario and our policy of concentrating on high value products.

Human Resource Development

Jai Corps most valuable assets are its human resources. With the support of its dedicated human resources, it confronted the rapid changes in the business environment last year with the resolve and determination to ensure that the business of the Company continues to enhance value creation.

The Companys talent pool as on 31st March 2025 was 1,397, which includes highly qualified professionals across all its business segments. The growth and sustained leadership of the Company is largely a function of its human resources. The Company has always aimed to create a workplace where every person can achieve his/her optimum potential. The Company has a performance rewarding culture, enabling it to create leaders out of its employees. The Company has also undertaken various training and development initiatives to hone the skill and expertise of its employees.

With diversified business interests, the Company empowers the inter-departmental and inter-unit movement to deserving individuals, ensuring better retention of talent and at the same time providing avenues to its employees.

Internal Control System

Jai Corp has a comprehensive system of internal controls to safeguard the Companys assets against loss from unauthorized use and ensure proper authorization of financial transactions. The system ensures the integrity of the accounting, recording and reporting of all transactions. It monitors and controls against any unauthorized disposition of assets, thus safeguarding the Companys assets.

Jai Corp ensures adherence to all internal control policies and procedures as well as compliance with all regulatory guidelines. This enhances the reliability of financial and operational information. The Company has appointed a reputed firm, Kakaria and Associates LLP as the internal auditor. The Audit Committee of the Company periodically reviews, with the management, inter alia performance of the internal auditor and adequacy of the internal control systems.

The internal control systems are adequate and commensurate with the size of the Company and the nature of its business.

Risk Concerns and Risk Management

Jai Corp is exposed to the normal industry risk of factors of competition, economic cycle, raw material availability and uncertainties in the international and domestic markets and credit risk. The Company has a system- based approach to business risk management. It has a proper and adequate system of controls designated to assist in the identification and management of risks. The Company manages these risks by maintaining a conservative financial profile and by following prudent business and risk management policies:

a) Clearly laid down roles and responsibilities of the various entities in relation to risk management. A range of responsibilities, from the strategic to the operational, is specified therein. These role definitions, inter alia, are aimed at ensuring formulation of appropriate risk management policies and procedures, their effective implementation, independent monitoring and reporting by internal audit.

b) A combination of centrally issued policies and divisionally-evolved procedures to bring strength to the process of ensuring that business risks are effectively addressed.

c) Appropriate structures are in place to pro- actively monitor and manage the inherent risks in businesses with proper risk profiling.

d) A professional and independent firm has been appointed as internal auditor to carry out the risk focused audits across divisions, enabling identification of areas where risk management processes may need to be improved. The Audit Committee of the Board of Directors regularly reviews internal auditors findings and provides strategic guidance on internal controls.

e) A comprehensive framework of strategic planning and performance management ensures realization of business objectives based on effective strategy implementation. The annual planning exercise requires all divisions to clearly identify their main risks and set out a mitigation plan with agreed time line and accountability.

Health, Safety and Environment

Jai Corp is committed to ensuring the health and safety of its employees, its plants and its surrounding communities at all its operations sites. Its the constant endeavour of the Company to provide safe and hygienic working conditions for its employees. The Company also strives to maintain a pro-active check on environmental compliance in its operations. Some of the initiatives undertaken by the Company in this regard are as follows:

a) Well-defined work practices ensure work in a manner that promotes safety and health of its employees as well as that of the environment they operate in.

b) Provide training to all concerned personnel to maintain health, safety and environment.

c) Creating awareness on health, safety, environment and developing the required skill, knowledge and confidence of the personnel so as to enable them to understand their responsibility.

d) Provide all required safety poster, safety equipment, first-aid box and facility, purified drinking water and adequate medical facility under the aegis of a full time qualified medical practitioner.

e) Maintaining excellent housekeeping practices across all locations and premises of the Company.

f) Maintaining safe, healthy and pollution-free environment in the work places with suitable safe work systems and methods of work like protective fencing of machinery, periodical testing of hoist and lifts, ropes and chain pulley blocks, testing of pressure vessels. Periodical and preventive maintenance of compressors and proper arrangement of fire extinguishers at designated places.

g) Obtaining a stability certificate for all the factory buildings as per the requirement of the Factories Act, 1948.

h) Developing safety awareness among the staff and other concerned workers.

i) Maintaining environmental norms prescribed by State/ Central Governments in the matter of air, water, quality, noise, environment etc.

j) Cleaning and disposing off of wastes and effluents, proper ventilation and sustaining of pollution-free atmosphere.

k) Taking suitable insurance policies such as fire, safety, group, personal accident etc.

Corporate Social Responsibility and Community Development

An essential component of Jai Corps social responsibility is to care for the community. The Company endeavours to make a positive contribution to underprivileged communities by supporting a wide range of activities like Socio-Economic Development, Educational Promotion, Rural development, Livelihood and Skill Development Training, Providing Clean and Safe drinking water to Tribal Villagers, Tree Plantation drive and health initiatives. Many of the community projects and programmes are driven by active participation from our employees. We, at Jai Corp, have defined a set of core values for ourselves - care, innovation, passion and trust – to guide us in all we do. We have decided to act as a catalyst between the government and the people.

1. Education Promotion Programme:

Education yields numerous benefits and profoundly impacts human life; an educated individual stands as an asset for our nation, with human capital being recognized as the paramount national resource. Guided by this principle, the Company launched an educational promotion initiative in the fiscal year 2014-15. Under this program, we have undertaken the sponsorship of tuition fees for domicile students of Dadra and Nagar Haveli and Daman and Diu (DNHDD), directly remitting payments to the respective institutions. Special emphasis is placed on supporting economically disadvantaged students.

In the fiscal year 2024-25, the Company extended sponsorship to 53 students, encompassing various disciplines such as MBBS, BAMS, BDS, diplomas and degrees in engineering, pharmacy, nursing, paramedical courses, and hotel management. Additionally, we introduced sponsorship for two new courses: "Bachelor of Design" and "Master of Fashion Management" at the National Institute of Fashion Technology (NIFT), and "BA – LLB" at the Gujarat National Law University (GNLU).

2. Safe Drinking Water to All:

All Children have the right to clean water and basic sanitation as stated in the Convention on the Rights of a Child, The ultimate aims of UNICEFs work in Water, Sanitation and Hygiene (WASH) is to ensure that all children fulfil this right. School attendance in India decreases when children are required to spend hours collecting water and close to 54 per cent of rural women – as well some adolescent girls – spend an estimated 35 minutes getting water every day,

Tribal communities of DNH and DD face a huge challenge in ensuring a clean and safe drinking water supply. For fulfilling the need of local communities Jai Corp has installed 19 Nos. of Reverse Osmosis (RO) Water Purification Plants at various places in DNHDD. Approximately 52,000 school students and villagers are expected to avail the benefit of safe drinking water. Reports show that after the installation of RO water purification plants, there is a drastic reduction in water-borne diseases like diarrhoea, typhoid, abdominal pain etc. We are doing regular maintenance expense of installed RO water purification plants. It is expected that the clean and wholesome drinking water initiative will improve the quality of life, health general well-being in tribal areas of DNHDD.

3. Promoting preventative healthcare:

Under this initiative, we provided free blood units to patients suffering from Thalassemia and Sickle Cell Anemia in DNHDD, in collaboration with the Blood Bank of the Indian Red Cross Society in Silvassa. During the year 2024-25, we supplied 268 blood units free of charge to 268 deserving patients affected by Thalassemia and Sickle Cell Anemia in DNHDD.