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 based on any subsequent developments, information or events.

Overview of Financial Year (FY)

According to the May 2026 Reserve Bank of India Bulletin, "The global economy continued to be shadowed by uncertainties in West Asia. Domestic economic activity exhibited resilience in April, with industrial and services sectors maintaining strength across several segments. In agriculture, summer sowing progressed well, supported by above normal pre-monsoon rainfall and comfortable reservoir levels. CPI inflation rose to 3.5 per cent in April, driven mainly by food inflation, while core inflation remained steady…." Thus, the countrys economy is currently under stress.

Key performance indicators of the Company are given below:

• The gross turnover decreased by 1.58 per cent to 503.87 crore in FY 2025-26 from 511.94 crore in FY 2024-25.

• The total EBIDTA increased by 109.87 per cent to

196.10 crore in FY 2025-26 from Rs. 93.44 crore in FY 2024-25.

• The net Profit increased by 127.87 per cent to 163.39 crore in FY 2025-26 from 71.70 crore in FY 2024-25.

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

Business Review

Jai Corp is a stakeholder in following entities-I- Mumbai SEZ Limited (MSEZ) II- Rewas Ports Limited (RPL)

Real Estate Sector Overview:

According to a research report by CBRE: they have foreseen the following key trends in capital markets in 2026:

• Investment Momentum: Indias real estate sector is poised for sustained investment momentum in 2026, building on the robust activity witnessed in the previous year.

• SectoralConsolidation&PatientCapital:Sovereign and pension funds are driving a competitive ?flight to quality? in the office and retail sectors, while the industrial and logistics landscape shifts towards strategic consolidation and platform dispositions via prospective InvITs and IPOs.

• Expansion of Alternative Segments: Substantial capital is pivoting towards data centres, flexible workspaces, healthcare, hospitality, and living platforms, bolstered by improved exit visibility and robust equity market performance that allows for clearer allocation and divestment strategies.

• Funding Recalibration: The lending landscape is shifting from debt-centric models to private equity and growth capital; rising liquidity and bank competition are prompting investment funds to adopt more flexible deal structures and recalibrate yield expectations to secure premium assets.

• REIT Transformation & Policy Fillip: REITs are evolving into mainstream equity-linked instruments following SEBI reclassification and RBIs proposal for direct bank lending, enhancing capital efficiency and unlocking value through the potential monetisation of state-owned CPSE assets.

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. 1.83 crore during FY 2025-26 as against a net profit of about Rs. 0.09 crore during FY 2024-25.

Oasis Holding FZC earned Rs. 8.42 crore as rental income from labour accommodations in the United Arab Emirates during the FY 2025-26 as against Rs. 7.70 crore during the FY 2024-25.

Steel Division Sector Overview:

The World Steel Association (worldsteel) released its Short Range Outlook (SRO) steel demand forecast for 2026 and 2027 in April 2026- "forecasts that global demand will grow by 0.3% in 2026 to reach 1,724 Mt, followed by an accelerated growth of 2.2% in 2027 to reach 1,762 Mt. …. India maintains its position as the worlds fastest-growing major steel market, with demand projected to expand by 7.4% in 2026 and accelerate to 9.2% in 2027."

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 2025-26 as compared to Nil MT of galvanized plain and galvanized corrugated steel sheets (GP/ GC) sheets during FY 2024-25. The Division reported turnover of Rs. nil crore in FY 2025-26 as compared to

0.30 crore in FY 2024-25. It reported a loss of Rs. 0.69 crore in FY 2025-26 as compared to a loss of Rs. 1.20 crore in FY 2024-25.

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 Lucintels April 2026 Report, " The future of the flexible intermediate bulk container market in India looks promising, with opportunities in the food product, chemical, and pharmaceutical markets. The global flexible intermediate bulk container market is expected to grow with a CAGR of 3.8% from 2025 to 2031. The flexible intermediate bulk container market in India is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the rising demand for bulk packaging solutions, the growing emphasis on sustainability & eco-friendly packaging, and the increasing adoption in e-commerce & logistics sectors.

Performance Overview:

The Companys production increased by about 2.29 percent to 40,326 MT in FY 2025-26 as compared to

39,425 MT in FY 2024-25. The gross turnover decreased by about 1.52 per cent to 503.87 crore in FY 2025-26 as compared to gross turnover of 511.64 crore in FY 2024-25. The net profit Increased by about 3.56 per cent to 68.33 crore in FY 2025-26 as compared to 65.98 crore in FY 2024-25. The Companys exports were 2,599.61 MT in FY 2025-26 as compared to 2,898.50 MT in FY 2024-25. The FOB value of exports decreased by about 11.98 per cent to 45.63 crore in FY 2025-26 as compared to 51.83 crore in FY 2024-25 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 2026 was 1,396, 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 endeavor 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) Provideallrequiredsafetyposter,safetyequipment, 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 2025-26, the Company extended sponsorship to 380 students, encompassing various disciplines such as MBBS, BAMS, BDS, diplomas and degrees in engineering, pharmacy and paramedical courses. 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 – spent 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 been installed 09 Nos. of Reverse Osmosis (RO) Water Purification Plants at a various places DNHDD. Approximately 29,250 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 2025-26, we supplied 775 blood units free of charge to 775 deserving patients affected by Thalassemia and Sickle Cell Anemia in DNHDD.