Jindal Leasefin Ltd Management Discussions

The Board of Directors of the Company have pleasure in presenting the Management Discussion and Analysis Report in adherence to the spirit enunciated in the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from to time.

BACKGROUND

Jindal Leasefin Limited is registered with the Reserve Bank of India as a Non-Banking Financial Company having diversified interests in the financial services sector. The companys long-term aspiration is to play a significant role in meeting the financial requirements of retail customers as well as corporate clients.

ECONOMY AND MARKETS

At the start of Fiscal year 2025, global economy was facing challenges in the form of unresolved and on-going geopolitical tensions between Russia and Ukraine and the second one between Israel and Iran. US economy performed at its best despite concerns around elevated debt levels. Strength in the labour market coincided with easing inflationary pressures which reflected in strong economic growth mainly on the back of robust consumption demand. Narratives were built around US exceptionalism (growth) while the global economy showed signs of sluggishness. Entire macro-economic narrative changed post the sweeping victory by the Republican candidate Donald Trump in the presidential elections in Jan-25 vis-a-vis the incumbent Joe Biden (Democrat). The plan to impose tariffs on trading partners and to abolish income tax was intended to transform US into a manufacturing hub. The decision to impose high tariffs on trading partners with elevated trade surplus with US led to retaliation mainly by China, Canada, Mexico and the European Union. Recessionary calls became louder as the uncertainty around tariffs increased. Despite, India emerged as by far the worlds fastest-growing major economy. Calendar Year (CY) 2024 began with optimism, as inflation seemed largely under control and major economies were expected to avoid recession. These expectations proved accurate.

The domestic economy was not prepared for a lower-than-expected mandate for the incumbent ruling party BJP in the general elections. Markets reacted negatively on the results day however were quick to regain post the announcement of government by NDA. However, it was in the run up to the elections and the model code of conduct which led to restricted government activity including slow capex intensity which led to a slowdown in the overall economic activity in FY25. The disinflationary policy rates in India by RBI continued through large part of FY25, as inflationary pressures remained elevated in the economy. There was a clear shift in RBIs policy decision post the appointment of Sanjay Malhotra as the RBI Governor (December 11, 2024), the policy focus shifted towards addressing growth concerns in the economy while inflation was said to be a supply side issue. RBI delivered its first rate cut of 25bps in February 2025 after keeping the policy rate restrictive at 6.5% for five years. INR traded in a tight range of 83-84/USD till October 2024, post November 2024 the sharp depreciation in INR (87.5/USD) led markets to believe that the RBIs FX strategy has turned easy. However, by the end of the fiscal INR appreciated to 85.5/USD.

The domestic economy continued to remain resilient on major macro indicators including robust forex reserves (USD 676Bn), easing inflation (3.3% in March 2025), GDP growth expectation of 6.5% for FY25, Manufacturing PMI (58.1) remained robust compared to other Asian peers, INR appreciated against the USD to 86/USD, Trade deficit of USD 282Bn in FY25 was cushioned by the robust services surplus of USD 188Bn amidst the heightened uncertainty around tariffs and the trade tensions. However, exports remained flat (0.1%YoY) in FY25 while imports grew by 6.2%, indicating that the sluggishness in exports could deteriorate further as the elevated tariffs are implemented and restricted access of China to US markets would lead to large scale dumping in neighboring countries, further deteriorating the trade imbalance.

OUTLOOK

The outlook for the leasing and finance industry in 2026 is generally positive, with expectations of continued growth and expansion across various sectors. The global leasing market is projected to reach $2.4 trillion by 2026, driven by factors such as digital transformation, sustainability initiatives, and increased automation.

OPPORTUNITIES AND THREATS

The Company closely monitors the potential opportunities and threats that arise from political, economic and regulatory environment, exchange rate fluctuations, technology changes and competition.

Though, the Company is optimistic about its future in the financial services industry but also understands and perceives certain threats as well.

The intensity of competition in capital market has increased and the fluctuations in the equity markets have made investors think twice before put in their hard-earned money. Cyber insecurity continues to be a threat to growth in the digital financial services. Further, uncertainty in the capital markets, owing to slow implementation of regulatory reforms and lack of consensus on important legislations can delay growth. Fluctuations in interest rates could adversely affect borrowing costs, interest income and net interest margins of companies in the financial sector.

COMPANY PERFORMANCE

The Company has over two decades of rich experience in the financial sector and in past few years has made substantial investments in people and technology and continues to focus on delivering steady performance. The Company is cognizant of the changes in the financial services sector and has always been well-prepared to overcome challenges and sustain its performance.

The Company seeks to strengthen its position by successfully differentiating service offerings and increasing the scale of operations. To achieve these goals, it seeks to increase business from existing and new clients. The aim is to build enduring relationships with both existing and new clients.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company is primarily engaged in the business of "Trading of Shares and Mutual funds" which constitutes a single reporting segment.

FINANCIAL PERFORMANCE

Over the last three decades, the Company has experienced various phases in its journey.

Net Worth:

Net Worth for the financial year under review was INR 6,37,03,950/- as compared to INR 8,26,74,639/- for the previous financial year.

Income:

Total negative revenue for the financial year under review was INR 2,93,10,390/- as compared to total income of INR 73,412/- for the previous financial year.

Expenditure:

Total expenses for the financial year under review was INR 19,58,730/- as compared to Rs. 19,29,621/- for the previous financial year.

Loss after taxes:

Loss after taxes for the financial year under review was INR 2,37,66,227/- as compared to Rs. INR 15,77,425/- for the previous financial year.

RISKS AND CONCERNS

Since the Company operates in the financial service sector, it is governed by several rules and regulations by various governing bodies. Non-compliance or misinterpretation may lead to inadequate observance. Also, the Company needs to be prepared to follow any new rules introduced or modifications brought about in existing laws. The Company prioritizes compliance with any new guidelines, circulars and notifications.

The financial services of the Company are exposed to various risks that are either inherent to the business or exposed to the changes in external environment.

Operational risks may result from inadequate control of internal processes, people, and systems. External factors also pose a threat to business operations. Changes in consumer preference may pose risk to financial earnings.

Redundancy in technology used or lack of proper technological support may pose risk to business growth. The Company keeps itself sufficiently invested in latest hardware and software to meet the requirements of diversified teams. Continuous efforts to upgrade Information Technology (IT) systems help the Company to avoid any technology-related risk.

The Company is exposed to risk arising out of its major strategic moves and the likelihood of replication by competitors. High growth prospects of the industry make it lucrative for new entrants both from domestic as well as international players.

The Company has a robust risk management framework to identify, monitor and minimize risk and also identify business opportunities.

INTERNAL CONTROLS

The internal control systems are designed to safeguard the Companys assets and ensure efficient productivity at all levels. The systems are adequate for the size of business and industry in which it operates. Well-defined processes, guidelines and procedures and adequate internal information systems enable the Company to enhance the internal controls. Decision-making is made easier due to proper information flow. Periodic and frequent audits ensure strict adherence to the set procedures and processes. Internal controls also ensure strict adherence to applicable laws and regulations.

The Audit Committee of the Board keeps a close eye on business operations and functioning of the internal audit function. The internal controls facilitate prompt detection and redressal of deviation(s), if any, in the business operations. The Company believes that these systems provide reasonable assurance that the Companys internal financial controls are designed effectively and are operating as intended.

HUMAN RESOURCES

The Company considers human capital to be a key pillar of growth. Its skilled and professional management team is a strong driving force. The Company ensures a safe, conducive and productive work environment. The aim is to minimize attrition of technologically driven and high performers, especially amidst the rapidly-evolving business environment.

Over a period, it has developed a strong culture of transparency through constant employee communication and has developed strong performance management practices, wherein, best in class reward and recognition systems are deployed. The Company has also set up a scalable recruitment and human resources management process which enables us to attract and retain high caliber employees.

CAUTIONARY STATEMENT

Statements in this report describe the Companys objectives, projections, estimates, expectations and predictions, which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent development, information or events or otherwise. These statements dont guarantee future performance and are subject to known and unknown risks, uncertainties and other factors such as change in the government regulations, tax laws, economic conditions and other incidental factors.

	For and on behalf of the Board of Directors of	JINDAL LEASEFIN LIMTED
Place: New Delhi Date : September 2, 2025	Sd/- Surender Kumar Jindal Managing Director DIN: 00130589	Sd/- Chavi Rungta Director DIN: 00481039