Jindal Poly Investment & Finance Company Ltd Management Discussions

The Management Discussion and Analysis (MDA) should be read in conjunction with the Audited Financial Statements of the Company, and the notes thereto for the year ended 31st March, 2024.

Business Overview

The Company is a Core Investment Company under Core Investment Companies (Reserve Bank) Directions, 2016 not required to get registered with RBI. Company holds investment mainly in Group companies. The performance of the investments mainly relies on the economic developments and the performance of the investee companies- its profi ts. The Company?s revenue also primarily depends on the movements in the value of the investee companies. Investments outside the group can only be made in specifi ed short term securities like money market instrument including money market Mutual Fund.

Operational and fi nancial Performance

Details of Financial Results and Operations of the Company are given as under:

Opportunities and Threats

The Company depends on the capital appreciation from the investment. Thus, better performance of the investee companies may be benefi cial for the Company while on the other hand, any failure by any investee Company to earn profi ts or distribute dividends or provide capital appreciation can impact the revenue stream of the Company. As the Company holds major investment in Power Sector, any favourable policy of the Government in power Sector may prove boon to the Company.

Performance

Financial Parameters of the Company are provided in the Board report under the head Financial Result and Operations in details. The Company continues to carry on the business as Core Investment Company and for that purpose it plans to invest in, acquire, subscribe for and hold shares, bonds, units, stocks, securities, debentures in group Companies and/ or mutual funds.

Risks and Concerns

Your Company fundamentally has been built on the principle of sound risk management practices, it has successfully weathered the market turbulence and continues to remain resilient. The Audit Committee of the Company reviews the probable risk that may affect the fi nancial position of the Company from time to time.

Internal Control System and Their Adequacy

As per Section 134(5)(e) of the Companies Act, 2013, the Directors have an overall responsibility for ensuring that the Company has implemented a robust system and framework of internal fi nancial controls. The Company had already developed and implemented a framework for ensuring internal controls over fi nancial reporting. This framework includes entity-level policies and processes such as code of conduct, confi dentiality and whistle blower policy and other polices such as organisation structure, insider trading policy, HR policy, etc. During the year, controls were tested and no reportable material weakness in design and effectiveness was observed.

Discussion on fi nancial performance with respect to operational performance and signifi cant changes in key fi nancial ratios

Financial performance, which has been given in the Directors? report, needs to be viewed in the above Backdrop. Details of key fi nancial ratios as compared to the immediately previous fi nancial year is given below:

Explanation:

A change of over 25% in the key fi nancial ratios occurred because the company earned exceptional income of Rs. 23,671.51 lakh in the fi nancial year 2022-23, which led to a signifi cant increase in profi t in the previous year. However, in the fi nancial year 2023-24, there were no exceptional gains, resulting in a decrease in total profi t, consequently decreases the ratio as well.

Material developments in human resources

The company is having suffi cient industry professionals to carry out its operations and follows good management practices. These are basically its human resources assets and integral to the Company?s ongoing success. They have played a signifi cant role and enabled the Company to deliver superior performance year after year. Company employs two employees to look after the business and administration of the Company. Board of Directors of the Company is also actively involved in the day-to-day functions of the Company

Cautionary Statement

This statement made in this section describes the Company?s objectives, projections, expectation and estimations which may be ‘forward looking statements? within the meaning of applicable securities laws and regulations. Forward– looking statements are based on certain assumptions and expectations of future events. Actual results might differ materially from those expressed or implied.