JM Financial Ltd Management Discussions

Report

Global growth resilient amidst challenges

Fiscal year 2024 had its own set of challenges, ranging from geo political issues (between Israel and Gaza) to supply side disruptions in the Red Sea, but economic growth continued to be robust, most notably in US. Initial expectation of an imminent recession did not play out; on the contrary the Federal Reserve (Fed) categorically indicated that recession is not in their base case for 2024. Even International Monetary Fund ("IMF") raised global growth projections from 2.9% to 3.1% for 2024, on the back of resilient growth in US and large Emerging Market ("EM") economies. Disinflationary pressures gathered pace in FY24, but are yet to reach regulatory targets which restricted the central banks ability to ease policy rates. Fed kept its policy rates unchanged at 5.5% since July 2023, allowing the impact of cumulative rate hikes to work its way through the economy. Central banks around the globe remained concerned of the risk of resurgence in inflationary pressures, which could impact the progress in inflation till now. Amidst volatility, brent crude prices gained 11.7% during FY24.

Indian Economy remains resilient with elevated inflation

Indias growth scenario continued to be robust while the disinflationary phase was shallower when compared to developed economies in FY24. This guided domestic monetary policy to be actively disinflationary; RBI held the policy rates at restrictive levels of 6.5% since February 2023 while effectively modulating the liquidity situation. Coordinated fiscal and monetary policy ensured that inflation did not go out of control at the same time the external balance was managed effectively by keeping trade deficit in check (~USD 20 bn/month), moreover record high services surplus aided in cushioning Current Account Deficit ("CAD") to 1.16% in Q3FY24. By the end of FY24, forex reserves reached record high levels of USD 646 bn, which entails an import cover ratio of ~11 months. Even the fiscal situation continued to remain in comfortable territory; actual fiscal deficit constituted Rs 16.5 tn which is 95.3% of budgeted estimates for FY24. GST collections averaged Rs 1.7 tn in FY24 vs. Rs 1.5 tn in the previous year, which is a growth of 11.6% YoY. Quality of expenditure improved notably, with Capex forming 21% of total expenses vs. 17% during FY23. Government reduced its fiscal deficit target by 0.1% to 5.8% for FY24, while continuing on its fiscal consolidation path, the target for FY25 has been sharply reduced to 5.1%. Robust macro fundamentals reflected in bond yields trending lower to 7.10% vs. 7.32% at the start of the year. Amongst the Asian peers, Indian Rupee was one of the least volatile currency, which reflected Indias robust financial performance and also due to RBIs active FX interventions.

RBIs growth and inflation projection for FY25 were kept unchanged at 7% and 4.5% respectively at its Monetary Policy Committee ("MPC") meet in April 2024. It is pertinent to note that elevated inflation expectation above RBIs target of 4% would restrict RBIs ability to ease policy rates.

Monetary policy remained actively disinflationary

Keeping the Repo rate unchanged since FY23, RBI carried out its monetary policy action through the liquidity route in FY24. Liquidity in the system had been in deficit mode for most part of FY24 (September-March 2024) and it is only at the end of March 2024 that liquidity turned surplus to the tune of H 1.6 tn. Easing liquidity conditions reflected in the moderation in call money rates (6.4%) below the repo rate. The coordinated fiscal and monetary policy throughout FY24 ensured that inflationary pressures were contained.

Moreover, in October 2023 MPC meeting, RBI moved away from 2- 4% inflation targeting to aligning inflation to a specific target of 4% on a durable basis. Considering, inflation print remained elevated around 5.1% since November 2023, monetary policy continued to be actively disinflationary.

India built adequate buffers to face external challenges

Even amidst on-going geo-political issues and related trade disruptions, Indias trade activity started recovering after a sharp decline at the start of FY24, steeper decline in imports (-5.4%) as compared to exports (-3.1%) ensured that the trade deficit was contained within the tolerable range. Trade deficit stood at USD 240 bn; averaged USD 20 bn per month in FY24. While merchandise trade deficit was contained, services surplus trended higher to record levels on the back of software and business services exports. Resilience in software exports was also on the back of resilience in Developed Market ("DM") economies like US. Services surplus grew 13.6% to the tune of USD 163 bn in FY24 as compared to USD 143 bn in the previous year, which aided in cushioning Indias Current Account Deficit.

Source: International Monetary Fund, RBI, CMIE

DISCUSSION ON BUSINESSES AND OPERATIONAL PERFORMANCE

The corporate structure of JM Financial Group (the "Group") as at March 31, 2024 is presented below:

JM Financial Limited (the "Company") is the only entity in the Group whose equity shares are listed on the stock exchanges. In view of the above structure, the way to understand the business performance of the Company is to analyse the standalone businesses and the businesses of its Group Entities. Our Group has evolved over a period of time to a leading diversified financial services firm. We have a wide range of product offerings and cater to several customer segments. During the year ended March 31, 2024, the Company received the NCLT order approving the Scheme of Arrangement (the "Scheme") on April 20, 2023 with the appointed date being April 1, 2023 which was filed with National Company Law Tribunal (the "NCLT") during the financial year 2022-23. Upon the Scheme becoming effective from May 18, 2023 (on filing of required forms with the Registrar of Companies, Mumbai), JM Financial Capital Limited has ceased to be a step-down subsidiary of the Company consequent upon its merger with JM Financial Services Limited, JM Financial Institutional Securities Limited has become a direct wholly owned subsidiary of the Company and the Private Wealth and PMS divisions have been demerged from JMFSL and have become part of the Company and are classified under the Investment Bank segment from the Platform AWS segment. The core business area of the Group remains financial services. Our business segments are as follows:

• Integrated Investment Bank (IB): The integrated IB segment caters to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, private wealth management, PMS, syndication and finance.

• Mortgage Lending: Our mortgage lending segment includes wholesale mortgage and retail mortgage as follows:

- Wholesale mortgage which includes lending to real estate developers

- Retail mortgage which includes affordable housing finance business and secured MSME lending.

• Alternative and Distressed Credit comprises the asset reconstruction business and alternative credit funds and

• Asset management, Wealth management and Securities business (Platform AWS) provides an integrated investment platform to individual clients and comprises retail and elite wealth management business, broking and mutual fund business. The Board of Directors at its meeting held on May 24, 2024 discussed the strategic direction for the various businesses in the Group and accordingly, the following strategic directions have been approved:

• The Wholesale Credit Businesses (Real Estate, Bespoke, Distressed Credit and Financial Institutions Financing) have seen a significant shift in the risk adjusted return for wholesale focused financiers. In light of the same, it is thought prudent to re-focus our expertise in the Wholesale Credit Businesses by pivoting from its on-balance sheet business model to syndicating transactions to investors and building large scale sales and distribution teams in the private credit and alternatives space.

• The Group shall sharpen its focus to further scale its fee and commission generating high growth, high Return on Equity (ROE) businesses i.e. Investment Banking, Institutional Equities and Retail / High Net worth Investors facing businesses of Asset Management, Mutual Fund, Wealth, Broking and Investment Advisory.

• The affordable housing focused Retail Mortgage business continues to be an integral part of the Group and has demonstrated strong performance over the last few years. Our business segments are discussed in detail below:

Integrated Investment Bank (IB)

Investment Banking Business

Investment banking division is amongst the oldest businesses within the JM Financial Group. We are a full service investment banking franchise present across products viz. equity capital markets, debt capital markets, mergers and acquisitions and private equity syndication with a strong track record of over five decades. We have deep relationships into large and emerging corporates in India and have acted as their advisors for decades. These relationships have strengthened over time and have enabled us to be the advisor of choice for managing marquee clients. Our expertise and relationships have helped us handle some of the most complex, innovative, challenging and largest transactions in India. We shall leverage our relationships and expertise built through our investment banking platform and we shall continue to provide solutions to our clients. We shall strive to deliver the entire firm to our clients and look to have a larger wallet share. Our pipeline of transactions is extremely healthy and subject to market conditions we would look to execute the same over the course of FY 2024-25.

Market Environment

Primary Market

The breakup of funds raised in public markets during FY 2023-24 as compared to the FY 2022-23 is as follows:

Capital market		FY 2023-24		FY 2022-23	FY 2023-24 v/s FY 2022-23
	No.	Rs. in Crore	No.	Rs. in Crore	Increase %
Initial Public Offering ("IPO")	77	65,121	37	52,116	25%
IPO on the SME Platform	204	5,971	125	2,235	167%
SME FPO	1	26	-	-	-

 

Capital market		FY 2023-24		FY 2022-23	FY 2023-24 v/s FY 2022-23
	No.	Rs. in Crore	No.	Rs. in Crore	Increase %
InvITs	5	13,916	2	1,166	1,094%
Rights Issue	16	19,595	12	5,779	239%
Qualified Institutions Placement ("QIP")	67	80,462	12	10,235	686%
SME QIP	1	37	-	-	-
Offer for Sale ("OFS")	31	24,569	19	11,159	120%
Total Equity Raised	402	2,09,697	207	82,690	154%
Total Debt raised through Public issue	48	20,787	32	7,444	179%
Total Amount Raised	450	2,30,484	239	90,134	156%

(Source: Prime Database as on April 1, 2024)

The Indian stock markets ended FY24 with strong gains across the board: Nifty rose by 29%, Nifty Midcap 100 by 60%, and Nifty Smallcap 100 by 70%. Indias market cap reached USD 4.4 tn, making it the worlds fifth-largest market in terms of market capitalization. Despite muted primary capital globally, Indian primary capital markets showed resilience in FY24 and were one of best performing markets globally. The Indian markets witnessed Rs. 2,09,697 crore equity raise in FY24, increase of 154% over FY23. There were 77 IPOs and 67 QIPs in FY24, the highest in the last decade.

JM Financial was a leader in Equity Capital Markets, successfully executed 56 transactions raising more than Rs 1,22,000 crore in FY24. JM Financial ranked #1 in IPO and QIP with 47% and 38% market share respectively in terms of funds raised. JM Financial acted on some of the largest marquee transactions, with an 80% market share in the top 10 IPOs (by size) and 60% market share in the top 5 QIPs (by size). Through our unwavering commitment and in-depth market knowledge, we assisted our clients in raising capital, from top-tier investors.

Mergers and Acquisition

During FY2023-24, 1,286 deals were announced as compared to 1,444 deals in FY 2022-23. Total value of the deals announced in FY2023-24 was H 8.1 lakh crore⁽¹⁾ as against H 13.9 lakh crore ⁽²⁾⁽³⁾ for FY2022-23.

Notes: 1. This does not include 449 deals for which deal values were not available

2. This does not include 434 deals for which deal values were not available

3. Includes merger of HDFC Ltd and HDFC Bank Ltd of H 5.2 lakh crore

4. Deals are prepared based on announcement date (excluding lapsed/withdrawn bids)

5. Deals where both target and bidder are outside India are not considered

6. Excluded deals where there is direct investment by any holding company into its own subsidiary company

Domestic v/s Cross-Border Activity

During FY 2023-24, domestic transactions contributed 60% to the overall M&A activity with deal value aggregating Rs 8.1 lakh crore

Note: 1. Deal value of FY 2022-23 includes merger of HDFC Ltd and HDFC Bank Ltd of H 5.2 lakh crore.

Private Equity

In FY 2023-24, private equity deals worth H 2.7 lakh crore were announced compared to H 2.4 lakh crore in FY 2022-23 (Source: JM Financial Estimates)

The sectors that experienced the maximum interest from private equity investors include power and power ancillary, healthcare and infrastructure.

Operational Performance of Investment Banking Business

During FY 2024, we concluded the following equity capital market transactions:

• Book Running Lead Manager to the IPOs of:

- Nexus Select Trust – Rs 3,200 Crore

- Tata Technologies - Rs 3,043 Crore

- JSW Infrastructure – Rs 2,800 Crore

- RR Kabel – Rs 2,439 Crore*

- Cello World – Rs 1,900 Crore

- Juniper Hotels – Rs 1,800 Crore

- Honasa Consumer – Rs 1,701 Crore

- Entero Healthcare Solutions – Rs 1,600 Crore

- SAMHI Hotels – Rs 1,500 Crore*

- Fedbank Financial Services – Rs 1,422 Crore*

- Doms Industries – Rs 1,200 Crore

- TVS Supply Chain – Rs 1,030 Crore*

- Avalon Technologies – Rs 1,025 Crore*

- Happy Forgings – Rs 1,009 Crore

- Jupiter Life Line Hospitals – Rs 993 Crore*

- Muthoot Microfin – Rs 960 Crore

- Apeejay Surrendra Park Hotels – Rs 920 Crore

- Ask Automotive – Rs 834 Crore

- Gopal Snacks – Rs 830 Crore*

- Rashi Peripherals – Rs 750 Crore*

- Cyient DLM – Rs 700 Crore*

- Zaggle Prepaid Ocean Services – Rs 661 Crore*

- Innova Captab – Rs 650 Crore*

- Ideaforge Technology – Rs 627 Crore*

- GPT Healthcare – Rs 525 Crore

*Including Pre-IPO

• Managers to the OFS in:

- Coal India – Rs 4,179 Crore

• Book runner to the Block Deals in:

- Samvardhana Motherson International by Sumitomo Wiring Systems Ltd. – Rs 3,638 Crore

- Five-Star Business Finance by Matrix Partners, TPG & Norwest Venture Partners – Rs 1,864 Crore

- Data Patterns (India) by Florintree Capital Partners – Rs 1,102 Crore

- Sona BLW Precision Forgings by Promoter – Rs 957 Crore

- Nippon Life India Asset Management by IndusInd Bank – Rs 795 Crore

- Go Fashion (India) by Sequoia Capital – Rs 624 Crore

- S.J.S Enterprises by Everstone Capital – Rs 561 Crore

- Clean Science & Technology by Promoter– Rs 556Crore

• Book Running Lead Managers to the QIP by:

- Bajaj Finance – Rs 8,800 Crore

- Union Bank of India – Rs 5,000 Crore and Rs 3,000 Crore

- Indian Bank – Rs 4,000 Crore

- Aditya Birla Capital – Rs 1,750 Crore

- Sheela Foam – Rs 1,200 Crore

- Chalet Hotel – Rs 1,000 Crore

- D B Realty – Rs 920 Crore

- P G Electroplast – Rs 500 Crore

- Orchid Pharma – Rs 400 Crore

- Satin Creditcare Network – Rs 250 Crore

- Arman Financial Services – Rs 230 Crore

- Astra Microwave Products – Rs 225 Crore

• Manager to the Buyback of:

- TCS – Rs 17,000 Crore

- Wipro – Rs 12,000 Crore

- L&T – 10,000 Crore

- Bajaj Auto – Rs 4,000 Crore

- Piramal Enterprises – Rs 1,750 Crore

Mergers & Acquisitions (M&A) and Private Equity (PE) Syndication

We are proud to maintain our growth momentum in the Indian M&A industry, having successfully announced and/ or completed 15 M&A and PE transactions with an aggregate deal value of ~H 5,62,000 crore during FY24.

Marquee M&A and PE transactions where JM Financial was an advisor during FY24 include:

• Exclusive Financial Advisor to certain promoters of Sanghi Industries on the sale of their majority stake to Ambuja Cements;

• Exclusive Financial Advisor to Kesoram Industries Limited for demerger of its cement business to UltraTech;

• Exclusive Financial Advisor to the Navi Group for sale of its microfinance subsidiary Chaitanya India Fin Credit to Svatantra Microfin;

• Financial Advisor to IDFC First Bank on amalgamation of IDFC Ltd with IDFC First Bank;

• Exclusive Financial Advisor to Gokaldas Exports Limited on its acquisition of apparel business of Matrix Clothing;

• Exclusive Financial Advisor to Gokaldas Exports Limited on their acquisition of Atraco Group;

• Exclusive Financial advisor to Bajaj Finserv Health Limited on its acquisition of Vidal Healthcare Limited;

• Financial Advisor to TVS Credit Services on fundraise from Premji Invest;

• Exclusive Financial Advisor to Pocket Aces & its Shareholders on its acquisition by Saregama India Ltd;

• Exclusive Financial Advisor to Burman Group and Manager to the Open Offer to the Public shareholders of Religare Enterprises;

• Financial Advisor to Canpac Trends and its selling shareholders on fundraise from Investcorp;

• Financial Advisor to HDFC Limited on its merger with HDFC Bank Limited;

• Financial Advisor to Course5 Intelligence Services on fundraise from 360 ONE Asset, Nuvama and Carnelian Asset;

• Fairness Opinion to the Board of AU Small Finance Bank on the share exchange ratio for the proposed amalgamation of Fincare Small Finance Bank into and with AU Small Finance Bank;

• Fairness Opinion to the Board of ICICI Bank on share exchange ratio of proposed delisting of ICICI Securities via share swap of ICICI Banks shares

Source: Mergermaket and JM Financial Internal Database

Institutional Equities

Our Institutional Equities business offers a suite of products to domestic and foreign institutional investors translating into execution in cash and derivatives segment. We seek to deliver to our clients stock ideas, customised servicing, market insights, and eventually efficient execution supported by after trade settlement. Our swift and seamless delivery is backed by our professional and experienced talent across sales, trading, research, operations, compliance and technology functions. In FY24, Indian equities were supported by resilient flows which was witnessed in heightened primary and secondary market activity. However, yields in the business remain under pressure due to increasing volumes and competitive intensity. Albeit, our performance continued to remain strong primarily achieved by our talent pool across teams, client servicing, customised and differentiated offerings to our clients. This also reaffirmed our position to be one of the leading stock brokers / investment banks in the country. Indias structural story remains intact backed by various narratives such as its reaffirmation of its political stability, China +1 theme, make in India, Production Linked Incentive (PLI) schemes, adoption of technology (UPI is applauded by the world), thrust on infrastructure, etc. The first degree impact of this would be witnessed in Indian equity markets which at this juncture are also backed by strong Systematic Investment Plan (SIP) flows hitting record highs every month; total SIP contribution for FY24 was Rs 1,99,219 crore vs Rs 1,55,972 crore in FY23 and Rs 1,24,566 crore in FY22. SIP flows are anticipated to be stable to growing given Indias relatively lower savings rate in equity as an asset class. India has been climbing the ladder on global stock market with its market capitalization at USD 4.33 tn positioning itself after US, China and Japan.

Leverage Products

Our portfolio under this segment can be broadly classified into the following:

(i) Capital markets lending;

(ii) Bespoke finance;

(iii) Wholesale mortgage (overflow) lending;

(iv) Financial institutional financing; and

(v) Retail Mortgage (including purchase pool of assets and lending in retail mortgage lending).

Capital Markets lending

Our Capital Markets Lending group offers loans against shares, and other securities to meet the fund requirements of various categories of clients inter-alia Retail, HNI, HUFs, and Corporate entities. Loans under this segment are typically in the nature of short-term advances. The capital markets loan book as at March 31, 2024 stood at Rs 348 crore as compared to Rs 1,062 crore as at March 31, 2023.

Bespoke Finance

The Bespoke Finance Group ("BFG") aims to meet the myriad financing requirements of corporates/promoters by providing tailor-made solutions for their capital needs. BFG provides comprehensive structured financing solutions to operating businesses for refinancing existing debt/consolidation of capital structure, working capital, growth / capex funding, acquisition financing, bridge to M&A / IPO financing etc. We also offer niche financing solutions to promoters against listed / unlisted securities or mortgage of real estate assets to meet their strategic requirements such as private equity/shareholder buyout/family settlement, stake accretions / funds for capital structure correction with event based takeout structures (IPO / strategic takeout) and vanilla debt refinancing structures. We differentiate our lending business basis our ability to provide large balance sheet commitment, strong syndication and placement capability, superior client management and efficient turnaround time. The Bespoke Finance book as at March 31, 2024 stood at Rs 2,936 crore as compared to Rs 2,636 crore as at March 31, 2023. During FY24, the Bespoke Finance Group focused on profitable short / medium term transactions. BFG has continuously evolved over past few years to adapt to market changes. During past few years, BFG has been able to establish itself as one of the few players which could deliver large sized complex transactions with negligible credit costs. We ramped up our syndication business this year with more originate to sell credit deals enabling balance sheet churn and higher profitability, whilst also creating a strong market recall for our transactions. Average annual deal volume originated has been approximately Rs 3,500 crore for the last 2 years. Loan book AUM has largely remained constant due to focus on fee-based churn transactions. The focus of BFG has been on originating shorter to medium tenor, higher yielding situational financing structures.

Given our over alllowleverage and strong balance sheet position, we have a strong competitive advantage in underwriting complex transactions, thereby providing well-structured and speedy one stop financing solution to our clients. Our broader strategy continues to remain opportunistic in our approach and achieve a reasonable mix of short and medium tenor deals with attractive average yield at a portfolio level.

Financial Institutional Financing ("FIF")

Our Financial Institution Financing business provides customized credit facilities to Financial Institutions (FIs). FIF specialises in underwriting loans to FIs towards their onward lending programme to NBFIs that would typically be rated between BBB and AA. The strategy is to onboard clients that have a strong management team, high-quality investors as a part of their capital structure and scalable business model along with efficient processes and risk management framework. In FY 2023-24, we evaluated over 40 companies across emerging financial sectors including Micro finance, MSME Finance, Consumer Finance, Vehicle Finance, Affordable Housing Finance among others and on boarded select clients basis comprehensive due diligence process. The FIF loan book for March 31, 2024 stood at Rs 1,477 crore as compared to Rs 1,592 crore as at March 31, 2023.

FIF will continue to support client partners on their capital needs across their lifecycle and actively cover 140+ clients in the NBFC space to assess them and monitor them closely for on boarding.

Real Estate Consultancy Services (Dwello.in)

Dwello is a tech-based real estate consulting division operating within the primary residential real estate space. Our team, of experienced professionals and trained consultants, leverages cutting-edge technology and analytics and assists customers in making right decisions during their home buying journey. Dwello has presence in top 4 Indian cities for residential real estate by volume viz., Mumbai, Pune, Bengaluru and NCR. Our portal displayed detailed information on 16,332 projects, with 10,057 projects from Mumbai, 4,916 projects from Pune, 983 projects from Bengaluru, 11 projects from Delhi and 273 projects from Gurugram. In the last financial year, our teams facilitated sales of 1,510 units spanning 1.05 million sq.ft. of carpet area. These units were spread across 650 projects belonging to 400 developers across 4 cities. We made this possible by facilitating site visits of 17,470 unique customers on almost 3,000 projects.

Investment Grade, Debt Trading and syndication (Debt Capital Markets)

The Investment Grade Group ("IGG") in its fourth full year of operations consolidated its position in the league tables working extensively with issuers in both the private and public sector space. The desk continued to actively trade in government securities as well as corporate bonds.

Private Equity Fund Management

JM Financial India Fund II ("Fund II") is a 2019 vintage (i.e., Final Close) private equity fund established as a trust under the Indian Trust Act, 1882 and registered with the Securities and Exchange Board of India (the "SEBI") under the SEBI (Alternative Investment Funds) Regulations 2012, as a Category II AIF. Fund II is an India-focused, sector-agnostic private equity fund, with the primary objective to achieve superior risk-adjusted returns by investing growth capital in dynamic and fast-growing, small to mid-market Indian companies. We believe that the small to mid-market opportunity is relatively less crowded, allowing attractive investment opportunities in early-to-growth stage companies that are in their early phase of expansion. Key sectors of interest include financial services, consumer, manufacturing, technology and others (logistics, agri-allied sectors, etc.). Fund II has completed ten investments and is fully deployed. In addition, Fund II has completed partial divestments from two of its portfolio companies, resulting in distributions to investors of approx. 65% of paid-in capital, at attractive rates of return.

JM Financial India Growth Fund III ("Fund III") is a 2023 vintage (i.e., Final Close) private equity fund established as a trust under the Indian Trust Act, 1882 and registered with the Securities and Exchange Board of India (the "SEBI") under the SEBI (Alternative Investment Funds) Regulations 2012, as a Category II AIF. As of March 31, 2024, Fund III has completed five investments - API Holdings Limited, Aarman Solutions Private Limited, BigHaat Agro Private Limited, SilverEdge Technologies Private Limited, and Energy Beverages Private Limited, and continues to evaluate a strong pipeline of investment opportunities in its target segment. Similar to Fund II, Fund III is an India-focused, sector-agnostic private equity fund, with the primary objective to achieve superior risk-adjusted returns by investing growth capital in dynamic and fast-growing, small to mid-market Indian companies.

In addition to the two operating Funds, JM Financial also managed the JM Financial India Fund ("Fund I"), a 2006 vintage (i.e. Final Close) India focused private equity fund. Fund I raised H 952 crore and has successfully exited from all of its portfolio companies (including one partial exit) and distributed / appropriated an aggregate of 203% in rupee terms (before income tax related retentions and reserves), of the capital contributions.

Our Private Equity fund business may face challenges in terms of our ability to raise funds and being able to exit portfolio companies at desired valuations. Further, our portfolio investments are subject to business specific and macroeconomic threats.

Private Wealth Management

Private Wealth serves over 900 key clients in India across Ultra High Net worth Individuals (UHNIs), Family Offices, Corporates and Institutions. Total team strength has crossed 115 employees in FY24 with presence in seven metros and two offshore locations (Dubai and Singapore). During the year, team has grown by over 25% across functions and locations to offer enhanced coverage in upcoming cities of affluence. We intend to keep growing with focus on wider coverage of Tier 2 and Tier 3 cities.

Private Wealth AUM* (excluding custody assets) stood at Rs 68,105 crore as at March 31, 2024 as against Rs 56,515 crore as at March 31, 2023, demonstrating a healthy growth of 21% YoY. Private Wealth has a robust open architecture platform offering products across different asset classes including equities, fixed income, commodities, currency, real estate and other alternatives. Our unique positioning, as part of the Integrated Investment Bank, enhances our ability to offer industry leading products and solutions. Our Private Wealth platform offers the entire gamut of wealth products including Mutual Funds, Portfolio Management Services, Alternative Investment Funds through in-house and third-party asset managers. We also offer in-house equity broking and lending solutions. The products proposition is ably complemented by transactional offerings, both in public and private markets. In keeping with the digital age, we have equipped our clients with the freedom to access their wealth and portfolio information at their convenience. Our clients now get a service experience where technology gets combined with a personalized human interface.

*Assets under Management (AUM) comprises distribution assets and advisory assets, as applicable

Portfolio Management Services (PMS)

Our AUM grew by 61% YoY from Rs 1,094 Crore as of FY23 to Rs 1,759 Crore as of FY24. In the Non-Discretionary Portfolio Management Services ("NDPMS"), the AUM grew by 53% YoY to Rs 982 Crore as of FY24 from Rs 641 Crore as of FY23. In the Discretionary Portfolio Management Services ("DPMS"), the AUM grew by 72% YoY to Rs 777 Crore as of FY24 from Rs 453 Crore as of FY23. With CAGR of 16.2% since inception, flagship scheme FOCUS continues to report a 0.9% Alpha. The flexi-cap Opportunistic scheme also turned around in performance with a strong 1-year and 3-year alpha of 7.1% and 2.5% respectively. The smaller DPMS portfolio India Resurgent Portfolio ("IRP") Series III has a decent 3-year relative out performance of 4.3% CAGR. NDPMS has generated an absolute performance of 41.3% in the last year for all paying accounts. Apex scheme has delivered alpha of 0.4% and 2.3% over 1 Year and since inception respectively. Over 80% of total Discretionary AUM has reported positive alpha since inception.

International Operations

We have established subsidiaries/step down subsidiaries in Mauritius, Singapore and USA to cater to and service overseas clients/investors and to carry out permitted business activities in these jurisdictions. We also have a representative office in Dubai.

Regulatory Actions:

During the year ended March 31, 2024, the Securities and Exchange Board of India (the "SEBI") based on the examination, has issued an interim exparte order on March 7, 2024 barring the Company from taking any new mandate for acting as a lead manager for any public issue of debt securities. For the existing mandates, the Company may continue to act as a lead manager for public issue of debt securities for a period of 60 days from the date of the interim ex-parte order. SEBI shall undertake an investigation into the issues covered under the said Order and complete the same within a period of six months from the date of the said Order. The Company is fully cooperating with SEBI in this investigation.

Based on a limited review of the books of JM Financial Products Limited ("JMFPL"), a subsidiary of the Company, the Reserve Bank of India (the "RBI") has directed JMFPL to cease and desist, with immediate effect, from doing any form of financing against shares and debentures, including sanction and disbursal of loans against initial public offering of shares as well as against subscription to debentures. JMFPL, however, has been permitted to continue to service its existing loan accounts through usual collection and recovery process. These business restrictions, will be reviewed upon the completion of a special audit instituted by the RBI and after rectification of the deficiencies to the satisfaction of RBI. JMFPL is complying with the direction given by the RBI and is working with the auditors appointed by the RBI for the special audit.

In view of the uncertainties, the impact of these developments, if any, shall be assessed and given effect based on the outcome of the aforesaid matter in respective future periods.

Our IB segment is subject to threats which include

• macro-economic factors such as abnormal monsoon, geopolitical tensions, global economic threats impacting the business, economic situation, liquidity situation in the market, cost effective availability of funding and capital market environment; and

• business specific threats such as increased intensity of competition from players across the industry creating downward pressure on yields, fees, commissions and brokerages, regulatory challenges, technology innovations, amongst others.

Financial Performance of Integrated Investment Bank Segment

(Rs. in Crore)

Particulars	FY 2023-24	FY 2022-23
Gross Income	1,977.98	1,299.11
Profit before tax	911.27	486.47
Profit after tax before non-controlling interest	706.75	371.65
Profit after tax after non-controlling interest	705.53	370.69
Segment Capital Employed	3,092.32	2,729.66

Mortgage Lending

The mortgage lending business is divided into two parts (i) Wholesale Mortgage Lending (ii) Retail Mortgage Lending.

Wholesale Mortgage Lending

The Wholesale Mortgage Lending business is focused on offering a solution-based approach to the clients in the real estate sector by catering to their various financing requirements and by keeping in mind the typical nature of the industry. We consider our clients as partners and aspire to have significant mind share of our clients when it comes to financing requirements/solutions.

• Project Loans: Our wholesale mortgage financing business is primarily focused on providing project specific funding for ongoing residential and commercial projects which have received key regulatory approvals.

• Projects at Early Stage Loan: This is offered for projects that are expected to be launched in the near-term. These projects are typically in the approval stage and may be raising funds for development and/or for seeking relevant approvals. These loans are typically advanced in part as a portion of a refinancing of existing loans and in part, as project related funding. Repayment of the loan is expected from project cash flows that will accrue during the loan tenure.

• Loan against Property: These loans are advanced against fully constructed residential and/ or commercial units that have been granted an occupation certificate. Repayment of the loan is expected from sale of the units.

• Loan against Securities: Clients may be granted these loan against a pledge of listed/unlisted securities of their companies to bridge the gap in the event the inventory of the developer is not being sold as expected, thereby offering cash flow to the developer until completion of the project. These loans are advanced to select borrower-groups with strong credit history in few cities. These loans are mainly provided for funding the clients group activities and repayment of existing loans (secured and unsecured).

The momentum in real estate sector activities, especially in the residential segment in the markets we operate in, observed in the latter part of FY23 continued into FY24. This has been in line with our expectations as we estimated demand for residential real estate to increase due to various factors including need for larger homes post Covid-19, low interest rates, general perception of bottoming out of residential real estate prices and measures taken by the central and state governments. This has also resulted in increased volumes observed in land transactions either via outright acquisitions or development agreements. Another phenomenon playing out in the market is that of consolidation. We continue to look for opportunities to undertake financing of projects based on balanced risk-return considerations. Our primary focus is on funding residential projects that are in Tier I cities like Mumbai, Thane, Pune, NCR, Bengaluru, Chennai and Hyderabad. As at March 31, 2024, the total loan book for wholesale mortgage lending stood at Rs 4,917 crore as compared to Rs 8,445 crore as at March 31, 2023.

Retail Mortgage Lending

Our housing finance business commenced operations in 2017 in order to expand groups presence in retail mortgage space with a focus on affordable housing finance. JM Financial Home Loans Limited (the "JMFHLL"), the Groups housing finance entity, offers the whole gamut of housing finance products including various kinds of home loans and loan against residential property. We chose to serve the growing needs of housing finance customers in the low and middle-income segments of sub-urban and rural India, going contrary to the industrys preference to serve the customers in the metro cities and urban regions of the country. The majority of our customers have limited access to formal banking credit facilities. We work to bridge this gap by providing affordable and reliable credit to the doors to several Indians who are willing to have house of their own and have limited access to formal banking credit facilities. We are customer centric and are primarily focused on servicing our customers.

Though the policy rates were increased by 250 bps during the previous year, there was a transition to the transmission to our cost of borrowing which had a bearing during the current year. To counter this increase, there was a corresponding increase in rates to our customers. Accordingly, we passed on 115 bps to our customers, in totality in both the years.

In terms of operating performance as at March 31, 2024, our total retail mortgage loan book stood at Rs 3,239 crore as compared to Rs 1,918 crore as at March 31, 2023. The Gross Non-Performing Assets (GNPA) was at 0.8% as of March 31, 2024. The GNPA is below industry average GNPA despite focusing on the affordable housing segment, which reflects that the conservative credit underwriting approach as well as a robust risk framework. We expanded our branch network from 93 to 112 during financial year 2023-24. The various product offering has evolved over a period of time based on our experiences across geographies and our close association with our customers:

Home Loans

We offer home loans for ready to move in homes, home construction, home improvement, home extension, plot plus construction, balance transfer and top up loans to customers across 112 branches in India with an average loan value of Rs 11 Lakh. We offer home loan to customers in the affordable segment on a proactive basis.

MSME

We offer Loans Against Property (LAP) to SMEs, MSMEs, self-employed individuals and professionals against mortgage of their residential and commercial properties. This product helps clients address funding requirements for both personal and business needs. Clients leverage the economic worth of their property without giving away ownership.

Our mortgage lending segment is subject to threats which include:

• Macro-economic factors such as geopolitical tensions, global economic threats impacting the business, economic situation, liquidity situation in the market, cost effective availability of funding;

• Business specific threats such as increased intensity of competition from players across the industry creating downward pressure on yields, fees, commissions and brokerages, regulatory challenges, technology innovations, amongst others; and

• Regulatory changes and adverse sector changes including slowdown in the real estate sector and housing.

Financial performance of Mortgage Lending Segment

(Rs. in Crore)

Particulars	FY 2023-24	FY 2022-23
Gross Income	1,530.58	1,318.49
Profit before tax	88.11	467.72
Profit after tax before non- controlling interest	58.44	341.73
Profit after tax after non- controlling interest	30.93	161.49
Segment Capital Employed	4,610.76	4,348.66

Alternative and Distressed Credit Business

Our Distressed Credit team is engaged in the acquisition and resolution of distressed assets and has built a strong expertise driven track record of around 15 years in this business. We have a team of professionals from diverse backgrounds who are experienced in banking, corporate debt restructuring and bankruptcy. The team is also involved in financial and legal due diligence for acquisitions and resolution. We also closely work with diverse sector-specific professionals and firms for revival of the acquired units. During the year, we continued to diversify our portfolio to acquire retail assets, reducing concentration risk and enhancing resilience against sector-specific challenges. We acquired dues of Rs 4,255 crore in FY24. The recoveries stood strong at Rs 2,855 crore as against Rs 1,067 crore as at March 31, 2023), an increase of 167%. Security Receipts worth Rs 1,303 crore were redeemed during the year. The AUM grew by 7% to Rs 14,500 crore as at March 31, 2024 from Rs 13,558 crore as at March 31, 2023. This AUM is well diversified into multiple sectors. The outstanding contribution of JMFARC stood at Rs 3,789 crore as at March 31, 2024 as against Rs 3,862 crore as at March 31, 2023.

From inception till March 31, 2024, we have acquired total outstanding dues of Rs 77,763 crore at a gross consideration of Rs 23,925 crore. We have had 80 exits (trusts) spread across sectors which is a testimony to our strong expertise gained over the years in resolving distressed assets. During FY24, JM Financial Asset Reconstruction Company Limited (the "JMFARC") has recognised loss of Rs 985 crore on account of fair valuation of investments and loans in the distressed credit business. This was primarily related to one large account aggregating Rs 847 crore (excluding tax) due to a change in resolution strategy/plan and events subsequent to the balance sheet date. In view of the above, the Group shall be infusing upto Rs 600 crore equity into JMFARC.

Our business priorities looking ahead:

• full cash acquisitions of both retail portfolios and corporate accounts, on a co-investment model, along with financial investors and strategic partners;

• Complete the process of resolution of accounts which are at an advanced stage.

Real Estate Fund

The Property Fund continues to focus on exploring exit opportunities for its outstanding portfolio investments. During the year, the offshore scheme of the Property Fund has been operationally wounded up.

Our alternative and distressed credit segment is subject to threats which include:

• macro-economic factors such as abnormal monsoon, geopolitical tensions, global economic threats impacting the business, economic situation, liquidity situation in the market, cost effective availability of funding;

• business specific threats such as increased intensity of competition from players across the industry creating downward pressure on yields, fees, amongst others; and

• regulatory changes, delays and adverse sector changes affecting the acquisition and resolution of assets.

Financial performance of Alternative and Distressed Credit Business

(Rs. in Crore)

Particulars	FY 2023-24	FY 2022-23
Gross Income	326.17	137.13
(Loss) before tax	(905.40)	(172.02)
(Loss) after tax before non- controlling interest	(923.09)	(130.20)
(Loss) after tax after non- controlling interest	(527.07)	(73.39)
Adjusted Profit after tax after non- controlling interest**	46.98	34.01
Segment Capital Employed*	720.22	1,812.43

* Includes non-controlling interest of Security receipts holders under distressed credit business ** Adjusted for additional provision considered in Security Receipts ("SRs") on a few accounts and loans in our distressed credit business in FY24 (post tax and non-controlling interest) of Rs 574.05 crore (FY23: Rs 107.40 Crore).

Asset management, Wealth management and Securities business (Platform AWS)

Equity Brokerage Group

The Equity Brokerage Group offers research based equity advisory and trading services to high net-worth individuals, corporates, and retail clients. The Equity Brokerage Group has its presence in 215 cities in India through a network of 55 branches and 801 franchisees across 814 locations. The combination of branches and franchisees has helped us in achieving a de-risked business model and a widespread presence. We shall continue to focus on strengthening our branch and franchisee network. We have expanded our reach and visibility through expanding our presence in eastern India and other Tier 2 and 3 cities. We have made hires to strengthen our product and investment counselors team for in-house and third-party investment products through our broking channel. SEBI MTF is a lending facility that enables investors to invest in equities based on cash/stock margin. During the year, there was a focus on building SEBI MTF book and the book grew more than two times to Rs 1,410 crore as of March 31,2024 as compared to Rs 636 Crore as of March 31,2023.

The year on year comparative details of average daily turnover in the Cash and Derivative segments of BSE and NSE are given below:

(Rs. in Crore)

Average Daily Volume	FY 2023-24	FY 2022-23	% Increase
Cash Market	94,975	62,547	52%
Derivative	3,57,47,273	1,54,87,543	131%
Total	3,58,42,248	1,55,50,090	130%

(Source: SEBI, NSE, BSE)

During FY 2023-24, our average daily volume grew by 58% to Rs 42,468 crore as compared to Rs 26,831 crore in FY 2022-23.

Digital Business Group

In April 2023, we launched the trading app in India. We introduced new subscription options, which broadened our services. This expansion helped us achieve a daily trading volume of around Rs 7,200 crore and 55% rate of new account activation. This move strengthened our position in the market and also underscored our commitment to continuously innovating and improving our services.

• BlinkX App

This year, a lot of effort has been put into making our app easy and hassle-free to use. We have implemented multiple checkpoints to ensure it works perfectly whenever our customers interact with it. We have also set up a couple of special centers to monitor app security and 24/7 availability. A conscious decision was made to switch to in-house technology solutions, to reduce dependency on external services. This makes everything more stable and ready to grow with our customers needs. We significantly enhanced our customer service also by introducing our new CX Support CRM system for more efficient and accurate support, improving response times and customer satisfaction. With continuous improvements, our app is more reliable than ever, throughout maintaining an app rating of over 4.5 on the Google Play Store.

• BlinkX Website and organic growth - We have enhanced the BlinkX website to make it more customer friendly and visually appealing and thereby improving its performance to accommodate more visitors efficiently. New features have been added, including sections for IPOs, detailed company and market indices pages, and practical tools like calculators aimed at attracting more users by catering to their diverse interests. By handling website development internally, weve streamlined updates, bolstered security with automated integrations and deployments, and protected data with advanced encryption. These improvements have significantly boosted our visibility on search engines, leading to a substantial increase in visitor traffic and new user registrations.

• Acquisition Strategy and App Optimization - Our strategy focused on growing our business efficiently and economically. We used advertising campaigns to attract more users at a lower cost, significantly improving our marketing effectiveness. We also targeted users at key decision-making stages, enhancing our conversion rates. We incorporated advanced analytics and targeting technologies into our app, which helped us maintain high-quality user accounts.

• Digital Marketing – We started building knowledge-content on digital channels and our own website in the form of articles, videos, short-videos and info-graphic nuggets. Dissemination of this content will help us in wider reach and give a superior experience to the users.

• Brand & Communications – We launched our first major campaign, "Made for the Market," which highlighted the investing skills of Indians and gained extensive visibility on social media and in major publications, boosting our brands profile. Our leadership was frequently spotlighted in media outlets enhancing our reputation as industry leaders. We were recognized for our innovative efforts with several prestigious awards, including Best Use of Data Ethics and Governance, Best Cloud Initiative, and Best Customer Experience Strategy of the Year. Our executives also participated in panels hosted by industry leaders further establishing our thought leadership.

As a part of our brand-building strategy through campus programs, we hosted our first online campus "Brand Brainathon", attracting over 850 participants from 250 teams across Indias premier business schools. These activities are poised to increase to leverage campus engagement and talent scouting. In a testament to our workplace environment, BlinkX was honored with the "Great Place to Work" certification, reflecting our commitment to fostering a supportive and dynamic corporate culture.

At BlinkX, were setting the pace for the future by harnessing advanced AI technologies and expanding our product ecosystem to meet the evolving needs of our diverse customer base. Our commitment to continuous innovation and enhanced customer engagement strategies positions us at the forefront of delivering exceptional service in an ever-changing digital landscape.

Elite Wealth Management

Elite Wealth Management focuses on clients with net worth in the range of Rs 50 Lakhs to Rs 10 crore seeking diverse investment objectives such as creating regular income, wealth creation and wealth preservation. It is currently present in 8 cities across India and caters to mass affluent individuals with a team of 65 as of March 31, 2024. We endeavour to offer holistic and solution-oriented investment options for our clients such as Retirement Planning, Goal-based Investment Products, Asset Allocation based on investment objectives, etc. Assets under management (AUM)* grew by 55% YoY to Rs 1,901 crore as at March 31, 2024 as against Rs 1,228 crore as at March 31, 2023.

Retail Wealth Management

Retail Wealth Management has a network of 13,500+ active Independent Financial Distributors ("IFDs") who distribute various financial products such as Mutual Funds, SIPs, Fixed Deposits, IPOs and Bonds to retail and high-net-worth customers nationwide. A snapshot of the performance is as follows:

• We have procured more than 1.23 crore applications for IPOs across FY24.

• Mobilized over Rs 2,080 crore in various Equity and Debt Mutual Fund schemes and more than Rs 6,300 Crore in various corporate Fixed Deposits and Bonds.

• AUM* grew by 21% YoY to Rs 28,795 crore as of March 31, 2024 from Rs 23,828 crore as of March 31, 2023.

• 1,700+ New partners from different cities joined us as partners.

• We have reached 1.7 Million clients (excluding IPO Investors) spread across 10,396 pin codes through our IFD network. Our presence in India accounts for 55% of PAN India pin codes.

• Strengthened its digital presence with substantial growth in online accounts for paperless transactions in mutual funds, fixed deposits, and public issues. ~95% of the transactions across all products are done digitally.

• To help investors in remote areas we initiated Digi-link (for existing MF Investors) and Client Investment link (for New Investors).

*Assets under Management (AUM) comprises distribution assets and advisory assets, as applicable

Bondskart

– JM Financials Online Bond Platform, offering a portfolio of corporate bonds ranging from AAA to A credit rating continued to strengthen its reach during the year. The platform provides convenient buying and selling of securities to investors.

Asset Management

JM Financial Mutual Funds closing Assets under Management

(" AUM") has more than doubled this financial year. We started

FY24 at an AUM of Rs 2,962 crore as of March 31, 2023 and ended the year with Rs 6,189 crore as of March 31, 2024. The Average AUM has increased from Rs 3,079 crore for FY 2022-23 to Rs 4,352 crore for FY 2023-24 demonstrating an increase of around 41% YoY. The Equity AUM of JM Financial Mutual Fund grew almost four times to Rs 3,857 crore as of March 31, 2024. Furthermore, we witnessed a folio count increase from 1.45 lakhs as on March 31, 2023 to 2.63 lakhs as on March 31, 2024, having YoY growth of 82%. Another retail aspect which has seen growth is Systematic Investment Plans ("SIPs"); with a folio count surge of 4.5x to 65,000+ (Nos) in FY24 as compared to FY23 and SIP value has gone up by 8x in the financial year. We empanelled more than 3,400 new Distributors in FY24. Our initiatives around digital and Institutional distribution tie ups i.e. Bank and National Distributors ("NDs") have started gaining traction and now with a presence over 50+ Digital Partners and few NDs & Banks onboarding us, we expect to see this segment growing in future. Growth of various business vectors can be attributed to the consistent performance of all existing schemes and increasing partner engagement. We continue to firmly believe in existing scheme ramp up and has not launched a slew of NFOs. The social media presence of the AMC is witnessing steady engagement and seems to be aiding in building brand traction. The drive for quality content across all formats fosters not only increased views but also results in partner engagement. We are now operational in central India, with the opening of a branch located in the city of Indore, Madhya Pradesh. As on March 31, 2024 we now operate out of 15 locations pan India. This strategic move aims to provide convenient and local access for our Mutual Fund Distributors ("MFDs") and partners, enabling them to effectively offer JM Financial Mutual Funds products to their clients with local branch support. Over the past year, we have increased our presence across various media platforms to raise awareness of our brand. On the Alternative Asset Management platform, we conceptualized and launched the JM Financial Credit Opportunities Fund - I in June, 2023 with initial commitment primarily from large family offices and ultra high net worth individuals. In terms of deal closures, we have closed five deals on the platform (across logistics, conglomerates, consumer/ aviation, and auto ancillary sectors) and deployed over Rs 950 crore across the Fund and ancillary investments by/ syndication to investors. We expect to substantially scale the numbers across both the fund management and co-participations over the next several years.

Launched in 2020, the JM Financial Yield Enhancer (Distressed Opportunities) Fund – I currently has made two full and one partial exit. The platform is evaluating further credit strategies to widen its horizons and provide investors with a comprehensive suite of products to meet investment requirements.

Our Platform AWS business is subject to threats which include:

• macro-economic factors such as abnormal monsoon, geopolitical tensions, global economic threats impacting the business, economic situation, liquidity situation in the market; and • business specific threats such as increased competition affecting market share and fees, higher commissions to distributors, regulatory changes, threats from exchange traded funds, and passive funds and redemption pressures.

Financial performance of Platform AWS Business

(Rs. in Crore)

Particulars	FY 2023-24	FY 2022-23
Gross Income	978.51	560.88
Profit before tax (adjusted for investments in digital and asset management business)	217.93	86.58
Profit before tax	117.00	22.89
Profit after tax before non-controlling interest	78.36	12.73
Profit after tax after non-controlling interest	90.16	25.42
Segment Capital Employed	949.11	685.48

ANALYSIS OF FINANCIAL PERFORMANCE

Consolidated Financial Performance

During the current year, the Company reported its highest ever annual consolidated gross operating income. The consolidated gross income of the Company stood at Rs 4,832.16 crore as against Rs 3,343.07 crore in the previous year, registering an increase of 45%. Profit before depreciation and amortisation expense, finance cost and tax expense during the year stood at Rs 2,814.78 crore as against Rs 2,172.99 crore in the previous year. Pre-Provision Operating Profit ("PPoP") during the year stood at Rs 930.60 crore as against Rs 1,048.17 crore in the previous year, thereby registering a decline of 11%. The Profit before and after tax stood at Rs 353.37 crore and Rs 409.84 crore respectively as against the Rs 952.61 crore and Rs 597.29 crore in the previous year. The profit in the current year declined by 31% to Rs 409.84 crore from Rs 597.29 crore in the previous year primarily due to significant decline in the performance of Alternative and distressed credit segment and Mortgage lending segment during the year.

During the current year, adjusted PPoP* grew by 48% to Rs 1,915.60 crore in FY24 from Rs 1,294.43 crore in the previous year. Adjusted profit before tax* stood at Rs 1,338.37 crore in FY24 as against Rs 1,198.87 crore in FY23, thereby registering

an increase of 12% YoY. Adjusted profit after tax* stood at Rs 983.89 crore in FY24 as against Rs 704.69 crore in FY23, registering an increase of 40% YoY.

985 *During FY24, the company has considered the impact of Rs 246.26 crore) on account of additional crore (Previous year: H provision (including exceptional loss of Rs 846.86 crore) considered in Security Receipts ("SRs") on a few accounts and loans in our distressed credit business. Adjusted net profit after tax and after non-controlling interest is prior to adjusting the loss of Rs 574.05 crore (Previous year: Rs 107.40 crore).

The following table describes consolidated income during the year:

(Rs. in Crore)

	For the Year ended
Particulars	March 31, 2024	March 31, 2023
Interest Income	2,555.59	2,091.87
Fees and Commission Income	1,097.78	657.48
Brokerage Income	491.86	314.03
Net gain on fair value changes	559.55	183.42
Net gain on derecognition of financial instruments carried at amortised cost	1.77	0.10
Other Operating Income	54.17	24.60
Other Income	71.44	71.57
TOTAL	4,832.16	3,343.07

Interest Income

Interest Income from lending activities continued to be a major contributor to the gross revenue at Rs 2,555.59 crore as against Rs 2,091.87 crore during the previous year, constituting around 52.88% of the total revenue. Increase in interest income is primarily on account of increase in average loan book and average yields during the year.

Fees and Commission Income

Fees and commission earned during the year were Rs 1,097.78 crore as against Rs 657.48 crore during the previous year, constituting 22.72% of the total revenue. The increase is primarily on account of increase in fee income on account of increase in deal closures in investment banking and advisory and distribution services under Platform AWS segment during the year. Fee income has also increased on account of increase in management fees under Alternative and distressed credit segment.

Brokerage Income

Brokerage income earned during the year was Rs 491.86 crore as against Rs 314.03 crore during the previous year, constituting around 10.18% of the total revenue. The increase in brokerage income is on account of increase in average daily turnover in Cash segment and block deals during the year.

Net gain on fair value changes

Net gain on fair value changes stood at Rs 559.55 crore as against Rs 183.42 crore during the previous year, constituting around 11.58% of the total revenue. This primarily includes realised gains on de-recognition as well as mark-to-market changes on account of fair value of investments in equity shares, bonds, mutual funds, security receipts and financial assets under distressed credit business during the year. The increase is primarily on account of increase in fair value gains on investment in equity instruments during the year.

Net gain on de-recognition of financial instruments carried at amortised cost

Net gain on de-recognition of financial assets carried at amortised cost were Rs 1.77 crore as against Rs 0.10 crore during the previous year. This is primarily due to profit on de-recognition of a loan or a borrowing, which were carried at amortised cost during the year.

Other operating income and other income comprising revenue from treasury operations and other activities were Rs 125.61 crore as against Rs 96.17 crore during the previous year, constituting around 2.60% of the total revenue.

The following table describes consolidated expenditure during the year:

(Rs. in Crore)

	For the Year ended
Particulars	March 31, 2024	March 31, 2023
Finance costs	1,561.52	1,178.51
Fees and commission expense	294.24	214.60
Impairment on Financial Instruments	577.23	95.56
Employee Benefits Expense	795.44	622.34
Depreciation and amortisation expense	53.03	41.87
Other expenses	350.47	237.58
TOTAL	3,631.93	2,390.46

Finance Cost

The increase in finance cost from Rs 1,178.51 crore in the previous year to Rs 1,561.52 crore in the current year is on account of increase in average borrowings and borrowing rate during the year.

Fees and commission expense

It comprises of sub-brokerage, fees and commission relating to secondary market and distribution business. The increase in fees and commission expense from Rs 214.60 crore in the previous year to Rs 294.24 crore in the current year is primarily on account of corresponding increase in brokerage and fee income in the current year.

Impairment on Financial Instruments

Impairment on Financial Instruments stood at Rs 577.23 crore as against Rs 95.56 crore during the previous year. This is on account of provisioning based on expected credit loss model on the loans, investments, trade receivables and other financial assets carried at amortised cost. The increase is primarily on account of increase in write-offs of loans and higher provisioning because of increase in Stage 3 assets as compared to previous year.

Employee Benefits Expense

The increase in employee cost by about 28% is mainly on account of increase in the head count, fixed compensation and performance-based variable compensation of the employees in the current year as compared to previous year.

Depreciation and Amortisation Expenses

The increase in depreciation and amortisation expenses by about 27% is on account of higher capital expenditure.

Other Expenses

It comprises administrative and establishment costs. These expenses increased by about 48% is primarily attributable to increase in legal and professional fees, resolution expenses, information technology expenses, provision on non-financial assets and travelling and conveyance expenses.

The break-up on a consolidated basis under key segments is as under:

(Rs. in Crore)

	FY 2023-24		FY 2022-23 (Restated)*
Particulars	Amount	% to total	Amount	% to total
Segment Revenue
Investment Bank (IB)	1,977.98	40.93%	1,299.11	38.86%
Mortgage Lending	1,530.58	31.67%	1,318.49	39.44%
Alternative & Distressed Credit	326.17	6.75%	137.13	4.10%
Asset Management,	978.51	20.25%	560.88	16.78%
Wealth Management & Securities Business (Platform AWS)
Others	204.10	4.23%	180.30	5.39%
Total Segmental revenue	5,017.34	103.83%	3,495.91	104.57%
Less:- Inter segmental revenue	(185.18)	(3.83%)	(152.84)	(4.57%)
Total revenue	4,832.16	100.00%	3,343.07	100.00%

( Rs. in Crore)

	FY 2023-24		FY 2022-23 (Restated)*
Particulars	Amount	% to total	Amount	% to total
Segment Results (Profit Before Tax)
Investment Bank (IB)	911.27	257.88%	486.47	51.07%
Mortgage Lending	88.11	24.93%	467.72	49.10%
Alternative & Distressed Credit**	79.60	22.53%	74.24	7.79%
Asset Management, Wealth Management & Securities Business (Platform AWS)	117.00	33.11%	22.89	2.40%
Others	142.39	40.29%	147.55	15.49%
Adjusted Profit before tax**	1,338.37	378.74%	1,198.87	125.85%
Additional provision on Security	(985.00)	(278.74%)	(246.26)	(25.85%)
Receipts**
Total Results (Profit before tax)	353.37	100.00%	952.61	100.00%
Segment profit after tax (after non- controlling interest)
Investment Bank (IB)	705.53	172.15%	370.69	62.06%
Mortgage Lending	30.93	7.55%	161.49	27.04%
Alternative & Distressed Credit**	46.98	11.47%	34.01	5.69%
Asset Management,	90.16	22.00%	25.42	4.26%
Wealth Management & Securities Business (Platform AWS)
Others	110.29	26.90%	113.08	18.93%
Adjusted Segment profit after tax (after non-controlling interest)**	983.89	240.07%	704.69	117.98%
Additional provision on Security Receipts*	(574.05)	(140.07%)	(107.40)	(17.98%)
Total Segment profit after tax (after non- controlling interest)	409.84	100.00%	597.29	100.00%

** before considering the impact of Rs 985 crore (FY23: Rs 246.26 crore) on account of additional provision (including exceptional loss of Rs 846.86 crore) considered in Security Receipts ("SRs") on a few accounts and loans in FY24. Net Profit after tax and after non-controlling interest is prior to adjusting a loss of Rs 574.05 crore (FY23: Rs 107.40 crore).

(Rs. in Crore)

Segment Capital Employed	March 31, 2024	% to total	March 31, 2023 (Restated)*	% to total
Investment Bank (IB)	3,092.32	28.10%	2,729.66	24.33%
Mortgage Lending	4,610.76	41.90%	4,348.66	38.77%
Alternative &	720.22	6.55%	1,812.43	16.16%
Distressed Credit

( Rs. in Crore)

Segment Capital Employed	March 31, 2024	% to total	March 31, 2023 (Restated)*	% to total
Asset Management,	949.11	8.63%	685.48	6.11%
Wealth Management & Securities Business (Platform AWS)
Others	1,631.18	14.82%	1,641.18	14.63%
Total Capital Employed	11,003.59	100.00%	11,217.41	100.00%

*Pursuant to the NCLT order approving the Scheme of Arrangement on April 20, 2023 with the appointed date being April 1, 2023, the Private Wealth and PMS divisions have been demerged from JM Financial Services Limited (the "JMFSL") and have become part of the Company and are classified under the Investment Bank segment from the Platform AWS segment. Consequent to the above, the consolidated segment-wise details for the year ended March 31, 2023 have been restated from the published details to give the impact of the Scheme.

Investment Bank (IB):

The Investment bank business registered revenue of Rs 1,977.98 crore as against Rs 1,299.11 crore in the previous year. During the year, the percentage of segment results to segment capital employed was 29.47% as against 17.82% in the previous year. This segment contributed 172.15% to our consolidated profit after tax.

Mortgage Lending:

This segment registered revenue of Rs 1,530.58 crore as against Rs 1,318.49 crore in the previous year. Percentage of segment results to segment capital employed in this segment was 1.91% as against 10.76% in the previous year. This segment contributed 7.55% to our consolidated profit after tax.

Alternative & Distressed Credit:

This segment registered revenue of Rs 326.17 crore as against Rs 137.13 crore in the previous year. Percentage of segment results to segment capital employed in this segment was (125.71%) as against (9.49%) in the previous year. The contribution of this segment was (128.60%) to our consolidated profit after tax. During FY24, this segment has accounted for an additional provision (including exceptional loss) in Security Receipts ("SRs") on a few accounts and loans to the tune of Rs 985 crore (FY23: Rs 246.26 crore). Net Profit of the segment after tax and after non-controlling interest has been lower by H 574.05 crore (FY23: Rs 107.40 crore).

Asset Management, Wealth Management & Securities Business (Platform AWS):

This segment registered revenue of Rs 978.51 crore as against Rs 560.88 crore in the previous year. During the year, the percentage of segment results to segment capital employed in the segment was 12.33% as against 3.34% in the previous year. This segment contributed 22% to our consolidated profit after tax.

Standalone Financial Performance

On a standalone basis, gross income was higher at Rs 820.41 crore for the year ended March 31, 2024 as against Rs 555.46 crore in the previous year, registering an increase of 48%. The profit before tax was higher at Rs 410.20 crore as against Rs 296.67 crore in the previous year, registering an increase of 38%, and the profit after tax was higher at Rs 309.60 crore as against Rs 256.45 crore in the previous year, registering an increase of 21%. The profit in the current year increased primarily on account of increase in fee income from Rs 259.97 crore in the previous year to Rs 508.24 crore in the current year due to rise in deal closures in investment banking. The increase was partially off-set by decline in dividend income during the year and impairment provision on investment in JMFARC amounting to Rs 88.38 crore.

Note: Pursuant to the NCLT order approving the Scheme of Arrangement on April 20, 2023 with the appointed date being April 1, 2023, the Private Wealth and PMS divisions have been demerged from JM Financial Services Limited (the "JMFSL") and have become part of the Company. Consequent to the above, the standalone financial statements for the year ended March 31, 2023 have been restated from the published financial statements to give the impact of the Scheme.

Key Financial Ratios:

( Rs. in Crore)

	Consolidated		Standalone
Ratios	FY 2023-24	FY 2022-23	FY 2023-24	FY 2022-23 (Restated)*
Interest Coverage Ratio	1.42	1.72	74.68	44.84
Current Ratio	2.13	2.00	11.83	18.37
Debt Equity Ratio	1.48	1.45	-	-
Net Debt Equity Ratio	1.04	1.25	(0.28)	(0.19)
Cost to Net Total Income Ratio	40.28%	46.25%	33.02%	39.59%
Net Profit Margin	0.64%	21.21%	37.74%	46.17%
Return on Equity (ROE)	4.89%	7.56%	7.74%	6.65%
Return on Assets (ROA)	0.10%	2.69%	7.16%	6.20%

Ratios where there has been significant change (i.e. change of 25% or more as compared to the immediately previous financial year) from FY 2022-23 to FY 2023-24:

Net profit margin:

On a consolidated basis, the Net profit margin for the year ended March 31, 2024 was 0.64% as against 21.21% for the year ended March 31, 2023. The decline is primarily on account of decline in profitability during the year due to significant decline in the performance of Alternative and distressed credit segment and Mortgage lending segment during the year. The profit after tax pre non-controlling interests stood at Rs 30.75 crore as against Rs 708.99 crore in the previous year.

ROE and ROA:

On a consolidated basis, the ROE and ROA for the year ended March 31, 2024 were 4.89% and 0.10% as against 7.56% and 2.69% for the year ended March 31, 2023. The decline is primarily on account of decline in profitability during the year due to significant decline in the performance of Alternative and distressed credit segment and Mortgage lending segment during the year. The profit after tax pre and post non-controlling interests stood at Rs 30.75 crore and Rs 409.84 crore respectively as against Rs 708.99 crore and Rs 597.29 crore respectively in the previous year.

Net Debt Equity Ratio:

On a standalone basis, the net debt equity ratio as at March 31, 2024 stood at (0.28) as against (0.19) as at March 31, 2023. The decrease is on account of increase in cash and cash equivalents during the year. (Refer Note 39(a) of the Notes to the Standalone Financial Statements)

Interest Coverage Ratio:

On a standalone basis, the interest coverage ratio for the year ended March 31, 2024 was 74.68 as against 44.84 for the year ended March 31, 2023. The increase is on account of increase in profitability during the year. The standalone profit after tax stood at Rs 309.60 crore as against Rs 256.45 crore in the previous year.

Current Ratio:

On a standalone basis, the Current Ratio as at March 31, 2024 was 11.83 as against 18.37 as at March 31, 2023. The decrease in ratio is primarily on account of increase in current liabilities outstanding as at March 31, 2024.

*Pursuant to the NCLT order approving the Scheme of Arrangement on April 20, 2023 with the appointed date being April 1, 2023, the Private Wealth and PMS divisions have been demerged from JM Financial Services Limited (the "JMFSL") and have become part of the Company. Consequent to the above, the standalone financial statements for the year ended March 31, 2023 have been restated from the published financial statements to give the impact of the Scheme.

RESOURCE MOBILISATION

Reserve Bank of India (the "RBI") had increased the repo rate last in February 2023, since then they have maintained the rates throughout the financial year ending March 31, 2024. On the contrary, there were expectations that RBI and central banks around the world would look at cutting the rates, however the inflation remained high for major part of the year, denying any possibility of the rate cut. Inflation started lowering in the latter part of the year but did not fall to a level where rate cut was warranted. Further the domestic economy continued its growth trajectory which was supported by economies in other part of the world showing signs of either growth or not moving towards recession. Nonetheless the pressure on economies due to geo-political conflicts kept looming the markets and elongating the economic revival and uncertainty. Systemic liquidity in the domestic banking system remained positive in the first half of the year, which turned negative in the latter part which as usual intensified during last quarter of the year. Nonetheless RBI throughout the year played an active part in maintaining a fine balance with regards to the required liquidity. Domestic banks witnessed increased demand for credit but was not adequately supported by growth in deposits thus multiple banks i.e. private and public approached the market by issuing Certificate of deposits

(" CD") thereby capturing the Banking, Financial Services and Insurance ("BFSI") pie in investors book. This led to pressure on fund raising for NBFC and allied business for whom funds is a primary raw material for growth. NBFCs continued to raise from traditional as well as new sources and supported their respective growth aspirations and in turn trying to fulfil the demand of the end consumers. As a vigilant regulator, RBI has been extremely observant, cautious and proactively taken concerning issues in their hands such as exponential growth in unsecured loans or be applying higher weights for loans to NBFCs or applying any other necessary controls throughout the year.

Below table portrays the rate hike movements during the FY23-24:

Period / Instruments	March 2023	March 2024	Change in BPS
Repo Rate	6.50%	6.50%	No change
Weighted Average Call Rate (WACR)	6.52%	6.50%	- 2 bps
Certificate of Deposits – CD (3 Months) (AAA)	7.00%	7.77%	77 bps
Commercial Paper – CP (3 Months) (AAA)	7.35%	8.50%	115 bps
Government Security (1 Year)	7.15%	7.06%	-9 bps#
Bonds – AAA (1 Year)	7.75%	8.00%	25 bps
SBI - 1 year MCLR	8.50%	8.65%	15 bps

Source: www.rbi.org.in, www.sebi.gov.in, www.fbil.com, JM Financial Analysis and others

#impact due to announcement of Indian Government Securities to be included in JP Morgan Bond Index followed by other bond indexes

The Group continued its focus on ALM and maintaining appropriate liquidity on its balance sheet. The Consolidated debt outstanding at the financial year ended March 31, 2024 stood at Rs 16,145 crore versus Rs 15,875 crore a year earlier (an increase of approximately Rs 270 crore). During the year, the Group continued the efforts of diversifying the sources and maturities for the borrowing profile at the consolidated level. The long-term borrowing stood at Rs 13,837 crore versus Rs 13,092 crore a year earlier. The Groups long term: short term ratio stood at 86:14. The Groups short-term borrowing as at March 31, 2024 stood at Rs 2,308 crore compared to Rs 2,783 crore as at the previous year end. As at March 31, 2024, the liquidity in the Group stood at Rs 4,769 crore. During the financial year ended March 31, 2024, the Group raised Rs 3,585 crore as long term borrowings from banks, corporates and mutual funds. Respective companies in the Group have focused on maintaining righteous ALM, elongating maturities, optimising interest cost and maintaining necessary liquidity buffers. The Group continues to explore variety of new avenues of financing to further diversify its borrowing profile.

CREDIT RATING

• The credit rating agencies have continued with their long term rating and outlook on all companies within the group as per the table below.

• The credit rating agencies have continued with their highest short-term rating of A1+ on all companies within the Group.

Company	ICRA	CRISIL	India Ratings
JM Financial Limited	AA / Stable	AA / Stable	-
JM Financial Products Limited	AA / Stable	AA / Stable	-
JM Financial Credit Solutions Limited	AA / Stable	-	AA / Stable
JM Financial Home Loans Limited	AA / Stable	AA / Stable	-
JM Financial Services Limited	AA / Stable	-	-
JM Financial Institutional Securities Limited	AA / Stable	-	-
JM Financial Properties and Holdings Limited	AA / Stable	-	-
JM Financial Asset Reconstruction Company Limited	AA- / Stable	AA- / Stable	-

RISK MANAGEMENT

Risk is an integral part of the business and almost every business decision requires the management to balance risk and reward. The ability to manage risks across geographies, products, asset classes, customer segments and functional departments is of paramount importance for the hindrance free growth of every organisation.

Due to increasing globalisation, integration of world markets, newer and more complex products and transactions and an increasingly stringent regulatory framework, the financial services industry is subject to continuously evolving legislative and regulatory environment.

Presence of JM Financial Group in several businesses, asset classes and geographies, exposes it to various risks. The risk also emanates from various businesses of operating entities within the Group.

At JM Financial, risk management forms an integral part of the business operations and monitoring activities. The risk is managed through risk management framework approved by the Board of Directors, encompassing independent identification, measurement and management of risk across various businesses of the Group. The Company has formulated comprehensive risk management policies and processes to identify, evaluate, manage and mitigate the risks that are encountered during conduct of business activities in an effective manner. We have established a system of risk management and internal controls consisting of an organizational risk management framework, policies, risk management system tools and procedures that we consider to be appropriate for our business operations.

The Group is exposed to a variety of risks including liquidity risk, interest rate risk, market risk, credit risk, operational risk, regulatory and compliance risk, reputational risk, business continuity risk, legal risk, competition risk, cyber risk, Environment, Social and Governance ("ESG") risks, sustainability risk, succession planning risk, crisis management risk, money laundering risk, data protection risk.

Risk exposure is monitored and controlled through a variety of separate but complementary financial, credit, operational, compliance and legal reporting systems. A team of experienced and competent professionals, at business level as well as group level, identify and monitor these risks on an on-going basis and evolve processes/systems to monitor and control the same to keep the risks to minimum levels. On-going monitoring by our officials helps in identifying the risks at an early stage. There is a continuous focus on the maker-checker processes. Detailed regulatory as well as regular inspections also help test our processes and compliances.

The Risk Management Committee of the Board was formulated in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board of Directors at its meeting held on February 12, 2024 had amended the nomenclature of the Risk Management Committee to Risk Management and Environmental Social and Governance Committee (the "Committee") and had assigned the additional role and responsibilities pertaining to ESG matters. Further, the Committee has adopted the Risk Management Policy which ensures that risks is overseen and monitored at all the levels. The Committee oversees the risk management policy including functions relating to cyber security, identify and assess the risks, decide the measures to mitigate the risks. The Board reviews the effectiveness of risk management systems in place and ensures that the risks are effectively managed. The Audit Committee has additional oversight in the area of financial risks and controls.

A risk event update report is periodically placed before the Committee which includes, inter alia, the risk identification, risk classification, assessment of impact, risk mitigation/ remedial action, risk status amongst others. The Committee reviews these reports along with the course of action taken or to be taken to manage and mitigate the risks. Additionally, independent Internal Audit firms have been appointed to review and report on the business processes and policies for all operating companies in the Group. The report of internal auditors on set processes is reviewed and discussed by the Audit Committee of the Company and respective operating companies. Apart from the above, the Committee also overview the Business Continuity Plan of the Company.

Various risks associated with the businesses of JM Financial Group are discussed in detail below:

Key Risk	Description/Impact of Risk	Risk Mitigation
Credit Risk	The risk associated with the failure of the borrower to meet financial obligations to the lender in accordance with the agreed terms is known as Credit Risk. If any of our borrowers fail to discharge their obligations to us, it would result in financial loss.	A comprehensive review exercise is conducted for credit approvals, ensuring proper documentation, carrying out extensive credit appraisal, conducting periodic reviews etc., is done as a part of credit risk mitigation. Exposure limits are sanctioned to counterparties based on their credit worthiness.
	We are in the business of lending against mortgages and providing securities backed loans. Any material unexpected credit losses or failure of the borrowers to repay debt on time, may have an adverse and negative effect on our business.	Credit risk monitoring mechanism ensures that exposure to clients is diversified and remains within stipulated limits.
		Careful selection of quality and quantum of collateral is key for a client limit. Effective credit risk management has enabled us to steer through the current environmental stress conditions without any major impact.
		Various norms for customer identification and evaluation procedure for prospective credit proposals have been stipulated as a part of risk mitigation. Regular portfolio risk analysis is done on various financial and policy parameters, for making required changes in the credit policy as a proactive approach to risk management.

 

Market Risk	Market risk is the risk arising from the adverse movements in market price of various securities, which may impact value of portfolio of investment in securities. The risk may pertain to interest bearing securities (interest rate risk), equities (equity price risk) and foreign exchange rate risk (currency risk).	In order to monitor market risk, a comprehensive set of reports and limits has been put in place that track positions and various risk parameters. The risk framework ensures that the risks are monitored and necessary timely action is taken for every single instance of breach, in case they occur. Our portfolios and collaterals/ securities are continuously monitored and also the usage of derivative instruments which minimises the
	As a part of its operations, the Group makes investments in securities and other financial instruments from time to time.
	We are exposed to potential changes in the value of financial instruments held by us caused by above factors. Any decline in the price of investments in quoted securities may affect our financial performance and position.

 

Liquidity Risk	Liquidity risk is the risk arising due to unavailability of adequate funds at appropriate prices or tenure. It also refers to the risk that arises from the difficulty of selling an asset without a high impact cost.	We maintain sufficient liquidity cushion to meet our borrowing obligation and borrower side funding requirement. We have a strong financial position and all our businesses are adequately capitalized, have good credit rating and appropriate credit lines available to address liquidity risks. We also maintain a part of our capital in liquid assets to manage any sudden liquidity needs. Additionally, the asset liability mismatch and collateral margins are regularly assessed. Liquidity requirements are closely monitored and necessary care is taken to maintain sufficient liquidity cushion for maturing liabilities and for any unforeseen requirements. We also ensure diversification in source of borrowing to reduce dependence on a single source. We also pro-actively modify our liabilities profile in sync with the changing assets profile to ensure that we do not carry any material asset liability mismatch.
	Our liquidity is mainly dependent upon our timely access to, and costs associated with raising funds. Any lack of liquidity in the market could adversely affect our ability to access funds at competitive rates. Our liquidity shall be affected due to severe liquidity crunch in the market or due to market disruptions where we cannot access public funds. Our clients may, due to certain circumstances not honour their commitments which would indirectly lead to our inability to meet the obligations.

 

	Operational risks can result from a variety of factors, including failure to obtain proper internal authorizations, improperly documented transactions, failure of operational and information security procedures, computer systems, software or equipment, fraud, inadequate training and employee errors.	Well defined policies, operational processes and systems have been devised for our operations. Regular audits are done by internal auditors to monitor the adherence of policies and processes. We also get our systems audited periodically by competent external audit firms.
Operational Risk	Our businesses are dependent on people and processes. Shortcomings or failure in internal processes or systems may have material adverse impact on the financial position as well as affect its operation.	A maker/checker mechanism has been put in place to ensure compliance with laid down systems and procedures in all areas of functioning.
		Also, the key management team consists of professionals with high level of commitment and the team is well versed in the key issues relevant to the holding company structure. They have a good understanding of all the groups businesses helping the group companies to grow in a compliant manner.

 

Reputation Risk	Reputation Risk is the current or prospective risk to business, earnings and capital arising from adverse perception of the organisation on the part of customers, counterparties, shareholders, investors or regulators.	We conduct our business with diligence keeping in mind the stakeholders and their needs.
	Reputation risk is a very high risk and can cause long term and sometime irreparable loss of business/ revenue.	Adequate training is provided to employees to conduct their activities with utmost care and diligence keeping in mind the reputation and status enjoyed by the Company.

 

Regulatory and Compliance Risk	Most of our businesses as well as the Company itself operate in strongly regulated business segments.	We have a team of experienced professionals which takes care of compliance with applicable laws, rules, regulations and guidelines affecting our businesses.
	The risk arising out of a change in laws and regulation governing our business. It could also arise on account of inadequate addressal of regulatory requirements or differences in interpretation of regulations vis-?-vis the regulators. This risk is heightened in setting up global offices as familiarisation with global regulations and practices can take time as well as lead to risk of inadequate understanding.	We also take external advice and appoint well qualified professionals in respective functions in various offices. All the new guidelines, circulars, notifications are complied with. Formulation of the policies as well as its implementation is taken due care of.
	In recent times, these risks have spread to tax laws and unexpected demands being raised by various tax authorities.	Internal audit is carried out by external professional firms to monitor compliance with best practices, approved policies and applicable regulations.
	New laws or regulations or changes in the enforcement of existing laws and regulations may adversely affect the business/ revenue/profits.	Our business team is strongly supported by our Corporate Functions team to quickly calibrate our actions in event of change in regulatory environment.
	Non-compliance with regulations may invite strictures, penalties and even punitive action from the Regulators.

 

Competition Risk	The industry in which the Company operates is growing at a rapid pace and is exposed to tremendous competition at the national as well as international level. Strong growth prospects combined with liberalization of financial services sector have prompted the entry of newer foreign and domestic financial services companies.	Diversified and innovative product and services are offered to keep the customers and other stakeholders intact as well as continuous research and development helps in mitigating the competition risk.
	We operate in a highly competitive market and face significant competition from other players in the financial services industry and from companies seeking to attract our customers financial assets. Entry of new players has increased the competition faced by us. It may also lead to attrition of our key personnel.	Fair and transparent practices help the entity gain competitive advantage over other entities
		.Our human resource policies and a healthy positive work environment help us attract and retain best talent on a continuous basis.

 

Business Continuity Risk

In the event of disruption in the conduct of business due to incidents like fire, natural calamity, breakdown of infrastructure, acts of terrorism etc., we are exposed to the risk of loss of data, clients and/or business that rcan adversely affect our financial results.

We have in place Business Continuity Plan ("BCP") to mitigate the impact of any such exigencies. We continuously test check the processes laid out under the BCP and review the same. The records with respect to confidential data are preserved and are secured.

 

Cyber Risk

Cyber risks include risks which could emanate from the failure or compromise of cyber resources / information technology. Cyber threats include phishing attacks, malware attacks, ransomware attacks etc., and can result in to loss of data, control over information systems and could result into adverse impact on the operations.

We have adopted measures to mitigate the cyber risks including through appropriate firewalls, providing regular advisories, providing training to users, review of the information technology assets.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

We have adequate internal control systems to commensurate with the nature of business and size of operations for ensuring:

• orderly and efficient conduct of business;

• adherence to the Groups policies and procedures;

• safeguarding of all our assets against loss from unauthorised use or disposal;

• prevention and detection of frauds and errors;

• accuracy and completeness of accounting records;

• timely preparation of reliable financial information; and

• compliance with applicable laws and regulations.

Policies, guidelines and procedures are in place to ensure that all transactions are authorised, recorded and reported correctly as well as provide for adequate checks and balances. Adherence to these processes is ensured through frequent internal audits. The internal control system is supplemented by an extensive program of internal audit and reviews by the team of senior management. We have appointed independent internal audit firms for the Company and all our operating subsidiary companies to assess and improve the effectiveness of risk management, control, operations and processes. To ensure independence, the internal audit function has a reporting line to the Audit Committee of the Board.

Internal audit

Internal Auditors follow Standards on Internal Audit along with guidelines issued by the regulators from time to time. Internal

Audit function operates under the supervision of the Audit Committee of the Board. It provides an independent view to the Board of Directors and Senior Management on the quality and efficacy of the internal controls, risk management systems, governance systems and processes in place on a periodic basis. The Group also appoints external professionals who provide an independent view and assurance by assessing the adequacy and effectiveness of internal controls, compliance to internal and external guidelines, and risk management practices across the group companies. Internal audits are conducted periodically to ensure that the assigned responsibilities are carried out effectively. The team of senior management regularly reviews the findings and recommendations of the internal auditors so as to continuously monitor and improve internal controls to match the organisations pace of growth and increasing complexity of operations as well as to meet the changes in statutory and accounting requirements.

The Audit Committee of the Board of the respective companies reviews the performance of the audit and the adequacy of internal control systems and compliance with regulatory guidelines. Significant deviations are brought to the notice of the Audit Committee of the respective companies and corrective measures are recommended for implementation. The Audit Committee provides necessary oversight and directions to the internal audit function and periodically reviews the findings and ensures corrective measures are taken. They also recommend improving the efficacy of the existing internal audit and internal control systems. This system enables us to achieve efficiency and effectiveness of operations, reliability and completeness of financial and management information and compliance with applicable laws and regulations.

CORPORATE SOCIAL RESPONSIBILITY (CSR) AND PHILANTHROPY

For the JM Financial Group, FY 2023-24 marked a watershed moment in its journey of 50 years since inception. We attained and consolidated scale in healthcare, education, sports, agriculture & water conservation, and women empowerment. Along with this outreach, we continued to catalyze grassroots impact through strategic interventions under Integrated Rural Transformation Programme in Jamui, Bihar and Palghar, Maharashtra; and through extensive, region-agnostic interventions like JM Financial Shiksha Samarthan. This was achievable through JM Financial Foundation – the CSR (Corporate Social Responsibility) arm of the JM Financial Group of Companies, set up in 2001. The management of our CSR interventions is undertaken by JM Financial Foundation (JMFF), per the CSR Policy adopted by JM Financial Limited and all other relevant entities within the JM Financial Group.

In compliance with the relevant provisions of the Companies Act, 2013 and subsequent amendments, the CSR Committees of the JM Financial Group entities have recommended a contribution of a total sum of Rs 24.17 Crore in the Financial Year 2023-24. Of this, JM Financial Limited has approved and contributed Rs 3.69 Crore.

This allocation has been fully utilized towards the projects - Shri Vardhman Nidan Seva, Bihar and Centre for Financial Research (CFR), Indian Institute of Management, Udaipur (IIMU). The subsequent sections delineate CSR inputs and advancements in the interventions pursued, addressing each focus area undertaken by the Company, as well as those supported by other Group entities, under their respective Annual Action Plans.

Shri Vardhman Nidan Seva

Shri Vardhman Nidan Seva, implemented by two Mobile Health Units (MHUs), facilitates healthcare for rural and tribal communities residing in 30 remote villages and 55 hamlets of Khaira, and Sikandra blocks in Jamui district, Bihar. Each village receives essential preventive and curative healthcare services, mitigating hindrances posed by socio-economic deprivation, lack of timely healthcare access, and inadequacies in the available healthcare infrastructure. These services are made possible by a team of two doctors, two nurses, two health workers, two drivers, one MIS assistant, and three healthcare professionals, all supported at the grassroots by 28 village-based Community Mobilisers. Following a premeditated weekly schedule and equipped with primary diagnostic tests, the MHUs provide daily consultations and curative treatment for OPD patients, while also conducting monthly health education sessions. During the year, the two MHUs have together consulted 27,819 OPDs (cumulative), addressing primary health concerns largely related to musculoskeletal, respiratory, skin and lymphatic, gastrointestinal, cardiovascular and obstetric and gynecological ailments, among others.

To foster improved health-seeking behaviours, JMFF conducts health education sessions at the village level, in the last week of each month. These sessions typically host 20-30 participants from each village, educating them with theoretical and IEC (Information Education Communication)- based instruction on various health topics such as anaemia, tuberculosis, menstrual health, hypertension, Ante-Natal Care (ANC), and newborn care.

Over the past two years, Shri Vardhman Nidan Seva has placed significant focus on addressing health issues that frequently escape attention due to insufficient awareness, lack of specialized care, and societal stigma. These issues, especially for girls and women, often remain untreated because they are not reported or diagnosed. Symptoms of unfamiliar illnesses are met with societal judgment making the challenge more daunting. Through the interventions outlined below, the project aims to enhance awareness, offer specialized care, and indirectly challenge the stigma associated with these health issues:

1) Maternal and child healthcare: The project supported 626 expecting mothers with – pregnancy testing, monthly ANC check-ups, counselling on risk-symptoms in pregnancy, if any; and group awareness sessions. Pregnant women registered under this initiative are also provided monthly nutrition support through Poshan kits comprising a balanced mix of locally-sourced 3kg sattu (roasted gram-flour) or roasted groundnut (alternate months), 1kg moong (green gram) and 1kg soybean. Along with this, we also provide them with monthly Iron Folic Acid (IFA) and calcium tablets.in June 2023, the project supported her with monthly Poshan kits and ANC check-ups. In the last week of September 2023, Phuliya birthed triplets who were completely undernourished and underweight, as per medical standards. Her condition was miserable; her babies were luckily alive. The project intervention stayed committed to her care post-delivery. We extended the support provided by way of Poshan kits, for a total of 13 months. She was also provided with protein powder for adequate lactation, that could help her feed all three children. Our doctor visited her at her home to check the triplets vitals. Now the three children are out of critical condition and have reached the desirable weight as per medical standards. Cackling laughter from the two boys – Shivam and Mintu, and girl – Anisa fill Phuliya Devis homes and our hearts in equal measure.

2) Anaemia and malnutrition: Over the years, working with mothers and pregnant women has lent an important insight into their health, with the appalling haemoglobin levels that stand at an average of 6 / 7 mg/dl. To tackle anaemia early on and arrest the possibility of generations of children undergoing health issues, Shri Vardhman Nidan Seva undertook screening of 573 adolescent girls in our intervention villages, engaging with them through learning and play, providing them with IFA supplements and tracking changes in their haemoglobin levels. A total of 1,010 beneficiaries (anaemic adolescent girls and women) have been supported with different measures such as monthly vitals check-ups, awareness on menstrual health-hygiene-nutrition, Poshan kits and nutrition garden seeds to ensure availability and consumption of nutrient-rich vegetables.

3) Non-communicable diseases (Hypertension, Diabetes): Beginning in April 2023, the project undertook door-to-door screening to identify hypertension patients from among 2,333 individuals in the high-risk age group of individuals over 40 years of age across our intervention villages. Of these, 335 were found to be suffering from hypertension and 72 with diabetes. All patients diagnosed are currently undergoing monthly follow-ups with our doctors, counselling and medication. Communities that the patients belong to reside in villages that are predominantly remote and lack awareness on the long-term impact of such ailments. The Foundations timely intervention has reduced the risk for patients to a large extent for over a year now, with door-to-door screening undertaken by our village level community mobilizers, with the help of digital BP machines, followed by regular medication from our project MHUs.

Maitri Karuna Netralaya

In FY 2022-23, JM Financial Foundation established and operationalized a first-of-its-kind, dedicated eye-hospital, namely – Maitri Karuna Netralaya (MKN), at Gidhaur block of Jamui district, Bihar. Spanning 9,000+ sq. ft., the Netralaya opened its doors to Out-Patient Department (OPD) patients on January 23, 2023. Having performed 3,252 successful surgeries up till March 2024 (3,146 in FY 2023-24), just a year into its opening, the Netralaya, popularly known as "aankh-wala hospital" has become an oasis of hope for those who walk into its doors, with lost hope in a world of darkness. MKN is run by a team of 37 clinical and non-clinical personnel, providing OPD and surgery services from Monday to Saturday – 8:00 am to 5:00 pm.

Patients have been consulted and treated for a range of eye ailments, including cataracts, refraction, retina, pterygium and so on. The Netralayas experience in the past few months has exposed JMFF to complex eye issues such as mature, hyper-mature, brown, posterior polar, and Morgagnian cataracts, among others. The services provided at MKN draw patients from across hundreds of kilometres, who we find queueing up outside the gates as early as 4:00 am.

Patient name: Sh. Ram Sahai* / 72 years / Male / Jamui

Ram Sahai, a 72-year-old farmer from a village in Jamui district, faced numerous challenges due to financial struggles and a childhood accident that had impaired both his hands. Despite physical disabilities, Ram and his wife raised their five children lovingly. However, last year, Ram lost his eyesight, adding to his hardships. With the vision loss, simplest tasks in his life, like walking outside the house, going to the toilet, became insurmountable hurdles for Ram. He informed his sons about his condition, but his pleas fell on deaf ears. His elder son ignored him and avoided taking him to the hospital, saying, "Abhi hamari chhutti nahi hai" ("I cannot ask for a holiday (at work) now.") However, a ray of hope shone strongly when a relative informed Ram Sahai about Maitri Karuna Netralaya. He visited the Netralaya, got diagnosed with cataract and underwent successful surgery which restored his vision to 6/18. With renewed sight, Ram regained confidence and got a new lease of life, which made him want to be a part of this world again. "Jab se operation hua hai, tabse ek baar bhi nahi gire hain" ("Ever since the operation, I havent fallen even once."). He now feels more confident and eager to do things he couldnt do before. He mentioned during his previous visit to the hospital, "Ab hum bahar jaenge, aur logon se bhi milenge" ("Now I will go out and meet people too."). Ram Sahais story is one among thousands of hope returning in the form of regained vision. This story reflects the transformative power of medical intervention, symbolized by the light he found in the darkness of his challenges, in the form of Maitri Karuna Netralaya.

*Name changed to protect identity.

Maitri Karuna Netralayas impact cannot be captured in numbers alone. Behind each of the numbers reported above are eyes that have begun to see light in contrast to an all-consuming darkness and hearts that have once again found hope. The Netralaya, and by extension, JM Financial Foundation, receive countless blessings with each surgery performed. Regaining their vision is an obvious reason for patients to express gratitude. However, to receive love, friendship (Maitri) and compassion (Karuna) from every team members approach to patient care, is part of a larger, more memorable cause for them to hold the hospital in high regard.

Project Bachpan

One of the first JMFF CSR initiatives to be undertaken in Jamui – Bihar, Project Bachpan currently runs 18 preschool learning centres in Khaira and Sikandra blocks. These centres reach out to communities and children who wouldve otherwise been deprived of the required Early Childhood Care and Education (ECCE). The project set up and ran five centres from FY 2017-18. The 13 new centres have been identified, set up and operationalized phase-wise between April 2022 and June 2023. Collectively, these centres reach out to 406 children in 18 villages governed by nine Gram Panchayats, with a total household strength of over 2,900. The Bachpan centres operate day-to-day with 18 teachers and 18 Sahayikas (teacher-assistants) deployed locally. The centres have been built on community-owned spaces (i.e. Gram Panchayat Bhavan) or land parcels owned by village folk. Each of the centres is built on an area of about 700 sq. ft., comprising a classroom, kitchen, washroom, utility area and a fenced play area. The centres design as well as their approach to learning, nutrition and community-awareness are all aligned to a child centric focus, at the core of the project.

Learning at the centres takes place through a theme-based annual curriculum developed by the Foundation, brought alive with stories, poems, songs, activity charts and Teaching Learning Material - bought as well as created in the classrooms. The concepts and skills taught under each theme are modelled to achieve progression under five development domains*, and imparted in a combination of the local dialects and the childrens mother tongue. During the four hours of the centres daily operations, students are also provided with nutritious, hearty meals cooked voluntarily by their mothers, basis a pre-meditated roster and menu.

The JMFF team engages in regular training and handholding for teachers at the centres, as well as through separately organized teachers capacity-building sessions. Up till March 2024, the team has conducted 16 training sessions, covering teaching methods, curriculum support, puppet-making, creativity and poetry-writing.

Pintu Hansda – Ektarwa village, Khaira block

Pintu Hansda was not very eager to come to the centre in the beginning. His father used to bring him, but he would prefer to play outside and not sit with the rest of the students. He would, at times, run back to his home, following which, his mother would have to bring him back. This was the case for the first couple of months, but Champa Maam, our centre teacher, remained patient.

Today, Pintu arrives at the centre before opening time and greets his teacher with a loud "Good morning". If he sees her carrying something, he tries to help her. He stands in the front of the line and conducts prayer recitals for the class. When he was enrolled, Pintu was not able to recite the names of his parents. Now, he can recite his mothers and fathers names, count up to 20 (in Hindi), and identify different colours, animals and vegetables.

Pintu is most interested in playing with his friends and reciting poetry. His favourite poems are Machli jal ki raani hai and Aao chalo ab ghar ko jayein. He loves eating khichadi with leafy vegetables served at the centre.

JM Financial Shiksha Samarthan

Initiated as a Covid response project, JM Financial Shiksha Samarthan stayed committed to support the education of children whove lost either/both parents to the pandemic. From its inception till date, the project has supported the education of 7,879 school students. During the year, the project has remitted support towards 3,275 students private school fees, amounting to Rs 8.06 Crore, to the schools bank accounts in two half-yearly tranches. These students are studying in 1,970 private schools across 18 states and two union territories. Through its outreach extension efforts, the project has supported 3,037 students ancillary education expenses, totalling to Rs 3.13 Crore. The support for the said ancillary education expenses has been extended as part of our collaboration with The Women & Child Development Departments – Government of Maharashtra and Union Territory of Daman & Diu and Dadra & Nagar Haveli and with The Social Justice and Empowerment Department – Government of Gujarat.

JMFF has conducted thorough background checks on each students family and has verified their academic and identification documents. Potential support cases have been presented to an internal assessment panel, with whose approval, fee disbursements have been made. Following this, schools and students parents have been notified. The project management team, consisting of five members, has maintained regular and personal contact with the surviving parents and children, using phone calls, e-mails text messages, virtual and physical meetings. These actions have been taken to ensure that the students can continue their education, regardless of any physical or financial obstacles they encounter.

Going beyond financial aid for education, JMFF organized workshops to train 65 mothers of our supported children from Mumbai and Pune, in making festive handicrafts. Three exhibitions were held where 13 of these mothers sold their creations, making a total sale of over Rs 2 Lakhs.

On January 14, 2024, the second annual Haldi-Kumkum ceremony was held for 64 participating Covid-widowed mothers and their children. Like last year, the objective was to celebrate traditional festivals inclusively, giving the mothers a reason to cherish once-celebrated occasions, while subtly addressing societal biases towards widowed women and bringing about cultural reform.

JMFF Digital Sakshatra

JM Financial Foundation has been focusing on bridging the digital divide in rural areas by providing digital literacy programs for children, adults, and community workers in Jamui and Palghar. The project has trained and certified 1,394 students since December 2021 in Jamui, and 1,040 students in Palghar since March 2022. The Digital Saksharta centre in Palghar center is operational with 50 computers and a soft-skills classroom, while in Jamui, a hub center with 15 computers and a soft-skills classroom is utilized to impart daily training. Additionally, two spoke centers are functional in Nauwadih and Jansidih villages of Jamui district, with three computers each. The project offers eight courses to students in age-groups ranging 9 years to post-graduation and beyond. Each of the courses has varying levels of depth and complexity in topics dealing with the hardware, software and applications of a computer. Aside from core computer knowledge, students undergo English and soft-skills training, covering English grammar, life skills, values, workplace ethics and job-readiness skills. The training material for all the aforementioned courses is provided to the students in the form of bilingual course books developed by our project implementation partner - NIIT Foundation.

With a longstanding desire to open the world of computers to children living predominantly in tribal regions of Khaira block of Jamui, JMFF initiated a new and first-in-the-area digital centre for school-going children in Deepakarhar village in Khaira block . The centre provides digital literacy and English language training to school-going children, with four batches of 51 students in grades 5 to 8. Pilot classes for grades 1 to 4 were also initiated during the year, to improve their language skills. The centre has garnered attention from district and block offices for its unique venture in the area.

During the year, students of the two regions were also taken on industrial exposure visits to factory and retail set-ups in the pharmaceutical, beverages and departmental shopping sectors. Such exposures help convert students into well-groomed individuals, with lesser shyness and enhanced confidence in making and holding conversations. In a geography where digital literacy was a luxury, the project has empowered children and youth with digital skills for their future.

Centre for Financial Research – IIM Udaipur

The JM Financial Centre for Financial Research at the Indian Institute of Management, Udaipur (IIM-U) was inaugurated on November 29, 2023. The Centre was inaugurated by Mr. Nimesh Kampani - Chairman, JM Financial Limited, Mr. Vishal Kampani - Non-Executive Vice Chairman, JM Financial Limited, and Prof. Ashok Banerjee - Director, Indian Institute of Management, Udaipur, in the presence of the senior leadership of the JM Financial Group, as well as students of IIM-U.

JMFF has contributed towards the said Centre for its infrastructure set-up and ensuing research. The Centre is expected to facilitate cutting-edge academic research in topics related to traditional finance as well as socially relevant research themes. Since its opening, 14 research assignments have been initiated under five themes, namely – FinTech, Climate Finance, Governance, Financial Markets and Accounting Quality.

Pune International Centre

JM Financial Foundation supported Pune International Centre (PIC), a think-tank established in 2011, for the construction of a new state-of-the-art campus spread over 1.5 lakhs sq. ft at Pashan, Pune. PIC aims to foster inclusive economic, social, educational, and cultural pursuits, contributing to national development. The campus is being built on 2.8 hectares of land sanctioned by the Government of Maharashtra for the Centres notable contribution towards nation-building over the past 12 years.

This new campus, supported by us, has been designed to comprise an admin and research building, auditorium, office building, MEP and convention hall.

JMF Scholars – Ashoka University

JM Financial Foundation has supported 55 students since FY 2020-21 for their undergraduate studies at the premier institute – Ashoka University at Sonepat, Haryana. These young ones belong to backgrounds where affording an excellent education with a fluid pedagogical design wouldve remained a dream, lest for the ladder offered by way of our scholarship support. Hailing from different states, these 25 girls and 30 boys are being able to pursue unique subject combinations such as English with Performing Arts, Economics with Computer Science and Philosophy, History and Political Science, Computer Science with Physics and Psychology with Biology. The scholars supported by way of this project are currently in the last year of their undergraduate studies. With the completion of this academic year by June 2024, JM Financial Foundations support will be formally concluded.

JM Financial Sports Project

Conceived and initiated in FY 2020-21, the JM Financial Sports Project has since, trained 400+ children and youth in athletics and football across four blocks of Jamui district, Bihar. The initiative involved the creation of four sports grounds aimed at training, nurturing, and promoting young girls and boys from rural and tribal areas in football and athletics. The project recognizes the potential in these children, their lack of opportunity, and the importance of sports in holistic development. Against this background, we aim to create future-fit sportspersons by addressing the lack of infrastructure, equipment, and certified coaches for training talented youth in rural areas.

Our trainee children and youth are 6 to 17 years old, and belong to homes where sports has never been seen as a viable career option or even a subject to learn. For the purpose of their training, they have been divided into three categories - grassroots, sub-junior and junior. Trainees participate daily in rigorous football and athletics training sessions, in morning and evening batches, while also participating in various sports tournaments and championships, and enhancing their competitive capacities.

In FY 2023-24, our trainees participated in 14 football tournaments. In the same period, our trained athletes participated in one zonal, four state-level and 52 district-level athletic championships, and won 57 medals (23 gold, 19 silver, 15 bronze).

Model Village Development Project

Farmers in Jamui, like the rest of our country, rely heavily on rain for agriculture. However, the district has been experiencing below-average rainfall in recent years. This deficit, combined with climate change effects, and low levels of agricultural knowledge, exposes farmers in the Khaira and Sikandra blocks of Jamui to a high sustenance-related risk. Depleting groundwater levels, commercial inputs dominating the market, and traditional practices without scientific backing further complicate the situation for small and marginal farmers in the area. Premised on this grassroots situation, JMFF has been working in Jamui district of Bihar through the Model Village Development Project, intending to forge comprehensive development in the villages of Sikandra and Khaira blocks of Jamui, Bihar.

In FY 2023-24, the project emphasized on introducing coarse cereals and low-water intensity crops. The methodology deployed, mirrored that of previous years, including training farmers, providing them quality agricultural inputs, supporting and strengthening them with small and large-scale mechanization, coupled with ongoing guidance to achieve high-quality yields.

• Farmers Training

Our ongoing group-based farmers handholding culminated through 21 organized sessions in Khaira and 31 in Sikandra, attended by a total (cumulative) of 1,848 farmers (883 female, 965 male). These sessions imparted agri-know how on cultivation of nutrition gardens, Kharif season crops, Rabi season crops, and formation & operation of farm equipment committees (described below). Additionally, to enable farmers to experience practical applications of the guidance received, and believe in the possibility of successful integration of taught practices, JMFF organized five exposure visits between October 2023 and February 2024, and invited agri-experts to train them, as highlighted below:

Sr. No. Date	Place visited	Visit Description	Attendees
1 Oct 12, 2023	Krishi Vigyan Kendra, Sheikhpura district	Knowledge session on climate resilient agriculture techniques viz. selecting climate-resilient crop varieties, adjusting planting schedules, rainwater harvesting, utilizing moisture-retaining mulches, biological pest- control methods, and so on	48
2 Jan 03 - 04, 2024	Kisan Mela and Krishi Yantrikaran Mela, Jamui district	Visit to other non-profits and government department stalls displaying schemes and initiatives aimed at increasing agricultural development in the region.	10
3 Jan 12, 2024	Krishi Mela, Jamui district	Agri-exhibition showcasing agricultural innovations, promoting sustainable farming practices, and fostering collaborations for agricultural development.	9
4 Jan 30, 2024	Urvatanr – Chakai, Jamui district	Learning from a model farmer and his practices around large-scale cultivation of vegetables, fruits using government-provided seeds and solar panel.	64
5 Feb 01, 2024	Centre of Excellence, Chandi, Nalanda district	Training camp aimed to educate farmers from all districts of Bihar on various aspects of horticulture, particularly dry gardening, including cultivation of jackfruit, oranges, lemons, and pomegranates.	9
			140 attendees

 

Sr. No. Date	Resource person	Training Subject	Attendees
1 Oct 12, 2023	Dr. SK Singh – Head; Smt. Ruby Kumari – Subject Matter Specialist, Home Science - Krishi Vigyan Kendra, Jamui district	Soil and water conservation, paddy management, zero tillage farming, vegetable crop management	48
2 Jan 03 - 04, 2024	Shri Nitish Kumar – Assistant Manager, Netafim India	Water management and efficient irrigation methods	10
			58 attendees

• Seeds and sapling inputs

Along with training and continuous handholding, providing the right seeds and saplings to farmers is of paramount importance to the project objective. Over the past three years of implementation, the project has promoted the cultivation of staples with high-quality, scientifically-researched seeds. This year too, we have provided the below-mentioned seeds and saplings to farmers in Khaira and Sikandra blocks:

	Farmers
Crop	Khaira	Sikandra	Total	Input Type	Inputs Provided	Area under cultivation (in acres)	Production (till end Mar 2024)
	Kharif Season (Summer crop)
Paddy	242	179	421		4,856	122	1,400 quintals
Maize	289	79	368	Seeds	350	64	725 quintals
Millets (Madua)	183	15	198	(in kg)	82	1	2.40 quintals
Roselle (Kudrum)	142	3	145		62	16	11.45 quintals
Pigeon Pea (Arhar)	210	67	277		250	23	57 quintals

 

	Farmers
Crop	Khaira	Sikandra	Total	Input Type	Inputs Provided	Area under cultivation (in acres)	Production (till end Mar 2024)
	Rabi Season (Winter crop)
Mustard	217	203	420		500	277	42 quintals
Gram (Chana)	314	215	529	Seeds	2,000	45	115 quintals
Wheat	168	232	400	(in kg)	4,000	91	658 quintals
Chili	10	18	28		26,025	1	8.50 quintals
	Horticulture
Lemon	24	3	27	Saplings	912	3	Plants currently in gestational stage.
Mango					228

This year, our efforts persisted in promoting Nutrition Gardens as cost-effective, dependable, and easily accessible vegetable sources for 848 farmers in Khaira block and 1,037 farmers in Sikandra block. These gardens, established within the farmers homes, span 200 to 700 square feet and are intricately designed to maximize water efficiency while facilitating the cultivation of a variety of vegetables. By providing education and distributing 1,885 nutrition garden kits, we have empowered farmers to grow their own wholesome and nourishing produce.

• Farm equipment committees

The project introduced the concept of agri-equipment banks in 15 villages across Khaira and Sikandra blocks to assist small and marginal farmers in accessing agricultural equipment without the burden of individual ownership. These banks are established in six villages of Khaira and nine villages of Sikandra, as per the identified need, and provide 10 types of equipment on rent.

The project team facilitated the formation and formalization of 15 agri-equipment committees, known as Adarsh Krishak Hitt Samuhas, comprising 217 members in total. Each committee has elected positions and has been established to oversee the equipment rental process of the for farmers in need. Furthermore, the project has also facilitated access to larger, capital-intensive farm equipment available for rent at the project office.

Water Conservation and Allied Interventions

The state of Bihar is facing a severe water crisis, with 14 of 23 reservoirs reaching the Dead Storage Level and groundwater levels dropping in 13 out of 38 districts, including Jamui¹. Despite being ranked third in the High Achievers category for village-level water connections, the availability of water in Jamui is scarce, with only two hours of water supply twice a day². The increasing population is further depleting the already limited underground and surface water sources.

The Kuil river in Jamui is dry. Wells, once a reliable water source, are now empty and in poor condition. JMFF embarked on water conservation efforts in Jamui district by reconstructing and restoring dilapidated community wells in Khaira, Sikandra and Chakai blocks in FY 2022-23. Initially, 12 wells were restored, followed by ongoing monthly monitoring by JMFF to track water levels. The year 2023-24 began with a target to identify, renovate, strengthen and reinstate 50 wells across Khaira and Chakai blocks. A total of 130 wells were identified, of which civil work for repair and renovation was undertaken for 50 wells in a phase-wise manner. The civil work, constituting about 80 per cent of the intervention on each well, has been completed on 42 of these wells. Each of these wells dates back to the early 1970s–1980s and had been written off by the resident communities, owing to the dearth of water they held within.

Now covered by protective lids and cleaned of silt and other debris, each of these wells holds the potential to conserve rainwater and recharge groundwater up to 5 acres around it. The project has also facilitated the construction of bath sheds and cattle drinking water tanks (measuring 8 * 3 * 2) on 14 of these wells, given the visible need of the resident cattle population.

The monsoons in the coming year, if received adequately, will testify for or against the success of the intervention. JMFF is hopeful that these revitalized wells will once again become community assets. Even more hopeful are our village folk, who wait for this traditional gold to shine once again.

Integrated Livestock Development Centres (ILDC)

Despite Bihars rich history in animal husbandry and a large bovine population reflecting its agricultural strength, the lack of adequate veterinary services has negatively impacted the health and nutrition of the cattle. Over time, this has also affected the financial stability of their caretakers.

Before project commencement, JMFF had surveyed nine villages in Sikandra block, Jamui district. Findings from this survey highlighted issues including limited veterinary access, transportation challenges for large livestock, low awareness of preventive healthcare and breed improvement, and the need for advanced cattle-rearing techniques to boost milk production and farmer livelihoods. In response, the ILDC project was initiated in January 2018. Each ILDC established within this initiative functions as a veterinary center, staffed by locally identified and trained para-veterinarians known as Gopals. Spread across 22 Gram Panchayats, a total of 22 ILDCs cater to cattle owners in over 210 villages spanning Chakai, Jhajha, Sikandra, and Khaira blocks of Jamui, Bihar.

The ILDC project has remained steadfast in its commitment to deliver high-quality cattle healthcare and management services to farmers residing in the villages of the aforementioned blocks. To this effect, it ensured providing round-the-clock preventive and curative healthcare services. Concurrently, efforts were made to boost cattle milk production and improve farmers livelihoods with green fodder seeds and with comprehensive scientific education. This educational initiative aimed to raise awareness among farmers about preventive measures and advanced scientific practices in cattle rearing.

This year, apart from supporting farmers with Makkhan grass seeds for green fodder, the project provided them with 400kg Sudan green fodder seeds. This is a warm-season crop that the farmers will be able to sow in the upcoming Kharif season and reap fodder for silage, even if the region receives less rainfall. Belonging to the Sorghum family, the Sudan grass uses water more efficiently during gestation and provides 4 to 5 cuttings in one season of a 21-30 days cutting cycle.

Integrated Village Development Project

The Integrated Village Development Project completed its sixth year of implementation in the Mokhada block of Palghar, Maharashtra. Before our intervention, farmers in the specified project area practised traditional agriculture, focusing on mono-cropping, with only rice, nagli (finger millets), and varai (barnyard millets) grown annually for sustenance. They relied heavily on rainfall, seldom cultivated vegetables, pulses, fruits, or oilseeds, and engaged in shifting agriculture. Although cashew cultivation existed in the region, it was minimal for market linkages. The terrain, predominantly hilly, received substantial rainfall but lacked visible water conservation methods beyond open wells. Consequently, water runoff was common, depriving farmers of its benefits. Against the backdrop of these lacunae, similar to our strategy in the Model Village Development Project in Bihar, JMFF has been implementing the Integrated Village Development Project across seven villages in the Mokhada block. Initiated in the Financial Year 2018-19, the project is a collaborative effort with district authorities and is being sustained as a long-term initiative.

• Farmers Training

Our ongoing, group-based farmers handholding culminated through 40 organized sessions, attended by a total (cumulative) of 634 farmers up-till March 2024. Some of these sessions have been jointly undertaken with Krishi Vigyan Kendra, Dahanu, and awareness has been imparted on topics including, but not limited to – pest and disease management in horticultural crops, blue rice plantation, system of finger millets intensification and paddy transplantation. To enable farmers to experience practical applications of the guidance received and believe in the possibility of successful integration of our taught practices, JMFF organized three exposure visits in November, December 2023 and March 2024.

Sr. No. Date	Place visited	Visit Description	Attendees
1 Nov 24, 2023	Krishithon Agri Expo, 2023 - Nashik	• 16th edition of Indias largest international agriculture trade fair	42
		• An opportunity to see the latest innovations in agricultural products and technologies, and attend educational seminars on agri-topics.
2 Dec 15, 2023	Kisan Agri Expo, 2023 - Pune	• 32nd edition of the Kisan Agri Show series, organized with an objective of creating a single platform for the Indian agri community	14
		• An opportunity to meet and interact with 500+ exhibitors displaying their agri-products and services
3 Mar 22, 2024	Progressive farmers plots	• Three progressive, project - farmers sites were selected for the exposure visits. Each offered a unique insight into different agri-practices, such as - cultivation of fruit-bearing trees, practical applications of water from Continuous Contour Trenches (CCTs) and jalkund (farm ponds).	35

Since 2018, in addition to training farmers, the project has revitalized 51 Self Help Groups (SHGs), and empowered them consistently through regular capacity-building. Over the years, these SHGs have evolved from simple savings groups to engaging in income-generating endeavours. This year, weve conducted 194 meetings/sessions to strengthen 18 SHGs.

• Seeds and sapling inputs

In addition to guidance and support, providing scientifically-researched, high-quality seeds and saplings in the Kharif and Rabi seasons remains crucial to the project objective. Given below is an overview of the inputs provided during the year:

Crop	Farmers	Inputs (seeds in kg)	Area under cultivation (in acres)	Production (till end-Mar 2024)
	Kharif season (summer crop)
Blue rice	50	250	13	198 quintals
Paddy (SRI*)	260	2,600	260	4,500 quintals
	Rabi season (winter crop)
Chickpea	200	1,600	50	Awaited

* SRI : System of Rice Intensification

We have been promoting vegetable cultivation by giving kitchen garden kits to farmers, aiming to boost income and improve nutrition. Cultivating in small areas allows better pest and disease control, ensuring safer produce without pesticide residues. This year, 150 farmers received 300 kits, resulting in over 6,000 kg of vegetables, enhancing household nutrition and providing income through sales.

• Water conservation

JMFF aims to preserve the high annual rainfall in the region (above 2,400 mm) by implementing affordable and eco-friendly rainwater harvesting systems. Farmers build these structures with our guidance and technical support. The project promotes two types of structures, outlined below.

Continuous Contour Trenches (CCTs)

We have pioneered and promoted the digging of simple trenches, with no casting material, each measuring 18 * 2.5 * 2 along hill-slopes. The objective is to raise groundwater tables and increase soil moisture.

	CCTs dug	Area covered (in acres)	Crop plantation along CCTs
Finanical Year			Cashew	Mango
2019-20	1,073	17	494	584
2020-21	1,732	25	975	550
2021-22	3,221	55	1,910	976
2022-23	2,241	41	1,018	678
2023-24	2,632	48	810	912

Jalkund

In contrast to CCTs, a jalkund is typically dug on low-lying flatlands. Translating to water ponds, these water conservation structures were introduced in FY 2021-22. Each jalkund measures 10m * 10m * 1.5m and possesses an average rainwater holding capacity of up to 1,00,000 litres. Up till March 31, 2024, the project has facilitated the related education, digging and lining of 331 jalkund.

Water-wheels

We have supported 350 most-deserving women from across the seven villages of our project geography with one water-wheel each. Designed in the form of 45–litre drums, these water-wheels are simple solutions that help our rural women and children daily, in drawing and dragging pails of water in odd-shaped utensils multiple times a day. Meant to be leakproof and durable, these water-wheel carriers are in use to fetch three times as much water in half the time.

• Increasing community access to public entitlements

The project-established helpdesks at the Gram Panchayat level in Ase and Beriste, continued to support communities with linkages to government schemes. The teams process of educating families, assisting them with paperwork, and coordinating with government departments, has led to the linkage of public schemes amounting to nearly Rs 8 Cr. This year, the project team processed 13,005 applications, approving 10,751, linking Rs 1.13 Cr. worth of schemes to 1,513 beneficiaries.

WOMEN EMPOWERMENT

Shri Vardhman Mahila Griha Udyog

Shri Vardhman Mahila Griha Udyog (SVMGU) was initiated as a field-action project by JM Financial Foundation in December 2017 in Sikandra block of Jamui district – Bihar. It is run as a small-scale khakhra production unit that has completed seven years of micro-enterprise operations. JMFF provided financial support for all expenses incurred towards setting up and running the Udyog from inception till July 2019. From the month of August in the same year, the unit has been independently taking care of all its expenses. Even in the two years of the pandemic, when small businesses languished, the Udyog stayed strong. Running on an SHG (Self Help Group) model, given the background that the women belong to, this is no small feat.

In FY 2023-24, the Udyog has remained operational for 197 days, with 21 members roasting 9,992 kg khakhra in plain, masala, ghee, jeera and Mangroli varieties. A total sale of 9,831 kg khakhra has earned a revenue of INR 24.51 Lakhs.

The Udyog has a maximum monthly production capacity of 900 kg at full strength. Each member has earned an average Rs 4,500/- every month. While the Udyog works autonomously, the JMFF team provides handholding from time to time in the form of counselling women, supporting them in maintaining their records and planning.

HIGHLIGHTS

ACCOLADES : EMPLOYEE VOLUNTEERING

ACCOLADES

The JM Financial group received humbling recognition for its work in the space of Corporate Social Responsibility (CSR) in the form of two, very prestigious awards:

• Mahatma Award 2023

JM Financial Foundation was honored with the prestigious Mahatma Award 2023 for its noteworthy commitment to Corporate Social Responsibility (CSR) excellence, coupled with an additional accolade, the Mahatma Award for Best Social Impact Team in spearheading initiatives for Social Responsibility, Social Good, and Impact in 2023.

The entire Foundation team was bestowed with this esteemed recognition during the ceremony

held on September 30, 2023, at New Delhi. The Mahatma Award, established and endowed by the esteemed Social Entrepreneur and Philanthropist, Mr. Amit Sachdeva, renowned as

The CSR Man of India, stands as a beacon of distinction.

This annual accolade is generously supported by the Aditya Birla Group and orchestrated by the Liveweek Group.

• Golden Peacock Award for Corporate Social Responsibility

JM Financial Limited received the coveted Golden Peacock Award for Corporate Social Responsibility under the Financial Services sector in the national category.

A total of 418 applications were submitted by various organizations, of which 168 were shortlisted after a 3-tier scrutiny and assessment process. Of these, 34 companies (including JM Financial Limited) were considered deserving of the award. The Golden Peacock Awards, instituted by the Institute of Directors (IOD), India in 1991, are now regarded as a benchmark of Corporate Excellence worldwide.

EMPLOYEE VOLUNTEERING

Asacommemorationof50yearsofJMFinancialGroupsjourney, JM Financial Foundation launched CompassionCrew@50 in September 2023. The programme has been conceptualized as an annual employee volunteering campaign, providing employees from across the group, an opportunity to immerse themselves in community service at the grassroots, through our CSR projects. The programme was rolled out by:

The Foundation received applications from 50+ volunteers who contributed over 1,100 hours of their working time to our field-action projects at Jamui, Bihar and Palghar, Maharashtra.

Having worked in core business operations within the organization, each volunteer returned from their fieldwork, imbued with a sense of humility with the JM Financial Groups magnanimous contributions to areas they hadnt even heard of. Spending a few days with the community and the field team not only warmed their hearts but brought home the realization of just how blessed the rest of us are to be living our lives. They opined that more volunteers should participate every year to understand how much the Group extends itself beyond its core business services.

PHILANTHROPY BY JM FINANCIAL FOUNDATION

Since its establishment, the JM Financial Foundation has consistently embraced and acted upon its commitment to philanthropy. The Foundation has actively backed numerous commendable endeavours spearheaded by various charitable organizations spanning education, healthcare, sports development, assistance for the differently-abled, animal welfare, and the advancement of Indian art and culture. Below are some of the initiatives supported during the year:

Aiding healthcare services

Our healthcare initiatives have significantly contributed to providing medical care for underprivileged children with critical cardiac illnesses. We have also offered medical and nutritional support to vulnerable children from socioeconomically deprived families. Our efforts include support to the organization of medical camps, cataract surgeries for those in dire need in rural southern Gujarat, specialized eye-care and vision screenings, and quality healthcare in Karnataka. In Mumbai - Maharashtra, we have equipped a deserving multi-speciality charitable hospital with essential Operation Theatre equipment and have facilitated paediatric cataract surgeries. JMFF has provided support towards the making and supply of artificial limbs, calipers, and other advanced devices, to help disabled individuals with their mobility and quality of life. We have also provided nutritional support to infants in pre-adoption foster care, ensuring their well-being during a critical phase of their development.

Enabling education for children with and without special needs

The Foundation has played a pivotal role in the advancement of students from disadvantaged backgrounds by aiding balwadi students with essential attire and footwear. We have also supported the operations of educational institutions, impacting deprived children and youth from the slums of Mumbai – Maharashtra, as well as rural Karnataka. The Foundation has also contributed towards a musical performed by children of municipal schools, showcasing Indias Constitutional values in multiple cities.

Training of sports athletes

We continued our support to athletes training for the Olympics with nutrition inputs and sports management. During the year, our support has enabled the trained athletes to win gold for the country in various sports, such as shooting, javelin and badminton, and paralympic sportspersons to compete on recognised platforms.

Promotion of music and cultural traditions

Preserving our national cultural legacy is crucial, as it upholds our identity as a community. JMFF takes pride in backing an institution committed to preserving, enriching, and upholding the diverse traditions of Hindustani and Carnatic arts and music, along with the broader domain of Arts & Culture, including Indian Classical genres.

Other initiatives – Policy research, Animal welfare, Women empowerment

JMFF supports comprehensive research on a multitude of topics that are crucial for policy development, particularly those that pertain to Indias contemporary challenges. In addition to supporting the protection and conservation of wildlife, we also extend ourselves to the safekeeping and nurturance of cows no longer considered to be economically beneficial. In the state of Gujarat, the Foundation helps champion women empowerment in lesser-developed regions, through education and skills training, essential for inclusion in the economy.

HUMAN RESOURCES

We at JM Financial, are driven by the success of our employees. Our employees have increased to 4,000 as of March 31, 2024 as compared to 3,260 as of March 31, 2023 and 2,405 employees as of March 31, 2022. It represents a net addition of 740 employees over the course of FY24 and a net addition of 1,595 employees over the last two financial years. We have expanded across our businesses and more specifically in our non-institutional businesses such as asset management, wealth and distribution, digital businesses and retail mortgage. We are putting in dedicated efforts to attract and recruit the best talent across our businesses. Our Human Resources department plays a crucial role in ensuring that we attract, develop and retain the talent needed to achieve our strategic goals.

Our team will always work tirelessly to support our employees in the face of unprecedented challenges. We ensure to support our business objectives in order to attract and retain top talent, ensure compliance with employment laws and regulations, and promote a workplace culture that fosters collaboration, innovation and excellence.

Engagement Surveys – Great Place to Work

JM Financial Group has been accredited as Great Place to Work-Certified™ by the Great Place to Work Institute for all seven participating entries/ businesses for the period Feb 2024 – Feb 2025.

Talent Management

We believe that investing in our employees is critical to our long-term success and we will continue to prioritize talent management in years to come focusing on creating a highly engaged and motivated employee base.

We aim at improving the recruitment process, enhancing the onboarding experience, investing in training and development as well as creating career development plans or succession plan.

Workforce Diversity

Our efforts to create a diverse and inclusive workforce are guided by a solid foundation to provide equal employment opportunities to all individuals.

Hiring

For the whole Group, a centralized campus team has been created to manage campus hiring. The team plays a key role in forging a solid connection with Institutes, B Schools, CAs, Law schools and Schools specializing in Social Studies.

The campus team constantly engages with the Institutes for live projects, internships, and final placements.

Rewards and Recognition

Rewards and Recognition plays a vital role in any work environment wherein the employees are recognized and rewarded for their contributions towards achieving organizational goals. The timely and fair recognition motivates employees and at JM Financial, we provide these boosters at intervals and at each business level.

We use tools such as iCheer to share appreciations wherein the employees can appreciate each other.

Employee Engagement

We engage with our employees through various initiatives at Group as well as business level. As our tradition, we celebrate all the festivals in great zest. International Yoga Day was marked with a group-wide initiative, offering online sessions nationwide. Fathers Day featured a heartfelt contest where employees shared photos and stories about their fathers. Friendship Day encouraged employees to twin with colleagues, fostering camaraderie and fun. Independence Day celebrations included traditional clothing and potluck. For Republic day, a captivating Photography Contest encouraged participants to encapsulate the essence of freedom, patriotism, and Indian culture through their lenses. Diwali this time was special being the 50^th year and its light spread across the organization. A celebratory lunch was planned for our support staff across offices. For Christmas, we turned the office into a Christmas wonderland with joyful Christmas carols. A Secret Santa gift exchange for the support staff was organized, creating a thrilled and festive atmosphere for employees.

We celebrated our 50^th year anniversary with great enthusiasm and excitement. To mark this momentous occasion a month-long series of activities such as sports day, karaoke evening and Zumba sessions were organized across our offices, providing our employees with opportunities to come together and celebrate. A Talent Gala capped it all off, showcasing employees hidden talents through skits, dances, and singing. Sporting events like cricket and football championships, as well as recreational activities like bowling, fostered teamwork and friendly competition. Special events like the Fem Health Carnival on Womens Day prioritized employee well-being and empowerment, creating a vibrant and inclusive workplace culture.

Employee Wellbeing Initiatives

At JM Financial, our commitment is to empower our employees to achieve optimal physical, mental, and emotional well-being. To realize this goal, weve introduced initiatives like Doctor on Call and comprehensive Leave and Paid Time Off policies.

Performance Management

We follow a comprehensive performance evaluation process for annual reviews, which was digitalized and a structured performance evaluation calendar was launched.

This practice helps us identify the capabilities of employees and leverage the same. It also helps us to suggest and plan development in the identified areas through training. For this, a Training Need Analysis is captured.

Trainings were provided to new joinees, in order to help them get equipped with the appraisal process and the system.

Compensation and Benefits

Our compensation framework is structured to align with the interests of our employees with the long-term interests of the group and its other stakeholders. JM Financial also offers various benefits designed to meet the needs of our employees. These benefits are an integral part of our Company and provide employees and their families valuable support, during employment with JM Financial.

Succession Planning

At JM Financial, we promote an atmosphere of inclusion, by encouraging the next level of employees to take higher responsibilities. Managers along with Human Resources formulate a customized grooming and orientation of high potentials, by carefully planning their work experiences. Their skills and capabilities are developed through further training and mentoring.

Learning and Development

Employee training and development is a cornerstone of our HR strategy and long-term goals. Recognizing the shift away from a fully virtual work environment, weve adopted a blended learning approach that combines in-person and virtual training sessions. Monthly training calendars and Knowledge Community sessions ensure that employees stay informed about upcoming opportunities and industry trends, fostering a culture of continuous learning.

Our departmental programs, like "Stepping Stones" for the Investment Banking team and "Insurance Gurukul" for Retail Wealth, provide specialized knowledge tailored to specific roles. Workshops cover a wide range of topics, including negotiation skills, effective report writing, and advanced Excel techniques, addressing various skill development needs across the organization.

Leadership programs such as "Going Beyond" and "Synergies

& More" are designed to empower leaders with the tools and strategies needed to excel in their roles and foster a collaborative work environment.

Through these comprehensive initiatives, we prioritize the growth and development of our employees, equipping them with the skills and knowledge needed to succeed in their careers.

SAFE HARBOUR

This report describing our activities, projections and expectations for the future, may contain certain ‘forward looking statements within the meaning of applicable laws and regulations. The actual results of business may differ materially from those expressed or implied due to various risk factors and uncertainties. These risk factors and uncertainties include the effect of domestic as well as global economic and political events, volatility in interest rates and in the securities market, new regulations and government policies that may impact our businesses as well as ability to implement our strategies. We are under no obligation to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events and assume no liability for any action taken by anyone on the basis of any information contained herein.