JMD Ventures Ltd Management Discussions

ANNUAL OVERVIEW AND OUTLOOK

The global economy enters 2026 in a state of guarded resilience. Growth has held up better than anticipated through 2025, supported by strong labour markets in advanced economies, continued technology-led capital expenditure, and a gradual easing of financial conditions. However, the underlying momentum remains uneven and increasingly sensitive to policy shifts and geopolitical developments.

According to the IMFs April 2026 update, global growth is expected to be at around 3.1% in 2026 and 3.2% in 2027, revising its 2026 forecast downward by 0.2 percentage points from the January 2026 update, primarily reflecting the impact of the Middle East conflict on commodity markets, inflation expectations and financial conditions. In contrast, the World Bank presents a more cautious assessment, projecting growth at 2.6% in 2026 with only a modest improvement thereafter. The divergence reflects differing assumptions on trade normalisation, fiscal support, and the durability of private investment. What is clear, however, is that the post-pandemic recovery remains incomplete, particularly across several emerging and developing economies where income levels have yet to fully recover.

Global inflation remains on a disinflationary path, although the pace of moderation has become uneven across regions. The easing in price pressures continues to be supported by the lagged impact of past monetary tightening, normalisation of supply chains and softer labour-market conditions in several economies. However, renewed geopolitical risks and the impact of the Middle East conflict on commodity markets have complicated the inflation outlook. In its April 2026, the IMF projected global headline inflation at 4.4% in 2026, before easing to 3.7% in 2027, noting that inflation is expected to rise modestly in 2026 before resuming its decline in 2027.

Indias economic performance through FY2025–26 stands out in an otherwise uneven global landscape, underscoring the strength of its domestic growth drivers and improving macroeconomic fundamentals. Real GDP growth is estimated at 7.6% for FY2025–26, up from 7.1% in the previous year, reaffirming Indias position as the fastest-growing major economy. The expansion has been broad-based, with real Gross Value Added (GVA) rising by 7.7%, supported by a balanced contribution from manufacturing and services. Nominal GDP growth, at 8.6%, reflects both real expansion and a low inflation environment. A defining feature of Indias growth trajectory has been its domestic orientation. Unlike earlier cycles that relied significantly on external demand-supply in critical areas, the current phase is anchored in resilient consumption, sustained government capital expenditure, and a gradual revival in private investment. Household balance sheets have strengthened over the past few years, aided by lower leverage, stable employment conditions, and improving income visibility. Corporate India, in parallel, has deleveraged meaningfully, with healthier profitability and balance sheets enabling renewed capital expenditure. The banking sector 52 Anand Rathi Share and Stock Brokers Limited has also emerged stronger, with improved asset quality, higher capital adequacy, and a willingness to support credit growth. This alignment across households, corporates, and financial institutions has created a more durable investment cycle.

INDUSTRY OVERVIEW

Media & Entertainment

The Indian Media and Entertainment (M&E) industry is widely regarded as a sunrise sector of the economy and continues to make significant progress. The rapid expansion of affordable high-speed internet, rising disposable incomes, and growing adoption of consumer durables—such as smart phones, smart TVs, and digital devices—have substantially accelerated the sectors growth.

This industry has experienced growth and transformation over the years. Factors such as internet access, economic growth, and increased consumer spending have played a role in its popularity.

These factors have greatly contributed to the advancement of the industry making India a frontrunner in adoption. As a result, industry groups now have access to amounts of data that can help them gain better insights into their consumers. Moreover, India has emerged as a content creator, particularly in the field of visual effects (VFX).

The Indian M&E industry has proven its resilience to the market and is headed towards substantial expansion. This upward trend is driven by growing consumer demand and increased advertising revenue. According to the FIC CI-EY M&E sector report released in March 2025, Indias Media & Entertainment (M&E) sector contributed 0.73 % to GDP in 2024, and within that advertising accounted for about 0.38 % of GDP and the Indian M&E industry reached a total valuation of INR 2.5 trillion (˜ US $29.4 billion) in 2024.

Indian Capital Market

Indias capital market has, over the past few years, transitioned from a liquidity-driven expansion to a structurally deepening financial ecosystem. The evolution is no longer defined solely by index performance or episodic inflows, but by a sustained broadening of participation, increasing institutionalization of savings, and a widening array of capital formation channels. FY2025–26 reflects this transition with greater clarity: market activity remained elevated, but more importantly, the underlying drivers—household financialization, domestic institutional flows, and diversified product penetration—continued to strengthen.

At the aggregate level, India remains among the largest equity markets globally by market capitalization, supported by sustained economic growth, improving corporate balance sheets, and rising investor participation. Secondary market liquidity has remained robust even through phases of volatility, indicating that trading depth is now underpinned by structural domestic flows rather than transient global liquidity cycles. This marks a distinct shift from earlier periods when market direction and liquidity were disproportionately influenced by foreign portfolio investors.

SEGMENTWISE REPORTING

In regard to Segment Results, revenue from the Entertainment Segment was of Rs 46.61 lakh in comparison to last years revenue of Rs 48.84 lakh, from the Finance & Investment Segment, the same was of Rs 85.49 lakh in comparison to last years revenue of Rs 243.50 lakh. The Revenue from other un-allocable Segment was of Rs Nil in comparison to last years revenue of Rs Nil lakh.

OPPORTUNITIES & CHALLENGES

Background

The Company is mainly into the business of investments in Shares & Securities apart from its set business i.e. studio renting as well as income from music uploaded on YouTube.

Media & Entertainment Industry

Opportunities

The Indian media and entertainment (M&E) industry is one of the fastest growing industries in the country. Its various segments, film, television, advertising, print and digital have witnessed tremendous growth in the last few years. The industry is highly driven by strong consumption in non-metro and small cities, intense emergence of regional media and burgeoning new media businesses and formats.

According to the "Internet in India Report 2025" by IAMAI and Kantar, Indias active internet user base crossed ~958 million in 2025, growing about 8 % year-on-year and led by rural connectivity expansion. Rural India accounted for ~548 million users (57 % of total), showing where future growth is concentrated.

This means India is approaching the 1 billion user milestone around 2026, a huge base for digital media, online video, social media and advertising platforms.

Challenges

While the entertainment industry has quickly increased its use of online infrastructure to create, market, distribute, and sell intellectual property, it is behind the curve on cyber security. Media and entertainment companies can respond slowly to cyber incidents compared to businesses making up critical infrastructure in highly-regulated sectors, such as finance and healthcare. This lack of preparation can cost dearly financially, legally, and in terms of reputation.

Cyber Risks in the Entertainment Industry

Some of the top cyber risks threatening entertainment companies are industry-specific. However, many cyber threats affecting entertainment businesses are common to other businesses. As is often the case, cybercrimes affecting the entertainment industry are largely financially motivated. Whatever the reason and source behind the cybercrime, entertainment companies often find themselves on the back foot when faced with a cyber-attack.

One case is when cybercriminals hacked Disney+ accounts the moment Disney launch edits online service, demonstrating how ill-prepared for a cyber-incident they were and how organized hackers were by comparison. Disney was neither prepared for the vast number of people demanding access to popular shows nor for the simultaneous data breach in which hackers changed many users passwords and sold or offered the hijacked accounts for free on the dark web. Customers severely criticized the company on social media, causing reputational damage that cannot be measured in lost revenue but can do lasting harm to a business.

The first step for entertainment businesses to protect themselves and their customers from cyber-attacks is to understand the cyber risks most relevant to these businesses. Then they can strategize to build long-lasting, robust businesses people can enjoy and trust.

Web Portals and Data Theft

With its move to using more online portals and streaming services, the entertainment industry asks consumers to set up accounts and enter sensitive data on their websites, including credit card details and dates of birth. Streaming and ticket sales are examples of the entertainment industrys increasing internet use and, therefore, entertainment companies growing attack surfaces. These use cases expose the industry to more potential attacks where cybercriminals seek clients personal data. Among other techniques, cybercriminals may achieve unauthorized access to financial details through phishing schemes, attacks on the businesss servers, or malware applied to web portals.

Malware

As entertainment businesses cater to customers with the modern online customer experiences they expect, they add to their vulnerabilities. Cyber security threats online include using malware such as key loggers or spyware with which hacker scan determine the access credentials of customers or staff. Hackers may then use this stolen information to achieve unauthorized access to restricted areas, to add credibility to phishing attempts, or to sell the information on the dark web.

Ransom ware

This specific kind of malware is on the increase in all industries. Its a significant risk for the entertainment industry because, as well as causing massive disruption, it also risks lost reputation and stolen intellectual property, which are crucial for media companies.

Third-Party and Supply Chain Risks

Media and entertainment supply chains have many moving parts. This includes a long list of vendors and other third parties that can pose significant security risks for entertainment businesses. A disruption to a long-tail supply chain like that of the entertainment industry can cause ripples far and wide.

Remote Working

The COVID-19 pandemic pushed many businesses into rapidly adopting remote working practices, but entertainment organizations often have an especially large number of people working remotely, especially creators.

Equity Investments

Opportunities

Indias capital markets have entered a new phase of development, building on decades of rapid evolution. Over the past thirty years, the market has progressed through distinct phases – from the foundational digitization of trading in the 1990s (Capital Markets 1.0), to broad-based growth and product expansion in the 2000s and 2010s (Capital Markets 2.0), and now into an emerging era that we might call Capital Markets 3.0. This latest phase is characterized by greater institutional participation, deeper global integration, and the rise of new platforms and instruments that are reshaping how capital is raised and traded.

This article traces the journey from Capital Markets 1.0 and 2.0 into todays 3.0 landscape. It examines key trends such as the surge in retail investors and demat accounts, the boom in derivatives trading and the regulatory responses it spurred, and the promise and pitfalls in the small and medium enterprise (SME) segment. It also outlines upcoming structural shifts – including the inclusion of Indian bonds in global indices, the expanding role of long-term domestic institutions, and the emergence of innovative avenues for fundraising and risk management. Finally, the discussion places Indias market development in a global context by comparing key metrics with peers like the United States, China, the United Kingdom, and Singapore. The article concludes with recommendations for policymakers and regulators to foster balanced, robust growth of the capital market ecosystem.

Challenges

The India capital market faces challenges from heightened market volatility and elevated valuation levels that increase correction risks. High price-to-earnings ratios compared to historical averages and emerging market peers raise concerns about sustainability of market performance. Foreign portfolio investor outflows during periods of global risk aversion create significant market fluctuations, impacting investor sentiment and portfolio values across market segments.

Despite improvements in financial inclusion, limited financial literacy, particularly in rural and semi-urban areas, constrains broader market participation. Many potential investors lack adequate understanding of investment products, risk assessment, and portfolio management principles. The complexity of financial instruments and insufficient investor education infrastructure in smaller towns hinder the expansion of capital market participation beyond urban centers.

The India capital market features a dynamic competitive landscape, characterized by diverse participants, including stock exchanges, brokerage firms, asset management companies, and investment banks. The market structure promotes healthy competition through regulatory frameworks, ensuring transparency and fair practices. Leading participants differentiate themselves through technology-driven platforms, comprehensive research capabilities, and superior customer service offerings. Digital transformation has intensified competition, as traditional players adapt to compete with technology-first entrants offering innovative products and lower transaction costs. Asset management companies compete through product innovations, performance track records, and distribution network expansion. Investment banks focus on building sector expertise and advisory capabilities to serve corporate clients effectively.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company has in place adequate internal financial controls with reference to the Financial Statements commensurate with the size, scale and complexity of its operations. Your Company has an Internal Audit team that is responsible for independently evaluating the adequacy and effectiveness of all internal control designs and implementation, risk management, systems and processes. Internal Audit team is manned by appropriately skilled, experienced and qualified personnel. The Internal Audit plan is also aligned with the business objectives of the Company which is reviewed and approved by the Audit Committee.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the financial year under review, the Company earned revenue from operations of Rs 46.61 lakh, along with other income of Rs 85.49 lakh, taking the total income for the year to Rs 132.09 lakh. While the Companys total expenses are less than its total income, resulting in a net profit for the year, the revenue generated from operations played a meaningful role in meeting the day-to-day operational and financial requirements of the Company. This, in turn, helped reduce the Companys dependence on additional borrowings from the Directors and from banks/financial institutions to fund its working capital and other requirements.

The management remains focused on improving operational efficiency, expanding revenue streams and exercising tighter control over costs, with the objective of strengthening the Companys overall financial performance in the coming years. These efforts are also aimed at progressively reducing the Companys reliance on external sources of finance and building a more self-sustaining operational and financial structure going forward.

RISKS AND CONCERNS

JMD Ventures Ltd. (JMD) has exposures in various line of business. JMD are exposed to specific risks that are particular to their respective businesses and the environments within which they operate, including market risk, competition risk, credit risk, liquidity and interest rate risk, human resource risk, operational risk, information security risks, regulatory risk and macro-economic risks. The level and degree of each risk varies depending upon the nature of activity undertaken by them.

MARKET RISK

The Company has quoted investments which are exposed to fluctuations in stock prices. JMD continuously monitors market exposure in equity and, in applicable cases, also uses various derivative instruments as a hedging mechanism to limit volatility. In regard to the music segment, new digital equipments are being introduced almost on every day. The invention of digital tools has changed the experience of listening music for music lovers. But these improved equipments need a lot to be invested and it is challenge for the industry to keep it up to date. Old recording tools do not have any commercial value or demand in current market scenario.

LIQUIDITY AND INTEREST RATE RISK

The Company is exposed to liquidity risk principally, because of lending and investment for periods which may differ from those of its funding sources. Management team actively manages asset liability positions in accordance with the overall guidelines laid down by various regulators. The Company may be impacted by volatility in interest rates in India which could cause its margins to decline and profitability to shrink. The success of the Companys business depends significantly on interest income from its operations. It is exposed to interest rate risk, both as a result of lending at fixed interest rates and for reset periods which may differ from those of its funding sources. Interest rates are highly sensitive to many factors beyond the Companys control, including the monetary policies of the RBI, deregulation of the financial sector in India, domestic and international economic and political conditions and, inflation. As a result, interest rates in India have historically experienced a relatively high degree of volatility.

The Company seeks to match its interest rate positions of assets and liabilities to minimize interest rate risk. However, there can be no assurance that significant interest rate movements will not have an adverse effect on its financial position.

CYBER SECURITY RISK

In the last few years, technology has evolved manifold and so have the risks attached to it. The proliferation of business data beyond data centres to the cloud, social media and digital platforms for B2B and B2C connect are impacting cyber security. In addition to data loss, cyber-attacks can impact business operations, machinery and human assets, and result in legal and regulatory liabilities.

DIGITAL ADVANCEMENT RISKS

Digital technologies are changing the way companies operate while creating new opportunities to improve efficiencies, and enhance customer experience and employee involvement. Adoption of such technologies requires management initiative, employee commitment and cultural transformation.

HUMAN RESOURCE DEVELOPMENT

The Company recognizes that its success is deeply embedded in the success of its human capital. During 2021-2022, the Company continued to strengthen its HR processes in line with its objective of creating an inspired workforce. The employee engagement initiatives included placing greater emphasis on learning and development, launching leadership development programme, introducing internal communication, providing opportunities to staff to seek inspirational roles through internal job postings, streamlining the Performance Management System, making the compensation structure more competitive and streamlining the performance-link rewards and incentives.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

There is no material development in Human Resources, Industrial Relations front etc. during the year under review.

KEY FINANCIAL RATIOS AND RETURN ON NET WORTH

Under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company is required to disclose significant changes (i.e. change of 25% or more as compared with the immediately previous financial year) in financial ratios, including debtors turnover, inventory turnover, interest coverage ratio, current ratio, debt equity ratio, operating profit margin and net profit margin or sector-specific equivalent ratios, as applicable and details of any change in Return on Net Worth as compared with the immediately previous financial year along with a detailed explanation thereof.

Financial ratios shows significant changes i.e. a variation of 25% or more compared with the immediately preceding financial year, have been disclosed in Note No. 37 of Notes to Accounts.

OTHER DISCLOSURES IN TERM OF SCHEDULE V OF SEBI LODR REGULATIONS, 2015

Disclosures in regard to following aspects, have been provided in Notes to Account, forming part of Annual Report –

a. Debtors Turnover

b. Inventory Turnover

c. Interest Coverage Ratio

d. Current Ratio

e. Debt Equity Ratio

f. Operating Profit Margin (%)

g. Net Profit Margin (%) or sector-specific equivalent ratios, as applicable.

h. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof.]

CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

The provision of the Companies Act, 2013 relating to CSR Initiatives are not applicable to the Company.

COMPLIANCE

The Compliance function of the Company is responsible for independently ensuring that operating and business units comply with regulatory and internal guidelines. The Compliance Department of the Company continues to play a pivotal role in ensuring implementation of compliance functions in accordance with the directives issued by regulators, the Companys Board of Directors and the Companys Compliance Policy. The Audit Committee of the Board reviews the performance of the Compliance Department and the status of compliance with regulatory/internal guidelines on a periodic basis.

Mumbai, September 1, 2026

Registered Office:

Unit No. 323 & 324, 3rd Floor, Bldg. No. 9

Laxmi Plaza, New Link Road

Andheri (W), Mumbai – 400 053

By order of the Board

For JMD Ventures Limited

S/d-

Kailash Prasad Purohit

DIN: 01319534

Chairman & Managing Director