Jumbo Finance Ltd Directors Report.

To the Members,

Your directors have pleasure in presenting Thirty Seventh (37th) Annual Report together with the Audited Statement of Accounts of the Company for the year ended 31st March, 2021.

FINANCIAL RESULTS:

(In Lakhs)

Particulars 31st March, 2021 31st March, 2020
Income from Operations & Other income 2120.34 174.74
Less: Expenses 2118.07 494.24
Net Profit / (Loss) before Tax 2.26 (319.50)
Less: Taxes, Prior years adjustments, Deferred tax etc. 34.41 2.14
Net Profit / (loss) after tax 577.39 (1310.82)
Add / Less Profit/(Loss) Brought forward (1543430) 24188376
Add/Less: Profit/(Loss) for the year after adjusting for appropriations & WDV of Fixed Assets (2571615) (25731806)
: Balance carried to Balance Sheet (4115046) (1543430)

OPERATIONS:

During the year under review, the Company has recorded a total income of 2120.34 Lakhs as compared to 174.74 Lakhs for the previous year and Net Profit after tax of 577.39 Lakhs for the year as compared to the Loss of 1310.82 Lakhs in the previous year.

DIVIDEND:

In order to plough back the entire profits after tax into the business of the company, no dividend was recommended by the board of directors.

SHARE CAPITAL:

The paid up equity capital as on March 31, 2021 was 487.68 Lakhs during the year under review.

DEPOSITS:

Your Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014

PARTICULARS OF LOANS. GUARANTEES OR INVESTMENTS.

The company has not given any loans or guarantees covered under the provisions of section 186 of the Companies Act, 2013. The details of the investments made by company is given in the notes to the financial statements.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS OF THE COMPANY AND ITS FUTURE OPERATIONS:

There are no significant material orders passed by the Regulators or Courts or Tribunals which would impact the going concern status or future operations of the Company.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The scope and authority of the Internal Audit function is defined in the Internal Audit Manual. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee of the Board & to the Chairman of the Company. The Internal Auditor appointed by the Company viz. M/s. S. K. Lahoti & Co., monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company. The Audit Committee of the Board, addresses significant issues raised by both the Internal Auditors and Statutory Auditors.

DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP):

As per the provisions of the Companies Act, 2013, Shri. Jagdish Prasad Khandelwl (DIN 00457078) retires by rotation at the ensuing Annual General Meeting and being eligible, has offered himself for re-appointment. The Board recommends his re-appointment.

The necessary resolution for the appointment of Shri. Jagdish Prasad Khandelwl (DIN 00457078) is also being placed before the members for their consideration at the forthcoming Annual General Meeting.

The Board on recommendation of Nomination and Remuneration Committee is pleased to appoint Smt. Smriti Ranka (DIN: 00338974) as the Managing Director of the Company, for a period of five years from 13" August, 2021 to 12th August, 2026.

As per the provisions of the Companies Act, 2013, Independent Directors are required to be appointed for a term of five consecutive years and shall not be liable to retire by rotation. Accordingly, Shri. Prem Chand Parakh (DIN 07238854) and Shri. Dhananjay Vithal Pednekar (DIN 07258313) is proposed to be appointed as Independent director for a term of five years from 13th August, 2021 to 12th August, 2026.

BOARD EVALUATION:

Pursuant to the provisions of the Companies Act, 2013 and Listing Regulations, 2015, the Board has carried out an evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Nomination & Remuneration Committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.

DECLARATION BY INDEPENDENT DIRECTORS;

The Independent Directors have submitted their disclosures to the Boar t a e requirements as stipulated in Section 149(6) of the C ompanies Act, themselves to be appointed as Independent Directors under the provisions 0 e Act. 2013 and SEBI Listing Regulations and the relevant rules. In the opinion of the Boar y fulfill the conditions of independence as specified in the Act and Rules ma et ereun er an are independent of the Management.

REMUNERATION poucY:

The Board has. on the recommendation of the Nomination & Remuneration Committee, framed a policy for selection and appointment of Directors, Senior Management and their remuneration. The Remuneration Policy is stated in the Corporate Governance Report.

MEETINGS:

During the year. 5 (Five) Board Meetings and 4 (four) Audit Committee Meetings were convened and held. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act. 2013 except the gap between last board meeting and Audit Committee meeting dated February 14, 2020 for financial year 2019-20 and the first board meeting and Audit Committee meeting dated July 31, 2020 for financial year 2020-21 which was more than 120 days but in view of the extension granted by the Ministry of Corporate Affairs vide general circular no.

11/2020 dated March 24, 2020 and by the Securities and Exchange Board of India vide circular no. SEBI/HO/CFD/CMD1/CIR/P/2020/38 dated March 19, 2020 and circular no. SEB1/HO/CFD/CMD1/CIR/P/2020/110 dated June 26, 2020, the same is duly complied.

CONSERVATION OF ENERGY:

The Companys operations are not energy-intensive and as such involve low energy consumption. However, adequate measures have been taken to conserve the consumption of energy.

TECHNOLOGY ABSORPTION:

Operations of the company do not involve any kind of special technology and there was no expenditure on research & development during this financial year. However, your companv continues to upgrade its technology (computer technology and telecom infrastructure) in ensuring that it is connected with its clients across the globe.

FOREIGN EXCHANGE EARNINGS AND OUT-GO;

During the period under review, there was no foreign exchange earnings or out flow HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS.

Your Company continues to take new initiatives to further alion its hr growing needs of its business. People development continues lo be a key for Company. ^ cus area

DIRECTOR RESPONSIBILITY STATEMENT:

In terms of Section 134(3)(c) and 134 (5)of the Companies Act, 2013, the directors would like to state that:

1) In the preparation of the annual accounts, the applicable accounting standards have been followed.

n) I he directors have selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent so as to give a true and fair view of the state ot affairs of the Company at the end of the financial year and of the profit or loss of the C ompany for the year under review.

iii) 1 he directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and tor preventing and detecting fraud and other irregularities.

iv) The directors have prepared the annual accounts on a going concern basis.

v) The directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

vi) The directors had devised proper system to ensure compliance with the provisions of all applicable laws and that such system were adequate and operating effectively.

RELATED PARTY TRANSACTIONS:

All related party transactions that were entered into during the financial year were on arms length basis and were in the ordinary course of the business. The disclosure of material Related Party Transaction in FORM AOC-2 is given in "Annexure A" to this report.

SUBSIDIARY COMPANIES;

The Company does not have any subsidiary.

VIGIL MECHANISM / WHISTLE BLOWER POLICY:

The Company has a vigil mechanism named Fraud and Risk Management Policy to deal with instance of fraud and mismanagement, if any.

In staying true to our values of Strength, Performance and Passion and in line with our vision of being one of the most respected companies in India, the Company is committed to the high standards of Corporate Governance and stakeholder responsibility.

The Company has a Fraud Risk and Management Policy to deal with instances of fraud and mismanagement, if any. The FRM Policy ensures that strict confidentiality is maintained whilst dealing with concerns and also that no discrimination will be meted out to any person for a genuinely raised concern.

A high level Committee has been constituted which looks into the complaints raised. The Committee reports to the Audit Committee and the Board.

PREVENTION OF INSIDER TRADING:

The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading in securities by the Directors and designated employees of the Company. The Code requires pre-clearance for dealing in the Companys shares and prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the I rading Window is closed. The Board is responsible for implementation of the Code. All the Board Directors and the designated employees have confirmed compliance with the Code.

CODE OF CONDUCT;

The Board of Directors has approved a Code of Conduct which is applicable to the Members of the Board in the course of day to day business operations of the company. The Company believes in "Zero Tolerance" against bribery, corruption and unethical dealings / behaviors of any form and the Board has laid down the directives to counter such acts. The code laid down by the Board is known as "code of business conduct" which forms an Appendix to the Code. The Code has been posted on the Companys website www.iumbofinance.co.in

The Code lays down the standard procedure of business conduct which is expected to be followed by the Directors and the designated employees in their business dealings and in particular on matters relating to integrity in the work place, in business practices and in dealing with stakeholders. The Code gives guidance through examples on the expected behavior from an employee in a given situation and the reporting structure.

All the Board Members have confirmed compliance with the Code.

FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS:

Pursuant to Regulation 25 of the Listing Regulations, 2015, the Company has a familiarization programme for Independent Directors with regard to their role, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company etc. The Board Members are provided with all necessary documents/ reports and internal policies to enable them to familiarize with the Companys procedures and practices. Periodic presentations are made at the Board and Board constituted Committee Meetings pertaining to business and performance updates of the Company, global business environment, business strategies and risks involved. Directors attend training programmes/conferences on relevant subject matters and keep themselves abreast of the latest corporate, regulatory and industry developments.

ST ATI JTORYAUDITORS:

At the Companys 36th Annual General Meeting held on 30th September, 2020, M/s. Hiren Buch Associates, Chartered Accountants (Firm Registration No. 116131W) has been appointed as the Statutory Auditor of the Company for a term of 5 years to hold office from the conclusion of the 36th Annual General Meeting until the conclusion of the 41st Annual General Meeting of the Company.

STATUTORY AUDITORS* REPORT:

There are no qualifications, reservation or adverse remark or disclaimer made by statutory auditor in his report. The observations made by the Statutory Auditors in their report for the financial year ended 31s1 March, 2021 read with the explanatory notes therein are self- explanatory and therefore, do not call for any further explanation or comments from the Board under Section 134(3) of the Companies Act, 2013.

SECRETARIAL AUDIT;

Pursuant to provisions of section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the company has appointed Pankaj & Associates, a firm of company Secretaries in practice, to undertake the Secretarial Audit of the Company. The Secretarial Audit report of the Company for the financial year ended 31st March, 2021 in the prescribed form MR-3 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed herewith as "Annexure B\

As required under section 204 (1) of the Companies Act, 2013 the Company has obtained a secretarial audit report. There are no major observations made by the Auditor in the Report except the following:

1. As per Section 101 of Companies Act, 2013 the company failed to send the notice of AGM to most of the shareholders either in writing or electronic mode.

2. As per requirement of Secretarial Standard on Board meetings (SS-1), General Meetings (SS-2) and Minutes (SS-5), the maintenance & preservation of minutes of Board & General Meetings are not strictly followed.

3. The Company does not have website updated with required information under Listing Obligations and Disclosure Requirements) Regulations, 2015.

4. Promoters 100% shareholding in the Company is not in dematerialized form in terms of Regulation 31(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

However, the company would ensure in future that all the provisions are complied with the fullest extent.

EXTRACT OF ANNUAL RETURN:

The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as "Annexure C".

PARTICULARS OF EMPLOYEES:

None of the employees of the Company draws remuneration more than the limits prescribed under the Companies Act, 2013.

REMUNERATION DETAILS PURSUANT TO COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014 AND OTHER APPLICABLE PROVISIONS:

There are no employees of the Company, drawing remuneration exceeding limits prescribed under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules. 2014.

CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION &ANALYSIS REPORTS:

The Management Discussion & Analysis Report& the Corporate Governance, which forms an integral part of this Report, are set out as separate Annexure "D" and Annexure E, together with the Certificate from the auditors of the Company regarding compliance with the requirements of Corporate Governance as stipulated in Listing Regulations.

ACKNOWLEDGEMENTS:

Your Board of Directors would like to place on record its sincere appreciation for the whole hearted support and contributions made by Auditors, Banks, Financial Institutions, Suppliers and other Business Associates towards the conduct of the operations of the Company

PLACE: MUMBAI FOR AND ON BEHALF OF THE BOARD
DATED: 13.08.2021 Sd/- Sd/-
SMT. SMRITI RANKA J. P. KHANDELWAL
MANAGING DIRECTOR DIRECTOR / CFO
DIN:00338974 DIN:00457078