JM FINANCIAL PRODUCTS LIMITED - Bombay Stock Exchange

Your Company continued its activity of capital market funding, catering to IPO Funding, Security Backed Financing - Loan
against Shares / Margin Funding (LAS), Mutual Fund Financing, ESOP Financing and Sponsor Financing.
Amidst the unfavorable conditions, your Company has consciously made efforts to maintain and grow its funding book and
level of business activities. The funding book of your Company has grown from Rs. 1,987 crore as on March 31, 2011 to Rs.
2,002 crore as on March 31, 2012. The Company had focused on ESOP funding to spread the business across various
products. Your Company is also exploring new opportunities such as funding against commodities. Number of clients has
also grown on a year on year basis.
The level of activities in the IPO funding was subdued due to the low subscription in the equity issuances. Though some
interest was seen in debt issues, the same could not create a major interest for HNI investors thereby affecting the business
of your Company. During the year under review your Company focused on financing retail clients and the number of retail
clients doubled by the end of the year.
CRISIL re-affirmed the “CRISIL A1+” (highest grading) rating for the short-term debt program of the Company which
indicates very strong degree of safety with regard to timely payment of its financial obligations. During the year, the
Company also received “CRISIL AA- / Stable” rating for long term NCD issuance, which indicates high degree of safety with
regard to timely payment of interest and principal on the instrument. Both instruments are considered to carry very low credit
risk.
PUBLIC DEPOSITS:
Your Company has neither accepted nor renewed any public deposits during the year under review.
SUBSIDIARIES:
Consequent upon the restructuring and consolidation of the Group’s businesses, JM Financial Securities Private Limited
ceased to be a subsidiary of your Company with effect from January 9, 2012.
The audited statement of accounts for the year ended March 31, 2012 together with the reports of the Directors and
Auditors thereon of JM Financial Services Private Limited, JM Financial Commtrade Limited, JM Financial Insurance
Broking Private Limited and JM Financial GILTS Limited, the subsidiaries of your Company are annexed pursuant to Section
212 of the Companies Act, 1956.
DIRECTORS:
In accordance with Article 135 of the Articles of Association of the Company read with the provisions of the Companies Act,
1956, Mr. M R Umarji and Mr. E A Kshirsagar, Directors of your Company, retire by rotation at the forthcoming Annual
General Meeting and being eligible, offers themselves for re-appointment.
Pursuant to the provisions of Section 260 of the Companies Act, 1956, read with Article 122, Mr. Darius E Udwadia on the
recommendation made by the Nomination Committee of the Board was appointed as an additional director of your Company
on May 14, 2012. He holds the office as a Director up to the date of the forthcoming Annual General Meeting. Your
Company has received a notice in writing from a member proposing his candidature for the office of Director.
The Board of Directors of your Company, at its meeting held on May 14, 2012, has decided to appoint Mr. V P Shetty as the
Executive Chairman of your Company with effect from June 1, 2012. As the members are aware, Mr. Shetty is currently a
non-executive Chairman of your Company.
DIRECTORS’ RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Section 217 (2AA) of the Companies Act, 1956, your Directors state and confirm that:
o in the preparation of the annual accounts, the applicable accounting standards have been followed;
o they have selected such accounting policies and applied them consistently and made judgments and estimates
that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end
of the financial year and of the profit or loss of the Company for that period;
o they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with
the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
o they have prepared the annual accounts on a going concern basis.
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