PRESS RELEASE

For Immediate Release

JM Financial announces audited results for the quarter and year ended March 31, 2009

Mumbai, June 29, 2009: The Board of Directors of JM Financial Limited, at its meeting held today, considered and approved the audited financial results for the year ended March 31, 2009.

Consolidated Results – Key Highlights:

FY 09 – Q4 compared to FY 08 – Q4

Ø       Total income at Rs. ­­ 75.42 crore compared to Rs. 209.19 crore

Ø       Net operating profit before tax stood at Rs. 96.03 crore compared to Rs. 124.11 crore.

Ø       Net profit after tax, minority interest and share of associates, at Rs. 85.59 crore, after net provision of Rs. 136.72 crore (provision for quarter of December 2008 Rs. 221.90 crore less reversal in this quarter of Rs. 85.18 crore) for the diminution in the value of listed shares, compared to Net profit after tax, minority interest and share of associates at Rs 100.07 crore.

FY 09 compared to FY 08

Ø       Total income at Rs. 425.83 crore compared to Rs. 742.29 crore.

Ø       Net operating loss before tax stood at Rs. 78.49 crore (after net provision of Rs. 136.72 crore for diminution in the value of investments) compared to profit of Rs. 1,789.75 crore .

Ø       Net loss after tax, minority interest and share of associates, at Rs. 105.21crore, as compared to Net profit after tax, minority interest and share of associates at Rs. 1307.07 crore.

The Board of Directors of the Company has recommended a dividend of Re. 0.20 per share subject to the approval of the shareholders. This will entail a payment of Rupees fifteen crore (exclusive of dividend tax).

The global financial crisis severely impacted the Indian economy resulting in volatile markets and the disruption of international capital inflows. The continued market meltdown has also impacted the Company and its businesses. 

However, with a strong, stable and reform–oriented government power in place and relatively strong GDP growth at 6.2% for FY 08, one can expect better opportunities for growth in the economy. With a thrust on infrastructure spending, high domestic consumption and continued competitiveness of Indian companies globally, the Indian capital markets have begun to bounce back and stabilize recently.

As a result of a substantial upturn in the stock markets since early 2009, the Company and its subsidiaries have reduced the provision for diminution in the value of investments to the extent by Rs. 85.18 crore during the quarter and hence the net provision outstanding as at March 31, 2009 is Rs.136.72 crore.

Business Update

Investment banking and securities:

Capital market activities remained adversely impacted due to steep correction in the global and Indian equity markets during the year.

The mergers and acquisitions pipeline continues to remain strong with several mandated transactions. However, given the state of equity capital market, uncertainty continued on timing of the transactions.

Securities funding and fund based activities:                                    

The activity of IPO financing was adversely impacted due to the absence of the primary market issuances. Despite great amount of adversity in the markets, our margin funding book as well as net interest income of NBFC has grown during the year.

Continuing our conservative approach the NBFC has made provision on standard assets although the loans have been serviced regularly.

While financing continues to be a challenge, we believe that distressed assets will offer several interesting opportunities in our asset reconstruction business.

Alternative Asset Management:

The combined AUM / AUA of the private equity fund, real estate fund, and special situations group stands at around Rs. 3,300 crore. The private equity fund made two new investments in offshore supply services and financial services during FY09. The real estate funds have been cautious about the pricing and uptake of various asset classes primarily due to the excess supply of undifferentiated projects and the potential slowdown in speculative demand. Given the cautions outlook, the real estate fund has not made any fresh investment commitment or disbursals during FY09.

Asset Management:

JM Financial Asset Management (AMC), which is the Asset Management Company of JM Financial Mutual Fund now has 81 branches all over India. The performance of the schemes of JM Financial Mutual Fund has been affected due to the fall in the markets. 

The AUM as on June 27, 2009 stood at Rs. 6,819.56 crore, comprising of AUM under Equity schemes at Rs. 2,614.06 crore and under Debt Schemes at Rs. 4,205.50 crore.

-ends-

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries, joint ventures and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.