Nippon Life India Asset Management Ltd Management Discussions

Management Discussion and Analysis

1. INDIAN ECONOMIC OVERVIEW

Economy: After growing robustly in previous three consecutive years (an average of >8%), economic growth moderated to 6.5% in FY25 driven by consumption (private and government) and net exports. This was in backdrop of tight domestic monetary policy, fiscal consolidation and rise in global geo-political uncertainty. On the supply side - agriculture, construction and services were the key drivers of the growth. Despite rising downside risk to global growth, the Indian economy is expected to grow at 6.3-6.5% in FY26, driven by private consumption and government spending led capital expenditure push.

Inflation: After peaking at 6.7% in FY23, CPI inflation eased to 5.4% in FY24 and moderated further to 4.6% in FY25 - which was lowest since FY20 and below RBIs projection of 4.8%. FY25 core inflation was below the 4% mark and stood at lowest level since start of the index (FY13) at an average of 3.5%. That said, headline inflation trajectory during the year was a function of food price volatility. After staying elevated at 4.9% in Q1, headline inflation eased to 4.2% in Q2, only to rise sharply to 5.6% in Q3 due to acceleration in vegetable prices. Thereafter, headline inflation eased to 3.7% in Q4 - driven down by lower food prices (seasonality) and muted fuel and core inflation.

Monetary Policy: After remaining on hold since Apr-2023, RBI started the rate cut cycle in Feb- 2025. The RBI cut the policy rate by 25 bps, keeping stance neutral in Feb-2025, however, it cut the policy rate and changed the stance to accommodative in the Apr-2025 policy. In his statement, the RBI Governor defined the accommodative stance and clearly indicated "that going forward, absent any shocks, the MPC is considering only two options - status quo or a rate cut." Further, the RBI has been undertaking proactive measures to provide liquidity since the Dec-2024 policy and has assured it would proactively take measures to ensure orderly liquidity conditions.

Fiscal Policy: FY25 saw robust gross tax collections driven by improved compliance and formalisation of the economy, while expenditure growth (including capital expenditure) was muted. The FY26 Union Budget revised downwards fiscal deficit (% of GDP) estimate for FY25 to 4.8% (BE: 4.9%). Further, for FY26, the government has budgeted lower fiscal deficit (4.4%) aided by - compression of revenue expenditure and buoyant tax receipts, while keeping capital expenditure as % of GDP intact. This is in-line with the governments medium- term glide path (FY21-26) to bring fiscal deficit below 4.5% by FY26. The Union Budget also gave medium term glide path for fiscal consolidation - to bring down Central governments debt/GDP ratio to ~50% over next five years (currently 57%).

External Sector: The Current Account Deficit in FY25 is expected to have remained muted at ~0.7% of GDP (around FY24 levels). Although the trade deficit has increased, robust net services surplus and buoyant NRI remittances are likely to keep Current Account Deficit lower. That said, muted capital flows are likely to result in Balance of Payments being marginally negative.

Outlook: Despite rising downside risk to global growth, the Indian economy is expected to grow at 6.3-6.5% in FY26, driven by private consumption and government spending led capital expenditure push. This, along with dovish monetary policy, lower crude prices, moderate inflation outlook is likely to support growth. That said, geopolitical cues (in the form tariff uncertainty and trade policies) are likely to exert downside risk to growth outlook.

2. MUTUAL FUND SECTOR Industry

Overview

The Mutual Fund Industry has been witnessing robust growth. Over the last 10 years, the assets under management (AUM) of the industry grew at a CAGR of 19% and stood at Rs.67.4 Lakh Crore as of March 2025. This rate of growth is a result of various factors including Indias high nominal GDP growth, increased financialization with investors choosing financial assets over physical assets, improved awareness levels through campaigns such as Mutual Funds Sahi Hai, the credibility of products with high transparency, liquidity, diversification, and professional management, and the digitalization of investments.

FY25, was another strong year the industry, with AUM growth at 25% YoY. This performance was driven by strong growth in Equity AUM at 29% YoY, which also led to the mix of Equity AUM increasing to 60% of total MF QAAUM. The Equity category (excluding index funds and arbitrage funds) witnessed a gross inflow of Rs.9.98 Lakh Crore and a net inflow of Rs.4.86 Lakh Crore - higher by 50%/108% on a YoY basis respectively in FY25. Highest inflows were witnessed across Sectoral/ Thematic funds, Flexi Cap funds and Mid & Small Cap funds, while Large Cap funds, Large & Mid

Cap funds and Multi Cap funds also witnessed strong flows. Monthly SIP flows touched Rs.25,926 Crore in March 2025 (up 35% YoY), while SIP AUM at Rs.13.35 Lakh Crore grew by 25% in the year. The Fixed Income category i.e. (debt + liquid), witnessed a net inflow of Rs.1.37 Lakh Crore in FY25 versus a net outflow of Rs.33k Crore in FY24. The ETF category had a net inflow of Rs.83k Crore.

Equity markets in FY25 showed a more subdued performance as compared with the prior year. The NIFTY moved up by 5% YoY, while the NIFTY Mid and Small Cap indices rose by 8% and 5%, respectively. The RBI cut the repo-rate by 25 bps to 6.25%, while the 10 Year G-Sec yield moderated by 47 bps YoY to 6.58%.

Participation from Individual Investors

Individual investor participation continued to be robust. The number of unique MF investors increased from 4.46 Crore in FY24 to 5.42 Crore in FY25 i.e., a growth of 22% YoY. The industry also added 5.67 Crore folios in the year to reach a total of 23.45 Crore folios, as compared to 3.21 Crore folio addition in the previous year. The interest in ETFs continued to be strong with an addition of 0.82 Crore folios.

Asset Mix

Equity AUM, as a proportion of total AUM, rose from 58% to 60% in the year aided both by market appreciation as well as high net flows. The share of fixed income schemes declined, with share of debt schemes declining from 19% to 18% and liquid schemes declining from 11% to 10%. The share of ETFs declined marginally YoY to 12.0% of AUM despite high growth, owing to higher growth in Equity AUM.

Equity

A high-risk fund that invests primarily in equity securities with the goal of capital appreciation over the medium to long term. The returns are linked to the performance of the capital markets. There are different types of equity funds - diversified funds, sector-specific funds, and index-based funds. In addition to equity funds, balanced/hybrid funds invest both in equity and debt instruments and strive to provide growth as well as regular income. Equity AUM contributed 60% to the total industry assets and saw a 29% increase in the year.

Debt Funds

Debt Funds/Fixed Income Funds invest predominantly in debt and money market instruments, i.e. corporate bonds, debentures, Government Securities, Certificates of Deposits, Commercial Papers, etc. Debt AUM made up 18% of total industry assets and increased by 18% in the year.

Liquid Funds

Also known as Money Market Funds, these funds invest in highly liquid money market instruments and provide easy liquidity. Liquid funds are short- tenure investments and are typically used by corporate houses, institutional investors, and high net worth individuals to deploy surplus liquidity. Liquid AUM contributed 10% to total industry assets and saw an increase of 17% YoY.

ETF

Exchange Traded Funds track an index, a commodity, or a basket of assets as closely as possible but trade like shares on the stock exchanges. ETF AUM contributed 12% to total industry assets and grew by 21% YoY.

Top 10 AMCs AUM Trends

The Indian MF industry has over 40 AMCs and that include private sector companies, joint ventures with foreign entities and NBFC/bank- sponsored AMCs.

The industry remains largely consolidated in the top 10 AMCs, which managed Rs.51.8 Lakh Crore as of Q4 FY25, which accounted for ~77% of the industry AUM.

Geographic Mix

Historically, AUM has been concentrated in the Top 30 (T-30) cities due to presence of institutional investors as they have a higher concentration of assets in non-equity schemes. The T-30 cities held the majority of MF assets with a share of 82%, while the B-30 cities, or beyond the T-30, held 18% of the assets as of March 2025. AUM from B-30 has a higher composition of equity assets at 75% compared to T-30 cities at 43%.

Investor-wise break-up of AUM

The industrys investor base can be broadly categorized as Retail, High Net-Worth Individuals (HNI) and Institutional. In FY25, Retail and HNI segments grew by 20% and 22%, respectively, while Institutional AUM also grew 22%. Institutional accounts for 40% of the industry AUM, whereas HNI AUM is at 34% and Retail AUM is at 27%. Given the higher growth being witnessed in the Retail and HNI categories in recent years, the share of Institutional AUM has decreased from 46% in FY21 to 40% in FY25.

Consistent Growth in SIP Inflows

Systematic Investment Plan or SIP, as it is commonly known, is an investment plan offered under Mutual Funds where a fixed amount can be invested in a scheme periodically, at fixed interval, like, once in a month.

SIP inflows remained strong through the year. Quarterly SIP flows for the industry have been on an increasing trend throughout FY25, barring to some extent the last quarter. This indicates the mature behaviour and the long-term investment horizon of individual investors and realisation that this is a sustainable mode for wealth creation. The total gross inflows from SIPs were Rs.2.89 Lakh Crore for the year which was a growth of 45% YoY. The breadth of the investor base continued to expand, with the total number of SIP accounts at 10.50 Crore as on March 31, 2025, with an addition of 1.66 Crore accounts during the year. The gradual increase in participation from the retail segment, and the rising prominence of SIPs bring in a sense of stability to industry inflows.

Outlook

As per the World Economic Outlook Growth Projections by the International Monetary Fund, the Indian economy is expected to have among the highest growth rates among both developed and emerging economies in the next 2 years. Indian economy is expected to grow at 6.36.5% in FY26, driven by private consumption and government spending led capital expenditure push and this is despite rising downside risk to global growth. This, along with dovish monetary policy, lower crude prices, moderate inflation outlook is likely to support growth. Geopolitical cues in form tariff uncertainty and trade policies are likely to exert downside risk to growth outlook.

Given the current low levels of penetration, the Indian mutual fund industry has a long growth runaway ahead. Indias mutual fund penetration (AUM to GDP) is at ~20%, which is much lower than the world average of over 60%. However, there are some key drivers that are likely to unlock the fundamental and sustained growth potential of the industry, and these include Indias favourable demographic dividend, the formalisation of the economy, growing financial inclusion, greater disposable income and investable surplus, increasing financial savings, higher investor awareness, investor-friendly regulations, wide range of transparent and investor-friendly products, ease of investing, tax incentives, expanding distribution coverage, digitalisation, and perception of mutual funds as long-term wealth creators.

The mutual fund industry, with its several advantages, such as the ability to offer professionally managed, diversified portfolios, with high levels of transparency, liquidity and relatively low cost stands to continue to benefit from the structural growth opportunities over the long term.

3. ALTERNATIVE INVESTMENT FUNDS

Alternative Investment Funds (AIFs) are pooled investment vehicles that collect funds from sophisticated investors (both domestic and international) to make investments in nontraditional investment assets (in accordance with a defined investment policy) for the benefit of its investors. The minimum investment amount by any investor in an AIF is Rs. 1 Crore.

SEBI has identified three categories of AIFs based on investments as below:

Category I: Funds that have positive spillover effects on the economy for which certain incentives/concessions might be considered, e.g., venture capital funds, angel funds, SME funds, social venture funds, infrastructure funds, etc.

Category II: Predominantly includes funds that invest in unlisted securities and includes funds like PE/VC funds, Private Debt funds, etc., and represent the largest AIF category.

Category III: Include funds that deploy diverse or complex trading strategies, including the use of debt/leverage through investment in listed or unlisted securities, e.g., hedge funds or funds that invest with a view to earn short-term returns comprise a large part of this segment.

As of March 31, 2025, the industry has raised commitment exceeding Rs.13.4 Lakh Crore across more than 1,550 registered AIFs. Category II AIFs dominate the industry, representing approximately 75% of commitments raised.

Over the past decade, capital commitments within the industry have exhibited a CAGR of 50%, fuelled by the active participation of high- net-worth individuals, institutional investors, and FPIs. Furthermore, regulatory advancements, favourable tax structures, and the advent of specialized fund strategies - spanning venture capital, private equity, real estate, and credit funds - have contributed significantly to this success.

A noteworthy regulatory milestone in the Union Budget 2025 is the reclassification of investments made by Category Rs.and II AIFs as "capital assets." This ensures that income derived from the transfer of securities is now subject to taxation as capital gains, rather than as business income. This amendment resolves long-standing ambiguities, aligns the taxation framework for AIFs with international standards, and provides enhanced clarity to stakeholders.

4. PORTFOLIO MANAGEMENT SERVICES

Portfolio Management Services (PMS) is an investment management service offered by asset management companies, brokerage houses and wealth managers to wealthy investors, such as HNIs and institutions. It is one of the most versatile investment vehicles and is best suited for concentrated, benchmark- agnostic, bottom-up stock picking.

PMS is broadly divided into discretionary and non-discretionary/advisory. The PMS industry AUM as of March 2025 was 37.80 Lakh Crore in total.

5. GIFT CITY

Gujarat International Financial Tec-City (GIFT City) is Indias flagship financial and IT services hub, envisioned as a world-class International Financial Services Centre (IFSC) to bring offshore financial activities onshore and position India as a global financial powerhouse. Strategically located between Ahmedabad and Gandhinagar, it integrates cutting-edge infrastructure with regulatory efficiency to attract international investors and financial institutions.

GIFT City offers significant advantages, including tax incentives, simplified regulations under IFSCA, cost-effective fund operations, and the ability to manage both domestic and international portfolios. This strategic gateway not only enhances global competitiveness but also supports Indias vision of becoming a leading international financial hub.

6. COMPANY OVERVIEW

True Blue Asset Management Player

Nippon Life India Asset Management Limited (NAM India, or the Company) is one of the largest asset management companies in India, with a track record of over 30 years, and a total AUM of Rs.6.54 Lakh Crore as on March 31, 2025. The Company is involved in managing:

(i) Mutual funds including Exchange Traded Funds (ETFs)

(ii) Managed accounts, including Portfolio Management Services (PMS), Alternative Investment Funds (AIF) and pension funds

(iii) Offshore funds and advisory mandates

(iv) Funds via GIFT City

The Company is promoted by Nippon Life Insurance Company, one of the leading private life insurers in Japan, with assets of over JPY 97 trillion as on March 31, 2025. The following table illustrates the closing AUM of the Companys respective offerings:

Mutual Fund

Nippon India Mutual Fund (NIMF) offers a well- rounded portfolio of products, i.e., Equity, Debt, Liquid as well as ETF for investors to meet varying requirements. The Company started its mutual fund operations in 1995. It constantly endeavours to launch innovative products and customer service initiatives to increase value to investors. As of Q4 FY25, the Company managed QAAUM of Rs.5.57 Lakh Crore. With 3.25 Crore folios, the Company has the largest base of investors in the industry. As of March 31, 2025, NIMF managed 105 schemes, of which 92 were open-ended (44 active and 48 passive).

Business Strengths

Strong Base of Retail investors and Assets

NIMF has been known for its strength in the retail segment. Over the last three decades, the Company has meticulously built its assets in this category and created long-term wealth for its retail investors. It will continue to enhance these offerings to further expand its investor base. NIMFs retail AAUM contribution to total AAUM is amongst the highest in the industry at 29%. Also, the Company has the largest base of retail investors in the industry, with retail folios crossing 3.11 Crore as on March 31, 2025. The Company plans to ramp up its efforts in this segment with a mix of on-ground presence in smaller locations and evolving digital assets to improve experience and to on-board new investors.

Higher Share of AUM from B-30 Locations

NIMF continues to be amongst the leaders in the Beyond Top 30 cities segment (B-30 locations). These locations have a higher share of equity assets compared to non-equity assets. This segment contributed an AUM of Rs.1.11 Lakh Crore, with a share of 20.0% of total assets, which is higher than the industry average. In smaller locations, there is a need for face-to-face communication to get new investors into the MF industry. NIMF has one of the largest on-ground presences - 265 locations pan India - and we endeavour to provide an all-round interface for our online and offline investors.

Long Term and Stable Systematic (SIP and STP) Inflows

SIP and STP are among the strongest pillars of the industry, and in addition to providing long-term sustainable inflows, they also instil a savings habit among investors and ensure steady disciplined investing rather than ad-hoc investment. NIMF received Rs.36,187 Crore in inflows from systematic transactions in FY25, up 72% YoY. In the month of March-2025, NIMF received Rs.3,181 Crore in inflows from systematic transactions which is a recurring monthly inflow, resulting in annualised inflows of ~1 38,200 Crore. The book had 105.1 Lakh SIP and STP folios that have grown by 34% in FY25.

Leadership Position in the Passive Category

The Company offers the most diverse range of passive products in the industry with 24 ETF schemes and 21 Index funds. Passive AUM crossed Rs.1.50 Lakh Crore during the year. The ETF segment had assets of Rs.1.54 Lakh Crore and has the largest volume market share in the Industry. Approximately, 53% of the exchange volumes are contributed by NIMFs ETF schemes (as of Q4 FY25). With 1.44 Crore folios, NIMF held 53% of the industrys folio market share (Q4 FY25) and added about 30 Lakh folios in FY25. There has been a consistent participation of HNI segment in passive products, indicating greater adoption by an evolved class of investors.

De-risked Distribution Model

Mutual Fund Distributors (MFDs), foreign banks, Indian private and public sector banks, national distributors, and digital platforms make up the Companys multichannel distribution network. On March 31, 2025, the Company had more than 1,14,100 empanelled distributors in India, among the highest in the industry. NIMF is also far less reliant on the banking channel versus most other large AMCs.

Making Deeper In-roads into India

Currently, NAM India has a pan-India network of 265 locations, which is amongst the highest in the industry. The Company continues to focus on B-30 cities, as assets from smaller locations have higher persistency and are more profitable.

Managed Accounts AIF

As of March 31, 2025, Nippon India AIF has demonstrated exemplary performance, with total commitments since inception across all asset classes reaching ~1 7,400 Crore. FY25 witnessed a record high in commitments, with fresh inflows amounting to ~1 1,300 Crore, a 2.2x growth compared to the previous year, reflecting the steadfast confidence of investors in our capabilities.

Key highlights of FY25:

• Nippon India Equity Opportunities Series

(Category III AIF - Long-Only Equity)

- Successfully introduced the 9th and 10th Equity Schemes, collectively raising commitments amounting to ~1 900 Crore year-to-date.

- Fundraising efforts were enhanced through expanded direct channels and distributor partnerships. Regular outreach via investor calls and webinars fostered strong engagement.

• Nippon India Digital Innovation Fund (NIDI,

Category II AIF - Tech/vC)

- NIDI Scheme 1: Portfolio construction is complete, with ~92% of the fund size allocated across 14 diversified funds, providing access to ~378 start-ups. NIDI 1 maintained a top-quartile position among 24 global Fund of Funds, as per Preqin benchmarking.

- NIDI Scheme 2A: NIDI 2A was successfully launched, specializing in direct investments in "Multi Manager Winners" of NIDI Scheme 1 and has achieved its first closure, with an equal focus on Indian and Japanese investors. Meanwhile, preparations for NIDI 2B are underway, aimed at investing in early-stage Venture Capital Funds under our Gift City branch.

• Nippon India Credit Opportunities AIF

Scheme 1 (Category II AIF - Credit)

- Fund has achieved total commitments of ~1 570 Crore and has successfully executed over 11 deals so far with a strong performance track record.

• Others

- AIF Closing AUM grew by ~11% YoY.

- Additionally, we have concluded the exit of our first Real Estate Scheme exclusively for Japanese investors with commendable investment performance.

- Our continued efforts to expand expertise and resources across all functions, particularly within our investment team, further underpin our success.

Active Fundraising Initiatives

Currently, Nippon India AIF is actively raising funds across the following schemes:

• Nippon India Equity Opportunity AIF Scheme 9 and 10: Category III AIF - Long-Only Equity

• Nippon India Credit Opportunities AIF Scheme 1: Category II AIF - Credit

• Nippon India Digital Innovation Fund 2A: Category II AIF - Direct Tech/VC

PMS

The Company provides portfolio management services to high-net-worth individuals and institutional investors. It is one of the few AMCs in India who have won and managed various prestigious government mandates. The Company continues to manage the two prestigious government mandates, i.e., Post Office Life Insurance and Rural Post Office Life Insurance. Currently, there are four equity strategies offered to investors, and all investment strategies under PMS continue to outperform their benchmarks and peer groups over the long term. As on March 31, 2025, the Companys total AUM was Rs.79,818 Crore, as part of the PMS and managed accounts business.

International Business

Offshore Funds and Advisory Mandates

The Company manages offshore funds and distribution through its subsidiary Nippon Life India Asset Management (Singapore) Pte. Ltd. (NAM Singapore) in Singapore.

The overseas subsidiary helps to cater to institutional, retail, and high net worth investors across Asia, Middle East, UK, US, Latin America, and Europe. As on March 31, 2025, NAM Singapore managed a total AUM of USD 1.78 bn as part of its international offshore managed portfolio.

NAM Singapore serves the requirement of overseas retail, institutional and high-net worth investors who are keen to invest into India, by offering both the Equity and the Fixed Income offerings investing into India.

The Company also acts as an Investment Advisor for India-focused equity and fixed income funds in Japan and Korea. Further, as on March 31, 2025, the Company had a total AUM of USD 233 mn as international advisory mandates.

NAM Singapore acts as an investment manager for the fixed-income fund Xtrackers India Government Bond Fund, which was launched in collaboration with Xtrackers (DWS)- one of the largest European AMCs.

Key highlights of FY25:

• New Fund Launch in the India Mid and Small Cap space: Nippon India Small & Mid-cap Equities Fund.

• Nissay Asset Management Corporation, Japan launched a retail-centric fund in Japan, feeding into the above Nippon India Small & Mid-cap Equities Fund.

• Added new geographies and investors in Japan, Asia ex-Japan, Europe, and Latin America to our distribution network.

• Able to garner substantial and meaningful flows into our UCITS Equity products.

• Managed AUM grew 13% YoY.

GIFT City

In an endeavour to evolve into a diversified investment manager offering products across various asset classes and delivering value to our investors, we hold the license under the category of Registered FME (Non-Retail) to set up and manage AIFs in Gujarat International Finance Tec-City (GIFT City).

Key highlights of FY25:

• During Q4 FY25, we launched our first product under GIFT, namely Nippon India Large Cap Fund Gift (an open-ended, Category-III AIF IFSCA), which is a feeder fund into Nippon India Large Cap fund, 5th largest large cap mutual fund in India.

• Fundraising underway for Nippon India Nifty 50 Bees GIFT (Fund). The Fund is a feeder fund into Nippon India ETF Nifty 50 Bees, which is the oldest and first ETF in India investing in the top 50 companies in India on the basis of market cap. The fund was launched primarily for Japanese investors to access India markets. As of March 2025, the Fund had generated an AUM of $8.5 Mn.

• Preparations are underway for setting up of a Long Short Equity Fund and our second Fund of fund VC strategy, which will invest in India- focused venture capital funds. This fund is a follow-on fund based on the success of the first fund launched in 2020 namely, Nippon India Digital Innovation AIF - Scheme 1 which was a SEBI registered CAT II AIF scheme.

7. OPPORTUNITIES AND THREATS Opportunities

• Under-penetration of mutual funds in India

• Ongoing financialisation of savings in India

• Increasing per capita GDP

• Increase in investors for SIPs

• Larger allocation by informed investors towards passive products

• Rise in flows from smaller cities/towns

• A strong owned distribution network with extensive reach across India

• Deepening digital channel distribution contributing to disintermediation and de- risking of sales and distribution

• Leveraging Nippon Life Insurance Japans global network for international tie-ups and partnerships

• New frontiers of growth in emerging areas of business such as AIF and international markets

• New avenues for growth including Specialized Investment Fund and GIFT City

Threats

• Impact of possible higher inflation on household savings and corporate earnings

• Rise in the culture of direct investing may have a short-term impact on equity flows

• Intense competition amongst MFs to garner higher AUMs can lead to increase in commissions, and consequently impact revenue

• Impact of regulatory intervention on fees, charges, reduction of exit loads

• Geopolitical risks

8. FINANCIAL PERFORMANCE

The financial statements of the Company for the year ended March 31, 2025, have been prepared in compliance with the Companies Act, 2013 and Indian Accounting Standards, Rules 2015. The Company has adopted Indian Accounting Standards (Ind AS) - IFRS Converged Standards.

Consolidated Financial Performance Revenue

The Companys consolidated total income stood at Rs.2,521 Crore compared to Rs.2,037 Crore in the previous year. Other income stood at Rs.290 Crore compared to Rs.394 Crore in the previous year.

Expenditure

Total consolidated total expenditure for the year increased by 21%, to Rs.826 Crore, as against Rs.685 Crore in the previous year. Fee and Commission expenses for the year amounted to Rs.72 Crore as against Rs.62 Crore in the previous year - a increase of 16%. Employee benefit expenses for the year were Rs.429 Crore as against Rs.336 Crore in the previous year, up by 28%.

Depreciation for the year recorded a 5% decrease to Rs.31 Crore, as against Rs.29 Crore in the previous year. Other expenses for the year were Rs.288 Crore as against Rs.252 Crore in the previous year - an increase of 15%. Profit for the year stood at Rs.1,286 Crore as against Rs.1,107 Crore in the previous year - a increase of 16%. Total Comprehensive Income for the year saw a 16% increase and stood at Rs.1,282 Crore as against Rs.1,106 Crore in the previous year.

Utilisation of IPO Proceeds

As part of the IPO conducted in October 2017, NAM India had raised Rs.617 Crore from fresh issue of equity shares. These funds were to be utilised towards various objectives, including branch network expansion, IT infrastructure, advertising, brand building, seed investment in AIF schemes and MF schemes, and inorganic growth as well as strategic initiatives.

The Company utilised Rs.396 Crore out of these proceeds by March 31, 2025, as per the specified objectives. The amounts raised, utilised till date and pending utilisation, is detailed in Note no. 39 in the Notes to the Accounts of the Consolidated Financial statements.

Due to the dynamic and evolving nature of the industry and ever- evolving digital ecosystem, NAM India has been prudent in deploying its IPO funds. Also, the opportunities for inorganic growth and strategic initiatives have been limited. Due to the exponential surge in digital transactions after the IPO, there has been a diminishing need for rapid expansion in physical presence and opening of new branch offices. Hence, the Company continues to be vigilant with regards to branch expansion in Tier 3 and Tier 4 cities.

Given the lack of inorganic openings at a reasonable cost, which could support NAM Indias current business, the Company has been constantly evaluating multiple opportunities for potential synergies. However, no actual acquisitions have come to fruition. The Company remains open to evaluate opportunities for strategic partnerships.

Against this backdrop, NAM India will continue to explore the deployment of its IPO proceeds towards value accretive and strategic initiatives in the future. However, unless the opportunities have value-accretive potential for shareholders, add to the profitability, or complement the existing businesses, it will not take risks with the available resources. NAM India will review the strategy on the deployment of these funds in the light of these factors, without diluting the stated intent that any utilisation must have value accretion for shareholders at the forefront.

9. COMPLIANCE

In the context of NAM India, compliance plays a very significant role. On the one hand, it acts as an interface between the Company and various regulators; on the other, it serves as the Companys compliance and legal conscience.

With a steadfast focus on strong compliance and robust corporate governance principles and processes, the Company remains a completely compliant corporate citizen by choice. NAM Indias compliance team keeps itself as well as the organisation duly updated on new regulatory requirements and developments. For many years now, the Compliance team has concentrated on imparting training and spreading awareness on various aspects that are relevant to the organisation. As a part of its periodic training initiatives, the Compliance team engages with employees to educate, sensitise, and educate them about their obligations under the Companys codes/policies. Further, there are set guidelines and dedicated policy in place to regulate personal investment transactions of employees and that of their relatives/ dependants.

The Companys management is not only committed but has always been fully geared up to comply with the applicable laws in letter and spirit, and strictly follow the ethical principles that govern business. Being fully aware of the stated regulatory requirements, the Company strives to remain ahead of the curve when it comes to compliance and governance. The interests of its unitholders, shareholders, and other relevant stakeholders are always at the forefront while taking decisions regarding business planning and execution.

The Board of Directors of the Company as well as that of the Trustee company also have a strong sense and flair towards compliance and governance standards. The Board periodically reviews and approves the various policies and processes of compliance, which forms an integral part of the organisational DNA. Matters of compliance and governance are given undivided and focused attention at the meetings of the Board. In addition to this, the Company continues to improve its underlying policies, documentation, and internal processes through a seasoned and experienced in-house Compliance Team that has an independent line of reporting to the Board.

We strongly believe that a world-class ethics and compliance program not only protects an organisation from internal and external threats, but also enhances its brand and strengthens its relationships with all stakeholders.

10. RISKS AND CONCERNS

NAM India is exposed to specific risks that are particular to its businesses and the environment in which it operates, including credit risk, operational risk, competition risk, regulatory risk, human resource risk, outsourcing risk, information security risk, cyber security risk, and macro-economic risk.

Competition risk

The financial sector industry is becoming increasingly competitive, and the Companys growth will depend on its ability to keep up with competition effectively. The Companys ma in competitors a re Domestic Mutua l Fun ds, Portfolio Management Services, Alternate Investment Funds, investment products offered by insurance companies, savings schemes operated by Government as well as bank Fixed Deposits. Further liberalisation of the Indian financial sector could lead to a greater presence or entry of new foreign asset managers offering a wider range of products and services. This could significantly toughen the competitive environment. With its strong brand image, wide distribution network, diversified product offering, and quality management, the Company has a strong competitive advantage.

Market risk

The Company has quoted and unquoted investments in equity, debt, and mutual funds, all of which are exposed to fluctuations in the prices of underlying assets. The portfolios are reviewed for market risks on a periodic basis. The Company also applies stress-testing to the portfolio monitor to manage the market risks.

Credit Risk

The Company has quoted and unquoted investments in bonds and debt-oriented mutual funds. Therefore, there is a risk of default or failure on the part of borrowers in meeting their financial obligations towards repayment of principal and interest. Hence, credit risk is a loss because of non-recovery of funds both on principal and interest counts. This risk can be addressed through diversification, by spreading investments into multiple bonds and mutual funds across multiple issuers.

Liquidity and Interest Rate Risk

The Company is exposed to liquidity risk principally due to the investments for periods that may differ from those of its funding sources. However, this risk is mitigated as all the investments are made though accumulated surpluses and equity infusion.

The Company has quoted and unquoted investments in bonds and debt-oriented mutual funds, thus the risk arising out of interest rate movements exists. This risk is comprehensively addressed by duration management across the portfolio.

Human Resource Risk

The Companys success depends largely upon the quality and competence of its management team and key personnel. Attracting and retaining talented professionals is therefore a key element of the Companys strategy and a significant source of competitive advantage. While the Company has a salary and incentive structure designed to encourage employee retention, a failure to attract and retain talented professionals, or the resignation or loss of key management personnel, may impact the Companys business and its future financial performance.

Operational Risk

The Company may encounter operational and control difficulties when venturing into new markets. In new markets, the rapid development and establishment of financial services businesses may pose unexpected risks. Such risks could have a materially adverse effect on the Companys financial position and the results of its operations.

The Companys operations have been automated to a great extent, which minimises the risk arising out of human errors and omissions. A robust system of internal controls is adhered to by NAM India (ISO 9001:2008 certification). This ensures all its assets are safeguarded and protected against loss from unauthorised use or disposition, and all its transactions are authorized, recorded, and reported accurately.

The Company conducts Risk and Control Self Assessment (RCSA) periodically, whereby all potential risks are identified, and mitigating controls are put into place.

The Audit Committee of Board reviews the adequacy of the internal controls regularly. The Company is focused on quality parameters and has a dedicated quality team to proactively identify and address operational issues. The mandate of the quality team is also to work closely with various business teams to achieve operational efficiencies and effectiveness through Six Sigma initiatives.

Information and Cyber Security Risk

Cyber risk as a threat has increased dramatically across the world. NAM India has robust cyber security risk management and resilience policies and frameworks to manage and mitigate this threat. We have strict security protocols and procedures in place and all systems are monitored round the clock. Safety and security of our systems and processes are of paramount importance to us and we constantly monitor and are vigilant in our efforts to combat any potential threats.

The Company also has information Security Risk monitoring systems and tools to protect sensitive customer data and guard against potential leaks. To manage these risks, the Board of Directors have constituted a Technology Committee that comprises experts proficient in technology to oversee and review the information security and cyber security aspects on a regular basis. Robust governance, controls and sophisticated technology is adopted across lines of business to ward off cyber threats and protect information. Information security has been brought under the Enterprise Risk Management Framework to enhance data protection, thereby making the overall Risk, Control and Governance framework more resilient.

Regulatory Risk

As an entity in the financial services sector, the Company is subject to regulations by Indian governmental authorities, including the Securities and Exchange Board of India. The laws and regulations impose numerous requirements on the Company, and any future changes in the regulatory system or in the enforcement of these regulations could have adverse effects on the Companys performance.

Outsourcing Risk

The Company has outsourced certain activities that are non-core in nature. This has been done to provide better services to clients and provide the benefit of lower transaction costs to them. Outsourcing does not diminish or eliminate the Companys obligations to customers and regulators, as a thorough evaluation and due diligence on the partners is done before outsourcing critical services. Thereafter, performance of the outsourced partner is monitored through the Service Level Agreements.

Pandemic risk

The Company maintains a Business Continuity Policy that enables remote working for employees, should the need arise in case of pandemic or any other such situation. The necessary internal controls to facilitate the same are in place.

H. DISTRIBUTOR TRAINING AND INVESTOR EDUCATION

Pioneer in Distributor Training and Skill Development

Founded 17 years ago, Nippon India Edge Learning Academy has been at the forefront of Training and Investor Education. It was one of the Industry First initiatives from NIMF, which pioneered the concept of Distributor and partners training in Mutual Fund industry in India.

It was started with the focus on imparting knowledge to our distributor partners and has now become a full-fledged knowledge center. Today, the Edge Learning Academy also touches the end user (Investors) through Financial Literacy and Awareness Programs.

The EDGE Factor

We strongly believe that to succeed in the mutual fund business, one needs to be equipped with knowledge on all the 3 facets of the business viz. Technical, Life and Digital Skills. Our customized and specially designed training programs address all these needs.

We provide training on Domain Knowledge, Life Skills, and Use of Digital Technology to enhance business and help to scale it to new highs.

Distributor Engagement Program

During FY25, the Company conducted 730+ Distributor Engagement programmes covering 29,000+ participants across India.

Investor Education Program

The Company has been active in raising awareness on mutual funds through its Investor Awareness/Education Programmes. These initiatives aim to create awareness about mutual funds across the country to attract new investors.

NIMF has adopted 19 districts in India as part of SEBIs adopt districts programme. A total of 65 of Investor Awareness Programmes were conducted across these 19 districts covering 3,950+ investors.

During FY25, the Company conducted 540 Investor Awareness and Engagement programmes reaching approximately 35,900+ investors across India. At NIMF, we continue our efforts on financial literacy and education to larger segments.

12. DIGITAL BUSINESS - DRIVING ACCELERATED GROWTH

The Indian mutual fund industry is witnessing strong growth, driven by rising financial literacy, higher incomes, and a shift toward systematic investing. Enhanced digital platforms, innovative technologies, and expanded distribution channels are further accelerating access, deepening market penetration, and driving long term growth.

Digital Business - The Core Driver of NIMFs Growth in FY25: At Nippon India Mutual Fund (NIMF), a strong digital-first approach has made Digital Business the core growth engine for NIMF in FY25, accounting for 71% of new business transactions, including lumpsum purchases and new SIP registrations. Notably, 64% of new SIPs are initiated through digital channels, reflecting the growing investor preference for seamless online experiences. Backed by a strong digital distribution framework and efficient campaign strategies, NIMF reinforced its leadership in the digital mutual fund space.

Unmatched Digital Growth: NIMF witnessed a twofold surge in digital transactions, reaching 1.44 Crore (Lumpsum + new SIPs), reflecting investor preference for digital channels. With 40 new transactions initiated every minute, this growth showcases NIMFs agility in adapting to evolving market dynamics.

Strong Focus on SIPs Drives Exceptional Growth in Registrations: SIP registrations doubled year-on-year, reaching 50 Lakh in FY24-25— highlighting the growing investor trust in NIMF and the rising preference for SIPs as a go-to investment choice.

Beyond Fintech: Unlocking New Markets and Driving Financial Inclusion: At NAM India, were expanding beyond traditional fintech with innovative partnerships, including the industry- first mutual fund transaction on ONDC at the Global Fintech Fest 2024. This milestone strengthens our push beyond B30 cities, driving financial inclusion and our vision of making Mutual Funds a household product. Strategic alliances with leading fintech platforms further boost our market share by engaging new- age retail investors, with a focus on SIPs as the preferred investment option.

Strategic Collaborations: We leveraged the Adobe suite, including Adobe Target, to drive co-branded acquisitions and personalized user experiencesacross our app and digital channels— contributing to 27% of our overall digital business. Our campaigns with Google, Facebook, and influencer collaborations targeting Gen Z helped expand NAMs digital reach, earning recognition at the prestigious Google Marketing Live event.

MFD Digital Engagement: Over 21% of active MFDs have strengthened our digital presence through the Business Easy ecosystem, demonstrating their commitment to digital transformation. This continued momentum not only expands our digital footprint but also fosters deeper engagement with our distribution partners. With a growing emphasis on virtual business partnerships, digital interactions and activations will continue to rise, reinforcing long-term relationships in the ecosystem.

Pioneering Excellence and Innovation with Launching Voice and Vernacular on our Digital Platforms: At Nippon, the Digital Business has consistently been at the forefront of the industry, championing digital-first strategies. Its goal is to deliver a seamless, inclusive, and intelligent investing experience that drives AUM growth, enhances investor retention, and fosters digital trust within the mutual fund ecosystem.

• Transforming Accessibility in Investing:

Introducing Voice Integration on our NIMF Investor Android App: We are delighted to announce a groundbreaking feature on our Mutual Fund Android App - Voice Integration. This feature allows seamless voice-based transactions, empowering all users—including differently abled individuals—to manage their finances independently. Building on our journey since 2019, were extending Conversational Commerce across our digital platforms to offer a more accessible, human, and engaging investing experience.

• Empowering Every Investor - Smarter WhatsApp Investing with Vernacular Access:

Weve enhanced our WhatsApp platform to make investing more inclusive and seamless. With Vernacular support (starting with Hindi), were connecting with non-English speakers across India. New investors can now complete KYC instantly via DigiLocker, and both investors and distributors can create folios and start Lumpsum or SIP investments quickly and easily—all within WhatsApp.

Future First - Empowering the Next Gen of Investors, Gen Z and Millennials who are at the forefront of Industry Transformation: Being a future-first organization we at NIMF have embraced the evolving needs of tomorrows investors and adapted proactively through technological innovation and personalisation. With key focus on innovation, technology and accessibility we are primed to empower the next gen of investors through our Digital landscape. We launched products and initiatives that are built on our core mantra of leveraging a threepronged strategy to Build, Engage & Distribute. As a future-first organization we not only strive to meet the needs of todays investors but also work towards being the leader in the future of finance.

Empowering a Digital-First Future with Seamless & Inclusive Investor Experiences

At the core of our digital-first approach lies the commitment to building distinct, seamless, and user-friendly digital experiences that cater to the evolving needs and preferences of Gen Z and Millennials. Our simplistic yet futuristic, zero- friction digital platforms serve as pillars of agility and robustness, integrating innovative, out-of- the-box features and intuitive user journeys.

Guided by a mobile-first ethos, our web and mobile applications deliver personalized experiences and intelligent nudges, assisting investors at every stage of their journey. These platforms not only provide the necessary guidance but also empower investors to make informed decisions with confidence and ease.

Recognizing the importance of multi-channel engagement, we have strategically expanded our digital ecosystem by integrating channels such as WhatsApp, enhancing investor accessibility and convenience. This initiative strengthens our ability to engage investors effortlessly and securely, ensuring they can interact with us through their preferred platforms.

As part of our commitment to financial independence and inclusivity, we are actively integrating voice and vernacular capabilities into our digital platforms. By breaking language and accessibility barriers, we aim to empower a diverse investor base, ensuring that individuals from all backgrounds can confidently navigate their financial journeys. Through these innovations, we continue to drive financial empowerment, making investing more inclusive, intuitive, and accessible for all.

Engage for User Growth - Foster Relationships for Long Term Sustenance and Progress

NIMF is redefining digital engagement by leveraging advanced technology and creative storytelling to drive investor acquisition, retention, and sustained growth. Through an omnichannel approach, we create seamless and personalized experiences across multiple digital touchpoints, ensuring our investors stay informed and engaged. Our initiatives, such as real-time market mailers, AMP-enabled emails, and deep-linked campaign journeys, enhance interactivity and user convenience. By integrating AI and machine learning, we deliver data-driven segmentation, enabling precise, tailored communications that resonate with diverse investor profiles.

To stay ahead in digital innovation, we have developed a comprehensive engagement model inspired by e-commerce best practices, focusing on onboarding and engaging investors. Recognizing the importance of early adoption, we launched strategic initiatives tailored to Gen Z, such as AI-driven campaigns, K-Drama series, and influencer-driven engagement. By seamlessly integrating mutual funds into relatable themes like dating, travel, and lifestyle, we have made investing more approachable and engaging for the next generation.

Our digital excellence has earned global recognition, with Google featuring our NIMF App Case Study at its prestigious Marketing Live Event. We continuously optimize the app experience through Adobe Target Nudges, delivering real-time, personalized prompts that enhance user journeys. These strategic efforts underscore our commitment to innovation and investor-centric engagement, solidifying our market leadership and setting new benchmarks in digital financial services.

Distribute Digitally - Virtual Storefronts to Enable Presence at Places Where Our Investors Go

Partnering with Mutual Fund Distributors (MFDs) provides invaluable insights into local markets and investor preferences, ensuring our digital solutions remain relevant and impactful across diverse regions. Through data-driven product campaigns and targeted communication via email, app push notifications, and WhatsApp, we actively engage our extensive distribution network, enabling seamless and personalized investor interactions. Our successful vernacular and regional campaigns have further expanded our reach, breaking language barriers and enhancing accessibility to investment solutions across all demographics.

Recognizing the growing influence of digital platforms, we have forged strategic collaborations with new-age Fintech partners, particularly focusing on investors aged 25 to 45—Gen Z and Millennials. These partnerships, backed by advanced data analytics and market intelligence, have accelerated our penetration in tier 2 and tier 3 markets, broadening financial access and fostering digital investment adoption.

As investor behaviour evolves, the demand for expert advice remains a cornerstone of financial decision-making. Understanding this, we have long positioned our MFDs as key drivers of digital engagement. Beyond providing digital tools, we have actively nurtured digital acumen among our distribution partners, equipping them with the skills and insights necessary to thrive in an increasingly digital-first ecosystem.

At the forefront of this transformation is our industry-first Business Easy 2.0 suite—an end- to-end, business-enabling digital ecosystem that serves as a comprehensive Customer Relationship Management (CRM) and digital distribution platform. This suite, comprising a mobile app, website, and WhatsApp interface, functions as a virtual branch, offering seamless onboarding, transactions, and servicing capabilities. With an intuitive dashboard, MFDs gain real-time business intelligence, enabling them to analyse audience behaviour, optimize product-fit strategies, execute sales campaigns, and enhance client retention-all within a single, integrated digital environment.

Our unwavering commitment to digital innovation solidifies our leadership in financial services. By continuously leveraging technology to drive financial inclusion, we empower both distributors and investors—particularly the digitally savvy Gen Z and Millennials—to navigate the evolving investment landscape with confidence and ease.

Awards & Accolades Won at Prestigious Digital and e-Commerce Forums

NIMF Digital continues to set benchmarks not only in the Indian BFSI sector, but also across Industries and on Global Platforms with its Fintech endeavours. Yet another year on the trot, our Digital prowess has been recognised once again across forums. In FY25, NIMFs Digital innovations and efforts bagged 21 Awards at prestigious Awards and Recognition platforms:

• India Fintech Summit & Awards - Most Innovative Fintech Product of the Year for the All-New Portfolio Dashboard

• CIIDX Awards - Innovative Products for NIMFs Portfolio Dashboard & Business Easy 360 Suite

• E4M Red Carpet Awards - Best Product Launch for the Portfolio Dashboard

• E4M Indian Content Marketing Awards - Gold for Gen Z Acquisition via Influencer Campaigns

• Pitch BFSI Marketing Awards -

- Gold: Most Effective Use of Social Media (Influencer Campaigns - Gen Z)

- Silver: Most Effective Use of Instagram

- Bronze: Most Effective Use of Influencer Marketing

- Most Effective Use of Analytics, AI & Big Data (Gen Z Acquisition & Retention)

• E4M Digione Awards - Silver for NIMF Investor App (Best BFSI App/Mobile Site)

• ACEF Global Customer Engagement Awards -

- Gold: Successful Use of Technology & Effective Use of Market Research (NIMF Investor App)

- Silver: Most Creative Influencer Marketing Campaign

• Impact Influencer Awards - Best Multi- Influencer Campaign

• E4M Performance Marketing Awards

- Best Mobile Marketing Campaign (App Marketing Excellence)

• BFSI Revolution Summit - Recognised for Best Use of AI & ML, Best Customer Experience, CDO of the Year, and Woman BFSI Leader of the Year

• E4M Martech Awards -

- Silver: Best Use of Martech for Gen Z Acquisition

- Bronze: Best Use of Martech - AMP Goal Planned Campaign

- Bronze: Best Use of Martech - Demand Generation

- Bronze: Best Transformation/Acceleration Project of the Year

NIMF Digital remains committed to innovation, excellence, and redefining industry standards. These strategic efforts reinforced NIMFs position as a digital-first leader driving accessibility, adoption, and long-term business growth.

13. INTERNAL CONTROLS

The Company maintains a system of internal controls designed to provide a high degree of assurance regarding the effectiveness and efficiency of operations, the adequacy of safeguarding of assets, the reliability of financial controls, and compliance with applicable laws and regulations.

The organisation is well structured, and the policy guidelines are well documented with pre-defined authority. The Company has also implemented suitable controls to ensure that all resources are utilized optimally, financial transactions are reported with accuracy and there is strict adherence to the laws and regulations.

The Company has put in place systems to ensure that assets are safeguarded against loss from unauthorised use or disposition and that transactions are authorised, recorded, and reported. There is also an exhaustive budgetary control system in place to monitor all expenditures against approved budgets on an ongoing basis.

The Company uses information technology extensively in its operations. It ensures effective controls besides economy and helps the Company providing accurate MIS and prompt information/services to its customers and other stakeholders. The Company has implemented enhanced level of Information System Security controls with monitoring systems to address technology risks.

The Companys internal audit function is dedicated to assessing the suitability of policies, plans, regulations, and statutory requirements. Furthermore, audits follow a risk- based approach. Internal audit also evaluates and suggests improvement in effectiveness of risk management, control, and governance process. The Audit Committee of Board provides necessary oversight and directions to the internal audit function and periodically reviews the findings and ensures corrective measures are taken.

14. HUMAN RESOURCES

At NAM India, we consider our employees as our most valued asset, who are at the core of not just the business but also in all business/ organizational decisions. We are in a people business, where human capital is the most important business driver for us as well as our biggest competitive advantage. We aim to nurture an environment where change is embraced, learning is perpetual, and where each team member is empowered to contribute to our collective success.

We prioritize upskilling as a means to not only enhance individual growth but also to contribute to wealth creation within our organization. We believe that our collective success leads to impactful social change, and we are committed to creating a positive footprint in the communities we serve. Our approach to change management is fundamental. Its not just about adapting to change; its about leading it. Our leadership is dedicated to fostering a connective thread between our vision and everyday work, ensuring that communication remains transparent, collaboration thrives, and empowerment is felt at every level.

Long-term employee retention is the key to the organizations success. At NAM India, the average tenure of all employees at is >5 years, aided by best-in-class employee experience as well as career development and growth intervention.

We hold the unique distinction of being the only AMC with our ED & CEO and both the CIOs having a tenure of 20+ years with the Company. Of our total employees, ~18% have been with us for over

10 years, of which ~10% have been with us for over 15 years.

Rewards & Compensation

Following a prudent, and fair compensation practice has always been the core driving principle at NAM India. We are an equal opportunity employer, both at the hiring level and also through the career development and progression of our employees.

Our employees experience the idea of "total rewards" beyond just remuneration i.e., best- in-class learning, career advancement opportunities, employee recognition, superior health & well-being interventions, family connect and an all-round talent experience. We are dedicated and committed to provide a great workplace that is inclusive and "equal-for-all" in all aspects as our colleagues and customers form the core of any and every business decision.

Learning & Development

Being an "employer of choice," the Company provides to its employees aholistic, comprehensive competitive, concurrent learning, upskilling and developmental environment. In the modern competitive environment, employees need to constantly unlearn, acquire new knowledge, and upskill to have new and up-to-date skills to excel in their current and future jobs. The focus hinges on improving efficiency, productivity, motivation as well as finding new ways towards personal development and success.

As a philosophy, learning and development is about creating and nurturing a catalytic environment while helps and supports in achieving various business objectives and benefitting all the stakeholders of the business, and most importantly, the employees. The Companys focus has always been to provide all its employees with the best learning and development opportunities in a democratic way that hinges on the 70:20:10 model of L&D.

We engage with the premier institutes like IIMs, IITs and others for Management Development Programmes for select employees. In FY25, our employees underwent around 20,000 man-hours of training and development interventions with an average of 17 man hours per employee of training in the year. This is in addition to the on-the-job and peer-to-peer learning and training interventions that all employees of NAM India experience.

A learning culture is one that embeds learning into how things are done at an individual, team, and organisational level. To facilitate this, we adopt various programs to develop the following:

• Technical/Functional Skills - These initiatives are directed towards the business/function specific acumen development and have direct impact on the organization.

• Behavioural/Soft Skills - Specialized training programs to develop personal attributes that enhance an employees interactions effectively with other stakeholders internally or externally.

• Managerial/Leadership Skills - Training programs designed towards behavioural grooming of managerial level employees to manage their function and team members.

Employee Career Management - Job Rotation & Succession Planning

At NAM India, its not just a belief and focus but also 100% advocacy and sponsorship from the leadership that believes in investing in its employees to take up challenging assignments and responsibilities to prepare and groom them for the future and larger roles in the organization. NAM India encourages employees to take up new roles and not restrict themselves to specific areas. As a part of their career and skill development, the Company offers opportunities to employees to explore diverse roles and functions. This provides employees the chance to explore and develop learning and expertise in different domains. Interventions like Big Break, CEOs Club, Internal Job Posting (IJP), location mobility, PANKH, LEAD help us drive this successfully year after year.

With robust succession planning and leadership development initiatives to identify and groom future leaders for the next level roles, we have seen much success across all areas of business. Owing to this, NAM Indias leadership is primarily homegrown, and more than 70% of our leaders have been groomed and elevated internally. The Company had a strong and robust bench of next-in-line leaders for all the key and critical leadership roles.

As part of future talent pipeline building across all important and critical verticals, we on-boarded around 50 Management Trainees (MTs) from the countrys premier management and technical institutes. These MTs have been placed in various functions and are being groomed towards taking up larger roles in the future. We plan to continue adding strength in the team via the MTs hiring mode in the coming years as well.

Employee Care & Support

At NAM India, employees play a pivotal role in the success of the Companys strategy and growth of the organisation. We believe in providing all employees with an environment that is safe, inclusive, and potent for achieving their aspirational goals, driven by meritocracy and equal opportunities for all.

We have a robust grievance management process, Internal Complaints Committee (ICC) to handle any harassment cases towards female employees, 24X7 employee assistance helpline and all these duly communicated and accessible to all employees of the Company. Over the years, these and many other formal connect and leadership outreach programmes have been providing crucial support, assistance and guidance to employees and their family members during the times of exigency.

Gender Diversity & Inclusion

The Companys philosophy of equal opportunity employment, development and career progression has led to many of our key and critical positions being held by women employees and has seen a steady increase of female employees, over the years. With a diversity ratio of 23% in FY25 (up from 20% in FY21), we remain committed to increasing the representation of women in our Company and are enthusiastic about seeing more women in leadership roles.

At NAM India, sexual harassment cases are handled as per the guidelines set under The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013. The Company has created awareness about the Act through mandatory e-learning at the time of induction. The Company also regularly communicates with employees regarding the mechanism for raising complaints and the need for right conduct by all employees. The policy ensures that all such complaints are handled promptly and effectively with utmost sensitivity and confidentiality and are resolved within defined timelines.

Special Initiatives for Women - Under the "PANKH" initiative:

• Guest talks by women leaders form the industry

• Management Development Programs from IIMs and other premier institutes

• Health and grooming initiatives

• De-stressing activities like music therapy, etc.

Employee Connect & Engagement:

NAM India believes in creating a culture of free and open conversations. Forums of engagement have been created where employees can engage with senior leadership and seek clarification on policy and strategy. Interventions like #LeadershipReachout, Zonal HR Branch Visits, #LeadershipConnect, #CXOTownhall, Employee Offsites and smaller and regular team meetings ensure that the connect across all employee and teams are active and engaged.

Celebrations of key milestones for employees service anniversaries, tenure completion, festival celebrations and connecting with family members for Fathers Day, Mothers Day, Childrens Day celebrations keep the connect and spark alive. Interventions like "Young Achievers Award" enables us to celebrate the academic success of employees children, which fosters inspiration, connection, and pride, highlighting our commitment to nurturing a supportive environment for our employees and their loved ones. Engaging employees towards activity clubs like stepathalons, trekking, book reading, football, cricket, badminton etc. also keep the energy and vibe going.

15. CORPORATE SOCIAL RESPONSIBILITY

The Company continues to shape its strategy and action towards creating a long-term impact in the community. Through CSR initiatives, the Company has been facilitating diverse interventions to encourage the socio-economic upliftment of marginalised and vulnerable communities across India.

We adopt a multi-stakeholder approach covering social, environmental, and economic aspects. Our thematic areas are aligned with the activities mentioned in the Schedule VII (Companies Act 2013). This year the Company adopted a strategic approach to place its interventions on an outcome-based approach. The Companys CSR efforts will broadly revolve around the three pillars of People, Community and Environment, in line with the approach adopted by the parent company, Nippon Life Insurance, Japan. Some of the activities covered are promoting education and livelihood enhancement projects, rural development, promoting gender equality, ensuring environmental sustainability, support to armed forces veterans and training to athletes and para-athletes while promoting sports.

The Company contributed Rs.18.81 Crore in FY25, inter-alia, through non-profit organizations engaged in the areas of healthcare, education, promotion of sports, rural development, and environmental sustainability.

Access to the Healthcare Facility and Treatment

In collaboration with Vision Foundation of India, the Company has supported eye surgeries for senior citizens and individuals from socioeconomically weaker sections of society. People from the rural belts of Maharashtra, West Bengal, Odisha, Gujarat, Bihar, Karnataka, Uttar Pradesh, and Jharkhand have been benefitted.

In collaboration with the Adjutant Generals Branch of the Indian Army, through the Army Welfare CSR Fund, support has been given to the detection, diagnosis and treatment of birth defects and developmental delays among children of the armed forces. These early intervention centres (EICs) are supported in Pune, Secunderabad, Jammu, Jalandhar, Kolkata, and Jaipur.

Through Tata Memorial Centre-Advanced Centre for Treatment, Research and Education in Cancer (ACTREC), in Navi Mumbai, focused support was provided to optimise the treatment given to children and other cancer patients, by improving the diagnostic capabilities of the institution. With Tata Memorial Centres Homi Bhabha Cancer Hospital and Research Centre (HBCHRC), in Chandigarh, procurement of surgical navigation system was ensured, which would further assist in the treatment of cancers by offering precision and accuracy for the surgeries.

Need-based Livelihood Opportunities and Rural Development

The Company, in collaboration with NGOs such as The Energy and Resources Institute, Tata Institute of Social Sciences and Swades Foundation, extended support to the tribal and rural communities in Jharkhand and Maharashtra. Through a multidisciplinary strategy, the projects facilitated empowerment of women, promotion of climate-resilient agriculture, improvement of education facilities in rural parts of the country, skill-building and micro-entrepreneurship. Initiatives were also taken to address prominent issues such as access to safe drinking water, healthcare facilities and government schemes and basic sanitation facilities.

Supporting Education

In collaboration with Ekam Foundation, the Company committed support for academic education of children from the lower economic strata. The assistance was also provided to nursing students and students pursing graduation from different colleges spread across the country. Besides supporting educational needs across the states of Assam, Delhi, Himachal Pradesh, Maharashtra, Madhya Pradesh, Punjab, Telangana, Tamil Nadu, and Uttar Pradesh, the organization also assisted in digitizing classrooms in Maharashtra and Bihar.

Support towards Sports

In collaboration with the Foundation for Promotion of Sports and Games, we offered our support to Indian athletes and para-athletes through sports science, training, equipment, and coaching support. The support provided enables the athletes to participate at both national as well as international levels. The training centres are located across the country to facilitate trainings and to provide the desired support to our sportspersons.

Environmental Sustainability Initiatives

With the effects of climate change becoming evident year on year, we understand the importance of maintaining and increasing the green cover, providing sustainable solutions for problems that arise, work towards biodiversity and nature-based solutions. For accomplishing the same, we had collaborated with the Aga Khan Agency for Habitat, India for implementation of ecosystem-based projects in Goa, Gujarat, Telangana, and Maharashtra. These projects are structured to increase green- cover through mangrove plantations as well as plantations of native and fruit-bearing trees through the Miyawaki method and to conserve water through multiple activities. We have also initiated projects to focus on solving for access to water in specific geographies of Maharashtra, with Swades Foundation and Aga Khan Agency for Habitat, India.