Nippon Life India Asset Management Ltd Directors Report.

Dear Shareholders,

Your Directors take pleasure in presenting their 26th Annual Report on the business and operations of your Company, together with the audited financial statements, for the year ended March 31,2021.

Your Company endeavors to remain one of the leading players in the Asset Management business in India and keep enhancing its global footprint as well.

Your Company is a subsidiary Company of Nippon Life Insurance Company ("NLI"). NLI, a fortune 500 Company and which is one of the largest life insurers in the world managing assets of over USD 700 bn. NLI has a large global network with presence across US, Europe, Asia, and Australia along with a 130-year track record in Life Insurance business as well as global investments across Asset Management companies. This pedigree brings strong synergistic benefits that very well complements your Companys domestic expertise in Asset Management business and provides a thrust to its significant growth potential. Your Company expects substantial upside in terms of increased AUM & adoption of best governance & risk management practices based on NLIs global positioning & relationships.

Your Company acts as the Asset Management Company of Nippon India Mutual Fund and it happens to be the largest foreign owned Asset Management Company in India.

FINANCIAL PERFORMANCE AND STATE OF COMPANYS AFFAIRS

The standalone and consolidated financial statements of the Company for the financial year ended March 31, 2021, have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act. The financial highlights (on a consolidated and standalone basis) of the Company for the year ended March 31, 2021 are as follows:

(Rs. Crores)

Description Consolidated Standalone
Year ended March 31, 2021 Year ended March 31, 2020 Year ended March31,2021 Year ended March 31,2020
Gross Income 1419.34 1193.21 1325.66 1134.29
Profit before exceptional item and tax 877.03 559.81 842.92 561.39
Exceptional Items - - - -
Profit Before tax 877.03 559.81 842.92 561.39
Current Tax 157.41 142.36 151.51 142.73
Deferred Tax 40.22 1.69 42.02 6.36
Profit for the year 679.40 415.76 649.39 412.30
Share of Profit from Associates 0.94 (0.51) - -
Profit attributable to non-controlling interest - - - -
Other Comprehensive Income 0.72 (2.40) 0.72 (2.34)
Balance carried to Balance Sheet 681.06 412.85 650.11 409.96
Basic EPS of Rs. 10 each 11.04 6.78 10.53 6.74
Diluted EPS of Rs. 10 each 10.90 6.69 10.41 6.65

The Consolidated Financial Statements of the Company are forming part of this Annual Report. The annual accounts of all the subsidiary companies will be placed on the website of the Company.

DETAILS OF MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY

There are no material changes and commitments affecting the financial position of the Company since the date of the financial statements i.e. March 31, 2021.

DIVIDEND

During the year, the Company had declared and paid an interim dividend of Rs. 3 per equity share (30%) amounting to Rs. 183.90 Crore. The Board has also recommended a final dividend of Rs. 5/- per Equity Share (50%) of Rs. 10/- each for the financial year ended March 31, 2021, for the approval of the Shareholders at the ensuing Annual General meeting. With this the total dividend for the financial year 2020-21 would be approximately Rs. 492.16 crores, including the interim dividend of Rs. 3 per equity share distributed in February 2021. The Final dividend, if declared, will be paid after the Annual General Meeting.

The dividend payout is in accordance with the Companys Dividend Distribution Policy which forms part of this Annual Report.

AMOUNT TO BE CARRIED TO RESERVES

Your Directors do not propose any amount to be transferred to the General Reserves of the Company.

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis Report for the year under review as stipulated under SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 (Listing Regulations) is presented in a separate section forming part of this Annual Report.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENT

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Act are given in the notes to the Financial Statements.

DEPOSITS

The Company has neither accepted nor renewed any fixed deposits during the year. There are no outstanding or unclaimed deposits, unclaimed / unpaid interest, refunds due to the deposit holders or to be deposited to the Investor Education and Protection Fund as on March 31, 2021.

EMPLOYEES STOCK OPTION SCHEME

With the perspective of promoting the culture of employee ownership and to attract, retain, motivate and incentivize senior as well as critical talent, the Company has formulated Reliance Nippon Life Asset Management Limited - Employee Stock Option Plan 2017 ("ESOP 2017" / "Plan") as its stock option scheme, which was launched in August 2017 and Reliance Nippon Life Asset Management Limited - Employee

Stock Option Plan 2019 ("ESOP 2019" / "Plan") as its stock option scheme, which was launched in July 2019. The Nomination and Remuneration Committee of the Board monitors and administers these Plans and from time to time grants stock options to the employees.

Both ESOP 2017 as well as ESOP 2019 are in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (SEBI Regulations).

However, having regard to the provisions of first proviso to Section 136(1) of the Act, the Annual Report excluding the aforesaid information is being sent to all the members of the Company and others entitled thereto. The certificate from the Statutory Auditors of the Company confirming the compliance of the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 with respect to the Companys Employees Stock Option Scheme Plans will be available for inspection through electronic mode. Any member interested in obtaining the same may write to the Company Secretary and the same will be furnished on request. The details as required to be disclosed under SEBI Regulations are put on the Companys website at https://mf.nipponindiaim.com/investor-service/customer- service/nam-india-shareholders-investors

COMPLIANCE CULTURE & RISK MANAGEMENT

Your Company is essentially Compliance centric and has a huge focus in this direction. The Compliance function is manned by a dedicated and experienced team of professionals. The Compliance team regularly conducts various educative training programs for various segments within the organization. Your Company thrives towards a culture of Total Compliance and it has a Zero Tolerance policy for non-compliances. There exists a comprehensive Compliance Manual, which is reviewed by your Board of Directors from time to time and it facilitates Companys Compliance team to monitor various compliance requirements effectively & comprehensively. Your Board of Directors have also constituted a Compliance Committee, which is chaired by the CEO & Executive Director of the Company and which has the Compliance Officer and other senior & relevant functionaries as its members. This committee meets at least once in a quarter to discuss and deliberate issues pertaining to compliance and other regulatory developments.

Your Company also has a comprehensive Risk Management Policy that envisages a structured and consistent enterprise-wide risk management framework, based on The Three Line of Defense model, to ensure that risk management processes are consistently applied across the organization and provide reasonable assurance regarding achievement of organizations objectives. The risk management policy clearly sets out the objectives & elements of risk management within the organization, including the constitution of Risk Management department headed by Chief Risk Officer (reporting directly to the CEO and to the Board of Directors), Risk Management Committee (RMC) and the underlying mechanisms & processes to be used for identification,

analysis, evaluation, control, monitoring and reporting of various categories of risks including business, credit, market, liquidity and operational risks. Your Company promotes risk awareness culture throughout the organization and risk management is an integral part of decision making and day-to-day operations of all activities at all levels across the organization. There are well documented & Board approved policies & processes which are in place. In addition, proper & adequate Insurance Policies and business continuity planning have also been adequately put into place.

You will note that the basic revenue model of an asset management company is charging of management fees on assets under management provided by the investors. In case of an eventuality where the Company repeatedly fails to comply with regulatory norms with regard to investment restrictions and/ or code of conduct, or if there are repeated & glaring instances of fraud/ front-running then the same may be a catastrophic risk for the enterprise. However, your Directors would like to assure you that such risks are being mitigated by putting into place robust & time-tested policies & processes, qualified & professional manpower to run these processes under the aegis & guidance of your Board of Directors, Board Committees and various other internal committees, comprising of senior employees of your Company.

INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

The Company has an Internal Control System which is commensurate with the size, scale and complexity of its business operations.

To maintain its objectivity and independence, the Internal Auditor reports to the Audit Committee. The Internal Auditor monitors and evaluates the efficacy and adequacy of the internal control system in the Company, its compliance with operating systems, accounting procedures and policies. Based on the report of the Internal Auditor, process owners undertake corrective action in their respective areas and thereby strengthen the controls. The Risk Management department follows up on pending audit issues and ensures that corrective actions have been taken. Significant audit observations, if any, and corrective actions thereon, are presented to the Audit Committee of the Board

CORPORATE GOVERNANCE

Your Directors wish to reiterate your Companys commitment to the highest standards of corporate governance in order to enhance trust of all its stakeholders. Strong & robust corporate governance practices have facilitated your Company in standing up to the continued scrutiny of domestic & international investors and that of various Regulatory authorities.

The report on Corporate Governance as stipulated under Regulation 34(3) read with Para C of Schedule V of the Listing Regulations is presented in separate section forming part of this Annual Report.

A Certificate from the auditors of the Company i.e. M/s. S.

R. Batliboi & Co. LLP, Chartered Accountants conforming compliance to the conditions of Corporate Governance as stipulated under Para E of Schedule V of the Listing Regulations, is enclosed to this Report.

VIGIL MECHANISM

In accordance with Section 177 of the Act and the Listing Regulations, the Company has formulated a Vigil Mechanism to address the genuine concerns, if any. The policy can be accessed on the Companys website.

CORPORATE SOCIAL RESPONSIBILITY

As part of its initiatives under "Corporate Social Responsibility (CSR)", the Company has undertaken projects in the areas of promoting healthcare, education and rural development in accordance with Schedule VII of the Act.

The Annual Report on CSR activities is annexed herewith as Annexure A.

SUBSIDIARIES & ASSOCIATE COMPANY

As of March 31,2021, your Company had three (3) subsidiaries. Two of such subsidiaries are overseas, being one each in Singapore and Mauritius and one subsidiary is in India. All the subsidiaries of the Company are engaged in financial services and related activities. In addition, the Company also has an Associate company in India, which has already surrendered its business license/ regulatory approval to act as a Pension Fund Manager. This particular company currently has no business operations and it is therefore proposed to wind it up, in accordance with the applicable laws.

A statement w.r.t. the performance and the financial position of the subsidiaries of the Company is forming a part of the Consolidated Financial Statements of the Company.

The performance of financial position of the subsidiary companies is presented in the Management Discussions and Analysis Report forming part of this Annual Report. The policy for determining material subsidiary companies may be accessed on the Companys website at https://mf.nipponindiaim. com/InvestorServices/Pages/ Investor-Policies. aspx

KEY MANAGERIAL PERSONNEL

During the year under review, the following employees were the Key Managerial Personnel of the Company:

a) Mr. Sundeep Sikka - Executive Director & Chief Executive Officer;

b) Mr. Ajay Patel - Manager;

c) Mr. Prateek Jain - Chief Financial Officer; and

d) Ms. Nilufer Shekhawat - Company Secretary.

During the year, Mr. Sundeep Sikka has been re-appointed as the Executive Director & CEO of the Company for a term of 5 years commencing from April 22, 2021.

DIRECTORS

During the year, Mr. Minoru Kimura [Nominee Director of NLI] resigned from the directorship w.e.f. June 8, 2020 and Mr. Mahadevan Veeramony, Independent Director resigned w.e.f. August 1,2020.

During the year, Mr. Ashvin Parekh and Mr. B. Sriram were appointed as Independent Directors of the Company on August 1, 2020 and March 15, 2021, respectively. Also, during the year, Mr. Kazuyuki Saigo and Mr. Yutaka Ideguchi, Nominees of NLI were appointed as Directors of the Company on June 8, 2020 and March 15, 2021, respectively.

General Ved Prakash Malik (Retd.), has been re-appointed as the Non-executive Independent Director of the Company for a second term of upto 5 years commencing from April 22, 2021 till April 21, 2026.

Mr. Sundeep Sikka has been re-appointed as the Executive Director & CEO of the Company for a further term of 5 years effective from April 22, 2021.

All the Independent Directors of your Company i.e. General Ved Prakash Malik (Retd.), Ms. Ameeta Chatterjee, Mr. Ashvin Parekh and Mr. B. Sriram, have already furnished the required declarations that they meet the criteria of independence as laid down under Section 149(6) of the Act.

In the opinion of the Board, the Independent Directors possess the requisite expertise and experience and are persons of high integrity and repute. They fulfil the conditions specified in the Act and the Rules made thereunder and are independent of the management.

In terms of Section 150 of the Act read with Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, Independent Directors of the Company have confirmed that they have registered themselves with the databank maintained by The Indian Institute of Corporate Affairs, Manesar (IICA). The Independent Directors are also required to undertake online proficiency self-assessment test conducted by the IICA within a period of Two years from the date of inclusion of their names in the data bank, unless they meet the criteria specified for exemption. All the Independent Directors of the Company are exempt from the requirement to undertake online proficiency self assessment test.

PERFORMANCE EVALUATION OF DIRECTORS, BOARD AND COMMITTEES

The Company has devised a policy for the performance evaluation of the individual directors, Board and its Committees, which also includes the criteria for carrying out the said performance evaluation. Pursuant to the provisions of the Act and Regulation 17(10) of Listing Regulations and as prescribed in the stated policy of the Board, the Board has carried out an annual performance evaluation of (i) the Directors (Independent and non-independent); (ii) itself (as a whole); (iii) its committees and (iv) fulfillment of Independence criteria. The Board performance was

evaluated based on inputs received from the Board members after considering criteria such as Board composition and structure, effectiveness of Board / Committee processes, and information provided to the Board, etc. In terms of the requirements of the Act, a separate meeting of the Independent Directors was also held during the year.

BOARD AND COMMITTEE MEETINGS

During the year under review, eight (8) Board meetings were held.

Your Directors wish to inform that the functioning of the Board is supplemented by various committees (Board sub-committees and management committees), which have been constituted from time to time, such as Audit Committee, Committee of Directors, CSR Committee, Stakeholders Relationship Committee, Nomination & Remuneration Committee, Risk Management Committee of the Board, Valuation Committee, Investment Committee, Risk Management Committee, Allotment Committee, Broker Empanelment Committee, Operating Committee, Compliance Committee, Stewardship Committee, Proxy Voting Committee, Information Security Risk Management Committee, etc. to name a few. Each of the aforesaid Committees has been constituted in order to ensure due compliance with the applicable laws and to ensure that highest levels of corporate governance are followed and practiced. The minutes of the meetings of each of these Committees are duly placed before the Board for noting and confirmation.

AUDIT COMMITTEE

In terms of the requirements of Section 177 of the Act, the Audit Committee of the Company consists of majority of Independent Directors. As on date of this report, it comprises Mr. Ashvin Parekh [Independent Director], Ms. Ameeta Chatterjee [Independent Director], General Ved Prakash Malik (Retd.) [Independent Director], Mr. B. Sriram [Independent Director] and Mr. Akira Shibata and Mr. Yutaka Ideguchi [Non-Independent Directors]. Mr. Ashvin Parekh acts as the Chairperson of this Committee.

During the year, five (5) meetings of the Audit Committee were held. Other relevant details in this regard have been provided in the Corporate Governance Report.

NOMINATION & REMUNERATION COMMITTEE

In terms of the requirements of Section 178 of the Act, the Nomination & Remuneration Committee of the Company consists of majority of Independent Directors. As on date of this report, it comprises, Ms. Ameeta Chatterjee [Independent Director], General Ved Prakash Malik (Retd.) [Independent Director], Mr. Ashvin Parekh [Independent Director], Mr. B. Sriram [Independent Director], Mr. Yutaka Ideguchi [Non-Independent Director] and Mr. Kazuyuki Saigo [Non-Independent Director]. General Ved Prakash Malik (Retd.) acts as the Chairman of this Committee.

During the year, three (3) meetings of the Nomination & Remuneration Committee were held. Other relevant details in this regard have been provided in the Corporate Governance Report.

The Nomination & Remuneration Policy has been provided as Annexure B to the Boards Report.

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

In terms of the requirements of Section 135 of the Act, the Corporate Social Responsibility ("CSR") Committee of the Company consists of eight members. As on date of this report, it comprises Mr. Kazuyuki Saigo [Non-Independent Director], Ms. Ameeta Chatterjee [Independent Director], General Ved Prakash Malik (Retd.) [Independent Director], Mr. Ashvin Parekh [Independent Director], Mr. B. Sriram [Independent Director, Mr. Sundeep Sikka [CEO & Executive Director], Mr. Akira Shibata [Non-Independent Director] and Mr. Yutaka Ideguchi [Non-Independent Director]. Mr. Kazuyuki Saigo acts as the Chairman of this Committee.

During the year 2020-21, two (2) meetings of the CSR Committee were held. Other relevant details in this regard have been provided in the Corporate Governance Report.

STAKEHOLDERS RELATIONSHIP COMMITTEE

In terms of the requirements of Section 178 of the Act, the Stakeholders Relationship Committee of the Company consists of five members. As on date of this report, it comprises Ms. Ameeta Chatterjee [Independent Director], Mr. Ashvin Parekh [Independent Director], Mr. B. Sriram [Independent Director], Mr. Kazuyuki Saigo [Non-Independent Director] and Mr. Sundeep Sikka [CEO & Executive Director]. Ms. Ameeta Chatterjee acts as the Chairperson of this Committee.

During the year, two (2) meetings of the Stakeholders Relationship Committee were held. Other relevant details in this regard have been provided in the Corporate Governance Report.

RISK MANAGEMENT COMMITTEE

In terms of the relevant requirements under the Listing Regulations, the Company has constituted a Risk Management Committee of the Board. The Committee presently comprises of Mr. Kazuyuki Saigo [Non-Independent Director] as the Chairperson, Mr. Akira Shibata [Non-Independent Director], Mr. Sundeep Sikka [CEO & Executive Director], Mr. Ashvin Parekh [Independent Director], Mr. B. Sriram [Independent Director] and Mr. Milind Nesarikar [Chief Risk Officer] as its members. During the year, Mr. Mahadevan Veeramony and Mr. Minoru Kimura, who were also members of this Committee, ceased to remain as such, after they ceased to be Directors of the Company effective August 1, 2020 and June 8, 2020, respectively.

During the year, one (1) meeting of the Risk Management Committee of the Board was held. Other relevant details in this regard have been provided in the Corporate Governance Report.

AUDITORS OF THE COMPANY - STATUTORY AND INTERNAL

Statutory Auditors:

M/s. S. R. Batliboi & Co. LLP, Chartered Accountants shall hold office as Statutory Auditors of the Company until the conclusion of the 28th Annual General Meeting.

Internal Auditors:

JHS & Associates LLP, Chartered Accountants were appointed as the Internal Auditors of your Company for the financial year 2020-21. Your Directors have also approved their reappointment as such for the financial Year 2021-22

AUDITORS OF THE SCHEMES OF NIPPON INDIA MUTUAL FUND (FORMERLY KNOWN AS RELIANCE MUTUAL FUND)- STATUTORY AND INTERNAL

In accordance with the applicable provisions of law, the Company has appointed Statutory and Internal Auditors for various Schemes of Nippon India Mutual Fund, who periodically submit their reports, which are placed before the Audit Committee for discussion, review and implementation of their recommendations.

STATUTORY AUDITORS:

M/s. Walker Chandiok & Co. LLP, Chartered Accountants were appointed as Statutory Auditors of the Schemes of Nippon India Mutual Fund for the financial year 2020-21.

INTERNAL AUDITORS:

During the year, M/s. Deloitte Haskins & Sells LLP, Chartered Accountants were appointed as Internal Auditors of the Scheme of Nippon India Mutual Fund and the portfolio management services division of the Company, for the financial year 2020-21. Your Directors have also approved their re-appointment as such for the financial Year 2021-22.

AUDITORS REPORT

The observations and comments given by the Statutory Auditors in their report read together with notes on financial statements are self-explanatory and hence does not require any further comments in terms of Section 134 of the Act.

SECRETARIAL STANDARDS

During the year under review, the Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.

SECRETARIAL AUDIT REPORT

Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Directors had appointed M/s. M. Siroya and Company, Mumbai, a firm of Company Secretaries in-practice to undertake the Secretarial Audit of the Company for the financial year 2020-21. In this regard, the Report submitted by the Secretarial Auditor is annexed as Annexure C.

Your Directors are pleased to inform that the report from the Secretarial Auditors does not contain any qualifications or negative remarks.

ANNUAL RETURN

Pursuant to Section 134(3)(a) and Section 92(3) of the Act read with Rule 12(1) of the Companies (Management and Administration)Rules,2014,theAnnualReturnoftheCompanyhas been placed on the website of the Company and can be accessed at https://mf.nipponindiaim.com/AboutUs/FinancialReports/Pages/ Annual-Return.aspx

PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO CONSERVATION OF ENERGY:

The operations of the Company do not consume high levels of energy. Adequate measures have been taken to conserve energy wherever feasible. Your Company uses latest technology and energy efficient equipments. Your Company only uses LED lights and 5 start air-conditioning for majority of offices. As energy cost forms a very small part of the total costs, the impact on cost is not material.

TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:

> Game changing initiatives:

• New Digital Channel - WhatsApp: Pursuing the philosophy of building our Digital presence in line with the preference of our investors, we extended our Digital footprint to WhatsApp, the largest social chat application. We have developed an innovative solution on WhatsApp for Business where our retail investors are provided with the ease of initiating and completing Liquid Fund purchase transactions on WhatsApp itself, without any re-directions. They can also check their KYC status and can explore other digital platforms.

This move has helped us unlock broader opportunities for future and our endeavor going forward is to provide wide-ranging transaction and servicing capabilities with best-in-class transaction experience to create an independent, full-scale Digital Channel for masses.

• Corporate Solutions Suite: We have commissioned a full spectrum Digital asset for the Institutional Business segment. The new asset gives us the capability to run Digital campaigns, generate leads, drive conversions as well as onboarding for online services, transactions and servicing. The asset is built on a Mobile-first approach with cross device compatibility and automated self-serve processes for facilitating transition to digital transactions and online services.

• Investor Segment expansion: We extended online purchase for a new investor segment - Hindu Undivided Family & Sole Proprietorship - to bring in newer business opportunities digitally and addressing the investment needs of a strong segment which could have been left under-served due to restrictions of in-person investor engagement amidst COVID-19.

• New Fund Offer : Digital Launches: The Nippon India Multi Asset Fund was the first ever Digital NFO for the organisation and was enabled for investors & partners across all Digital assets. The NIFTY Small Cap 250 Index Fund and ETF Nifty CPSE Bond Plus SDL 2020 were the other NFOs to be launched during the COVID-19 pandemic.

• System driven, do it yourself (DIY) intelligent measures: We have created smart interventions on our platforms across various customer journeys with the objective of creating business impact. Here is a quick overview:

Retention nudge - Switch to Liquid option at the time of Redemption which guides investors to switch their investments into Liquid Fund instead of redeeming from Non-Liquid schemes.

SIP Pause Intervention: AUM retention initiative developed to counter AUM withdrawals in view of challenges due to COVID pandemic where Intelligent nudges guide investors to pause their SIP instead of cancelling it.

Smart Payment Retry: Automated Payment Retry option for investors who encounter payment related errors or failures during online purchase. The feature is designed to prevent potential drop- offs during transactions, thereby reducing business leakage.

• Conversational Commerce: This one of its kind initiatives in the financial services space in APAC has seen consistent growth and investor traction. The voice-based interface, which has been cocreated with Google and which facilitates financial transactions in our Liquid Fund, has brought many awards and accolades for the organisation. The Simply Save app, which hosts the Conversational Commerce interface has seen 1.5 Lac+ new downloads since launch and has one conversation invoked every 5 minutes!

• Business Easy 2.0: Our industry first, Business Easy 2.0 (B.E 2.0) app is a full spectrum, business enabling digital solutions suite that acts as a complete Customer Relationship Management tool using which Mutual Fund Distributors (MFDs) can manage their business virtually. Devoid of in-person meetings due to country-wide lockdown, the B.E

2.0 app became the mainstay of business For MFDs. The app gave them a complete dashboard view of their business, with intelligent insights about their audience and the relevant investment options. They used the app to run segmented campaigns (email & SMS) and reach out to investors with personalised transaction links with pre-embedded details that their customers had to merely authorise. They also handled the service-related needs of investors with the fully integrated Services module. Moreover, the Distributors could also onboard new investors using the completely paperless e-KYC module.

• Strengthening our Digital Distribution through Strategic Alliances and Enhanced Support to Partners: We added another key partner in the form of PhonePe to our network which already has key names like Paytm, ETMoney, Groww, Kuvera, Tarrakki, etc., to bolster our executional leadership and expansive reach. With our immense expertise in the core business of Asset Management and prowess in Digital Business, we engaged with our Partners at an even deeper level and helped them navigate through the tough COVID-19 times. Our expertise and knowledge were shared with the Partners and their customers, advocating investment best practices and providing guidance on how to steer through volatile markets. Our Fund Managers and Investment Experts conducted exclusive webinars for these Partner platforms with the intent of educating the investors and helping them take the right decisions. Also, co-branded content on similar lines was created and disseminated to investors using these Partner platforms. We also extended ETFs to the bouquet of our offerings across Partner platforms. These measures not only arrested attrition but also helped us to grow business volumes on such platforms, thereby benefitting both us and the Partners.

> Key Results of 2020-2021:

• Digital Business touched a record 1.7+ million purchase transactions till FYTD February 2020-21, which is essentially 5 purchases every minute! This increase is a ~32 % YOY growth.

• Contribution of Digital Business to overall NIMF business stands at 52%, which is a growth of 22% over last FY where Digital contribution was at 43%.

• Digital Business share in lumpsum and SIP purchase transactions stands at 49% and 59% respectively vis-a-vis total purchase transactions. The same metric stood at 46% and 35% in FY 2019-20.

• Long term assets focus resulted in 76% non-Liquid acquisitions compared to 25% in FY2019-2020.

• 28% of investors transacting with us through digital channels were new customers.

• Conversational Commerce interface (hosted on the Simply Save App) has ~1.5 Lac new downloads since launch and has seen one conversation invoked every 5 minutes.

> Awards & Accolades.:

Our pathbreaking innovations won the following awards this year:

• Asia Asset Management Best of the Best Awards, 2021 - FinTech Innovation.

• IBS Intelligence Global FinTech Innovation Awards, 2020 - Most Impactful Project in Digitization / Paperless Initiative for Online Purchase Web & M-site.

• CII Center for Digital Transformation of Confederation of Indian Industries DX Awards, 2020 - Customer Experience for Conversational Commerce.

• Internet and Mobile Association of India (IAMAI) India Digital Awards, 2020 (11th Edition); Technology Solutions - Best use of Bots (Chat & Voice) for Conversational Commerce.

• Kamikaze B2B Media Payments & Cards Awards, 2020 - Best Contactless Innovation of the Year and Best Contactless Payments Project of the Year for Conversational Commerce.

• CII Center for Digital Transformation of Confederation of Indian Industries DX Awards, 2020 - Service Distribution Excellence for Business Easy 2.0.

• Adobe Campaign India Champion Award 2021 - 2nd Runner Up.

• BFSI Digital Stallions Awards 2021 - Best use of Facebook in Mutual Funds.

RESEARCH AND DEVELOPMENT:

• DIGITAL ADOPTION AND INNOVATION: We, at Nippon India Mutual Fund, have always taken pride in our Digital prowess and technological innovations, constantly setting benchmarks for others to follow.

• Our repute as a Digital leader is recognized within the Industry and beyond. This leadership has come on the back of years of relentless hard work we have put in to not just lay a sturdy foundation but also create a robust business-centric structure cemented by Digital Technology.

• Having acknowledged long ago that we are not only a Mutual Funds & Asset Management company but also as a new age Digitech enterprise that helps individuals, entities and intermediaries achieve their financial and business goals, we were always at the Forefront of adopting technology and embracing a perpetual state of digital transformation. And, in times of COVD-19, it is this constant pursuit spanning many years that has paid off and made us #FutureReady

FOREIGN EXCHANGE EARNINGS AND OUTGO:

During the year under review, the Company earned foreign exchange equivalent to Rs. 21.79 Cr (Previous Year: Rs. 28.97 Cr). The Company spent foreign exchange equivalent to Rs. 6.49 Cr (Previous Year: Rs. 7.24 Cr).

DIRECTORS RESPONSIBILITY STATEMENT

As per the requirements of Sub Section (5) of Section 134 of the Act, the Directors confirm that -

(i) In the preparation of the annual accounts for the financial year ended March 31, 2021, the applicable accounting standards have been followed and that there are no material departures;

(ii) The Directors have selected such accounting policies in consultation with the Statutory Auditors and have 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 of affairs of the Company as at March 31, 2021 and of the profit of the Company for the year under review;

(iii) The Directors have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) The Directors have prepared the annual accounts of the Company on a going concern basis;

(v) The Directors have 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 have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

CONTRACT AND ARRANGEMENTS WITH RELATED PARTIES

All contracts/ arrangements/ transactions entered into/ by the Company during the financial year under review with related parties were on arms length basis and in the ordinary

course of business. There were no materially significant related party transactions which could have potential conflict with interest of the Company at large. During the year, the Company had not entered into any contract / arrangement / transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions.

All Related Party Transactions were placed before the Audit Committee for approval. Prior omnibus approval of the Audit Committee was obtained for the transactions which were of a repetitive nature. The transactions entered into pursuant to the omnibus approval so granted were reviewed and statements giving details of all related party transactions were placed before the Audit Committee and the Board of Directors for their review on a quarterly basis. The policy on Related Party Transactions as approved by the Board is uploaded on the Companys website at the following link:

https://mf.nipponindiaim. com/InvestorServices/Pages/ Investor-Policies. aspx

Your Directors draw attention of the members to Note No. 29 to the financial statement which sets out related party disclosures.

PARTICULARS OF FRAUDS REPORTED BY THE AUDITORS

In terms of Section 143(12) of the Act, M/s. S R Batliboi & Co. LLP, Chartered Accountants, the Statutory Auditors of the Company have not reported any instance of fraud having taken place during the year under review, in their Audit Report.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

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

DETAILS OF APPLICATION MADE BY THE COMPANY OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 (31 OF 2016) DURING THE YEAR ALONGWITH THEIR STATUS AS AT THE END OF THE FINANCIAL YEAR

The Company invests in various debt market instruments (non-convertible debentures) issued by various issuers. In order to realize the debenture outstandings the Company has filed certain applications under the Insolvency and Bankruptcy Code, 2016. The Mutual Fund Division of the Company has filed

(a) an IBC proceeding against Avantha Holdings Limited in January 2020 before Honble NCLT New Delhi which is currently at pre-admission hearings stage; and

(b) a claim under the CIRP process against Dewan Housing Finance Corporation Limited before the Honble NCLT, Mumbai in December 2019. The Company is also a respondent party to an IBC proceeding filed in the matter of Reserve Bank of India v. Dewan Housing Finance Corporation Limited pending before the Honble NCLT, Mumbai.

The Portfolio Management Services Division of the Company has filed:

(a) three IBC proceedings against three Fortuna Group companies (Fortuna Buildcon India Private Limited, Fortuna Projects India Private Limited and Fortuna Urbanscape Private Limited) in November 2017 before the Honble NCLT, Bangalore. Fortuna Buildcon India Private Limited and Fortuna Urbanscape Private Limited are currently under CIRP and Fortuna Projects India Private Limited is currently under liquidation;

(b) three IBC proceedings against three Biodiversity Conservation India Private Limited group companies (BCIL Zed Ria Properties Private Limited, BCIL Red Earth Developers India Pvt Ltd and Biodiversity Conservation India Private Limited) in December 2017 before the Honble NCLT, Bangalore. BCIL Zed Ria Properties Private Limited, BCIL Red Earth developers India Pvt Ltd are currently under CIRP and Biodiversity Conservation India Private Limited is currently under liquidation;

(c) an IBC proceeding has been filed against the promoters of Biodiversity Conservation India Private Limited in November 2020 before the Honble NCLT, Bangalore which is currently at pre-admission hearings stage;

(d) an IBC proceeding has been filed against Green Valley Shelters Private Limited in December 2019 before the Honble NCLT, Chennai, which is currently at preadmission hearings stage;

(e) an IBC proceeding has been filed against the promoters of Green Valley Shelters Private Limited in October 2020 before the Honble NCLT, Chennai which is currently at pre-admission hearings stage;

(f) an IBC proceeding has been filed against Bharucha & Motivala Infrastructure Private Limited, being corporate guarantor for the debentures issued by Lake District Realty Private Limited, in November 2019 before Honble NCLT, Mumbai, which is currently at pre-admission hearings stage;

(g) a claim under the CIRP process against Unishire Regency Park LLP before the Honble NCLT, Bangalore in July 2020.

PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

In terms of the provisions of Section 197 of the Act read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said Rules are provided in the Annexure to the Boards Report. Disclosures relating to the remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended also forms part of this Report. However, having regard to the provisions of Section 136 of the Act, the Annual Report excluding the aforesaid information is being sent to all the members of the Company and others entitled thereto. Any member interested in obtaining the said information may write to the Company Secretary. Upon such request the information shall be furnished.

PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE

Your Company has in place a Prevention of Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. An Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this Policy. Following is a summary of sexual harassment complaints received and disposed off during the year:

• No. of complaints received: 0

• No. of complaints disposed of: 0

BUSINESS RESPONSIBILITY REPORT

Business Responsibility Report for the year under review as stipulated under Listing Regulations is presented in the separate section forming part of this Annual Report.

ACKNOWLEDGEMENTS

Your Directors wish to place on record their sincere appreciation for the co-operation received from various regulatory and governmental authorities including SEBI, RBI, Registrar of Companies, Maharashtra at Mumbai, PFRDA, NPS Trust, EPFO, CMPFO, Stock Exchanges, Depositories, Custodians, Bankers, Registrar, Shareholders, Investors and all other business constituents during the year under review. We believe all of them have contributed to our continued growth.

Your Directors also wish to place on record their deep appreciation for the total commitment displayed by all the executives, officers and staff, resulting in yet another eventful performance for the year.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS OF
NIPPON LIFE INDIA ASSET MANAGEMENT LIMITED
(FORMERLY KNOWN AS RELIANCE NIPPON LIFE ASSET MANAGEMENT LIMITED)
Ashvin Dhirajlal Parekh Sundeep Sikka
Director Executive Director & CEO
(DIN:06559989) (DIN: 02553654)
Place : Mumbai
Dated : April 27, 2021