ICICI Bank : Subsidiaries of ICICI Bank – Annual Report FY2021

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ANNUAL REPORT 2020-21

Contents

Twenty-Eighth Annual Report of ICICI Securities Primary Dealership Limited........................................................	2
Annual Accounts of ICICI Securities Limited...........................................................................................................	45
(Twenty-Sixth annual report of ICICI Securities Limited will be available on the Company
website www.icicisecurities.com upon its publication)
(a) Twenty-First Annual Report of ICICI Securities Holdings, Inc............................................................................	86
(b) Twenty-First Annual Report of ICICI Securities, Inc...........................................................................................	94
(c) Annual Report of ICICI Securities Limited Consolidated Financials................................................................	106
Thirty-Third Annual Report of ICICI Venture Funds Management Company Limited..........................................	144
Twenty-Sixth Annual Report of ICICI International Limited...................................................................................	172
Annual Accounts of ICICI Prudential Life Insurance Company Limited................................................................	183
(a) Twelfth Annual Report of ICICI Prudential Pension Funds Management Company Limited..........................	391
Annual Accounts of ICICI Lombard General Insurance Company Limited..........................................................	408
(Twentieth annual report of ICICI Lombard General Insurance Company Limited will be available on the Company
website www.icicilombard.com upon its publication)
Twenty-Second Annual Report of ICICI Home Finance Company Limited..........................................................	445
Twenty-First Annual Report of ICICI Investment Management Company Limited..............................................	508
Twenty-Second Annual Report of ICICI Trusteeship Services Limited.................................................................	526
Eighteenth Annual Report of ICICI Bank UK PLC...................................................................................................	538
Seventeenth Annual Report of ICICI Bank Canada................................................................................................	580
Twenty-Eighth Annual Report of ICICI Prudential Asset Management Company Limited..................................	613
Twenty-Eighth Annual Report of ICICI Prudential Trust Limited...........................................................................	650

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ICICI SECURITIES PRIMARY DEALERSHIP LIMITED

28TH ANNUAL REPORT AND ACCOUNTS 2020-2021

Directors	Auditors	Registered Office
B. Prasanna, Chairman	B S R & Co. LLP	ICICI Centre
Ashvin Parekh	Chartered Accountants	H. T. Parekh Marg
Dilip Karnik		Churchgate
Radhakrishnan Nair	Prachiti D. Lalingkar	Mumbai - 400 020
Anubhuti Sanghai	Company Secretary
Shailendra Jhingan, Managing Director & CEO

directors' report

to the members,

Your Directors have pleasure in presenting the Twenty Eighth Annual Report of ICICI Securities Primary Dealership Limited (the Company) along with the audited financial statement of accounts for the year ended March 31, 2021.

INDUSTRY OVERVIEW

Fiscal 2021 was marked by the Covid-19 pandemic and related disruptions. India began the year in the midst of a country-wide lockdown, which had been imposed on March 25, 2020. The lockdown was one of the most stringent in the world, as per a stringency index developed by the Oxford University. The lockdown and resultant disruptions impacted economic activity.

While India's economic growth had moderated for prior to fiscal 2021, the negative growth in gross domestic product (GDP) in FY2021 was mainly attributable to the pandemic and the resultant lockdown. GDP contracted by 24% year-over-year in the April-June quarter, the steepest contraction on record, as per quarterly data available since 1996. Economic activity was virtually at a standstill in April 2020.

Gradually, the restrictions were relaxed and the government announced an ambitious 'Atmanirbhar' (or 'self-reliant') programme in May 2020 to aid economic growth. The headline 'stimulus' provided under the package was pegged at over ` 20 trillion, of which, more than ` 8 trillion was in the form of liquidity support by the Reserve Bank of India (RBI). A large part of the proposed stimulus was either in the form of credit (such as collateral-free automatic loans to small and medium businesses) or in the form an investment fund (such as ` 1 trillion for an agricultural infrastructure fund).

Economic activity picked up gradually to near normal levels by October 2020, led by the manufacturing sector. The Union government had also prohibited states from imposing arbitrary restrictions under 'Unlock 4' beginning in early September 2020. This reduced uncertainty and aided economic recovery. India's GDP re-entered the positive growth territory in the third quarter of fiscal 2021. Fiscal 2021 full year (real) GDP is expected to have contracted 8%, as per the second advance estimates released by the Central Statistics Office in end-February 2021. Excluding the impact of net indirect taxes and subsidies, another measure of India's output - gross value added (GVA) - is expected to register a slightly lower contraction of 6.5% in FY2021.

Both manufacturing and services GVA are set to have fallen by 8.4% year over year (YoY) in FY2021, as per official estimates. Within services, the 'trade, hotels, transport and communication' segment has been the worst hit with a decrease of 17% YoY in fiscal 2021. On the other hand, agriculture fared relatively with 3% YoY growth as lockdown restrictions did not limit any on-farm activity. On the expenditure-side of GDP, private consumption reduced by 9% and investment spending reduced by 13% during the year. Net exports improved as a driver of GDP growth, as decline in imports outpaced the slowdown in exports.

Headline consumer price (CPI) inflation trended largely higher in the first half of financial year 2021, rising from 5.8% in March-2020 to a six-and-half year high of 7.6% in October 2020. Inflation remained above RBI's upper target band of 6% for eight consecutive months from April to November 2020, with the inflation reading for April 2020 and May 2020 being imputed from incomplete data. The surge in inflation during lockdown months suggests that supply disruptions had a greater impact on inflation compared to demand suppression due to the pandemic, even as tax hikes on auto fuels and intoxicants were big drivers.

Headline inflation has eased since November 2020 and stood at 5.0% in February 2021, within RBI's tolerance band. Inflation averaged 6.2% in FY2021 (till February), higher than FY2020's average of 4.8%.

Core inflation, i.e. CPI excluding food and fuel prices, continued to rise, leading to the Monetary Policy Committee (MPC) members recording their discomfort in the latest available minutes of their February 2021 meeting. Core CPI inflation has risen steadily from 3.9% YoY in March 2020 to 6.0% in February 2021. Other indicators also suggest building up of price pressures. Wholesale Price Index (WPI) inflation has steadily risen from deflation territory in April-July 2020 to a two year-high of

4.2% in February 2021. Similarly, WPI manufactured items inflation has also risen consistently in FY2021 and was 5.8% YoY in February 2021, highest in the data series since 2013. PMI surveys of February also showed that producers were facing increased input price pressures.

RBI in FY2021 has had to contend with two conflicting objectives - managing rising inflation against pandemic-induced growth disruption. Given the impact on economic growth, RBI prioritized supporting growth. RBI had cut interest rates five times between February and October 2019. Thereafter, as economic outlook deteriorated amid emerging Covid-related concerns, RBI again undertook easing measures in February and March 2020. MPC cut the repo rate by 75 basis points (bps) and the reverse repo by 90 bps on March 27, 2020. Further interest rate cuts were effected in April and May 2020. Thus, the repo rate was reduced by a cumulative 115 bps from 5.15% in February 2020 to 4.00% by May 2020, where it has remained flat since then. The reverse repo rate, which is now the effective policy rate, has been reduced by 155 bps over the same time period to 3.35%.

Besides interest rate cuts, RBI also effected easing through unconventional tools. RBI had already introduced 3-yearlong-term repo operations (LTRO) in February 2020. Thereafter, RBI also conducted sector-specific targeted LTRO (TLTROs) in March-April 2020 which provided around ` 1 trillion of liquidity. The aim of TLTROs was to encourage banks to buy investment-grade bonds of the specific sectors. Subsequently, TLTRO 2.0 was introduced to provide relief to the small and mid-sized corporates, including NBFCs and micro finance institutions (MFIs). However, the demand for TLTRO 2.0 was 'lukewarm', as RBI itself noted in its March 2021 bulletin.

The RBI introduced various other liquidity support programmes during the lockdown to ease the stress in financial markets. For example, a special liquidity facility for mutual funds (SLF-MF) of ` 500 billion was introduced in April 2020, to ease any possible redemption pressure on mutual funds, in the wake of closure of some debt mutual funds.

Meanwhile, RBI stepped up its asset purchases in FY2021, evidently with an eye on capping the bond yields and supporting the increased borrowing requirement of the government due to the economic shock. Gross purchases of dated securities including Government Securities and state development loans by RBI under the open market operations (OMOs) amounted to ` 3.8 trillion in FY2021, far higher than

• 1.0 trillion worth of buying in Government Securities in FY2020. OMOs in FY2021 included 'twist' operations (i.e. simultaneous purchase of longer tenure bonds and sale of shorter tenure bonds or bills), purchases of state government debt and intervention in the secondary market.

On the fiscal front, revenues of both the Centre and state governments were hit due to pandemic-related disruptions. However, the Union government tried to offset the impact by hiking taxes on petrol and diesel. Tax revenues recovered in the second half of year with a record high gross goods and services tax (GST) revenue of ` 1.24 trillion in March 2021 rose to a record high of ` 1.24 trillion. Nevertheless, the fiscal situation has deteriorated in FY2021. After having already invoked the escape clause in the Fiscal Responsibility and Budget Management (FRBM) Act in February 2020, the Government effectively suspended the FRBM targets in the Budget presented in February 2021. The Centre pegged its fiscal deficit for FY2021 at 9.5% of GDP (Revised estimate, RE), up from the initial budget estimate of 3.5%. A part of the increase in deficit was due to more transparent provisioning of outstanding food subsidy dues to the Food Corporation of India (FCI). Meanwhile, state finances were impacted by shortfall in their GST collections. The Centre has partially filled the gap by providing ` 1.1 trillion to states through 'back-to-back' loans. The states have pegged fiscal deficit for FY2021 at around 4.1% of GDP, as per RE, versus budget estimate of 2.8%. Budget estimates for FY2022 peg fiscal deficit at 6.8% and around 3.3% for Centre and states respectively.

On the global front as well, FY2021 was a year dominated by the Covid-19 pandemic and resultant lockdowns. Consequently, central banks and governments across the world supported the economy by way of monetary and fiscal stimulus. The US

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directors' report

Continued

Federal Reserve has maintained the fed funds rate target at 0-0.25% since March 2020 and has indicated that it is prepared to look through possible rise in inflation and is in no hurry to raise interest rates, in addition to indulging in unprecedented large scale asset purchases to support the government borrowing program and market liquidity. Meanwhile, the US government has already provided cash transfers to American households, while seeking to further raise government spending.

Meanwhile, global trade was adversely affected due to the pandemic. Global trade volumes fell, compared to the corresponding month last year, in each of the months from April to October 2020, as per the CPB World Trade Monitor. However, trade has recovered in recent months and global trade volume in January 2021 was 6% higher than January 2020. India witnessed an improvement in the trade balance and the current account balance in FY2021 as imports fell faster than exports, helped by lower international crude prices. As per available data, current account recorded a surplus of 1.7% of GDP in April-December of FY2021 compared to a deficit of 1.2% in the corresponding period previous year, and 0.9% deficit for the full year FY2020. Meanwhile, Balance of Payments posted a surplus of US$ 83.9 billion in April-December 2020 versus a surplus of US$ 59.5 billion in FY2020.

FINANCIAL HIGHLIGHTS

The financial performance for fiscal 2021 is summarised in the following table:

		(` in million)
	Fiscal 2020	Fiscal 2021
Gross income	13,915.0	13,853.2
Profit before tax	4,376.6	7,606.6
Tax	1,041.8	1,925.4
Profit for the period	3,334.8	5,681.2
Other Comprehensive Income, net of tax	(20.3)	22.5
Total Comprehensive Income	3,314.5	5,703.7

Appropriations

Total Comprehensive Income for fiscal 2021 is ` 5,703.7 million. The retained earnings available for appropriation are ` 7,945.3 million, taking into account the balance of ` 2,241.6 million brought forward from the previous year.

As per RBI guidelines, standalone primary dealers are permitted to have dividend pay-out ratio of up to 50% provided the capital to risk-weighted assets ratio during all the four quarters of the year is at 20% or above. In view of the significant profits earned by the Company and the comfortable capital adequacy ratio, the Company had requested RBI to permit a higher dividend pay-out ratio. RBI has approved a dividend pay-out ratio of 60% for FY2021. During FY2021, the Company had declared three interim dividends aggregating to 141.00% on the equity share capital of the Company. Further, your Directors have recommended a final proposed dividend of 77% for the year. The Company recommends the aggregate of interim dividends and the final proposed dividend as final dividend. The retained earnings have been appropriated as follows:

		(` in million)
	Fiscal 2020	Fiscal 2021
Capital Reserve	-	473.6
Special Reserve	667.0	1,136.2
Dividend paid on equity shares	1,200.5	3,189.0
Tax on dividend	246.8	-
Retained earnings balance	2,241.6	3,146.5

Debenture Trustees

As per SEBI circular no. CIR/IMD/DF/18/2013 dated October 29, 2013 read with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the details of Debenture Trustees are as under:

Name: IDBI Trusteeship Services Limited

Contact details - Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai - 400 001. Tel No. 022-40807008

OPERATIONAL REVIEW

Fixed Income

The fiscal started with India and the world firmly in grip of the Covid-19 pandemic. A health scare of this scale was unprecedented (with the only reference being the epidemic of 1920) and the governments and central banks responded by massive Fiscal and Monetary easing. RBI reduced the Reverse Repo rate form 4.90% in March 2020 to 3.35% in June 2020, a reduction of 155 bps. RBI also supplied targeted liquidity through various tools resulting in the system turning vastly surplus and driving down short end yields. Yields on 1-year Government securities (G-Sec) in India fell around 200 bps from 5.50% to 3.5%, while the 5-year yield fell around 130 bps. The curve steepened as market contended with surplus liquidity but also a much higher supply due to higher fiscal deficit.

The curves adjusted higher as global markets showed a sharp recovery with equities,

global interest rates and commodities moving sharply higher in the second half of the fiscal. The short end of the curve also gave up gains post the VRR announcement in January 2021, which was seen as the first sign of RBI unwinding the extraordinary measures. This was followed up by the budget which pegged the central borrowing for next year at similar level to this year. The announcement led to a rise in yields and a series of devolvements on Primary Dealers as there was a mismatch between market and RBI expectation on yields.

The year ended with a much steeper yield curve. While the short end was down more than 100 bps, the long end was nearly flat. The year provided the Company with some excellent trading opportunities which it captured well. It was also a challenging year as employees used to a much closer interaction adapted to a new way of working from home in a very dynamic domestic and global environment.

5-year overnight indexed swap (5yr OIS) closed at 5.25% at the end of fiscal 2021 vis-à-vis 4.70% at the start of the fiscal. Yields dropped to a low of 4% in Q1-2021 as RBI cut rates and economic growth was impacted by the country-wide lockdown. Sharp uptick in oil prices and USTs have since pulled 5yr OIS along with it. Like in US, curve steepened in India as well, as market believed that despite high inflation, the normalisation of rates may be delayed. The spread between 5yr OIS and 1yr OIS steepened by 100 bps through the year - from 40bps at the start of FY2021 to 140bps by March 2021. The Company continued to be an active player in the interbank OIS market throughout the year.

Corporate bonds faced an eventful year in fiscal 2021 as yields declined on account of surplus systemic liquidity maintained by RBI in the wake of the Covid-19 pandemic. Curve steepened sharply in the first quarter as the benign rate environment, record high liquidity and TLTRO from RBI led to 3-year point moving down by 110 basis points while 10-year point moved down by 50 basis points in this time frame. Up to 5 year corporate bonds continued to outperform during Q2-2021 and Q3-2021 while 10-year point traded sideways with Mutual Funds witnessing record inflows in their debt oriented schemes. Market turned volatile in Q4-2021 as yields braced for a severe up move in January and February with RBI announcing 14-day Variable Rate Reverse Repo (VRRR) operations, Union Budget announcement and MPC's February monetary policy review although some part of it got reversed in March due to favourable demand-supply dynamics. Overall for the year, 3-year and 10- year points moved lower by 90 basis points and 30 basis points respectively in the benchmark credits while spread papers turned lower by 150 basis points and 50 basis points respectively.

Private placement volumes surged in the first quarter of FY2021 led by bank lending under the TLTRO notified by RBI. Annual corporate bond issuance rose to a lifetime high of ` 7,426 billion (PRIME Database provisional data) in FY2021, growing at 12% over ` 6,631 billion issuance in FY2020. While placement volumes dipped slightly in Q2-2021 and Q3-2021, these increased strongly in Q4-2021 as business momentum returned to Corporate India. PSUs including NABARD, PFC, REC were very large issuers while there were large Government guaranteed issues from BSNL, MTNL and FCI and Government serviced issues from NABARD.

In the PRIME League Tables for FY2021, the Company maintained its 2nd position and ranked above large banks which had been extremely active in TLTRO. The Company's distribution led model led to strong performance in issuance of Government guaranteed / serviced bonds, PSU Bank debt capital and by other PSUs. The Company continued to be active in the NBFC segment where it syndicated for the stronger credits.

During the year, the Company was re-appointed as an investment advisor to the West Bengal State Electricity Distribution Company Limited (WBSEDCL) General Provident Fund, WBSEDCL Pension Fund, WBSEDCL Gratuity Fund, West Bengal State Electricity Board Employees Contributory Provident Fund and CESC Limited Provident Fund. The Company is proactively targeting new clients to increase its presence in this line of business.

Risk Management

As a financial services company, risk management forms the core of our various business operations. The Corporate Risk Management Group (CRMG) is committed to framing effective and contemporary risk management policies, addressing market and credit risk. CRMG has developed comprehensive risk management policies, which seek to minimise risks in the activities of the Company. CRMG develops and maintains models to assess market risks that are constantly updated to capture the dynamic nature of the markets and, thus, participates in the evaluation and introduction of new products and business activities. CRMG also advises the fixed income division by acting as an investment advisor on possible rating migration and thereby enables the Company to effectively protect its capital from possible defaults and rating revisions. CRMG closely monitors the financial profiles of counterparties (private and public sector companies, banks and financial institutions and others) through in-depth analysis, regular interactions with the companies and rating agencies to provide proactive recommendations to the fixed income division.

The Company has an internal Risk Management & IT Strategy Committee comprising members of the Board of Directors of the Company. The Risk Management & IT Strategy Committee is, inter alia, responsible for analysing and monitoring the risks associated with the different business activities of the Company and ensuring adherence to the risk and investment limits set by the Board of Directors.

The Company also has an internal Asset Liability Management Committee comprising officials of the Company. The Asset Liability Management Committee

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directors' report

is, inter alia, responsible for the liquidity risk management, management of market risks, funding and capital planning, profit planning and growth projection, forecasting and analysing of contingency plans and such other business as stipulated by the RBI.

On the basis of the robust risk management framework and regular monitoring of all major risk areas within the Company, the Board is satisfied that there are no factors that could adversely affect the existence of the Company.

OUTLOOK

The economic outlook for the year will significantly depend on how well India is able to cope with the pandemic, in the backdrop of the new second wave of infections that threaten to far exceed the peak seen during the first phase. The potential depth and duration of the pandemic is still uncertain and depends on the study of drivers behind the recent surge in infections, as well as the pace of vaccinations. But renewed lockdown restrictions have already been announced in some districts, especially in states such as Maharashtra that contribute significantly to national GDP. Thus, closing of the output gap may well not be realized in FY2022, and we suspect there has been a large permanent loss in output with economy unlikely to catch up with the pre-pandemic growth trend in the foreseeable future. That said, continued economic recovery is likely and may still fan inflation pressures, particularly given the supply side bottlenecks are likely to take longer to be resolved. This would present a precarious dilemma for RBI and the Monetary Policy Committee and the policy choices they make would have deep implications for the bond market.

Given the economic recovery is still nascent and the country is still firmly in the midst of pandemic, RBI may not wish to allow a premature tightening in financial conditions. Considering the experience of maintaining emergency monetary policy settings for much longer than warranted after the 2008 global financial crisis, RBI has already signalled a calibrated exit by way of steps such as phased reversal of CRR cut that was administered last year, and may further wish to normalize the corridor for overnight rates progressively over the course of the year. We anticipate active steps such as reverse repo hikes as early as in August this year which could be followed by a change in monetary policy stance away from accommodation as well. Moreover, other decisions relating to the liquidity management framework can also trigger earlier rise in overnight rates, and such preferences need close monitoring.

At the same time, RBI signalled that it would actively manage any negative spill overs to the long end of the yield curve and emphasized its commitment to smooth rollout of the government borrowing program. Both the Centre and the state governments are expecting fiscal consolidation in FY2022 after increased deficits in FY2021. Going by the budget estimates of the Centre and various state governments, aggregate net (dated) borrowing would amount to around ` 16 trillion in FY2022, lower than ` 17.9 trillion in FY2021. However, there remains risk of fiscal slippage and extra borrowing requirements of the Government. Moreover, the gross general government borrowings are likely to be only modestly lower compared to FY2021 in the baseline scenario.

RBI's challenge to maintaining easy financial conditions may be further complicated by the rise in global risk free rates. US bond market has witnessed a sharp bear steepening of the yield curve in recent months, despite aggressive bond buying operations from the US Federal Reserve, and additional forward guidance to maintain easy monetary policy. Investors are trying to assess the prospect of a sharp rise in US inflation pressures in the backdrop of extravagant fiscal support backed by money printing, and questioning the durability of central bank support notwithstanding the commitment provided by the monetary authority. Evolution of these economic outcomes will then have significant spill overs for global economic prospects and capital flows, and may exert big influence on RBI monetary policy decisions as well, even as strong buffer of forex reserves would provide a lot of cushion.

Overall, bond market conditions are likely to stay volatile over the course of the year, given considerable uncertainties about the economic outlook and reaction from policy makers. The Company would remain watchful while opportunistically capitalising on favourable developments during the year.

VIGIL MECHANISM

The Company has formulated a Whistle Blower Policy. The policy comprehensively provides an opportunity for any employee/Director of the Company to raise any issues concerning breaches of law, statute or regulation by the Company, accounting policies and procedures adopted for any area or item or any act resulting in financial or reputation loss and misuse of office or suspected/actual fraud and criminal offences. The policy provides for a mechanism to report such concerns to the Audit Committee through specified channels. The policy has been periodically communicated to the employees and also posted on the Company's intranet. The Whistle Blower Policy complies with the requirements of Vigil mechanism as stipulated under Section 177 of the Companies Act, 2013. The details of establishment of the Whistle Blower Policy/Vigil mechanism have been disclosed on the website of the Company.

INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY

The Company has adequate internal controls and processes in place with respect to its financial statements which provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements. These controls and processes are driven through various policies, procedures and certifications. The

processes and controls are reviewed periodically. The Company has a mechanism of testing the controls at regular intervals for their design and operating effectiveness to ascertain the reliability and authenticity of financial information.

AUDITOR'S REPORT

There are no qualifications, reservations or adverse remarks or disclaimers made by the Statutory Auditors in their report.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The CSR Committee of the Company consists of three directors viz., Dilip Karnik (DIN: 06419513), Shailendra Jhingan (DIN: 07636448) and Anubhuti Sanghai (DIN: -08668593).

The Company's primary focus areas for CSR activities are:

• Education
• Health Care
• Skill development and sustainable livelihoods
• Financial inclusion
• Support employee engagement in CSR activities
• Capacity building for corporate social responsibility
• Other areas

The Company partnered with ICICI Foundation for Inclusive Growth to support the cause of elementary education, primary health, sustainable livelihood and skill development to achieve the CSR objectives. The Company has also contributed to the PM Cares Fund, Annamrita Foundation, Maharashtra Social Housing and Action League (MASHAL), Rotary Club Mumbai Charity Trust No 3, Vision Foundation of India, Sri Sathya Sai Sanjeevani Centre for Child Heart Care, Salaam Baalak Trust and Bharatiya Vidya Bhavan for their project called Abhyudaya to support the cause of primary health and other areas.

The Corporate Social Responsibility Policy as approved by the Board is uploaded on the Company's website.

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

EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in form MGT-9 are made available on the website of the Company under corporate governance (https://www. icicisecuritiespd.com/frm_Home.aspx).

PUBLIC DEPOSITS

The Company has not accepted any deposit from the public during the year under review and as such, no amount on account of principal or interest on public deposits was outstanding as on the date of the balance sheet.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The Company, being a non-banking financial company registered with RBI and engaged in the business of acquisition of securities, is exempt from complying with the provisions of Section 186(4) of the Companies Act, 2013 in respect of loans given, investments made, security provided and guarantees given. Accordingly, the disclosures required under the aforesaid section have not been made in this Report.

RELATED PARTY TRANSACTIONS

The Company undertakes various transactions with related parties in the ordinary course of business. The Company has a Board approved policy on related party transactions and an arms' length policy which requires transactions with the group companies to be at arm's length. The policy is annexed herewith as Annexure B.i. The transactions between the Company and its related parties, during fiscal 2021 were in the ordinary course of business and based on the principles of arm's length. The details of material related party transactions at an aggregate level for fiscal 2021 is annexed as Annexure B.ii.

ACHIEVEMENTS DURING THE YEAR

The Company was ranked second in PRIME league tables on the basis of its performance as a debt arranger.

During the year, the Company was voted 1st in "Top Arrangers - Investors' choice for Government Primary Issues, India", and 2nd in "Top sellside firms - Secondary Market - Government Bonds, India" and 4th in "Top Arrangers - Investors' choice for Corporate Primary Issues, India" and 3rd in "Top sellside firms - Secondary Market - Corporate Bonds, India" by 'The Asset' in the Asian Local Currency Bond Benchmark Review 2020.

The Asset Local Currency Bond Benchmark Review 2020 by 'The Asset' has also voted two employees in the Research function of the Company as "Best Individual in Research, India, Rank 5" and "Best Individual in Research, India, Highly Commended" and two employees in the Sales function of the Company as "Best Individual in Sales, India, Rank 2" and "Best Individual in Sales, India, Highly Commended" while two other employees were voted as 5th and "Highly Commended" in Trading.

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