Ref/No/HDFCAMC/SE/2024-25/23 Date- July 3, 2024

National Stock Exchange of India Limited BSE Limited

Exchange Plaza, Plot C/1, Block G, Sir PJ Towers,
Bandra Kurla Complex, Bandra (East), Dalal Street,
Mumbai – 400051. Mumbai – 400001.
Kind Attn: Head – Listing Department Kind Attn: Sr. General Manager – DCS Listing
Department

Dear Sir/Madam,

Sub: Notice of the 25th Annual General Meeting (AGM) and Annual Report 2023-24

Pursuant to Regulations 30 and 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, please find enclosed herewith Notice of the 25th AGM and the Annual Report for the financial year 2023-
24 for your information and records. In compliance with relevant circulars issued by Ministry of Corporate
Affairs and the Securities and Exchange Board of India, the Notice of the AGM along with the Annual Report
are sent only by email to those Members whose email addresses are registered with the Company / Depository
Participant(s). Additionally, the Notice of the AGM and the Annual Report are also being uploaded on the
website of the Company at www.hdfcfund.com.

Further, in terms of Section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management &
Administration) Rules, 2014 (as amended), the Company has fixed July 18, 2024 as the cut-off date to determine
the eligibility of the members to cast their vote through remote e-Voting or through e-Voting during the AGM
scheduled to be held on Thursday, July 25, 2024 at 3.00 p.m. (IST) through Video Conferencing / Other Audio
Visual Means.

This is for your information and records.

Thanking you,

Yours faithfully,
For HDFC Asset Management Company Limited
Sylvia Digitally signed by Sylvia Furtado
DN: c=IN, o=Personal, title=0132,
pseudonym=c9f9e85fb09a43f689f388d9b8d526e0,
2.5.4.20=2ba7a70e85420d41db39726ef5a05bf9d5b2e3
462d9508f4dba3611a8512d899, postalCode=560087,

Furtado
st=Karnataka,
serialNumber=c657741e7c20647b09c19a36b505d1085
88ea658a47cf934129cd9fc4d51aa71, cn=Sylvia Furtado
Date: 2024.07.03 19:39:52 +05'30'

Sylvia Furtado
Company Secretary

Encl: a/a

HDFC Asset Management Company Limited

CIN: L65991MH1999PLC123027
Registered Office :"HDFC House", 2ndFloor, H.T. Parekh Marg, 165-166, Backbay Reclamation, Churchgate, Mumbai-400 020
Tel.: 022 - 6631 6333 Fax: 022 - 6658 0203 Website: www.hdfcfund.com email: [email protected]
 Notice
HDFC Asset Management Company Limited
CIN: L65991MH1999PLC123027
Regd. Office: "HDFC House", 2nd Floor, H.T. Parekh Marg, 165-166, Backbay Reclamation, Churchgate, Mumbai – 400020.
Website: www.hdfcfund.com; Email: [email protected]; Tel: +91(22) 6631 6333; Fax: +91(22)6658 0203.

Notice is hereby given that the Twenty-Fifth Annual General if any, of the Companies Act, 2013 (“the Act”), and
Meeting of the Members of HDFC Asset Management the Rules made thereunder, Securities and Exchange
Company Limited (“the Company”) will be held on Thursday, Board of India (Listing Obligations and Disclosure
July 25, 2024 at 3.00 p.m. (IST) through Video Conferencing Requirements) Regulations, 2015 (including any
(“VC”) / Other Audio Visual Means (“OAVM”), to transact the statutory modification(s) or amendment(s) thereto or
following business(es): re-enactment(s) thereof for the time being in force) and
the Articles of Association of the Company, in addition
ORDINARY BUSINESS: to the sitting fees and reimbursement of expenses
1. Adoption of financial statements being paid/payable to the Non-Executive Directors of
the Company for attending the meetings of the Board
To receive, consider and adopt:
of Directors and its Committees, the Company be and
a. the audited financial statements of the Company is hereby authorized to pay Non-Executive Directors
for the financial year ended March 31, 2024 together of the Company, including Independent Directors, for
with the Reports of Board of Directors and Auditors a period of five years commencing from April 1, 2024 to
thereon; and March 31, 2029, such sum by way of commission as the
Board and/or Committee thereof may determine from
b. the audited consolidated financial statements
time to time, but not exceeding H50,00,000/- per annum
of the Company for the financial year ended
for each Non-Executive Director, including Independent
March 31, 2024 together with the Report of the
Director, subject to overall limit of 1% (one percent) or
Auditors thereon.
such other percentage of the Net Profits of the Company
in any financial year as may be specified under the Act
2. Confirmation of Interim Dividend
from time to time and computed in the manner provided
To confirm the Interim Dividend of H 70/- per equity share under Section 198 of the Act with authority to the
of H 5/- each, for the financial year ended March 31, 2024. Board and/or Committee to determine the manner and
proportion in which the amount be distributed among
3. Re-appointment of Ms. Renu Sud Karnad the said Directors.
To appoint a director in place of Ms. Renu Sud Karnad

RESOLVED FURTHER THAT the Board of Directors
(DIN: 00008064), who retires by rotation and being
of the Company and / or Nomination & Remuneration
eligible, seeks re-appointment.
Committee be and are hereby authorized to do all such
acts, deeds, matters and things as may be deemed
SPECIAL BUSINESS:
necessary to give effect to this resolution.”
4. Approval for fixing commission to Non-Executive
Directors including Independent Directors of the 5.  pproval for re-appointment of Mr. Navneet Munot
A
Company as the Managing Director & Chief Executive Officer of
To consider and if thought fit, to pass the following the Company
resolution as an Ordinary Resolution: To consider and if thought fit, to pass the following
“RESOLVED THAT pursuant to the provisions of resolution, as an Ordinary Resolution:
Sections 149, 197, 198 and other applicable provisions,
 NOTICE

“RESOLVED THAT pursuant to the provisions of (including any statutory amendment(s), modification(s)
Sections 196, 197, 198, 203 read with Schedule V and or re-enactment(s) thereof, for the time being in force),
other applicable provisions, if any, of the Companies approval of the members be and is hereby accorded
Act, 2013 (“the Act”) and the Companies (Appointment to amend the Articles of Association of the Company,
and Remuneration of Managerial Personnel) Rules, 2014, on account of reasons as stated in the Explanatory
the Securities and Exchange Board of India (Listing Statement annexed to this Notice, a copy of which is
Obligations and Disclosure Requirements) Regulations, placed for inspection by the members.
2015 (“Listing Regulations”) (including any statutory

RESOLVED FURTHER THAT the Board of Directors and/
amendment(s), modification(s) or re-enactment(s)
or the Company Secretary be and are hereby severally
thereof, for the time being in force), provisions of Articles
authorized to take all such steps and actions for the
of Association of the Company and subject to the
purpose of making all filling and registrations as may be
approvals of concerned statutory, regulatory and other
required in relation to the aforesaid resolution and to do
authorities, if any, to the extent applicable and required
all such acts, deeds, matters and things and take all such
and pursuant to the recommendation of Nomination &
steps as may be necessary, proper or expedient to give
Remuneration Committee and approval of the Board of
effect to this resolution.”
Directors of the Company, the consent of the members
of the Company be and is hereby accorded to the re-
7.  pproval for extending the benefit and coverage
A
appointment of Mr. Navneet Munot (DIN: 05247228) as
of Employees Stock Option Scheme - 2020 of the
the Managing Director & Chief Executive Officer of the
Company to the eligible employees of HDFC AMC
Company, not liable to retire by rotation, for a period of five
International (IFSC) Limited, a Wholly Owned
(5) years effective from July 1, 2024 upto June 30, 2029 on
Subsidiary of the Company
the terms and conditions including remuneration as set
out in the Explanatory Statement annexed to this Notice To consider and if thought fit, to pass the following
with the authority to the Board of Directors and/or the resolution as a Special Resolution:
Nomination & Remuneration Committee, to alter and/or 
"RESOLVED THAT pursuant to the provisions of Section
vary the terms and conditions of the said re-appointment 62(1)(b) and other applicable provisions, if any, of the
and/or enhance, enlarge, alter or vary the scope and Companies Act, 2013 (“the Act”) and the rules made
quantum of remuneration, perquisites, allowances, thereunder, the relevant provisions of the Memorandum
benefits and amenities payable to him in accordance with and Articles of Association of the Company, the Securities
the provisions of the Act and the rules made thereunder and Exchange Board of India (Share Based Employee
(including any statutory amendment(s), modification(s) or Benefits and Sweat Equity) Regulations, 2021, ("SEBI
re-enactment(s) thereof, for the time being in force), and (SBEB & SE) Regulations"), the SEBI (Listing Obligations
any other applicable laws. and Disclosure Requirements) Regulations, 2015, (“Listing
 ESOLVED FURTHER THAT the Board of Directors
R Regulations”), the Foreign Exchange Management
and/or the Nomination & Remuneration Committee be Act, 1999 (“FEMA”), the rules and regulations framed
and are hereby authorised to do all such acts, deeds, thereunder and any rules, circulars, notifications,
matters and things as it may in its absolute discretion guidelines and regulations issued by Reserve Bank of
deem necessary, proper or desirable, including obtaining India and other applicable laws (including any statutory
any approvals – statutory, contractual or otherwise, in amendment(s), modification(s) or re-enactment(s
relation to the above and execute all such agreements, thereof, for the time being in force) and subject to
documents, instruments and writings as may be required such other approvals, permissions and sanctions as
and to delegate all or any of its powers herein conferred to may be necessary and subject to such conditions and
any Director(s) to give effect to the aforesaid resolution.” modifications as may be prescribed or imposed while
granting such approvals, permissions and sanctions as
6. Amendments to Articles of Association of the Company may be required and pursuant to the recommendation
and approval of the Board of Directors of the Company
To consider and if thought fit, to pass the following
(hereinafter referred to as the ‘Board’ which term shall
resolution as a Special Resolution:
be deemed to include the Nomination & Remuneration
“RESOLVED THAT pursuant to the provisions of Committee duly constituted by the Board which shall be
Section 14 and other applicable provisions of the treated as the Compensation Committee in accordance
Companies Act, 2013 and the Rules made thereunder with Regulation 5 of the SEBI (SBEB & SE) Regulations)
 and in furtherance to the special resolution passed by the 
“RESOLVED THAT pursuant to Regulation 31B of
members at their Annual General Meeting held on July the Securities and Exchange Board of India (Listing
23, 2020, the consent of the members be and is hereby Obligations and Disclosure Requirements) Regulations,
accorded to amend the Employees Stock Option Scheme 2015 (“Listing Regulations”) (including any statutory
- 2020 ("ESOP Scheme 2020/ Scheme") to extend the amendment(s), modification(s) or re-enactment(s)
benefit and coverage of the Scheme of the Company to thereof, for the time being in force), and the applicable
the eligible employees of HDFC AMC International (IFSC) provisions of the Articles of Association of the Company,
Limited, a Wholly Owned Subsidiary of the Company approval of the members be and is hereby accorded for
(“WOS”), exclusively working in India or outside India, the special rights available to HDFC Bank Limited, the
which shall be subsumed within the limit of total number Promoter of the Company pursuant to amalgamation
of equity shares as approved by the members on July 23, of Housing Development Finance Corporation Limited
2020 and in accordance with the provisions of the Scheme. with and into HDFC Bank Limited, to nominate one or
more, but not exceeding four Directors on the Board of

RESOLVED FURTHER THAT the Board be and is hereby
the Company as Nominee Director(s), one of whom shall
authorised to create, offer, issue and allot equity shares
be the Chairman of the Company, subject to relevant
upon exercise of options from time to time by the eligible
provisions of the Companies Act, 2013 and rules made
employees of WOS in accordance with the Scheme and
thereunder, Listing Regulations (including any statutory
such equity shares shall rank pari passu inter se and with
amendment(s), modification(s) or re-enactment(s)
the existing equity shares of the Company, in all respects.
thereof, for the time being in force), and subject to the

RESOLVED FURTHER THAT for the above purpose, approvals of concerned statutory, regulatory and other
the Board be and is hereby authorized to make any authorities, if any, to the extent applicable and required.
modifications, changes, variations, alterations or

RESOLVED FURTHER THAT the Board be and is hereby
revisions in the Scheme from time to time provided such
authorised to do all such acts, deeds, matters and things
variations, modifications, alterations or revisions are not
and execute all such deeds, documents, instruments and
detrimental to the interest of the employees.
writings as may be deemed necessary, expedient and

RESOLVED FURTHER THAT the Board be and is hereby incidental thereto and to delegate all or any of its powers
authorised to do all such acts, deeds, matters and things herein conferred to any director(s) and/ or officer(s) of
and execute all such deeds, documents, instruments and the Company, to give effect to this resolution.”
writings as may be deemed necessary, expedient and
incidental thereto and to delegate all or any of its powers BY ORDER OF THE BOARD
herein conferred to any director(s) and/ or officer(s) of For HDFC Asset Management Company Limited
the Company, to give effect to this resolution.”

8. Approval of special rights available to HDFC Bank Sylvia Furtado

Limited Company Secretary
Mumbai, June 18, 2024 Membership No. A17976
To consider and if thought fit, to pass the following
resolution as a Special Resolution:
 NOTICE

NOTES: Item number(s) 4, 5, 6, 7 and 8 to be transacted at the

Meeting, forms part of this Notice.
1. The Ministry of Corporate Affairs, Government of
India (“MCA”) has permitted conducting of Annual 5. The Board of Directors have declared an Interim Dividend
General Meeting (“AGM”) through VC or OAVM. In this of H 70/- per equity share of H 5/- each of the Company
regard, MCA issued General Circular No. 09/2023 dated for the financial year ended March 31, 2024, instead of
September 25, 2023 read with Circular No. 14/2020 dated the final dividend as proposed earlier. The record date
April 8, 2020, Circular No. 17/2020 dated April 13, 2020, for determining the entitlement of the members to the
Circular No. 20/2020 dated May 5, 2020 and subsequent interim dividend was June 18, 2024.
circulars issued in this regard (collectively referred to as
6. Information regarding particulars of the Director(s)
“MCA Circulars”), prescribing the procedure and manner
seeking re-appointment as required the provisions
of conducting the AGM through VC / OAVM. Further,
of SS-2 and as per Regulation 36(3) of the Listing
the Securities and Exchange Board of India (“SEBI”)
Regulations, as applicable, forms part of this Notice.
also vide its Master Circular dated July 11, 2023 read
The Company has received the requisite consent/
with Circular dated October 7, 2023 ("SEBI Circulars")
declarations from the Directors for their re-appointment
and other applicable circulars issued in this regard has
under the Act and the rules made thereunder.
provided relaxations from compliance with certain
provisions of the SEBI (Listing Obligations and Disclosure 7. In terms of provisions of Section 107 of the Act since the
Requirements) Regulations, 2015 (“Listing Regulations”). resolutions as set out in the notice are being conducted
In compliance with the applicable provisions of the through e-voting, the said resolutions will not be decided
Companies Act, 2013 (“the Act”), Secretarial Standards by show of hands at the AGM.
on General Meeting issued by the Institute of Company
8. Members attending the AGM through VC/OAVM will be
Secretaries of India (“SS-2”), MCA and SEBI Circulars /
counted for the purpose of reckoning the quorum under
Listing Regulations, the 25th AGM of the Company will be
Section 103 of the Act.
held through VC / OAVM.
9. SEBI has mandated that the security holders (holding
2. Since the AGM will be held through VC / OAVM the
securities in physical form), whose folio(s) do not have
route map is not annexed in this Notice. The Registered
PAN or contact details or mobile no. or bank account
Office of the Company will be deemed to be the venue
details or specimen signature updated, shall be eligible
of the AGM. Pursuant to Regulation 44(6) of Listing
for any dividend payment in respect of such folios, only
Regulations, the Company shall provide live webcast of
through electronic mode with effect from April 1, 2024,
proceedings of AGM from 3:00 p.m. (IST) onwards on July
only upon furnishing the PAN, contact details including
25, 2024. Members can view the proceedings of AGM by
mobile number, bank account details and specimen
logging on to the e-voting website of KFintech at https://
signature. As per the provisions of Section 72 of the Act,
emeetings.kfintech.com/ using their remote e-voting
the facility for registration of nomination is available for
credentials, where the e-voting Event Number (“EVEN”)
the members in respect of the shares held by them. Also,
of Company will be displayed.
furnishing of PAN, KYC details (i.e., postal address with
3. Pursuant to the provisions of the Act, a member entitled pin code, email address, mobile number, bank account
to attend and vote at the AGM is entitled to appoint one details), specimen signature and nomination details by
or more proxies to attend and vote on his/her/their behalf holders of securities is mandated by SEBI. Any service
and the proxy need not be a member of the Company. requests or complaints received from the member,
Since this AGM is being held through VC/OAVM pursuant will not be processed by RTA till the aforesaid details/
to the MCA Circulars, physical attendance of members documents are provided to RTA.
has been dispensed with and the facility for appointment
10. Members holding shares in demat form are requested to
of proxy by the members is not available for this AGM
provide their e-mail address, mobile number, bank details
and hence the Proxy Form and Attendance Slip are not
and details relating to nomination to their Depository
annexed to this Notice.
Participant(s) ("DP's"), in case the same are not updated.
4. An Explanatory Statement pursuant to Section 102
11. Members holding shares in demat form are hereby
of the Act read with the Listing Regulations and SS-2,
informed that bank particulars registered with their
setting out material facts relating to business(es) under
respective DP's, with whom they maintain their demat
accounts, will be used by the Company for the payment
 of dividend. The Company or KFin Technologies Limited 16. Members holding shares in the dematerialised form
("KFintech"), the Registrar & Share Transfer Agent ("RTA") may contact their DP's for recording the nomination in
of the Company cannot act on any request received respect of their holdings.
directly from the members holding shares in demat form
17. Forms ISR-1, ISR-3, ISR-4 & SH-13 alongwith the
for any change or updation of bank particulars. Such
supporting documents as stated above are required to be
changes/updation are to be intimated only to the DP's of
submitted to KFintech at the address mentioned below:
the members. In case, the Company is unable to pay the
dividend to any shareholder by the electronic mode, due KFin Technologies Limited (Formerly KFin Technologies
to non-availability of the details of the bank account, the Private Limited)
Company shall dispatch the dividend warrant/demand Unit: HDFC Asset Management Company Limited
draft to such shareholders.
Selenium Tower B, Plot 31-32,
12. Pursuant to Finance Act, 2020 and applicable provisions Financial District, Nanakramguda,
of the Income-tax Act, 1961, dividend income will be
Serilingampally Mandal, Hyderabad, Telangana - 500032
taxable in the hands of shareholders and the Company
is required to deduct tax at source from dividend Toll Free No.: 1800-309-4001
paid to shareholders at the prescribed rates. For E-mail: [email protected]
detailed information on the same, please refer the Website: https://www.kfintech.com or https://ris.
Company’s website at https://www.hdfcfund.com/ kfintech.com/
aboutus/governance/dividend.
Members are requested to note that, KFintech has
13. SEBI vide its master circular for Online Dispute Resolution launched a mobile application - KPRISM and a website
dated July 31, 2023 (updated as on August 4, 2023 and https://kprism.kfintech.com/ for our members.
December 20, 2023), has provided an online dispute redressal Now, members can download the mobile app and see
forum/portal for redressing the unresolved queries of the portfolios serviced by KFintech, check dividend status,
shareholder(s) arising in the Indian Securities Market. The said request for annual reports, change address, change/
circular can be accessed on the website of the Company. In this update bank mandate and download standard forms.
connection, the shareholder(s) are requested to address and The android mobile application can be downloaded from
send their grievance(s) / queries / complaints directly to the Play Store by searching for “KPRISM”.
Company’s RTA viz. KFintech at [email protected]
and if the grievance is not redressed satisfactorily by RTA, the 18. Pursuant to the provisions of the Listing Regulations,
shareholders are requested to forward the grievance to the the Company is maintaining an E-mail ID, shareholders.
Company directly at [email protected]. [email protected] exclusively for prompt
redressal of members/ investors grievances.
If the grievance still persist, escalation can be made on
the SCORES Portal at scores.gov.in in accordance with 19. In compliance with the aforesaid MCA Circulars and
the SCORES guidelines and the process laid out therein. Listing Regulations, Notice of the AGM along with
Further, if the shareholder is still not satisfied with the the Annual Report FY 2023-24 are being sent only
outcome, then he/she/it can initiate the dispute resolution through electronic mode to those Members whose
process on the ODR Portal at https://smartodr.in/login. e-mail addresses are registered with the Company/
Depositories, unless any member has requested for
14. Pursuant to the provisions of Sections 124 and 125 of a hard copy of the same. Members may note that the
the Act read with the relevant rules made thereunder, Notice and Annual Report of FY 2023-24 will also be
there is no amount of Dividend remaining unclaimed/ available on the Company’s website at www.hdfcfund.
unpaid for a period of 7 (seven) years and/or unclaimed com, website of the Stock Exchanges i.e. BSE Limited
equity shares which are required to be transferred to the and National Stock Exchange of India Limited at www.
Investor Education and Protection Fund (IEPF). bseindia.com and www.nseindia.com, respectively
15. Members who hold shares in the physical form can and on the website of KFintech at https://evoting.
nominate a person in respect of all the shares held by kfintech.com/. Request for a hard copy of the aforesaid
them singly or jointly. Members who hold shares in single documents may be made by the members by sending
name are advised, in their own interest, to avail of the request to the following investor e-mail ids -einward.
nomination facility by filling Form No. SH-13 or Form ISR- [email protected] / shareholders.relations@hdfcfund.
3 (Declaration to Opt-out). com mentioning their Folio No./DP ID and Client ID.
 NOTICE

20. Members who have not registered their email addresses PROCEDURE FOR E-VOTING
so far are requested to register them for receiving all
i. In compliance with the provisions of Section 108 of the
communication including Annual Report and Notice from
Act, read with Rule 20 of the Companies (Management
the Company electronically.
and Administration) Rules, 2014, Regulation 44 of the
21. The Statutory Registers, certificate from Secretarial Listing Regulations, as amended from time to time
Auditors of the Company certifying that the ESOP and in terms of SEBI master circular no. SEBI/HO/CFD/
Schemes of the Company are being implemented PoD2/CIR/P/2023/120 dated July 11, 2023 in relation
in accordance with the SEBI (Share Based Employee to e-voting Facility provided by Listed Entities, the
Benefits and Sweat Equity) Regulations, 2021 and all the members are provided with the facility to cast their vote
documents referred to in the accompanying Notice and electronically, through the e-voting services provided by
Explanatory Statement shall be available for inspection KFintech, on all the resolutions set forth in this Notice.
through electronic mode, basis the request being sent The instructions for e-voting are given herein below.
on [email protected].
ii. Pursuant to the above referred circular on “e-voting
22. Instructions for e-voting and joining AGM though VC/ facility provided by Listed Companies”, e-voting process
OAVM: has been enabled to all the individual demat account
holders, by way of single login credential, through their
Pursuant to the provisions of Section 108 of the Act,
demat accounts/websites of Depositories/DP's in order
read with Rule 20 of the Companies (Management
to increase the efficiency of the voting process.
and Administration) Rules, 2014, Regulation 44 of the
Listing Regulations, as amended from time to time, MCA iii. Individual demat account holders would be able to
Circulars and SS-2, the Company is pleased to provide cast their vote without having to register again with
the e-voting facility to its members to cast their vote the e-voting service provider (ESP) thereby not only
electronically, through the e-voting services provided by facilitating seamless authentication but also ease
KFintech on all resolutions set forth in this Notice. and convenience of participating in e-voting process.
Shareholders are advised to update their mobile number
The remote e-voting period will commence at 10:00
and e-mail ID with their DP's to access e-voting facility.
a.m. (IST) on July 21, 2024 and will end at 5:00 p.m. (IST)
on July 24, 2024. Remote e-voting shall not be allowed iv. The remote e-voting period commences on July 21, 2024
beyond the aforesaid date and time. at 10:00 a.m. (IST).

The Members, whose names appear in the Register of v. The voting rights of Members shall be in proportion to
Members / list of Beneficial Owners as on July 18, 2024, their share(s) in the paid-up equity share capital of the
being the cut-off date, are only entitled to vote on the Company as on the Cut-off date.
Resolutions set forth in this Notice.
vi. Any person holding shares in physical form and non-
The Company has appointed Mr. Surjan Singh Rauthan individual shareholders, who acquires shares of the
(C.P. 3233), Proprietor of S. S. Rauthan & Associates, Company and becomes a member of the Company
Practicing Company Secretaries to act as the Scrutiniser, after sending of the Notice and holding shares as of the
to scrutinize the entire e-voting process at the AGM and Cut-Off date, may obtain the login ID and password by
remote e-voting in a fair and transparent manner. sending a request at [email protected]. However,
if he/she is already registered with KFintech for remote
The Members desiring to vote through remote e-voting
e-voting then he/she can use his/her existing User ID and
are requested to refer to the detailed procedure
password for casting the vote.
given hereinafter.
vii. In case of Individual shareholders holding shares in
demat mode and who acquires shares of the Company
and becomes a member of the Company after sending of
the Notice and holding shares as on the Cut-Off date may
follow steps mentioned below under “Login method for
remote e-voting and joining virtual meeting for Individual
shareholders holding securities in demat mode.”
viii. The details of the process and manner for remote e-voting are explained herein below:


Step 1 : Access to Depositories e-Voting system in case of individual shareholders.

Step 2 : Access to KFintech e-Voting system in case physical and non-individual shareholders.

Step 3 : Access to join AGM of the Company through VC/OAVM on KFintech e-Voting System and cast your vote during
the meeting.

Details on Step 1 are mentioned below:

 ethod of login/access to Depositories (NSDL/CDSL) e-voting system in case of individual members holding shares in
M
demat mode

Type of shareholders Login Method

Individual Shareholders 1. User already registered for IDeAS facility:
holding securities in I. Visit URL: https://eservices.nsdl.com
demat mode with NSDL
II. Click on the “Beneficial Owner” icon under “Login” under ‘IDeAS’ section.
III. On the new page, enter User ID and Password. Post successful authentication, click on “Access to
e-Voting”
IV. Click on company name or e-Voting service provider and you will be re-directed to e-Voting service
provider website for casting the vote during the remote e-Voting period.
2. User not registered for IDeAS e-Services
I. To register click on link : https://eservices.nsdl.com
II. Select “Register Online for IDeAS” or click at https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp
III. Proceed with completing the required fields.
IV. Follow steps given in points 1.
3. Alternatively by directly accessing the e-Voting website of NSDL
I. Open URL: https://www.evoting.nsdl.com/
II. Click on the icon “Login” which is available under ‘Shareholder/Member’ section.
III. A new screen will open. You will have to enter your User ID (i.e. your sixteen digit demat account number
held with NSDL), Password / OTP and a Verification Code as shown on the screen.
IV. Post successful authentication, you will requested to select the name of the company and the e-Voting
Service Provider name, i.e.KFintech.
V. On successful selection, you will be redirected to KFintech e-Voting page for casting your vote during the
remote e-Voting period.
Individual Shareholders A. Users who have opted for Easi/Easiest:
holding securities in 1. Shareholders can login through their user ID and password. Option will be made available to reach e-voting
demat mode with CDSL page without any further authentication. The URL for users to login to Easi/Easiest is www.cdslindia.com
and click on login icon & My Easi New.
2. After successful login of Easi/Easiest the user will be also able to see the e-voting Menu. The Menu will have
links of e-voting service provider i.e.KFintech. Click on KFintech e-voting ser-vice provider to cast your vote
B. Users who have not opted for Easi/Easiest:
Option to register for Easi/Easiest is available at cdsl website www.cdslindia.com and click on login icon & My
Easi New and then click on registration option.
C. Visit the e-voting website of CDSL
1. Alternatively, the user can directly access e-voting page by providing demat Account Number and PAN No.
from a link in www.cdslindia.com home page. The system will authenticate the us-er by sending OTP on
registered Mobile & e-mail as recorded in the demat Account.
2. After successful authentication, user will be provided links for the respective ESP where the e-voting is in
progress.
 NOTICE

Type of shareholders Login Method

Individual Shareholder I. You can also login using the login credentials of your demat account through your DP registered with NSDL /
login through their demat CDSL for e-Voting facility.
accounts / Website of II. Once logged-in, you will be able to see e-Voting option.Once you click on e-Voting option, you will be redirected
Depository Participant to NSDL / CDSL Depository site after successful authentication, wherein you can see e-Voting feature.
III. Click on options available against company name or e-Voting service provider – Kfintech and you will be
redirected to e-Voting website of KFintech for casting your vote during the remote e-Voting period without any
further authentication.

Important note: Members who are unable to retrieve User ID / Password are advised to use Forgot user ID and Forgot Password
option available at respective websites.

Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through
Depository i.e. NSDL and CDSL.

Type of shareholders Login Method

Securities held with NSDL Please contact NSDL helpdesk by sending a request at [email protected] or call at toll free no.:
022- 48867000/022-24997000
Securities held with CDSL Please contact CDSL helpdesk by sending a request at [email protected] or contact at 1800-22-55-33

Details on Step 2 are mentioned below: a secret question and answer of your choice to
Login method for e-Voting for shareholders other than retrieve your password in case you forget it. It is
Individual’s shareholders holding securities in demat mode strongly recommended that you do not share your
and shareholders holding securities in physical mode. password with any other person and that you take
utmost care to keep your password confidential.
(A) Members whose email IDs are registered with the
Company/ Depository Participants, will receive an email v. You need to login again with the new credentials.
from KFintech which will include details of E-Voting Event
vi. On successful login, the system will prompt you to
Number (EVEN), USER ID and password. They will have to
select the “EVEN” i.e., HDFC ASSET MANAGEMENT
follow the following process:
COMPANY LIMITED- AGM” and click on “Submit”
i. Launch internet browser by typing the URL: https://
vii. On the voting page, enter the number of shares
emeetings.kfintech.com/
(which represents the number of votes) as on
ii. Enter the login credentials (i.e. User ID and the Cut-off Date under “FOR/AGAINST” or
password). In case of physical folio, User ID will be alternatively, you may partially enter any number
EVEN (E-Voting Event Number) 8111, followed by in “FOR” and partially “AGAINST” but the total
folio number. In case of Demat account, User ID number in “FOR/AGAINST” taken together shall not
will be your DP ID and Client ID. However, if you exceed your total shareholding as mentioned herein
are already registered with KFintech for e-voting, above. You may also choose the option ABSTAIN.
you can use your existing User ID and password for If the Member does not indicate either “FOR” or
casting the vote. “AGAINST” it will be treated as “ABSTAIN” and the
shares held will not be counted under either head.
iii. After entering these details appropriately, click on
“LOGIN”. viii. Members holding multiple folios/demat accounts
shall choose the voting process separately for each
iv. You will now reach password change Menu wherein
folio/ demat accounts.
you are required to mandatorily change your
password. The new password shall comprise of ix. Voting has to be done for each item of the notice
minimum 8 characters with at least one upper case separately. In case you do not desire to cast
(A- Z), one lower case (a-z), one numeric value (0-9) your vote on any specific item, it will be treated
and a special character (@,#,$, etc.,). The system as abstained.
will prompt you to change your password and
x. You may then cast your vote by selecting an
update your contact details like mobile number,
appropriate option and click on “Submit”.
email ID etc. on first login. You may also enter
 xi. A confirmation box will be displayed. Click “OK” to recommended to use Stable Wi-Fi or LAN Connection to
confirm else “CANCEL” to modify. Once you have mitigate any kind of aforesaid glitches.
voted on the resolution (s), you will not be allowed
v. As the AGM is being conducted through VC / OAVM,
to modify your vote. During the voting period,
for the smooth conduct of proceedings of the AGM,
Members can login any number of times till they
Members are encouraged to express their views / send
have voted on the Resolution(s).
their queries in advance mentioning their name, demat
xii. Corporate/Institutional Members (i.e. other than account number / folio number, email id, mobile number
Individuals, HUF, NRI etc.) are also required to at [email protected]. Questions /
send scanned certified true copy (PDF Format) queries received by the Company till July 18, 2024 shall
of the Board Resolution/Authority Letter etc., only be considered and responded during the AGM.
authorizing its representative to attend the AGM
vi. The Members who have not cast their vote through
through VC / OAVM on its behalf and to cast its vote
remote e-voting shall be eligible to cast their vote
through remote e-voting. together with attested
through e-voting system available during the AGM.
specimen signature(s) of the duly authorised
E-voting during the AGM is integrated with the VC /
representative(s), to the Scrutinizer at email id
OAVM platform. The Members may click on the voting
[email protected] with a copy marked
icon displayed on the screen to cast their votes.
to [email protected]. The scanned image of
the above-mentioned documents should be in the vii. A Member can opt for only single mode of voting i.e.,
naming format “Corporate Name_Even No.” through Remote e-voting or voting at the AGM. If a
Member casts votes by both modes, then voting done
Details on Step 3 are mentioned below: through Remote e-voting shall prevail and vote at the
Instructions for all the shareholders, for attending the AGM AGM shall be treated as invalid.
of the Company through VC/OAVM and e-Voting during viii. Facility of joining the AGM through VC / OAVM shall be
the meeting. available for at least 2000 members on first come first
i. Member will be provided with a facility to attend the AGM served basis.
through VC / OAVM platform provided by KFintech. ix. Institutional Members are encouraged to attend and
Members may access the same at https://emeetings. vote at the AGM through VC / OAVM.
kfintech.com/ by using the e-voting login credentials
provided in the email received from the Company/ OTHER INSTRUCTIONS
KFintech. After logging in, click on the Video Conference
I. Speaker Registration: The Members who wish to speak
tab and select the EVEN of the Company. Click on the video
during the meeting may register themselves as speakers
symbol and accept the meeting etiquettes to join the meet-
for the AGM to express their views. They can visit https://
ing. Please note that the members who do not have the
emeetings.kfintech.com and login through the user id
User ID and Password for e-Voting or have forgotten the
and password provided in the mail received from Kfintech.
User ID and Password may retrieve the same by following
On successful login, select ‘Speaker Registration’ which
the remote e-Voting instructions mentioned above.
will opened during the evoting window period. Members
ii. Facility for joining AGM though VC/ OAVM shall open shall be provided a ‘queue number’ before the meeting.
atleast 30 minutes before the commencement of The Company reserves the right to restrict the speakers
the Meeting. at the AGM to only those Members who have registered
themselves, depending on the availability of time for
iii. Members are encouraged to join the Meeting through
the AGM.
Laptops/ Desktops with Google Chrome (preferred
browser), Safari, Microsoft Edge, Mozilla Firefox 22. II.  ost your Question: The Members who wish to post
P
their questions prior to the meeting can do the same
iv. Members will be required to grant access to the webcam
by visiting https://emeetings.kfintech.com. Please
to enable VC / OAVM. Further, Members connecting from
login through the user id and password provided in the
Mobile Devices or Tablets or through Laptop connecting
mail received from Kfintech. On successful login, select
via Mobile Hotspot may experience Audio/Video loss due
‘Post Your Question’ option which will opened during the
to fluctuation in their respective network. It is therefore
evoting window period
 NOTICE

III. In case of any query and/or grievance, in respect of EXPLANATORY STATEMENT UNDER SECTION
voting by electronic means, Members may refer to the 102(1) OF THE COMPANIES ACT, 2013
Help & Frequently Asked Questions (FAQs) and E-voting
ITEM NO. 4
user manual available at the download section of
https://evoting.kfintech.com (KFintech Website) or call The Members of the Company at their 20 th Annual
Ms. Krishna Priya Maddula, Senior manager (KFintech) at General Meeting held on July 16, 2019, had approved the
phone no. 040-67161510. Please contact KFintech’s toll payment of remuneration by way of commission to the
free No. 1800-3094-001 for any further clarifications. Non-Executive Directors of the Company, for a period of
five years commencing from April 1, 2019 to March 31, 2024,
IV. The Members, whose names appear in the Register of a sum not exceeding one percent (1%) of the net profits of
of Members / list of Beneficial Owners as on July 18, the Company in any financial year calculated in accordance
2024, being the cut-off date, are entitled to vote on the with the provisions of the Companies Act, 2013 (“the Act”)
Resolutions set forth in this Notice. A person who is with authority to the Board and/or Committee thereof, to
not a Member as on the cut-off date should treat this determine the manner and proportion in which the amount be
Notice for in-formation purposes only. Once the vote on distributed among the said Directors.
a resolution(s) is cast by the Member, the Mem-ber shall
not be allowed to change it subsequently. Accordingly, the Company basis the recommendation of
Nomination & Remuneration Committee and approval of the
V. In case a person has become a Member of the Company Board of Directors, has paid commission to Non-Executive
after dispatch of AGM Notice but on or before the cut- Directors of the Company as detailed below:
off date for E-voting, he/she may obtain the User ID and
Password in the manner as mentioned below: #Commission per
Financial Year
Non-Executive Directors
i. If the mobile number of the member is registered 2019-20 H 20,00,000/-
against Folio No./ DP ID Client ID, the member 2020-21 H 20,00,000/-
may send SMS: MYEPWD <space> E-Voting Event 2021-22 H 20,00,000/-
Number+Folio No. or DP ID Client ID to 9212993399 2022-23 H 25,00,000/-
1. Example for NSDL: 2023-24 *H 25,00,000/-

2. MYEPWD <SPACE> IN12345612345678 # the above commission was paid on proportionate basis
*Commission will be paid after the financial statements are approved by
3. Example for CDSL: the Shareholders at the Annual General Meeting to be held on July 25, 2024.

4. MYEPWD <SPACE> 1402345612345678 The shareholders’ approval for the payment of commission
5. Example for Physical: to Non-Executive Directors including the Independent
Directors, as mentioned above was valid till March 31, 2024.
6. MYEPWD <SPACE> XXXX1234567890 Now a fresh approval is required from the members pursuant
ii. If e-mail address or mobile number of the member to the provisions of Sections 149, 197, 198 and other applicable
is registered against Folio No. / DP ID Client ID, then provisions, if any, of the Act and SEBI (Listing Obligations
on the home page of https://emeetings.kfintech. and Disclosure Requirements) Regulations, 2015 ("Listing
com/forgotpassword.aspx, the member may click Regulations"), considering their significant professional
“Forgot Password” and enter Folio No. or DP ID expertise and rich experience across the wide spectrum of
Client ID and PAN to generate a password. functional areas.

iii. Members who may require any technical assistance The Board is of the view that it is necessary that adequate
or support before or during the AGM are requested compensation be given to the Non-Executive Directors
to contact KFintech at toll free number 1-800-309- including the Independent Directors commensurate with
4001 or write to them at [email protected]. the time devoted and the contribution made by them and
accordingly, the Board of Directors at its meeting held on
VI. The results of the electronic voting shall be declared to June 7, 2024 based on the recommendation of Nomination
the Stock Exchanges after the AGM. The results along & Remuneration Committee, had recommended for the
with the Scrutinizer’s Report, shall also be placed on the approval of the Members, payment of remuneration by
website of the Com-pany. way of commission to Non-Executive Directors, including
Independent Directors of the Company such sum not
exceeding Rs.50,00,000/- per annum for each Non-Executive upto June 30, 2029 subject to the approval of Members of
Director, including Independent Director, subject to overall the Company. Accordingly, the Company will enter into an
limit of 1% (one percent) or such other percentage of the agreement with Mr. Munot incorporating the terms and
Net Profits of the Company in any financial year as may be conditions of his re-appointment as the MD & CEO of the
specified under the Act from time to time and computed in the Company, subject to the approval of the shareholders.
manner provided under Section 198 of the Act for a period not
Mr. Navneet Munot, MD & CEO of the Company brings with
exceeding five years with effect from April 1, 2024, as set out
him over three decades of experience in the financial services
in the Resolution.
industry. Mr. Munot has received numerous awards and
In terms of Section 197 of the Act, a Company can make recognitions for his outstanding contributions. As an industry
payment of remuneration to Non-Executive Directors leader and seasoned professional in the asset management
including Independent Directors, a sum not exceeding 1% industry, he has materially contributed to the Company's
of the net profits of the Company in any financial year as the growth. He has built on the Company’s strong foundations
Board and/or Committee thereof may determine from time of scale, quality and profitability, with consistent focus on
to time. The said remuneration to Non-Executive Directors long-term sustainable growth of the Company. In addition
shall be in addition to the sitting fees payable to them and to his role within the Company, Mr. Munot serves as the
reimbursement of expenses incurred for attending meetings Chairman of the Association of Mutual Funds in India and had
of the Board and Committees thereof. chaired Advisory Committee on Environmental, social, and
governance constituted by SEBI. Brief profile of Mr. Navneet
It may be noted that Mr. V. Srinivasa Rangan Non-Executive
Munot, his experience, qualifications and other details have
Director nominated by HDFC Bank Limited ("HDFC Bank"),
been included in the Annexure to this Notice.
Promoter of the Company, shall not be eligible to receive any
sitting fees or any other remuneration from the Company His re-appointment terms including his remuneration was
pursuant to the HDFC Bank’s policy. fixed in accordance with Sections 196, 197, 198 and Schedule
V to the Act considering his performance and growth in the
Accordingly, the Board recommends the passing of the
Company. The terms and conditions of the re-appointment
Ordinary Resolution as set out at Item No. 4 of this Notice, for
including remuneration payable to Mr. Munot is more
the approval of the Members.
particularly set out in the agreement by and between the
Non-Executive Directors including Independent Directors Company and Mr. Munot, mentioned briefly hereunder:
and their relatives, are interested in this Resolution in so far
as the same relates to their respective commission. Further, For the period effective from July 01, 2024 up to June 30, 2029:
Executive Director and Key Managerial Personnel of the (a) Salary -
Company or their relatives are not in any way concerned or
interested, financially or otherwise, in the resolution as set The gross salary payable to Mr. Navneet Munot shall be
out at Item No. 4 of this Notice. in the range of H 38,00,000/- to H 75,00,000/- per month.
It shall include House Rent allowance, Conveyance
ITEM NO. 5 Allowance and personal pay but shall not include cost of
other allowances/benefits and statutory contributions.
The Members of the Company at their Annual General Meeting
The gross salary will be subject to an annual increase,
(“AGM”) held on July 16, 2021, approved appointment of
which will be within the range as stated above, starting
Mr. Navneet Munot as the Managing Director & Chief Executive
from April 1st of financial year 2025-26 and the quantum
Officer ("MD & CEO") of the Company for a period effective
will be decided by the Board of Directors on the
from February 16, 2021 upto June 30, 2024. In the said AGM,
recommendation of the Nomination & Remuneration
the Shareholders also approved terms and conditions of his
Committee (“NRC”). The annual increase may be subject
appointment including remuneration.
to such other variations as may be decided by the Board
As Mr. Munot’s current term of appointment as MD & CEO is on the recommendation of the NRC from time to time.
due to expire on June 30, 2024, the Board of Directors at its
(b) Commission (performance related bonus) per annum
meeting held on June 7, 2024, based on the recommendation
shall be equivalent to such sum as may be fixed by the
of the Nomination & Remuneration Committee, considered
Board of Directors or NRC but shall not exceed 200% of
re-appointment of Mr. Navneet Munot (DIN: 05247228) as
the gross salary p.a. subject to a ceiling of 1% of the net
the MD & CEO of the Company, not liable to retire by rotation,
profits of the Company.
for a further period of five years effective from July 1, 2024
 NOTICE

(c) Expenses incurred for travelling, boarding, be the MD & CEO, if he ceases to hold office of a Director
lodging, conveyance, etc. during business trips and due to any cause.
communication expenses for the business purpose
(j) The said Agreement also contain other standard
shall be reimbursed at actuals and not be considered
terms and conditions of employment, such as
as perquisites.
duties and responsibilities, representations and
(d) He shall be entitled to club membership subject to a warranties, confidentiality and intellectual property
maximum of two clubs and also club membership of rights protection, indemnity, term and termination,
hotels / business centers. non‑compete and non-solicitation, data protection, etc.

(e) He shall be entitled to other benefits which shall include Currently, the gross salary payable to Mr. Munot H 39,14,035/-
use of car with driver along with maintenance, telephone per month (excluding benefits and statutory contributions
for the Company’s business at residence (the expenses such as employee provident fund, leave travel allowance and
whereof would be borne and paid by the Company), any gratuity), which is within the overall range as stated above. A
insurance premium paid for health and life as per the commission (performance related bonus) of H 3,86,81,200/-
Company’s policies, mobile handset and monthly plan was paid to him for financial year 2023-24 and the same is within
reimbursement as per Company’s policy, contribution the 1% of the net profits of the Company as stated above.
to provident fund and all other benefits as are applicable
A copy of the aforesaid Agreement between the Company and
to other senior employees of the Company (including
Mr. Munot is available for inspection.
but not limited to gratuity, leave entitlement, leave
travel allowance and other benefits as may be approved It is proposed to seek Members’ approval for the
by the NRC/ Board from time to time). The perquisites re-appointment of and remuneration payable to Mr. Munot as
shall be valued as per the Income Tax Act, 1961, stated above, in terms of the applicable provisions of the Act.
wherever applicable.
The Company has received from Mr. Munot his consent in
(f) He shall also be eligible for stock options under the writing to act as MD & CEO of the Company. Mr. Munot satisfies
Company’s Employee Stock Option Scheme(s) or all the conditions set out in Part-I of Schedule V to the Act and
its equivalent (by whatever name called), as may be also conditions set out under sub‑section (3) of Section 196
approved by the NRC, from time to time. of the Act for being eligible for this re-appointment. He is not
disqualified from being re-appointed as Director in terms of
(g) The scope and quantum of remuneration, benefits and
Section 164 of the Act and is not debarred from holding the
amenities specified hereinabove, may be enhanced,
office of director by virtue of any order passed by SEBI or any
enlarged, widened, altered or varied by the Board
such authority. The Company has, in terms of Section 160
and/ or NRC in the light of and in conformity with any
of the Act, received a notice from a member, proposing his
amendments to the relevant provisions of the Act and/
candidature for the office of Director.
or the rules and regulations made thereunder and/ or
such guidelines as may be notified by the regulatory The Board recommends the passing of the Ordinary
authorities from time to time. Resolution as set out at Item No. 5 of this Notice, for the
approval of the Members.
(h) The total remuneration payable to Mr. Munot including
salary, commission and value of the stock options treated Except for Mr. Munot and his relatives, none of the other
as perquisites shall not exceed the limits prescribed Directors or Key Managerial Personnel of the Company
under Section 197 of the Act including any amendment, or their relatives are in any way concerned or interested,
modification, variation or re-enactment thereto. The financially or otherwise, in the resolution as set out at Item No.
valuation of perquisites will be as per the Income-tax 5 of this Notice.
Rules, 1962, in cases where the same is otherwise not
possible to be valued. ITEM NO. 6
(i) Subject to the provisions of the Act, while Mr. Munot Pursuant to the Composite scheme of amalgamation of: (i)
continues to hold office of the MD & CEO, he shall not be HDFC Investments Limited and HDFC Holdings Limited,
liable to retire by rotation and he shall not be reckoned as wholly-owned subsidiaries of Housing Development Finance
a Director for the purpose of determining the rotation or Corporation Limited (“HDFC Limited”) with and into HDFC
retirement of Directors in fixing the number of Directors Limited; and (ii) HDFC Limited with and into HDFC Bank
to retire, but shall, ipso facto, and immediately cease to Limited (“HDFC Bank”), HDFC Bank has become the Holding
Company and Promoter of the Company with effect from resolution. None of the other Director(s), Key Managerial
July 01, 2023. Personnel of the Company or their relatives is in any way
concerned or interested, financially or otherwise, in the
Further, on June 20, 2023, abrdn Investment Management
resolution as set out at Item No. 6 of this Notice.
Limited ("abrdn") (formerly known as Standard Life
Investments Limited), one of the promoters of the Company,
ITEM NO. 7
had sold its entire stake in the Company and on September
18, 2023, the Company had received an approval from the The Company with the objective of rewarding and motivating
stock exchanges for re-classification and accordingly, abrdn employees for their long association and in recognition of
was reclassified from “Promoter” to “Public” category, in their dedicated service to the Company and also to attract and
accordance with Regulation 31A of the Listing Regulations. retain the best talent introduced Employees Stock Options
Scheme 2020 ("ESOP Scheme 2020/ Scheme"). The Scheme
The existing Article of Association of the Company contains was approved by the Members by way of a Special Resolution
few articles having reference of HDFC Limited and abrdn, at their Annual General Meeting held on July 23, 2020,
as promoters of the Company including their director covering only the present and future permanent employees
nomination rights. In view of the above, the Board of Directors and directors of the Company.
at its meeting held on June 7, 2024 had recommended for
the approval of the Members for alteration of Articles of For leveraging market opportunities and business growth,
Association ("AOA") on account of the following: the Company had incorporated a wholly owned subsidiary
company viz. “HDFC AMC International (IFSC) Limited”
a. to remove references of erstwhile promoter i.e. abrdn ; ("WOS") in GIFT City, Gujarat for undertaking, inter-alia, the
b. to make necessary modifications to incorporate the business of acting as an Investment Manager to the scheme(s)
necessary references to HDFC Bank in place of HDFC to be launched under AIFs, from time to time. Further, as a part
Limited and of reward strategy for attracting new talents and retaining
the existing resources holding critical roles required for
c. to update the AOA of the Company in compliance with the business of WOS, it is proposed to extend the benefits
current laws and regulations. and coverage of the Scheme to present and future eligible
The proposed amended AOA along with the summary of employees of the WOS.
changes made in the AOA can be viewed in the following ways: Pursuant to the provisions of Section 62 of the Companies Act,
1. A copy is made available for inspection in physical mode 2013 (“Act”) read with Rules made thereunder and Regulation
by the members at the registered office of the Company 6 of SEBI (Share Based Employee Benefits and Sweat Equity)
during normal business hours on all working days up to Regulations, 2021, ("SEBI (SBEB & SE) Regulations"), the
the date of AGM i.e. July 25, 2024. approval of shareholders by way of separate special resolution
is required to be obtained by the Company in case of grant of
2. We have uploaded a pdf copy of the revised articles of option to employees of subsidiary company.
association on our web-site.
Accordingly, based on the recommendation of the Nomination
In accordance with the provisions of Section 14 of the Act read & Remuneration Committee (NRC), the Board of Directors
with the rules made thereunder, approval of the members at its meetings held on April 10, 2024 had approved and
of the Company is required for alteration of AOA by way of recommended to the Members for extending the benefit
passing a Special Resolution. and coverage of the Scheme to present and future eligible
The Board recommends the passing of the Special Resolution employees of the WOS, subject to the employees meeting
as set out at Item No. 6 of this Notice, for the approval of the eligibility criteria and on such other terms as may be
the Members. determined by the Board under ESOS – 2020, the rules framed
there under, SEBI (SBEB & SE) Regulations and other laws as
Mr. V. Srinivasa Rangan and Ms. Renu Sud Karnad, being applicable by passing Special Resolution as set out in this
Directors on the Board of the Company as well as on the Board Notice as Item No. 7.
of HDFC Bank and their relatives are interested in the above
 NOTICE

In accordance with the terms of this resolution and the ESOS Presently, the balance number of Options available for grant
– 2020, the options would be granted in one or more tranches are 8,77,201.
and series as may be decided by the Board, from time to time.
Identification of classes of employees entitled to participate
The features of the Scheme are given as under:
in ESOS-2020

Brief Description of the Scheme Currently, the Scheme covers the present and future
permanent employees and directors of the Company (whether
The Company has formulated ESOS-2020 in accordance
working in India or abroad), subject to eligibility criteria as may
with the provisions of the Act, the rules framed there under,
be decided by the NRC, from time to time.
SEBI (SBEB & SE) Regulations, SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015) ("Listing The Company now proposes to extend the benefit and
Regulations") and other laws as applicable with a view to coverage of the Employees Stock Options Scheme 2020
attract, retain and reward existing / new talents who are ("ESOP Scheme 2020/ Scheme") to the present and future
important for the business operations of the Company. The eligible employees, of the HDFC AMC International (IFSC)
Scheme is administered directly by the Company by way of Limited, a Wholly Owned Subsidiary of the Company (“WOS”),
new issue of shares. Under the Scheme, the Company has exclusively working in India or outside India, subject to
granted Options to its Eligible Employees of the Company, eligibility criteria as may be decided by the NRC, from time
from time to time. to time.

As stated above, the Company has a wholly owned subsidiary

Requirements of vesting, period of vesting and maximum
company viz. “HDFC AMC International (IFSC) Limited”
period within which the options shall be vested
(‘WOS’) in GIFT City, Gujarat for undertaking, inter-alia, the
business of acting as an Investment Manager to the scheme(s) Subject to SEBI (SBEB & SE) Regulations, the gap between
to be launched under AIFs, from time to time. the date of Grant and the date of Vesting shall not be less
than 1 (one) year and shall not exceed 3 (three) years. Subject
In this connection, the Company proposes to extend the to such terms as the NRC may decide in its sole and absolute
benefit and coverage of the Scheme to present and future discretion, the Options shall vest in three tranches. 1/3rd of
employees of WOS. the Options granted shall vest on the completion of 1 (one)
year from the respective date of Grant, 1/3rd of the Options
Total number of options to be granted granted shall vest on the completion of 2 (two) years from the
The total number of options to be granted under ESOS–2020 respective date of Grant and balance 1/3rd of the Options shall
shall not exceed 32,00,000 (Thirty Two Lac only) options vest on the completion of 3 (three) years from the respective
representing 32,00,000 (Thirty Two Lac only) equity shares date of Grant.
of H 5 each of the Company or such adjusted numbers for any
Further, the NRC at its sole and absolute discretion shall be
bonus, stock splits or consolidation or other re-organisation
entitled to make the vesting of any or all of the options granted
of the capital structure of the Company as may be applicable,
to eligible employee(s) of the WOS conditional upon fulfilment
from time to time, as approved by the members by way of
of the criteria mentioned in ESOS - 2020 and such additional
special resolution at their Annual General Meeting held on July
criteria, as may be determined by it, for any individual eligible
23, 2020.
employee or class / group of eligible employees.
Each of the said options upon exercise shall be entitled for
allotment of one equity share of H 5 each of the Company Pricing formula and Exercise Price
or such adjusted numbers for any bonus, stock splits or The stock options would be issued to the eligible employees
consolidation or other re-organisation of the capital structure of the WOS at the latest available closing price on the stock
of the Company as may be applicable, from time to time. The exchange on which the shares of the Company are listed on
options, that may lapse/expire or are forfeited, will be available the date immediately prior to the date on which the options
for grant to the eligible employees. are granted. As the shares of the Company are listed on
more than one stock exchange, the latest available closing The NRC would have the sole and absolute discretion to
price on the stock exchange with higher trading volume on determine the employees eligible to be granted options under
the said date shall be considered. In terms of the applicable ESOS - 2020 and the quantum of options to be granted to any
provisions of the Income Tax Act, 1961 and other applicable eligible employee.
laws, the eligible employees shall be liable to pay the amount
of perquisite tax and/or other taxes, charges and levies (by Maximum number of options to be issued per employee and
whatever name called) in respect of the options exercised, if in aggregate
any. It is further clarified that the Company shall be entitled to The NRC shall determine the maximum number of options to
receive the entire consideration and the perquisite tax and/or be granted per employee and in aggregate.
other taxes, charges and levies (by whatever name called) at
the time of exercise of the options by the eligible employees of The maximum number of options to be issued to any eligible
the WOS, irrespective of when the Company may be required employee of the WOS during any one year will be decided by
to deposit the tax with the relevant authority. the NRC, however, the same shall be less than 1% of the issued
equity shares of the Company as on the date of grant.
Exercise period and process of exercise
Maximum quantum of benefits to be provided per employee:
The vested options shall be allowed for exercise on and from
the date of vesting. The vested options need to be exercised The maximum quantum of benefits to be provided to each
within such period as may be prescribed by the NRC subject eligible employee of the WOS is not quantifiable as it would
to a maximum period of 5 years from the date of vesting of depend on a case to case and the market price of the share.
such options. The Options will lapse if not exercised within the
specified exercise period. Source of acquisition of shares under the scheme:
The Scheme only involves issue of new equity shares by the
The options will be exercisable by the employee by submitting
Company and does not involve secondary acquisition by the
a written notice of exercise to the Company to exercise the
Company or trust.
options in such manner and as per the prescribed format, and
along with full payment for the shares with respect to which
Accounting and Disclosure Policies
the options are exercised and the amount of applicable tax,
if any. The Company is following the relevant Accounting Standards
as may be prescribed by the competent authorities from time
In the event of resignation / termination / superannuation to time, including the disclosure requirements prescribed
/ death / permanent disability, options will be exercised in therein and in accordance with and subject to the requirements
accordance with the Scheme and SEBI (SBEB & SE) Regulations. of Regulation 15 of SEBI (SBEB & SE) Regulations.

Appraisal process for determining eligibility of the employees Method for valuation of options
Subject to the terms contained in the Scheme, the NRC shall To calculate the employee compensation cost, the
determine the eligibility criteria for the employees, the terms Company is using the fair value method for valuation of the
and conditions subject to which shares would be issued, the options granted.
modus of grant, exercise and vesting of the options and such
other terms relating to the ESOS - 2020. Whilst granting Accounting related disclosure in the Directors’ report:
the options to the employees under the ESOS - 2020, the
The Company is using the fair value method of accounting
NRC would inter alia consider the length of service, grade,
for calculating the employee compensation cost and
performance, merit, potential, conduct of the employee and
hence accounting related disclosure is not required in the
such other criteria/ factors as may be deemed appropriate by it.
Directors’ Report.
 NOTICE

Period of lock-in: wholly-owned subsidiaries of HDFC Limited with and into

The equity shares issued pursuant to exercise of vested HDFC Limited; and (ii) HDFC Limited with and into HDFC Bank,
Options shall not be subject to any lock-in period. HDFC Bank has become Holding Company and Promoter of
the Company with effect from July 01, 2023, the said right
Terms & conditions for buyback, if any, of specified securities/ is now available with HDFC Bank. Pursuant to the Articles of
options covered granted under the scheme: Association of the Company, HDFC Bank, being Promoter of
the Company has the right to nominate Directors on the Board
Subject to the provisions of the then prevailing applicable
of the Company as follows, including the right to nominate and
laws, the Board shall determine the procedure for buy-back
appoint one of them as Chairman of the Company:
of the specified securities/ Options if to be undertaken
at any time by the Company and the applicable terms and (i) up to 4 (four) Director if its Shareholding in the Company
conditions thereof. is 40% or more of the paid-up equity share capital of the
Company at that time;
Listing
(ii) up to 3 (three) Directors if its Shareholding in the
The shares allotted pursuant to the exercise of the stock Company is equal to or more than 30% but less than 40%
options, shall be listed on BSE Limited and National Stock of the paid-up equity share capital of the Company at
Exchange of India Limited. that time;
The Board, accordingly, recommends the passing of the (iii) up to 2 (two) Directors if its Shareholding in the Company
Special Resolution as set out at Item No. 7 of this Notice, for is equal to or more than 20% but less than 30% of the
the approval. paid-up equity share capital of the Company at that
None of the Director(s), Key Managerial Personnel of the time; and
Company or their relatives are in any way concerned or (iv) up to 1 (one) Director if its Shareholding in the Company
interested, financially or otherwise, in the resolution as set is equal to or more than 10% but less than 20% of the
out at Item No. 7 of this Notice. paid up equity share capital of the Company at that time.

Item No. 8 HDFC Bank Promoter of the Company holds 52.55% stake in
the Company as on March 31, 2024.
Pursuant to an insertion of Regulation 31B of Securities and
Exchange Board of India (Listing Obligations and Disclosure The Board, accordingly, recommends the passing of special
Requirements) (Second Amendment) Regulations, 2023 resolution as set out at Item No. 8 of this notice, for the
w.e.f. 15.7.2023, the Company is required to obtain approval approval of the members.
of the members once in every 5 (five) years by means of
Mr. Deepak S. Parekh, being Chairman of the Company and
a special resolution for any special rights granted to the
Mr. V. Srinivasa Rangan & Ms. Renu Sud Karnad, being Directors
shareholders of the Company. Prior to amalgamation of
on the Board of the Company as well as on the Board of HDFC
Housing Development Finance Corporation Limited (“HDFC
Bank and their relatives are interested in the above resolution.
Limited”) with and into HDFC Bank Limited (“HDFC Bank”),
None of the other Directors, Key Managerial Personnel
HDFC Limited had the right to nominate Directors on the
and their relatives, are in any way concerned or interested,
Board. Pursuant to the composite scheme of amalgamation
financially or otherwise, in the above resolution.
of: (i) HDFC Investments Limited and HDFC Holdings Limited,
Information regarding particulars of the Director(s) seeking re-appointment, as required pursuant to SS-2 and Regulation 36(3) of the
Listing Regulations, as applicable, is mentioned below:

Name of the Director Ms. Renu Sud Karnad Mr. Navneet Munot
Director Identification Number 00008064 05247228
Age 71 years 52 years
Date of Appointment on the Board July 4, 2000 February 16, 2021
Nationality Indian Indian
Qualifications Masters in Economics from University of Delhi, Masters degree in Accountancy and Business
Graduate in law from University of Mumbai, Parvin Statistics and is a qualified Chartered
Fellow - Woodrow Wilson School of International Accountant. He is also a charter holder of CFA
Affairs, Princeton University, USA Institute and CAIA Institute and done Financial
Risk Management (FRM) from Global Association
of Risk Professionals.
Experience (including expertise in specific Ms. Renu Sud Karnad (DIN 00008064) is a Non Mr. Navneet Munot has been Managing Director
functional area)/Brief resume Executive Director on the Board of HDFC Asset and Chief Executive Officer of the Company from
Management Company Limited since July 4, February 16, 2021. HDFC AMC manages over 6.5
2000. She was the Managing Director of Housing lakh crore across Equity and Fixed Income Mutual
Development Finance Corporation Limited till Funds for over 95 lakh unique investors across
30th June 2023. From 1st July 2023, she is a Non- the country. Mr. Munot is also the Chairman
Executive and Non-independent Director on the of the Association of Mutual Funds in India
Board of HDFC Bank Ltd. (AMFI) and had chaired Advisory Committee
on Environmental, social, and governance
Ms. Karnad is the Chairperson of GlaxoSmithKline constituted by SEBI.
Pharmaceuticals Limited and a director on the
boards of HDFC Asset Management Company He has over three decades of experience in
Limited, HDFC ERGO General Insurance Company the financial services industry. In the past,
Limited, HDFC Capital Advisors Limited, Bangalore he had worked with SBI Funds Management
International Airport Authority Limited and EIH Private Limited as an Executive Director and
Limited. Ms. Karnad is also a director on the board Chief Investment Officer (CIO) and was a
of Nudge Lifeskills Foundation and PayU Payments key member of the Executive Committee
Private Limited. since December 2008. As the CIO, he was
responsible for overseeing investments over
Ms. Karnad has had to her credit, numerous $ 150 billion across various asset classes in
awards, and accolades. Prominent among them mutual funds and segregated accounts. He was
being featured in list of ‘25 top non banking also a nominee director on the Board of SBI
women in finance’ by U.S. Banker magazine, listed Pension Funds Private Limited.
by Wall Street Journal Asia as among the ‘Top
Ten Powerful Women to Watch Out for in Asia’. He had also worked with Morgan Stanley
“Outstanding, Woman Business Leader” by CNBC Investment Management in 2007 as an Executive
TV18, 25 Most Influential Women Professionals in Director and head of multi-strategy boutique and
India by India Today. then joined SBI Funds Management Private Ltd in
December 2008.
No. of shares held 1,68,320 equity shares NIL
Terms and conditions of appointment/re- Liable to retire by rotation Approval of Members has been sought for his
appointment re-appointment as Managing Director & Chief
Executive Officer for a period with effect from
July 01, 2024 up to June 30, 2029. For more
details, please refer Explanatory Statement
 NOTICE

Name of the Director Ms. Renu Sud Karnad Mr. Navneet Munot
Directorships held in other companies* • GlaxoSmithKline Pharmaceuticals Limited • Association of Mutual Funds in India
• HDFC Bank Limited • HDFC AMC International (IFSC) Limited
• EIH Limited • Bombay Chamber of Commerce
• HDFC Ergo General Insurance and Industry
Company Limited
• Bangalore International Airport Limited
• Nudge Lifeskills Foundation
• HDFC Capital Advisors Limited
• PayU Payments Private Limited
Directorship of listed entities from which • Housing Development Finance -
director has resigned in the past 3 years Corporation Limited
• HDFC Life Insurance Company Limited
• ABB India Limited
• Unitech Limited
Membership/Chairmanship of committees Audit Committee – Member -
in other companies# • GlaxoSmithKline Pharmaceuticals Limited
• EIH Limited
Stakeholders Relationship Committee –
Chairperson
• GlaxoSmithKline Pharmaceuticals Limited
• EIH Limited
Stakeholders Relationship Committee –
Member
• HDFC Bank Limited
• HDFC Ergo General Insurance
Company Limited
Relationship with other Directors and Key None None
Managerial Personnel
Remuneration sought to be paid Sitting fees and commission Please refer Explanatory Statement
Remuneration last drawn (in H) For details of remuneration related to FY 2023-24, please refer Corporate Governance Report
forming part of the Annual Report 2023-24.
Number of meetings of the Board attended For details on attendance of these directors at the Board and Committee Meetings, please refer
during the year. Corporate Governance Report forming part of the Annual Report 2023-24
In the case of independent directors, the NA
skills and capabilities required for the role
and the manner in which the proposed
person meets such requirements.
*excludes directorships held in foreign companies.
#includes Chairmanship/ membership of the Audit Committee and the Stakeholders Relationship Committee of only other public limited companies,
whether listed or not.
POWERED BY

PURPOSE
25th Annual Report 2023-24
 POWERED BY

PURPOSE
'Viksit Bharat' evokes a dynamic vision of transformed
India – economically prosperous, socially progressed, and
environmentally responsible. A pivotal aspect of realising this
vision is to empower every citizen through financial inclusion
and wealth creation.
At HDFC AMC, we are powered by purpose of contributing to India's
prosperity through our mission – to be the wealth creator for every Indian.
We provide a broad spectrum of financial solutions designed to meet
goals and aspirations of investors at different stages of their lives.
We are dedicated to empowering individuals and institutions to
participate in India's growth by equipping them with knowledge and
resources needed to make informed financial decisions.
Our focus on collective prosperity ensures that the benefits of financial
well-being reach every corner of the nation, paving the way for a stronger
and more inclusive – Viksit Bharat.
Performance Highlights

J6,00,000+ J1,946 77%

Mutual Fund Assets Under Profit After Tax (in Crore) Dividend Payout
Management (in Crore) Ratio

39% 37%

96 Lakh 1,509 28%

Unique Investors Employees Women in workforce

254 99% 85,000+

Branches* Pincodes serviced Distribution
across India Partners

1,900+ kg 64,000+ `31 Crore

E-waste processed in Employee training CSR Spent
environment-friendly hours
manner

26 13 Inaugurated our
subsidiary’s office
New branches opened New fund offers (NFOs)
in GIFT City
during the year during the year

*includes our representative office in Dubai.

YoY

All data is as of March 31, 2024, unless stated otherwise

 Corporate Overview Statutory Reports

1 42
Key Terminologies 03 Management Discussion and Analysis 42
HDFC AMC at a Glance 04 Directors' Report 64
Presence 06 Business Responsibility and Sustainability Report 83
Contents

Comprehensive Product Portfolio 08 Assurance Report 120

Investment Philosophy 10 Corporate Governance Report 124
Key Performance Indicators 12

Financial Statements
14 150
Chairman's Message 14
MD & CEO's Message 16 Standalone Financial Statements 150
Digitisation 20 Consolidated Financial Statements 222
Investor Outreach 22
Bridge to Success 25
ESG Initiatives 28

34
Our Board of Directors 34
Our Leadership Team 39

Visit us at: www.hdfcfund.com

Disclaimer:

This document may contain statements about expected future events and financials of the Company which are forward-looking. By their
nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. However,
there is no guarantee that the assumptions, predictions, and other forward-looking statements will always prove to be accurate. Readers are
cautioned not to place undue reliance on forward-looking statements as several factors could cause assumptions, actual future events and
results to differ materially from those expressed in such forward-looking statements.
Key Terminologies

Decoding Key Mutual Fund

Terminologies
Asset management companies have distinct business models where funds are raised
from investors and invested by the company. In this section, we try to simplify some of
the industry-specific metrics used frequently.

Asset Under Management Asset Allocation Systematic Investment Plan

(AUM) This refers to the investment (SIP)
It is the total value of all investments strategy that aims to balance risk and A mutual fund gives investors an option
managed by the mutual fund. AUM rewards by allocating capital between of either investing lump sum or through
can be at a scheme level or a plan different asset classes such as equity, a SIP, breaking the amount into periodic
level. For a mutual fund as a whole, debt, etc. investments over a long period. For
AUM represents value of total example, if an investor wants to invest
investments across all schemes. H60,000 annually in a mutual fund
scheme and does not have the lump
sum amount available, he/she can opt
for an SIP of H5,000 every month.

Systematic Withdrawal Plan Net Asset Value (NAV) Total Expense Ratio
(SWP) It is the price of each unit of a mutual The expense ratio of a mutual fund is
Through this facility, the investor fund scheme. Typically, new mutual calculated by dividing the total expenses
receives a pre-determined amount fund schemes are priced at `10 per the fund has incurred by its AUM. It
on a periodic basis from the invested unit during the New Fund Offer (NFO) gives the cost, a mutual fund incurs,
scheme. Investors who need regular period. Consequently, the NAV will for managing each unit. A mutual fund
income, like retirees, often go for this change depending on the performance deducts these expenses from the NAV
option. The payments are usually given of the scheme. before declaring it on a daily basis.
from the scheme’s dividend income or
capital gain distribution.

Systematic Transfer Plan Actively Managed Funds Passive Funds

(STP) Provide the fund manager the flexibility Invest on the basis of a specified index;
This plan can be used in volatile markets to choose the investment portfolio, whose performance it seeks to track.
to gradually transfer or switch small within the broad parameters of the
amounts of investments at chosen investment objective of the scheme.
intervals (days/month/quarter) from
one scheme to another scheme of a
mutual fund.
HDFC ASSET MANAGEMENT COMPANY LIMITED

HDFC AMC at a Glance

Robust Foundation,
Sustainable Wealth Creation
Leveraging a culture of transparency, best-in-class governance and stakeholder
care, HDFC AMC has established itself as one of the leading Indian asset managers
over the last two decades. We offer a comprehensive suite of investment solutions
and empower our stakeholders to achieve their financial aspirations. HDFC AMC
stands out as one of India’s most profitable mutual fund managers and is renowned
for being one of the leading houses for actively managed equity-oriented assets
under management (AUM).

Purpose – Pillars – Passion

Purpose (Mission) People Passion (Vision)

Physically Energized, Mentally Focused and
To be the wealth creator Emotionally Engaged To be the most respected
for every Indian asset manager in the world

Pedigree Products
A highly trusted brand with One-stop Solution
long term orientation

Platforms Pillars Performance

Wide physical network Distinguished track record
and state-of-the-art across economic and
digital assets market cycles

Partnerships Processes
Build on our existing Robust compliance and
distribution network risk management. Use
analytical capabilities to
deepen relationships

04 POWERED BY PURPOSE
 CORPORATE OVERVIEW HDFC AMC at a Glance

Our Promoter Shareholder On July 1, 2023, HDFC Ltd merged with and into HDFC Bank,
enabling the Bank to add mortgages to its suite of products.
Our principal shareholder is HDFC Bank, which owns a
This also brought broader financial services institutions,
52.55% stake (as on March 31, 2024).
including HDFC Life, HDFC AMC and HDFC Ergo, in addition
to HDFC Securities and HDB Financial Services as subsidiaries
HDFC Bank under the HDFC Bank group.
HDFC Bank is India’s largest private sector bank by balance
As of March 31, 2024, the Bank’s distribution network was
sheet size as on March 31, 2024. It was incorporated in August
at 8,738 branches and 20,938 ATMs/Cash Recycler Machine
1994 by Housing Development Finance Corporation Limited
(Cash deposit & withdrawal) across 4,065 cities/towns. The
(HDFC Ltd) which was among the first financial institutions
Bank’s international operations comprises four branches in
in India to receive an 'in-principle' approval from the Reserve
Hong Kong, Bahrain, Dubai and an IFSC Banking Unit in Gujarat
Bank of India to set up a bank in the private sector. It started as
International Finance Tec-City. It has 5 representative offices
a transaction bank and subsequently forayed into the entire
in Kenya, Abu Dhabi, Dubai, London and Singapore catering to
gamut of asset, liability and payments products providing
Non Resident Indians and Persons of Indian Origin.
banking solutions to a larger customer base of retail, MSME
and corporate segments.

ANNUAL REPORT 2023-24 05

HDFC ASSET MANAGEMENT COMPANY LIMITED

Presence

Expansive
Footprint
Our strong distribution network is a major catalyst for our growth. This
year, we have expanded our footprint by opening 26 new branches.
We are dedicated to establishing our presence in cities with promising
growth potential.

Spread of Branches Across India Investor Base Break-up (%)

North 50

West 81
Individual MAAUM* 70.8
South 60
Non-individual MAAUM* 29.2
East 62

Note: We also have a representative office in Dubai

Geography-wise Break-up (%)

Physical Footprint - Branches

76 134
210 B30 – MAAUM* 19.1

March 2019 T30 – MAUUM* 80.9

80 174
254
T30 – Top 30 locations in India
March 2024
B30 – Beyond the top 30 locations in India
T30 B30 * Monthly Average AUM - March 2024

Percentage of AUM by Geography (%)

Top 5 Cities 55
Next 10 Cities 18
Opened 26 new branches
Next 20 Cities 9
during the year Next 75 Cities 12
Others 6

% of Total AUM as on March 31, 2024

06 POWERED BY PURPOSE
 CORPORATE OVERVIEW Deep Reach

Deep Reach
Jammu and Kashmir

Himachal Pradesh

Chandigarh 4 Uttarakhand
Punjab
1
8
4 Sikkim

Haryana 11
8 Delhi

1
Rajasthan 9 25
4 Assam
Uttar Pradesh
5
1 Meghalaya
Bihar
Gujarat
Madhya Pradesh 1 Tripura
25 9 6 14
Chhattisgarh 4 Jharkhand

8
West Bengal
Maharashtra Odisha
Telangana
39
7

Goa Andhra Pradesh

4
8
18
Puducherry
Karnataka
1
Tamil Nadu

16
Kerala 10

Number of Branches

1,509 254* 85,000+ 99%

Employees Branches Distribution Partners Pincodes served across India

*includes our representative office in Dubai

Map not to scale. For illustrative purpose only.

ANNUAL REPORT 2023-24 07

HDFC ASSET MANAGEMENT COMPANY LIMITED

Comprehensive Product Portfolio

Umbrella of
Investment Solutions
HDFC AMC offers a comprehensive suite of mutual fund and alternative investments
across asset classes, including equity, fixed income, hybrid and multi-asset solutions,
both on active as well as passive platforms, catering to the needs of a large and diverse
customer base. We strive to add prosperity to the lives of our customers, aiming to create
sustainable wealth through diverse products.

Our Platform

Mutual Funds Alternatives International Business

Active | Passive AIF | PMS WOS in GIFT City
rusted

MF Schemes
39 32 02 25 98
Equity-oriented Debt-oriented Liquid Others Total

Equity also includes equity-oriented hybrid and equity-oriented Index funds; Debt also includes Debt-oriented Index Funds and money market funds.
‘Others’ includes ETF, Arbitrage and FOF–investing overseas.

Segment-wise break-up of total Channel-wise break-up of total Channel-wise break-up of equity-

AUM (%) AUM (%) oriented AUM (%)

Equity-oriented 65.4 Banks 11.2 Banks 13.1

Debt-oriented 22.1 MFDs 29.1 MFDs 37.0
Liquid 8.9 National Distributors 21.3 National Distributors 24.9
Others 3.6 Direct 38.4 Direct 25.0

Note: As of March 31, 2024

08 POWERED BY PURPOSE
 CORPORATE OVERVIEW Comprehensive Product Portfolio

With our best-in-class active, passive and alternative funds, we are ready for the next leap! If asset allocation is the key, we make
it easy.

Active Funds

Equity Debt Hybrid

» HDFC Flexi Cap Fund » HDFC Overnight Fund » HDFC Balanced Advantage Fund
» HDFC Multi Cap Fund » HDFC Liquid Fund » HDFC Hybrid Equity Fund
» HDFC Top 100 Fund » HDFC Ultra Short Term Fund » HDFC Multi-Asset Fund
» HDFC Mid-Cap Opportunities Fund » HDFC Low Duration Fund » HDFC Equity Savings Fund
» HDFC Small Cap Fund » HDFC Money Market Fund » HDFC Hybrid Debt Fund
» HDFC Large and Mid Cap Fund » HDFC Short Term Debt Fund » HDFC Arbitrage Fund
» HDFC Capital Builder Value Fund » HDFC Medium Term Debt Fund
» HDFC Dividend Yield Fund » HDFC Income Fund
» HDFC Focused 30 Fund » HDFC Long Duration Debt Fund Solution Oriented
» HDFC Business Cycle Fund » HDFC Floating Rate Debt Fund
» HDFC Banking & Financial Services Fund » HDFC Corporate Bond Fund » HDFC Children’s Gift Fund
» HDFC Housing Opportunities Fund » HDFC Banking and PSU Debt Fund » HDFC Retirement Savings Fund -
» HDFC Infrastructure Fund » HDFC Credit Risk Debt Fund Equity Plan
» HDFC MNC Fund » HDFC Dynamic Debt Fund » HDFC Retirement Savings Fund -
» HDFC ELSS Tax saver » HDFC Gilt Fund Hybrid Equity Plan
» HDFC Non-Cyclical Consumer Fund » HDFC Charity Fund for Cancer Cure » HDFC Retirement Savings Fund -
» HDFC Transportation and Logistics Fund » Fixed Maturity Plans Hybrid Debt Plan
» HDFC Pharma and Healthcare Fund
» HDFC Technology Fund
» HDFC Defence Fund

Passive Funds
Index ETF Fund of Funds
» HDFC Index Fund - NIFTY 50 Plan » HDFC NIFTY 50 ETF » HDFC Gold Fund
» HDFC Index Fund - S&P BSE SENSEX Plan » HDFC S&P BSE SENSEX ETF » HDFC Silver ETF Fund of Fund
» HDFC NIFTY 100 Index Fund » HDFC NIFTY Bank ETF » HDFC Developed World Indexes Fund
» HDFC NIFTY50 Equal Weight Index Fund » HDFC NIFTY 100 ETF of Funds
» HDFC NIFTY 100 Equal Weight Index Fund » HDFC NIFTY Next 50 ETF » HDFC Asset Allocator Fund of Funds
» HDFC NIFTY Next 50 Index Fund » HDFC NIFTY50 VALUE 20 ETF » HDFC Dynamic PE Ratio Fund of Fund
» HDFC NIFTY Midcap 150 Index Fund » HDFC NIFTY100 Quality 30 ETF
» HDFC NIFTY Smallcap 250 Index Fund » HDFC NIFTY Growth Sectors 15 ETF
» HDFC S&P BSE 500 Index Fund » HDFC NIFTY100 Low Volatility 30 ETF
» HDFC NIFTY200 Momentum 30 Index Fund » HDFC NIFTY200 Momentum 30 ETF
» HDFC Nifty Realty Index Fund » HDFC NIFTY IT ETF
» HDFC Nifty G-Sec Dec 2026 Index Fund » HDFC NIFTY Private Bank ETF
» HDFC Nifty G-Sec Jul 2031 Index Fund » HDFC NIFTY Midcap 150 ETF
» HDFC Nifty G- Sec Jun 2027 Index Fund » HDFC NIFTY Smallcap 250 ETF
» HDFC Nifty G-Sec Sep 2032 Index Fund » HDFC S&P BSE 500 ETF
» HDFC NIFTY G- Sec Apr 2029 Index Fund » HDFC NIFTY PSU BANK ETF
» HDFC NIFTY G-Sec Jun 2036 Index Fund » HDFC NIFTY 1D RATE LIQUID ETF
» HDFC NIFTY SDL Plus G-Sec Jun 2027 » HDFC Gold ETF
40:60 Index Fund » HDFC Silver ETF
» HDFC Nifty SDL Oct 2026 Index Fund

ANNUAL REPORT 2023-24 09

HDFC ASSET MANAGEMENT COMPANY LIMITED

Investment Philosophy

Delivering Superior
Risk-adjusted Returns
A robust investment philosophy, efficient risk
management, best‑in‑class practices and sound
governance have consolidated our position as
India’s leading asset management company.

10 POWERED BY PURPOSE
 CORPORATE OVERVIEW Investment Philosophy

and calibrating risks, taking into account both quantitative

Investment Team (growth prospects, key variables, analysis of P&L statements,

31 ~550 years
Balance Sheet and cash flows, etc.) and qualitative
(management quality, corporate governance, track record,
competitive advantage, feedback from dealers, customers
Analysts and Combined work and experts, etc.) factors. At the same time, we aim to acquire
investment team experience businesses available at reasonable valuations and hold onto
them for an extended time frame.

Equity-oriented Schemes With a view to offer choice of diversity of styles to our

customers and to mitigate business risk, we have built
Equity-oriented schemes constituted 65% of our total AUM
capabilities by adding appropriate resources during last few
as of March 31, 2024. Our investments in equities are driven by
years. While we already have products that focus on different
fundamental research with a medium- to long-term view. Our
market capitalisations, we feel diversity in our investment
investment philosophy for equity-oriented schemes is based
style and approach will be in the long-term interest of our
on the belief that over time, stock prices reflect their intrinsic
customers and the business. We will remain firmly focused on
values. Our research efforts are predominantly bottom-
fundamentals-led research and will continuously improve our
up focused, keeping in mind the economic outlook and
understanding of the investment universe.
macro -economic conditions. The emphasis is on key drivers

Debt-oriented Schemes
The investments in fixed income securities by our debt and in permitted instruments such as government securities,
schemes are guided by our investment philosophy of non-convertible debentures, corporate bonds, asset-backed
Safety, Liquidity and Returns (SLR), generally prioritised securities, money market instruments, etc. Our Credit
in that order. Given the limited liquidity of credit markets Risk Assessment framework lays emphasis on the Four
in India, we believe focus on liquidity, especially in open- Cs of Credit – Character of management, Capacity to pay,
ended schemes is of paramount importance. It was this Collateral pledged to secure debt and Covenants of debt –
philosophy that enabled our schemes to tide over a very wherever applicable. Further, we have an internal framework
challenging environment in fixed income markets over the to determine absolute and relative investment exposure
last few years due to default by a large Non Banking Finance limits for individual credits. This approach, along with a good
Company (NBFC) and Housing Finance Company (HFC), understanding of credits, has helped us avoid a majority of the
COVID-19-related credit stresses, as well as the shutting stress cases faced by the mutual fund industry over the past
of several fixed income schemes by another mutual fund decade. Apart from the aforesaid, we aim to add value in fixed
house due to illiquidity of underlying portfolios. Our liquid income investments by managing the portfolio driven by our
and debt-oriented schemes constituted 31% of our total medium- to long-term view on interest rates, yield curve and
AUM as of March 31, 2024. All investments are made in line spreads across tenors, ratings, sectors, and various fixed
with the respective Scheme Information Document (SID) income segments (corporate bond, GSECs, CPs, CDs, etc.).

ANNUAL REPORT 2023-24 11

HDFC ASSET MANAGEMENT COMPANY LIMITED

Key Performance Indicators

Performance Snapshot
Revenue from Operations Operating Profit
(` in Crore) (` in Crore)

2,584 1,900
FY 23-24 2,584 FY 23-24 1,900

FY 22-23 2,167 FY 22-23 1,555

FY 21-22 2,115 FY 21-22 1,537

FY 20-21 1,853 FY 20-21 1,400

6.2% 9.8%
FY 19-20 2,003 5Y CAGR FY 19-20 1,513 5Y CAGR

Profit Before Tax Profit After Tax

(` in Crore) (` in Crore)

2,478 1,946
FY 23-24 2,478 FY 23-24 1,946

FY 22-23 1,871 FY 22-23 1,424

FY 21-22 1,855 FY 21-22 1,393

FY 20-21 1,749 FY 20-21 1,326

12.5% 15.9%
FY 19-20 1,653 5Y CAGR FY 19-20 1,262 5Y CAGR

Return on Equity Dividend Per Share

(%) (`)

29.5 70
FY 23-24 29.5 FY 23-24 70

FY 22-23 24.5 FY 22-23 48

FY 21-22 27.0 FY 21-22 42

FY 20-21 30.1 FY 20-21 34

FY 19-20 35.6 FY 19-20 28

Note:
1. FY 18-19 has been taken as the base year for CAGR calculation. Revenue from operations, operating profit, profit before tax and profit after tax in
FY 18-19 were I1,915 Crore, I1,193 Crore, I1,375 Crore and I931 Crore, respectively.

2. The Board of Directors at their meeting held on June 7, 2024 have declared an interim dividend for the financial year ended March 31, 2024 of I70/-
per equity share instead of final dividend of I70/- per equity share for the financial year ended March 31, 2024 as recommended earlier at the Board
meeting held on April 19, 2024.

12 POWERED BY PURPOSE
 CORPORATE OVERVIEW Key Performance Indicators

Assets Under Management Active Equity-oriented AUM

(` in Crore) (` in Crore)

6,07,342 3,75,383
FY 23-24 6,07,342 FY 23-24 3,75,383

FY 22-23 4,36,696 FY 22-23 2,32,233

FY 21-22 4,07,553 FY 21-22 1,99,548

FY 20-21 3,95,476 FY 20-21 1,65,381

12.0% 18.0%
FY 19-20 3,19,090 5Y CAGR FY 19-20 1,20,050 5Y CAGR

Systematic Transactions Live Individual Accounts

(` in Crore) (in Lakh)

2,935 162.5
March 2024 2,935 FY 23-24 162.5

March 2023 1,711 FY 22-23 112.7

March 2022 1,231 FY 21-22 97.7

March 2021 1,035 FY 20-21 88.6

19.9% 12.5%
March 2020 1,130 5Y CAGR FY 19-20 93.4 5Y CAGR

Digital Transactions as % of Total Individual’s Share in AUM

(%) (% of monthly average AUM)

90 70.8
FY 23-24 90 March 2024 70.8

FY 22-23 81 March 2023 67.2

FY 21-22 76 March 2022 62.4

FY 20-21 82 March 2021 57.6

FY 19-20 69 March 2020 57.2

Note:
1. All data is as of March for each year, unless stated otherwise 3. Assets Under Management (AUM) refers to closing AUM.

2. March 2019 has been taken as the base for CAGR calculation. Assets 4. Actively managed equity‑oriented AUM includes all solution-oriented
Under Management and actively managed equity-oriented AUM in March schemes/portfolios and excludes index funds and ETFs.
2019 were I3,43,938 Crore and I1,64,263 Crore, respectively.

ANNUAL REPORT 2023-24 13

HDFC ASSET MANAGEMENT COMPANY LIMITED

Chairman’s Message

Investing in
India’s Potential

Dear Shareholders,
I am delighted to present our Annual Report for the fiscal
year ending March 31, 2024 – a year filled with remarkable
As I reflect on the past year, it fills me achievements and significant milestones for both, India and
with immense pride and optimism HDFC Asset Management Company Limited.
witnessing India’s remarkable
journey towards becoming a global
India, the Next Global Powerhouse
economic powerhouse.
As I reflect on the past year, it fills me with immense pride
Deepak S. Parekh and optimism witnessing India’s remarkable journey
Chairman
towards becoming a global economic powerhouse. With a
projected GDP growth of 8.2% amidst global uncertainties,
India has emerged as a beacon of growth and resilience.
Favourable demographics, enabling government
policies, a ‘digital first’ approach coupled with a vibrant
entrepreneurial ecosystem is propelling the nation towards
its ambitious goal of becoming a $5 trillion economy
by 2027-28.

India’s achievements extend beyond being the world’s

fastest-growing major economy. With the successful landing
of Chandrayaan-3 on the uncharted south polar region of the
moon, India showcased its prowess in space exploration. India
as the host of the G20 summit in Delhi, under its presidency,
marked a significant milestone in global diplomacy.
Globally, India is being considered as a preferred supply chain
destination. Further, India's skilled professional workforce
has catapulted it as a leader for global capability centres.

Visionary Budget and Inclusivity

The Interim Union Budget 2023-24 exemplified commitment
to fiscal prudence and strategic capital investment.
Rooted in the philosophy of governance, development and
performance, the budget focused on the welfare of poor,
women, youth and farmers.

We, at HDFC AMC, are committed to supporting India’s focus

on inclusivity. Through our range of products and services,
we aim to drive and foster greater financial savings. In our

14 POWERED BY PURPOSE
 CORPORATE OVERVIEW Chairman’s Message

commitment to serving customers across all economic

segments, the Company has reduced the minimum
subscription amount for digital Systematic Investment
Plans (SIPs) and lumpsum transactions to `100. Prioritising I have a strong belief that the industry
inclusivity, our goal is to become the wealth creator for every could surpass L100 lakh crore sooner
Indian, by enabling millions to attain their financial aspirations.
than anticipated, presenting tremendous
Mutual Funds: A Vehicle for Financial opportunities for growth.
Independence
In FY 23-24, the mutual fund industry surged past the As India’s working population continues to expand and
landmark `50 Lakh Crore milestone, sustaining its upward financial inclusion and digitalisation efforts gain momentum,
trajectory on the back of soaring popularity of SIPs mutual funds are poised to assume a crucial role in
and a thriving capital market. The benchmark Nifty 50 democratising investments and promoting financial literacy.
index rose by an impressive 29%, marking its strongest This presents an exciting prospect for both investors and
performance since the pandemic-induced downturn in the industry alike, as mutual funds emerge as accessible and
2020-21, while broader market indices performed even efficient vehicles for wealth creation and long-term financial
better. The gross inflows for SIPs reached a substantial planning in India’s evolving economic landscape.
`2 Lakh Crore for FY 23-24, reflecting a 28% increase
compared to the previous fiscal year. A Collective Effort from All Stakeholders
The industry’s expansion was further accentuated Investor confidence stands as a cornerstone for the mutual
by a significant uptick in the total number of fund industry’s growth trajectory. It is heartening to
folios, reaching 17.79 Crore as of March 31, 2024, witness SEBI leading the charge in fostering this confidence.
compared to 14.57 Crore in the preceding year. The Additionally, a collaborative effort among key stakeholders,
surge in investments in mutual funds, from around including AMFI, distributors and industry players is underway
`8 Lakh Crore AUM in 2014 to over `50 Lakh Crore in 2024 to reinforce this confidence.
underscores the mounting confidence of investors in India’s I would like to extend my gratitude to our shareholders,
growth narrative and in mutual funds as a dependable avenue customers, employees, service providers and distribution
for wealth creation. partners for their unwavering support and dedication. It is
Moreover, with domestic investors emerging as key players through our collective efforts that we continue to deliver
alongside foreign portfolio investors, the mutual funds sustainable growth and create value for every section
industry assumes a pivotal role as a stabilising force during of society.
periods of fluctuating FPI activity, thereby bolstering the In conclusion, I remain deeply optimistic about India's future
resilience of Indian equity markets. and HDFC AMC benefitting from this trend. Together, let us
continue on this incredible journey of growth and prosperity.
Significant Headroom for Further Growth
India boasts of more than 70 Crore PAN card holders and over Deepak S. Parekh
15 Crore demat accounts. However, despite this significant Chairman
financial infrastructure, the Indian mutual fund industry
has only reached about 4.5 Crore unique investors. These
statistics emphasise a vast untapped potential for growth
within the mutual fund sector. I have a strong belief that
the industry could surpass `100 Lakh Crore sooner
than anticipated, presenting tremendous opportunities
for growth.

ANNUAL REPORT 2023-24 15

HDFC ASSET MANAGEMENT COMPANY LIMITED

MD & CEO's Message

Powered by Purpose,
Propelled by Passion
Dear Shareholders,
It is my honour and privilege to present the 25th Annual Report
of HDFC Asset Management Company Limited for FY 23-24.
As we reflect on our journey, we are proud to contribute to an
Our purpose-driven ethos not only aligns industry experiencing unprecedented growth while creating
with our overarching vision – To be the most shared prosperity.
respected asset manager in the world – but also
The year gone by witnessed a significant event in the Indian
serves as the guiding force shaping our actions.
financial landscape: the merger of HDFC Limited into HDFC
Navneet Munot Bank, culminating into a financial services powerhouse.
Post-merger, HDFC Bank stands among the world’s leading
MD & CEO
banks in terms of market capitalisation. HDFC AMC, now
a subsidiary of HDFC Bank, embodies the legacy of trust
and confidence associated with the HDFC brand. This union
makes us part of a giant financial conglomerate, presenting
immense possibilities.

Economic Landscape
Amidst a highly uncertain global political and economic
environment, India continues to demonstrate remarkable
resilience and is well-poised for tremendous growth in
the coming years. We are witnessing a progressive era of
economic development, rising standards of living, pro-
business policies and macroeconomic stability. We have
seen significant focus on infrastructure development by the
government. Backed by robust economic growth in recent
years, India is marching towards 'Vision Viksit Bharat@2047',
aiming to become a developed economy with a $20 trillion-
plus GDP by 2047.

Indian markets were among the best-performing markets

globally, with benchmark index (NIFTY50) gaining 29% and
reaching new highs during the year. Policy prudence, agile
execution, and retail resilience have helped Indian markets
remain less volatile on a relative basis. Foreign Portfolio
Investors injected `2 Lakh Crore into Indian equities during
FY 23-24. Moreover, the growing participation of retail
investors through mutual funds has elevated domestic
institutions into a significant force within the market

16 POWERED BY PURPOSE
 CORPORATE OVERVIEW MD & CEO's Message

landscape. This surge in investment and market performance record of more than 30 years, marking a historic milestone
underscores the growing confidence in India's economic not only for us but for the entire industry. This achievement
prospects and the resilience of its financial systems. underscores the effectiveness of HDFC AMC’s highly-
seasoned investment team, complemented by a time-tested
Mutual Fund Industry investment philosophy, robust processes, and cutting-
The mutual fund industry closing AUM reached `53.4 Lakh edge risk management systems, helping us to successfully
Crore, a growth of I14 Lakh crore over the AUM as on March navigate a multitude of economic and market cycles.
31, 2023. Equity-oriented AUM grew by 52% during FY 23-24, Notably, 13 of our actively managed equity-oriented funds
reaching `30.40 Lakh Crore. Passive funds also continued to have a track record of delivering healthy returns for over
grow, particularly benefiting from institutional investment 15-year period. Further, in response to evolving client
flows into exchange-traded funds, notably from investors preferences, we expanded our product offerings during the
such as provident funds. The industry has been witnessing year, introducing five new equity sectoral/thematic funds,
steady growth in Systematic Investment Plan (SIP) flows, with including the pioneering - HDFC Defence Fund, a first in
monthly SIP contribution reaching `19,271 Crore in March 2024. the industry.
Total outstanding SIP accounts crossed 8.4 Crore with Our wide array of debt mutual fund offerings, fortified by
outstanding SIP AUM of `10.7 Lakh Crore. our commitment to the investment philosophy emphasising
Investor education, led by Association of Mutual Funds in safety, liquidity and returns, stand as a compelling investment
India’s (AMFI) various initiatives and campaigns, has helped in avenue for investors.
increasing household interest in mutual funds. HDFC AMC’s Our passive solutions, under the HDFC Index Solutions brand,
mega-initiative, #ZindagiKeLiyeSIP, has reached millions of have introduced numerous new products in recent years,
Indians, emphasising the importance of disciplined investing. strengthening our position as a comprehensive destination
These efforts on investor education, along with several other for passive investing. We now offer 39 passive funds across
initiatives, have led to greater participation in mutual funds. Index Funds and Exchange Traded Funds (ETFs).
As investor education initiatives and digital advancements
make transacting easier, participation from B-30 towns is In our endeavour to build HDFC AMC Alternatives platform,
expected to continue growing at a strong pace and steer we launched Category II AIF - HDFC AMC Select AIF FOF-I.
industry expansion. The fund invests in Category I and II Venture Capital/Private
Equity Oriented AIFs. Simultaneously, we continue to build on
Although the industry has made huge strides, its AUM our Portfolio Management business. To tap into the potential
still represents only a quarter of the size of bank deposits of global markets, we inaugurated our subsidiary’s (HDFC
and remains significantly under-penetrated, presenting AMC International (IFSC) Limited) office in GIFT City in August
tremendous headroom for growth. 2023. HDFC International is poised to elevate our franchise,
catering to both international investors seeking opportunities
Our Holistic Platform in India and Indian investors looking to invest abroad.
We have continued to expand our product suite to meet Within our product suite, the revival of HDFC Cancer
varied investment needs. Our product offerings now include Cure Fund holds special significance for us. This unique
a comprehensive array of savings and investment products, amalgamation of investment and philanthropy has played a
ranging from mutual funds, including both actively managed pivotal role in positively impacting thousands of lives over the
and passive options, to portfolio management services and past decade.
alternative investment opportunities catering to the needs
of a large and diverse client base. With a best-in-class product suite encompassing various
asset classes and investment strategies, HDFC AMC
Our equity-oriented mutual funds boast of a distinguished continues to uphold its commitment to delivering superior
legacy spanning over three decades. HDFC Balanced performance and innovative solutions to investors.
Advantage Fund, the nation’s largest active fund, has a track

ANNUAL REPORT 2023-24 17

HDFC ASSET MANAGEMENT COMPANY LIMITED

MD & CEO's Message

Empowering Growth through Phygital

Distribution
We, at HDFC AMC, are proud of our physical footprint
Our entire ecosystem thrives on our robust
and our digital capabilities, together contributing to our
'phygital' setup empowering us to focus
overall success.
our attention on our clients, provide mass
Our robust digital platform caters to both investors personalisation, expand our reach and boldly
and distribution partners, providing an analytics-driven pursue our Mission - To be the wealth creator for
ecosystem for a seamless user experience. By leveraging every Indian.
various technologies, we are uplifting our capabilities and
enhancing our clients' experiences. We are committed to The amalgamation of physical expansion through our network
continually evolving our digital solutions to ensure they of warm and welcoming branches and digital prowess via
remain absolutely cutting-edge and highly user-friendly for best-in-class digital platforms underscores the remarkable
our investors and partners. journey and enduring success of our organisation.

Our wide network of branches and distribution partners

serves as a pivotal driver of our ongoing growth journey. From Client Service to Client Delight
Throughout the year, we have closely collaborated with We have taken significant strides in our journey from ‘client
our distribution partners through regular interactions, service to client delight’. This involved conducting meticulous
digital collaborations, service tie-ups, content creation, client satisfaction surveys, refining various service workflows
research support and other strategic initiatives. Through and introducing an array of features and amenities to enhance
our ConneKt app, we empower our partners with highly our clients’ experiences. Our investment management, risk
personalised digital workspace, marketing tools for broad management and product capabilities are underpinned by
outreach, and comprehensive reporting bolstered by top- high-quality content, analytics and relationships – all aimed
notch content. Additionally, we have organised successful at serving the client through a range of distribution channels.
campaigns for our partners, leveraging analytical models. Our Our entire ecosystem thrives on our robust 'phygital' setup
knowledge-sharing events such as ‘Milaap’ – an interactive empowering us to focus our attention on our clients, provide
platform with our distribution partners have also been mass personalisation, expand our reach and boldly pursue our
very well appreciated. Mission - To be the wealth creator for every Indian.
We remain resolute in our efforts towards broadening our
reach, actively establishing our presence in cities exhibiting Our People – Our Invaluable Assets
promising growth potential. We celebrated the advent of For HDFC AMC, our people are our most valuable asset, and
calendar year 2024 by inaugurating 24 new branches on a thus, we channelise significant efforts towards their growth.
single day, increasing our total branch count to 254. Reflecting While our people exude enthusiasm and energy, they also
on the past, I remember HDFC Mutual Fund factsheet from uphold the highest ethical standards, understanding the
around two decades ago, which listed a modest total of 20 pivotal role we play in shaping the dreams and aspirations
branches on its back cover. of countless households. At the heart of HDFC AMC lies
an ambitious mission and an aspirational vision. We are
We are also excited about the opportunity that HDFC Bank,
a purpose-driven organisation and everyone in Team
as our distribution partner and holding company, presents.
HDFC AMC is physically energised, mentally focused and
Recognising the potential this partnership holds, we have
emotionally engaged.
established a dedicated channel for closer collaboration. This
strategic alignment has not only strengthened our relationship At HDFC AMC, we have a strong commitment towards
but has also led to deepening our engagement levels. We continuous learning and expanding our knowledge. Throughout
are committed to leveraging this synergy to drive mutual the year, we have enriched our bouquet of learning opportunities
growth and success.

18 POWERED BY PURPOSE
 CORPORATE OVERVIEW MD & CEO's Message

with new programmes in areas such as investment and wealth with a burgeoning workforce propelling growth and
management, risk management and soft skills. discretionary spending.

Last year, we celebrated our recognition as a 'Great Place The surge in domestic investments, particularly in mutual
to Work' certified organisation. This accolade stands as a funds, is a testament to India’s economic prospects and
testament to our commitment to fostering a workplace culture investor confidence. This trend underscores the potential
that nurtures talent, encourages innovation, and values for exponential growth in our capital markets, similar to
inclusivity and equity for all. Our commitment to Diversity, the remarkable trajectory witnessed in the US from 1980
Equity and Inclusion is about building a stronger and more onwards. The current surge in SIPs in India is somewhat
resilient organisation where everyone has an opportunity to resembling to the 401(k) movement in the US. As household
excel, contribute meaningfully and reach their full potential. savings are channelled into mutual funds, the asset
management industry is poised for substantial expansion,
Driving Sustainable Growth with Scale, Quality, promising widespread participation in India’s economic
growth story.
and Profitability
Building on our positive momentum, we steadily progressed This positive outlook highlights India’s capacity to
throughout FY 23-24. With an AUM of `6.1 Lakh Crore, we become a significant global economic force, fuelled by
served a client base of 96 Lakh unique investors, with a total of innovation, investment, and inclusive development.
166 Lakh live accounts. Positioned strategically, HDFC AMC aims to leverage the
opportunities within India’s asset management sector.
We are delighted to present another year of profitable growth.
Our total income increased to `3,163 Crore, and our Profit After
Thank you
Tax (PAT) was `1,946 Crore. We are pleased to announce that
the Board has declared an interim dividend of `70 per share for I would like to extend my sincere appreciation, gratitude and
FY 23-24, translating into a dividend payout ratio of 77%. admiration to all our partners and service providers. The
support and invaluable guidance of our regulator SEBI and
the relentless efforts of the industry body AMFI have been
Outlook
instrumental in fostering growth for the industry. As we move
Amidst uncertain global political and economic forward, together, we eagerly anticipate the next phase of our
environment, India showed remarkable resilience. As far journey, brimming with even greater accomplishments and
as capital markets and asset management industry is mutual prosperity.
concerned, there are striking parallels between US in the
1980's and what India has been witnessing. Our dedication to sustainability, rooted in Environmental,
Social, and Governance (ESG) principles, reflects our
We are in the midst of an unparalleled era characterised by commitment to creating a positive impact on the world.
robust economic development, facilitated by favourable Driven by our ESG mission, we strive to generate sustainable
pro-business policies, macroeconomic stability wealth for all stakeholders, with focus on People, Planet, and
and entrepreneurship. Much like the US during that Prosperity. This purpose-driven ethos not only aligns with our
transformative period, India is embracing deregulation and overarching Vision – To be the most respected asset manager
fostering an environment conducive to entrepreneurial in the world – but also serves as the guiding force shaping
endeavours. Furthermore, India has taken decisive steps our actions.
to curb inflation (Monetary Policy Framework - 2016), a
move reminiscent of the US under the leadership of Paul Our Chairman, Shri Deepak Parekh, was inducted into the 'Hall
Volcker. This commitment has instilled confidence and laid of Fame' at the CNBC IBLA Awards last year. His inspiring words
the groundwork for sustained growth. Additionally, India’s there about India, ''the best is yet to come'', always resonate
demographic dividend, akin to the baby boomer generation deeply with us. I am proud to reaffirm this sentiment, as I
in the US, will continue to drive economic expansion, believe that the future holds great promise for both India and
HDFC AMC.

Navneet Munot
MD & CEO ANNUAL REPORT 2023-24 19
HDFC ASSET MANAGEMENT COMPANY LIMITED

Digitisation

Superior Experience,
Improved Productivity
Our strong digital presence is supported generation digital technologies,
by an integrated online platform. The our platforms deliver a superior
digital framework includes separate user experience to our customers,
solutions for our partners and customers. distributors as well as employees.
Powered by advanced analytics and next-

Electronic and Physical Transactions (%)

50%
Increase in Mobile App downloads

30%+
FY 19-20 FY 23-24

Growth in MFD Digital Marketing

Electronic 69 Electronic 90
Physical 31 Physical 10
solution user base

20 POWERED BY PURPOSE
 CORPORATE OVERVIEW Digitisation

Digital Stack
Investors Partners Engagement &
Support Channels

Investor
HDFC Mutual Portal
Partners Partners Co‑browsing Callback
Fund
App Portal Services Services

Chat Bot Agent Help Journey

One Click Link Admin ARN
Desk Management
Portal Hardcoded Link

Live Chat
WhatsApp Transact One Click WhatsApp
for Investors on Call Link for Partners
Foundation Tools

Website Transact on API Customer Personalisation

Call Gateway Data Platform Tools

Digital Marketing
Marketing Automation
Solutions

Key initiatives in FY 23-24

We have taken various measures to strengthen our digital Success Stories
platforms to support the scale of our mission. 1. Mobile App downloads increased by 50% and
Key Initiatives all ratings above 4
2. MFD Digital Marketing solution user base continues
1. Complete website revamp
to grow by over 30%
2. Partner portal and App significant upgrade
3. 100%+ improvement across key campaign metrics
of capabilities and features
4. Collaborated with Google for Rich Communication
3. Investor App refresh
Services (RCS) as a communication channel,
4. RegTech
first in the AMC industry
5. Leveraging AI/LLMs (Large Language Model)
5. In-house platform continues to drive high
engagement rate with active users and new sign-ups
6. An Industry First RegTech solution for
automating SID generation
7. Leveraging AI and LLMs for enhancing productivity
and bringing new dimensions to investment
decision making

ANNUAL REPORT 2023-24 21

HDFC ASSET MANAGEMENT COMPANY LIMITED

Investor Outreach

Investor Education and

Awareness Initiatives
In FY 23-24, HDFC Mutual Fund significantly expanded its efforts to raise awareness and
educate investors on the intricacies of investing. This year, we launched the 'Zindagi Ke Liye
SIP' campaign, a major initiative rooted in human insight to promote long-term investing
through Systematic Investment Plan (SIP). Additionally, we continued our successful
'#BarniSeAzadi' campaign for the third consecutive year, furthering our commitment to
educating investors about the benefits of investing over traditional saving methods.

#ZindagiKeLiyeSIP Consistency – Father’s Love

Zindagi Ke Liye SIP is an investor education and awareness We premiered our 'Zindagi Ke Liye SIP' campaign with
initiative that aims to cultivate lasting financial literacy badminton film that narrates a father's daily routine of
among the Indian masses. The campaign aims to connect preparing his garage for his daughter to practice badminton.
on an emotional level and shifts away from the functional This act symbolises a consistent investment he is making for
aspects of Systematic Investment Plan. It connects our daily her brighter future.
quest for a better life with SIP, emphasising the importance
of consistent effort. This comprehensive 360-degree media
campaign includes ad films, extensive outdoor advertising,
TV commercials and digital and social initiatives.

https://youtu.be/yKtHTnyCFL4?si=X83QZKECfP2hUd0Q

22 POWERED BY PURPOSE
 CORPORATE OVERVIEW Investor Outreach

Women’s Day Start Early - Seekh

To mark Women's Day, we unveiled a film under 'Zindagi Ke 'Seekh' is a short film under the initiative 'Zindagi Ke Liye
Liye SIP'. This tribute celebrates the extraordinary women SIP', which portrays a powerful narrative about a father who
whose inspiring lives act as SIP of motivation for other confesses his mistakes to his child. This act of confession by
women. Their relentless efforts are carving out a path for the father is his SIP towards ensuring his child's betterment
future generations, creating a lasting impact of courage and development as a responsible and empathetic individual.
and empowerment.

https://youtu.be/9H854wGQi34?si=Z5c7VeN4UUJ20mFy https://youtu.be/QQoVeAnUdWA?si=i5Kw0KpAkJdiBg08

Children’s Day Happy Diwali

On the occasion of Children’s Day, we unveiled a heart- Our Diwali film captured the essence of returning home,
warming film that showcased the deep trust children have in reuniting with loved ones, and immersing ourselves in
their parents. This trust is an SIP that encourages the parents celebration. It is a heartfelt reminder of the joy we share and
to become better individuals. It appealed to emotions while the bonds that unite us, it is an SIP to spread happiness in
emphasising the significance of financial planning for life's our world.
milestones and crafted a compelling narrative that resonates
with audiences.

https://youtu.be/0n6BCwc7z-M?si=ZlDrTbbnLKPTa4cU https://youtu.be/fOK6KqxrCXc?si=6RgnrvGKvyvZvI7-

ANNUAL REPORT 2023-24 23

HDFC ASSET MANAGEMENT COMPANY LIMITED

Investor Outreach

ELSS Campaign Retirement – Start Early

Our investor education and awareness campaign on Equity The short film aims to urge people to plan for their
Linked Savings Scheme (ELSS) highlighted its two key retirement and start investing early.
aspects their growth potential through equity investments
and tax-saving. Our strategy included a comprehensive
digital outreach and an extensive outdoor advertising effort
to ensure widespread visibility and engagement.

https://youtu.be/SqvpJXmg2SI?si=bYWjVH71r_9sL-Q0

BarniSeAzadi - Nukkad Natak

On the occasion of 76th Independence Day, we conducted 76
Nukkad Nataks in regional languages under #BarniSeAzadi,
across the length and breadth of India to financially empower
Indian households and encourage healthy investing habits.

SIP Eazy
'SIP Eazy' is an insightful video
series dedicated to investor
education and awareness. It
simplifies and demystifies the
complex concepts related to
SIP. Through engaging and
easy-to-understand content,
'SIP Eazy' aims to empower
viewers with the knowledge
and confidence they need to
make informed investment
decisions, promoting financial
literacy and fostering a culture
of prudent investing.
https://youtu.be/Yfdphi8YQC0?si=gNkGdoa46kzXeoi0

24 POWERED BY PURPOSE
 CORPORATE OVERVIEW Bridge to Success

Bridge to Success

Marketing
Initiatives
In alignment with our mission to be the wealth creator for every Indian, we extended
our physical presence by opening 24 new branches across India, making it more
convenient for investors to access our services. Furthermore, to cater to the diverse
needs of our investor community, we launched 13 new funds, thereby enhancing our
product offerings and providing more tailored investment options. At HDFC Mutual
Fund, we prioritise sustainable growth and recognise the significant impact that
small efforts can have on the environment. In this spirit, we launched the third phase
of our #NurtureNature campaign, reinforcing our commitment to environmental
stewardship.

Cancer Care - HDFC Charity Fund for Cancer Cure 24 in Twenty Four
We introduced the HDFC Charity Fund for Cancer Care, which Furthering our mission to be the wealth creator for every
allows investors to contribute towards cancer care. HDFC Indian, HDFC Mutual Fund proudly announced the launch of
Mutual Fund matches the investment made by the investor 24 new branches. To share this exciting news, we rolled out an
and donates the doubled amount to the Indian Cancer Society. extensive print and digital campaign.

https://youtu.be/wxKKuOlBRTY?si=ngskQWYrObEh0HEC

ANNUAL REPORT 2023-24 25

HDFC ASSET MANAGEMENT COMPANY LIMITED

Bridge to Success

Nurture Nature 3.0

On World Environment Day, we proudly advanced our
'Nurture Nature' campaign, originally launched in 2021. This
year, for every digitally registered SIP during the campaign, we
recycled 250 grams of plastic. The campaign was a resounding
success, resulting in the recycling of 4,200 kg of plastic,
thereby strengthening our commitment to sustainability and
environmental stewardship.

Person of the Year 2023 The Final Frontier

At the beginning of the calendar year, we released ’The Person An insightful article by Mr. Navneet Munot discussing the
of the Year 2023’ an article by Mr. Navneet Munot, which was fundamentals of personal finance.
an interesting look at the year gone by.

26 POWERED BY PURPOSE
 CORPORATE OVERVIEW Bridge to Success

HDFC MF Yearbook 2024

Our annual Yearbook 2024 titled ‘India in Amrit Kaal’ takes We launched the following NFOs during
a look at the year gone by and captures interesting future the year:
trends and developments.
» HDFC Charity Fund for Cancer Cure (2023)
It comprehensively covers key developments, trends and
insights on » HDFC Defence Fund

» HDFC NIFTY Midcap 150 Index Fund

» Year Gone By

» Global Economy » HDFC Nifty Smallcap 250 Index Fund

» Indian Economy » HDFC Non-Cyclical Consumer Fund

» Equity Market Outlook » HDFC S&P BSE 500 Index Fund

» Fixed Income Outlook
» HDFC Transportation and Logistics Fund
» Funds in Focus
» HDFC NIFTY 1D RATE LIQUID ETF

» HDFC Technology Fund

» HDFC Pharma and Healthcare Fund

» HDFC NIFTY PSU BANK ETF

» HDFC NIFTY200 Momentum 30 Index Fund

» HDFC NIFTY Realty Index Fund

ANNUAL REPORT 2023-24 27

 HDFC ASSET MANAGEMENT COMPANY LIMITED

ESG Initiatives

Path to Sustainable
Progress
Building upon HDFC Group’s strong commitment to ethical conduct and good corporate
governance, we are in complete alignment with these values and recognise that true
prosperity is built on a foundation of sustainability. We are committed to integrating
ESG principles into our business practices catalysing a positive impact on both our
financial performance and the world we live in.

Our ESG materiality map identifies topics that could impact our business, the communities
we operate in and the environment. By formally assessing these topics, we aim to analyse
risks and opportunities facing our business. This analysis helps us allocate resources and
direct efforts to create long-term value for our stakeholders.

We will continue to revisit this assessment periodically to ensure that our ESG strategy,
business goals and reporting are aligned with stakeholder concerns and expectations, as
well as with the emerging topics in the asset management industry. By working together,
we aim to create a positive impact on society and the environment while fulfilling our
responsibilities as one of the leading asset managers in the country.

ESG Materiality Map

Selling practices

Responsible investment

Customer satisfaction
Increasing importance to stakeholders

Economic performance
Corporate governance,
business ethics & compliance
Transparency & Disclosures
Financial inclusion Data privacy and
Community development cyber security

ESG Governance & Board oversight Risk management

Digitalisation
Human rights Brand reputation

Diversity, Equity and Inclusion Employee upskilling,

talent attraction & retention

Resource efficiency (GHG Employee well-being & safety

Responsible procurement
Emissions, Water, Waste)

Climate risk

Increasing importance to HDFC AMC

Environmental Social Governance

28 POWERED BY PURPOSE
 CORPORATE OVERVIEW ESG Initiatives

We believe that achieving sustainability

goals is essential for creating value for all
stakeholders. This has led to the integration Our ESG mission
of ESG consideration into our business
To create sustainable wealth for every
decisions and operations.
stakeholder by focusing on three Ps - People,
Planet & Prosperity"
Our ESG and CSR Committee of the Board Drives
our ESG Framework.

For responsible investing, we have furthered the definition

of ESG to include Engagement, Stewardship, and ‘Good to
Environment Great’ factors.

Well-being of Inclusive Engagement: We monitor and actively engage with the

Employees Growth
investee companies on various topics such as executive
compensation, dividend distribution policies, capital
allocation, related party transactions, ESG strategy, etc. The
Sustainable
Ethics, aim of engagement is not only to improve ESG integration to
Stakeholders Future Transparency &
Accountability limit risks, but also to improve the impact of the organisation’s
business on environment and society at large.

Stewardship: We have adopted the stewardship code,

Diversity
Customer
in line with regulatory guidance. We view stewardship
First as a step towards improved corporate governance in
Human
the investee companies and improving the interests of
Rights investors. Our investment team aims to vote in an informed
and pragmatic manner, as we consider shareholder voting
to be an important shareholder right and a valuable tool for
decision-making.
Responsible Investing Good to Great: We focus on rational investing by
identifying businesses that have the potential to achieve
We have demonstrated our commitment to include ‘Good to Great’ corporate transformations and aspire to
Environmental, Social, and Governance (ESG) factors in play the role of an active partner in this journey through
investment decision-making and ownership by becoming a highly constructive Engagement and Stewardship.
signatory to the internationally recognised United Nations
Supported Principles for Responsible Investment & Climate There is one common thread that binds all of our funds,
Action 100+. We have also adopted the globally recognised and it is their longevity and formula for wealth creation:
CFA Institute Asset Manager Code. ‘Sound Investment + Time + Patience’

ANNUAL REPORT 2023-24 29

HDFC ASSET MANAGEMENT COMPANY LIMITED

ESG Initiatives

Environment
Planet: A Key Stakeholder
We recognize that climate change is not just an environmental
issue but also a business risk. At HDFC AMC, we are committed 1900+ Kg 90%
to identifying and acting on opportunities to reduce our of E-waste processed Transactions are
negative impact on the environment and promote a culture
of sustainability.
in an environment supported by
friendly manner integrated online
Sustainable Sourcing platform
» Eco friendly diaries sourced from
Not-for profit organisation
» NFC & QR Code enabled Business Cards

4,000+ Kgs 59,000 sq. ft.

of plastic waste was processed in an Development and sustentation of Kalina
environmentally friendly manner under our Biodiversity Park under our CSR initiative
#NurtureNature campaign

30 POWERED BY PURPOSE
 CORPORATE OVERVIEW ESG Initiatives

Social
1,509
Head count

28%
Women Employees

~64,500
Employee training hours

1,000+
Employees attended workshop on
We take pride in our presence across the country, which has Climate Change and Energy Literacy
allowed us to develop strong and lasting relationships with
our key stakeholders: customers, distributors, shareholders,
employees, suppliers and the community at large.
Certified as
Our People a Great Place to Work (GPTW)
Our employees are the backbone of our success. We invest
in their growth and well-being, fostering a collaborative and
inclusive work environment. By empowering our team with
the resources and support they need, we ensure not only their
success but also the sustained excellence of our company.

HDFC AMC won the Best Financial

physically Wellbeing Initiatives Award 2023 - For
energised Shaping Healthier and Happier Workplace

emotionally mentally
engaged focused

ANNUAL REPORT 2023-24 31

HDFC ASSET MANAGEMENT COMPANY LIMITED

ESG Initiatives

Customers Improving Financial Literacy

Customer centricity is at the heart of our mission. We strive to Financial literacy is fundamental to our business, as we
continuously elevate our standards, moving from exceptional recognise that a lack of financial knowledge can prevent
service to customer delight. Excellence in customer service individuals from realising their dreams and achieving financial
embodies our core principles and we deeply value the trust stability. At HDFC AMC, we leverage our extensive investment
our customers place in us, 'Bharosa Apno Ka'. experience to promote financial literacy among the masses.

» We provide a comprehensive set of platforms for the

900+ 2.7 Lakh

customers to transact

» We reduced the minimum subscription amount for digital

SIPs and lumpsum transactions to I100 Investor Awareness Participants reached
» Centralised email management for customers, resulting in Programmes through our 3,300+
faster and standardised responses since launch of Investor Awareness
» Introduced digital journey for customers to do seamless #BarniSeAzadi Programmes.
KYC updates campaign

96 lakh 1.66 Crore

Unique investors Live accounts

32 POWERED BY PURPOSE
 CORPORATE OVERVIEW ESG Initiatives

#Investinothers
HDFC Charity Fund for Cancer Cure, a unique Mutual
Fund Scheme that allows to contribute towards
a visible cause

2 Lakh+ 3,000+
Children were provided Cancer patients
access to Foundational provided with
Learning financial aid

11,000+
Children given access to quality
education and nutritious meals

Inclusive Growth
Our key CSR projects focus on healthcare, education, environmental sustainability and sports development. We are dedicated
to making a meaningful impact in these areas, driving positive change to foster a more inclusive and sustainable society.

Governance
56 % 11 27 %
Ethics is central to our corporate ethos and drives our
corporate governance philosophy. Governance includes not
just workplace ethics, disclosures and regulatory compliance,
but it also includes our environmental and societal obligations. of our Ethics of our
Our ESG and CSR Committee of the Board provides guidance,
Board of workshops leadership
leadership, and necessary oversight for our Company’s ESG Directors are conducted for team are
initiatives. The management-level ESG Task Committee, Independent employees women
consisting of representatives from various departments,
integrates ESG aspects into our organisation's culture and
core business processes.
First Indian AMC
to collaborate with Institute of Risk
Management as a knowledge partner
Adopted CFA Institute’s
Asset Manager Code

ANNUAL REPORT 2023-24 33

HDFC ASSET MANAGEMENT COMPANY LIMITED

Our Board of Directors

Mr. Deepak Parekh Ms. Renu Sud Karnad

Non‑executive Director Non‑executive
and Chairman Director
DIN: 00009078 DIN: 00008064

Mr. Deepak Parekh (79) served as Chairman of HDFC Ltd from Ms. Renu Sud Karnad is a Non‑Executive Director on the
1993 to 2023, contributing 45 years to the Company. Under Board of HDFC Asset Management Company Limited since
his leadership, HDFC Ltd, India’s first retail housing finance July 4, 2000. She was the Managing Director of Housing
company made home ownership a reality for millions across Development Finance Corporation Limited till 30 th June
the country. HDFC Ltd. merged with HDFC Bank on w.e.f. July 2023. From 1st July 2023, she is a Non-Executive and Non-
1, 2023, making HDFC Bank one of the top 10 banks globally independent Director on the Board of HDFC Bank Ltd.
by market capitalization.
Ms. Karnad is the Chairperson of GlaxoSmithKline
His vision transformed HDFC into a leading financial services Pharmaceuticals Limited and a director on the boards of HDFC
conglomerate covering banking, asset management, Asset Management Company Limited, HDFC ERGO General
insurance, property funds, education and education loans. Insurance Company Limited, HDFC Capital Advisors Limited,
Bangalore International Airport Authority Limited and EIH
He is a fellow of Institute of Chartered Accountants, 'England
Limited. Ms. Karnad is also a director on the board of Nudge
& Wales'. He is on the Board(s) of several leading Companies
Lifeskills Foundation and PayU Payments Private Limited.
across diverse sectors.
She holds a Master’s degree in Economics from the University
Mr. Parekh has been honoured with several awards and
of Delhi and a Bachelor’s degree in Law from the University
accolades viz. Padma Bhushan, one of the highest civilian
of Mumbai. She is a Parvin Fellow – Woodrow Wilson School
awards by Government of India in 2006; Bundesver
of Public and International Affairs, Princeton University, USA.
dienstkreuz Germany’s Cross of the Order of Merit, one of
Ms. Karnad has had to her credit, numerous awards, and
the highest distinction by the Federal Republic of Germany
accolades. Prominent among them being featured in list of ‘25
in 2014; Knight in the Order of the Legion of Honour, one of
top non‑banking women in finance’ by U.S. Banker magazine,
the highest distinctions by the French Republic in 2010; first
listed by Wall Street Journal Asia as among the ‘Top Ten
of a network of international ambassadors for championing
Powerful Women to Watch Out for in Asia’. “Outstanding,
London across the globe by the Mayor of London in 2017;
Woman Business Leader” by CNBC‑TV18, 25 Most Influential
first international recipient of the Outstanding Achievement
Women Professionals in India by India Today.
Award by the Institute of Chartered Accountants in England
and Wales in 2010 and Lifetime Achievement Award at CNBC
TV18’s 15th India Business Leader Awards, 2020.

34 POWERED BY PURPOSE
 CORPORATE OVERVIEW Our Board of Directors

Mr. V Srinivasa Ms. Roshni

Rangan Nadar Malhotra
Executive Director Independent Director
DIN: 00030248 DIN: 02346621

Mr. V. Srinivasa Rangan is the Executive Director (i.e. Ms. Roshni Nadar Malhotra is an Independent Director on
Whole-time Director) of HDFC Bank Limited. He was the the Board with effect from April 27, 2019. She is Chairperson
Executive Director and Chief Financial Officer of erstwhile of HCLTech and Chairperson of its CSR Board Committee.
Housing Development Finance Corporation Limited. He She is also the Trustee of the Shiv Nadar Foundation, which
holds a Bachelor's degree in Commerce from University is committed to nation-building by driving transformational
of Delhi and is an Associate of the Institute of Chartered leadership through education. Ms. Malhotra is the Chairperson
Accountants of India. He is an expert in finance, accountancy, and driving force behind VidyaGyan, an institution specifically
audit, economics, corporate governance, legal & regulatory designed to identify and nurture gifted students from rural
compliance, risk management and strategic thinking. He communities and create transformation through free quality
has vast experience in housing finance and real estate education. She is also the Founder & Trustee of the Habitats
sector. Mr. Rangan has worked on international consulting Trust, a foundation working towards protecting habitats
assignments in housing finance in Ghana and the Maldives. He and their indigenous species. Passionate about wildlife and
has been a member of various committees related to financial nature, she founded the Trust with the mission of conserving
services such as RBI's Committee on Asset Securitization and and protecting sustainable ecosystems through strategic
Mortgage-Backed Securitization, Technical Group formed by partnerships and collaborations with all stakeholders.
National Housing Bank (NHB) for setting up of a Secondary Ms. Malhotra is a member of the Dean’s Advisory Council
Mortgage Market Institution in India, NHB’s Working Group at the MIT School of Engineering, USA and a member of the
on Covered Bonds and NHB's Working Group on Credit Kellogg School of Management Executive Board for Asia.
Enhancement Mechanism. Mr. Rangan was conferred the In 2023, Roshni was conferred with the Schaffner Award by
'Best CFO in the Financial Sector for 2010' by ICAI. He was also Kellogg for her contribution to the society. She serves on
honoured with the Lifetime Achievement Award at the sixth the board of directors of the US-India Strategic Partnership
edition of Financial Express CFO Awards 2023. Forum (USISPF). In recognition of her outstanding work both
in business and in philanthropy, Ms. Malhotra has received
several honours and accolades including being featured
for the seventh consecutive year in ‘The World’s 100 Most
Powerful Women’ list, compiled and released by Forbes in
2021. She is an alumnus of the Forum of Young Global Leaders
(YGL), a unique and diverse community of the world’s most
outstanding, next-generation leaders, an initiative of the
World Economic Forum. Ms. Malhotra holds an MBA from
the Kellogg Graduate School of Management with a focus on
Social Enterprise and Management and Strategy.

ANNUAL REPORT 2023-24 35

HDFC ASSET MANAGEMENT COMPANY LIMITED

Our Board of Directors

Mr. Dhruv Kaji Mr. Jairaj Purandare

Independent Director Independent Director
00192559 DIN: 00159886

Mr. Dhruv Kaji is an Independent Director on the Company’s Mr. Jairaj Purandare is an Independent Director on the
Board with effect from October 31, 2018. He holds a Bachelor’s Company’s Board with effect from October 31, 2018. He is the
degree in Commerce from the University of Mumbai and Founder Chairman of JMP Advisors Pvt Ltd, a leading advisory,
is an Associate Member of the Institute of Chartered tax and regulatory services firm, based in Mumbai, India.
Accountants of India. He was the Finance Director of He has over four decades of experience in tax and business
Raymond Limited, Executive Director of Pinesworth Holdings advisory matters and is an authority on tax and regulation in
Pte. Ltd. (Singapore) and a Director on the boards of Raymond India. He was Regional Managing Partner, Chairman – Tax and
Apparel Limited, ColorPlus Fashions Limited, Hindustan Oil Country Leader – Markets & Industries of Pricewaterhouse
Exploration Company Limited, Balaji Telefilms Limited, Balaji Coopers, India. He was earlier Chairman of Ernst & Young
Motion Pictures Limited and Diamines & Chemicals Limited. India (EY) and Country Head of the Tax & Business Advisory
He is currently an advisor, guiding business strategies and practice of Andersen India. He has considerable experience
organisational development, both in India and abroad. He is across the Financial Services, Infrastructure, Power, Telecom,
also on the Board of Network18 Media & Investments Limited, Media, Pharma and Auto sectors.
TV18 Broadcast Limited and Ceinsys Tech Limited.
International Tax Review (Euromoney), in its report –
World’s Leading Tax Advisors has named him several times
as among the leading Tax Advisors in India. A frequent
speaker at seminars in India and abroad, he has presented
several papers in areas of his expertise, including inbound/
outbound investment structuring, international tax,
transfer pricing, M&As, Indian Budget and Economy. He
is an Independent Director on the board of other listed
companies. He is a Fellow member of The Institute of
Chartered Accountants of India and holds a B.Sc. (Hons)
from the University of Mumbai.

36 POWERED BY PURPOSE
 CORPORATE OVERVIEW Our Board of Directors

Mr. Parag Shah He is a Director on several companies such as Mahindra

Independent Director Accelo, Mahindra Waste to Energy, The Indian and Eastern
DIN: 00374944
Engineer Company, MME (Sharjah), Global Chess League
(Geneva) & PSL Media and Communication. He is also an
Independent Director on the Board of HDFC AMC Ltd.

Mr. Shah holds a BS Degree in Computer Engineering from

the Illinois Institute of Technology with special electives
in Psychology and Manufacturing Technology. He is also a
graduate of the General Management Program from Harvard
Business School. He has been an Executive Committee
Mr. Parag Shah is an Independent Director on the Company's Member of the CII National Committee on Private Equity and
Board with effect from January 22, 2019. Mr. Shah is the Venture Capital, FICCI Solar Energy Task Force, CII National
Founder and Partner of Amara Partners, a mid-market Committee on Renewable Energy, CII National Healthcare
Private Equity fund. Amara Partners provides growth capital Council, American Alumni Association in addition to other
to businesses and supports entrepreneurs in strategy, external associations. He is also an angel investor and is on the
innovation, digitization, change management, governance Board of Trustees of the IndUS Entrepreneurs (TiE), Mumbai.
and business transformation. Mr. Shah has been recognised by Economic Times & Spencer
In a career spanning over 25 years, he has held various Stuart as India’s Top 40 Business Leaders under the age of 40.
positions with the Mahindra Group and in his last role, he was He was also featured by India Today as ‘Leaders of Tomorrow’
a Member of the Group Executive Board. Parag has extensive in their anniversary issue. He is affiliated with various NGO
experience in building new businesses, turn arounds, joint associations such as Sabarkantha Relief Committee and
ventures, mergers & acquisitions and IPOs. He was the S&G Charitable Trust. He has also been a Founder Director of
Managing Partner of Mahindra Partners, the 1 Bn USD Private Executives Without Borders, an NGO based in USA.
Equity and Venture Capital division of the Group that was
in charge of diverse businesses like Logistics, Renewable
Energy, Retail, Manufacturing (Steel components, Conveyor
Systems, Boats), Consulting, Media and Healthcare. He had
also set up the Group Silicon Valley office for technology
investments and start-up partnerships. Parag was Chairman
of the GPMD program, Co-Chairman of the Group Diversity
Council, Member of Group Sustainability and an Executive
Committee member of various councils of Mahindra
Learning University. He was the Group Lead for business
representation in Israel.

ANNUAL REPORT 2023-24 37

HDFC ASSET MANAGEMENT COMPANY LIMITED

Our Board of Directors

Mr. Sanjay Mr. Navneet Munot

Bhandarkar Managing
Independent Director Director & Chief
Executive Officer
DIN: 01260274
DIN: 05247228

Mr. Sanjay Bhandarkar is an Independent Director on the Mr. Navneet Munot has been Managing Director and Chief
Company’s Board with effect from October 31, 2018. He Executive Officer of the Company from February 16, 2021.
has over three decades of corporate finance, advisory and HDFC AMC manages over 6.5 lakh crore across Equity
investment banking experience in the country. He is also and Fixed Income Mutual Funds for over 95 lakh unique
currently an independent non-executive director on the investors across the country. Mr. Munot is also the Chairman
boards of other listed companies, Tata Power Company of the Association of Mutual Funds in India (AMFI) and had
Limited and Chemplast Sanmar Limited and also on the chaired Advisory Committee on Environmental, Social and
board of other unlisted companies, Tata Projects Limited Governance constituted by SEBI.
and National Investment and Infrastructure Fund Limited, on
He has over three decades of experience in the financial
the latter as a shareholder nominee. Mr. Bhandarkar is on the
services industry. In the past, he had worked with SBI Funds
Investment Committee of the South Asia Growth Fund II as
Management Private Limited as an Executive Director and
well as the South Asia Growth Fund III of GEF Capital Partners
Chief Investment Officer (CIO) and was a key member of the
as an external IC member. He is on the advisory board of
Executive Committee since December 2008. As the CIO, he
1Crowd, a seed capital stage online investing platform which
was responsible for overseeing investments over $ 150 billion
has also raised a SEBI approved fund for seed stage investing.
across various asset classes in mutual funds and segregated
Mr. Bhandarkar started his career with ICICI in 1990 and
accounts. He was also a nominee director on the Board of SBI
ISec, the joint venture between ICICI and JP Morgan, and
Pension Funds Private Limited.
then spent two years with Peregrine Capital. He was part of
the founding team of Rothschild India in 1998 and played a He had also worked with Morgan Stanley Investment
key role in establishing Rothschild as a well recognised and Management in 2007 as an Executive Director and head
respected pure play advisory investment banking firm in of multi-strategy boutique and then joined SBI Funds
India. He led the Rothschild India business from December Management Private Ltd in December 2008.
2005 to June 2016 when he stepped down from his full-time
He has a Master's degree in Accountancy and Business
role. Mr. Bhandarkar’s focus at Rothschild was on M&A as well
Statistics and is a qualified Chartered Accountant. He is also
as equity capital market advisory for Indian and international
a charter holder of CFA Institute and CAIA Institute and done
companies. He led the teams that worked closely with the
Financial Risk Management (FRM) from Global Association of
Government of India on the 3G and BWA spectrum auctions,
Risk Professionals.
the first e-auctions done in India, and on the restructuring
of the Enron and GE owned Dabhol power project, one
of the largest and most complex restructurings to date.
Mr. Bhandarkar did his MBA from XLRI, Jamshedpur in 1990.

38 POWERED BY PURPOSE
 CORPORATE OVERVIEW Our Leadership Team

Our Leadership Team

Navneet Munot
Managing Director and
Chief Executive Officer

Alok Sheopurkar Chirag Setalvad Harish Narayanan Leena Vijayvargiy Naozad Sirwalla
Head – Head – Equities Chief Digital and Chief Risk Officer Chief Financial Officer
Human Resources Marketing Officer

Naveen Gogia Rajiv Maniar Sameer Seksaria Shobhit Mehrotra Simal Kanuga
Co-Head – Sales & Co-Head – Sales Head - Corporate Head – Fixed Income Head – PMS Sales, New
Distribution, Co-Head – & Distribution Client Services Initiatives and Product
International Business, Development, Co-Head –
Head – Public Relation International Business and
CIRO (AMC)

Supriya Sapre Sylvia Furtado V Suresh Babu

Chief Compliance Company Secretary Head – Operations
Officer and Head - Legal

As on June 30, 2024

ANNUAL REPORT 2023-24 39

HDFC ASSET MANAGEMENT COMPANY LIMITED

Investment Team

Abhishek Mor Abhishek Poddar Amit Sinha Anand Laddha

Fund Manager and Dealer Senior Equity Analyst and Senior Equity Analyst and Fund Manager - Equities
-Equities Fund Manager Fund Manager and Senior Equity Analyst

Anil Bamboli Anupam Joshi Arun Agarwal Balakumar B

Senior Fund Manager - Fund Manager - Fund Manager and Dealer Senior Equity Analyst and
Fixed Income Fixed Income - Equities Fund Manager

Bhagyesh Kagalkar Chirag Setalvad Dhruv Muchhal Gopal Agrawal

Senior Equity Analyst and Head - Equities Equity Analyst and Senior Fund Manager
Fund Manager Fund Manager for - Equities
Overseas Investments

Mitul Patel Nikhil Mathur Nirman Morakhia Praveen Jain

Head - PMS Investments Senior Equity Analyst and Fund Manager and Dealer Senior Credit Analyst and
Fund Manager -Equities Fund Manager

Priya Ranjan Rahul Baijal Rakesh Sethia Roshi Jain

Senior Equity Analyst and Senior Fund Manager Senior Equity Analyst and Senior Fund Manager
Fund Manager – Equities Fund Manager - Equities

Shobhit Mehrotra Srinivasan Swapnil Jangam Vikash Agarwal

Head - Fixed Income Ramamurthy Fund Manager and Dealer Fund Manager and Dealer
- Fixed Income - Fixed Income
Fund Manager - Equities

40 POWERED BY PURPOSE
Statutory Reports

42
Management Discussion and Analysis 42

Director's Report 64

Business Responsibility and Sustainability Report 83

Corporate Governance Report 124

HDFC ASSET MANAGEMENT COMPANY LIMITED

Management Discussion and Analysis

Macroeconomic Update Key events of FY 23-24

Global • Fitch Ratings lowered the US sovereign credit rating to

AA+/Stable, while Moody's revised the outlook to Negative
FY 23-24 will be remembered as a year of resilience, with
(although it reaffirmed the AAA rating). S&P maintained an
growth, inflation and labour market exceeding initial forecasts.
AA+/Stable rating for the US.
Developed countries, especially the US defied predictions
of a slowdown, and stayed resilient thanks to increased • Hamas militants from the Gaza strip launched an attack on
government spending, a robust job market, rising wages, Israel, leading to a conflict between Israel and Hamas.
consumer spending and positive wealth effect. Further, the
• Both the US and European banking sectors encountered a
manufacturing and housing sectors, which were struggling
crisis due to a series of bank collapses, prompting central
during most part of the year, also showed signs of stabilisation
banks to intervene and contain the resulting ripple effect.
by Q4FY24. In contrast, Europe and the UK witnessed a
slowdown in growth due to factors like war, high interest rates, • The Bank of Japan (BoJ) ceased its Negative Interest Rate
elevated natural gas prices, and weaker consumer confidence. Policy (NIRP) and Yield Curve Control (YCC), raising its
China, too, faced headwinds despite an initial growth boost policy rate to a range between 0-10 basis points.
after reopening from deterioration in its real estate sector
• RBI surprised by pausing in April 2023 and has since
and softening of exports. However, robust consumption,
maintained the status quo.
especially services, healthy industrial investment and the
government’s thrust on infrastructure provided impetus for • JP Morgan announced the inclusion of India's Government
growth. Overall, global growth turned out to be better than Securities (Gsecs) in its Global Bond EM Indices, effective
earlier expectations. June 2024. Bloomberg also included Indian Gsecs in its EM
Local Currency Government Index starting Jan-2025.
Despite a year marked by geopolitical uncertainty, continuing
wars, Red Sea crisis and risk of supply chain disruptions, soft • Central government presented its “Vote on Account”
growth in China triggered commodity prices corrections budget for FY 24-25. It targets to reduce its fiscal deficit to
during the year. Further, rising interest rates and concerns 5.1% of GDP (FY24RE: 5.8%) in FY 24-25 and bring it down
about an impending slowdown dampened the commodity to <4.5% by FY 25-26.
markets. However, oil price rose towards the end of the
India
year driven by robust demand, production cuts by OPEC+
and intensification of war between Ukraine and Russia. Gold GDP growth momentum sustained by investment,
performed exceptionally well among commodities, breaking private consumption subdued: India's growth momentum
its usual negative correlation with US dollar and stocks, as accelerated and GDP growth surpassed even the most
China emerged as a large buyer. optimistic forecasts, driven by robust growth in capital
expenditure. The surge in investments was particularly
Inflation eased significantly from its peak across most supported by a resurgence in real estate activities and pick
Advanced Economies (AEs), driven by corrections in food, up in government's infrastructure spending. Although private
energy, and commodity prices. Although core inflation consumption saw only modest growth supported by urban
also trended downward, it persistently remained above demand, the rural sector faced challenges due to the uneven
central banks' comfort zone targets throughout the year. monsoon and elevated food inflation, leading to subdued
Consequently, major central banks maintained a tight rural income. Gross Value Added (GVA) also witnessed
monetary policy. However, towards the end of the year, most significant growth, primarily fueled by robust manufacturing
central banks signaled the end of rate hikes in this cycle. and construction activities. However, the services sector
activity decelerated as trade and hotels spending inched
towards normalisation.

42 POWERED BY PURPOSE
 STATUTORY REPORTS Management Discussion and Analysis

YoY Change (%) FY23 FY24 YoY Change (%) FY23 FY24
Gross Domestic Production (GDP) 7.0 8.2 Gross Value Added (GVA) 6.3 7.2
Private consumption 6.8 4.0 Agriculture and ancillary 4.1 3.3
Government consumption 9.0 2.5 Industry 1.8 8.1
Gross capital formation 5.5 9.4 Manufacturing (2.5) 7.6
Gross Fixed capital formation 6.6 9.0 Construction 9.4 9.6
Services 9.6 7.7
Exports of goods and services 13.4 2.6 Trade, hotels, transport, etc. 11.9 6.9
Imports of goods and services 10.6 10.9 PADO 8.6 7.0

Source- CMIE, MoSPI, Ambit Capital research. Note –PADO: Public Administration, Defence & Other Services 2) GFCF- Gross Fixed capital Formation

Going forward, India’s growth trajectory is expected to Retail inflation cools down but remains elevated: FY 23-24
remain steady, supported by likely revival in rural sector brought a much welcome relief in Consumer Price Index (CPI).
and continuance of investment spending led by robust real CPI eased driven by broad-based improvement in inflation of
estate activities. non-food component of CPI and favourable base effect. Food
inflation remained persistently high, propelled by increased
Central government finances in a comfortable position:
prices of vegetables, fruits, pulses, and cereals. Fuel and light
Revenue collections surprised on the upside in FY24 led by
inflation displayed relief driven by the government's reduction
robust growth in both personal and corporate tax. Indirect
in LPG prices and subdued firewood chips prices. Year-on-
tax collections, however, remained sluggish. While GST
year, transportation and communication inflation remained
collections continue to grow at a healthy pace, excise
low due to a base effect and the absence of any changes in
collections were subdued on back of reduction in windfall
retail auto fuel prices through most part of the year. While Core
taxes levied on Oil & Gas sector. The non-tax receipts were
CPI also eased considerably, but still remained at an elevated
healthy driven by higher than expected dividends from the
level driven by an increase in personal effects, education, and
Reserve Bank of India (RBI) and Public Sector Undertakings
healthcare services inflation.
(PSUs). The government exercised significant restraint over
revenue spending which has grown only marginally compared Average (YoY, %) FY23 FY24 Change in %
to last year. More importantly, government strategically CPI 6.7 5.4 (1.3)
front-loaded capital spending to stimulate growth, with the Food & beverages 6.7 7.0 0.3
railway and road sectors emerging as primary beneficiaries of Fuel and Light 10.4 1.3 (9.1)
this spending. Housing 4.3 3.9 (0.4)
(₨ billion) Transportation & 5.9 1.9 (4.0)
communication
Change
FY23 FY24
(YoY) Core CPI@ 6.7 5.1 (1.6)
Gross tax revenue 30,538 34,648 13.5%
Source: CMIE; @-CPI excluding food, fuel & light, housing and
Total Direct Tax 16,341 19,220 17.6% transportation & communication
Total Indirect Tax 14,197 15,428 8.7%
Less: Share of States 9,564 11,383 19.0% Despite lingering uncertainty regarding food inflation, the
& others momentum of core CPI has significantly eased in the second
Net Tax collection 20,974 23,265 10.9% half of FY 23-24. The correction in global commodity prices
Non-Tax Revenue 2,862 4,019 40.4% also eased input price pressures and kept a lid on consumer
Total Revenue Receipts 23,835 27,284 14.5% prices. Given the favourable base and the subdued momentum
Total Capital Receipts 722 605 (16.2)% in core CPI, inflation is anticipated to average around 4.5% in
Total Receipts 24,557 27,889 13.6%
FY 24-25 (Source: RBI).
Total Revenue Expenditures 34,525 34,940 1.2%
Total Capital Expenditures 7,363 9,485 28.8%
Total Expenditures 41,888 44,425 6.1%
Gross Fiscal Deficit (17,331) (16,537) (4.6)%
Fiscal Deficit as % of GDP (6.4)% (5.6)%

Source: CMIE

ANNUAL REPORT 2023-24 43

HDFC ASSET MANAGEMENT COMPANY LIMITED

Current account deficit narrows significantly, likely to Summary and Conclusion

remain in manageable range: India's Current Account Deficit
Contrary to expectations of a slowdown, growth remained
(CAD) witnessed a significant decline in the first nine months
surprisingly resilient and better than anticipated in FY 23-24,
of FY24, following a sustained growth in services exports and
particularly in the United States. The tight labour market,
fall in commodity prices, particularly in oil, coal, and fertilisers.
accumulated savings and large wealth effect aided the growth
Rise in gold prices resulted in to higher net gold imports.
momentum. Consequently, AEs witnessed further monetary
Services exports grew driven by resilient software services
policy tightening and rate cut expectations were pushed
and robust growth in professional and other management
out. In contrast, China's economic activity faced continued
services led by global capability centres (GCC). India’s net
challenges as the real estate sector continued to struggle
Foreign Direct Investments (FDI) inflows experienced a
despite multiple rounds of government support measures.
sharp decline due to increasing global uncertainties and
increased outflows, particularly through exits via Initial Public In India, the growth momentum remained robust, supported
Offerings (IPOs). Additionally, interest rate-sensitive inflows by buoyant economic activity, a thriving housing market,
such as trade credit and External Commercial Borrowings government thrust on capital expenditure, and strong
(ECBs) remained weak, due to the elevated global interest corporate profitability. This growth momentum is expected to
rate environment. Nevertheless, buoyant Foreign Portfolio continue in the upcoming year driven by a potential recovery in
Investments flows in both equity and debt sectors neutralised the rural sector, ongoing emphasis on capital expenditure, and
the overall impact. easing of inflationary pressures. The RBI maintained the repo
(USD billion) rate throughout the year but liquidity deficit pushed Weighted
India's external situation FY23 FY24 Change Average Call Rate (WACR) higher than repo rate in H2FY24.
Trade (deficit) /surplus (265) (242) 23 While the external sector is modestly vulnerable due to
Net Oil imports (112) (96) 16 elevated global interest rates, comfortable foreign exchange
Net Gold imports^ (33) (42) (9) reserves and a manageable current account provide a buffer.
Trade deficit ex oil & (120) (104) 16 Key risks to this outlook include the escalation of geopolitical
gold (NONG) tensions, a resurgence of inflation, tightening measures by
Net invisibles exports 198 219 21 major central banks, and a sharp rise in energy prices.
surplus/(deficit)
Current account deficit (67) (23) 44 Equity Market Update
% of GDP (2.0) (0.7) 1.3
Indian equities saw a broad-based rally in FY 23-24 resulting
Capital account 57.8 86.9 29.1
surplus/(deficit) in total market capitalisation surpassing USD 4 Trillion for
FDI 28.0 9.8 (18.2)
the first time. India became the 5th largest equity market
FII (5.2) 44.1 49.2
globally. NIFTY/S&P BSE Sensex ended the year higher by
~29%/25% respectively. Notably, Midcap and Smallcap
NRI deposits 9.0 14.7 5.7
indices significantly outperformed. Key drivers/events during
Trade credits, ECBs, 2.7 (5.8) (8.5)
etc. the year included resilient growth in the US, the Israel-Hamas
Banking capital 12.6 24.6 12.0 conflict, rise in oil prices, ongoing monetary tightening by
Others 10.7 (0.5) (11.2) the central banks in Advanced Economies (AEs), volatility in
Balance of payments (9.1) 63.7 72.8 US and European yields, disappointment in China's growth,
robust domestic growth, and substantial government
Source: CMIE, Ministry of Commerce; NM – Not meaningful. ^ Net Gold capex. Most sectors ended the year with strong gains, with
includes gold, silver and pearls precious & semiprecious stones adjusted
for gems and jewellery exports. NONG refers to Non-Oil Non-Gold (as
Utilities, Capital Goods, Auto, Healthcare, and Oil & Gas as the
defined above) imports/exports key outperformers.

India’s CAD is expected to stay within manageable levels in Globally, most equity indices across Advanced Economies
FY 24-25, bolstered by the resilience of services exports. (AEs) and Emerging Markets (EMs) experienced gains, except
Additionally, the capital flows are expected to improve on for China and Hong Kong. The following tables provide details
back of potential inflows resulting from India's Government on the performance of key domestic and global indices.
Securities (Gsec) inclusion in JP Morgan global bond indices
and a likely improvement in FDI flows.

44 POWERED BY PURPOSE
 STATUTORY REPORTS Management Discussion and Analysis

% Change in Indices FY23 FY24 Broad Market Outperforming

S&P BSE India Auto 17.5 74.0 (%)
S&P BSE India Bankex 10.2 16.3 78
S&P BSE India Capital Goods 25.0 77.3
Broad Market
S&P BSE India FMCG 23.6 17.2 74 Outperforming
S&P BSE India Healthcare (10.0) 60.2
S&P BSE India Metal (14.2) 47.0 70

S&P BSE India Power (10.8) 85.9

66
S&P BSE India Oil & Gas (7.2) 59.0 NIFTY
S&P BSE India IT (21.8) 25.2 Outperforming
62
S&P BSE SENSEX 0.7 24.9
NIFTY 50 (0.6) 28.6 58
NIFTY Midcap 100 1.2 60.1

Mar-04
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Mar-16
Mar-17
Mar-18
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Mar-24
NIFTY Smallcap (13.8) 69.8
Source: Bloomberg BSE 100 Market Cap to Total Market Capitalisation Average
% Change in Indices FY23 FY24
Source: Bloomberg
S&P 500 (9.3) 27.9
Nasdaq (14.1) 34.0 Past performance may or may not be sustained in future
FTSE 1.5 4.2 and is not a guarantee of future returns
DAX 8.4 18.3
CAC 9.9 12.1 Corporate profitability remains robust: Listed corporates
Nikkei 0.8 44.0 depicted improvement in profitability, driven by rise in profits
Hang Seng (7.3) (18.9) in the energy sector (Oil & Gas, Power, Coal, etc.), banks and
Shanghai 0.6 (7.1) the automotive industry. This positive trend has outweighed
KOSPI (10.2) 10.9 the subdued performance observed in IT and metal sectors.
MSCI Emerging Market (13.3) 5.3
The corporate profits to GDP ratio in FY24 climbed to ~5%,
In FY 23-24, Foreign Portfolio Investors (FPIs) turned net marking the highest level in the past decade.
buyers and bought equities worth USD 25.3 Billion (FY23: net
seller of USD 5.1 Billion). Domestic Institutional Investors
Net Profit of listed Companies
Profit/Losses as % of GDP
(DIIs) stayed net buyers, purchasing equities worth USD 25.3 7
Billion in FY 23-24 (FY23: net purchase of USD 32.2 Billion).
6
Flows into equity-oriented mutual funds remained steady,
reaching over I 2,60,000 crore in FY24 vs over I 1,80,000 5

crores in FY23. 4

Key trends of FY 23-24 3

Broad based market rally led by small and midcaps: Returns 2

from mid and small cap stocks outpaced that of large caps. The
1
market capitalisation of top 100 stocks as % of total market
capitalisation fell to ~62%, below the 20-year average of ~70%. 0
Post this rally, midcap and small cap returns vis-à-vis large caps
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
Dec.07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24

is substantially higher in both -near- and long-term time frame.

Source: ICICI Securities
CAGR Returns %
As on March 31, 2024
1 Year 3 Years 5 Years 10 Years Rising participation of retail investors: Following the trend
Nifty 50 (A) 28.6% 15.0% 13.9% 12.8% of democratisation of investments, retail participation in
Nifty Midcap (B) 60.1% 26.6% 21.4% 18.8%
the equity markets surged further in FY 23-24. Systematic
Outperformance NIFTY 50 31.5% 11.6% 7.4% 6.0%
(B-A)
Investment Plan (SIP) flows, a proxy of retail participation, has
Nifty Smallcap (C) 69.8% 23.5% 18.0% 15.3% been consistently rising post pandemic and average monthly
Outperformance Vs 41.2% 8.5% 4.1% 2.5% gross SIP flows have doubled in last 3 years. Total SIP AUM now
NIFTY 50 (C-A) forms ~35% of the Assets Under Management (AUM) of the
Source: Bloomberg

ANNUAL REPORT 2023-24 45

HDFC ASSET MANAGEMENT COMPANY LIMITED

Mutual Fund industry for equity-oriented schemes. Moreover, 10Y Gsec and NIFTY Earning Yield
this expansion in retail participation has been widespread, %
with a sharp increase in number of folios. 12.0

Average SIP per Month

(I Billion)
166
6.0
130
104
77 83 80

FY19 FY20 FY21 FY22 FY23 FY 24

Source: AMFI
-6.0
Outlook

Mar-04
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Mar-16
Mar-17
Mar-18
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Mar-24
As on March 31, 2024, NIFTY 50 was trading at ~20.7x FY25E
price to earnings multiple. The Market cap-to-GDP ratio Gap Earnings yields India 10-y G-Sec yields (%)
stood at ~105% (based on CY25 GDP estimates) and the gap Source: Kotak Institutional Equities; For 2024 and 2025, the market cap
between 10Y G-sec yield and 1Y-Forward NIFTY 50 earnings as on March 31, 2024 is taken and divided by GDP estimates for CY24 and
yield* remained at elevated levels [*Earnings yield = 1/ (one CY25
year forward P/E)]. Thus, current valuation multiples are at
Valuations for most major sectors are higher than their long-
premium to their historical averages. However, one should
term averages as shown in the table below:
view these valuations in the context of structurally attractive
nominal GDP growth, a healthy corporate earnings outlook 12 months forward Price To Earnings
and robust de-levered corporate and banking balance sheets. 31-Mar-24 LTA
Discount /
Premium^
Market capitalisation to GDP Electric utilities 17.2 10.7 61.2
% No. of times PSU Banks@ 1.5 1.1 34.5
160 25
149 IT services 24.7 20.3 22.2
140 Pharma 28.7 23.6 21.4
121 20 Oil and gas$ 14.5 12.1 19.9
120 116
99 98 110
100 105 Metals& 11.4 10.0 14.6
88
100 92 95
15 Consumer Discretionary 59.3 52.3 13.5
55 81
80 75 71 77 77
69 72 Auto 21.9 19.3 13.5
61 65
55 10 Consumer staples 38.2 34.9 9.5
60
48
Private Banks@ 2.3 2.6 (10.8)
40 35
30 5
26
Source: Kotak Institutional Equities. Stocks are part of Kotak Institutional
20
Equities universe. $-Oil & Gas sector PE is high mainly due to one company.
0 0 Excluding that, the multiple is 7.8x vs 10-year average multiple of 8.1x.
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024E
2025E

LTA – 10 Years average. Cells in green are sectors which are trading
at a premium. All figures are calculated based on 12 months forward
Market capitalisation to GDP (%) P/E (X, RHS) estimates.
^to Long term (LT) average, @-Price to Book value.

46 POWERED BY PURPOSE
 STATUTORY REPORTS Management Discussion and Analysis

The sharp equity rally in the current financial year led to small inclusion in global bond indices led to significant increase in
cap and mid cap indices significantly outperforming. They now FPIs flows post September 2023, which capped any significant
trade at a noteworthy premium to their historical valuation as rise in yields at the long end. The Corporate bond spreads were
well as that of large caps. largely stable compared to the previous year. The table below
gives a summary view of movement of key rates and liquidity:
Outlook for equities remain positive over the medium to long
term considering the structurally robust domestic growth March March Change
31, 2023 31, 2024 (%)
outlook, healthy corporate profitability and supportive
MIBOR Overnight Rate (%) 7.79 7.90 0.11
government policies. However, it is essential to acknowledge
that any sharp slowdown in global growth, escalation of 3M Gsec yield (%) 6.74 7.01 0.27
geopolitical tensions and re-acceleration in inflation globally 10Yr Benchmark G-Sec 7.31 7.06 (0.25)
Yield^ (%)
or locally remain the key near-term risks.
AAA 10Year Corporate 7.81 7.52 (0.29)
Bond Yields#, & (%)
Debt Market Update AAA 10Y Corporate 50 47 (0.03)
FY 23-24 was a year of significant volatility for global fixed bond spread against 10Y
benchmark@ (bps)
income markets, particularly in Advanced Economies (AEs).
Average net liquidity 1,603 -55 (103.5)
Amidst synchronised tightening by major central banks absorbed/infused by RBI*
worldwide, AEs witnessed significant swings in yields as both (INR billion) during the year
growth and inflation exceeded expectations. The year began
NM – not meaningful. ^-bi-annual yield; #-annualised yield; & - Bloomberg
on sober note with US and European Banking crisis resulting AAA corporate bond index is used. @ - Spreads calculated by subtracting
in sharp fall in the yields. However, the swift response by non-annualised Gsec yields from annualised corporate bond yields.
AEs central banks nipped the crisis in the bud. The resilient
*Average net daily liquidity infused/absorbed through Liquidity
economic activity, elevated inflation and limited fallout of the Adjustment Facility, exports refinance, marginal standing
banking crisis, led to the US Fed and other major AEs central facility, standing deposit facility and term repos/reverse repos.
banks persisting with rate hikes. In H2FY24, with easing Source: Bloomberg, RBI
inflation in the United States, coupled with dismal growth
During the year, the average interbank liquidity experienced
in Europe and the US Federal Reserve's pivot in December,
a significant decline, primarily driven by an increase in
yields declined substantially. However, this was short lived
government cash balances rise in currency in circulation, and
and reversed in Q4FY24 as inflation, economic activity and
Open Market Operations (OMO) sales conducted by the RBI.
labour markets surprised significantly on the upside and rate
This reduction in liquidity was partially mitigated by forex
cuts expectations were pushed back to later in the year. By
purchases carried out by the RBI.
the end of the year, 10-year government bond yields in US and
UK ended 73 bps and 44 bps higher than last year. However,
Foreign Portfolio Investors (FPIs), including those under
Germany’s 10-Year bond yields were largely flat as the
the Voluntary Retention Route, made debt investments
concerns of economic growth weighed on yields.
totalling $14.2 Billion in FY 23-24, exhibiting a noteworthy
Conversely, Indian Government Securities (Gsec) yields shift from FY 22-23 when there was a net sale of $0.4 Billion.
trended lower during FY 23-24 and 10-year Gsec yields ended The announcement of inclusion of Indian Gsec in JP Morgan’s
the year at 7.06%, 25 basis points lower. The curve flattened as global bond indices played a pivotal role in this turnround
long-end yields rallied, while short-end yields closed the year with approximately 80% of these flows occurring in H2FY24,
higher than the previous year. The announcement of in-line following the announcement.
market borrowing in the budget, coupled with a pause by the
RBI in April 2023, led to yields falling in the first half. However, Credit markets remained largely stable throughout the year.
elevated inflation, primarily driven by food prices, along with While credit spreads reached their low point in 2022, they
the draining of interbank liquidity by the RBI and the possibility registered a modest increase in 2023 due to the expansion in
of Open Market Operations (OMO) sales to manage liquidity, corporate bond supply. However, these spreads still remained
resulted in rising yields in the second half at the short end, below historical averages, as demand continued to be robust.
although yields at the long end remained rangebound. India's

ANNUAL REPORT 2023-24 47

HDFC ASSET MANAGEMENT COMPANY LIMITED

Spread of 3Y AAA Corp bond over 3Y Gsec However, there are counter balancing factors which can put
(%) upward pressure on yields
2.00

1.80
• Regular food price shocks can keep headline CPI elevated
while sustained growth momentum can result in
1.60
reacceleration in core inflation.
1.40

1.20
• SLR holdings of the banking system is high and credit
growth is robust. Thus, incremental demand for G-Secs is
0.80
likely to remain muted.
0.60
• Recent rise in commodity prices, especially crude oil,
0.40
sustaining due to escalation of geopolitical tensions
0.20
leading to disruption in supply chain.
0
Overall, yields are likely to trade with a downward bias and
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Sep-19
Mar-20
Sep-20
Mar-21
Sep-21
Mar-22
Sep-22
Mar-23
Sep-23
Mar-24
the long end of the yield curve is likely to outperform over the
medium term.
3Y AAA Corp over 3Y Gsec LTA (Since Jan-10)
Source: Bloomberg Source for various data points: Bloomberg, NSDL, CMIE, RBI, Kotak
Institutional Research, Union Budget 2024-25, ICICI Securities, AMFI,
Outlook World Bank, Daily valuation provided by ICRA/CRISIL.
In FY 23-24, the Indian fixed income markets demonstrated
A3. Industry Environment
relative stability, in contrast to the high volatility witnessed in
the debt markets of the US and other advanced economies. Assets Under Management
This resilience can be attributed to several factors, including The Indian mutual fund industry concluded FY 23-24 with
fiscal discipline, consistent demand from long-term buyers Assets Under Management (AUM) aggregating ₨ 53.4 Lakh
such as insurance and provident funds, easing core inflation, Crore, reflecting YoY growth of 35%.
a correction in commodity prices, and a comfortable external
The industry witnessed substantial net flows amounting to
sector characterised by ample forex reserves and an
₨ 3.5 Lakh Crore during the year. The primary driver of net
improving current account.
flows were actively managed equity-oriented funds, which
The outlook for fixed income for FY 24-25 remains favourable attracted ₨ 2.4 Lakh Crore in FY 23-24, an increase from ₨
in view of the following key drivers: 1.6 Lakh Crore in FY 22-23. New Fund Offers from actively
managed equity-oriented funds contributed meaningfully to
• Inclusion of India’s sovereign securities in JP Morgan bond
this figure, with ₨ 54,589 Crore in net flows.
index bodes well for demand outlook for G-Sec in next
year and can potentially act as a cap on any significant rise In addition to actively managed equity-oriented funds, equity
in yields. index funds witnessed net new flows of ₨ 24,705 Crore in
FY 23-24.
• Core CPI momentum remains subdued on the back
of lower input price pressure and rangebound global The net flows into debt-oriented funds and debt exchange-
commodity prices. traded funds (ETFs) amounted to ₨ 8,273 Crore and ₨ 10,914
Crore respectively. However, debt index funds experienced
• Government reiterated its commitment to bring down
net outflows of ₨ 9,015 Crore, resulting in combined net flows
fiscal deficit to less than 4.5% of GDP by FY 25-26. This
of ₨ 10,171 Crore in debt, encompassing both active and
should keep market borrowings within manageable levels.
passive instruments.
• External sector likely to be supported by steady services
The industry’s unique investor base expanded to 4.46 Crore,
exports and adequate foreign exchange reserves.
marking the addition of 69 Lakh new investors. This expansion
• Rate hike cycle in AEs has ended and expectations of rate underscores the growing appeal of mutual fund investments
cuts during the year are high. The RBI is also likely to follow among investors.
the suit and cut rates in second half of FY 24-25, although,
we expect a shallow rate cut cycle.

48 POWERED BY PURPOSE
 STATUTORY REPORTS Management Discussion and Analysis

Closing AUM Demographics

(I in Lakh Crore) Individual investors continue to play a pivotal role in propelling
53.4
MF industry to new heights. Their robust participation amounted
39.4
to an impressive ₨ 33.3 Lakh Crore, constituting a 61% share
37.6
31.4
of the total Monthly Average AUM (MAAUM) for March 2024.
30.4
This surge reflects a burgeoning confidence among individual
22.3 20.0 19.4 23.0
18.4 18.1 19.5 investors in mutual funds as an instrument for wealth creation.
14.0 13.0
8.3 Meanwhile, institutional investors contributions amounted to ₨
21.7 Lakh Crore, comprising the remaining 39%.

FY20 FY21 FY22 FY23 FY 24 MAAUM by Investor Type

(I in Lakh Crore)
Equity-oriented AUM Non-equity AUM* Total AUM 33.3

Source: AMFI * Includes ETF, Arbitrage and FoF - Investing overseas

23.3
20.8 21.7
Mutual fund folios 17.3 16.9 16.8
14.9
The MF industry recorded a 22% increase in the number of 12.9 11.8
folios to 17.79 Crore as on March 31, 2024 from 14.57 Crore as
on March 31, 2023. Of the total, 17.68 Crore were folios from
individuals, up 22% YoY. Unique investors identified on PAN &
PEKRN increased by 18% to 4.46 Crore as on March 31, 2024. Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Mutual Fund Industry Folios Individual Institutional

(Crore) Source: AMFI
17.79
For March 2024, MAAUM was distributed in an 82:18 ratio
14.57
12.95 between the top 30 cities (T30) and beyond the top 30 cities
9.79
(B30). Despite comprising only 18% of the total MAAUM, B30
8.97
cities contributed 27% to Equity-oriented MAAUM.
MAAUM by Cities
(I in Lakh Crore)
45.2

FY20 FY21 FY22 FY23 FY 24

31.5 33.2
Source: AMFI. Data as of March 31 for each year 26.9
20.9
SIP Flows
The industry continued its upward trajectory in terms of 9.8
5.2 6.2 6.8
monthly Systematic Investment Plan (SIP) flows with 4.28 3.8
crore new SIP registrations during the year. Total contributions
through SIPs for FY 23-24 reached ₨ 2.0 Lakh Crore, compared Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
to ₨ 1.6 Lakh Crore in FY 22-23. The industry continues to set B30 T30
records in terms of monthly SIP with flows for March 2024 Source: AMFI
reaching ₨ 19,271 Crore.
Indian MF Industry Trends
Mutual Fund SIP Flows
(I in Crore)
Over the past five years, the mutual fund industry in India
199,219 has experienced a remarkable journey, with a CAGR of 18%.
155,972 This increase is a testament to the industry’s ability to adapt
124,566 and thrive amidst evolving investor preferences and dynamic
100,084 96,080
market landscapes.

Net inflows into mutual funds over the past five fiscal years
have clocked ₨ 9.79 Lakh Crore, with a significant portion
FY20 FY21 FY22 FY23 FY 24 – ₨ 6.17 Lakh Crore – flowing into active equity-oriented
Source: AMFI schemes. This influx of capital reflects growing confidence of

ANNUAL REPORT 2023-24 49

HDFC ASSET MANAGEMENT COMPANY LIMITED

investors in the equity markets and their willingness to accept B2. Operational performance review
mutual funds as a vehicle for wealth creation.
Assets under management
One notable trend stands out: The meteoric rise of SIPs. Our closing AUM, as on March 31, 2024, rose 39% to ₨ 6.07
Monthly SIP flows have more than doubled from ₨ 8,055 Crore Lakh Crore from ₨ 4.37 Lakh Crore as on March 31, 2023.
in March 2019 to ₨ 19,271 Crore in March 2024, signalling Equity‑oriented AUM rose 62% to ₨ 3.97 Lakh Crore from
a paradigm shift in investor behaviour. The number of SIP ₨ 2.46 Lakh Crore as on March 31, 2023. Equity‑oriented
accounts has surged to 8.40 Crore as on March 31, 2024, up assets formed 65% of our total AUM on a closing basis. Our
from a modest 2.62 Crore, a growth of over 3 times in just market share in total closing AUM and actively managed
five years. equity‑oriented funds stood at 11.4% and 12.8%, respectively.

Healthy growth of mutual fund AUM in India AAAUM for FY 23-24 was at ₨ 5.44 Lakh Crore versus ₨ 4.36
(₨ in Lakh Crore) Lakh Crore for FY 22-23. AAAUM for actively managed
2019 2020 2021 2022 2023 2024 equity‑oriented schemes increased by 40% to ₨ 3.04 Lakh
Equity-oriented AUM 10.21 8.26 13.00 18.08 19.98 30.43 Crore from ₨ 2.17 Lakh Crore.
Debt-oriented AUM 7.30 7.76 10.58 9.51 9.19 9.99
Liquid AUM 4.36 4.15 4.08 4.48 4.28 4.25
Closing AUM
(I in Lakh Crore)
Other AUM 1.93 2.09 3.77 5.48 5.97 8.74 6.07
Total 23.80 22.26 31.43 37.57 39.42 53.40

Source: AMFI. Data as of March 31 each year. 4.37

3.95 4.08 3.97
3.19
From FY 2022, Equity-oriented AUM data includes 2.46
2.25 2.091.98 2.10
equity-oriented index funds and Debt AUM includes 1.97
1.70 1.91
1.22
debt-oriented index funds.

Review of Business FY20 FY21 FY22 FY23 FY 24

B1. Business overview Equity-oriented AUM Non-equity AUM* Total AUM

HDFC AMC offers a comprehensive suite of mutual fund * Includes ETF, Arbitrage and FoF - Investing overseas
and alternative investments across asset classes, including Unique Investors and systematic transactions
equity, fixed income, hybrid, and multi-asset solutions, both
We served a customer base of 96 Lakh unique investors, with
on active as well as passive platforms, catering to the needs of
a total of 166 Lakh live accounts. Our distinction as the top
a large and diverse customer base.
choice for individual investors is underscored by our MAAUM
HDFC AMC is Investment Manager to HDFC Mutual Fund, one market share for March 2024, standing strong at 13.3%.
of the largest mutual funds in the country with closing AUM
HDFC AMC processed 7.37 Crore systematic transactions
of ₨ 6.07 Lakh Crore and Annual Average AUM (AAAUM) of
between April 2023 and March 2024, amounting to
₨ 5.44 Lakh crore and market share of 11.4% on a closing basis
₨ 28,264 Crore. About 87% of all systematic transactions at the
as on March 31, 2024. Over the course of the year, we took
time of signing up are for a period of over 5 years and about 80%
significant strides in consolidating our brand as the one-stop
for over 10 years.
shop for investment solutions. This was achieved through the
launch of a variety of new fund offerings (NFOs) spanning both Number of Investors
active and passive categories. (Lakh)
166
The Company offers portfolio management and segregated
account services and alternative investment funds to a 114
diverse clientele, including high-net-worth individuals (HNIs), 94 90
99 96
family offices, domestic corporates, trusts, provident funds, 66
56 58
and domestic and global institutions. As on March 31, 2024, 53
aggregate assets under our portfolio management services
amounted to ₨ 2,425 Crore. Under our HDFC Alternatives
brand, we are in the fund-raising mode for our HDFC AMC
FY20 FY21 FY22 FY23 FY 24
Select AIF FOF-I, with commitments totalling to around
Unique Investors Live Accounts
₨ 800 Crore as on March 31, 2024.

50 POWERED BY PURPOSE
 STATUTORY REPORTS Management Discussion and Analysis

B3. Financial Performance • Operating Profit (Profit Before Tax less Other income)
increased by 22.21% to ₨ 1,900.13 Crore in FY 23-24
Standalone Financial Performance Review
• Our Company’s Total Income has increased by 27.38% to • PAT as a percentage of Annual Average AUM increased
₨ 3,162.43 Crore in FY 23-24 from 0.33% in FY 22-23 to 0.36% in FY 23-24

• Profit After Tax (PAT) stood at ₨ 1,945.88 Crore and grew by • Average Networth increased by 13.31% to ₨ 6,593.74 Crore
36.66% over FY 22-23 in FY 23-24

Financial Performance with Respect to our Operations

The financial statements have been prepared and presented on going concern basis and in accordance with the Indian
Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of
the Companies Act, 2013, (the ‘Act’) and other relevant provisions of the Act, as amended from time to time.

Indian Accounting Standards (Ind AS) – IFRS Converged Standards

The Company had adopted Ind AS with effect from April 01, 2018.

Material accounting policies used for the preparation of the financial statements are disclosed in note 3 to the
financial statements.

The following table sets forth selected financial information from our Statement of Profit and Loss for FY 23-24 and FY 22-23.
` (in Crore)
For the year ended For the year ended %
Particulars
March 31, 2024 March 31, 2023 Change
Revenue from Operations 2,584.37 2,166.81 19.27
Other Income 578.06 315.80 83.05
Total Income 3,162.43 2,482.61 27.38
Finance Costs 9.09 9.69 (6.19)
Fees and Commission Expenses 2.48 3.68 (32.61)
Employee Benefits Expenses 353.46 312.67 13.05
Depreciation, Amortisation and Impairment 52.26 53.34 (2.02)
Other Expenses 266.95 232.62 14.76
Total Expenses 684.24 612.00 11.80
Profit before Tax 2,478.19 1,870.61 32.48
Current Tax 517.52 421.26 22.85
Deferred Tax Charge/(Credit) 14.79 25.43 (41.84)
Tax Expense 532.31 446.69 19.17
Profit after Tax 1,945.88 1,423.92 36.66

Revenue from Operations

Revenue from operations comprises of investment management fees from Mutual Fund and portfolio management services
(PMS), Alternative Investment Fund (AIF) and other advisory services fee.

Investment management fees from Mutual Fund consists of fees from various schemes which invest in different categories of
securities like Equity, Debt etc. In general, fees per unit of AUM from schemes investing in equity securities are substantially
higher than schemes investing in debt securities. Within each of these categories of funds, there are variations in the fees per
unit of AUM based on factors like fund composition, fund size etc. Hence the quantum of fees is dependent on the size and
composition of the AUM and if there are any changes therein, it leads to higher or lower fees on an overall basis.

The increase in Revenue from Operations from ₨ 2,166.81 Crore in FY 22-23 to ₨ 2,584.37 Crore in FY 23-24, was largely due to
increase in investment management fee from Mutual Fund by 19.43% from ₨ 2,160.79 Crore in FY 22-23 to ₨ 2,580.60 Crore in
FY 23-24. The said increase was a result of higher component of Equity oriented schemes in the overall Annual Average AUM as
well as higher total Annual Average AUM in FY 23-24 as compared to FY 22-23.

ANNUAL REPORT 2023-24 51

HDFC ASSET MANAGEMENT COMPANY LIMITED

Other Income 1st, 2nd and 3rd year from the date of the grant respectively.
The total charge towards the outstanding stock options has
Our other income largely comprises of income from
increased from ₨ 40.11 Crore in FY 22-23 to ₨ 47.05 Crore in the
investments which are generated from retained surpluses.
FY 23-24 and the same is appearing as Share Based Payments
Other income shows a significant increase by 83.05% from
to Employees.
₨ 315.80 Crore in FY 22-23 to ₨ 578.06 Crore in FY 23-24 largely
due to higher returns on investments. ccounting for equity settled share based payment
A
transaction (employee stock options) at fair value increases
Finance Costs the non cash component of Employee Benefits Expenses and
is also reflected in Share Options Outstanding Account under
Finance costs are on account of accounting treatment
Other Equity. This balance of Share Options Outstanding
prescribed under Ind AS 116 – Leases, where the future
Account is transferred to Securities Premium as and when the
lease payments are discounted to its present value and are
stock options are exercised by the employees and subsequent
un-wound subsequently, resulting in finance cost.
allotment of shares to them. Hence, this charge is neutral to
Equity of the Company.
Fees and Commission Expenses
Fees and commission comprise primarily of commissions paid • Accordingly, the employee benefit expenses increased
to distributors for PMS, AIF and advisory business. Our fees by 13.05% from ₨ 312.67 Crore in FY 22-23 to ₨ 353.46
and commission expenses decreased from ₨ 3.68 Crore in Crore in FY 23-24. However, excluding the above
FY 22-23 to ₨ 2.48 Crore in FY 23-24. mentioned non-cash charge towards employee stock
options, the employee benefit expenses has increased
Employee Benefits Expenses by ₨ 33.85 Crore i.e. 12.42%.

Our employee benefits expenses increased due to the Depreciation, Amortisation and Impairment
following reasons:
Our Depreciation, Amortisation and Impairment decreased
• An increase in salaries and allowances of employees from ₨ 53.34 Crore in FY 22-23 to ₨ 52.26 Crore in FY 23-24,
which was led by increase in certain emoluments for primarily due to lower depreciation/amortisation charge on
employees in FY 23-24. computer equipment & computer software which is partially
offset by a higher depreciation charge on Right of Use Asset.
• Under Employees Stock Option Scheme - 2020 ('ESOS
- 2020'), apart from stock options granted in the past
year(s), the Nomination and Remuneration Committee Other Expenses
(NRC) of the Board of Directors of the Company at its Our other expenses increased by 14.76% from ₨ 232.62 Crore
meeting held: in FY 22-23 to ₨ 266.95 Crore in FY 23-24 primarily due
to increase in ‘Software Expenses and Allied Services’,
(i) On April 25, 2023 had approved a further grant of
‘Trademark license fees’ and ‘KYC expenses related to Mutual
10,50,000 stock options representing 10,50,000
Fund Investors’. This rise in expenditure was due to various
equity shares of ₨ 5 each, at a grant price of
business & digital initiatives taken by the Company.
₨ 1,780.90 per equity share (being the market price
as defined in the applicable SEBI Regulations), to its
• Our Software Expenses and Allied Services cost
eligible employees.
increased from ₨ 30.50 Crore in FY 22-23 to ₨ 42.42
(ii) On January 10, 2024 had approved a further grant Crore in FY 23-24 due to continuing enhancements on
of 38,800 stock options representing 38,800 equity the technology front and digitisation initiatives during
shares of ₨ 5 each, at a grant price of ₨ 3,415.25 the current year.
per equity share (being the market price as
• Our Trademark license fees to parent company for the
defined in the applicable SEBI Regulations), to its
FY 23-24 was ₨ 7.56 Crore.
eligible employees.
• Our KYC expenses related to Mutual Fund Investors
In terms of ESOS – 2020, the options shall vest in three
increased from ₨ 5.15 Crore in FY 22-23 to ₨ 11.94 Crore
tranches. Each of these tranches consisting of 1/3 of
in FY 23-24 due to higher number of investors onboarded
the options granted shall vest on the completion of the
in FY 23-24 as compared to FY 22-23.

52 POWERED BY PURPOSE
 STATUTORY REPORTS Management Discussion and Analysis

The amount of other expenses incurred in FY 19-20 (pre covid Statement of Assets and Liabilities
level) was ₨ 195.43 Crore. The increase since pre covid level
The following table sets forth selected financial information
of FY 19-20, is at the rate of 8.11% (4 Years Compounded
from our Balance Sheet as at March 31, 2024 and March
Annual Growth Rate). We shall continue to invest further
31, 2023.
into technology and digital infrastructure to be future
ready. However, these expenses would be incurred in a (` in Crore)
calibrated manner. Particulars
As at As at
March 31, 2024 March 31, 2023
Assets
Profit Before Tax Financial Assets 7,328.81 6,310.68
As a result of the factors outlined above, our Profit Before Non Financial Assets 228.74 225.85
Tax increased by 32.48% to ₨ 2,478.19 Crore in FY 23-24 from Total Assets 7,557.55 6,536.53
Liabilities and Equity
₨ 1,870.61 Crore in FY 22-23.
Financial Liabilities 245.58 240.44
Non Financial Liabilities 232.90 187.68
Tax Expenses Total Liabilities 478.48 428.12
Our total tax expenses increased by 19.17% to ₨ 532.31 Crore Total Equity 7,079.07 6,108.41
in FY 23-24 from ₨ 446.69 Crore in FY 22-23. Our current tax Total Liabilities and Equity 7,557.55 6,536.53
charge increased to ₨ 517.52 Crore in FY 23-24 from ₨ 421.26
Crore in FY 22-23. Our deferred tax charge decreased to Financial Assets
₨ 14.79 Crore in FY 23-24 from ₨ 25.43 Crore in FY 22-23. The Investments
deferred tax charge is mainly on account of movement in fair Investments of the Company grew from ₨ 6,079.16 Crore in
value gains / losses on investments. Our effective tax rate, FY 22-23 to ₨ 7,190.03 Crore in FY 23-24.
including deferred tax was at 21.48% and 23.88% for FY 23-24
and FY 22-23, respectively. The effective tax rate for FY 23-24 • The increase in Investments carried at fair value through
is lower as compared to FY 22-23 primarily due to decrease Profit or Loss from ₨ 5,658.22 Crore in FY 22-23 to
in deferred tax charge for the year, mainly attributed to ₨ 6,892.53 Crore in FY 23-24 is primarily due to net
transition of holding period of certain investments from short investment in mutual fund schemes and fair value changes.
term to long term. Our Company had elected to exercise the
option of a lower tax rate provided under Section 115BAA of • The investments carried at amortised cost have decreased
the Income-tax Act, 1961. from ₨ 417.94 Crore in FY 22-23 to ₨ 263.50 Crore in FY 23-24
primarily due to maturity of certain tax free bonds.

Profit After Tax • A Wholly Owned Subsidiary (‘WOS’) of the Company

As a result of the factors outlined above, our Profit After Tax namely ‘HDFC AMC International (IFSC) Limited’, with its
increased by 36.66% to ₨ 1,945.88 Crore in FY 23-24 from principal place of business located in Gujarat International
₨ 1,423.92 Crore in FY 22-23. Finance Tec-City (GIFT City), Gandhinagar, India, had
been incorporated effective May 27, 2022. An amount
of ₨ 3.00 Crore had been invested in the WOS during the
Dividend
FY 22-23. A further capital infusion of ` 31.00 Crore was
Your Directors at their meeting held on June 7, 2024 have done during the FY 23-24.
declared an interim dividend for the financial year ended
March 31, 2024 of ₨ 70/- per equity share (1,400%) of face Non Financial Assets
value of ₨ 5/- each of the Company instead of final dividend There is no significant movement in the balance of Non
of ₨ 70/- per equity share for the financial year ended March Financial Assets.
31, 2024 as recommended earlier at the Board meeting held
on April 19, 2024. Accordingly, the Dividend payout ratio for
Financial Liabilities
FY 23-24 would stand at 76.80%, up from 71.95% for FY 22-23.
There is no significant movement in the balance of
Financial Liabilities.

ANNUAL REPORT 2023-24 53

HDFC ASSET MANAGEMENT COMPANY LIMITED

Non Financial Liabilities

Non Financial Liabilities have increased to ₨ 232.90 Crore in FY 23-24 from ₨ 187.68 Crore in FY 22-23. This increase is primarily
due to movement in net Deferred Tax balances and Other Non Financial Liabilities.

Total Equity
Total Equity has increased mainly due to higher retained earnings. Retained earnings represents the surplus profits after
payment of dividend.

Key Financial Ratios

For the year ended For the year ended Change
Particulars
March 31, 2024 March 31, 2023 (%)
Annual Average AUM (₨ in Crore) 543,710.44 436,126.02 24.67
Profit After Tax as a % of Annual Average AUM 0.36 0.33 9.62
Debtors Turnover (times) 18.66 16.78 11.20
Current Ratio (times) 6.78 6.15 10.24
Operating Profit Margin (%) 73.52 71.76 2.45
Net Profit Margin (%) 61.53 57.36 7.27
Note: Inventory Turnover Ratio is not applicable to the Company. Further, Interest Coverage Ratio and Debt Equity Ratio have not been presented as
the Company is debt free as at March 31, 2024 and as at March 31, 2023. The finance costs appearing in the Statement of Profit and Loss is a result of
accounting treatment under Ind AS 116 – Leases and accordingly, there is no obligation on the Company to service any interest cost.

Return On Networth (Computed On Average Networth)

` (in Crore)
For the year ended For the year ended
Particulars % Change
March 31, 2024 March 31, 2023
Networth at the Beginning of the Year 6,108.41 5,530.04 10.46
Networth at the End of the Year 7,079.07 6,108.41 15.89
Average Networth 6,593.74 5,819.23 13.31
Profit After Tax 1,945.88 1,423.92 36.66
Return on Average Networth (%) 29.51 24.47 20.60

Return on Average Networth increased from 24.47% in FY 22-23 to 29.51% in FY 23-24. This is due to a higher % change in PAT as
compared to % change in Average Networth. PAT has increased mainly due to higher revenue from operations as well as other
income leading to higher profits.

Incorporation of a Wholly Owned Subsidiary B4. Outlook

A Wholly Owned Subsidiary (‘WOS’) of the Company namely The mutual fund industry in India is poised for sustained
‘HDFC AMC International (IFSC) Limited’, located in Gujarat growth, driven by a combination of factors including
International Finance Tec-City (GIFT City), Gandhinagar, demographic trends, market dynamics, regulatory reforms,
India, had been incorporated effective May 27, 2022 and was and technological advancements.
capitalised during the financial year 2022-23. Accordingly,
consolidated financial statements of the Company have Growth Drivers
been prepared from FY 22-23. The WOS is in the business of • Financial literacy: As individuals become more aware of
providing Investment Manager Services, act as a sponsor/ the benefits of investing in mutual funds for achieving their
settlor for the GIFT AIF Funds and providing discretionary/ financial goals, they are likely to allocate a greater portion
non-discretionary portfolio management services to clients of their savings to these instruments.
(PMS). As at the end of the reporting period, the WOS is
in the process of setting up its business operations. The • Shift from traditional investments: As investors seek
consolidated financial statements are also available in this alternatives to traditional investment avenues like fixed
annual report. deposits and gold, mutual funds emerge as a convenient
and professionally managed option.

54 POWERED BY PURPOSE
 STATUTORY REPORTS Management Discussion and Analysis

• Growing SIPs: The growing popularity of Systematic • Distribution: Enhance distribution footprint and leverage
Investment Plans is expected to be a significant growth technology to boost accessibility and attract new investors.
driver. Large-scale campaigns aimed at promoting SIPs
• Corporate governance and risk management: Adopt
have improved outreach and awareness among investors,
best-in-class corporate governance practices and robust
encouraging them to adopt a disciplined approach to
risk management frameworks to ensure compliance,
investing. SIPs offer investors the flexibility to invest small
transparency, and accountability.
amounts regularly, thereby reducing the entry barrier and
appealing to a wider investor base. • Talent management: Focus on attracting and retaining top
talent fostering a culture of innovation and collaboration
• Burgeoning middle-class segment: India’s burgeoning
to encourage creative thinking and drive continuous
middle-class segment, characterised by rising disposable
improvement across all aspects.
incomes and aspirations, presents a significant growth
opportunity for the mutual fund industry. As individuals • ESG integration: Demonstrate our commitment to
strive to achieve their financial goals and secure their future, including environmental, social and governance (ESG)
mutual funds provide an avenue for wealth accumulation factors in decision- making and ownership.
and preservation, aligning with the aspirations of
this demographic. C. Internal Control Systems and their Adequacy
The Company has instituted adequate internal control
• Fintech platforms: The emergence and growth of fintech
systems commensurate with the nature of its business and the
platforms have democratised investing, bringing in a large
size of its operations. This provides a high degree of assurance
pool of new investors. These platforms offer user-friendly
regarding the effectiveness and efficiency of operations, the
interfaces, seamless transactions, and access to a wide
adequacy of safeguards for assets, the reliability of financial
range of investment options. As fintech adoption continues
controls and compliance with applicable laws and regulations.
to rise, it is expected to fuel the influx of new investors into
the mutual fund ecosystem. The Audit Committee and Risk Management Committee are
responsible for overseeing the risk management framework,
• Digital distribution: A robust distribution platform,
reviewing the key risks and mitigation strategies, and
coupled with the ease of transactions through digitisation,
ensuring the effectiveness of risk management policies
will the be key driver in reaching out to wider and deeper
and procedures. The Management is also responsible for
investor base across India. With the increasing penetration
ensuring that the risk management framework is effectively
of smartphones and internet connectivity, investors
implemented within all areas of their respective functions.
from remote areas and smaller towns can now access
mutual funds conveniently through online platforms and The Company has appointed an independent professional
mobile applications. firm to oversee and carry out an internal audit of its
activities. It carries out internal control reviews and provides
Strategic Priorities
an independent report to the Audit Committee on the
• Diversified investment solutions: Continuously assess adequacy and effectiveness of the risk management and
market opportunities, identify product offering gaps, and internal controls of the organisation. All significant audit
develop innovative investment solutions to meet evolving observations and follow-up actions thereon are periodically
investor needs. reported to the Audit Committee and closely monitored for
• Performance excellence: Set industry benchmarks for effective implementation.
long-term investment performance. Provide investors B S R & Co. LLP, the statutory auditors of the Company has
with transparent and insightful data to make informed audited the standalone and consolidated financial statements
decisions, thereby fostering trust and confidence in included in this annual report and has issued as a part of
our offerings. Auditors’ Report, a report on our internal financial controls
• Customer centricity: Continuously enhance service with reference to the financial statements (as defined in
quality, responsiveness, and personalisation to exceed Section 143 of the Companies Act, 2013).
customer expectations and build lasting relationships. Based on its evaluation, the Audit Committee has concluded
• Investor education: Committed to investor education that, as of March 31, 2024, our internal financial controls were
through diverse range of resources and initiatives, driven adequate and operating effectively.
by our eagerness to both grow the industry and ensure the
financial well-being of investors.

ANNUAL REPORT 2023-24 55

HDFC ASSET MANAGEMENT COMPANY LIMITED

D. Information Technology we remain committed to leveraging technology as a strategic

enabler, driving value for our stakeholders, and staying at the
Over the past year, we've made substantial strides in
forefront of the asset management industry.
advancing our technology infrastructure, marking a
cornerstone in our tech transformation journey. We have
deployed a future-ready Enterprise Data Warehouse E. Compliance
solution, integrating multiple source systems to establish a Our Compliance function monitors compliance with
centralised repository for actionable performance insights. regulatory requirements laid down by the Securities and
This single source of truth ensures consistency, accuracy, Exchange Board of India (SEBI) with respect to mutual fund,
and reliability, empowering teams to make informed decisions portfolio management services and alternative investment
independently, thereby reducing reliance on technology funds activities and other business activities permitted
experts and streamlining processes. under Regulation 24(b) of SEBI (Mutual Funds) Regulations.
The Compliance function is a bridge between us and various
Our focus on data-driven decision-making applications
regulators/industry bodies, such as SEBI, the RBI, the
has yielded deeper insights into market trends, customer
Association of Mutual Funds in India, the Association of
behaviour, and investment opportunities, enabling us
Portfolio Managers in India, depositories and stock exchanges.
to stay at the forefront in a rapidly evolving landscape.
The Chief Compliance Officer updates our Board and Audit
Additionally, the integration of data visualisation tools and
Committee on various compliance matters.
interactive dashboards has facilitated real-time monitoring
of performance metrics and progress against goals, We have implemented various internal policies and procedures
empowering stakeholders to derive timely insights to make to ensure compliance with the regulatory requirements
informed decisions. in relation to above businesses. Our Compliance Manual
also lists the regulatory requirements, timelines and the
To support our growing business needs, we have made
functions responsible for compliance. Employee’s Securities
strategic investments in infrastructure modernisation and
Dealing Codes regulate personal investment transactions
strengthening of cybersecurity measures. Comprehensive
of employees and that of their dependants. We have also
cybersecurity platforms and solutions, including threat
set guidelines for personal dealings for AMC as well as
protection and enhanced network isolation, have been
Trustee Company. Policies such as Conflict of Interest
seamlessly integrated to safeguard our data and systems
Policy, Outsourcing Policy, Policies under Risk Management
against evolving threats. The adoption of secure and elastic
Framework, Code of Conduct for Prevention of Circulation of
cloud platforms has enabled us to dynamically adjust
Unauthenticated News, Anti-Money Laundering (AML) and
computing resources based on demand, ensuring operational
KYC policy, and a Social Media Policy also ensure compliance
efficiency and cost-effectiveness. Moreover, our resilient
with regulations relevant to our businesses.
infrastructure architecture ensures uninterrupted service
and system stability even in the face of disruptions. Each function ensures compliance with applicable regulations
pertaining to its areas of operation. Accordingly, we have
The transition of our IT infrastructure to the cloud has not
established procedures, policies, codes and manuals, such
only improved operational efficiency but also promoted a
as the Investment and Risk Manual, Operations Manual,
culture of innovation within the organisation. Our shift to
Client Services Manual, Valuation Policy, Voting Policy, Polling
modern infrastructure has enabled rapid experimentation
Policy, Stress Test Policy, Cyber Security Policy, Cyber Crisis
and deployment of new solutions, allowing us to adapt to
Management & Resiliency Policy, Stewardship Code and Code
changing market dynamics with agility. The implementation
of Conduct for Fund Managers and Dealers. These are reviewed
of standardised interfaces has further enhanced seamless
and updated periodically. An established certification process
collaboration with strategic business partners, unlocking new
is followed by each function to periodically confirm compliance
avenues for growth and value creation.
with the regulatory requirements.
In conclusion, the past year has seen significant progress
Our compliance team stays updated on all new regulatory
in enhancing our IT capabilities to support our business
requirements and communicates the requirements to the
objectives effectively. From strengthening our data
relevant functions with meaningful inputs for implementation.
infrastructure to embracing advanced analytics and
The team also reviews the implementation status by closely
modernising our cybersecurity measures, we've laid a solid
coordinating with the respective functions.
foundation for future growth and innovation. Moving forward,

56 POWERED BY PURPOSE
 STATUTORY REPORTS Management Discussion and Analysis

We are committed to transparency and have also appointed in operations are regularly subjected to system reviews/
independent internal auditors to review the activities of each audits. The Audit Committee reviews all the Auditors’ Reports
department and function, including the compliance function. with respect to the entire operations.
They review relevant reports before submission to the Board
Mature, robust and scalable systems and processes form
and the regulators concerned. Periodical SEBI inspections and
the backbone of our operations. There is a keen focus on
statutory audits are also conducted to review and assess the
accuracy, internal controls, minimising operational risks and
compliance status.
increasing efficiency. All systems are regularly upgraded
The compliance team also drafts and issues product and all processes are re-engineered periodically to ensure
offer documents, issues notices/addenda related to a high standard of regulatory compliance and governance.
product documents, reviews marketing materials before We have a comprehensive BCP and Disaster Recovery Plan
dissemination, and ensures timely filing of various reports (DRP) for our operations, and it is reviewed and updated at
with the Board and regulators and agencies concerned. It is regular frequency. We completed a smooth transition of all
also responsible for the redressal of customer grievances. As our systems to the cloud environment architecture. A review
part of its periodic training initiatives, the compliance team of the adherence of our service providers to acceptable
engages with the employee(s) to educate, sensitise and create standards of governance & compliance, as well as their IT/
awareness about their obligations under the Regulations and BCP/ DRP preparedness is done regularly.
our Company’s codes/policies.
G. Risk Management
F. Operations Our Company has developed a comprehensive Risk
Our Operations are bifurcated into Mutual Fund (MF) Management Framework (RMF) to effectively manage key
Operations and Portfolio Management Services/ Alternative risks. This framework aligns with our business needs and
Investment (PMS/AIF) Operations. relevant legal and regulatory requirements. The RMF provides
guidance with respect to management for all risks relevant
The MF team is responsible for servicing customers of the
for the AMC and the schemes of HDFC Mutual Fund. To
Mutual Fund and Segregated accounts under regulation
ensure an effective and integrated Risk Management, the
24(b) of the SEBI (MF) Regulations. The responsibilities, inter
AMC has defined three lines of defence model, viz. First Line
alia, include investment administration, cash management,
of Defence comprises the CXOs; Second Line of Defence
treasury support and settlement, fund accounting, asset
comprises oversight functions viz. Risk Management and
valuation and unit pricing, coordination with the RTA/
Compliance; and the Third Line of Defence is the Internal
Custodians/Bankers/other Service Providers, audits and MIS.
Auditor. The Board approved Risk Management Framework
The PMS/AIF Operations team is responsible for maintaining details out our approach to risk management and the roles
the accounts of the clients under the SEBI PMS & AIF and responsibilities of all stakeholders.
regulations, as applicable. Its functions include post trade
The Board level Audit Committee and Risk Management
investment support, cash management, treasury and
Committee are responsible for overseeing the risk
settlement functions, recording of transactions in the
management framework, reviewing the key risks and
books of accounts of the respective clients, valuation of
mitigation strategies, and ensuring the effectiveness of risk
securities in clients’ portfolios, providing various reports to
management policies and procedures. The Management
the management and liaising with bankers and custodians.
also ensures the risk management framework is effectively
In respect of AIF Operations, its function includes oversight
implemented within all areas of respective functions.
of third-party vendor in charge of the Fund Administration,
Custody, Banking etc. Risk Management Process is a logical and systematic process
of identifying, analysing, evaluating, treating, monitoring and
The functions of the MF & PMS/AIF are segregated and they
communicating risks associated with activities, functions or
have their own discrete teams and systems.
process, in a way that enables an organisation to minimise
All operational activities are subject to independent audits. losses and maximise opportunities. The objective of risk
Internal auditors perform transactional and risk-based audit, management is not to eliminate risk, but to understand it
apart from undertaking process reviews on a regular basis. so that we can take measures to prevent its occurrence and
Independent auditors carry out the statutory audit as required minimise the downside and take advantage of the upside.
under the applicable regulations for our schemes, portfolio Risk assessment and mitigation strategies are an integral
management and segregated accounts. All applications used part of the risk framework within each function. The key

ANNUAL REPORT 2023-24 57

HDFC ASSET MANAGEMENT COMPANY LIMITED

risks covered are Investment Risk, Credit Risk, Liquidity Risk, H. Insurance
Operational Risk, Compliance Risk, Climate Risk, Technology
Our insurance policies cover the entire gamut of our operations
Risk, Information Security & Cyber Risk, Outsourcing Risk,
and protects the company from unexpected exigencies in
Reputation and conduct Risk, Sales and Distribution Risk,
the future. We have specialised policy insuring the schemes
Financial Reporting Risk, Tax Risk, Legal Risk and Talent Risk.
of HDFC Mutual Fund, HDFC Asset Management Company
Risk Management is integrated with major business processes Limited, including PMS, AIF and advisory/ management
such as strategic planning, operational management, and services to permitted categories of FPIs under Regulation
investment decisions to ensure consistent consideration 24(b) of SEBI (Mutual Funds) Regulations, which, in addition to
of risks in all decision-making. Our Company continuously our Company, also includes our employees, directors and the
adapts to international best practices that address regulatory trustee company of HDFC Mutual Fund. Our insurance policy
changes, organisational structure, emerging technologies, covers any liability arising out of operations of Registrar and
dynamic market conditions, and business growth. Transfer Agent and Custodians associated with our Mutual
Fund business. Furthermore, we have specialised cyber-
We utilise various Risk Management Tools such as Risk
security insurance coverage as well.
Register, risk and control self-assessment (RSCA), incident
reporting whereby risk owners are involved in the ongoing
assessment and improvement of risk management and I. Intellectual Property
controls. There is also an ESG Task Committee to oversee Our Company uses, among others, the name, registered
company-wide ESG risks. Additionally, internal audit carries trademark and brand name of ‘HDFC’ and associated logos
out internal control reviews and provides an independent in the ordinary course of business including ‘HDFC Asset
report to the Audit Committee on the adequacy and Management Company’, ‘HDFC Mutual Fund’, and 'HDFC
effectiveness of risk management framework and internal AMC AIF-II'. The trademark ‘HDFC’ is the registered property
controls of the organisation. Our statutory auditor carries of HDFC Bank; and it has granted a non-exclusive license to
out a review of our internal controls over financial reporting use its trademark and brand name ‘HDFC’ to our Company,
to the extent of the scope laid out in their audit plans. All subject to applicable terms and conditions.
significant audit observations and follow-up actions thereon
are periodically reported to the Audit Committee and closely J. Digital Platforms
monitored for effective implementation.
We continue to enrich our comprehensive digital portfolio
Given the rapid technological and digital advancement in with targeted solutions, including assisted digital facilities
the securities market, cyber risks are inevitable. Hence, a to cater to their needs and preferences. Our digital offerings
strong Information Security and Cyber Security framework include a user-friendly portal, mobile app, WhatsApp based
is essential. Our Company's Information and Cyber Security engagements, chatbot, ‘Transact on Call’ service (a service
framework is one wherein the cyber risk and its mitigation to initiate transactions on call) and a host of non-login web-
are monitored by the Information Technology Security based services.
Committee and Risk Management Committee. Key areas
Our focus this year was to derive value from the investments
covered under the cyber risk management include strong
we made on the Customer Data Platform, personalisation
adherence to the Board-approved Information and Cyber
tools, an analytics engine, and AI (artificial intelligence)
Security Policies, compliance with SEBI guidelines and ISO
powered tools. The focused and improved targeting for
27001 standards to ensure that we are in line with industry
cross/up sell, retention, renewals etc. led to more than five
best practices. Our Company maintains a robust cyber-
times conversion as compared to last year. Automation of
security architecture and has in place a cyber resilience
multiple user journeys, on-the-go segmentation with cross
framework to protect the integrity of data and guard against
channel implementation resulted in better user-experience
breaches of privacy.
and conversion.
Overall, risk management is a collective responsibility,
We extended our core digital solutions – enabling more
from the Board to individual employees. Risks is primarily
financial & non-financial transactions, simplifying user
managed by the business function transacting the business.
journeys, creating point solutions and building a more
All employees are actively engaged in risk management within
integrated user-experience. On both the investor and the
their own areas of responsibility and are expected to manage
partner app, non-logged in sections were enriched with a host
those risks.
of features and information to address multiple requirements

58 POWERED BY PURPOSE
 STATUTORY REPORTS Management Discussion and Analysis

within the single channel preferred by the user. Our solutions is committed to embodying the values of a contemporary
incorporate the latest features like UPI Auto Pay, payment via society and creating a workplace that believes in a diversified
Debit card, etc. workforce and being an equal opportunity employer.

Listening to our partners’ needs has always been important We commit ourselves to continue to be a caring workplace
to us. We worked closely with our partners on multiple fronts, that is fully compliant with all ethical standards, regulatory
e.g. enabling services via our APIs, providing standard and requirements and statutory obligations. We continue to be
custom point solutions for their investors. We enabled single an employer that successfully attracts best-in-class talent to
click marketing campaigns on our Digital Marketing tool help us achieve our business objectives and continue to build
Connekt for our partners. This not only helps in list generation trust with our investors.
and execution but also provides almost real time conversion
tracking for our partners. L. Investor Education and Awareness Initiatives
We constantly upgrade our website, both in terms of design #ZindagiKeLiyeSIP
and content. A variety of new content, e.g. a reading room An investor education and awareness initiative that aims to
section, behavioral blogs, etc. have been added to add cultivate lasting financial literacy among the Indian masses.
value across different dimensions to the website visitor. In The campaign focuses on emotional engagement, shifting
addition to the front end, on back end, we are upgrading our away from the functional aspects of SIP and linking it with
SEO (Search Engine Optimisation) capabilities and Content our everyday quest for a better life. This comprehensive
Management System. The impact is already visible with a 360-degree media campaign includes ad films, extensive
substantial increase in website traffic, lower bounce rates, and outdoor advertising, TV commercials and digital and
lead generation, etc. social initiatives.
We significantly grew our AI capabilities and RegTech
capabilities with multiple projects, primarily in two domains. BarniSeAzadi Nukkad Natak
With RegTech – we automated the SID (Scheme Information On the occasion of 76th Independence Day, we conducted 76
Document) generation process. One other RegTech example Nukkad Nataks in regional languages under #BarniSeAzadi,
is on using a bot for checking transaction limits. With pure- across the length and breadth of India to financially empower
play AI, we deployed two important solutions: a smart Indian households and encourage healthy investing habits.
queries assistant for helping our investment team and other
stakeholders to mine information, and an AI bot for extracting ELSS Campaign
and tracking credit rating changes. An investor education and awareness campaign to highlight
the benefits of Equity Linked Savings Scheme (ELSS) for tax
K. Human Resource savings and wealth creation. The campaign emphasised two
Our Company has long been an employer of choice and it key aspects of ELSS funds: their growth potential through
has officially been certified as a “Great Place to Work” by equity investments and tax-saving.
Great Place to Work Institute. This is a testament to our
organisational strength and commitment to our purpose SIP Eazy
driven by the Vision and Mission. An insightful video series dedicated to investor education
and awareness. It simplifies and demystifies the complex
Our employees are our brand ambassadors, committed to
concepts related to SIPs, through engaging and easy-to-
deeply engaging with our investors, partners and all other
understand content.
stakeholders. At HDFC AMC, we have been continuously
investing in our employees to help them reinvent themselves so
that we can serve our investors with fiduciary responsibilities M. Marketing Initiatives
and maintain the highest ethical standards. Our employee 24 in Twenty Four
policies, recognition and reward policies and remuneration Furthering our mission to be the wealth creator for every
practices encourage our employees to demonstrate the right Indian, HDFC Mutual Fund proudly announced the launch of
set of behaviours and inspire them to live our Vision “To be the 24 new branches. To share this exciting news, we rolled out an
most respected asset manager in the world” and our Mission extensive print and digital campaign.
“To be the wealth creator for every Indian”. Our organisation

ANNUAL REPORT 2023-24 59

HDFC ASSET MANAGEMENT COMPANY LIMITED

Cancer Care - HDFC Charity Fund for Cancer Cure staff to understand their perspective, the Regional Service
We have a longstanding commitment to cancer care, and Manager also assists mutual fund distributor requirements
this year we launched HDFC Charity Fund for Cancer Care. and augments support at the branches. The Corporate Client
This fund allows investors to contribute to cancer care and Services team, on its part, considers the feedback from the
bolster our efforts to support individuals battling cancer. branches and trains the service team routinely to create last-
HDFC Mutual Fund matches the investment made by the mile impact.
investor and donates the doubled amount to the Indian We have a well-structured framework to manage service
Cancer Society. delivery and ensure that we work in tandem to enhance
customer experience. Crucial to this framework is the
Nurture Nature 3.0 Registrar and Transfer Agent (RTA), Computer Age
On World Environment Day, we relaunched our Management Services (CAMS), which forms the backbone of
#NurtureNature campaign, which began in 2021. This our service delivery. We work closely with CAMS to ensure the
socially responsible initiative aligns with our commitment smooth execution of processes and provide support to our
to sustainability and environmental stewardship. For each distribution partners. We also regularly review our business
investor who registered for a SIP digitally, we recycled 250 operations in detail so that we remain prepared to deal with
grams of plastic. The campaign received an enthusiastic the dynamic business environment.
response, resulting in the recycling of 4,200 kilograms
We service our customers through a network of 254 branches,
of plastic.
270 CAMS service centres, call centres, our website and
mobile app that provide digital solutions, and a centrally
Person of the Year 2023
managed dedicated email address. We also provide various
At the beginning of the calendar year, we released ‘The Person other avenues where our customers may choose to transact
of the Year 2023’ an article by Mr. Navneet Munot, which was such as our distributor mobile app, stock exchanges, channel
an interesting take at the year gone by. partners, MF Utility, MF Central, and websites/mobile apps of
mutual fund distributors and advisors. Our efforts to enable,
HDFC MF Yearbook 2024 support and encourage digital transactions have resulted
Our annual Yearbook 2024 titled ‘India in Amrit Kaal’ takes in a substantial increase in digital transactions, which now
a look at the year gone by and captures interesting future dominate our business transactions.
trends and developments.
We measure our service delivery and quality based on multiple
parameters such as turnaround time, repeat complaints /
N. Customer service grievances, escalations, which are evaluated periodically & root
As a customer-centric organisation, we continue to raise the cause analysis is done to provide and improve the seamless
bar in service to deliver excellence so that we remain a brand service we offer our customers and business partners.
of choice when it comes to matters of financial planning.
We prioritise open communication with our customers.
Today’s customers are increasingly conscious of their choices We actively seek customers for feedback and also
and are much better informed than before. It is thus imperative communicate with them to comply with changing regulatory
that we ensure that our front-line service team remains sharp, requirements. We conduct satisfaction survey separately
agile, smart and responsive to the needs of customers. To for both financial and non-financial transactions, to capture
this end, we invest heavily in educating and training our customer feedback on various processes, their experience
staff. Service teams at our branches across the country are on transactions, interactions with various touch points &
supported by an experienced team at the corporate office. feedback for improvement. Based on the feedback received,
Regional Service Managers, who supervise service delivery in a team works on the actionable /improvement areas and
the regional offices, visit branches regularly to ensure the staff their implementation. This activity is reviewed by the
are aligned to our business purpose. While engaging with the management periodically.

60 POWERED BY PURPOSE
 STATUTORY REPORTS Management Discussion and Analysis

We also connect with distributors to share information During FY 23-24, we conducted 1,336 distributor training/
on regulatory and process changes through the service awareness sessions (326 soft-skills and 1,010 technical
relationship managers. We gather their feedback on service programs) with over 175 speakers covering a wide range
delivery through satisfaction survey. Feedback, suggestions, of topics that attracted around 75,000 participants. We
improvement areas and processes are reviewed and have widened our reach to various investor and distributor
worked upon. segments. We have introduced a few unique programs.
These include:
Customer delight can only be delivered if we work in cohesion,
and our collective endeavour is to place the customer at the Soft-Skills workshops/Experiential Workshops – We use
heart of our business. these workshops to develop interpersonal, communication
and presentation skills. This fosters emotional intelligence
Our digital team has undertaken multiple initiatives to ensure
that help survivorship of investors and distributors in
our website and mobile apps provide best-in-class services to
volatile markets.
our stakeholders
• Customer Centricity & Trust: In this module, participants
One of the key measures of customer satisfaction is improving learn how to develop a customer-centric approach and
our processes based on issues faced by customers which have create a culture that prioritises customer satisfaction.
led to a progressive decline in complaints. This covers the importance of customer centricity,
Complaints as a % understanding customer needs, effective communication,
Year
of transactions and building long-term relationships with customers.
FY 19-20 0.009
• Fire walk: This workshop is ideal for those who want to
FY 20-21 0.006 break through barriers and take their performance to the
FY 21-22 0.006 next level.
FY 22-23 0.003
• You are a Hero: This workshop is designed to help people
FY 23-24 0.002
experience a source of high energy and encourage them to
break their limiting beliefs.
O. Training
• Jigsaw Discovery Tool: The Jigsaw Discovery Tool provides
Learning is a continuous process, and we believe that we need active engagement from beginning to end. Participants
to empower our stakeholders through knowledge sharing. actively enjoy vibrant, interactive sessions and come away
HDFC LEAP is our proprietary learning and development charged with energy and practical tools that they can put
enterprise that always prioritises the education and training into a new-found motivation to develop relationships.
for our investors and distributors. We undertook various
• Seal the Deal: This program helps in breaking out of our
training initiatives during the year to affirm this belief. Our
structured approach and try a new approach to close
prime focus is to promote investor education and awareness
more deals, cross sell and in turn make satisfied and
and helping our distributors in skill enhancement.
smiling customers. This program also aids in building and
We have taken a comprehensive approach by blending strengthening our relationships with our customers.
technical programs with experiential learning. We have also Technical Workshops: These workshops develop market
used a lot of game/activity-based simulations, as these knowledge and give overall market perspective to our
methods are known to improve engagement and retention investors and distributors.
amongst learners.

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HDFC ASSET MANAGEMENT COMPANY LIMITED

• Mission to Mars: This is for spreading financial literacy To manage various market-related risks, our Company has a
among school students aged between 9-16 years. We well-documented Investment manual covering Investment
successfully executed this module among school children, Philosophy, Investment and Research Process, Credit Limit
many of whom were the children of our distributors and Credit Monitoring Procedure. The Risk Management
and clients. closely monitors the portfolio for adequacy of portfolio
liquidity, stress and credit events and to generate early warning
• Fem-power: This is an investor education initiative that
signal. The Investment Committee reviews the performance
focuses on women investors and their specific financial
of the schemes and also monitors all scheme-related risks.
needs and goals.
Instance of breaches or early warning signals generated are
• Market Outlook: The focus of this program is on educating flagged to the Investment Committee and Risk Management
our investors and distributors on economy, market outlook Committee on a regular basis. However, regardless of how
& various asset classes. risks are managed, schemes and other investment products
carry their own risks.
Skill-enhancement workshops: Focused on providing
opportunity to our distributors to strengthen their skills and Our reputation is linked to the strength of the HDFC brand
domain knowledge. Some of these were: and reputation. While our brand is well-recognised, we may
be vulnerable to adverse market and customer perception,
• NISM workshops: 509 workshops have been conducted in
particularly in an industry where integrity, trust and
the financial year covering over 7,000 participants.
customer confidence are paramount. Again, the regulatory
• HDFC AMC Certification: PGP Academy & Moody’s environment in which we operate is also prone to changes,
50+ hours course – Covering over 3,700 participants and any violation/ breach in the regulation can adversely
(employees and distributors) impact the reputation of our Company. This could have a
P. Social Initiatives negative effect on revenue and margins. In order to mitigate
the compliance and reputation risks, we have a well-defined
Read more on page 31 of this report.
process of identifying the actionable/ impact of the change
in the regulation, implementing necessary controls and the
Q. Risks and Threats status around the same is also reported to the Board. In case
The schemes and other investment products are subject to of any material ambiguity in the interpretation of the law, the
various market related risk such as Investment Risk, Credit same is also discussed with regulator or obtains an opinion
Risk, Liquidity Risk, ESG Risk, and Compliance Risk. In case from external lawyers to confirm the understanding. Internal
the schemes and other investment products underperform, auditors have been appointed to review activities and report
the existing customers may redeem or withdraw their their findings to the Board. They also periodically audit/review
investments and shift to some other products. The growth statutory compliance reports as per the mandate. However,
of the business is contingent not only on our performance but we ensure that we comply with all applicable laws, any failure
also on the overall economy, the growth rate of the country, in detecting errors in our statutory records or errors or
household savings rates and consumer attitude towards omissions in our business operations could expose us to
financial savings. Any adverse market rate fluctuations and/ potential losses.
or adverse economic conditions could affect the business in
many ways, including by reducing the value of our AUM, and
subsequently leading to a decline in revenue.

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 STATUTORY REPORTS Management Discussion and Analysis

One of the key risks to business is disruptions in the Security & Data protection
technology infrastructure due to technology advancements We uphold the highest standards of confidentiality, integrity
or cyberattacks. As majority of the transactions today are of the personal data entrusted to us. To fortify our defences
processed digitally, any interruption is likely to adversely against cyber threats and preserve data integrity, our
impact business. We continue to channel substantial Company employs a "Defence in Depth" strategy. Our
investments into bolstering our technological infrastructure measures include robust encryption protocols, stringent
to enable it to handle interruptions. Our Company maintains access controls, best-in-class firewalls, and 24x7 “State-of-
a robust cyber security architecture and has in place a cyber art” security surveillance.
resilience framework to protect the integrity of data and
guard against privacy breaches. Information and Cyber Security Awareness
The company has intensified its initiatives to promote security
R. Information and Cyber Security awareness among employees, urging vigilance against cyber-
Cyber Security Governance attacks and cultivating a robust cyber security culture within
In an era of rapid technological progress and digital evolution, the organisation. Additionally, we educate customers and
the company acknowledges the prevalence of increasing cyber other stakeholders on the risks of cyber breaches and attacks.
and information security risks. The Company has a strong Furthermore, we prioritise the continuous training of our
Cyber Risk Management framework wherein cyber risk and cyber security and Incident Response teams through regular
its mitigation are monitored by the Information Technology & cyber table-top drills.
Security Committee and Risk Management Committee of the
Company. Furthermore, the Company has a cyber-resilience Security by Design
framework in place to safeguard the integrity of data and The Company integrates cyber security controls and
guard against cyber breaches. Core to this strategy are Board- practices seamlessly into its business processes, adhering
approved policies including Information Security, Cyber to the principle of 'Security by Design'. Our commitment to
Security, Cyber Crisis Management, and Business Continuity enhanced cyber security practices, coupled with effective
policies. Key areas covered under the cyber risk management governance, has led to the development of mature cyber
include strong adherence to the Board approved Information security frameworks. Our Technology and Digital systems
and Cyber Security policies, compliance with SEBI guidelines undergo frequent reviews and audits conducted by
and ISO 27001 standards to ensure that the Company is in line independent agencies. Our systems are subjected to rigorous
with industry best practices. scrutiny and validation in system audits. Proactive measures
are consistently implemented to fortify these systems
against external threats.

ANNUAL REPORT 2023-24 63

HDFC ASSET MANAGEMENT COMPANY LIMITED

Directors' Report

To the Members

Your Directors take great pleasure in presenting the Twenty-Fifth Annual Report together with the Audited Financial
Statements of your Company for the financial year ended March 31, 2024.

Financial Performance
The financial performance of your Company for the financial year ended March 31, 2024 is summarized as below:
(` in crores)
For the year ended For the year ended
Financial Results
March 31, 2024 March 31, 2023
Profit before Tax 2,478.19 1,870.61
Less: Provision for Tax (Net of Deferred Tax) 532.31 446.69
Profit after Tax 1,945.88 1,423.92
Add / (Less): Other Comprehensive Income (Net of Tax) (1.59) 0.42
Total Comprehensive Income (A) 1,944.29 1,424.34
Balance of Retained earnings carried forward from previous year 5,060.30 4,531.82
Less: Equity Dividend Paid for earlier year 1,024.65 895.86
Total (B) 4,035.65 3,635.96
Balance of Retained Earnings Carried to Balance Sheet (A+B) 5,979.94 5,060.30

For the year ended March 31, 2024, your Company posted a Policy which has been approved by the Board of Directors
net profit of ` 1,945.88 Crore as against ` 1,423.92 Crore in the of the Company. The Dividend Distribution Policy of the
previous year. Appropriations from the net profit have been Company is placed on the Company’s website at https://www.
effected as per the summary given above. hdfcfund.com/about-us/corporate-governance/code-policy
in terms of Regulation 43A of Securities and Exchange Board
For a detailed analysis of the financial performance of your
of India (Listing Obligations and Disclosure Requirements)
Company for the year under review, refer to report on
Regulations, 2015 (“SEBI Listing Regulations”).
Management Discussion and Analysis.

Management Discussion and Analysis Report,

Dividend
Report of the Directors on Corporate Governance
The 25th Annual General Meeting (AGM) of the Company is and Business Responsibility and Sustainability
scheduled to be held on July 25, 2024 and the Company for Report
the last two financial years has been paying dividend to its
Management Discussion and Analysis Report and the Report
shareholders in the month of June, considering the same, your
of the Directors on Corporate Governance form part of
Directors at their meeting held on June 7, 2024 have declared
this report.
an interim dividend for the financial year ended March 31, 2024
of ` 70/- per equity share (1400%) of face value of ` 5/- each of In compliance with Regulation 34(2)(f) of the SEBI Listing
the Company instead of final dividend of ` 70/- per equity share Regulations, the Business Responsibility and Sustainability
for the financial year ended March 31, 2024 as recommended Report (‘BRSR’) along with the report on assurance of the
earlier at the meeting held on April 19, 2024. BRSR Core, consisting of a set of Key Performance Indicators
(KPIs) / metrics under nine Environmental, Social & Governance
The dividend pay-out ratio for the said dividend for the year
attributes for the financial year ended March 31, 2024 provided
ended March 31, 2024 is 76.80%.
by M/s. B S R & Co. LLP, Chartered Accountants, the Statutory
The interim dividend declared is in accordance with the Auditors of your Company, forms a part of this Annual Report.
parameters and criteria as set out in the Dividend Distribution

64 POWERED BY PURPOSE
 STATUTORY REPORTS DIRECTORS’ REPORT

Transfer to Reserves branches as on March 31, 2024. Official Points of Acceptance

for transactions of HDFC MF also include ISCs of Computer Age
There is no amount proposed to be transferred to the
Management Services Ltd. (CAMS), the Registrar and Transfer
reserves. For complete details on movement in Reserves and
Agent of HDFC MF. These offices further strengthen the
Surplus during the financial year ended March 31, 2024, please
servicing network of your Company. Your Company services
refer to the Statement of Changes in Equity included in the
unitholders and over 85,000 distribution partners.
financial statements.
Your Company is one of the most preferred choices of
Capital Structure individual investors, with a market share of 13.3% of the
During the year, your Company issued and allotted 59,284 individual monthly average AUM for March 2024. Of the 4.46
equity shares of ` 5/- each of the Company to eligible employees Crore unique investors in mutual funds in India (as identified
on exercise of stock options granted under Employee Stock by PAN/PEKRN), we enjoy trust of 96 Lakh investors, a market
Option Scheme of the Company. penetration of 22%. Your Company’s offering of systematic
transactions further enhances its appeal to individual investors
Consequently, the issued, subscribed and paid-up equity looking to invest periodically in a disciplined and risk-mitigating
share capital increased from ` 1,06,71,23,580/- represented manner. Your Company processed ` 28,264 Crore through
by 21,34,24,716 equity shares of ` 5/- each as on April 1, 2023 to systematic transactions from April 2023 to March 2024.
` 1,06,74,20,000/- represented by 21,34,84,000 equity shares These monthly flows provide a strong and stable “order book”,
of ` 5/- each as on March 31, 2024. provide predictable flows, with 87% of systematic investment
During the year under review, the Company has not issued any: plans (SIPs) subscribed for a tenure of more than 5 years. Your
Company also provides portfolio management and segregated
a) shares with differential rights as to dividend, voting account services, including discretionary, non-discretionary
or otherwise. and advisory services, to high net worth individuals (HNIs),
b) sweat equity shares. family offices, domestic corporates, trusts, provident funds
and domestic & global institutions. As on March 31, 2024, the
Review of Operations aggregate assets under these services were at ` 2,425 Crore.
In our HDFC AMC Select AIF FOF-I, commitments for the
Assets under Management (AUM) of HDFC Mutual Fund (“HDFC
period ended March 31,2024 were around ` 800 Crore.
MF”) at the close of FY 2023-24 was ` 6.07 Lakh Crore as against
an AUM of ` 4.37 Lakh Crore at the close of FY 2022-23, an
Schemes Launched
increase of 39%. Total Annual Average AUM for FY 2023-24 was
` 5.44 Lakh Crore versus ` 4.36 Lakh Crore for FY 2022-23. HDFC Following new schemes were launched during the financial
MF is one of India’s largest mutual funds in terms of total AUM year –
with a market share of 11.4% based on closing AUM. It is also one 1. HDFC S&P BSE 500 Index Fund
of the largest mutual funds in terms of actively managed equity- 2. HDFC NIFTY Midcap 150 Index Fund
oriented funds, with a market share of 12.8% based on closing
3. HDFC NIFTY Smallcap 250 Index Fund
AUM. The actively managed equity-oriented AUM at the close of
FY 2023-24 was ` 3.75 Lakh Crore as against ` 2.32 Lakh Crore 4. HDFC Defence Fund
at the close of FY 2022-23, an increase of 62%. The actively 5. HDFC Non-Cyclical Consumer Fund
managed equity-oriented annual average AUM constituted 56% 6. HDFC NIFTY 1D RATE LIQUID ETF
of the total annual average AUM and increased by 40% to ` 3.04
7. HDFC Charity Fund for Cancer Cure
Lakh Crore.
8. HDFC Transportation and Logistics Fund
Your Company managed a total of 166 Lakh live accounts
9. HDFC Technology Fund
as on March 31, 2024, predominantly those of individual
(retail) unitholders. The Individual monthly average AUM as 10. HDFC Pharma and Healthcare Fund
a percent of total monthly average AUM for March 2024 was 11. HDFC NIFTY PSU BANK ETF
70.8% as against 67.2% for March 2023. Your Company has 12. HDFC NIFTY200 Momentum 30 Index Fund
established a strong and wide network of Investor Service
Centres (ISCs) rendering services to its unit holders located at 13. HDFC Nifty Realty Index Fund
various locations across the country. Your Company has 254

ANNUAL REPORT 2023-24 65

HDFC ASSET MANAGEMENT COMPANY LIMITED

Mergers of the following schemes were also announced: Except for the above subsidiary, your Company does not have
any other subsidiary or an associate company or a joint venture
HDFC FMP 3360D March 2014 (1) merged into HDFC Banking
company during the year under review.
and PSU Debt Fund vide notice and addendum dated April
28, 2023.
Information on Promoter Companies
Review of Subsidiary Company Change in the Holding Company and Promoter from
Housing Development Finance Corporation Limited to
Your Company has a Wholly Owned Subsidiary Company viz.
HDFC Bank Limited
HDFC AMC International (IFSC) Limited (‘HDFC IFSC’) which
was incorporated on May 27, 2022. Pursuant to the composite scheme of amalgamation of: (i) HDFC
Investments Limited and HDFC Holdings Limited, wholly-owned
During the year under review, HDFC IFSC has received a subsidiaries of Housing Development Finance Corporation
Certificate of Registration from International Financial Services Limited (“HDFC Limited”) with and into HDFC Limited; and (ii)
Centres Authority (‘IFSCA’) for Registered Fund Management HDFC Limited with and into HDFC Bank Limited (“HDFC Bank”),
Entity – Retail category, pursuant to which it can carry out fund HDFC Bank has become the Holding Company and Promoter of
management, investment advisory and Portfolio Management the Company with effect from July 01, 2023.
Services (PMS) activities from Gujarat International Finance
Tec-City (GIFT City). Reclassification of Abrdn Investment Management
Further, during the year under review HDFC IFSC has received Limited From ‘’Promoter’’ Category to ‘’Public’’ Category
an approval from IFSCA for launch of 6 funds viz. HDFC India Pursuant to the receipt of approval from the the Securities and
Small Cap Fund, HDFC India Equity Savings Fund, HDFC India Exchange Board of India (SEBI), abrdn Investment Management
Flexi Cap Fund, HDFC India Balanced Advantage Fund, HDFC Limited (“abrdn”), one of the promoters of the Company, on
India Mid-Cap Opportunities Fund and HDFC India Nifty 50 June 20, 2023, sold its entire stake in the Company i.e. 10.20%
Fund (the ‘Funds’) as Category III open ended Alternative of the paid up capital of the Company and requested the
Investment Funds (AIFs) under the IFSCA (Fund Management) Company to reclassify them from the “Promoter” category
Regulations, 2022. These Funds will be feeders into certain to “Public” category in accordance with Regulation 31A of the
domestic mutual fund schemes and/ or Exchange Traded SEBI Listing Regulations.
Funds (ETFs), managed by the Company in India.
Accordingly, the Company after carrying out the requisite
HDFC IFSC is in process of completing the operational compliance under Regulation 31A of SEBI Listing Regulations
requirements for the launch of said 6 Funds, which it proposes made an application to National Stock Exchange of India Limited
to offer to the investors in international markets and HDFC and BSE Limited (‘Stock Exchanges’), for such reclassification.
IFSC is reaching out to prospective investors for the same. Basis the application, Stock Exchanges had on September
18, 2023 approved reclassification of abrdn from ‘Promoter’
Further, the Board at its meeting held on April 19, 2024, inter
Category to ‘Public’ Category.
alia, approved the audited financial statements including the
consolidated financial statements of the Company for the Consequent to the above, HDFC Bank has become the sole
financial year ended March 31, 2024 subject to approval of Promoter of the Company.
members of the Company.
Directors and Key Managerial Personnel
In accordance with the provisions of Section 136 of the
Companies Act, 2013 (“the Act”), the annual report of the Non-Executive Directors
Company, the audited financial statements and the related In accordance with the provisions of Section 152 of the Act,
information of the HDFC IFSC are placed on the website of 2013 read with the Companies (Appointment and Qualification
the Company. Shareholders may download the documents of Directors) Rules, 2014 and the Articles of Association of the
referred above from the Company’s website or may write to Company, Ms. Renu S. Karnad (DIN: 00008064), Non-Executive
the Company for the same. Further, the said documents shall Director, is liable to retire by rotation at the upcoming Annual
also be available for inspection by the shareholders at the General Meeting (AGM) of the Company scheduled to be held
registered office of the Company. on July 25, 2024 and being eligible has offered herself for
re-appointment. Necessary proposals for her re-appointment
Pursuant to Section 129(3) of the Act, a statement containing
has been placed for your approval at the upcoming AGM. The
salient features of the financial statements of HDFC IFSC in the
brief resume and other related information have been detailed
prescribed Form AOC-1 forms part of the financial statements.
in the Notice convening the AGM of your Company. Your

66 POWERED BY PURPOSE
 STATUTORY REPORTS DIRECTORS’ REPORT

Directors recommend her re-appointment as Non-Executive Mr. Jairaj Purandare (DIN: 00159886), Mr. Sanjay Bhandarkar
Director of your Company. (DIN: 01260274), Mr. Parag Shah (DIN: 00374944) and Ms. Roshni
Nadar Malhotra (DIN: 02346621), Independent Directors, were
During the year, Mr. Rushad Abadan (DIN: 08035538), Non-
re-appointed at the AGM held on June 26, 2023, for a second
Executive Director of the Company, director nominated
term of 5 consecutive years, on the Board of your Company.
by abrdn Investment Management Limited (“abrdn”), has
resigned as Director of the Company with effect from close of Mr. Dhruv Kaji, Mr. Jairaj Purandare, Mr. Sanjay Bhandarkar,
business hours of April 18, 2023, pursuant to withdrawal of his Mr. Parag Shah, and Ms. Roshni Nadar Malhotra, Independent
nomination by abrdn. Directors, have submitted declarations stating that they meet
the criteria of independence as per the provisions of the Act
Further, during the year, Mr. Keki Mistry (DIN: 00008886), had
and SEBI Listing Regulations.
expressed his desire not to get re-appointed and accordingly,
he ceased to be a Non-Executive Director of the Company at All the Independent Directors have also confirmed that in terms
the conclusion of the AGM held on June 26, 2023. of Rule 6(3) of the Companies (Appointment and Qualification
of Directors) Rules, 2014, they have registered themselves
The Board of Directors of the Company at its meeting held
with the Independent Director’s database as prescribed
on January 11, 2024, based on the recommendation of the
under the Act. Further, in terms of Rule 6(4) of the Companies
Nomination & Remuneration Committee, approved the
(Appointment and Qualification of Directors) Rules, 2014, one
appointment of Mr. V. Srinivasa Rangan (DIN: 00030248) as an
Independent Director has passed the Online Proficiency Self-
Additional (Non-Executive) Director (Nominee of HDFC Bank
Assessment test conducted by Indian Institute of Corporate
Limited) effective from January 12, 2024.
Affairs (IICA) and the other four Independent Directors were
Further, as required under Regulation 17(1C) of the SEBI Listing not required to appear for the said test as required by IICA
Regulations, the Company had on March 1, 2024, obtained as they fulfil the criteria stipulated under Rule 6(4) of the
approval of the shareholders of the Company through Postal Companies (Appointment and Qualification of Directors)
Ballot for appointment of Mr. V. Srinivasa Rangan as a Non- Rules, 2014.
Executive Director (Nominee of HDFC Bank Limited, Promoter
In the opinion of the Board, the Independent Directors fulfil
of the Company), liable to retire by rotation.
the conditions specified under the Act, the Rules made
thereunder and SEBI Listing Regulations and are independent
Managing Director and Chief Executive Officer
of the management.
Pursuant to the provisions of Section 196, 197, 198, 203 of the
Act read with Schedule V and other applicable provisions, if any, All the directors of the Company have confirmed that they are
of the Act and the Companies (Appointment and Remuneration not disqualified for being appointed as directors pursuant to
of Managerial Personnel) Rules, 2014 and SEBI Listing Section 164 of the Act.
Regulations, the Board of Directors of the Company at its
meeting held on June 7, 2024, based on the recommendation of Key Managerial Personnel
the Nomination & Remuneration Committee has re-appointed In accordance with the provisions of Sections 2(51) and
Mr. Navneet Munot (DIN: 05247228) as the Managing Director 203 of the Act read with the Companies (Appointment and
& Chief Executive Officer of the Company, not liable to retire Remuneration of Managerial Personnel) Rules, 2014, as
by rotation, for a period of five years effective from July 1, 2024 amended, Mr. Navneet Munot, MD & CEO, Mr. Naozad Sirwalla,
up to June 30, 2029, subject to approval of the shareholders. Chief Financial Officer and Ms. Sylvia Furtado, Company
Secretary are the Key Managerial Personnel of the Company
Necessary proposal for his re-appointment including payment of
as on March 31, 2024.
remuneration has been placed for your approval at the upcoming
Annual General Meeting (AGM) of the Company scheduled to On June 6, 2024, Ms. Sylvia Furtado resigned as Company
be held on July 25, 2024. Your Directors recommend his re- Secretary & Head-Legal (Key Managerial Personnel) and
appointment as MD & CEO of your Company. Compliance Officer of the Company under SEBI Listing
Regulations with effect from close of business hours of July
Independent Directors 15, 2024. The Board placed on record its appreciation for the
Pursuant to the provisions of Sections 149 and 152 of the Act contribution made by Ms. Furtado during her association with
read with the Companies (Appointment and Qualification the Company.
of Directors) Rules, 2014, along with Schedule IV to the Act
and SEBI Listing Regulations, Mr. Dhruv Kaji (DIN: 00192559),

ANNUAL REPORT 2023-24 67

HDFC ASSET MANAGEMENT COMPANY LIMITED

Further, the Board of Directors of the Company at its meeting the SEBI (Share Based Employee Benefits and Sweat Equity)
held on June 7, 2024, based on the recommendation of the Regulations, 2021 (‘ESOP Regulations’).
Nomination & Remuneration Committee, has appointed
Disclosures as required under the ESOP Regulations have been
Ms. Sonali Chandak as Company Secretary & Head-Legal (Key
placed on the website of the Company at www.hdfcfund.com.
Managerial Personnel) and Compliance Officer of the Company
under SEBI Listing Regulations with effect from July 16, 2024. Further, the certificate required under Regulation 13 of
the ESOP Regulations from the Secretarial Auditor of the
Number of Meetings of the Board Company that Employees Stock Option Scheme 2017 – Series
During the FY 2023-24, 9 (nine) meetings of the Board of I and ESOS 2020 have been implemented in accordance with
Directors of your Company were held and the details of Board the ESOP Regulations will be available at the upcoming AGM
and Committee meetings held are provided in the Report of for inspection.
the Directors on Corporate Governance, which forms part of The Board of Directors, on the recommendation of the
this report. Nomination & Remuneration Committee and pursuant to the
provisions of the Act and ESOP Regulations has at its meeting
Annual Evaluation held on June 7, 2024, approved to extend benefit and coverage
Details on the formal annual evaluation conducted of the of ESOS - 2020 of the Company to the eligible employees of
performance of the Board, its committees and of individual HDFC AMC International (IFSC) Limited, a Wholly Owned
directors are provided in the Report of the Directors on Subsidiary of the Company.
Corporate Governance, which forms part of this report.
Necessary proposal for the above has been placed for your
approval at the upcoming AGM of the Company scheduled to
Nomination & Remuneration Policy
be held on July 25, 2024.
In terms of the requirements under the Act and SEBI Listing
Regulations, your Company has in place a Nomination & Auditors and Auditor’s Report
Remuneration Policy, inter-alia, detailing the director’s
Statutory Auditors
appointment, remuneration, criteria for determining
qualifications, attributes, independence of a director and In terms of Section 139 of the Act read with the Companies
other matters. The remuneration paid to the Directors, Key (Audit and Auditors) Rules, 2014, M/s. BSR & Co. LLP, Chartered
Managerial Personnel and Senior Management is as per the Accountants (ICAI FRN: 101248W/W-100022) were re-appointed
Nomination & Remuneration Policy of your Company. The said as the Statutory Auditors of your Company for a period of 5
Nomination & Remuneration Policy is placed on the Company’s continuous years i.e. from the conclusion of 23rd AGM till the
website at https://www.hdfcfund.com/about-us/ corporate- conclusion of 28th AGM of the Company.
governance/code-policy. The Auditor’s Report on the financial statements of the
Company for the financial year ended March 31, 2024 forms
Issue of Employee Stock Options part of the Annual Report.
In line with the practice of incentivizing the employees through
issue of stock options, your Company, pursuant to approval Secretarial Auditor
granted by the Shareholders of the Company at the AGM held Pursuant to the provisions of Section 204 of the Act read with
on July 23, 2020, has formulated Employees Stock Option the Companies (Appointment and Remuneration of Managerial
Scheme – 2020 (ESOS – 2020). During the year, the Nomination Personnel) Rules, 2014, your Company has appointed
& Remuneration Committee (NRC) of Board of Directors at M/s. Bhandari & Associates, Company Secretaries to conduct
its meetings held on April 25, 2023 and January 10, 2024 has the Secretarial Audit of your Company for the FY 2023-24. The
granted 10,50,000 and 38,800 stock options representing Secretarial Audit Report is annexed herewith as Annexure I to
10,88,800 equity shares of ` 5/- each to the eligible employees this report.
of your Company as determined by the NRC, under ESOS –
2020 at grant price of ` 1,780.90/- and ` 3,415.25/- per option, There were no qualifications, reservations or adverse
respectively. No employee was issued stock option, during comments or disclaimer made by the aforesaid Auditors in
the year equal to or exceeding 1% of the issued capital of the their audit reports.
Company at the time of grant. The said Auditors of the Company have not reported any fraud
There has been no material variation in the terms of the options as specified under Section 143(12) of the Act.
granted under ESOS – 2020 and Company in compliance with

68 POWERED BY PURPOSE
 STATUTORY REPORTS DIRECTORS’ REPORT

Internal Auditors The internal control systems comprise of standardised policies

M/s M P Chitale & Co, were appointed as an Internal Auditors of and procedures covering all functional areas aimed at ensuring
your Company for the financial year 2023-24. sound management of operations, reliable financial reporting,
safeguarding of assets and prevention and detection of frauds
Enterprise Risk Management Policy and errors. The Audit Committee of the Board of Directors,
at regular intervals and in co-ordination with Internal and
The Policy on Enterprise Risk Management of your Company
Statutory Auditors, review the adequacy of Internal Controls
was reviewed by the Risk Management Committee and
within your Company.
approved by the Board. This policy provides for the Risk
Management Framework (RMF) to identify, assess, monitor and Further, the internal financial controls related to financial
mitigate various business risks. This framework incorporates statements are found to be adequate and operating effectively
the checks, process and procedures to identify potential risks and that no material weakness has been noticed during the year
in the investment and operational areas of the business and under review.
minimize their impact through necessary control on your
Company. The framework is designed to identify risks, assess Corporate Social Responsibility
their likelihood and impact, ensure the review of mitigation In terms of Section 135 of the Act, your Company has formed
measures and requires reporting on a regular basis. The Risk an Environmental, Social & Governance and Corporate Social
Management Committee and Audit Committee of the Board of Responsibility (ESG & CSR) Committee to inter-alia approve
Directors at their meetings periodically reviews the functioning activities to be undertaken, expenditure to be incurred and
of the RMF. to monitor the performance of the CSR activities undertaken
The Company has a strong Cyber Risk Management framework by the Company. The said committee also oversee the
wherein cyber risk and mitigation controls are monitored by development and implementation of the Company’s
Information Technology and Security Committee and Risk ESG framework.
Management Committee of the Company. Key areas covered During the year, in view of Mr. Sanjay Bhandarkar’s experience in
under the Cyber Risk Management are strong adherence to ESG domain, he was appointed as a member of the Committee
the Board approved Information and Cyber Security Policies, and consequent to which the Committee consists Mr. Deepak
SEBI guidelines and ISO 27001:2013. The Company maintains S. Parekh (Chairman), Mr. Parag Shah, Mr. Sanjay Bhandarkar
robust cyber security posture to protect the confidentiality and Mr. Navneet Munot. The Company Secretary acts as the
and integrity of data. Secretary to the Committee.
SEBI vide its Master Circular for Mutual Funds dated May 19, The Company undertakes its CSR activities through a variety
2023, Chapter 4 on Risk Management Framework (RMF) for of effective programs. The major thrust of the CSR activities of
Mutual Funds, HDFC Mutual Fund has adopted a Policy of the Company is in the areas of promoting education and health
Enterprise Risk Management with effect from April 1, 2022. care. The Company also undertakes CSR activities in the areas
As part of the framework, Risk Management function has of promoting sports and environment sustainability. These
incorporated policies, procedures, roles & responsibilities of activities are in accordance with the Schedule VII to the Act.
the management, the Board of the Company and the Board of
HDFC Trustee Company Limited. The Board of your Company The Board of Directors and the ESG & CSR Committee review
has approved the Risk Management framework, revised few and monitor from time to time all the CSR activities being
policies in line with the said SEBI circular and has implemented undertaken by the Company.
risk measures outlined in the said circular. The terms of The annual report on CSR activities along with the executive
reference of the Risk Management Committee has been summary for Impact Assessment Reports of the applicable
enhanced in line with requirements of the said SEBI circular projects, in accordance with the Companies (Corporate Social
as its main function is to oversee the risks associated with the Responsibility Policy) Rules, 2014 as amended, is set out at
business of mutual fund at the enterprise level, regulatory, Annexure II to this report.
compliance, operation and other functions of Company.
During the year, the Company has fully spent the required
Adequacy of Internal Controls amount towards CSR activities.

Your Company has internal control systems which The composition of the ESG & CSR Committee, CSR Policy,
commensurate with the size and complexity of its operations. CSR activities undertaken by the Company and the complete
Impact Assessment Reports of the applicable projects are

ANNUAL REPORT 2023-24 69

HDFC ASSET MANAGEMENT COMPANY LIMITED

available on the Company’s website at https://www.hdfcfund. Annual Return

com/ about-us/corporate-profile/csr.
Pursuant to Section 92(3) read with Section 134(3)(a) of the Act,
the Annual Return as on the financial year ended March 31, 2024
Particulars of contracts or arrangements with
is placed on the Company’s website at https://www.hdfcfund.
Related Parties
com/about-us/financial-information/annual-reports
During the year, your Company has entered into transactions
with related parties as defined under Section 2(76) of the Act Vigil Mechanism / Whistle Blower Policy
read with Companies (Specification of Definitions Details)
Whistle Blower Policy is in place and details of the same
Rules, 2014, SEBI Listing Regulations and applicable Accounting
are provided in the Report of the Directors on Corporate
Standards, which were in the ordinary course of business and
Governance, which forms part of this report.
on arms’ length basis and in accordance with the policy on
Related Party Transactions of the Company.
Particulars Regarding Conservation of Energy,
The Policy ensures proper approval and reporting of Technology Absorption and Foreign Exchange
the concerned transactions between the Company and Earnings and Outgo
related parties. The information pertaining to the conservation of energy and
The policy on Related Party Transactions is placed on the technology absorption in terms of Section 134(3)(m) of the
Company’s website at https://www.hdfcfund.com/about-us/ Act, read with the Companies (Accounts) Rules, 2014 is stated
corporate-governance/code-policy. as below:

During the year, there was no material transaction with any (a) Conservation of energy and technology absorption
related parties as per the Related Party Transactions Policy
Your Company is in financial services industry and does not
of the Company or any other related party transaction
consume high levels of energy. However, regular efforts
entered into by the Company that requires disclosure in Form
are made to adopt appropriate energy conservation
AOC-2, hence, disclosure in Form AOC-2 is not applicable to
measures and technology absorption methods.
the Company.

The disclosures pertaining to related party transactions as per (b) Foreign Exchange, earnings and expenditure during
the applicable Accounting Standards form part of the notes to the year –
the financial statements provided in this Annual Report. • Foreign exchange (earnings): ` 0.01 crore (previous year:
` 3.31 crore)
Particulars of Loans, Guarantees or Investments
• Foreign exchange (expenditure): ` 11.68 crore (previous
Details of loans, guarantees and investments, if any, covered
year: ` 10.06 crore)
under the provisions of Section 186 of the Act are provided in
the notes to financial statements. Particulars of Employees
As on March 31, 2024, your Company has 1,509 employees and
Deposits for the previous year, your Company had 1281 employees.
During the year, your Company has not accepted any deposits
In accordance with the provisions of Rule 5(2) of the Companies
within the meaning of Sections 73 and 74 of the Act read
(Appointment and Remuneration of Managerial Personnel)
together with the Companies (Acceptance of Deposits)
Rules, 2014, the names and particulars of the top ten employees
Rules, 2014.
in terms of remuneration drawn are set out in the annexure to
this report. In terms of the provisions of Section 136(1) of the
Unclaimed Dividend on Shares
Act, the Directors’ Report is being sent to all shareholders
As at March 31, 2024, unclaimed dividend amounting to of the Company excluding the annexure. Any shareholder
` 77,99,149/- which has not been claimed by shareholders of interested in obtaining a copy of the annexure may write to
the Company and is lying in the respective Unpaid Dividend the Company.
Accounts of the Company.
Further, disclosures on managerial remuneration as required
Your Company has disclosed the statement containing the names, under Section 197 of the Act read with Rule 5(1) of the
last known addresses of those shareholders whose dividend is
unpaid on the Company's website at www.hdfcfund.com.

70 POWERED BY PURPOSE
 STATUTORY REPORTS DIRECTORS’ REPORT

Companies (Appointment and Remuneration of Managerial (iv) The annual accounts of the Company have been prepared
Personnel) Rules, 2014 are appended as Annexure III. on a going concern basis;

(v) Internal financial controls have been laid down to be

Other Disclosures
followed by the Company and such internal financial
• There was no change in the nature of the business of controls are adequate and operating effectively; and
the Company.
(vi) Proper systems have been devised to ensure compliance
• There was no revision in the financial statements of with the provisions of all applicable laws and that such
the Company. systems were adequate and operating effectively.
• During the year, there was no receipt of any remuneration
or commission by the MD & CEO of the Company from its Secretarial Standards
Holding Company and Subsidiary Company. Your Company is in compliance with the provisions of the
applicable Secretarial Standards issued by the Institute of
• Disclosure pertaining to maintenance of cost records as
Company Secretaries of India in terms of the Act.
specified by the Central Government under sub-section (1)
of Section 148 of the Act, is not applicable to your Company.
Prevention of Sexual Harassment Policy and its
• There was no application made or any proceeding pending Reporting
under the Insolvency and Bankruptcy Code, 2016 during Your Company has framed and implemented a Policy on Sexual
the year. Harassment of Women at Workplace aiming at prevention of
• There was no one-time settlement entered into with any harassment of employees which lays down the guidelines
Bank or financial institutions in respect of any loan taken by for identification, reporting and prevention of undesired
the Company. behaviour. 6 (six) Internal Committees (IC) for different zones
were constituted in accordance with the Sexual Harassment of
• Details of the Audit Committee of the Board of Directors Women at Workplace (Prevention, Prohibition and Redressal)
including its composition are provided in the Report of the Act, 2013 with women employees being a majority and an
Directors on Corporate Governance, which forms part of external member. The Policy, IC Members’ details and the penal
this report. consequences of violating the said Act/Policy are displayed
at all offices/ISCs and on the intranet of the Company.
Directors’ Responsibility Statement Regular employee awareness sessions are conducted to
In accordance with the provisions of Section 134(5) of the Act generate awareness about the policy, reporting mechanism
and based on the information provided by the management, and prevention of sexual harassment at the workplace.
your Directors state that: During the year, the IC received no complaint pertaining to
sexual harassment.
(i) In the preparation of the annual accounts, the applicable
accounting standards had been followed along with
Significant/Material orders passed by the
proper explanation relating to material departures;
Regulators
(ii) Accounting policies selected were applied consistently. There are no significant and material orders by any regulator,
Reasonable and prudent judgements and estimates court, tribunal impacting the going concern status of the
were made so as to give a true and fair view of the state Company and its operations in future.
of affairs of the Company at the end of March 31, 2024 and
of the profit of the Company for year ended on that date; Material changes and commitments, if any,
(iii) Proper and sufficient care has been taken for maintenance affecting the financial position of the Company
of adequate accounting records in accordance with the from the financial year end till the date of this
provisions of the Act for safeguarding the assets of the report
Company and for preventing and detecting frauds and There have been no material changes and commitments
other irregularities; affecting the financial position of the Company which have
occurred between the end of the financial year 2023-24 and
the date of this Report.

ANNUAL REPORT 2023-24 71

HDFC ASSET MANAGEMENT COMPANY LIMITED

Acknowledgements The Directors also acknowledge the faith reposed in HDFC

Mutual Fund by its investors and look forward to their
The Directors take this opportunity to thank its investors,
continued support.
shareholders, trustee company, bankers, distributors, key
partners, Investor Service Centres and other service providers On behalf of the Board of Directors
for their continued support. The Directors would like to
convey their gratitude to HDFC Bank Limited, promoter of Deepak S. Parekh
your Company. New York Chairman
The Directors acknowledge the valuable assistance, support June 07, 2024 (DIN: 00009078)
and guidance given by the Securities and Exchange Board of
India, Association of Mutual Funds of India, Reserve Bank of CIN: L65991MH1999PLC123027
India, Ministry of Corporate Affairs, Registrar of Companies, Registered Office:
Stock Exchanges and Depositories. “HDFC House”, 2nd Floor, H. T. Parekh Marg
The Directors wish to place on record their appreciation to 165 - 166, Backbay Reclamation, Churchgate
employees at all levels for their dedication and commitment. Mumbai – 400 020.
Tel.: 022 – 6631 6333, Fax: 022 – 66580203

72 POWERED BY PURPOSE
 STATUTORY REPORTS DIRECTORS’ REPORT

Annexure I

Secretarial Audit Report

For The Financial Year Ended March 31, 2024
[Pursuant to Section 204(1) of the Companies Act, 2013 and
Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To iv. Foreign Exchange Management Act, 1999 and the rules

The Members, and regulations made thereunder to the extent of Foreign
HDFC Asset Management Company Limited Direct Investment and Overseas Direct Investment.
CIN: L65991MH1999PLC123027 The Company does not have any External Commercial
Borrowings during the financial year.
We have conducted the secretarial audit of the compliance
of applicable statutory provisions and the adherence to good v. The following Regulations and Guidelines prescribed
corporate practices by HDFC Asset Management Company under the Securities and Exchange Board of India Act,
Limited (hereinafter called ‘the Company’). Secretarial audit 1992 (‘SEBI Act’): -
was conducted in a manner that provided us a reasonable basis
a. 
The Securities and Exchange Board of India
for evaluating the corporate conducts/statutory compliances
(Substantial Acquisition of Shares and Takeovers)
and expressing our opinion thereon.
Regulations, 2011;
Based on our verification of the Company’s books, papers, b. 
The Securities and Exchange Board of India
minute books, forms and returns filed and other records (Prohibition of Insider Trading) Regulations, 2015;
maintained by the Company and also the information
c. The Securities and Exchange Board of India (Issue of
provided by the Company, its officers, agents and authorized
Capital and Disclosure Requirements) Regulations,
representatives during the conduct of secretarial audit, we
2018#;
hereby report that in our opinion, the Company has, during
the audit period covering the financial year ended on March 31, d. The Securities and Exchange Board of India (Share
2024 complied with the statutory provisions listed hereunder Based Employee Benefits and Sweat Equity)
and also that the Company has proper Board-processes and Regulations, 2021;
compliance mechanism in place to the extent, in the manner e. The Securities and Exchange Board of India (Issue and
and subject to the reporting made hereinafter: Listing of Non-Convertible Securities) Regulations,
2021#;
We have examined the books, papers, minute books, forms and
returns filed and other records maintained by the Company for f. 
The Securities and Exchange Board of India
the financial year ended on March 31, 2024 according to the (Registrars to an Issue and Share Transfer Agents)
provisions of: Regulations, 1993 regarding the Companies Act,
2013 and dealing with client;
i. The Companies Act, 2013 (‘the Act’) and the rules
g. The Securities and Exchange Board of India (Delisting
made thereunder;
of Equity Shares) Regulations, 2021#; and
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) h. The Securities and Exchange Board of India (Buy-
and the Rules made thereunder; Back of Securities) Regulations, 2018#;
iii. The Depositories Act, 1996 and the Regulations and Bye- i. The Securities and Exchange Board of India
laws framed thereunder; (Depositories and Participants) Regulations, 2018.

#
The Regulations or Guidelines, as the case may be were not
applicable to the Company for the period under review.

ANNUAL REPORT 2023-24 73

HDFC ASSET MANAGEMENT COMPANY LIMITED

The list of Acts, Laws and Regulations specifically applicable to We further report that during the audit period, the following
the Company are given below: events/actions occurred -

vi. The Securities and Exchange Board of India (Mutual Funds) i. Hon’ble National Company Law Tribunal, Mumbai
Regulations, 1996 as amended; Bench vide its order dated March 17, 2023, approved
the composite scheme of amalgamation of (i) HDFC
vii. The Securities and Exchange Board of India (Portfolio
Investments Limited and HDFC Holdings Limited, wholly-
Managers) Regulations, 2020;
owned subsidiaries of Housing Development Finance
viii. The Securities and Exchange Board of India (Alternative Corporation Limited (‘HDFC Ltd’) with and into HDFC Ltd;
Investment Funds) Regulations, 2012. and (ii) HDFC Ltd with and into HDFC Bank Limited (‘HDFC
Bank’). The said scheme was effective from July 01, 2023,
We have also examined compliance with the applicable clauses
consequent to which –
of the following:

i. Secretarial Standards issued by The Institute of Company • HDFC Bank became the Holding Company and
Secretaries of India. Promoter of the Company in place of erstwhile HDFC
Ltd; and
ii. The Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, • HDFC Bank became the Sponsor of HDFC Mutual Fund
2015 (‘Listing Regulations’). and HDFC AMC AIF II, in place of erstwhile HDFC Ltd.

During the period under review, the Company has complied ii. Pursuant to the receipt of approval from the Securities
with the provisions of the Act, Rules, Regulations, Guidelines, and Exchange Board of India (‘SEBI’), abrdn Investment
Standards, etc. mentioned above to the extent applicable. Management Limited (‘abrdn’), one of the promoters
of the Company, on June 20, 2023, sold its entire stake
We further report that - in the Company i.e. 10.20% of the paid up capital of the
The Board of Directors of the Company is duly constituted Company and requested the Company to reclassify
with proper balance of Executive Director, Non-Executive them from the “Promoter” category to “Public” category
Directors and Independent Directors. Further the changes in accordance with Regulation 31A of the Listing
in the composition of the Board of Directors, that took place Regulations. Accordingly, the Company after carrying
during the period under review, were carried out in compliance out the requisite compliance under Regulation 31A of
with the provision of the Act. the Listing Regulations made an application to National
Stock Exchange of India Limited and BSE Limited
Adequate notice was given to all directors to schedule the (‘Stock Exchanges’), for such reclassification. Basis the
Board Meetings, agenda and detailed notes on agenda were application, Stock Exchanges had on September 18,
sent at least seven days in advance for meetings, except for one 2023 approved reclassification of abrdn from ‘Promoter’
Board Meeting where agenda was sent at a shorter period, and Category to ‘Public’ Category. Further, abrdn also ceased
a system exists for seeking and obtaining further information as co-sponsor of HDFC Mutual Fund.
and clarifications on the agenda items before the meeting and
for meaningful participation at the meeting. For Bhandari & Associates
Company Secretaries
During the period under review, decisions were carried through
Unique Identification
unanimously and no dissenting views were observed, while
No.: P1981MH043700
reviewing the minutes.
Peer Review Certificate No.: 611/2019
We further report that there are adequate systems and
processes in the Company commensurate with the size and S. N. Bhandari
operations of the Company to monitor and ensure compliance Partner
with applicable laws, rules, regulations and guidelines.
FCS No.: 761; C P No.: 366
Mumbai | May 21, 2024
UDIN: F000761F000408476

74 POWERED BY PURPOSE
 STATUTORY REPORTS DIRECTORS’ REPORT

This report is to be read with our letter of even date which 3. We have not verified the correctness and appropriateness
is annexed as Annexure ‘A’ and forms an integral part of of financial records and books of accounts of the Company.
this report.
4. Where ever required, we have obtained the Management
representation about the compliance of laws, rules and
regulations and happening of events etc.
‘Annexure A’
5. The compliance of the provisions of Corporate and
other applicable laws, rules, regulations, standards is
To
the responsibility of management. Our examination was
The Members, limited to the verification of procedures on test basis.

HDFC ASSET MANAGEMENT COMPANY LIMITED 6. The Secretarial Audit report is neither an assurance as to
CIN: L65991MH1999PLC123027 the future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted
Our Secretarial Audit Report for the financial year ended on the affairs of the Company.
March 31, 2024 of even date is to be read along with this letter.
For Bhandari & Associates
1. Maintenance of secretarial record is the responsibility of
Company Secretaries
the management of the Company. Our responsibility is to
Unique Identification No.: P1981MH043700
express an opinion on these secretarial records based on
Peer Review Certificate No.: 611/2019
our audit.

2. We have followed the audit practices and processes S. N. Bhandari

as were appropriate to obtain reasonable assurance Partner
about the correctness of the contents of the secretarial
FCS No.: 761; C P No.: 366
records. The verification was done on test basis to ensure
Mumbai | May 21, 2024
that correct facts are reflected in secretarial records. We
believe that the processes and practices, we followed UDIN: F000761F000408476
provide a reasonable basis for our opinion.

ANNUAL REPORT 2023-24 75

HDFC ASSET MANAGEMENT COMPANY LIMITED

Annexure II

Annual Report on Corporate

Social Responsibility Activities
As prescribed under Section 135 of the Companies Act, 2013
and Companies (Corporate Social Responsibility Policy) Rules, 2014

1. Brief outline on CSR Policy of the Company: The Company carries its Corporate Social Responsibility (‘CSR’) activities
through various implementing agencies. The details of the Company’s CSR Initiatives project / programs and activities are
provided in this annexure and more particularly specified in the CSR Policy of the Company which is uploaded on its website
and can be viewed on https://www.hdfcfund.com/about-us/corporate-profile/csr.

2. Composition of Environmental, Social and Governance & Corporate Social Responsibility (‘ESG & CSR’) Committee:

Sr. Number of meetings of ESG & CSR Number of meetings of ESG & CSR
Name of Director Designation/ Nature of Directorship
No. Committee held during the year Committee attended during the year
1 Mr. Deepak S. Parekh Chairman 3 3
2 Mr. Parag Shah Independent Director 3 3
3 Mr. Navneet Munot Managing Director and Chief 3 3
Executive Officer
4 *Mr. Sanjay Bhandarkar Independent Director 2 2
* Mr. Sanjay Bhandarkar was appointed as member of the Committee w.e.f. April 25, 2023.

3. Provide the web-link(s) where Composition of ESG social and philanthropic causes. To ensure effective
& CSR Committee, CSR Policy and CSR Projects monitoring of these projects, the company has partnered
approved by the board are disclosed on the website of with Samhita Social Ventures as its administrative partner.
the company - https://www.hdfcfund.com/about-us/
Healthcare Initiatives -
corporate-profile/csr
1. LINAC Equipment at Head and Neck Cancer Hospital:

Provide the executive summary along with web-link(s)
About the Project -
of Impact Assessment of CSR Projects carried out in
pursuance of sub-rule (3) of rule 8, if applicable. - The The Head and Neck Cancer Hospital, operated under
Company in line with sub rule (3) of rule 8 of the Companies CanCare Trust, prioritizes the treatment of head and neck
(Corporate Social Responsibility Policy) Rules, 2014, cancers, constituting 90% of its patient base. However,
has undertaken Impact Assessment of the applicable the current healthcare landscape reveals a significant
projects through an independent agency. The complete gap in infrastructure, with many facilities equipped with
Impact Assessment Reports of the applicable projects outdated and inadequate equipment. This discrepancy is
are available on the Company’s website at https://www. especially concerning given the high number of individuals
hdfcfund.com/ about-us/corporate-profile/csr. affected by cancer in India, estimated at approximately
1.4 million.

A brief outline of the aforesaid Impact Assessment is
given below: - HDFC AMC’s Objective -
To providing access to advanced treatment modalities
HDFC AMC has ingrained Corporate Social Responsibility
to patients from underprivileged backgrounds, providing
(CSR) into its core values and culture. The organization is
them access to advanced treatment options typically
committed to creating value for the ecosystem in which
available in private hospitals at a premium, through the
it operates and has been be undertaking initiatives long
procurement of a Linear Accelerator (LINAC) for the Head
before the provisions of CSR in the Companies Act, 2013.
and Neck Cancer Hospital
HDFC AMC supports projects undertaken by credible
NGOs, community groups, and other organizations for

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Key Findings - 3. Doctors For You:

The project impacted 130 patients reaching 90% of About the project -
its capacity within 3-4 months for project completion. HDFC AMC collaborated with Doctors For You to conduct
Utilization of the LINAC equipment, supported by a COVID vaccination drive from January 2022 to March
HDFC AMC, demonstrated effective cancer treatment 2022. The campaign was highly cost-efficient, with a per-
outcomes. Most patients reported that the LINAC dose cost of less than ` 100, successfully reducing vaccine
required less time and caused fewer side effects hesitancy and achieving high participation rates.
compared to other equipment.
HDFC AMC’s Objective
Sustainable Development Goals The aim was to support the mobilization of a large-
scale initiative to reach the COVID-19 Vaccination to
underserved communities, particularly women, in remote
locations across the country.
Key Findings-
2. Indian Cancer Society- Cancer Cure Fund: This drive resulted in the administration of 1,00,301 doses
About the project - over a period of 2+ months across 5 states - Karnataka,
Maharashtra, Tamil Nadu, Uttar Pradesh and Kerala.
The Cancer Cure Fund, supported by HDFC AMC and
administered by the Indian Cancer Society, provides 69.4% of respondents have received their second or
financial assistance to underprivileged and low-income booster doses in the drive.
patients diagnosed with any curable/ early detected Inclusivity and access were generally well-handled, with
cancers through the empaneled hospitals. representation across different age groups.

HDFC AMC’s Objective - Sustainable Development Goals

The aim is to make treatment and supportive care services

accessible to patients and ensuring that they receive the
essential medical attention required for cancer cure.

Key Findings - Education Initiatives

The Cancer Cure Fund has reduced financial burdens for
1,209 cancer patients belonging to 26 states by providing 1. Sampark Foundation:
essential treatment and care. Fund allocation involved About the project -
a rigorous due diligence process with multiple levels
The 'Sampark Smart Shala' project aimed at enhancing
of scrutiny by doctors, donors, and AI. This thorough
education through technology and connectivity. It was
process ensures that the most deserving patients
a community-based educational program imparted by
receive support. Nearly 69% of respondents found the
training teachers to deliver the content that utilizes
application process user-friendly.
innovations such as board games, paper charts, and radio
Sustainable Development Goals devices to keep students engaged in lessons.

HDFC AMC’s Objective -

To provide foundational education to students across
remote underserved districts of Jharkhand through
training the teachers and the distribution of learning
materials which use innovative & gamification techniques

ANNUAL REPORT 2023-24 77

HDFC ASSET MANAGEMENT COMPANY LIMITED

Key Findings - 3. Ashoka University:


Reach: The program impacted more than 4.9 lakh About the project -
students from 8,216 schools in aspirational districts of Ashoka University aimed to enhance the adaptability of
Jharkhand. Improvement in Education: The Smart Shala its graduate students to prepare them for the evolving
program significantly improved teaching productivity and job market, by facilitating a liberal arts degree that is
student engagement by distributing Maths and English structured to foster learning and collaborative efforts
kits, including audio and braille components. HDFC AMC’s Objective -
Teacher Feedback: 90% of teachers found the kits The aim was to foster educational system that is a
extremely useful. strategic investment in the future of India's higher
education ecosystem by way of supporting liberal arts.
Sustainable Development Goals
Key Findings -
Impact: HDFC AMC’s support for constructing a lecture
hall at Ashoka University has benefited 2,600 students
and 150 faculty members.

I nclusive Design: The hall’s inclusive design caters

2. Parivaar Education Society:
to individuals with disabilities and includes modern
About the project - technological infrastructure, facilitating interactive and
The Seva Kutir project focuses on improving nutrition and collaborative learning.
foundational education for children aged 4-14. HDFC AMC

E nhanced Experience: Students and faculty have
provided support to 60 Seva Kutirs (day boarding centres
reported enhanced learning experiences and operational
operated by Parivaar) across five districts—mainly tribal
efficiency due to the new facility.
areas—in Dindori, Vidisha, Khandwa, Dewas, and Sehore
district of Madhya Pradesh. Sustainable Development Goals

HDFC AMC’s Objective -

To provide nutritious meals and supplementary
foundational education to underprivileged children
from rural & tribal areas of Madhya Pradesh in order to
4. (a) Average net profit of the company as per sub-
eradicate malnutrition.
section (5) of section 135. - ` 15,64,52,17,392/-
Key Findings - (b) Two percent of average net profit of the company as
I mpact on Children: The Seva Kutir project has enhanced per sub-section (5) of section 135. - ` 31,29,04,348/-
educational and nutritional outcomes for 6,055 children, (c) 
Surplus arising out of the CSR Projects or
improving school attendance, academic performance, programmes or activities of the previous financial
and social behaviour through a structured approach and years. - NIL
community involvement.
(d) Amount required to be set-off for the financial year,
Sustainable Development Goals if any. - NIL
(e) Total CSR obligation for the financial year [(b)+(c)-
(d)]. - ` 31,29,04,348/-
5. (a) Amount spent on CSR Projects (both Ongoing
Project and other than Ongoing Project). -
` 31,11,38,668/-
(i) Details of CSR amount spent against ongoing
projects for the financial year: NIL
(ii) Details of CSR amount spent against other
than ongoing projects for the financial year:
` 31,11,38,668/-

78 POWERED BY PURPOSE
 STATUTORY REPORTS DIRECTORS’ REPORT

(b) Amount spent in Administrative Overheads. - ` 10,57,680/-

(c) Amount spent on Impact Assessment, if applicable – ` 7,08,000/-

(d) Total amount spent for the Financial Year [(a)+(b)+(c)]. - ` 31,29,04,348/-

(e) CSR amount spent or unspent for the Financial Year:

Amount Unspent (in K)

Total Amount transferred Amount transferred to any fund specified

Total Amount Spent
to Unspent CSR Account as per under Schedule VII as per second proviso to sub-section
for the Financial Year. (in K)
sub-section (6) of section 135. (5 of section 135.

Amount. Date of transfer. Name of the Fund Amount Date of transfer.

` 31,29,04,348/-* NIL NA - - -
* This amount includes: (i) amounts spent for other projects (` 31,11,38,668/-); (ii) amount spent as administrative Overheads (` 10 ,57,680 );
and (iii) amount spent on Impact Assessment (` 7,08,000)

(f) Excess amount for set-off, if any: NIL

1 2 3
Sr. No. Particulars Amount (in `)
(i) Two percent of average net profit of the company as per sub-section (5) of section 135 ` 31,29,04,348/-
(ii) Total amount spent for the Financial Year ` 31,29,04,348/-
(iii) Excess amount spent for the Financial Year [(ii)-(i)] NIL
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous Financial Years, if any NIL
(v) Amount available for set off in succeeding Financial Years [(iii)-(iv)] NIL

7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:
1 2 3 4 5 6 7 8

Balance Amount Amount transferred

Amount transferred to a Fund as specified
in Unspent CSR
to Unspent CSR under Schedule VII as Amount remaining
Account under Amount Spent
Preceding Account under per second proviso to be spent in Deficiency,
Sr. sub- section (6) of in the
Financial sub- section (6) to sub- section (5) of succeeding if any
No. section 135 (in `) Financial Year
Year(s) of section 135 section 135, if any Financial Years
(at the beginning (in K)
(in K) (in K)
of the reporting
financial year) Amount Date of
(in K) Transfer
1 FY-2020-21 ` 17,29,60,000/- NIL NIL NIL NIL NIL NA
2 FY-2021-22 ` 5,24,43,660/- NIL NIL NIL NIL NIL NA
3 FY-2022-23 NIL NIL NIL NIL NIL NIL NA

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount
spent in the Financial Year:

YES No

If Yes, enter the number of Capital assets created/ acquired 8

ANNUAL REPORT 2023-24 79

HDFC ASSET MANAGEMENT COMPANY LIMITED

 urnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent
F
in the Financial Year:
Pincode of
Sr. Short particulars of the property Amount of
the Details of entity/ authority/ beneficiary of the registered
No. or asset(s)[including complete Date of creation CSR amount
property owner
address and location of the property] spent
or asset(s)
1 2 3 4 5 6

CSR Registered
Registration Address
Name
Number, if
applicable

1 200 Water Tank Lofts- Flats 1701 400021 18th Sep 2023 20,20,795 CSR00004479 Rotary Club 97-B, Mittal Tower, Free
to 2412, Building 5D, MHADA Bombay Press Journal Marg,
Transit Camp Bombay Dyeing Mill Charities Nariman Point, Mumbai
Compound, Bhoiwada,Cemetery Trust No. 3 -400021
Lower parel, Mumbai - 400021
2 4 Tata Ace Electric Vehicles - C-6 302017 31st Jan 2024 38,42,415 CSR00000286 Akshay 72, 3rd Floor, 3rd Main,
- C-11, Mahal Yogna, Goner Road, Patra 1st and, 2nd-stage,
Jagatpura, Jaipur - 302017 Foundation Yeswanthpur,
3 Vessels - 184 C-6 - C-11, Mahal 302017 13th Mar 2024 7,09,946 Industrial Suburb, Ward No
Yogna, Goner Road, Jagatpura, 10, Bangalore-560 022
Jaipur - 302017
4 2 Bolero CNG Vehicles Khasara 281405 6th Feb 2024 22,08,673
No. 149/1, Village - Lodhauli Moza
Ajnokh, Post - Barsana, Tehsil-
Chhata Mathura- 281405
5 Vessels -175 Khasara No. 149/1, 281405 4th Mar 2024 6,49,481
Village - Lodhauli Moza Ajnokh, Post
- Barsana, Tehsil- Chhata Mathura-
281405
6 4 Philips MX550 Multiparameter 600034 10th Oct 2024 31,50,000 CSR00002494 The CHILDS Kanchi Kamakoti
Patient Monitor - Kanchi Kamakoti Trust CHILDS Trust Hospital,
CHILDS Trust Hospital, 12A 12A Nageswara Road,
Nageswara Road, Nungambakkam, Nungambakkam,
Chennai-600034 Chennai-600034
7 Barkey Autoline 4R LF CCRT 600034 14th Feb 24 2,41,984
Pediatric Warmer Sleeve -
Kanchi Kamakoti CHILDS Trust
Hospital, 12A Nageswara Road,
Nungambakkam, Chennai-600034
8 Philips SpO2 Reusable Sensor 600034 18th Mar 24 8,194
M1196A - Kanchi Kamakoti
CHILDS Trust Hospital, 12A
Nageswara Road, Nungambakkam,
Chennai-600034

(All the fields should be captured as appearing in the revenue record, flat no, house no, Municipal Office/Municipal Corporation/
Gram panchayat are to be specified and also the area of the immovable property as well as boundaries)

9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per subsection (5) of
section 135. – Not Applicable

Deepak S. Parekh Navneet Munot

DIN: 00009078 DIN: 05247228
Chairman of ESG & CSR Committee Managing Director & Chief Executive Officer

80 POWERED BY PURPOSE
 STATUTORY REPORTS DIRECTORS’ REPORT

Annexure III

Disclosures on
Managerial Remuneration
Details of remuneration as required under Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, is provided below:

Ratio of remuneration of each director to the median employees’ remuneration for FY 2023-24
Ratio of remuneration to the median
Name Designation
employees’ remuneration
Mr. Navneet Munot Managing Director & Chief Executive Officer 76.5:1
Mr. Deepak S. Parekh Non-Executive - Non Independent Director 4.8:1
Mr. Keki Mistry1 Non-Executive - Non Independent Director 1.1:1
Ms. Renu Sud Karnad Non-Executive - Non Independent Director 4.19:1
Mr. Rushad Abadan2 Non-Executive - Non Independent Director -
Mr. V. Srinivasa Rangan3 Non-Executive - Nominee Director -
Mr. Dhruv Kaji Non-Executive - Independent Director 4.8:1
Mr. Jairaj Purandare Non-Executive - Independent Director 4.6:1
Mr. Sanjay Bhandarkar Non-Executive - Independent Director 4.9:1
Mr. Parag Shah Non-Executive - Independent Director 4:1
Ms. Roshni Nadar Malhotra Non-Executive - Independent Director 3:1
1
Mr. Keki Mistry ceased to be Non-Executive Director of the company w.e.f. June 26, 2023
2
Mr. Rushad Abadan ceased to be Non-Executive Director of the company w.e.f. the close of business hours of April 18, 2023.
3
Mr. V. Srinivasa Rangan appointed as Non-Executive Director of the company (Nominee of HDFC Bank Limited) w.e.f. January 12, 2024

Note:
The Company has considered fixed pay and performance bonus / commission for the computation of ratios. Fixed pay includes – salary, allowances, as
well as value of perquisites excluding retiral benefits.

Percentage increase in the remuneration of each director and key managerial personnel in FY 2023-24
Key Managerial Personnel
Name Designation Increase in Remuneration (%)
Mr. Navneet Munot Managing Director & Chief Executive Officer 9.29%
Mr. Naozad Sirwalla Chief Financial Officer 11.50%
Ms. Sylvia Furtado Company Secretary 9.42%

Non-Executive Directors
There was no change in the sitting fees paid to the Non-Executive Directors for attending meetings of board/committees. The
Commission payable to each Non-Executive Director for FY 2023-24 is ` 25 lacs, which is same as last year and this Commission
will be paid after the financial statements are approved by the Shareholders at the Annual General Meeting scheduled to be held
on July 25, 2024.

Further, details on remuneration for all the directors are provided in Corporate Governance Report which is a part of this
Annual Report.

Percentage increase in the median remuneration of employees in FY 2023-24

The percentage increase in the median remuneration of employees in FY 2023-24 was 16.28%.

ANNUAL REPORT 2023-24 81

HDFC ASSET MANAGEMENT COMPANY LIMITED

Number of permanent employees on the rolls of the Company

The Company had 1,509 permanent employees as of March 31, 2024.

Average percentile increase already made in salaries of employees other than managerial personnel in last financial
year and its comparison with the percentile increase in managerial remuneration and justification thereof and point out
if there are any exceptional circumstances for increase in the managerial remuneration
The average increase in the salaries of all employees for FY 2023-24 was 14.43%. The average increase in remuneration of
managerial personnel was 9.67% and non-managerial personnel was 14.72%.

The criteria for remuneration evaluation for all Non-Managerial Personnel is based on an appraisal process which is conducted
on semi-annual basis and the remuneration of the managerial personnel is based as per the Nomination & Remuneration Policy.
The increase in remuneration is an outcome of a combination of the overall performance of the Company and individual’s
performance. The Company reiterates that there were no exceptional circumstances which warranted an increase in managerial
remuneration which was not justified by the overall performance of the Company.

Affirmation that the remuneration is as per the remuneration policy of the Company
Yes

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 STATUTORY REPORTS BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

Business Responsibility & Sustainability Report

Principle 1 93 Principle 6 108

Businesses should conduct and Businesses should respect and

govern themselves with integrity, make efforts to protect and restore
and in a manner that is Ethical, the environment
Transparent and Accountable

Principle 2 96 Principle 7 113

Businesses should provide goods Businesses, when engaging in

and services in a manner that is influencing public and regulatory
sustainable and safe policy, should do so in a manner that
is responsible and transparent

Principle 3 98 Principle 8 114

Businesses should respect and Businesses should promote inclusive

promote the well-being of all growth and equitable development
employees, including those in their
value chains

Principle 4 103 Principle 9 116

Businesses should respect the Businesses should engage with and

interests of and be responsive to all provide value to their consumers in a
its stakeholders responsible manner

Principle 5 105

Businesses should respect and

promote human rights

ANNUAL REPORT 2023-24 83

HDFC ASSET MANAGEMENT COMPANY LIMITED

Section A- General Disclosures

I. Details of the listed entity:
Sr. No Particulars Details
1 Corporate Identity Number (CIN) of the L65991MH1999PLC123027
Company
2 Name of the Listed Entity HDFC Asset Management Company Limited (‘HDFC AMC’/ 'the Company')
3 Year of Incorporation 1999
4 Registered Office Address HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166, Backbay Reclamation,
Churchgate, Mumbai – 400 020
5 Corporate Address HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166, Backbay Reclamation,
Churchgate, Mumbai – 400 020
6 E-mail [email protected]
7 Telephone +91 22 66316333
8 Website www.hdfcfund.com
9 Financial Year for which reporting is done FY 2023-24
10 Name of the Stock Exchange(s) where BSE Limited (BSE) & National Stock Exchange of India Limited (NSE)
shares are listed
11 Paid-up Capital H 106.74 Crore
12 Name and contact details (telephone, Mr. Kartik Parekh
email address) of the person who may be Joint Assistant Vice President- Investor Relations
contacted in case of any queries on the Telephone no- +91 22 66316333
BRSR report E-mail id- [email protected]
13 Reporting boundary The disclosures made under this report are on standalone basis. The Business
Responsibility and Sustainability Reporting (BRSR) is in conformance with the
Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations 2015.
There is a restatement due to re-computation of a BRSR attribute on the basis of
the approach and methodology adopted for the disclosures of FY 2023-24. The
restatement would enable completeness and comparability of information for the
current year and previous year. The reason relating to the restatement has been
explained as a footnote under the relevant attribute of the report.
14 Name of assurance provider B S R & Co. LLP
15 Type of assurance obtained Reasonable Assurance on BRSR Core attributes

II. Products/Services
16. Details of Business Activities
Sr. No Description of Main Activity Description of Business Activity % of Turnover
1. Financial & Insurance Service Fund Management Services 99.85
2. Financial & Insurance Service Financial Advisory, Brokerage & Consultancy Services 0.15

17. Products/Services sold by the entity

% of Turnover
Sr. No Product/Service NIC Code
contributed
1. The Company offers a wide range of savings and investment products ranging from 66301 100
mutual funds, including both actively managed and passive options, to portfolio
management services and alternative investment opportunities catering to the needs
of a large and diverse customer base.

84 POWERED BY PURPOSE
 STATUTORY REPORTS BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

III. Operations
18. Number of locations where plants and/or operations/offices of the entity are situated
Location Number of Plants Number of Offices Total
National NA* 253 253
International# NA* 1 1
*The Company is into financial services and does not undertake any manufacturing activity
# Representative Office in Dubai

19. Markets served by the entity

a. Number of locations
Locations Number
National (No. of States) * 36
International (No. of Countries) -
*Includes union territories

b. What is the contribution of exports as a percentage of the total turnover of the entity?
NIL

c. A brief on types of customers

The Company offers a wide range of mutual fund and alternative investment products across asset classes to large and
diverse customer base. The Company closed FY 23-24 with 96 Lakh unique customers, 166 Lakh live accounts serviced
through 254 branches. Nearly 22% of all MF investors in India have chosen to invest with HDFC AMC. In terms of Monthly
Average Assets Under Management (MAAUM) for March 2024, individual investors contribute approximately 71%, while
institutional investors account for 29%. Geographically, 19% of MAAUM is sourced from B30* cities, with the remaining
81% coming from T30* cities. With a 13.3% market share of individual investor MAAUM for March 2024, the Company has
established itself as the premier choice for individual investors.

*T30 refers to the top 30 geographical locations in India and B30 refers to the locations beyond the top 30.

IV. Employees
20. Details as at March 31, 2024
a. Employees (including differently abled):
Male Female
Particulars Total (A)
No (B) % (B/A) No (C) % (C/A)
Permanent* (D) 1,509 1,090 72% 419 28%
Other than Permanent (E) 541 285 53% 256 47%
Total employees (D + E) 2,050 1,375 67% 675 33%
*active employees+ employees serving notice

The entire workforce of the Company is categorized as ‘Employees’ and none as ‘Workers’. Therefore, the information in
BRSR under the ‘Workers’ category is not applicable.

b. Differently abled employees

Male Female
Particulars Total (A)
No (B) % (B/A) No (C) % (C/A)
Differently Abled Employees
Permanent (D) 2 1 50% 1 50%
Other than Permanent (E) 2 2 100% - -
Total differently abled employees (D + E) 4 3 75% 1 25%

ANNUAL REPORT 2023-24 85

HDFC ASSET MANAGEMENT COMPANY LIMITED

21. Participation/Inclusion/Representation of women

No & % of Females
Particulars Total (A)
No (B) % (B/A)
Board of Directors 9 2 22.22%
Key Management Personnel 3 1 33.33%

Note: Details as at March 31,2024

22. Turnover rate for permanent employees

FY 23-24 FY 22-23 FY 21-22
Particulars
Male Female Total Male Female Total Male Female Total
Permanent Employees 13% 15% 14% 18% 24% 20% 16% 23% 18%

V. Holding, Subsidiary and Associate Companies (including joint ventures)

23. (a) Names of holding / subsidiary / associate companies / joint ventures (As at March 31, 2024)
Name of the holding / subsidiary / associate companies / joint Indicate whether holding/ Subsidiary/ Associate/ % of shares held in
Sr. No
ventures (A) Joint Venture listed entity
1 HDFC BANK LIMITED* Holding Company 52.55%
2 HDFC AMC International (IFSC) Limited Wholly Owned Subsidiary (‘WOS’) 100%

* Note: HDFC Bank Limited is the Holding Company of HDFC Asset Management Company Limited effective July 01, 2023 pursuant to the
Composite scheme of amalgamation of: (i) HDFC Investments Limited and HDFC Holdings Limited, wholly owned subsidiaries of Housing
Development Finance Corporation Limited ('HDFC Ltd') with and into HDFC Ltd; and (ii) HDFC Ltd with and into HDFC Bank.

Does the entity indicated at column A above, participate in the Business Responsibility initiatives of the listed entity?
(Yes/No)
The Holding Company has its own Business Responsibility (BR) initiatives and generally do not participate in BR initiatives
of the Company. The WOS was incorporated on May 27, 2022 and is in process of commencing its operations.

VI. CSR Details

24. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: Yes

(ii) Turnover: H 2,584 Crore

(iii) Net worth: H 7,079 Crore

VII. Transparency and Disclosures Compliances

25. Complaints/ Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible
Business Conduct (NGRBC)

Grievance FY 23-24 FY 22-23

Redressal Number of Number of
Mechanism in Place Number of complaints Number of complaints
Stakeholder group from
(Yes/No) (If Yes, complaints pending complaints pending
whom complaint is received Remarks Remarks
then provide web- filed during resolution at filed during resolution at
link for grievance the year close of the the year close of the
redress policy) year year
Communities - - - - - - -
Investors - - - - - - -
(other than shareholders)
Shareholders1 Yes 4 0 - 3 0 -
Employees and workers2 Yes 3 0 - 0 0 -

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Grievance FY 23-24 FY 22-23

Redressal Number of Number of
Mechanism in Place Number of complaints Number of complaints
Stakeholder group from
(Yes/No) (If Yes, complaints pending complaints pending
whom complaint is received Remarks Remarks
then provide web- filed during resolution at filed during resolution at
link for grievance the year close of the the year close of the
redress policy) year year
Customers3 Yes 1,858 6 - 2,190 12 -
Distributors Yes 4 0 - 8 0 -
(Value Chain Partners) 4
1h
 ttps://www.hdfcfund.com/information/shareholders-information-and-helpdesk Shareholders can also write to shareholders.relations@
hdfcfund.com
2 I nternal polices placed on the intranet and some of the policies guiding company’s conduct with its stakeholders on https://www.hdfcfund.com/
about-us/governance/codes-policies.
3 https://www.hdfcfund.com/contact-us/investor-relationship-officer
3https://www.hdfcfund.com/information/grievances-redressal-mechanism
4Distributors can write to us at [email protected] or [email protected]

26. Overview of the entity’s material responsible business conduct issues

Various material responsible business conduct and sustainability issues pertaining to environmental and social matters
that present a risk or an opportunity to the Company’s business are as indicated below:

Indicate Financial implications of

Material issue whether risk Rationale for identifying the the risk or opportunity
Sr. No In case of risk, approach to adapt or mitigate
identified or opportunity risk / opportunity (Indicate positive or
(R/O) negative implications)
1. Responsible Opportunity/ As an institutional investor, a. The Company has a robust investment Positive: Embedding
Investing Risk the Company has a duty to philosophy, efficient risk management, ESG considerations in
act in the best long-term and sound governance practices. investment decisions
interests of its customers b. The Company’s investment team reduces portfolio risks.
along with creating value. monitors ESG related factors in investee Negative: Reputational
In this fiduciary role, ESG companies. risks, in case the
issues can also impact the c. The Company has also adopted a Company is unable to
performance of investment stewardship code in line with the meet the stakeholder
portfolios. regulatory requirements. expectations.
d. The Company has become signatory
of the United Nations- supported
Principles for Responsible Investment.
e. The Company has adopted the globally
recognised CFA Institute Asset
Manager Code.
2. Financial Opportunity Indians have predominantly The Company aims at inculcating the Positive:
Literacy saved money in traditional financial saving mindset by encouraging a. Enabling wealth
fixed income instruments/ Indians to invest in mutual funds against creation for every
lockers which may or may traditional methods by launching investor Indian
not be able to deliver positive awareness campaigns.
inflation adjusted returns or b. Connect with wider
in unregulated instruments audience
which may be high risk to c. Increase in financial
capital. literacy

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HDFC ASSET MANAGEMENT COMPANY LIMITED

Indicate Financial implications of

Material issue whether risk Rationale for identifying the the risk or opportunity
Sr. No In case of risk, approach to adapt or mitigate
identified or opportunity risk / opportunity (Indicate positive or
(R/O) negative implications)
3. Data Security Risk The Company relies a. The Company has a strong Cyber Risk Negative:
& Customer heavily on its technology Management framework wherein cyber a. Reputational risks
Privacy infrastructure. As majority of risk and its mitigation are monitored by
transactions are processed the Information Technology & Security b. Information Security
digitally, it increases cyber/ Committee and Risk Management and Cyber risk
information security risk. Committee c. Compliance risk.
b. The Company sensitises employees,
customers and other stake holders on
cyber frauds, data privacy and other
related concerns.
c. Identified personnel are regularly
trained and limited access is provided to
various members of the team to avoid
fraudulent use of critical information.
4. Digitisation Opportunity The demand for and The Company has consistently invested Positive:
acceptance of digital in technology, building a robust digital a. Cost efficiencies
transactions is increasing, environment within the organization
driven by government to minimize reliance on paper-based b. Better customer
initiatives like Digital India, transactions and communication. reach & service
low-cost internet data, through digital
widespread smartphone operations
adoption and India's c. Increased
biometric identity card penetration in B30
system (AADHAR) cities

Section B- Management & Process Disclosures

The National Guidelines for Responsible Business Conduct (NGRBC) as prescribed by the Ministry of Corporate Affairs advocates
nine principles referred as P1-P9 as given below:

Principle 1: Principle 2: Principle 3:

Businesses should conduct and govern Businesses should provide goods and Businesses should respect and promote
themselves with integrity, and in a services in a manner that is sustainable the well-being of all employees,
manner that is Ethical, Transparent and safe including those in their value chains
and Accountable

Principle 4: Principle 5: Principle 6:

Businesses should respect the Businesses should respect and promote Businesses should respect and
interests of and be responsive to all human rights make efforts to protect and restore
its stakeholders the environment

Principle 7: Principle 8: Principle 9:

Businesses, when engaging in Businesses should promote inclusive Businesses should engage with and
influencing public and regulatory growth and equitable development provide value to their consumers in a
policy, should do so in a manner that is responsible manner
responsible and transparent

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Policy and Management Processes

P1 P2 P3 P4 P5 P6 P7 P8 P9
Disclosure Questions Well-being
Ethics & Product Responsiveness Respect for Environment Public Policy Inclusive Customer
of
Transparency Responsibility to Stakeholders Human Rights Protection Advocacy Growth Engagement
Employees
1. a. Whether your Yes Yes Yes Yes Yes Yes No1 Yes Yes
entity’s policy/
policies cover
each principle
and its core
elements of
the NGRBCs.
(Yes/No)
b. Has the policy Yes (as applicable)
been approved
by the Board?
(Yes/No)
c. Web Link of https://www.hdfcfund.com/about-us/corporate-governance/code-policy
the Policies, if Some policies being internal documents are available to the employees through the company’s intranet/HRMS
available
2. Whether the entity Yes (as applicable)
has translated
the policy into
procedures. (Yes /
No)
3. Do the enlisted The Company has not mandated any vendors, suppliers, business partners etc. to participate in the BR initiatives of the
policies extend to Company. However, they are encouraged to adopt BR initiatives expected from responsible business entities.
your value chain
partners? (Yes/No)
4. Name of the • Signatory of the United Nations-supported Principles for Responsible Investment.
national and • ISO 27001:2013 (Information security process and practices) - P2, P9
international
codes/
certifications/
labels/ standards
(e.g. Forest
Stewardship
Council, Fairtrade,
Rainforest
Alliance, Trustea
standards (e.g.
SA 8000, OHSAS,
ISO, BIS) adopted
by your entity and
mapped to each
principle

Notes:

1 The Company may share its expertise to help in the formulation of public policy but it does not directly engage in advocacy
activities and hence does not have a specific policy for this purpose. The Company actively engages in investor education
programmes for mutual funds in line with AMFI guidelines. Further, the Company, through AMFI, has advocated various
governance, administration, economic and educational reforms.

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HDFC ASSET MANAGEMENT COMPANY LIMITED

Principle-wise Polices
Principle Particulars Policies
P1 Ethics & Transparency • Whistle Blower Policy
• Policy on Conflict of Interest
• Social Media Policy
• Anti-Bribery & Anti-Corruption Policy
• Code of Conduct for Directors & Senior Management Personnel
• AML/CFT & KYC Policy
• Policy on Enterprise Risk Management
• Environmental, Social & Governance Policy (‘ESG Policy’)
• Nomination & Remuneration Policy
• Policy for Determination of Materiality of Events
• Policy on Related Party Transactions
• Code of Practices & Procedures for Fair Disclosure of Unpublished Price Sensitive Information
• Outsourcing Policy
• Voting Policy
• Investment Valuation Policy and Procedures
• Stewardship Code
• Information Security Policy
• Fraud Prevention Policy
Other internal policies that elucidate ethical behavior, transparency and accountability
P2 Product Responsibility • ESG Policy
P3 Well-being of Employees • Policy on Sexual Harassment of Women at Workplace
• Whistle Blower Policy
• ESG Policy
• Nomination & Remuneration Policy
• Policy provisions for Safety, Health & Wellbeing*
• Employee Manual
P4 Responsive to stakeholders, • Corporate Social Responsibility Policy
particularly the marginalised • Voting Policy
• Investment Valuation Policy and Procedures
• Stewardship Code
• ESG Policy
• Policy on Enterprise Risk Management
P5 Respect for Human Rights • Policy on Sexual Harassment of Women at Workplace
• Whistle Blower Policy
• ESG Policy
• Equal Opportunity Policy
• Human Rights Policy
P6 Environmental Protection • Business Continuity Policy
• ESG Policy
• Policy on Enterprise Risk Management
P7 Public Policy Advocacy The Company may share its expertise to help in the formulation of public policy, but it does not
directly engage in advocacy activities.
The Company actively engages in investor education programmes for mutual funds in line with
AMFI guidelines. Additionally, the senior leadership team takes active part in various committees
of AMFI and SEBI aimed at spreading financial literacy, increasing investor awareness, among
others. Also, the Company, through AMFI, has advocated various governance, administration,
economic and educational reforms.
P8 Inclusive Growth • CSR Policy
• ESG Policy
P9 Customer Engagement • Customer Query & Grievance Redressal Policy
• Information Security Policy
• ESG Policy
• Business Continuity Policy
• Policy on Enterprise Risk Management
• Cyber Security Policy
• Social media Policy
• Cyber Crisis Management Policy
*Part of Employee manual

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5. Specific commitments, goals and targets set by the • Over 13,600 cancer patients & their attendants availed
entity with defined timelines. the daily transport service.
• The Company aspires to be a wealth creator Energy & Waste management
for every Indian while shaping the savings and
• Over 1,900 Kgs of e-waste processed in an
investment landscape.
environmentally friendly manner.
• The Company recognises its role in creating a positive
• 4,000+ Kgs of plastic waste was processed in
impact in the lives of communities by identifying the
an environmentally friendly manner under our
core focus areas and achieving these through corporate
NurtureNature campaign.
social responsibility activities and investor awareness
programmes for improving financial literacy. • 90% of transactions are supported by integrated
online platform.
• The Company is striving to reduce its environmental
impact. • On boarding new applications to cloud platform
under Agile infrastructure initiative to reduce
• The Company promotes Diversity, Equity and Inclusion
carbon footprint.
(DE&I) culture at the workplace and at the same time
believes in hiring the right talent based on merit. • HDFC AMC as part of its CSR Initiatives towards
Environmental Sustainability has supported the
• The Company believes in up-skilling its human capital
development and sustentation of over 59,000 sq.ft.
for holistic development of its employees and to align
of “Biodiversity Park”.
with the changing business environment.
• The Company procured sustainable stationery products.
6. Performance of the entity against the specific
commitments, goals and targets along with reasons in • The Company has started tracking the Scope 1, 2 & 3
case the same are not met emissions since FY 2021-22.
Spreading Financial Literacy • Deployment of timers for signage boards to
• The Company conducted over 3,000 Investor save electricity.
Awareness Programs covering more than 2,70,000
Workforce Diversity
participants, creating awareness on mutual funds.
• ~33% of the Company’s work force are women.
• The Company has conducted over 900 investor
awareness programs under #BarniSeAzadi campaign, • ~27% of the leadership team comprise of women.
since the launch of this initiative, with the intent of • Differently abled candidates are part of the workforce.
promoting financial independence.
Up-skilling
• The Company conducted an investor education
• Over 64,000 employee training manhours clocked in
initiative that focuses on women investors and their
FY 2023-24.
specific financial needs and goals: Fem-power.
• ~1,000 employees attended ESG training on Climate
Inclusive growth through CSR Initiatives
Change and Energy Literacy.
The Company has contributed towards healthcare,
education, environmental sustainability and sports • 11 Ethics workshops conducted for employees.
development through its CSR activities: • Conducted 1,336 distributor training/ awareness
• Over 2,48,000 children provided access to foundational sessions (326 soft-skills and 1,010 technical programs)
learning and over 5,500 teachers trained covering a wide range of topics that attracted around
75,000 participants.
• Over 3,000 cancer patients provided with financial aid
for initial diagnosis & treatment. • NISM workshops: 509 workshops have been conducted
in the financial year covering over 7,000 participants.
• Over 11,700 children given access to nutritious meals
& quality education. • HDFC AMC Certification: PGP Academy & Moody’s 50+
hours course – Covering over 3,700 participants which
• 100 flats furnished for cancer patients undergoing
included employees and distributors.
treatment at TATA Memorial Hospital.

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HDFC ASSET MANAGEMENT COMPANY LIMITED

Governance, leadership and oversight promote environmental sustainability, and advance

7. Statement by director responsible for the business social inclusion.
responsibility & sustainability report, highlighting ESG We are dedicated to integrating sustainability into our
related challenges, targets and achievements decision-making processes and remain committed
At HDFC AMC, our commitment to excellence is anchored to our ESG goals through collaborative efforts with
in the principles of integrity, effective governance, and a all stakeholders. As a responsible investor, we have
client-centric approach. These values are at the heart reinforced our commitment to ESG principles by signing
of our efforts to build a strong ESG framework, aligning the United Nations-Supported Principles for Responsible
with our mission to become "the wealth creator for Investment, Climate Action 100+ and adopting the CFA
every Indian" and our vision to be "the most respected Institute Asset Manager Code.
asset manager in the world." This dedication is also
Our ongoing mission is to continually improve our ESG
reflected in our recognition conferred by Great Place To
practices and contribute to a sustainable future for
Work® (GPTW) India, and we are now certified as a great
everyone. By partnering with our stakeholders, we strive
workplace signifying our strong organizational culture of
to make a positive impact on society and the environment,
high-trust and employee satisfaction.
upholding our responsibilities as a leading asset manager.
Our ESG and CSR Committee of the Board plays a crucial
role in steering our ESG initiatives, offering strategic 8. Details of the highest authority responsible for
guidance and oversight. Our ESG mission, "To create implementation and oversight of the Business
sustainable wealth for every stakeholder by focusing on Responsibility policy (ies)
People, Planet, and Prosperity," reflects our dedication to Name Mr. Navneet Munot
fostering prosperity for a new India. Over the past year, DIN 05247228
we have implemented numerous initiatives to honor our Designation Managing Director & Chief Executive Officer
fiduciary duty to investors and the broader community,

9. Does the entity have a specified Committee of the Board/ Director responsible for decision-making on sustainability
related issues? (Yes / No). If yes, provide details
Yes, the ESG and CSR Committee of the Board provides guidance, leadership and necessary oversight for ESG initiatives
of the Company.

Name Designation DIN Category

Mr. Deepak Parekh Chairman 00009078 Non – Executive Director
Mr. Navneet Munot Member 05247228 MD & CEO
Mr. Sanjay Bhandarkar Member 01260274 Independent Director
Mr. Parag Shah Member 00374944 Independent Director

10. Details of Review of NGRBCs by the Company

Subject for Review Review of Principles Undertaken and their Frequency
Performance against above policies and follow up Relevant policies of the Company are reviewed periodically or on a need basis.
action The necessary changes to policies and procedures are implemented accordingly.
Compliance with statutory requirements of The Company is in compliance with the extant regulations as applicable.
relevance to the principles, and, rectification of any
non-compliances

11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an external agency?
(Yes/No). If yes, provide name of the agency
The processes and compliances are subject to audits and inspections as applicable. The policies are reviewed on a periodical
basis by the respective departments, and updated accordingly. The updated policies with changes recommended by the
management are placed before the Board for its approval, as applicable. An internal assessment of workings of the policies
has been carried out as stated above.

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12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
The entity does not consider the
Principles material to its business
(Yes/No)
The entity is not at a stage where it is in a
position to formulate and implement the
policies on specified principles (Yes/No)
Note 1
The entity does not have the financial or/
human and technical resources available
for the task (Yes/No)
It is planned to be done in the next
financial year (Yes/No)
Any other reason (please specify)

1. The Company may share its expertise to help in the formulation of public policy but it does not directly engage in
lobbying or advocacy activities and hence does not have a specific policy for this purpose. The Company actively
engages in investor education programmes for mutual funds in line with AMFI guidelines. Further, the Company,
through AMFI, has advocated various governance, administration, economic and educational reforms.

Section C: Principle wise performance disclosure

PRINCIPLE 1. Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical,
Transparent and Accountable.
Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the principles during the financial year:
%age of persons
Total number
in respective
of training and
Segment Topics / principles covered under the training and its impact category covered
awareness
by the awareness
programmes held
programmes
Board of Directors 1 Update on global ESG principles, standards, ratings and reporting, ESG 100%
journey in India, Introduction of reasonable assurance on BRSR Core.
Key Managerial 9 ESG Workshop, Ethics Training, Prevention of Sexual Harassment, 100%
Personnel Cyber Security Awareness, Training/awareness initiatives comprising
presentations regarding applicable laws/regulations, roles/responsibilities,
insights of SEBI orders/guidance, internal policies/codes and sharing
periodic refresher materials on do’s and don’ts covering policies viz. Polling,
Stewardship Code, Voting Policy, Conflict of Interest Policy, Securities
Dealing Code(s), Social Media Policy, Unauthenticated news.
Employees other 68 ESG Workshop, Ethics Training, Prevention of Sexual Harassment, Cyber 100%
than BOD and KMPs Security Awareness, Anti Money Laundering, Risk Management, Training/
awareness initiatives comprising presentations regarding applicable
laws/regulations, roles/responsibilities, insights of SEBI orders/guidance,
internal policies/codes and sharing periodic refresher materials on do’s
and don’ts covering policies viz. Polling, Stewardship Code, Voting Policy,
Conflict of Interest Policy, Securities Dealing Code(s), Social Media Policy,
Unauthenticated news.

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HDFC ASSET MANAGEMENT COMPANY LIMITED

2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the
entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year,
Monetary
Name of the
regulatory/
Has an appeal been
Type NGRBC Principle enforcement Amount (In INR) Brief of the Case
preferred? (Yes/No)
agencies/ judicial
institutions
Penalty/ Fine
Settlement NIL
Compounding fee

Non-Monetary
Name of the regulatory/
Has an appeal been
Type NGRBC Principle enforcement agencies/ Brief of the Case
preferred? (Yes/No)
judicial institutions
Imprisonment
NIL
Punishment

3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or
non-monetary action has been appealed.
Case Details Name of the regulatory/ enforcement agencies/ judicial institutions
Not Applicable

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a
web link to the policy.
Yes. Additionally, anti-corruption and anti-bribery guidelines are part of employee manual. The Company is committed
to conduct business by following the highest ethical standards. All forms of bribery and corruption are prohibited. The
Company conducts its business in adherence to all statutory and regulatory requirements.

5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement
agency for the charges of bribery/ corruption:
Particulars FY 23-24 FY 22-23
Directors NIL NIL
KMPs NIL NIL
Employees NIL NIL

6. Details of complaints with regard to conflict of interest:

FY 23-24 FY 22-23
Particulars
Number Remarks Number Remarks
Number of complaints received in relation to issues of NIL - NIL -
Conflict of Interest of the Directors
Number of complaints received in relation to issues of NIL - NIL -
Conflict of Interest of the KMPs

7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by
regulators/ law enforcement agencies/ judicial institutions on cases of corruption and conflicts of interest.
NIL for FY 2023-24

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8. Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured) in the following
format:
Particulars FY 23-24 FY 22-23
Number of days of accounts payables* 49 49
* Number of days of accounts payable is calculated based on average accounts payable which majorly comprises of unbilled dues.

9. Open-ness of business
Provide details of concentration of purchases and sales with trading houses, dealers, and related parties along-with loans
and advances & investments, with related parties, in the following format:

Parameter Metrics FY 23-24 FY 22-23

Concentration of Purchases* a. Purchases from trading houses as % of total purchases - -
b. Number of trading houses where purchases are made from - -
c. Purchases from top 10 trading houses as % of total - -
purchases from trading houses
Concentration of Sales a. Sales to dealers / distributors as % of total sales - -
b. Number of dealers / distributors to whom sales are made - -
c. Sales to top 10 dealers / distributors as % of total sales to - -
dealers / distributors
Share of RPTs in a. Purchases (Purchases with related parties / Total Purchases) 8.19% 7.56%
b. Sales (Sales to related parties / Total Sales) - -
c. Loans & advances (Loans & advances given to related - -
parties / Total loans & advances)
d. Investments (Investments in related parties / Total 0.85% 0.09%
Investments made)^
*HDFC AMC is into financial service business and has not directly procured any goods or services through trading house.
Interpretation of Trading House as per guidance given under the Income Tax Act, 1961, refers to a business that primarily engages in trading and
export of various goods or products. Such businesses often play a crucial role in facilitating international trade by sourcing, purchasing, and selling
goods to international markets.’
^Investments consist of gross investments made during the year.

Leadership Indicators
1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year
%age of value chain partners covered (by value
Total number of awareness programmes held Topics/ principles covered under the training of business done with such partners) under the
awareness programmes
1,336 Customer first, spreading financial literacy, 74,826 participants
other technical & Soft-skills, programs

2. Does the entity have processes in place to avoid/ manage conflict of interest involving members of the Board/KMPs?
(Yes/No) If yes, provide details of the same.
The Company has Conflict of Interest Policy (CoI) policy to avoid conflict of interest involving Board and KMP. Further,
pursuant to SEBI Listing Regulations senior management confirms to the Board of Directors that there were no material,
financial and commercial transactions, where they have personal interest that may have a potential conflict with the interest
of the Company at large.

The Company has CoI policy to enable compliance with the provisions of the acts and regulations applicable to its business.

The Company has Conflict Resolution Committee (CRC), which includes the Managing Director, Chief Compliance Officer,
Company Secretary and the respective Head of Departments based on the subject matter of the Conflict of Interest for
managing and dealing with CoI situations within the Company.

The Company has also formulated the policy on related party transactions for providing guidelines in relation to identification
of related parties, materiality of Related Party Transaction(s) and on dealing with transactions with related party.

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HDFC ASSET MANAGEMENT COMPANY LIMITED

Principle 2: Businesses should provide goods and services in a manner that is sustainable and safe
Essential Indicators
1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental
and social impacts of product and processes to total R&D and capex investments made by the entity, respectively.
Particulars FY 23-24 FY 22-23 Details of improvements in environmental and social impacts
R&D
Refer note below
Capex

Note: The Company is primarily into financial services, 4. Whether Extended Producer Responsibility (EPR) is
hence the relevance of the above is largely restricted applicable to the entity’s activities (Yes / No). If yes,
to capital expenditure towards information technology. whether the waste collection plan is in line with the
Capital expenditure incurred towards IT hardware and Extended Producer Responsibility (EPR) plan submitted
software (excluding Right to Use assets) was 50.06% to Pollution Control Boards? If not, provide steps taken
of total capital expenditure investments in FY 23-24 vs to address the same.
62.21% in FY 22-23. The Company intends to continue No. The Company does not have any physical products as
identifying and acting on opportunities to reduce its part of its offerings.
impact on the environment.
Leadership Indicators
2. a. Does the entity have procedures in place for
1. Has the entity conducted Life Cycle Perspective
sustainable sourcing? (Yes/No)
/ Assessments (LCA) for any of its products (for
As the Company is in the business of providing a wide manufacturing industry) or for its services (for service
range of savings and investment products, consumption industry)? If yes, provide details in the following
of resources is limited to running of operations. The format?
Company follows sustainable sourcing practices wherever
The primary business activity of the Company is
feasible, including but not limited to green standard
asset management. It is a service-oriented business
compliant hardware, Environmental Management System
primarily involved in managing the investment of retail &
ISO 14001:2015 certified data centres, inverter AC’s,
institutional investors across asset classes and servicing
recycled paper diaries, energy efficient fittings, glass
their requirements across the life cycle of their journey
bottles, among others.
with the Company.

2. b. I f yes, what percentage of inputs were sourced The investment life cycle is a sequential process ranging
sustainably? from sourcing clients to onboarding them, providing
Refer response to point 2.a. investment solutions and hassle-free customer service to
the clients during their journey with us. A brief description
3. Describe the processes in place to safely reclaim your of the client life cycle is provided below:
products for reusing, recycling and disposing at the end
of life, for (a) Plastics (including packaging) (b) E-waste Sourcing:
(c) Hazardous waste and (d) Other waste Clients can invest in our schemes either directly or
Given the nature of the business, the Company has limited through the distribution partners. They can transact
scope on these parameters. However, the Company through the physical mode or through our electronic
realises that there is a pressing need to manage waste in portal. A client can submit his/her physical applications
an eco-friendly manner. To achieve these objectives, the at multiple touch points like our investor service centers,
Company encourages reuse/recycle wherever possible. Registrar and Transfer Agent (RTA) i.e. CAMS branches or
The Company engages with certified e-waste handler for to the distribution partners. The Company works with a
the disposal of e-waste. diverse set of distribution partners and currently has over
85,000 empaneled distributors which include mutual fund

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distributors, national distributors, banks, investment requirements like FATCA/CRS, PAN Aadhaar linking etc.
advisers and fintech firms. While we continue to source from time to time.
business across channels, the focus is on driving the
adoption of digital platforms. The Company has witnessed Grievance Redressal Mechanism:
significant growth in electronic transactions vis-à- As part of the Grievance Redressal Policy, the Company has
vis physical paper-based transactions. The Company a Complaint Management Platform to record and redress
provides end-to-end digital onboarding solutions for grievances/feedback from customers, which helps in
investors and its distributors. The Company has enabled ensuring standard operating procedures and enhanced
its partners with both tools and educational webinars on service standards. The Corporate Client Service (CCS)
digital medium and it also runs extensive education series team oversees and ensures that customer grievances are
for its partners on how to build digital presence. addressed in a timely manner and that responses sent are
appropriate and meets the requirements of customers.
Onboarding:
As a first step, to begin transactions with us, clients have to 2. If there are any significant social or environmental
be KYC compliant. Clients have access to multiple options concerns and/or risks arising from production or
where they can complete their KYC while providing their disposal of your products / services, as identified in the
investment applications. The Company has tied up with Life Cycle Perspective / Assessments (LCA) or through
KYC Registration Agencies (KRA) to update and access any other means, briefly describe the same along-with
client KYC information which provides a seamless action taken to mitigate the same.
experience for the customer. The Company uses CKYCR, Not applicable
which is a government authorized registry where it can
access as well as update customers’ KYC records. With 3. Percentage of recycled or reused input material
Aadhaar based e-KYC service, the Company has provided to total material (by value) used in production (for
investors with the option to complete KYC online and manufacturing industry) or providing services (for
start investing directly through digital channels. service industry).
Not applicable
Transactions:
The RTA, CAMS, forms the backbone for transaction 4. Of the products and packaging reclaimed at end of
processing, assisted by an able front office team at life of products, amount (in metric tonnes) reused,
the head office/branches. Investment in cutting-edge recycled, and safely disposed, as per the following
technology has enabled increased scale and speed in format.
processing transactions and digital fetch tools help in
Not applicable, as the Company do not offer any
faster authentication of supporting documentation.
physical products.
Transaction bot and WhatsApp have now been added to
provide instant access for transactions.
5. Reclaimed products and their packaging materials
(as percentage of products sold) for each product
Service:
category.
The Company supports service requests from clients
Not applicable, as the Company do not offer any
such as change of bank account details, nominee
physical products.
updating, change of tax status etc. both physically as well
as electronically throughout the life cycle of the client. We
also proactively send reminders to the clients to update
contact details, and conform to changing regulatory

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HDFC ASSET MANAGEMENT COMPANY LIMITED

Principle 3: Businesses should respect and promote the well-being of all employees, including those in their value chains
Essential Indicators
1. a. Details of measures for the well-being of employees:
Health Life/Accident Maternity Paternity Day Care
Insurance Insurance Benefits Benefits Facilities*
Category Total (A)
Number Number Number Number Number
% (B / A) % (C / A) % (D / A) % (E / A) % (F / A)
(B) (C) (D) (E) (F)
Permanent Employees
Male 1,090 1,090 100% 1,090 100% NA NA 1,090 100% NA NA
Female 419 419 100% 419 100% 419 100% NA NA NA NA
Total 1,509 1,509 100% 1,509 100% 419 100% 1,090 100% NA NA
Other than Permanent Employees^
Male 285 285 100% 285 100% NA NA NA NA NA NA
Female 256 256 100% 256 100% 256 100% NA NA NA NA
Total 541 541 100% 541 100% 256 100% NA NA NA NA
* There are no day-care facilities on our premises. However, we can make necessary provisions for those who require such facilities.
^ Wellbeing measures for other than permanent employees are taken care by the respective value chain partners.

1. b. Details of measures for the well-being of workers:

Not applicable.

1. c. Spending on measures towards well-being of employees and workers (including permanent and other than permanent)
in the following format
Particulars FY 23-24 FY 22-23
Cost incurred on well-being measures as a % of total revenue of the company* 0.18% 0.16%
* The above-mentioned disclosure excludes spends relating to other than permanent employees. The wellbeing measures for other than
permanent employees are managed by respective value chain partners.

2. Details of retirement benefits for current and previous financial year

FY 23-24 FY 22-23
Deducted and Deducted and
Benefits No. of employees No. of employees
deposited with deposited with
covered as a % of covered as a % of
the authority the authority
total employees total employees
(Y/N/N.A.) (Y/N/N.A.)
PF 100% Y 100% Y
Gratuity 100% N.A. 100% N.A.
ESI 100% N.A. 100% N.A.
NPS* 100% 9%* 100% 10% *
* Availed

3. Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of
the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.
Most of our offices are located in commercial premises which are on the ground floor or have elevators and infrastructure
for differently abled persons.

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide
a web-link to the policy.
Yes, conspicuously displayed at all business locations in accordance with the provisions of the Act.

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5. Return to work and retention rates of permanent employees and workers that took parental leave.
Permanent Employees
Gender Return to Work Retention
rate in % rate in %
Male 100% NA*
Female 100% 80%
Total 100% 80%
*Paternity leave was introduced in April 2023 hence a 12-month period has not passed since returning from Paternity Leave

6. Is there a mechanism available to receive and redress grievances for the following categories of employees and
worker? If yes, give details of the mechanism in brief.
Particulars Yes/No (If Yes, then give details of the mechanism in brief)
Permanent Employees
Yes
Other than Permanent Employees

The Company has always followed an open door policy, wherein any employee irrespective of hierarchy have access to the
business heads, HR, Legal & Compliance, senior management or other such members.

The Company has adopted a third-party web-based reporting tool which provides a secure and confidential platform
to report genuine concerns and can be accessed by all employees/ Directors/ stakeholders for lodging a complaint or
expressing genuine concerns.

In addition to that, a Whistle-Blower Policy has been formulated for employees and Directors to report concerns about
unethical behaviour, actual or suspected fraud or violation of the Company’s Code of Business Conduct and Ethics Policy.

The Company has zero tolerance for sexual harassment at the workplace and is compliant with provisions relating to the
constitution of Internal Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013. The Company also has various online training modules and awareness programmes which sensitise
its employees on such issues.

The Company is committed to redressing every grievance of its employees in a fair and just manner. The Company provides
various channels of grievance redressal and safeguards employees against any form of victimisation.

7. Membership of employees and worker in association(s) or Unions recognised by the listed entity.
FY 23-24 FY 22-23
No. of No. of
employees employees
Total Total
/ workers in / workers in
Category employees employees
respective respective
/ workers in % (B / A) / workers in % (D / C)
category, who category, who
respective respective
are part of are part of
category (A) category (C)
association(s) association(s)
or Union (B) or Union (D)
Total Permanent Employees
- Male Employees do not have any representative union or association.
- Female

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HDFC ASSET MANAGEMENT COMPANY LIMITED

8. Details of training given to employees

FY 23-24 FY 22-23
On Health and On Skill On Health and On Skill
Category Total Total
Safety Measures Upgradation Safety Measures Upgradation
(A) (D)
No. (B) % (B / A) No. (C) % (C / A) No. (E) % (E/ D) No. (F) % (F / D)
Male 1,090 1,088 99.8% 1,090 100% 924 870 94.2% 853 92.3%
Female 419 412 98.3% 417 99.5% 357 338 94.7% 331 92.7%
Total 1,509 1,500 99.4% 1,507 99.9% 1,281 1,208 94.3% 1,184 92.4%

9. Details of performance and career development reviews of employees

FY 23-24 FY 22-23
Category*
Total (A) No. (B) % (B / A) Total (C) No. (D) % (D / C)
Employees
Male 1,090 1,044 95.8% 924 864 93.5%
Female 419 396 94.5% 357 336 94.1%
Total 1,509 1,440 95.4% 1,281 1,200 93.7%
*Note: All eligible employees have undergone the performance appraisal review process.

Remuneration for employees is as per the Nomination & Remuneration Policy of the Company. The criteria for the evaluation
of remuneration for all employees is based on an appraisal process which includes a mid-year review and annual appraisal of
performance. The increase in remuneration is factored after compensation benchmarking, individual performance and overall
company performance.

10. Health and Safety management system:

a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes,
the coverage of such system?
Employee well-being continues to be a priority of the Company. The company has tied up with health care service provider
which offers 24x7 online medical consultations for employees and their family members. Employees have access to online
fitness programs and weight loss programs. Regular wellness and wellbeing webinars covering physical, mental and
emotional health are conducted.

Periodic trainings on fire safety and fire-fighting equipment are provided along with evacuation drills. The Company replaced
Biometric access control with Face Reader access at HO.

b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity?
While this is not directly applicable given the nature of business, we conduct regular workplace inspections to mitigate any
potential hazards.

c. Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks. (Y/N)
This is not directly applicable given the nature of business. However, the organization extends 24x7 online medical
consultation facilities for employees. In case of an unforeseen incident, the organization covers employees through
the mediclaim cover extended to employees. In an extreme case of a fatality occurring due to a work-related hazard the
organization has covered all employees under life and personal accident insurance.

d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services? (Yes/ No)
The Company provides facilities like medical consultations and regular health check-ups. The Company has partnered
with a health care service provider, which offers 24x7 online medical consultations, fitness and well-being programmes.
Additionally, the Company organises regular health check-up for its employees. The Company also provides its employees
with group term life and personal accident cover in addition to medical insurance.

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11. Details of safety related incidents, in the following format:

Safety Incidents/Numbers Category FY 23-24 FY 22-23
Lost Time Injury Frequency Rate (LTIFR) (per one million-person hours worked)
Total recordable work-related injuries
Employees NIL NIL
No. of fatalities
High consequence work-related injury or ill-health (excluding fatalities)

12. Describe the measures taken by the entity to ensure a safe and healthy work place.
Employee well-being and psychological safety continue to be a priority for the Company. The Company has tied up with
health care service provider which offers 24x7 online medical consultations for employees and their family members.
Employees have access to online fitness programs and weight loss programs. Regular wellness and wellbeing webinars
covering physical, mental and emotional health are conducted. The Company also provides its employees with group term
life and personal accident cover in addition to medical insurance.

At the time of joining all employees undergo a comprehensive health screening. The organization also organizes regular
complimentary health screening for employees.

The Company engages the services of housekeeping agencies to ensure the work place is clean and hygienic. In fact,
ensuring good hygiene is documented as a part of the role of each Branch Manager. Fire drills and quality assurance audits are
conducted in the office premises to ensure the maintenance of safety standards. Indoor air quality treatment is carried out to
mitigate biological contamination to ensure better and hygienic indoor environment. This ensures preventive maintenance
against any air and surface contamination. To maintain a safe workplace the Company has a zero-tolerance policy to any
form of harassment. The Company has implemented the following policies and mechanisms to promote a safe workplace
–

• Policy on prevention of sexual harassment of women at the workplace (Prevention, Prohibition and Redressal) Act 2013,

• Equal Opportunity Policy framed pursuant to Rights of Persons with Disabilities Act (RPWD)

• Whistle Blower mechanism

• Grievance Redressal mechanism

13. Number of complaints on the following made by employees and workers

FY 23-24 FY 22-23
Pending Pending
Type Filed during resolution Filed during resolution
Remarks Remarks
the year at the end the year at the end
of year of year
Working Conditions NIL NIL - NIL NIL -
Health & Safety NIL NIL - NIL NIL -

14. Assessments for the year

Type % of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Health and safety practices 100%*
Working Conditions These parameters are currently not explicitly assessed or measured
*The Company has entered into preventive periodic maintenance contracts which includes firefighting equipment. The Company has also
appointed quality assurance auditors.

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on
significant risks / concerns arising from assessments of Health & Safety practices and working conditions.
Not Applicable.

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HDFC ASSET MANAGEMENT COMPANY LIMITED

Leadership Indicators
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B)
Workers (Y/N)
Yes, the Company provides its employees with group term life cover, personal accident cover, future service gratuity in
addition to medical insurance. Benefits like provident fund, gratuity, leave encashment etc., are settled on a priority basis.
Our Gratuity offerings are significantly better than statutory prescribed limits. The Company has a policy for mid to junior
level staff wherein company extends monetary support to families of deceased employees and employment opportunity
to meritorious family members.

2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by
the value chain partners.
The Company has made it a contractual obligation for its value chain partners to fully deliver on their statutory requirements.
We have also appointed an independent auditor to audit vendors with respect to compliance with all statutory obligations.

3. Provide the number of employees / workers having suffered high consequence work related injury / ill-health /
fatalities (as reported in Q11 of Essential Indicators above), who have been are rehabilitated and placed in suitable
employment or whose family members have been placed in suitable employment:
No. of employees that are
rehabilitated and placed in suitable
Total no. of affected employees employment or whose family
Category members have been placed in suitable
employment
FY 23-24 FY 22-23 FY 23-24 FY 22-23
Employees - - NA NA

4. Does the entity provide transition assistance programs to facilitate continued employability and the management of
career endings resulting from retirement or termination of employment? (Yes/ No)
The Company has not undertaken any retrenchment of employees owing to business exigencies or employees not having
the requisite skills to do the required job. In line with the spirit of applicable law, as and when such step is required to be
taken due to business environment or force majeure circumstances, the Company will actively consider undertaking such
activities for outgoing employees.

The Company believes in hiring well qualified talent on merit and continuously upskills the work force to align with the
changing business environment. In light of this, the need for this transition assistance programmes is not envisaged currently.

5. Details on assessment of value chain partners:

Type % of value chain partners (by value of business done with such partners) that were assessed
Health and safety practices These parameters are currently not assessed.
Working Conditions

6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from
assessments of health and safety practices and working conditions of value chain partners.
Not applicable

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PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders
Essential Indicators
1. Describe the processes for identifying key stakeholder groups of the entity.
The Company believes healthy stakeholder relationships are key to long-term value creation. Any individual, group or
institution that adds value to the Company or who are/ could be impacted are identified as a key stakeholder.

2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.
Whether
Channels of communication (Email, SMS, Frequency of engagement
identified as Purpose and scope of engagement
Newspaper, Pamphlets, Advertisement, (Annually/ Half yearly/
Key Stakeholder Vulnerable & including key topics and concerns
Community Meetings, Notice Board, Quarterly / others – please
Marginalised raised during such engagement
Website), Other specify)
Group (Yes/No)
Customers No • Website: https://www.hdfcfund.com Ongoing and need based • Product and scheme
• Call Center information
• Mail ID: [email protected] • Service queries
• HDFC MF investor App • Enhanced Reach
• WhatsApp • Education and awareness
• Chat Bot programs
• Satisfaction surveys • Regulatory updates and
compliance
• HDFC MF Branches
• New fund launches
• HDFC MF empaneled distributors.
Distribution No • Websites Ongoing and need based • Product and scheme
partners • Call Center information
• Mail ID: [email protected] • Enhanced Reach
[email protected] • Service queries
• CONNEKT App • Trainings and awareness
• HDFC MF partners App programs
• WhatsApp • Regulatory updates and
compliance
• Chat Bot
• New fund launches
• Satisfaction surveys
• HDFC MF Branches
Employees No • One on One Meetings Ongoing and need based • Rewards and recognition
• Emails • Sense of ownership and
• CEO town halls alignment to the vision & mission
• Team meetings • Training and career
• Leadership connect development
• Engagement surveys • Health, safety and wellbeing
• Organisational developments
• Performance appraisal
• Awareness initiatives and
engagement
Shareholders No Quarterly earnings calls, audio At least quarterly and To stay abreast of developments
recording of earnings call, investor need based in the Company, performance of
presentation, Annual General the Company and the sector.
Meeting, intimation to stock Address concerns/grievances
exchanges, annual/
quarterly financials and investor
meetings / conferences, press
release, annual reports, email, SMS,
newspaper, advertisement,
notices, website, transcripts etc.
Regulatory No Emails, one-on-one meetings, Need based Discussions with regard to various
Bodies conference calls, video conferencing, approvals, circulars, guidelines,
websites suggestions, amendments, etc

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HDFC ASSET MANAGEMENT COMPANY LIMITED

Whether
Channels of communication (Email, SMS, Frequency of engagement
identified as Purpose and scope of engagement
Newspaper, Pamphlets, Advertisement, (Annually/ Half yearly/
Key Stakeholder Vulnerable & including key topics and concerns
Community Meetings, Notice Board, Quarterly / others – please
Marginalised raised during such engagement
Website), Other specify)
Group (Yes/No)
AMFI No Emails, physical meetings, conference Ongoing & Need based Discussions with regard to various
calls, video conferencing, websites guidelines/investor education and
reporting
Communities & Yes Emails, physical meetings, and Need based Monitoring & Implementing the
Implementing conference calls CSR projects and activities
Agencies/
NGOS
Registrar and No Physical meetings, emails and Ongoing and need based Ensure smooth operations and
Transfer Agent other digital platforms seamless client experience
Vendors, No Physical meetings, Digital platforms, Ongoing and need based Product & Service quality and
Bankers, emails support, contract commercial
Custodians and and technical terms & conditions,
others in value custodial services, statutory
chain compliances
Media No Newspaper, advertisement, email, Need based To stay abreast on the
annual reports, website, press release developments of the Company
and other meetings

Leadership Indicators stakeholders on these topics were incorporated into

1. Provide the processes for consultation between policies and activities of the entity.
stakeholders and the Board on economic, Customer complaints / grievances / suggestions are
environmental, and social topics or if consultation is reviewed for a root cause analysis, which also gives an
delegated, how is feedback from such consultations opportunity to the company to improve its services.
provided to the Board. The Company has identified key ESG focus areas
The Company encourages constant and proactive through materiality assessment exercise, conducted in
engagement with its stakeholders to better communicate consultation with internal stakeholders.
its strategies and performance. There are various platforms
through which the company provides an opportunity for 3. Provide details of instances of engagement with, and
stakeholders to interact with the Board/Management, viz. actions taken to, address the concerns of vulnerable/
Annual General Meeting, quarterly earnings conference calls marginalised stakeholder groups.
on financials results, designated e-mail ids. The Company has As an investment manager, with the aim to also serve
ESG and Corporate Social Responsibility (CSR) Committee the bottom-of the-pyramid customers, the Company
of the Board for fulfilling responsibilities with regard to, reduced the minimum subscription amount for digital
including but not limited to environmental and social topics. SIP & Lumpsum transactions to H 100. The Company
The Company also has Stakeholders Relationship and Unit has also initiated multilingual options for some of its
holder Protection Committee (formerly Stakeholders email communications. The Company extended its
Relationship Committee) of the Board which is broadly #BarniSeAzadi campaign -first launched in 2021 – to
responsible for reviewing the activities carried out by the continue promoting financial literacy.
investor service centres and their adherence to service
The Company introduced the HDFC Charity Fund for
standards, reviewing the steps taken by the Company to
Cancer Cure, a unique mutual fund scheme which allows
redress the grievances of the investors amongst others.
investors to contribute towards cancer care.
The Board is kept well-informed on various developments
and feedback on the same is sought from the Directors/ Majority of the CSR projects undertaken by the Company
Senior Management. are aimed at benefitting the vulnerable / marginalised
sections of the society. The details of the Company’s CSR
2. Whether stakeholder consultation is used to support initiatives project/programmes and activities are available
the identification and management of environmental, in the Annual report. The CSR Policy of the Company is
and social topics (Yes / No). If so, provide details uploaded on its website and can be viewed at https://www.
of instances as to how the inputs received from hdfcfund.com/about-us/corporate-profile/csr

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Principle 5: Businesses should respect and promote human rights

Essential Indicators
1. Employees and workers who have been provided training on human rights issues and policy (ies) of the Company:
FY 23-24 FY 22-23
No. of No. of
Category employees / employees /
Total (A) % (B / A) Total (C) % (D / C)
workers workers
covered (B) covered (D)
Permanent 1,509 1,509 100% 1,281 1,281 100%
Other than permanent 541 541 100% 494 494 100%
Total Employees 2,050 2,050 100% 1,775 1,775 100%

The Company promotes a culture of fairness and inclusion. It is the policy and practice of the Company to provide equal
employment opportunity to all persons. The Company’s value system encourages dignity of labour. Its policies and
managerial framework ensure that all fundamental and human rights of employees are fully protected.

Policies and processes like POSH, Whistleblower, Grievance Redressal, Equal Employment Opportunity, Code of Conduct
etc. are in place to protect human rights of employees. The Company policies are well defined and are educated, trained
and disseminated through the electronic medium and employees are educated, trained on the same.

2. Details of minimum wages paid to employees and workers:

FY 23-24 FY 22-23

Total Equal to Minimum More than Total Equal to Minimum More than
Category
(A) Wage Minimum Wage (D) Wage Minimum Wage
No. (B) % (B / A) No. (C) % (C / A No. (E) % (E / D) No. (F) % (F / D
Permanent 1,509 - - 1,509 100% 1,281 - - 1,281 100%
Male 1,090 - - 1,090 100% 924 - - 924 100%
Female 419 - - 419 100% 357 - - 357 100%
Other than Permanent 541 - - 541 100% 494 - - 494 100%
Male 285 - - 285 100% 259 - - 259 100%
Female 256 - - 256 100% 235 - - 235 100%

3. Details of remuneration/salary/wages
a. Median remuneration/ wages:
Male Female
Median Median
remuneration/ remuneration/
Category salary/ salary/
Number Number
wages of wages of
respective respective
category category
Board of Directors 6 50,50,000 2 39,00,000
Key Managerial Personnel^ 2 5,11,41,979 1 1,05,32,824
Employees other than BoD and KMP* 800 12,17,857 302 8,39,733
^ Includes MD, CFO and CS
* Includes only employees who have worked for the entire 12-month period

Note: - Expenses towards gratuity and leave encashment provisions are determined actuarially on an overall basis at the
end of each year and accordingly, have not been considered in the above information. Perquisite value of stock options
is excluded.

Gaps in median salary between genders is due to different proportion of men & women across experience levels and grades.

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HDFC ASSET MANAGEMENT COMPANY LIMITED

b. Gross wages paid to females as % of total wages paid by the entity, in the following format:
Particulars FY 23 - 24 FY 22 - 23
Gross wages paid to females as % of total wages 21.38% 20.12%

4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or
contributed to by the business? (Yes/No)
Yes, there are various committees responsible for human rights impacts and issues. For instance, the Company has zero
tolerance for sexual harassment at workplace and is compliant with provisions relating to the constitution of Internal
Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The
Company has appointed a Nodal Officer who acts as a single point contact related to human rights issues.

5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
Respect for human rights is considered as one of the fundamental and core values of the Company. The Company strives
to support, protect and promote human rights to ensure fair and ethical business and employment practices are followed.
There are committees and policies formed to handle grievances and complaints related to human rights issues and the
details are placed on the HRMS of the Company.

The Company has zero tolerance towards and prohibits all forms of child labour, slavery, forced labour, physical, sexual,
psychological or verbal abuse.

6. Number of complaints on the following made by employees and workers:

FY 23-24 FY 22-23
Pending Pending
Particulars Filed during resolution Filed during resolution
Remarks Remarks
the year at the end of the year at the end of
year year
Sexual Harassment 0 0 - 0 0 -
Discrimination at Workplace 3 0 - 0 0 -
Child Labour 0 0 - 0 0 -
Forced Labor/Involuntary Labour 0 0 - 0 0 -
Wages 0 0 - 0 0 -
Other Human Rights Related Issues 0 0 - 0 0 -

7. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013, in the following format:
Particulars FY 23-24 FY 22-23
Total Complaints reported under Sexual Harassment on of Women at Workplace (Prevention, - -
Prohibition and Redressal) Act, 2013 (POSH)
Complaints on POSH as a % of female employees / workers - -
Complaints on POSH upheld - -

8. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
The Company is committed to maintaining safe and harmonious business environment and workplace for everyone,
irrespective of the ethnicity, region, sexual orientation, race, caste, gender, disability, work, designation and such other
parameters. The Company ensures sensitisation to important social factors like diversity and inclusion, workplace practices
and prohibition of economic, racial or physical inequalities. The Company strives to support, protect and promote human
rights to ensure fair and ethical business and employment practices are followed.

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There are committees and policies formed to handle grievances and complaints related to human rights issues viz Internal
Committee under the Sexual Harassment of Women at Workplace, Whistle Blower Policy, etc and the details are placed on
the intranet of the Company.

For instance, 6 (six) Internal Committees (IC) for different zones were constituted in accordance with the Sexual Harassment
of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 with women employees being a majority and an
external member. The Policy, IC Members’ details and the penal consequences of violating the said Act/ Policy are displayed
at all offices/ ISCs and on the intranet of the Company. Regular employee awareness sessions are conducted to generate
awareness about the policy, reporting mechanism and prevention of sexual harassment at the workplace. The Company
also has a well-defined Whistle Blower policy which ensures confidentiality and protection from any form of retaliation.

9. Do human rights requirements form part of your business agreements and contracts? (Yes/No)
Yes, in certain business agreements and contracts where relevant.

10. Assessments for the year

Particulars % of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Child Labour 100%
Forced Labour/Involuntary Labour -
Sexual Harassment 100%
Discrimination at workplace 100%
Wages 100%
Others -

11. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 10 above.
No significant risk was identified as an outcome of the above-mentioned assessments/audits.

Leadership Indicators
1. Details of a business process being modified / introduced as a result of addressing human rights grievances/
complaints.
The Company creates awareness about the Code of Conduct/policies to sensitise its employees. Employees of the
organisation undergo various training programmes and some of the modules are mandatory for the new recruits which
cover guidelines on Prevention of Sexual Harassment (POSH), information security, etc.

The Company strives to support, protect and promote human rights to ensure fair and ethical business and employment
practices are followed, for instance 6 (six) Internal Committees (IC) for different zones were constituted in accordance with
the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, with women employees
being a majority and an external member. The Policy, IC Members’ details and the penal consequences of violating the said
Act/ Policy are displayed at all offices/ ISCs and on the intranet of the Company.

2. Details of the scope and coverage of any Human rights due-diligence conducted.
Refer response no 8 of essential indicator & 1 of leadership indicator.

3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of
Persons with Disabilities Act, 2016?
Most of our offices are located in commercial premises which are on the ground floor or have elevators and infrastructure
for differently abled persons.

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HDFC ASSET MANAGEMENT COMPANY LIMITED

4. Details on assessment of value chain partners:

Particulars % of value chain partners (by value of business done with such partners) that were assessed
Sexual Harassment
Discrimination at Workplace
Child Labour
These parameters are currently not assessed
Forced Labour/Involuntary Labour
Wages
Other Human Rights Related Issues

5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 4 above.
Not applicable in view of point no 4.

Principle 6: Businesses should respect and make efforts to protect and restore the environment
Essential Indicators
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:
Parameter FY 23-24 FY 22-23
From renewable sources
Total electricity consumption in GJ (A) - -
Energy fuel consumption in GJ (B) - -
Energy consumption through other sources in GJ (C) - -
Total energy consumed from renewable sources in GJ (A+B+C) - -
From non – renewable sources
Total electricity consumption in GJ (D) 14,209 13,384
Total fuel consumption in GJ (E) 3,651 1,863
Energy consumption through other sources in GJ (F) - -
Total energy consumed from non – renewable sources in GJ (D+E+F) 17,860 15,247
Total energy consumed in GJ (A+B+C+D+E+F) 17,860 15,247
Energy intensity per rupee of turnover (GJ/ INR in Cr.) 6.91 7.04
(Total energy consumed/ Revenue from operations)
Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (GJ/ INR in Cr.)^ 158.11 161.00
(Total energy consumed / Revenue from operations adjusted for PPP)
Energy intensity in terms of physical output* - -
*HDFC AMC being in financial services business, energy intensity in terms of physical output is not applicable to the Company.
^The revenue from operations has been adjusted for PPP based on the PPP conversion factor published by World Bank.

Note: if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name
of the external agency

Yes. Independent assurance has been carried out by B S R & Co. LLP

2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve
and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme
have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.
Not applicable

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3. Provide details of the following disclosures related to water:

Parameter FY 23-24 FY 22-23
Water withdrawal by source (in kilolitres)
(i) Surface water - -
(ii) Groundwater - -
(iii) Third party water 7,184 6,387
(iv) Seawater / desalinated water - -
(v) Others - -
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 7,184 6,387
Total volume of water consumption (in kilolitres) 7,184 6,387
Water intensity per rupee of turnover (KL / INR in crores) (Total water consumption / Revenue 2.78 2.95
from operations)
Water intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (KL / INR in crores)^ 63.60 67.44
(Total Water Consumption / Revenue from Operations adjusted for PPP)
Water intensity in terms of physical output* - -
*HDFC AMC being in financial services business, water intensity in terms of physical output is not applicable to the Company.
^The revenue from operations has been adjusted for PPP based on the PPP conversion factor published by World Bank.

The Company, being an asset management company, has various branches across the country. The water consumption
is predominantly for human consumption. All offices/branches of the Company are operated from leased premises. The
Company has water meters in two of its significant leased premises from which data for water withdrawals/consumption
is obtained based on the details provided periodically by lessor to the Company. For other leased premises (branches) the
withdrawals/consumption values (litres per person per day) have been calculated by extrapolating the actual data for the
withdrawals/consumption of FY 2023-2024 of a representative premise for which actual withdrawals/consumption data
is available.

Note: If any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name
of the external agency.

Yes. Independent assurance has been carried out by BSR & Co. LLP.

4. Provide the following details related for water discharge:

Parameter FY 23-24 FY 22-23
Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface Water
- No treatment - -
- With treatment – please specify level of treatment - -
(ii) To Groundwater
- No treatment - -
- With treatment – please specify level of treatment - -
(iii) To Seawater
- No treatment - -
- With treatment – please specify level of treatment - -
(iv) Sent to third parties
- No treatment - -
- With treatment – please specify level of treatment - -
(v) Others
- No treatment - -
- With treatment – please specify level of treatment - -
Total water discharged (in kilolitres) - -

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Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.

Yes. Independent assurance has been carried out by B S R & Co. LLP

5. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.
As the Company’s usage of water is restricted to human consumption purposes only, the Company has not implemented
a mechanism for zero liquid discharge. However, the Company has taken various initiatives to consume water judiciously
like sensors taps at its head office, where water consumption is high and aerator taps in most of the offices.

6. Please provide details of air emissions (other than GHG emissions) by the entity
Please specify
Parameter FY 23-24 FY 22-23
the unit
NOx
SOx
Particulate matter (PM) The Company uses DG sets only during power outages and
hence the air emissions of pollutants (other than GHGs) are
Persistent organic pollutants (POP) not material.
Volatile organic compounds (VOC)
Hazardous air pollutants (HAP)

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.

Not applicable

7. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity:
Parameter Unit FY 23-24 FY 22-23
Total Scope 1 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, tCO₂e 267 135
PFCs, SF6, NF3, if available)
Total Scope 2 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, tCO₂e 2,826 2,497
PFCs, SF6, NF3, if available)
Total Scope 1 and Scope 2 emission intensity per rupee of turnover tCO₂e/ INR in Cr. 1.20 1.21
(Total Scope 1 and Scope 2 GHG emissions / Revenue from operations)
Total Scope 1 and Scope 2 emission intensity per rupee of turnover tCO₂e/ INR in Cr. 27.38 27.79
adjusted for Purchasing Power Parity (PPP) (Total Scope 1 and Scope 2 GHG
emissions/ Revenue from operations adjusted for PPP)^
Total Scope 1 and Scope 2 emission intensity in terms of physical output* - -
*HDFC AMC being in financial services business, emission intensity in terms of physical output is not applicable to the Company.
^The revenue from operations has been adjusted for PPP based on the PPP conversion factor published by World Bank.

Scope 1 emission have been calculated using the emissions factors published by IPCC. Scope 2 emission factor is from the
CO2 Baseline Database for the Indian Power Sector published by the Central Electricity Authority of India (CEA).

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.

Yes. Independent assurance has been carried out by B S R & Co. LLP

8. Does the entity have any project related to reducing Green House Gas emission? If yes, then provide details.
The Company is shifting towards green methods of conducting business, such as shifting towards electronic transactions
by creating a robust digital infrastructure, eliminating paper reports and forms wherever possible, recycling and reducing
waste in all premises, etc. Kindly refer to initiatives mentioned in point no. 4 under leadership indicators of this principle

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9. Provide details related to waste management by the entity

Parameter FY 23-24 FY 22-23
Total waste generated & safely disposed (in metric tonnes)
Plastic waste (A) - -
E – Waste (B) 1.965 0.685
Bio – Medical Waste (C) - -
Construction and demolition waste (D) - -
Battery Waste (E) - -
Radioactive Waste (F) - -
Other Hazardous Waste. Please specify, if any (G) - -
Other Non - Hazardous waste. Please specify, if any. (H) - -
(Break up by composition i.e. by material relevant to the sector)
Total (A+B+C+D+E+F+G+H) 1.965 0.685
Waste intensity per rupee of turnover (metric tonnes / INR in crores) 0.00076 0.00032
(Total waste generated / Revenue from Operations)
Waste intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (metric tonnes / 0.01740 0.00723
INR in crores) (Total waste generated / Revenue from Operations adjusted for PPP)^
Waste Intensity in terms of physical output* - -
For each category of waste generated, total waste recovered through recycling, re – using or other recovery operations (in metric tonnes)
Category of Waste
(i) Recycled 1.965 0.685
(ii) Reused - -
(iii) Other recovery operations - -
Total 1.965 0.685
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of Waste
(i) Incineration - -
(ii) Landfilling - -
(iii) Other disposal operations - -
Total - -
*HDFC AMC being in financial services business, waste intensity in terms of physical output is not applicable to the Company.
^The revenue from operations has been adjusted for PPP based on the PPP conversion factor published by World Bank.

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.

Yes. Independent assurance has been carried out by B S R & Co. LLP

10. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted
by your company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices
adopted to manage such wastes.
Not applicable

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11. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries,
biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental
approvals / clearances are required.
Location of Whether the conditions of environmental approval / clearance are being complied
Sr. No Type of operations
operations/offices with? (Y/N) If no, the reasons thereof and corrective action taken, if any
The Company does not have any offices in ecologically sensitive areas

12. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the
current financial year
Whether conducted by
Name and brief EIA Notification Results communicated in
Date independent external agency Relevant web link
details of project. No. public domain (Yes / No)
(Yes / No)
Not Applicable

13. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water
(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and
rules thereunder (Y/N). If not, provide details of all such non-compliances.
Specify the law /
regulation / guidelines Provide details of the non- Any fines / penalties / action taken by regulatory Corrective action taken,
S. No
which was not complied compliance agencies such as pollution control boards or by courts if any
with
Not applicable

Leadership Indicators
1. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres)
Not applicable

2. Please provide details of total Scope 3 emissions and its intensity.

Parameter Unit FY 23-24 FY 22-23
Total Scope 3 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, tCO2e 12,992 16,270
PFCs, SF6, NF3, if available)
Total Scope 3 emissions per rupee of turnover tCO2e / INR in 5.03 7.51
crores

The reported Scope 3 emissions include those associated with the following GHG Protocol categories: Purchased Goods
& Services, Capital Goods, Fuel and Energy related activities (not covered in Scope 1 or Scope 2), Waste generated in
operations, Business travel and Employee commute. Scope-3 Categories: 1 and 2 have been further refined to enhance
alignment with GHG protocol guidelines. Additionally, the methodology for Category 6: Business Travel has been updated
to a distance-based approach from a spend-based approach.

3. With respect to the ecologically sensitive areas reported at Question 11 of Essential Indicators above, provide
details of significant direct and indirect impact of the entity on biodiversity in such areas along with prevention and
remediation activities.
Not applicable

4. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource
efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide details of the same
as well as outcome of such initiatives:
The Company is into service-oriented business primarily involved in the flow of information and financial transactions and
hence the Company’s carbon footprint is limited to the use of consumables, such as paper, plastic, office equipment, water
and energy. The Company has taken some initiatives as described below in view of the same.

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Details of the initiative (Web link, if any, may be

Sr. No Initiative undertaken Outcome of the initiative
provided along-with summary)
1 E-waste management E-waste processed in an 1,965 kgs of e-waste was processed in an
eco-friendly manner ecofriendly manner
2. Agile Infrastructure Ready to use infrastructure for new application Faster deployment of applications, enhanced performance
deployments & efficient use of infrastructure. The applications are
powered on as per need. The service provider data center
also uses electricity sourced from green energy providers
thereby reducing the carbon footprint
3. Nurture Nature Repurposed 250 gms of plastic for every online SIP 4,000+ Kgs of plastic waste was processed in an
in our open-ended equity-oriented and Gold/Silver environment friendly manner
schemes which were registered for a specific tenure
4. Robust digital The Company has consistently invested in 90% of transactions were executed digitally in
environment technology and built a robust digital environment FY 23-24
in the organization
5. Timers for signage Deployment of timers for signage boards Less Power Consumption
boards
6. Bio-diversity park As part of its CSR Initiatives towards Environmental Environmental sustainability
Sustainability, the company supported the
development & sustentation of “Biodiversity Park”

5. Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
Yes, the Company has devised a disaster recovery and business continuity plan with strategies like utilising branches as
alternate sites, remote working and IT disaster recovery site, which are tested on a regular basis. Critical data is replicated
every hour to both the intra-city and inter-city sites, while non-critical user data is replicated every 24 hours to the Far DR
site. All databases are replicated to DR site as per the RPO (Recovery Point Objective). These plans also cover the entire
operations of the Company, and these are periodically tested and results are placed before the Board of Directors.

6. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation
or adaptation measures have been taken by the entity in this regard?
Not applicable.

7. Percentage of value chain partners (by value of business done with such partners) that were assessed for
environmental impacts.
Not applicable.

Principle 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is
responsible and transparent
Essential Indicators
1. a. Number of affiliations with trade and industry chambers/ associations.
The Company is member of Six trade and industry chambers/associations.

b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the
entity is a member of/ affiliated to:
Sr. No Name of the trade and industry chambers/ associations Reach of trade and industry chambers/ associations (State/National)
1 Association of Mutual Funds in India (AMFI) National
2 Indian Association of Alternative Investments Funds (IAAIF) National
3 Bombay Chamber of Commerce and Industry State
4 Association of Portfolio Managers in India (“APMI”) National
5 Indian Venture and Alternate Capital Association (IVCA) National
6 United Nations-Supported Principles for Responsible International
Investment (UNPRI)

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2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity,
based on adverse orders from regulatory authorities.
Name of authority Brief of the case Corrective action taken
No material instances reported

Leadership Indicators
1. Details of public policy positions advocated by the entity:
Frequency of Review
Whether information
Method resorted for such by Board (Annually/
Sr. No Public policy advocated available in public Web link, if available
advocacy Half yearly/ Quarterly /
domain? (Yes/No)
Others – please specify)
1. The Company is the Senior leadership team Yes Ongoing & https://www.amfiindia.
member of actively participates in several Need based com/
Association of Mutual important committees of AMFI,
Fund of India (“AMFI”). covering areas like ARN, ETF,
AMFI is dedicated to Operations and Compliance,
developing the Indian Risk, Equity, Valuation, and
mutual fund industry Technology. Their involvement
by protecting the extends beyond these areas
interest of investors/ to include initiatives such as
unitholders, creating promoting financial literacy and
awareness about enhancing investor awareness.
mutual funds, Additionally, the Company has
recommending and been a strong advocate for
promoting best governance, administration,
business practices and economic, and educational
code of conduct, etc. reforms through its association
with AMFI.
2. The Company is Senior leadership team of the Yes Ongoing and Need https://www.apmiindia.
the member of Company takes active part in based org/
Association of various forums.
Portfolio Managers in
India APMI. (“APMI”).
APMI strives to
protect and promote
the interests of the
portfolio management
industry and its
investors, to define
and maintain high
professional and
ethical standards, etc.

Principle 8: Businesses should promote inclusive growth and equitable development

Essential Indicators
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the
current financial year.
Whether conducted by
Name and brief details of Results communicated in
SIA Notification No. Date of notification independent external Relevant Web link
project public domain (Yes / No)
agency (Yes / No)
Not applicable*
*Social Impact Assessments (SIA) w.r.t. Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

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2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your
entity.
Name of Project for No. of Project Affected % of PAFs covered by Amounts paid to PAFs in
Sr. No State District
which R&R is ongoing Families (PAFs) R&R the FY (In INR)
Not applicable

3. Describe the mechanisms to receive and redress grievances of the community

Not Applicable

4. Percentage of input material (inputs to total inputs by value) sourced from suppliers
Particulars FY 23-24 FY 22-23
Directly sourced from MSMEs/ small producers 18.10% 14.08%
Directly from within India 98.14% 96.85%

The disclosure for FY 2022-23 has been restated due to a change in approach and methodology to calculate purchases of
input material and this helps ensure comparability of information with the current year. The methodology for computation
of purchases has been changed basis the additional guidance available under BRSR Core framework dated 12 July 2023.

5. Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers employed
on a permanent or non-permanent / on contract basis) in the following locations, as % of total wage cost
Location FY 23-24 FY 22-23
Rural 0.07% 0.04%
Semi-urban 1.76% 1.60%
Urban 16.56% 15.19%
Metropolitan 81.61% 83.17%

Leadership Indicators
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments
(Reference: Question 1 of Essential Indicators above)
Details of negative social impact identified Corrective action taken
Not applicable in view of Question 1 of Essential Indicators

2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as
identified by government bodies
Amount spent
Sr. No State Aspirational District
(In INR)
1 Madhya Pradesh Khandwa & Vidisha 2,37,74,594
2 Maharashtra Nandurbar, Washim, Gadchiroli & Osmanabad 1,00,05,713

3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising
marginalized /vulnerable groups? (Yes/No)
(b) From which marginalised /vulnerable groups do you procure?
(c) What percentage of total procurement (by value) does it constitute?
Given the nature of the business, purchases from suppliers in the aforementioned groups are limited. During FY 2023-24,
the Company procured notebooks made of recycled paper from the Akanksha Foundation, a non-profit organization in India
that works with children from low-income communities.

For % of materials sourced from MSMEs/small producers, please refer to answer of Q4 - Principle 8, Essential Indicator.

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HDFC ASSET MANAGEMENT COMPANY LIMITED

4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the
current financial year), based on traditional knowledge
Basis of calculating
Sr. No Intellectual Property based on traditional knowledge Owned/ Acquired (Yes/No) Benefit shared (Yes / No)
benefit share
Not applicable

5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes
wherein usage of traditional knowledge is involved.
Name of authority Brief of the case Corrective action taken
Not applicable

6. Details of beneficiaries of CSR Projects

% of beneficiaries
No. of persons benefitted from from vulnerable
Sr. No CSR Project
CSR Projects and marginalized
groups
1 CSR Projects for Healthcare Cancer Patients & 100%
• Indian Cancer Society – Cancer Cure Fund (Cancer Support) attendants – 17,173
• Indian Cancer Society – Arun Kurkure Initiation & Treatment Fund (AKITF)
(Cancer Support)
• Deepsikha - Cancer Support
• Rotary Club of Bombay - Dharamshala Project- Cancer Support
Kanchi Kamakoti CHILDS Trust Hospital Critically ill Babies & 80%
Children - 35
2 CSR Projects for Education Students – 2,48,921 100%
• Parivaar Seva Kutirs in Madhya Pradesh – Overall development & nutrition Teachers – 5,579
• Sampark Foundation -Foundational Learning
• Muktangan – Access to holistic and inclusive quality education through
the ‘’Total Systems Approach’’
3 CSR Projects for Sports Athletes-54 -
Olympic Gold Quest – Training, Coaching, Equipment and Sports Science Para Athletes-18

HDFC AMC as part of its CSR Initiatives towards better informed, it is imperative that Company’s frontline
Environmental Sustainability has supported the service support is agile, well-trained and customer
development & sustentation of “Biodiversity Park” for centric. The Company relentlessly educates its staff on
creation of an urban forest using the Akira Miyawaki these objectives.
technique and rejuvenation of waterbody. The project
spreads over a 59,000 sq. ft area of the Kalina Campus of Mechanism to receive the Consumer complaints and
the University of Mumbai. HDFC AMC as part of its CSR feedback
Initiatives towards Education & Healthcare has supported As part of our endeavor in offering the best of products
the Akshaya Patra foundation towards the Mid-Day Meal and ensuring high service standards, we believe that our
Program for school children. customers should be able to seamlessly contact us to
offer their comments on our products/services and also
Principle 9: Businesses should engage with and provide to air their grievances. The Company has put in place a
value to their consumers in a responsible manner Customer Query & Grievance Redressal Policy and set
Essential Indicators up processes and technology supported infrastructure
1. Describe the mechanisms in place to receive and to support this function. As part of the policy, the
respond to consumer complaints and feedback. management continuously reviews the grievances
to systemically strengthen its processes leading to
At HDFC AMC, providing excellent service has been the
progressive reduction in complaints. The following are
cornerstone of customer centricity. The Company always
the various avenues for the customer to contact/write
endeavors to raise those standards that truly reflect
to us, depending on their convenience.
the brand. In a world where customers are increasingly

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E-mail: Mechanism to respond to consumer complaints:

Investors can email us at our corporate email id - hello@ All queries and complaints received across various touch
hdfcfund.com for any queries, complaints or feedback points are processed through the central Customer
they have. They can also post their grievances/feedback/ Relationship Management application which has a
queries/complaints on the ‘Write to Us’ link available on rule-based allotment logic for disseminating the same
the website (https://www.hdfcfund.com/contact-us/ amongst our branches and central staff who will provide
get-in-touch). Alternatively, they can also write to the RTA the final response to the customers. There are defined
CAMS on [email protected]. service levels assigned for each type of complaint.

The Company regularly undertakes Root Cause Analysis

Call centre:
of the top complaint types with the help of the service
Investors can call us from 9.00 am to 6.00 pm (Monday to team at branches who are supported by the Corporate
Friday) and 9.00 am to 1.00 pm (Saturday) on the toll-free Client Services (CCS) team at the corporate office.
numbers 1800 3010 6767/ 1800 419 7676. Investors calling Regional Service Managers (RSMs), who focus on service
from abroad can call us on +91 44 33462406. delivery across various regional offices, conduct periodic
visits to branches and engage with the staff and augment
SMS: support to the branches, besides seeking feedback.
Investor can SMS 'HDFCMF' to 56767. The CCS team engages with these RSMs to work on the
feedback and also trains them routinely. Service delivery
Escalation: and quality assessment are measured, using multiple
The Company has a well-defined escalation matrix. parameters like turnaround time, repeat complaints,
Investors can choose to route their query through these escalations etc. which are evaluated on a periodic basis
escalation levels should they feel that they have not to improve and provide seamless delivery.
received a satisfactory response at the initial stage. The Compliance team also oversees redressal of
Following matrix (Link) is available for investor to customer grievances.
raise grievances The Company has put in place a Stakeholders Relationship

h ttps://www.hdfcfund.com/information/grievances- and Unitholder Protection Committee (SR&UHPC) which
redressal-mechanism reviews the activities carried out by the Investor Service
Centers (ISCs) / branches of the Company and their
Customer Satisfaction Surveys: adherence to service standards, reviews the steps taken
by the Company to redress the grievances of the investors
As a part of feedback mechanism, company conducts
and the cases, if any, pending before the Courts/ Forums/
satisfaction survey for customers to understand the
Regulatory Authorities against the Company etc.
feedback on processes, services rendered & various
touch points. It is important that all stakeholders who work towards
enhancing customer experience should work in tandem.
The RTA, CAMS, forms the backbone of service delivery
chain. The Company works closely with CAMS to ensure
smooth operations and seamless client experience.

2. Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:
Particulars As a percentage to total turnover
Environmental and social parameters
relevant to the product
Not applicable
Safe and responsible usage
Recycling and/or safe disposal

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3. Number of consumer complaints in respect of the following:

FY 23-24 FY 22-23

Particulars Received Pending Received Pending

during the resolution at Remarks during the resolution at Remarks
year end of year year end of year
Data privacy - - - - - -
Advertising - - - - - -
Cyber-security - - - - - -
Delivery of essential services 1,858 6 - 2,190 12 -
Restrictive Trade Practices - - - - - -
Unfair Trade Practices - - - - - -
Other - - - - - -

4. Details of instances of product recalls on account of safety issues

Particulars Number Reasons for recalls
Voluntary recalls
Not Applicable
Forced recalls

5. Does the entity have a framework/ policy on cyber in the systems audit. Proactive measures are taken
security and risks related to data privacy? (Yes/No) If to ensure that they are adequately protected against
available, provide a web-link of the policy. external threats.
Yes, the Company has Board approved Information
Security Policy, Cyber Security Policy, Cyber Crisis 6. Provide details of any corrective actions taken or
Management Policy and Business Continuity Policy. Given underway on issues relating to advertising, and
the rapid technological and digital advancement, cyber delivery of essential services; cyber security and data
risks are inevitable. The Company has a strong Cyber privacy of customers; re-occurrence of instances of
Risk Management framework wherein cyber risk and its product recalls; penalty / action taken by regulatory
mitigation are monitored by the Information Technology authorities on safety of products / services.
& Security Committee and Risk Management Committee. NIL

Key areas covered under the cyber risk management include

7. Information relating to data breaches:
strong adherence to the Board approved Information and
Cyber Security policies, compliance with SEBI guidelines a. Number of instances of data breaches
and ISO 27001 standards to ensure that the Company is in b. Percentage of data breaches involving personally
line with industry best practices. The Company maintains identifiable information of customer
a robust cyber security architecture and has in place a
cyber-resilience framework to protect the integrity of data c. Impact, if any, of the data breaches
and guard against breaches of privacy. The Company also The Company did not witness any instances of data
trains employees on cyber security. breaches during the year. A cyber incident was detected
The Company ensures that cyber security controls and during the year which pertained to and was in connection
practices are embedded into the business process and it with an old cyber-incident. The Company ascertained
follows concept of ‘Security by Design’. Enhanced cyber that there is no misuse by any person on account of the
security practices and effective governance have resulted old cyber incident. The Company does not perceive a
in matured cyber security frameworks. IT assets are material risk regarding this incident as the Company has
reviewed and audited regularly by independent agencies. strong Cyber security framework and established / robust
Systems are subject to intense scrutiny and validations Data leakage and Protection safeguards.

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Leadership Indicators • Customers are able to raise and process most of their
1. Channels / platforms where information on products service requests electronically with the confirmations
and services of the entity can be accessed (provide web also being sent to them electronically.
link, if available) • Latest NAVs of all schemes have been prominently
The information on products & services of the Company disclosed under a separate head on our website and is
is available through various touchpoints as follows: also provided through SMS & call center upon request.

3. Mechanisms in place to inform consumers of any risk of

• Website: www.hdfcfund.com
disruption/discontinuation of essential services.
• Company’s Mobile applications- HDFC MF Online – The Company has devised a robust Disaster Recovery
Investors, and HDFC MF Online – Partners (DR) and Business Continuity Plan (BCP) which covers
• All leading Fintech Platforms entire operations of the AMC. Communications on any
disruption/ discontinuation of essential services, albeit
• Distributors / RIA rare, are intimated to customers through emails, call
• MF Central: www.mfcentral.com centres, the Company’s website and other modes of
electronic communication.
• Call centre @ 1800 3010 6767 / 1800 419 7676
In case of any disruption of services either planned or
• HDFC Mutual Fund Branches unplanned related to digital platforms (Website, mobile
• CAMS Service Centres app etc.), the company informs the customers with
reason for unavailability through alternate channels.
• CAMS investor portal: mycams.camsonline.com

2. Steps taken to inform and educate consumers about 4. Does the entity display product information on the
safe and responsible usage of products and/or product over and above what is mandated as per local laws?
services. (Yes/No/Not Applicable) If yes, provide details in brief.

The Company complies with all disclosure requirements The Company has always believed in being transparent
relating to its products and services, as per AMFI/SEBI with its customers by providing all the relevant details.
guidelines on product labelling within risk and disclosure Product communication is done through SMS, mails and
categories. The Company on a monthly basis provides other platforms. The Company also displays the following
disclosure of Riskometers’ which covers scheme-wise documents on the website:
risks and is available on Company’s Website. Additionally,
the Riskometer is also updated as and when it is warranted • Fact sheet
by the scheme. An addendum is issued in this case. • Scheme performance
The Company also has product literatures which has
riskometer for various product schemes. • Product literature

For the safety of customer, the Company sends Did your entity carry out any survey with regard to
communication to educate and advise customers on consumer satisfaction relating to the major products /
guarding themselves against financial frauds. services of the entity, significant locations of operation
of the entity or the entity as a whole? (Yes/No)
As part of the Go Green initiative in Mutual Funds,
Yes, the Company conducts surveys to gather customer
and providing information to investors in a cost
feedback through the Customer Satisfaction (CSAT)
effective yet transparent manner, following steps have
survey. These surveys are conducted separately for
been implemented:
both financial and non-financial transactions. Our goal
is to capture customer feedback on various processes,
• The Company does not encourage printing of physical
their transaction experiences, interactions with different
account statements at branches and instead request
touchpoints, and suggestions for improvement. Based
clients / distributors to opt for statements through
on the feedback received, a dedicated team works on
electronic mode.
actionable areas and implements improvements. The
management reviews these efforts periodically.

ANNUAL REPORT 2023-24 119

HDFC ASSET MANAGEMENT COMPANY LIMITED

Independent Practitioners’ Reasonable Assurance

Report
To the Directors of HDFC Asset Management Basis for opinion
Company Limited
We conducted our engagement in accordance with Standard
on Sustainability Assurance Engagements (SSAE) 3000,
Assurance report on the sustainability disclosures
“Assurance Engagements on Sustainability Information”
in the Business Responsibility and Sustainability
issued by the Sustainability Reporting Standards Board of
Reporting (BRSR Core attributes) of HDFC Asset
the Institute of Chartered Accountants of India (‘ICAI’). Our
Management Company Limited (the ‘Company’)
responsibilities under those standards are further described
for the period 1 April 2023 to 31 March 2024.
in the “Our responsibilities” section of our report.
The BRSR Core attributes are included in the Business
Responsibility and Sustainability Reporting of the Company We are required to comply with the independence and other
for the period 1 April 2023 to 31 March 2024. ethical requirements of the Code of Ethics issued by the ICAI.

Our firm applies Standard on Quality Control (SQC) 1, “Quality

Opinion Control for Firms that Perform Audits and Reviews of Historical
We have performed a reasonable assurance engagement on Financial Information, and Other Assurance and Related
whether the Company’s sustainability disclosures in the BRSR Services Engagements” issued by the ICAI. This standard
Core attributes (refer to Appendix 1) for the period 1 April 2023 requires the firm to maintain a comprehensive system of
to 31 March 2024 have been prepared in accordance with the quality control including documented policies and procedures
reporting criteria (refer table below). regarding compliance with ethical requirements, professional
standards, and applicable legal and regulatory requirements.
BRSR Core
Period subject to
attributes subject Reporting criteria We believe that the evidence we have obtained is sufficient and
assurance
to assurance
appropriate to provide a basis for our opinion.
BRSR Core 1 April 2023 to • egulation 34(2)(f ) of the
R
attributes (refer 31 March 2024 Securities and Exchange
Appendix 1) Board of India (SEBI) Listing Other information
Obligations and Disclosure
Management and the Board of Directors are responsible for
Requirements (SEBI LODR)
the other information. The other information comprises the
• Guidance note for BRSR information included in the Company’s Annual Report but does
format issued by SEBI
not include the BRSR Core attributes and assurance report
This engagement was conducted by a multidisciplinary thereon. The Company’s Annual Report is expected to be made
team including assurance practitioners, engineers and available to us after the date of this assurance report.
environmental and social practitioners.
Our reasonable assurance opinion on the BRSR Core attributes
In our opinion, the Company’s BRSR Core attributes for the does not cover the other information and we will not express
period 1 April 2023 to 31 March 2024, subject to reasonable any form of assurance opinion thereon.
assurance are prepared, in all material respects, in accordance
In connection with our assurance on the BRSR Core attributes,
with the Regulation 34(2)(f) of the Securities and Exchange
our responsibility is to read the other information identified
Board of India (SEBI) Listing Obligations and Disclosure
above when it becomes available, and in doing so, consider
Requirements (SEBI LODR) and basis of preparation set
whether other information is materially inconsistent with
out in Section A: General Disclosures 13 of the Business
the BRSR Core attributes or our knowledge obtained in the
Responsibility and Sustainability Reporting of the Company.
assurance, or otherwise appears to be materially misstated.

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 STATUTORY REPORTS BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

When we read the annual report, if we conclude that there • ensuring the reporting criteria is available for the intended
is a material misstatement therein, we are required to users with relevant explanation;
communicate the matter to those charged with governance
• establishing targets, goals and other performance
and describe actions applicable under the applicable laws
measures, and implementing actions to achieve such
and regulations.
targets, goals and performance measures;

Other matter • responsible for providing the details of the management

The BRSR Core attributes for the period 1 April 2022 to 31 personnel who takes ownership of the BRSR Core attributes
March 2023 was not subject to limited/reasonable assurance disclosed in the report;
engagement and, accordingly, we do not express an opinion, • ensuring compliance with law, regulation or
or provide any assurance on such information. applicable contracts;
Our opinion is not modified with respect to this matter. • making judgements and estimates that are reasonable in
the circumstances;
Intended use or purpose
• identifying and describing any inherent limitations in the
The BRSR Core attributes and our reasonable assurance
measurement or evaluation of information subject to
report are intended for users who have reasonable knowledge
assurance in accordance with the reporting criteria;
of the BRSR Core attributes and the reporting criteria and
who have read the information in the BRSR Core attributes • preventing and detecting fraud;
with reasonable diligence and understand that the BRSR Core
• selecting the content of the BRSR Core attributes, including
attributes are prepared and assured at appropriate levels
identifying and engaging with intended users to understand
of materiality.
their information needs;
Our opinion is not modified in respect of this matter.
• informing us of other information that will be included with
the BRSR Core attributes;
Responsibilities for the BRSR Core attributes
The management of the Company acknowledge and • supervision of other staff involved in the preparation of the
understand their responsibility for: BRSR Core attributes.

Those charged with governance are responsible for overseeing

• designing, implementing and maintaining internal controls the reporting process for the Company’s BRSR Core attributes.
relevant to the preparation of the BRSR Core attributes
are free from material misstatement, whether due to fraud Inherent limitations in preparing the BRSR Core
or error; attributes
• selecting or establishing suitable criteria for preparing the The preparation of the Company’s BRSR information requires
BRSR Core attributes, taking into account applicable laws the management to establish or interpret the criteria, make
and regulations, if any, related to reporting on the BRSR determinations about the relevancy of information to be
Core attributes, identification of key aspects, engagement included, and make estimates and assumptions that affect the
with stakeholders, content, preparation and presentation reported information.
of the BRSR Core attributes in accordance with the
Measurement of certain amounts and BRSR Core metrics,
reporting criteria;
some of which are estimates, is subject to substantial inherent
• disclosure of the applicable criteria used for preparation of measurement uncertainty, for example, GHG emissions, water
the BRSR Core attributes in the relevant report/statement; footprint, energy footprint. Obtaining sufficient appropriate
evidence to support our opinion does not reduce the
• preparing/properly calculating the BRSR Core attributes in
uncertainty in the amounts and metrics.
accordance with the reporting criteria;

ANNUAL REPORT 2023-24 121

HDFC ASSET MANAGEMENT COMPANY LIMITED

Our responsibilities Reasonable assurance opinion

We are responsible for: The nature, timing, and extent of the procedures selected
depended on our judgement, including an assessment of the
• Planning and performing the engagement to obtain risks of material misstatement of the information subject
reasonable assurance on the sustainability disclosures in the to reasonable assurance, whether due to fraud or error. We
BRSR Core attributes are free from material misstatement, identified and assessed the risks of material misstatement
whether due to fraud or error, in accordance with the through understanding the information subject to reasonable
reporting criteria in line with the section above. assurance and the engagement circumstances. We also
obtained an understanding of the internal control relevant to the
• Forming an independent opinion, based on the procedures
information subject to reasonable assurance in order to design
we have performed and the evidence we have obtained, and
procedures that are appropriate in the circumstances but not
• Reporting our reasonable assurance opinion to the Directors for the purpose of expressing an opinion on the effectiveness
of HDFC Asset Management Company Limited. of internal controls. In carrying out our engagement, we:

Exclusions
• assessed the suitability of the criteria used by the Company
Our assurance scope excludes the following and therefore we in preparing the reasonable assurance information;
will not express an opinion on the same:
• evaluated the appropriateness of reporting policies,
• Operations of the Company other than those mentioned in quantification methods and models used in the preparation
the “Scope of Assurance”. of the information subject to reasonable assurance and the
reasonableness of estimates made by the Company; and
• Aspects of the BRSR and the data/information (qualitative
or quantitative) other than the BRSR Core attributes. • evaluated the overall presentation of the information
subject to reasonable assurance.
• Data and information outside the defined reporting period
i.e., 1 April 2023 to 31 March 2024. For B S R & Co. LLP
Chartered Accountants
• The statements that describe expression of opinion, belief, Firm registration No. 101248W/W-100022
aspiration, expectation, aim, or future intentions provided
by the Company. Kapil Goenka
Partner
Summary of the work we performed as the basis Mumbai Membership No: 118189
for our opinion. 25 June 2024 ICAI UDIN: 24118189BKDBDQ1963
We exercised professional judgement and maintained
professional skepticism throughout the engagement. We
designed and performed our procedures to obtain evidence
that is sufficient and appropriate to provide a basis for our
reasonable assurance opinion.

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Appendix – 1

BRSR Core attributes - Reasonable assurance for FY 2023-24

Sr No BRSR indicator Description of indicator
1 Section C – Principle 1 – E8 Number of days of accounts payable
2 Section C – Principle 1 – E9 Concentration of purchases & sales done with trading houses, dealers, and related parties
Loans and advances & investments with related parties
3 Section C – Principle 3 – E1(c) Spending on measures towards well-being of employees and workers – cost incurred on wellbeing
measures as a % of total revenue of the company
4 Section C – Principle 3 – E11 Details of safety related incidents including lost time injury frequency rate, recordable work-related
injuries, no. of fatalities
5 Section C – Principle 5 – E3(b) Gross wages paid to females as % of wages paid
6 Section C – Principle 5 – E7 Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013, including complaints reported, complaints as a % of female employees, and
complaints upheld
7 Section C – Principle 6 – E1 Details of total energy consumption (in Joules or multiples) and its intensity
8 Section C – Principle 6 – E3 Total volume of water withdrawal by source and water consumption in Kilolitres and its intensity
9 Section C – Principle 6 – E4 Water discharge by destination and level of treatment (in kilolitres)
10 Section C – Principle 6 – E7 Details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) and its intensity
11 Section C – Principle 6 – E9 Details related to waste generated by category, waste recovered through recycling, re-using or other
recovery operations, waste disposed by nature of disposal method and its intensity
12 Section C – Principle 8 – E4 Input material sourced from following sources as % of total purchases – Directly sourced from MSMEs/
small producers and from within India
13 Section C – Principle 8 – E5 Job creation in smaller towns – Wages paid to persons employed in smaller towns (permanent or non-
permanent /on contract) as % of total wage cost
14 Section C – Principle 9 – E7 Instances involving loss / breach of data of customers as a percentage of total data breaches or cyber
security events

ANNUAL REPORT 2023-24 123

HDFC ASSET MANAGEMENT COMPANY LIMITED

Corporate Governance Report

Philosophy on the Code of Governance Our Board of Directors are dedicated to sound principles of
Corporate Governance in the Company and are the ultimate
Corporate Governance at HDFC AMC has been a continuous
custodians of governance. They evaluate and review the
journey and we believe that effective Corporate Governance is
Company’s strategic business plans, effectiveness of policies
a key component to enhance and maintain stakeholders’ value.
mandated under various regulations.
As we navigate the dynamic landscape of asset management
business, we remain dedicated to good corporate governance
Board of Directors
practices, underpinned by an unwavering commitment to
ethics, integrity, transparency and respect for all stakeholders. The Company’s Board is diverse with a mixed blend of expertise,
professional and experience. It comprises 9 (nine) members
We recognize the trust bestowed upon us by our investors, as on March 31, 2024, of which 8 (eight) are Non-Executive
and we respect this trust with integrity and accountability in all Directors including the Chairman and one Executive Director
aspects of our operations and take confident strides towards i.e., the Managing Director & Chief Executive Officer (CEO). Of
achieving our vision of becoming the “most respected asset the 8 (eight) Non-Executive Directors, 5 (five) are Independent
manager” in the world and mission to be the “wealth creator Directors. None of the Directors of your Company are related
for every Indian.” to each other or are debarred from holding the office of director
We believe in the intrinsic value of environmental, social, and by SEBI or any other authority. They have also confirmed that
governance (ESG) measures, integrating them seamlessly into they satisfy the fit and proper criteria as prescribed under
our business practices to drive sustainable growth and create the applicable regulations. The composition of the Board
long-term value for our investors and society at large. is in conformity with the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements)
At HDFC, ethics are not just a requirement – they are the Regulations, 2015 (“Listing Regulations”) and the Companies
foundation of our identity and the compass that guides us Act, 2013 (“the Act”).
toward a future of sustainable growth and enduring success.
We are dedicated to fostering mutually beneficial relationships For a brief profile of the Board members, refer to page 34 of
built on mutual respect, fairness and shared prosperity, this Annual Report.
aligning our interests with those of our stakeholders to drive
sustainable growth and positive societal impact.

Directorship and membership on the board/board committees of other public companies:

As on March 31, 2024
Number of
Name of Director Category Number of Listed Entities
committees**
Directorships*
Member Chairman Name of the Company Nature of Directorship
Mr. Deepak S. Parekh Non-Executive Non 4 - - 1. Siemens Limited Non – Executive and
-Independent Director Non-Independent
Director (Chairman)
2. HDFC Life Insurance Non – Executive
Company Limited ^ Director (Chairman)
Mr. V. Srinivasa Rangan* Non-Executive Non 3 - - HDFC Bank Limited Whole Time Director
-Independent Director
Ms. Renu Sud Karnad Non-Executive - Non 6 6 2 1. HDFC Bank Limited Non – Executive and
Independent Director Non-Independent
Director
2. GlaxoSmithKline Non-Executive
Pharmaceuticals Director (Chairperson)
Limited
3. EIH Limited Independent Director

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 STATUTORY REPORTS CORPORATE GOVERNANCE REPORT

As on March 31, 2024

Number of
Name of Director Category Number of Listed Entities
committees**
Directorships*
Member Chairman Name of the Company Nature of Directorship
Mr. Dhruv Kaji Non-Executive - 3 5 1 1. Network18 Media & Independent Director
Independent Director Investments Limited
2. Ceinsys Tech Limited Independent Director
3. TV18 Broadcast Independent Director
Limited
Mr. Jairaj Purandare Non-Executive - 3 3 3 1. Piramal Pharma Independent Director
Independent Director Limited
2. CIE Automotive India Independent Director
Limited
Mr. Sanjay Bhandarkar Non-Executive - 6 5 4 1. The Tata Power Independent Director
Independent Director Company Limited
2. Chemplast Sanmar Independent Director
Limited
Mr. Parag Shah Non-Executive - 3 1 - - -
Independent Director
Ms. Roshni Nadar Malhotra Non-Executive 1 1 - HCL Technologies Non-Executive
Independent Director Limited Director
Mr. Navneet Munot - Executive Director 1 - - - -
Managing Director & Chief
Executive Officer
Notes:

^ Ceased to be the Chairman and Non-Executive Director w.e.f. close of the business hours of April 18, 2024.

- Mr. Rushad Abadan ceased to be Non-Executive Director of the company w.e.f. the close of business hours of April 18, 2023.

- Mr. Keki Mistry ceased to be Non-Executive Director of the company w.e.f. June 26, 2023.

- Mr. V. Srinivasa Rangan appointed as Non-Executive Director of the company (Nominee of HDFC Bank Limited) w.e.f. January 12, 2024

*Excludes directorship in Private Limited Companies, Foreign Companies and Section 8 Companies. Also excludes directorship in the Company.

**Membership and Chairmanship in Audit Committee and Stakeholders Relationship Committee in all public limited companies have been considered.
Also, excludes chairmanship and membership in the Company.

Skills/Expertise/Competence of the Board of Directors

The Board identified, inter alia, the following core skills/expertise/competencies to ensure the Board’s effective composition to
discharge its responsibilities and duties required to govern your Company and also be compliant with the applicable regulations.

Name of the Director Qualification Field of specialisation

Mr. Deepak S. Parekh, Fellow of the Institute of Chartered Accountants - International Expertise/Strategic Planning
Chairman (England & Wales) - Risk Management Expertise
- Financial Expertise
- Marketing Expertise
- Operational Expertise
- Industry Expertise
- Regulatory Expertise
- Mergers and Acquisitions
Ms. Renu Sud Karnad Master’s degree in Economics from University of Delhi; Bachelor's - Risk Management Expertise
degree in Law from the University of Mumbai. Parvin Fellow – Woodrow - Financial Expertise
Wilson School of International Affairs, Princeton University, US - Legal Expertise
- Industry Expertise
Mr. V. Srinivasa Rangan Bachelor's degree in Commerce from University of Delhi, Associate - Risk Management Expertise
of The Institute of Chartered Accountants of India (ICAI), Graduate - Financial Expertise
member of the Institute of Cost Accountants of India - Legal Expertise
- Regulatory Expertise
- Strategic Planning

ANNUAL REPORT 2023-24 125

HDFC ASSET MANAGEMENT COMPANY LIMITED

Name of the Director Qualification Field of specialisation

Mr. Dhruv Kaji Bachelor's degree in Commerce (University of Mumbai) and Associate -International Expertise/ Strategic Planning
Member of Institute of Chartered Accountants of India - Financial Expertise
- Operational Expertise
- Mergers and Acquisitions
Mr. Jairaj Purandare B.Sc. (Hons), University of Mumbai; Fellow Member of Institute of - International Expertise/ Strategic Planning
Chartered Accountants of India - Financial Expertise
- Operational Expertise
- Industry Expertise
- Regulatory Expertise
Mr. Sanjay Bhandarkar B. Com., University of Pune; MBA, XLRI Jamshedpur - Technology/Digital Media Expertise
- Risk Management Expertise
- Financial Expertise
- Regulatory Expertise
Mr. Parag Shah Bachelor’s degree in Science - International Expertise/ Strategic Planning
(Computer Engineering) from the Illinois Institute of Technology; - Technology/Digital Media Expertise
graduate of the General Management Program of the Harvard - Financial Expertise
Business School - Industry Expertise
- Mergers and Acquisitions
Ms. Roshni Nadar MBA from the Kellogg Graduate School of Management, - International Expertise/ Strategic Planning
Malhotra Northwestern University - Financial Expertise
- Marketing Expertise
Mr. Navneet Munot Master’s degree in Commerce; Chartered Accountant; Chartered - International Expertise/Strategic Planning
Financial Analyst; Chartered Alternative Investment Analyst; Certified - Risk Management Expertise
Financial Risk Manager - Financial Expertise
- Marketing Expertise
- Legal Expertise
- Operational Expertise

Responsibilities Committee (NRC) and approval of the Board. As required under

Your Company has a well-defined framework that enables the Listing Regulations, for every appointment of Independent
the Board to provide strategic direction and effective Director, the NRC evaluates the balance of skills, knowledge
oversight of the Management. The Board also ensures that and experience on the Board and on the basis of such
your Company’s existing corporate governance practices are evaluation, the NRC identifies the candidate for appointment
enhanced by incorporating values of fair business practices, as an Independent Director. Re-appointments are made based
transparency for promoting a culture of corporate and social on evaluation of their contributions.
responsibility. To focus on crucial issues, various Committees Accordingly, following independent directors viz. Mr. Dhruv
are constituted under the supervision of the Board with specific Kaji, Mr. Jairaj Purandare, Mr. Sanjay Bhandarkar, Mr. Parag
delegated responsibilities. Shah and Ms. Roshni Nadar Malhotra, were re-appointed at the
The Board believes that the corporate governance practices 24th AGM held on June 26, 2023 for a second term of 5 (five)
adopted by your Company empowers the executive to consecutive years on the Board of your Company.
effectively manage the Company’s affairs. The decision- All the Independent Directors have confirmed that they meet
making powers entrusted to the executive management the criteria as mentioned under Listing Regulations and Section
with proper oversight and guidance by the Board enables the 149 of the Act. The maximum tenure of Independent Directors
Company to achieve its vision, stakeholder aspirations and is in accordance with the Act and other applicable Regulations.
societal expectations. Codes and policies mandated as per
the applicable laws have been implemented in spirit and letter Based on the declarations received from the Independent
by the Company. Directors, the Board is of the opinion that, all the Independent
Directors fulfil the conditions specified in the Act, Listing
Independent Directors Regulations and are independent of the Management.

Independent Directors are appointed / re-appointed based

on the recommendation of the Nomination & Remuneration

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 STATUTORY REPORTS CORPORATE GOVERNANCE REPORT

Meeting of Independent Directors Name of Senior Management

Designation
Personnel ("SMP")
Independent Directors are mandated to hold at least one
Mr. Naveen Gogia Co - Head - Sales and Distribution,
meeting in a financial year, where Non-Independent Directors Co - Head - International Business and
are not present. In such meetings, the Independent Directors Head - Public Relations
review the performance of Non-Independent Directors and Mr. Rajiv Maniar Co - Head - Sales and Distribution
the Board as a whole; the Chairman of the Company taking Mr. Sameer Seksaria Head - Corporate Client Services
into account the views of Executive/Non-Executive Directors; Mr. Shobhit Mehrotra Head - Fixed Income
and assess the quality, quantity and timely flow of information Mr. Simal Kanuga Head - PMS Sales, New Initiatives
between your Company’s management and the Board that is and Product Development, Co-Head
necessary for the Board to effectively and reasonably perform - International Business and Chief
Investor Relations Officer (AMC)
their duties.
Ms. Supriya Hemant Sapre Chief Compliance Officer
During FY 2023-24, the Independent Directors met once on *Ms. Sylvia Furtado Company Secretary and Head - Legal
March 19, 2024. Mr. V Suresh Babu Head - Operations

Note:
Familiarisation Programme
# On May 24, 2024, Ms. Mudeita Patrao resigned as Head – Digital effective
As part of the Familiarisation Programme, the Directors of June 21, 2024.
the Company are updated on regular basis with changes in the * On June 6, 2024, Ms. Sylvia Furtado, resigned as Company Secretary &
Mutual Fund industry, regulatory developments and different Head-Legal w.e.f. close of business hours of July 15, 2024.
business practices adopted in the Industry. The programme - Ms. Sonali Chandak has been appointed as Company Secretary & Head-
Legal w.e.f. July 16, 2024.
also includes an overview and outlook of the Indian economy,
- Mr. Harish Narayanan has been appointed as Chief Digital & Marketing
markets, trends, risk management mechanism, among others. Officer w.e.f. June 3, 2024.
An orientation programme is conducted for the newly inducted - Mr. Amaresh Jena, Head - Marketing and Digital Business resigned as
Independent Directors to introduce them to the business SMP w.e.f. close of business hours of September 8, 2023.
practices, codes and policies, compliance practices, corporate
culture of the Company including the mutual fund business, Board meetings
regulatory developments affecting the Company. During the The meetings of the Board of Directors and its Committees are
year, the Company had organized a full day strategy meet normally held at your Company’s Registered Office in Mumbai.
wherein external consultants were invited for presenting the Video conferencing facilities are made available to conduct
way forward for asset management industry. Further, there such meetings in case physical presence is not possible.
was a session kept for the directors on Environmental, Social
The Chairman ensures that the meeting is conducted in such
and Governance (‘ESG’) w.r.t. global ESG principles, standard
way that the business for which it was convened is properly
and ratings; ESG journey in India and introduction of reasonable
attended to, and that all those entitled to may express their
assurance on Business Responsibility and Sustainability Report
views and that the decisions taken by the meeting adequately
(BRSR) Core.
reflect the views of the meeting as a whole. He summarises the
An overview of the familiarisation programme during the discussions to ensure that members are in agreement with the
year is available on your Company’s website at https://www. Board’s view on the issues discussed.
hdfcfund.com/about-us/corporate-governance/code-policy.
At the Board/Committee meetings, the Managing Director &
Chief Executive Officer and Senior Management, who are invited
Particulars of Senior Management Personnel as on March
to those meetings, make presentations on various matters
31, 2024 (including the changes therein):
including the financial results, operations related issues, risk
Name of Senior Management management, the economic and regulatory changes.
Designation
Personnel ("SMP")
Mr. Alok Sheopurkar Head - Human Resources During the financial year, nine (9) Board meetings were held i.e.
Mr. Chirag Setalvad Head - Equities on April 25, 2023; May 8, 2023; June 26, 2023; July 24, 2023;
Dr. Leena Vijayvargiy Chief Risk Officer September 21, 2023; October 12, 2023; November 17, 2023;
Mr. Mitul Chandrakant Patel Head - PMS Investments January 11, 2024 and March 19, 2024.
# Ms. Mudeita Patrao Head - Digital
Mr. Naozad Sirwalla Chief Financial Officer

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HDFC ASSET MANAGEMENT COMPANY LIMITED

Attendance at 9 (nine) Board meetings held during FY 2023-24 and at the last AGM
Number of Board meetings
Name of the Director Attendance at the 24th AGM
Held during tenure Attended
Mr. Deepak S. Parekh 9 9 YES
Mr. Keki M. Mistry 1
3 3 YES
Mr. V. Srinivasa Rangan2 1 1 -
Ms. Renu Sud Karnad 9 9 YES
Mr. Dhruv Kaji 9 9 YES
Mr. Jairaj Purandare 9 9 YES
Mr. Sanjay Bhandarkar 9 9 YES
Mr. Parag Shah 9 9 YES
Ms. Roshni Nadar Malhotra 9 7 YES
Mr. Navneet Munot 9 9 YES
1
Mr. Keki Mistry ceased to be Non-Executive Director of the company w.e.f. June 26, 2023.
2
Mr. V. Srinivasa Rangan appointed as Non-Executive Director of the company (Nominee of HDFC Bank Limited) w.e.f. January 12, 2024.

To enable better and more focused attention on the affairs The Company Secretary acts as the Secretary to the Audit
of the Company, the Board delegates particular matters Committee. The Committee invites the Managing Director
to committees of the Board set up for the purpose. The & Chief Executive Officer, Chief Financial Officer, Head
composition and functioning of these board committees is – Corporate Client Services, Head – Operations, Chief
in compliance with the applicable provisions of the Act and Compliance Officer, other executives of the Company as it
Listing Regulations. considers appropriate, representatives of statutory auditor
and representatives of internal auditor to attend the meetings
There have been no instances where the Board has not
of the Committee.
accepted any recommendation of any Committee of the Board
which is mandatorily required, during the financial year. The terms of reference for the Audit Committee
broadly includes:
Audit Committee
1. Oversight of the Company's financial reporting process
The Audit Committee consists of 4 (four) Non-Executive and the disclosure of its financial information to ensure
Directors of which three are Independent Directors, who are that the financial statement is correct, sufficient
well-versed with accounting, financial matters and corporate and credible.
laws. The Chairman of the Audit Committee was also present
at the last AGM of the Company. 2. Recommendation for appointment, remuneration and
terms of appointment of auditors of the Company.
During the year, 7 (seven) Audit Committee meetings were held
i.e. on April 25, 2023; June 26, 2023; July 24, 2023; October 12, 3. Approval of payment to statutory auditors for any other
2023; November 17, 2023; January 11, 2024 and March 19, 2024. services rendered by the statutory auditors.

Audit Committee composition and attendance of members at 4. Reviewing, with the management, the annual financial
the 7 (seven) meetings held in FY 2023-24: statements and the auditors’ report thereon, before
submission to the Board for approval, with particular
Number of meetings reference to:
Name of the Director Held during
Attended
tenure a) matters required to be included in the Directors’
Mr. Dhruv Kaji (Chairman) 7 7 Responsibility Statement to be included in the
Mr. Jairaj Purandare 7 7 Board’s report in terms of clause (c) of sub-section 3
Mr. Keki M. Mistry1 2 2 of Section 134 of the Companies Act, 2013
Mr. Sanjay Bhandarkar 7 7
b) changes, if any, in accounting policies and practices
Mr. V. Srinivasa Rangan2 1 1
and reasons for the same
1
Mr. Keki Mistry ceased to member of the Committee w.e.f. June 26, 2023.
2
Mr. V. Srinivasa Rangan appointed as member of the Committee w.e.f. c) major accounting entries involving estimates based
January 12, 2024. on the exercise of judgement by management

128 POWERED BY PURPOSE

 STATUTORY REPORTS CORPORATE GOVERNANCE REPORT

d) significant adjustments made in the financial shareholders (in case of non-payment of declared
statements arising out of audit findings dividends) and creditors.

e) compliance with listing and other legal requirements 18. 

R eviewing the func tioning of the Whistle
relating to financial statements Blower Mechanism.

f) disclosure of any related party transactions 19. Approval of appointment of Chief Financial Officer.

g) modified opinion(s) in the draft audit report. 20. Reviewing the compliance with the provisions of SEBI
(Prohibition of Insider Trading) Regulations, 2015 at least
5. Reviewing, with the management, the quarterly financial
once in a financial year and verify that the systems for
statements before submission to the Board for approval.
internal control are adequate and are operating effectively.
6. Reviewing, with the management, the statement of uses/
21. Review, approve, recommend, as applicable, financial
application of funds raised through an issue (public issue,
reporting process, accounting policy issues for the
rights issue, preferential issue, etc.), the statement of
Schemes including any proposed changes to the
funds utilised for purposes other than those stated in
accounting policies and practice with respect to
the offer document/prospectus/notice and the report
transactions with related parties of HDFC Mutual
submitted by the monitoring agency monitoring the
Fund, etc.
utilisation of proceeds of a public or rights issue, and
making appropriate recommendations to the Board to 22. Review the audit opinion issued by the statutory auditors.
take up steps in this matter.
23. 
Consider and recommend adoption of financial
7. Reviewing and monitoring the auditor’s independence statements including half yearly unaudited financial
and performance, and effectiveness of audit process. results prepared for the Scheme.

8. Approval or any subsequent modification of transactions 24. Review the system of internal controls and the audit
of the Company with related parties. processes for the Mutual Fund operations, including
observations, rectifications if suggested by internal /
9. Scrutiny of inter-corporate loans and investments.
external auditors are acted on.
10. Valuation of undertakings or assets of the Company,
25. Review of the internal auditors’ reports, recommend and
wherever it is necessary.
forward observations to the Trustee board.
11. 
Evaluation of internal financial controls and risk
26. Recommending for approval, the appointment, re-
management systems.
appointment and, if required, the replacement or removal
12. Reviewing with management, performance of statutory of the Statutory Auditor of the Mutual Fund, Internal
and internal auditors, and adequacy of the internal Auditor of the Mutual Fund, etc. and the fixation of fees
control systems. for audit and any other services rendered by the Statutory
Auditors with respect to the Mutual Fund including the
13. To formulate the scope, functioning, periodicity and
scope of the Internal audit.
methodology for conducting the internal audit in
consultation with the Internal Auditor. 27. Reviewing the Internal Audit Reports of the Schemes of
Mutual Fund (including Internal Audit Report of critical
14. Discussion with internal auditors any significant findings
activities outsourced by the AMC such as Custodian, Fund
and follow up there on.
Accounting, the Registrar and Transfer Agent activity,
15. Reviewing the findings of any internal investigations by the etc.).
internal auditors into matters where there is suspected
28. Reviewing the findings of any internal investigations by
fraud or irregularity or a failure of internal control systems
the AMC / internal auditors into matters where there is
of a material nature and reporting the matter to the Board.
suspected fraud or irregularity or a failure of internal
16. Discussion with statutory auditors before the audit control systems of a material nature or issues highlighted
commences, about the nature and scope of audit as well or referred through whistle blower complaints, etc.
as post-audit discussion to ascertain any area of concern.
29. Reviewing Regulatory Inspection Reports.
17. Looking into the reasons for substantial defaults in
the payment to the depositors, debenture holders,

ANNUAL REPORT 2023-24 129

HDFC ASSET MANAGEMENT COMPANY LIMITED

30. Reviewing implementation status of all outstanding Composition of Nomination & Remuneration Committee
action points arising out of Internal Audit Reports, and attendance of members in meetings:
Statutory Audit Reports, Systems Audit Reports, Number of meetings
Inspection Reports etc. Name of the Director Held during
Attended
tenure
31. Reviewing the adequacy of the internal control systems, Mr. Jairaj Purandare (Chairman) 3 3
including defining metrics for measuring internal controls, Mr. Dhruv Kaji 3 3
seeking comments of the internal auditors about Internal Mr. Deepak S. Parekh 3 3
Control Systems, etc. and the steps taken towards
Mr. Parag Shah 3 3
improving the effectiveness of internal control system
including through automation. The Company Secretary acts as the Secretary to
the Committee.
32. Interacting with the statutory and internal auditors of the
Mutual Fund, at least once annually without engagement The broad terms of reference of the Nomination &
of management of the AMC. Besides the mandatory Remuneration Committee includes:
requirement specified, such interactions may be held 1. Identify persons who are qualified to become Directors
whenever felt necessary by the Independent Directors and who may be appointed in senior management in
of the Audit Committee. accordance with the criteria laid down, recommend to
33. Evaluating various internal control measures in terms the Board their appointment and removal and carry out
of applicable SEBI (Mutual Funds) Regulations, 1996 and evaluation of every Director’s performance.
various circulars issued thereunder. 2. Formulate the criteria for determining qualifications,
34. Reviewing periodic report on compliance with applicable positive attributes and independence of a Director
laws and regulations pertaining to the Mutual Fund and recommend to the Board a policy, relating to the
operation, including the details of non-compliance along remuneration for the Directors, key managerial personnel
with the corrective actions, as applicable. and other employees.

35. Reviewing the Annual Compliance Report in relation to 3. Formulate criteria for evaluation of performance of
the “Policy on Prohibition of Insider Trading” of the AMC Independent Directors and the Board of Directors.
for Mutual Fund. 4. Devise a policy on diversity of Board of Directors.
36. Assess that the AMC has been managing the mutual fund 5. Review and recommend compensation payable to
schemes independently of other activities and have taken the Managing Director/Whole Time Directors of the
adequate steps to ensure that the interest of investors Company including any variation therein from time to
of one scheme are not being compromised with those time and administer the Company's stock option plans
of any other scheme or of other activities of the asset subject to the applicable law.
management company.
6. Whether to extend or continue the term of appointment
37. consider and comment on rationale, cost-benefits of the Independent Director, on the basis of the report of
and impact of schemes involving merger, demerger, performance evaluation of Independent Directors.
amalgamation etc., on the listed entity and its
shareholder; and. 7. To recommend to the Board, all remuneration, in whatever
form, payable to senior management.
38. Any other matters/authorities/responsibilities/powers
assigned as per the Companies Act, 2013, SEBI (Listing 8. Any other matters/authorities/responsibilities/powers
Obligations and Disclosure Requirements) Regulations, assigned as per Companies Act 2013, Rules made
2015, SEBI (Mutual Funds) Regulations, 1996 and Rules/ thereunder and Listing Regulations, as amended from
circulars issued thereunder, as amended from time time to time.
to time.
Remuneration of Directors
Nomination & Remuneration Committee Nomination & Remuneration Policy
During FY 2023-24, 3 (three) Nomination & Remuneration The Nomination & Remuneration Policy, including the criteria
Committee meetings were held on April 18, 2023; April 25, 2023 for remunerating Non-Executive Directors is recommended
and January 10, 2024. by the Nomination & Remuneration Committee and approved

130 POWERED BY PURPOSE

 STATUTORY REPORTS CORPORATE GOVERNANCE REPORT

by the Board. The objective of the policy is to lay down criteria participation in the Board and other meetings are reimbursed
and terms and conditions with regard to identifying persons to the Directors. Further, in accordance with Regulation 27(1)
who are qualified to become Directors (Executive and Non- read with Part E of Schedule II of Listing Regulations, the
Executive) and persons who may be appointed in Senior Company reimburses the Chairman the expenses incurred
Management, Key Managerial positions and to determine their by him towards the fuel and car maintenance for his services
remuneration. The Nomination & Remuneration Policy can be offered for official purposes to the Company. Stock Options
accessed on your Company’s website https://www.hdfcfund. may be granted to the Non-Independent Directors as
com/about-us/corporate-governance/code-policy approved by the Committee. No stock options are granted to
Independent Directors.
Non-Executive Directors
There were no other pecuniary relationships or transactions of
The remuneration paid to Non-Executive Directors consists Non-Executive Director vis-à-vis the Company.
of sitting fees and commission. Further, the expenses for

Details of the remuneration and shareholding of Directors of the company for the FY 2023-24 are as follows:
Name of Directors Salary (in K)^ Perquisites (in K) Sitting fees (in K) *Commission (in K) Total (in K) Shareholding

Mr. Deepak S. Parekh - - 26,00,000 25,00,000 51,00,000 2,24,000

Mr. Keki M. Mistry1 - - 6,00,000 6,25,000 12,25,000 1,02,000
Ms. Renu Sud Karnad - - 20,00,000 25,00,000 45,00,000 1,68,320
Mr. Rushad Abadan2 - - - - -
Mr. Dhruv Kaji - - 27,00,000 25,00,000 52,00,000 -
Mr. Jairaj Purandare - - 25,00,000 25,00,000 50,00,000 -
Mr. Sanjay Bhandarkar - - 28,00,000 25,00,000 53,00,000 -
Mr. Parag Shah - - 18,00,000 25,00,000 43,00,000 -
Ms. Roshni Nadar - - 8,00,000 25,00,000 33,00,000 -
Malhotra
Mr. V. Srinivasa Rangan3 - - - - -
#
Mr. Navneet Munot 4,58,03,124 2,66,320 - 3,86,81,200 8,47,50,644 -
Notes:
1
Ceased to be Non-Executive Director of the company w.e.f. June 26, 2023
2
Ceased to be Non-Executive Director of the company w.e.f. April 18, 2023
3
Appointed as Non-Executive Director of the company w.e.f. January 12, 2024
*The Commission for the financial year ended March 31, 2024 will be paid to Non-Executive and Independent Directors, subject to deduction of tax,
after adoption of financial statements at the upcoming AGM of the Company scheduled to be held on July 25, 2024.
^ Salary includes contribution to Provident Fund made by the Company.
#
Expenses towards gratuity and leave encashment provisions are determined actuarially on an overall basis at the end of each year and accordingly,
have not been considered in the above information.
During the FY 2023-24, No directors were granted employee stock options except Mr. Navneet Munot who had been granted 65,700 options by the
Company.

Managing Director and Chief Executive Officer decided and approved by the Board on the recommendation
The break-up of the pay scale, commission and quantum of of the Nomination & Remuneration Committee. Terms of the
perquisites including, employer’s contribution to provident service, the notice period and severance fees are as per the
fund, gratuity, club fees, etc., is decided and approved terms of agreement entered into by him with the Company.
by the Board on the recommendation of the Nomination
& Remuneration Committee and is within the overall Evaluation of the Board and Directors
remuneration approved by the shareholders. Stock Options During the year, the Board carried out an annual evaluation of
are granted to the Managing Director & Chief Executive Officer its own performance, performance of the board committees
(‘CEO’) of the Company as approved by the Nomination & and individual directors pursuant to the provisions of the Act
Remuneration Committee. The annual increment of the and Listing Regulations. The Board on the recommendations
Managing Director & CEO is linked to his performance and is of the Nomination & Remuneration Committee approved the

ANNUAL REPORT 2023-24 131

HDFC ASSET MANAGEMENT COMPANY LIMITED

criteria for annual evaluation which were broadly based on the Stakeholders Relationship & Unit holder Protection
Guidance Note on Board Evaluation issued by the Securities Committee
and Exchange Board of India vide its Master Circular dated
During FY 2023-24, five (5) Stakeholders Relationship &
July 11, 2023.
Unitholders Protection Committee meetings were held on
Each board member was required to fill the board evaluation April 25, 2023; July 24, 2023; October 12, 2023; January 11,
questionnaire online and the questionnaire were divided 2024 and March 19, 2024.
into different sections viz. Evaluation of Non – Executive
/ Independent Directors; Evaluation of Board as a whole; Composition of the Committee and attendance of the
Evaluation of Board Committees; Evaluation of Chairman and members in meetings
Evaluation of Executive Director. Number of meetings
Name of the Director Held during
Evaluation criteria for Board/Committees were on the tenure
Attended
parameters like attendance, participation and ability to Mr. Sanjay Bhandarkar 1
5 5
contribute at the meeting, Board as a whole i.e. its structure, (Chairman)
diversity, experience, functioning, Board members’ Mr. Deepak S. Parekh 5 5
understanding of their roles and responsibilities, quality of Mr. Dhruv Kaji 5 5
decision making of the Board and its effectiveness. Mr. Jairaj Purandare 5 5
The responses received from the Directors with respect Ms. Renu Sud Karnad2 5 5
to the Board evaluation questionnaire were reviewed, Mr. Parag Shah3 2 2
discussed at separate meetings of Independent Directors, 1
Appointed as Chairman of the Committee w.e.f. January 11, 2024
Nomination & Remuneration Committee and also the Board, pursuant to SEBI Circular dated July 7, 2023.
and the suggestions provided by the directors were noted. 2
Ceased as Chairperson of the Committee w.e.f. January 11, 2024.
Performance of the committees was evaluated on the basis of 3
Appointed as member of the Committee w.e.f. January 11, 2024.
their effectiveness in carrying out their respective mandates.
The Chairman’s performance evaluation was carried out by During the year under review, pursuant to SEBI circular no.
Independent Directors at a separate meeting. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/117 dated July 7,
All the directors participated in the board evaluation and 2023, the Stakeholders Relationship Committee was renamed
review exercise including the peer evaluations excluding the as Stakeholders Relationship and Unit Holder Protection
director being evaluated. All the directors participated in the Committee (SRUPC) and has adopted revised terms of
board evaluation except for Mr. V Srinivasa Rangan and review reference as detailed below:
exercise including the peer evaluations excluding the director 1. To review of unclaimed dividend and redemptions and
being evaluated. measures taken by the Company to reduce the quantum
The directors provided a recommendation to induct a of such unclaimed amount.
Director with Information Technology background on the 2. To review of, transfer, transmission, nomination process
Board of the Company. Further, the Directors have evaluated and adherence to service standards adopted with respect
the performance of Mr. Navneet Munot, Managing Director to various services adopted by the Company being
& Chief Executive Officer (‘CEO’) of the Company and basis rendered by the RTA of HDFC Mutual Fund.
which recommended his re-appointment for a period of five
years effective from July 1, 2024 up to June 30, 2029, subject 3. Review of measures taken for ensuring timely receipt of
to approval of the shareholders. dividend and redemption proceeds, annual reports, and
other regulatory communications/disclosures.
During the year, the Company took adequate steps to
implement observations arising from Board evaluation exercise 4. To review other activities carried out by the Company
for FY 2022-23 viz. executives’ performance, remuneration, under Regulation 24(b) of MF Regulations and its impact
succession planning and continuing Professional Development on the unit holders.
sessions for the directors of the Company. 5. To review of all investors/scheme compensation to
The Board noted the evaluation results and were satisfied with ensure they are fair and appropriate and review instances
the overall engagement and effectiveness of the Board and its of market abuse by employees of the Company.
various Committees.

132 POWERED BY PURPOSE

 STATUTORY REPORTS CORPORATE GOVERNANCE REPORT

6. To recommend policy on utilization of investor education 18. To approve the UP metrics along with the targeted level /
and awareness funds. benchmark for each parameter, where possible.

7. To review of various investor education and awareness 19. To review the reports generated with respect to the
steps taken by the Company including effective utilization Unitholder Protection metrics at least once in a half year.
of the funds in relation to the above on periodic basis.
20. To brief board of directors of the Company on the
8. To review of measures taken by the Company for exit proceedings of the meeting and minutes of the
options, voting and obtaining consents as prescribed meeting also be placed before the board of directors of
under the MF Regulations. Trustee Company.

9. To review of complaints / grievances handling mechanism 21. To report its findings to the board of directors of Company
including reported instances of mis selling and frauds, along with recommendations for action.
if any. Analyse the root cause of investor complaints,
22. To recommend relating to protection of interest of
identify market conduct, issues and advise the
investors as well as monitor its implementation.
management appropriately about rectifying systemic
issues, if any. 23. To review the steps taken by the Company to redress the
grievances of the mutual fund investors and the cases,
10. To review of unit holder complaints and grievances with
if any, pending before the Courts/ Forums/Regulatory
ageing of outstanding complaints on a periodical basis.
Authorities against the Company / Mutual Funds.
11. To review measures and steps taken to reduce unit
24. To review the activities carried out by the investor
holder complaints.
service centres of the Company and their adherence to
12. To review the various compliance issues relating to service standards.
protection of the interests of the unit holders.
25. To consider and resolve the grievances of the security
13. To ensure that the Company adopts a standard operating holders of the Company including complaints related to
procedure for its processes including timeframe for transfer/transmission of shares, non-receipt of annual
processing and confirmation of financial and non-financial report, non-receipt of declared dividends, issue of new/
transactions, treats unit holders fairly and equally and duplicate certificates and general meetings, etc.
there is no preferential treatment given to different
26. To review the measures taken for effective exercise of
classes of investors.
voting rights by shareholders.
14. To ensure compliances with applicable laws with respect
27. To review adherence to the service standards adopted
to resolving, reporting and disclosures of complaints
by the Company in respect of various services being
and grievances.
rendered by the Registrar & Share Transfer Agent with
15. To ensure timeliness and adequacy of disclosures of respect to shares of the Company.
material information to the investors.
28. To review various measures and initiatives taken by
16. To ensure that all conflicts are adequately managed and/ the Company for reducing the quantum of unclaimed
or disclosed as per the conflict-of-interest policy. dividends and ensuring timely receipt of dividend
warrants/annual reports/statutory notices by the
17. To ensure that the Company has approved internal policy
shareholders of the Company.
for measurement of various parameters (such as cases
of investor compensation, investor complaints, fraud 29. To carry out any other roles and responsibilities as
incidents impacting any investor/ scheme, consistent mandated by the Board of Directors from time to time
underperformance of any scheme, number of incidents and / or enforced by any statutory authority including any
where the agreed Turn Around Time (TAT) has exceeded modification or amendment as may be applicable.”
with respect to investor related transactions such as
redemptions/ redressal of investor complaints/ non- Compliance Officer
financial transactions, etc., system issues/ incidents/ BCP Pursuant to Listing Regulations, Ms. Sylvia Furtado, Company
events impacting investors, data privacy / cyber security Secretary of the Company is the Compliance Officer.
incidents impacting investors) through appropriate
UP metrics. There was no investor complaint at the beginning of the financial
year. During the year under review, the Company received 4

ANNUAL REPORT 2023-24 133

HDFC ASSET MANAGEMENT COMPANY LIMITED

(four) complaints from shareholders/SEBI/ Stock Exchanges/ Composition of the Committee and attendance of the
MCA. There were no complaint pending as on March 31, 2024. Members in meetings
The Complaints were redressed to the satisfaction of the Number of meetings
shareholders. There were no transfer requests received by the Name of the Director Held during
Attended
Company during the year. tenure
Mr. Deepak S. Parekh (Chairman) 4 4
Environmental, Social and Governance & Corporate Social Mr. Keki M. Mistry1 1 1
Responsibility Committee (Formerly Corporate Social Ms. Renu Sud Karnad 4 4
Responsibility Committee) Mr. Sanjay Bhandarkar 4 4
Mr. V. Srinivasa Rangan2 Nil -
During FY 2023-24, three (3) Environmental, Social and
Governance & Corporate Social Responsibility Committee 1
Mr. Keki Mistry ceased to member of the Committee w.e.f. June 26, 2023.
(“ESG & CSR Committee”) meetings were held on April 25, 2
Mr. V. Srinivasa Rangan appointed as member of the Committee w.e.f.
2023; July 24, 2023 and January 11, 2024. January 12, 2024.
The broad terms of reference of the Risk Management
Composition of the Committee and attendance of the Committee includes:
Members in meetings
1. Review and approve various mandatory risk management
Number of meetings policies and framework both at AMC and scheme level,
Name of the Director Held during
tenure
Attended including but not limited to such as:
Mr. Deepak S. Parekh (Chairman) 3 3 a. Risk Management Policy,
Mr. Navneet Munot 3 3 b. Investment policy,
Mr. Parag Shah 3 3
c. Credit risk policy,
Mr. Sanjay Bhandarkar1 2 2
d. Liquidity risk policy,
1
Mr. Sanjay Bhandarkar appointed as member of the Committee
e. Operational risk management policy (including
w.e.f. April 25, 2023.
Incident reporting and escalation matrix),
The ESG & CSR Committee is responsible for formulating f. Outsourcing policy,
the Corporate Social Responsibility Policy, recommending
g. Cyber security and information security policy,
the amount of expenditure to be incurred on CSR activities,
and reviewing and approving projects/programmes to be h. Business Continuity and Disaster Recovery Plan,
supported by your Company. The ESG & CSR Committee i. Such other policies as may be prescribed by SEBI
in addition to the above also oversee the development and from time to time
implementation of the Company’s Environmental, Social & Any modifications to the policies approved by the Executive
Governance framework. Risk Management Committee (“ERMC”) shall be reviewed by
For details of CSR activities, refer to the Directors’ Report. the RMC of the AMC.

2. To review the appointment, removal and terms of

Risk Management Committee remuneration of the Chief Risk Officer (if any) including
The Company has constituted the Risk Management any other officer(s) to be appointed from time to time as
Committee in line with the Listing Regulations and Risk mandated by SEBI;
Management Framework circular issued by SEBI vide its
3. Review and approve the risk appetite, risk metric and
circular no. SEBI/HO/IMD/IMD-1 DOF2/P/CIR/2021/630 dated
tolerance limits for AMC and schemes.
September 27, 2021. The Committee looks into various areas
of risk management as specified in the aforesaid circular and 4. Periodically review the risk appetite and risk metrics
internal controls pertaining to Mutual Fund and the Company. against actual risk of the AMC and scheme.
During the year, four (4) Risk Management Committee 5. Review breaches to risk appetite and risk matrix /
meetings were held on April 25, 2023; July 24, 2023; October thresholds and approve the action plan for remediation.
12, 2023; and January 11, 2024.
6. Define mechanism for risk reporting on a quarterly basis
by ERMC to the BRMC of the AMC.

134 POWERED BY PURPOSE

 STATUTORY REPORTS CORPORATE GOVERNANCE REPORT

7. Annually review and approve changes to the roles and 17. 

Approve Terms of Reference for Executive Risk
responsibilities and Delegation of Power (“DoP”) as placed Management Committee (ERMC).
by the ERMC.
18. 
Delegate matters to CEO or the Executive Risk
8. 
Periodically review material breaches in the code Management Committee, as required.
of conduct.
19. Review any other material deviations or exceptions and
9. 
Monitor and review the resolution, strategies as matters of concerns identified by the management /
recommended by the management and ERMC for the ERMC / previous BRMC meeting(s) along with action plans.
existing and emerging risks identified by them.
20. To implement the Risk Management framework for the
10. Review exceptions to key risks, if any, such as: Company as and when mandated under the SEBI (Mutual
Fund) Regulations, 1996 or any other applicable provisions
• Results of stress testing (investment, credit and
of SEBI (Listing Obligations & Disclosure Requirements)
liquidity risks)
Regulations, 2015;
• Outliers identif ied during “Early Warning
21. To review the Cyber security risk and business continuity
Signals” review
plan of the Company;
• Material alerts generated through the liquidity risks
22. Ensure and comply with such other matters specified by
model at scheme level
the Securities and Exchange Board of India (Mutual Funds)
• Material deviations, issues and corrective actions as a Regulations, 1996 read with various amendments and
result of periodic RCSA review clarifications issued by SEBI from time to time and SEBI
Risk Management Circular dated 27th September 2021,
11. Report on outsourced vendor review and risks emanating
as may be amended from time to time.
from them along with the remediation plans.
23. To review the appointment, removal and terms of
12. Review and recommend the level and type of insurance
remuneration of the Chief Risk Officer (if any) including
cover against first and third party losses arising from
any other officer(s) to be appointed from time to time.
errors and omissions.
24. Ensure and comply with such other matters specified by
13. Review evaluation of the loss / near miss incidents and
the SEBI (Mutual Funds) Regulations, 1996 or SEBI (Listing
fraud risk reports submitted by the ERMC.
Obligations & Disclosure Requirements) Regulations, 2015
14. Review major findings and corrective actions approved by or Companies Act, 2013, read with various amendments
CEO and CRO on various risks. and clarifications issued by the said authorities, from time
to time.
15. Formulate and approve a methodology for annual
evaluation of the RMF, either through an auditor or by way The minutes of meetings of all the Committees of the Board of
of self-assessment. Directors were placed before the Board.

16. Review the findings and action plan on the annual RMF
compliance review.

General Body Meetings

The Company held its last 3 (three) Annual General Meetings as under:

Nature of Meeting Date Time Venue Special Resolution passed

24th General Meeting June 26, 2023 3.00 p.m. (IST) Through Video Conferencing / Re-appointment of Mr. Dhruv Kaji,
Other Audio Visual means Mr. Jairaj Purandare, Mr. Sanjay Bhandarkar,
Mr. Parag Shah and Ms. Roshni Nadar Malhotra
as Independent Directors of the Company.
23rd General Meeting June 29, 2022 3.00 p.m. (IST) Through Video Conferencing / Re-appointment of Mr. Deepak S. Parekh as
Other Audio Visual means Non-Executive Director of the Company
22nd Annual General July 16, 2021 3.00 p.m. (IST) Through Video Conferencing / -
Meeting Other Audio Visual means

ANNUAL REPORT 2023-24 135

HDFC ASSET MANAGEMENT COMPANY LIMITED

Postal Ballot Further, from the financial year ended March 31, 2024 till the
date of this report, no special resolution is proposed to be
Pursuant to the provisions of Section 110 read with Section
conducted through postal ballot.
108 and all other applicable provisions, if any, of the Act read
with Rule 20 and Rule 22 of the Companies (Management
Means of Communication
and Administration) Rules, 2014, Regulation 44 of the Listing
Regulations, Secretarial Standard on General Meetings issued Quarterly/Half-yearly/Annual Results: The Quarterly Results
by the Institute of Company Secretaries of India, guidelines of your Company are published in the Business Standard, a
prescribed by the Ministry of Corporate Affairs (the “MCA”), national English daily with a wide circulation and the Navshakti
Government of India, for holding general meetings / conducting (Marathi) newspaper. The results are also available on the
postal ballot process through electronic voting (remote website of the Company at www.hdfcfund.com.
e-voting) and any other applicable laws and regulations, the News Releases and Presentations: News releases are first sent
approval of the Members for below mentioned resolution was to the stock exchanges before their release to media for wider
obtained by means of Postal Ballot through e-voting: dissemination. Presentation made to Investors/ Analysts,
Particulars Postal Ballot Notice Dated January 11, 2024
Media, Institutional Investors, etc. are available on the stock
exchanges where the shares of the Company are listed (BSE
Resolution Approval for appointment of Mr. V. Srinivasa
Rangan as a Non-Executive Director (Nominee of and NSE) as well as on the Company’s website.
HDFC Bank Limited, Promoter of the Company)
Website: The Company’s website contains a separate section,
e-voting KFin Technologies Limited (KFintech)
AMC Shareholder where the latest shareholder information is
Scrutinizer The Board of Directors had appointed Mr. Surjan available. It contains comprehensive information which is of
Singh Rauthan (C.P. 3233), Proprietor of S. S. Rauthan
& Associates, Practicing Company Secretaries, as
interest to the shareholders including the financial results,
the Scrutinizer, for conducting the Postal Ballot Annual Reports, information disclosed to Stock Exchange,
process in a fair and transparent manner. policies of the Company, etc.
Cut-off Date Friday, January 26, 2024
Annual Report: The Annual Report containing Notice of Annual
Dispatch Date of Wednesday, January 31, 2024
General Meeting, Audited Annual Accounts, Directors’ Report,
Notice
Corporate Governance Report, Auditors’ Report and other
E-voting period Commenced on Thursday, February 1, 2024 at
important information is circulated to members and others
9:00 A.M. (IST) and ended on Friday, March 1, 2024
at 5:00 P.M. (IST). entitled thereto. The Management Discussion and Analysis
(MDA) Report, Business Responsibility and Sustainability
The Postal Ballot was conducted by the scrutinizer and a report Report (BRSR) and Reasonable Assurance of BRSR Core form
was submitted to Ms. Sylvia Furtado, Company Secretary of part of the Annual Report. The Annual Report is also available
the Company. The result of the voting conducted through on the Company’s website.
Postal Ballot is as under:
NSE Electronic Application Processing System (NEAPS) and
% of votes in % of votes BSE Listing Centre: The NSE and the BSE have developed
Particulars favour against
web-based applications, NEAPS and BSE Listing Centre for
Appointment of Mr. V. Srinivasa Rangan 98.7254 1.2746
as a Non-Executive Director (Nominee corporates to electronically file compliances such as financial
of HDFC Bank Limited, Promoter of the results, shareholding pattern and corporate governance
Company) report etc.

Accordingly, the Resolution as set out in the Postal Ballot Notice SEBI Complaints Redress System (SCORES): Shareholders
dated January 11, 2024 was passed with requisite majority on complaints are also processed through a centralised web based
March 1, 2024. Please refer to notice of Postal Ballot at https:// complaint redressal system, SCORES. This system enables the
www.hdfcfund.com/about-us/financial-information/annual- Company to have a centralised database of the complaints and
reports. The details of the voting results of Postal Ballot in upload online action taken reports. Investors can also view the
terms of the provisions of Regulation 44(3) of the Listing current status of and actions taken on their complaints.
Regulations and the Scrutinizer's Report were submitted to the
Online Dispute Resolution Portal (ODR Portal): SEBI vide its
Stock Exchanges i.e. BSE Limited and National Stock Exchange
Master Circular dated July 31, 2023 (updated as on August 4,
of India Limited on March 1, 2024 and are also available on the
2023 and December 20, 2023) has provided an online dispute
website of the Company.
redressal forum/portal for redressing the unresolved queries
of the shareholder(s).

136 POWERED BY PURPOSE

 STATUTORY REPORTS CORPORATE GOVERNANCE REPORT

Pursuant to above-mentioned master circular, post exhausting Disclosure of certain type of agreement binding the
the option to resolve their grievances with the RTA/ Company Company
directly and through existing SCORES platform, the investors There are no agreements entered into by the shareholders,
can initiate dispute resolution through the ODR Portal (https:// promoters, promoter group entities, related parties, directors,
smartodr.in/login) and the same can also be accessed through key managerial personnel, employees of the Company or
the Company’s website https://www.hdfcfund.com/contact- Holding or Subsidiary Company of the Company, among
us/stakeholders-information-and-helpdesk themselves or with the Company or with a third party, which
Web-based Query Redressal System: Members may utilise either directly or indirectly had a potential to impact the
the facility extended by the Registrar and Share Transfer Agent management or control of the Company or had imposed any
for redressal of queries, by visiting https://ris.kfintech.com/ restrictions or created any liability upon the Company as
clientservices/isc and clicking on ‘Post a Query’ option for specified in Clause 5A of Paragraph A of Part A of Schedule III
query registration through an identity registration process. of Securities and Exchange Board of India (Listing Obligations
Investors can submit their query provided on the above and Disclosure Requirements) Regulations, 2015.
website, that would generate the query registration number.
For accessing the status/response to the query submitted, Whistle Blower Policy/Vigil Mechanism
the query registration number can be used at the option This Policy has been formulated for Directors and employees to
‘VIEW REPLY’ after 24 hours. Investors can continue to put an report concerns about unethical behaviour, actual or suspected
additional query, if any, relating to the grievance till they get a fraud or violation of the Company’s Code of Business Conduct
satisfactory reply. and Ethics Policy. The Company has adopted a third party web
based reporting tool which provides a secure and confidential
Disclosures platform to report genuine concerns and can be accessed by all
Related Party Transactions employees/ Directors/ stakeholders for lodging a complaint or
expressing genuine concerns.
During the FY 2023-24, the Company has not entered into any
materially significant related party transaction that may have During the year, no person was denied access to the Audit
potential conflict with the interest of the Company at large. Committee for expressing their concerns or reporting
Transactions with related parties are disclosed in notes to grievances under the Whistle Blower Policy and/or
financial statements. vigil mechanism.

Related Party Transactions Policy ensures proper approval The Policy is available at https://www.hdfcfund.com/about-us/
and reporting of the concerned transactions between the corporate-governance/code-policy.
Company and related parties. The Policy can be accessed
at https://www. hdfcfund.com/about-us/corporate- Code for Prevention of Insider Trading
governance/code-policy. AMC Share Dealing Code (“Code”) provides a framework which
deals with the internal procedures and conduct in dealing with
Non-compliance/Penalties/Strictures Imposed the securities of the Company. The Code has been formulated
No penalties or strictures were imposed on the Company in compliance with SEBI (Prohibition of Insider Trading)
by the stock exchange(s) or SEBI or any statutory authority Regulations, 2015.
on any matter related to the capital markets during the last
Pursuant to the above, the Company has put in place adequate
three years.
and effective system of internal controls to ensure compliance
It may be noted that the Company receives administrative with the requirements of SEBI (Prohibition of Insider Trading)
warnings/deficiency letters in the regular course of its business Regulations, 2015.
pertaining to Mutual Funds / Portfolio Management Services
pursuant to regulatory inspections conducted by SEBI from
time to time. Necessary corrective actions in this regard are
taken by the Company.

ANNUAL REPORT 2023-24 137

HDFC ASSET MANAGEMENT COMPANY LIMITED

Compliance with Mandatory and Adoption of Commodity Price Risk or Foreign Exchange Risk and
Non-Mandatory Requirements Hedging Activities
Your Company has complied with all the mandatory corporate As such, your Company is not exposed to any commodity price
governance requirements under the Listing Regulations. or material foreign exchange risk and hence the disclosure
Specifically, your Company confirms compliance with under Clause 9(n) of Part C of Schedule V of the Listing
Corporate Governance requirements specified in Regulations Regulations, in terms of the format prescribed vide SEBI Master
17 to 27 and clauses (b) to (i) of sub-regulation (2) of regulation Circular dated July 11, 2023, is not applicable.
46 of the Listing Regulations.
Fees Paid to Statutory Auditor
M/s. Bhandari & Associates, Practicing Company Secretaries,
have certified that your Company has complied with the Details of fees paid to the Statutory Auditor, M/s. B S R & Co.
mandatory requirements as stipulated under the Listing LLP, Chartered Accountants and all entities in the network
Regulations. The certificate forms part of this Report. firm/ network entity, of which the Statutory Auditor is a part,
for all services taken by your Company and its subsidiary, on a
Your Company has also obtained a certificate from consolidated basis, during FY 2023-24 are as under:
M/s. Bhandari & Associates, Practicing Company Secretaries,
confirming that none of the Directors on the Board of your Particulars Amount (in Cr.)

Company have been debarred or disqualified from being Audit Fees 0.36
appointed or continuing as directors of companies by SEBI/ Tax audit fee 0.04
Taxation Matters 0.00
Ministry of Corporate Affairs or any such statutory authority.
Reimbursement of Expenses 0.07
The said certificate forms part of this Report.
Limited Review Fees 0.21
Your Company has fulfilled the following non-mandatory Group Audit and Reviews 0.34
requirements as prescribed in Part E of Schedule II Regulation Other Services 0.31
27(1) of Listing Regulations. Total 1.33

Notes:
Modified Opinion(s) in Audit Report
1) The above amount includes amount accrued as payable
Your Company’s financial statements have unmodified at the year end.
audit opinions.
2) The above details have been compiled based on the list of
entities provided by the statutory auditors.
Separate posts of Chairperson and the Managing Director
or the Chief Executive Officer 3) Fees for Other Services primarily includes fee towards
assurance service as required under the Business
Your Company has appointed separate persons to the post of
Responsibility and Sustainability Report (BRSR) Core
the Chairperson and the Managing Director.
prescribed by Securities and Exchange Board of India

Reporting of Internal Auditor

Disclosure under Sexual Harassment of Women at
The Internal Auditors of the Company report directly to the Workplace (Prevention, Prohibition and Redressal) Act,
Audit Committee. 2013 (POSH)
Your Company has zero tolerance for sexual harassment at
Material Subsidiary
workplace and is compliant with provisions relating to the
In accordance with Regulation 16(1)(c) of the Listing Regulations, constitution of Internal Complaints Committee under the
your Company has formulated Policy for determining Material Sexual Harassment of Women at Workplace (Prevention,
Subsidiary which is available at https://www.hdfcfund.com/ Prohibition and Redressal) Act, 2013 (POSH).
about-uus/governance/codes-policies. Your Company has
a wholly owned subsidiary company namely “HDFC AMC During the year, the Internal Complaints Committee received
International (IFSC) Limited” which was incorporated on no complaint pertaining to sexual harassment.
May 27, 2022. However, presently the said subsidiary is not a
material subsidiary.

138 POWERED BY PURPOSE

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Loans and advances The declaration to this effect signed by Mr. Navneet Munot,
The Company and its subsidiary have not given any Loans and Managing Director (MD) & CEO of the Company forms part of
advances in the nature of loan to firms/companies in which this Report.
directors are interested.
MD/CFO Certification
Code of Conduct Necessary certification has been issued by Mr. Navneet Munot,
Your Company has adopted a Code of Conduct for all MD & CEO and Mr. Naozad Sirwalla, CFO to the Board in terms
employees including the members of the Board and Senior of Regulation 17 read with Schedule II Part B of the Listing
Management Personnel. All members of the Board and Senior Regulations. A copy of this certificate forms part of this Report.
Management Personnel have affirmed compliance with the said
Code of Conduct for FY 2023-24. Demat Suspense Account/Unclaimed Suspense Account
The Company does not have any equity shares lying in Demat
suspense account/unclaimed suspense account.

ANNUAL REPORT 2023-24 139

HDFC ASSET MANAGEMENT COMPANY LIMITED

General Shareholder Information

25th Annual General Meeting

Day/Date : Thursday, July 25, 2024

Time : 3.00 p.m. (IST)
Venue : Annual General Meeting through Video Conferencing/ Other Audio Visual Means (VC/OAVM
facility) [Deemed Venue for Meeting: Registered Office: "HDFC House", 2nd Floor, H.T. Parekh
Marg, 165-166, Backbay Reclamation, Churchgate, Mumbai-400 020]
Financial Year : April 1, 2023 to March 31, 2024

Dividend Distribution Policy:

The Company ensures that an appropriate balance is maintained between adequately rewarding the shareholders and ensuring
that adequate financial resources are available to fuel the growth aspirations of the Company. Company’s Dividend Distribution
Policy specifies the financial parameters that will be considered when declaring dividends, internal and external factors for
declaring dividends and the circumstances under which shareholders can or cannot expect a dividend. The Policy is available on
the website of the Company at https://www.hdfcfund.com/about-us/governance/codes-policies.

Dividend Payment Date:

The Board of Directors at its meeting held on June 7, 2024 has declared Interim Dividend aggregating to ` 70/- per equity share
of ` 5/- each. The dividend will be paid on or before June 30, 2024.

Unclaimed Dividend
The details of the last date for claiming the unclaimed dividends from the Company, prior to transfer to IEPF are as under:

Financial Year Date of payment Last date to claim from the Company prior to transfer to IEPF

Interim dividend 2018-19 March 12, 2019 March 29, 2026

Final dividend 2018-19 July 17, 2019 August 18, 2026
Dividend 2019-20 July 24, 2020 August 26, 2027
Dividend 2020-21 July 17, 2021 August 18, 2028
Dividend 2021-22 June 30, 2022 July 31, 2029
Dividend 2022-23 June 27, 2023 July 27, 2030

E-voting Period
Starts:- Sunday, July 21, 2024 at 10.00 a.m. (IST)

Ends: Wednesday, July 24, 2024 at 05.00 p.m. (IST)

Cut-off date for e-voting: Thursday, July 18, 2024. Shareholders holding shares as on cut-off date shall be eligible to vote either
through remote e-voting or during the AGM.

140 POWERED BY PURPOSE

 STATUTORY REPORTS CORPORATE GOVERNANCE REPORT

Listing Details
Name of Stock Exchange Stock Code

BSE Limited (BSE)

Phiroze Jeejeebhoy Towers,
541729
Dalal Street,
Mumbai 400 001.
National Stock Exchange of India Limited (NSE)
Exchange Plaza, Plot No. C-1, Block G,
HDFCAMC
Bandra Kurla Complex,
Bandra (E), Mumbai 400 051.

ISIN for Depositories – INE127D01025

The Company has paid listing fees at both the exchanges and has complied with the listing requirements.

Share Price data

The monthly high and low prices and volume of the shares traded on BSE Limited (BSE) and the National Stock Exchange of India
Limited (NSE) for the financial year ended March 31, 2024 are as under:

BSE Limited National Stock Exchange of India Limited

Months No of Shares No of Shares
High Low High Low
Traded Traded
April 2023 1,821.1 1,705 1,81,708 1,821.65 1,705.10 57,51,610
May 2023 1,969 1,739 13,89,538 1,970.00 1,740.00 97,21,672
June 2023 2,307.15 1,886 2,28,96,051 2,349.90 1,885.55 2,63,39,873
July 2023 2,583.1 2,218.6 7,14,927 2,589.35 2,218.55 1,48,47,283
August 2023 2,638.65 2,372.2 6,41,095 2,639.90 2,371.55 2,44,13,862
September 2023 2,755 2,422.35 4,37,245 2,755.00 2,422.00 1,38,40,821
October 2023 2,929 2,619.3 5,72,347 2,930.00 2,618.00 1,31,64,146
November 2023 2,995 2,715.65 2,86,860 3,000.20 2,713.00 86,93,906
December 2023 3,289 2,852.85 5,63,967 3,290.45 2,924.65 97,89,480
January 2024 3,613.75 3,169.2 5,45,560 3,612.00 3,181.50 1,15,96,708
February 2024 4,066.1 3,518.4 3,17,133 4,066.50 3,513.15 1,12,96,778
March 2024 3,875 3,580.15 1,72,466 3,876.30 3,582.35 67,91,739
Source: BSE and NSE Website

ANNUAL REPORT 2023-24 141

 HDFC ASSET MANAGEMENT COMPANY LIMITED

Stock Performance in comparison to broad-based indices

The charts below show the comparison of the Company’s share price movement on NSE and BSE vis-à-vis the movement of the
NSE Nifty 50 and S&P BSE Sensex indices respectively, for the financial year ended March 31, 2024:

HDFC AMC – NSE Vs NSE NIFTY 50

(K) (Index)

4,500 25,000

4,000

3,500 20,000

3,000

NSE NIFTY 50
HDFC AMC

15,000
2,500

2,000
10,000
1,500

1,000 5,000
500

0 0
May-23

Nov-23
Aug-23

Dec-23
Sep-23

Oct-23

Mar-24
Jun-23

Feb-24
Jan-24
Apr-23

Jul-23

NSE NIFTY 50 HDFC AMC - NSE

HDFC AMC – BSE Vs S&P BSE SENSEX

(K) (Index)

4,500 80,000

4,000 70,000
3,500
60,000
3,000

Bse Sensex
50,000
HDFC AMC

2,500
40,000
2,000
30,000
1,500
20,000
1,000

500 10,000

0 0
May-23

Nov-23
Aug-23

Dec-23
Sep-23

Oct-23

Mar-24
Jun-23

Feb-24
Jan-24
Apr-23

Jul-23

S&P BSE Sensex HDFC AMC - NSE

Sources: BSE and NSE Website

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 STATUTORY REPORTS CORPORATE GOVERNANCE REPORT

The Equity Shares of the Company were not suspended from KPRISM: A mobile application as well as a webpage which allows
trading anytime during the FY 2023-24. users to access Folio details, Interest and Dividend status,
FAQs, ISR Forms and full suite of other investor services.
Registrar and Transfer Agent (RTA):
KFin Technologies Limited URL: https://kprism.kfintech.com/signin.aspx.

(Formerly known as KFin Technologies Private Limited) The e-mail ID, [email protected], has
Selenium Tower B, Plot 31-32, been created for redressal of investor complaints and the same
is disclosed on the Company’s website.
Financial District, Nanakramguda,
Serilingampally Mandal, Share Transfer System
Hyderabad – 500 032, Telangana. The Company’s share transfer and related operations is
Website: h t t p s : // w w w . k f i n t e c h . c o m a n d / or operated through its Registrar and Share Transfer Agent (RTA)
https://ris.kfintech.com/ – KFin Technologies Limited.
E-mail: [email protected] In terms of Regulation 40(1) of SEBI Listing Regulations,
Toll Free no.: 1- 800-309-4001 as amended from time to time, transfer, transmission
and transposition of securities shall be effected only in
For any assistance regarding dematerialisation of shares, share
dematerialized form.
transfers, transmissions, change of address, registration of
e-mail id, non-receipt of dividend or any other query relating Shareholders may please note that SEBI vide its Circular
to shares, please write to our RTA at aforesaid address. No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/8 dated
January 25, 2022 has mandated the Listed Companies to
Members are requested to note that, as an ongoing endeavor to
issue securities in dematerialized form only and for processing
enhance Investor experience and leverage new technology, our
service requests viz. issue of duplicate securities certificate,
registrar and transfer agents, KFIN Technologies Limited have
claim from Unclaimed Suspense Account; Renewal/ Exchange
been continuously developing new applications. Here is a list
of securities certificate; Endorsement; Sub-division/
of applications that has been developed for our shareholders.
Splitting of securities certificate; Consolidation of securities
Shareholders Support Centre: A webpage accessible via any certificates/folios; Transmission and Transposition, the
browser enabled system. Shareholders can use a host of shareholders holding shares in physical form, are required to
services like Post a Query, raise a service request, Track the make service requests by submitting a duly filled and signed
status of their DEMAT and REMAT request, Dividend status, prescribed Form ISR – 4, the format of which is available on the
Interest and Redemption status, Upload exemption forms Company’s website under the link at https://www.hdfcfund.
(TDS), Download all ISR and other related forms. com/information/ forms-physical-shareholders.

URL: https://ris.kfintech.com/clientservices/isc/default.aspx In view of above, the Shareholders holding equity shares of

the Company in physical form are requested to kindly get their
eSign Facility: Common and simplified norms for processing
equity shares converted into demat/ electronic form to get
shareholders' service requests by RTAs and norms for
inherent benefits of dematerialisation and also considering
furnishing PAN, KYC details and Nomination requires that
that physical transfer of equity shares/ issuance of equity
eSign option be provided to shareholders for raising service
shares in physical form have been disallowed by SEBI.
requests. KFIN Technologies Limited is the only RTA which has
enabled the option and can be accessed via the link below.
Norms for updation of Know Your Customer (KYC) details
https://ris.kfintech.com/clientservices/isr/isr1.aspx?mode for shares held in physical form
=f3Y5zP9DDNI%3d SEBI vide its Circular dated November 17, 2023 has mandated
KYC Status: Shareholders can access the KYC status of all shareholders holding shares in physical form to furnish
their folio. The webpage has been created to ensure that PAN (compulsorily linked with Aadhaar), nomination, contact
shareholders have the requisite information regarding details, bank account details and specimen signature to RTA.
their folios. Presently, the Company has only 1 (one) shareholder holding
URL: https://ris.kfintech.com/clientservices/isc/kycqry.aspx 2 (two) shares in physical form and whose KYC details are
updated in the records of Registrar and Share Transfer Agent
of the Company.

ANNUAL REPORT 2023-24 143

HDFC ASSET MANAGEMENT COMPANY LIMITED

Category wise Shareholding pattern as on March 31, 2024

Category of Shareholders Number of Shares % of Total Shares
Promoter 11,21,79,830 52.55
Individuals (includes HUFs) 1,68,20,798 7.88
FIIs/ QFIs/ FPIs 4,27,09,099 20.01
Mutual Funds 2,31,90,317 10.86
Financial institutions/Banks 200 0.00
Bodies corporate 10,76,343 0.51
NRIs/foreign nationals 8,82,329 0.41
Directors & their Relatives 4,95,231 0.23
Clearing members 34,677 0.02
Alternative Investment Funds 7,40,935 0.35
Qualified Institutional Buyers 1,52,93,599 7.16
NBFC 703 0.00
Trusts 6,675 0.00
Key Managerial Personnel 52,968 0.02
Central Government / State Government(s) 296 0.00
Total 21,34,84,000 100.00

Distribution of Shareholding as on March 31, 2024

SR.
Category (Shares) No. of Holders % To Holders No. of Shares % To Equity
no
1 1 - 5000 4,35,512 99.85 1,44,90,013 6.79
2 5001 - 10000 221 0.05 16,20,042 0.76
3 10001 - 20000 143 0.03 20,04,434 0.94
4 20001 - 30000 56 0.01 13,96,601 0.65
5 30001 - 40000 42 0.01 14,66,760 0.69
6 40001 - 50000 29 0.01 13,41,118 0.63
7 50001 - 100000 79 0.02 56,70,701 2.65
8 100001 - 200000 42 0.01 59,49,625 2.79
9 200001 and above 59 0.01 17,95,44,706 84.10
TOTAL: 4,36,183 100.00 21,34,84,000 100.00

Dematerialization of Shares and Liquidity as on March 31, 2024

Equity Shares of ` 5/- each
Particulars of Equity Holding
Number % of Total
Dematerialised form
NSDL 20,57,38,376 96.37
CDSL 77,45,622 3.63
Sub – total 21,34,83,998 100
Physical form 2 0
Total 21,34,84,000 100

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 STATUTORY REPORTS CORPORATE GOVERNANCE REPORT

Outstanding GDRs / ADRs/ Warrants or any convertible instruments

There are no outstanding GDRs / ADRs / Warrants or any convertible instruments as on March 31, 2024.

Plant Locations –
The Company is engaged in the business of financial services and has no such plants, however we serve our customers and distribution partners
in over 200 cities through our network of 254 Investor Service Centres (ISCs).

Address for Correspondence with the Company

HDFC Asset Management Company Limited
CIN: L65991MH1999PLC123027
Registered Address: “HDFC House”, 2nd Floor,
H. T. Parekh Marg, 165-166, Backbay Reclamation,
Churchgate, Mumbai – 400020.
Tel.: 022 – 66316333 Fax: 022 – 66580203
Website: www.hdfcfund.com
E-mail: [email protected]
List of all credit ratings obtained by the entity along with any revisions thereto during the relevant financial year, for all debt
instruments of such entity or any fixed deposit programme or any scheme or proposal of the listed entity involving mobilization
of funds, whether in India or abroad. – Not Applicable

Declaration by the Managing Director & Chief

Executive Officer
[Regulation 34(3) read with Schedule V (Part D) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015]

To the Members of

HDFC Asset Management Company Limited

I, Navneet Munot, Managing Director & Chief Executive Officer of HDFC Asset Management Company Limited, hereby confirm
that all the members of the Board of Directors and Senior Management have affirmed compliance with the Code of Conduct of
the Board of Directors and Senior Management of the Company.

Navneet Munot
Managing Director & Chief Executive Officer

Place: Mumbai

Date: June 07, 2024

ANNUAL REPORT 2023-24 145

HDFC ASSET MANAGEMENT COMPANY LIMITED

MD / CFO Certificate

The Board of Directors

HDFC Asset Management Company Limited
HDFC House, H. T. Parekh Marg,
165-166 Backbay Reclamation,
Churchgate, Mumbai 400020.
Sub: Regulation 17(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015
Dear Sir(s)/ Madam(s),
This is to confirm and certify that –

1. We have reviewed financial statements including consolidated financial statement and the cash flow statement for the year
ended March 31, 2024 and that:

i. These statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;

ii. These statements together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.

2. To the best of our knowledge and belief, there are no transactions entered into by the Company during the year which are
fraudulent, illegal or violative of the Company’s code of conduct.

3. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated
the effectiveness of internal control systems of the Company pertaining to financial reporting and have disclosed to the
auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are
aware and the steps taken or propose to take to rectify these deficiencies.

4. We have indicated to the auditors and the Audit committee

i. Significant changes in internal control over financial reporting during the year;

ii. Significant changes in accounting policies during the year and that the same have been disclosed in the notes to the
financial statements; and

iii. Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management
or an employee having a significant role in the Company’s internal control system over financial reporting.

.
Naozad Sirwalla Navneet Munot
Chief Financial Officer Managing Director & Chief Executive Officer

Place: Mumbai
Date: June 07, 2024

146 POWERED BY PURPOSE

 STATUTORY REPORTS CORPORATE GOVERNANCE REPORT

Bhandari & Associates

Company Secretaries
901, Kamla Executive Park, Off. Andheri Kurla Road,
J. B. Nagar, Andheri East. Mumbai- 400 059
Tel: +91 22 4221 5300 Fax: +91 22 4221 5303
Email: [email protected] /[email protected]

To,
The Members,
HDFC Asset Management Company Limited
CIN: L65991MH1999PLC123027

We have examined the compliance of conditions of Corporate Governance by HDFC Asset Management Company Limited (‘the
Company’) for the financial year ended March 31, 2024 as stipulated in chapter IV of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 [‘Listing Regulations’].

The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited
to procedures and implementation thereof, adopted by the Company for ensuring compliance with the conditions of Corporate
Governance. It is neither an audit nor an expression of opinion on the Financial Statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has
complied with the conditions of Corporate Governance as specified in Chapter IV of the Listing Regulations.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the Management has conducted the affairs of the Company.

For Bhandari & Associates

Company Secretaries
Unique Identification No.: P1981MH043700
Peer Review Certificate No.: 611/2019

S. N. Bhandari
Partner
FCS No.: 761; C P No.: 366
Mumbai | May 21, 2024
UDIN: F000761F000408531

ANNUAL REPORT 2023-24 147

HDFC ASSET MANAGEMENT COMPANY LIMITED

Bhandari & Associates

Company Secretaries
901, Kamla Executive Park, Off. Andheri Kurla Road,
J. B. Nagar, Andheri East. Mumbai- 400 059
Tel: +91 22 4221 5300 Fax: +91 22 4221 5303
Email: [email protected] /[email protected]

Certificate of Non-Disqualification of Directors

[Pursuant to Regulation 34(3) and clause 10(i) of Para C of Schedule V of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015]
To,
The Members,
HDFC Asset Management Company Limited
“HDFC House", 2nd Floor,
H.T Parekh Marg,
165-166, Backbay Reclamation,
Churchgate
Mumbai – 400020

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of HDFC Asset
Management Company Limited, having CIN L65991MH1999PLC123027 and having its registered office at "HDFC House", 2nd Floor,
H.T Parekh Marg, 165-166, Backbay Reclamation, Churchgate, Mumbai – 400020 (hereinafter referred to as ‘the Company’), produced
before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with clause 10(i) of Para
C of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications [including Directors Identification Number
(DIN) status at the portal www.mca.gov.in] as considered necessary and explanations furnished to us by the Company & its
officers, we hereby certify that none of the Directors on the Board of the Company as stated below for the financial year ended
on March 31, 2024 have been debarred or disqualified from being appointed or continuing as Directors of companies by the
Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.
Sr. Date of
Name of Director DIN
No. Appointment
1. Mr. Deepak S. Parekh 00009078 04/07/2000
2. Ms. Renu Sud Karnad 00008064 04/07/2000
3. Mr. V. Srinivasa Rangan 00030248 12/01/2024
4. Ms. Roshni Nadar Malhotra 02346621 27/04/2019
5. Mr. Jairaj Purandare 00159886 31/10/2018
6. Mr. Dhruv Subodh Kaji 00192559 31/10/2018
7. Mr. Parag Shah 00374944 22/01/2019
8. Mr. Sanjay Bhandarkar 01260274 31/10/2018
9. Mr. Navneet Munot 05247228 16/02/2021

Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management of the
Company. Our responsibility is to express an opinion based on our verification. This certificate is neither an assurance as to the future
viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

For Bhandari & Associates

Company Secretaries
Unique Identification No.: P1981MH043700
Peer Review Certificate No.: 611/2019
S. N. Bhandari
Partner
FCS No.: 761; C P No.: 366
Mumbai | May 21, 2024
UDIN: F000761F000408498

148 POWERED BY PURPOSE

Financial Statements

150
Standalone Financial Statements 150

Consolidated Financial Statements 222

HDFC ASSET MANAGEMENT COMPANY LIMITED

Independent Auditor’s Report

To the Members of HDFC Asset Management Company Basis for Opinion

Limited
We conducted our audit in accordance with the Standards
Report on the Audit of the Standalone Financial Statements on Auditing (SAs) specified under Section 143(10) of the Act.
Opinion Our responsibilities under those SAs are further described in
the Auditor’s Responsibilities for the Audit of the Standalone
We have audited the standalone financial statements of HDFC
Financial Statements section of our report. We are independent
Asset Management Company Limited (the “Company”) which
of the Company in accordance with the Code of Ethics issued by
comprise the standalone balance sheet as at March 31, 2024,
the Institute of Chartered Accountants of India together with
and the standalone statement of profit and loss (including
the ethical requirements that are relevant to our audit of the
other comprehensive income), standalone statement of
standalone financial statements under the provisions of the
changes in equity and standalone statement of cash flows
Act and the Rules thereunder, and we have fulfilled our other
for the year then ended, and notes to the standalone financial
ethical responsibilities in accordance with these requirements
statements, including material accounting policies and other
and the Code of Ethics. We believe that the audit evidence we
explanatory information (hereinafter referred to as "the
have obtained is sufficient and appropriate to provide a basis
standalone financial statements").
for our opinion on the standalone financial statements.
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone Key Audit Matter
financial statements give the information required by the
Key audit matters are those matters that, in our professional
Companies Act, 2013 (“Act”) in the manner so required and
judgement, were of most significance in our audit of the
give a true and fair view in conformity with the accounting
standalone financial statements of the current period. These
principles generally accepted in India, of the state of affairs
matters were addressed in the context of our audit of the
of the Company as at March 31, 2024, and its profit and other
standalone financial statements as a whole, and in forming our
comprehensive income, changes in equity and its cash flows
opinion thereon, and we do not provide a separate opinion on
for the year ended on that date.
these matters.

Key Audit Matter

See Note 3.5 and 19 to standalone financial statements
The key audit matter How the matter was addressed in our audit
Investment Management Fee is a significant account balance In view of the significance of the matter we applied the
in the Standalone Statement of Profit and Loss. Investment following audit procedures in this area, among others to
management fees from the Mutual fund consists of fees obtain sufficient appropriate audit evidence:
from various schemes which invest in different categories of
securities in the market like Equity, Debt etc.
We have identified revenue from investment management Testing of Design and Operating Effectiveness of
service as a key audit matter since: controls:-
1. The calculation of investment management fees is a i. 
Understood and evaluated the design and
percentage of the assets under management ('AUM') implementation of authorisation controls and other
managed by the Company. There is a process wherein key controls relating to recognition of investment
approved fee rates is a manual input in the system for management fee;
computation of Investment Management Fee income. ii. Test checked the operating effectiveness of
AUM is calculated by the system on a daily basis for authorisation controls, and other key controls over
each scheme. recognition of investment management fee.

150 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

The key audit matter How the matter was addressed in our audit
2. Multiple schemes of HDFC Mutual Fund require effective Substantive tests:
monitoring over key financial terms and conditions iii. Evaluated the appropriateness of revenue recognition in
being captured and applied accurately. Any discrepancy respect of investment management fee income based
in such computations could result in misstatement on the requirements of Ind AS 115;
of investment management fee recognised in the
iv. 
Obtained and tested arithmetical accuracy of
Standalone financial statements
investment management fee calculations and reconciled
investment management fee to amounts included in
standalone financial statements for completeness of
income recognition;
v. Test checked that investment management fee rates
were approved by authorised personnel before being
manually entered in the system;
vi. Obtained and read the investment management fee
certification reports, issued by the statutory auditors of
mutual fund schemes for such work and reconciled the
certified amounts with the accounting records;
vii. Test checked the investment management fee invoices
and reconciled with the accounting records;
viii. 
Test checked the receipts of money of Investment
Management fee income in the bank statements;
ix. Evaluated the adequacy of disclosures relating to the
investment management fee earned by the Company.

Other Information Act with respect to the preparation of these standalone

financial statements that give a true and fair view of the
The Company’s Management and Board of Directors are
Standalone state of affairs, statement of profit/ loss and
responsible for the other information. The other information
other comprehensive income, statement of changes in
comprises the information included in the Annual report, but
equity and cash flows of the Company in accordance with the
does not include the financial statements and auditor’s report
accounting principles generally accepted in India, including
thereon. The Annual report is expected to be made available
the Indian Accounting Standards (Ind AS) specified under
to us after the date of this auditor’s report.
Section 133 of the Act. This responsibility also includes
Our opinion on the standalone financial statements does not maintenance of adequate accounting records in accordance
cover the other information and we will not express any form with the provisions of the Act for safeguarding of the assets
of assurance conclusion thereon. of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
In connection with our audit of the standalone financial
accounting policies; making judgements and estimates that
statements, our responsibility is to read the other information
are reasonable and prudent; and design, implementation
identified above when it becomes available and, in doing
and maintenance of adequate internal financial controls,
so, consider whether the other information is materially
that were operating effectively for ensuring the accuracy
inconsistent with the standalone financial statements or our
and completeness of the accounting records, relevant to
knowledge obtained in the audit, or otherwise appears to be
the preparation and presentation of the standalone financial
materially misstated.
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Management's and Board of Directors
In preparing the standalone financial statements, the
Responsibilities for the Standalone Financial
Management and Board of Directors are responsible for
Statements assessing the Company’s ability to continue as a going
The Company’s Management and Board of Directors are concern, disclosing, as applicable, matters related to going
responsible for the matters stated in Section 134(5) of the concern and using the going concern basis of accounting

ANNUAL REPORT 2023-24 151

HDFC ASSET MANAGEMENT COMPANY LIMITED

unless the Board of Directors either intends to liquidate the statements and, based on the audit evidence obtained,
Company or to cease operations, or has no realistic alternative whether a material uncertainty exists related to events
but to do so. or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we
The Board of Directors is also responsible for overseeing the
conclude that a material uncertainty exists, we are required
Company’s financial reporting process.
to draw attention in our auditor’s report to the related
disclosures in the standalone financial statements or, if
Auditor’s Responsibilities for the Audit of the such disclosures are inadequate, to modify our opinion.
Standalone Financial Statements Our conclusions are based on the audit evidence obtained
Our objectives are to obtain reasonable assurance about up to the date of our auditor’s report. However, future
whether the standalone financial statements as a whole events or conditions may cause the Company to cease to
are free from material misstatement, whether due to fraud continue as a going concern.
or error, and to issue an auditor’s report that includes our • Evaluate the overall presentation, structure and content
opinion. Reasonable assurance is a high level of assurance, of the standalone financial statements, including the
but is not a guarantee that an audit conducted in accordance disclosures, and whether the standalone financial
with SAs will always detect a material misstatement when it statements represent the underlying transactions and
exists. Misstatements can arise from fraud or error and are events in a manner that achieves fair presentation.
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic We communicate with those charged with governance
decisions of users taken on the basis of these standalone regarding, among other matters, the planned scope and
financial statements. timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
As part of an audit in accordance with SAs, we exercise during our audit.
professional judgement and maintain professional skepticism
throughout the audit. We also: We also provide those charged with governance with a
statement that we have complied with relevant ethical
• Identify and assess the risks of material misstatement of requirements regarding independence, and to communicate
the standalone financial statements, whether due to fraud with them all relationships and other matters that may
or error, design and perform audit procedures responsive reasonably be thought to bear on our independence, and
to those risks, and obtain audit evidence that is sufficient where applicable, related safeguards.
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting From the matters communicated with those charged with
from fraud is higher than for one resulting from error, as governance, we determine those matters that were of
fraud may involve collusion, forgery, intentional omissions, most significance in the audit of the standalone financial
misrepresentations, or the override of internal control. statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s
• Obtain an understanding of internal control relevant to
report unless law or regulation precludes public disclosure
the audit in order to design audit procedures that are
about the matter or when, in extremely rare circumstances,
appropriate in the circumstances. Under Section 143(3)
we determine that a matter should not be communicated in
(i) of the Act, we are also responsible for expressing our
our report because the adverse consequences of doing so
opinion on whether the Company has adequate internal
would reasonably be expected to outweigh the public interest
financial controls with reference to financial statements in
benefits of such communication.
place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
Report on Other Legal and Regulatory
and the reasonableness of accounting estimates and
related disclosures made by the Management and Board Requirements
of Directors. 1. As required by the Companies (Auditor’s Report) Order,
• Conclude on the appropriateness of the Management 2020 (“the Order”) issued by the Central Government
and Board of Directors use of the going concern basis of India in terms of Section 143(11) of the Act, we give in
of accounting in preparation of standalone financial the “Annexure A” a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.

152 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

2 
A. 
As required by Section 143(3) of the Act, we  c) There were no amounts which were required
report that: to be transferred to the Investor Education
and Protection Fund by the Company.
a) 
We have sought and obtained all the
information and explanations which to the best d) (i) 
The management has represented
of our knowledge and belief were necessary that, to the best of their knowledge and
for the purposes of our audit. belief, as disclosed in the Note 37(vi) to
b) In our opinion, proper books of account as the standalone financial statements, no
required by law have been kept by the Company funds have been advanced or loaned or
so far as it appears from our examination of invested (either from borrowed funds or
those books. share premium or any other sources or
kind of funds) by the Company to or in any
c) The standalone balance sheet, the standalone
other person(s) or entity(ies), including
statement of profit and loss (including other
foreign entities (“Intermediaries”), with
comprehensive income), the standalone
the understanding, whether recorded
statement of changes in equity and the
in writing or otherwise, that the
standalone statement of cash flows dealt with
Intermediary shall directly or indirectly
by this Report are in agreement with the books
lend or invest in other persons or entities
of account.
identified in any manner whatsoever by
d) 
In our opinion, the aforesaid standalone or on behalf of the Company (“Ultimate
financial statements comply with the Ind AS Beneficiaries”) or provide any guarantee,
specified under Section 133 of the Act. security or the like on behalf of the
e) On the basis of the written representations Ultimate Beneficiaries.
received from the directors as on March
(ii) The management has represented that,
31, 2024 taken on record by the Board of
to the best of their knowledge and belief,
Directors, none of the directors is disqualified
as disclosed in the Note 37(vi) to the
as on March 31, 2024 from being appointed as a
standalone financial statements, no funds
director in terms of Section 164(2) of the Act.
have been received by the Company from
f) With respect to the adequacy of the internal any person(s) or entity(ies), including
financial controls with reference to financial foreign entities (“Funding Parties”), with
statements of the Company and the operating the understanding, whether recorded in
effectiveness of such controls, refer to our writing or otherwise, that the Company
separate Report in “Annexure B”. shall directly or indirectly, lend or invest
B. With respect to the other matters to be included in in other persons or entities identified
the Auditor’s Report in accordance with Rule 11 of in any manner whatsoever by or on
the Companies (Audit and Auditors) Rules, 2014, in behalf of the Funding Parties (“Ultimate
our opinion and to the best of our information and Beneficiaries”) or provide any guarantee,
according to the explanations given to us: security or the like on behalf of the
Ultimate Beneficiaries.
  a) 
The Company has disclosed the impact
of pending litigations as at March 31, 2024 (iii) 
Based on the audit procedures
on its financial position in its standalone performed that have been considered
financial statements - Refer Note 30(a) to the reasonable and appropriate in the
standalone financial statements. circumstances, nothing has come to
our notice that has caused us to believe
b) 
The Company did not have any long-term
that the representations under sub-
contracts including derivative contracts for
clause (i) and (ii) of Rule 11(e), as provided
which there were any material foreseeable
under (i) and (ii) above, contain any
losses during the year.
material misstatement.

ANNUAL REPORT 2023-24 153

HDFC ASSET MANAGEMENT COMPANY LIMITED

e) The final dividend paid by the Company during audit, we did not come across any instance of
the year, in respect of the same declared audit trail feature being tampered with.
for the previous year, is in accordance with
C. With respect to the matter to be included in the
Section 123 of the Act to the extent it applies
Auditor’s Report under Section 197(16) of the Act:
to payment of dividend.
In our opinion and according to the information and
As stated in Note 33 to the standalone
explanations given to us, the remuneration paid by
financial statements, the Board of Directors
the Company to its directors during the current year
of the Company has proposed final dividend
is in accordance with the provisions of Section 197
for the year which is subject to the approval
of the Act. The remuneration paid to any director
of the members at the ensuing Annual
is not in excess of the limit laid down under Section
General Meeting. The dividend declared is in
197 of the Act. The Ministry of Corporate Affairs has
accordance with Section 123 of the Act to the
not prescribed other details under Section 197(16)
extent it applies to declaration of dividend.
of the Act which are required to be commented
f) Based on our examination which included test upon by us.
checks, the Company has used accounting
For B S R & Co. LLP
softwares for maintaining its books of account
Chartered Accountants
which, along with access management tools,
Firm’s Registration No.: 101248W/W-100022
as applicable have a feature of recording
audit trail (edit log) facility and the same has
Kapil Goenka
operated throughout the year for all relevant
Partner
transactions recorded in the respective
Place: Mumbai Membership No.: 118189
softwares. Further, during the course of our
Date: April 19, 2024 ICAI UDIN: 24118189BKDBBU1620

154 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Annexure A to the Independent Auditor’s Report

on the Standalone Financial Statements of HDFC Asset Management Company Limited for the year ended March 31, 2024

(Referred to in paragraph 1 under ‘Report on Other Legal inventories. Accordingly, clause 3(ii)(a) of the Order
and Regulatory Requirements’ section of our report of is not applicable.
even date) (b)  
According to the information and explanations
(i) (a) (A) The Company has maintained proper records given to us and on the basis of our examination of
showing full particulars, including quantitative the records of the Company, the Company has
details and situation of Property, Plant not been sanctioned any working capital limits
and Equipment. from Banks and financial institutions on the basis
(B) The Company has maintained proper records of security of current assets at any point of time
showing full particulars of intangible assets. during the year. Accordingly, clause 3(ii)(b) of the
Order is not applicable to the Company.
(i) (b) 
According to the information and explanations
given to us and on the basis of our examination of (iii) According to the information and explanations given to
the records of the Company, the Company has us and on the basis of our examination of the records
a regular programme of physical verification of of the Company, the Company has not provided any
its Property, Plant and Equipment by which all guarantee or security or granted any loans or advances in
property, plant and equipment are verified every the nature of loans, secured or unsecured to companies,
year. In accordance with this programme, certain firms, limited liability partnership or any other parties
property, plant and equipment were verified during during the year. The Company has made investments in
the year. In our opinion, this periodicity of physical companies, in respect of which the requisite information
verification is reasonable having regard to the size is as below. The Company has not made any investments
of the Company and the nature of its assets. No in firms, limited liability partnership or any other parties.
discrepancies were noticed on such verification. (a) 
According to the information and explanation
(c) 
According to the information and explanations given to us and on the basis of our examination of
given to us and on the basis of our examination the records of the Company, the Company has not
of the records of the Company, the title deeds provided loans or provided advances in the nature
of immovable properties (other than immovable of loans, or stood guarantee, or provided security to
properties where the Company is the lessee and any other entity. Accordingly, provisions of clauses
the lease agreements are duly executed in favour 3(iii)(a)(c)(d)(e) and (f) of the Order are not applicable
of the lessee) disclosed in the standalone financial to the Company.
statements are held in the name of the Company. (b) 
According to the information and explanations
(d) 
According to the information and explanations given to us and based on the audit procedures
given to us and on the basis of our examination of conducted by us, in our opinion the investments
the records of the Company, the Company has made during the year and the terms and conditions
not revalued its Property, Plant and Equipment on which these are made during the year are, prima
(including Right of Use assets) or intangible assets facie, not prejudicial to the interest of the Company.
or both during the year. (iv) According to the information and explanations given
(e) 
According to the information and explanations to us and on the basis of our examination of records
given to us and on the basis of our examination of the Company, the Company has neither made any
of the records of the Company, there are no investments nor has it given loans or provided guarantee
proceedings initiated or pending against the or security and therefore the relevant provisions of
Company for holding any benami property under Sections 185 and 186 of the Companies Act, 2013 (“the
the Prohibition of Benami Property Transactions Act”) are not applicable to the Company. Accordingly,
Act, 1988 and rules made thereunder. clause 3(iv) of the Order is not applicable.

(ii) (a) 
The Company is a service company, primarily (v) The Company has not accepted any deposits or amounts
rendering asset management services. which are deemed to be deposits from the public.
Accordingly, it does not hold any physical Accordingly, clause 3(v) of the Order is not applicable.

ANNUAL REPORT 2023-24 155

HDFC ASSET MANAGEMENT COMPANY LIMITED

(vi) According to the information and explanations given of undisputed statutory dues including Goods and
to us, the Central Government has not prescribed the Service Tax, Provident Fund, Income-Tax or Cess or
maintenance of cost records under Section 148(1) of the other statutory dues have been regularly deposited
Act for the services provided by it. Accordingly, clause by the Company with the appropriate authorities.
3(vi) of the Order is not applicable. According to the information and explanations
(vii) (a) The Company does not have liability in respect of given to us and on the basis of our examination
Service tax, Duty of excise, Sales tax and Value added of the records of the Company, no undisputed
tax during the year since effective July 01, 2017, amounts payable in respect of Goods and Service
these statutory dues has been subsumed into GST. Tax, Provident Fund, Income-Tax or Cess or other
According to the information and explanations statutory dues were in arrears as at March 31, 2024
given to us and on the basis of our examination of for a period of more than six months from the date
the records of the Company, in our opinion amounts they became payable.
deducted/accrued in the books of account in respect
(b) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, statutory dues relating to Goods and Service Tax and Income tax which have not been deposited on account
of any dispute are as follows:
Period to which the
Name of the statute Nature of the dues Amount (`) Forum where dispute is pending
amount relates
Income Tax Act, 1961 Income Tax 27,05,330 A.Y. 2008- 2009 High Court of Bombay
Income Tax Act, 1961 Income Tax 8,69,200 A.Y. 2009- 2010 Commissioner of Income Tax Appeal
Income Tax Act, 1961 Income Tax 7,41,820 A.Y. 2010- 2011 Deputy Commissioner of Income Tax
Income Tax Act, 1961 Income Tax 1,51,69,450 A.Y. 2012- 2013 Commissioner of Income Tax Appeal
Income Tax Act, 1961 Income Tax 1,71,38,730 A.Y. 2013- 2014 Commissioner of Income Tax Appeal
Income Tax Act, 1961 Income Tax 25,18,810 A.Y. 2014- 2015 Commissioner of Income Tax Appeal
Income Tax Act, 1961 Income Tax 12,67,740 A.Y. 2016- 2017 Commissioner of Income Tax Appeal
Income Tax Act, 1961 Income Tax 1,10,37,950 A.Y. 2017- 2018 Commissioner of Income Tax Appeal
Income Tax Act, 1961 Income Tax 2,39,80,151 A.Y. 2018- 2019 Commissioner of Income Tax Appeal
CGST Act, 2017 (Delhi State) Goods Services Tax 17,81,964 FY 2017-18 Appellate Authority of GST
(viii) According to the information and explanations given to us sheet of the Company, we report that no funds
and on the basis of our examination of the records of the raised on short-term basis have been used for long-
Company, the Company has not surrendered or disclosed term purposes by the Company.
any transactions, previously unrecorded as income in (e) According to the information and explanations given
the books of account, in the tax assessments under the to us and on an overall examination of the standalone
Income Tax Act, 1961 as income during the year. financial statements of the Company, we report that
(ix) (a) According to the information and explanations given the Company has not taken any funds from any entity
to us and on the basis of our examination of the or person on account of or to meet the obligations of
records of the Company, the Company did not have its subsidiary as defined under the Act.
any loans or borrowings from any lender during the (f) According to the information and explanations given
year. Accordingly, clause 3(ix)(a) of the Order is not to us and procedures performed by us, we report
applicable to the Company. that the Company has not raised loans during the
(b) According to the information and explanations given year on the pledge of securities held in its subsidiary
to us and on the basis of our examination of the (as defined under the Act).
records of the Company, the Company has not been (x) (a) The Company has not raised any moneys by way of
declared a wilful defaulter by any bank or financial initial public offer or further public offer (including
institution or government or government authority. debt instruments). Accordingly, clause 3(x)(a) of the
(c) According to the information and explanations given Order is not applicable.
to us by the management, the Company has not (b) According to the information and explanations given
obtained any term loans during the year. Accordingly, to us and on the basis of our examination of the
clause 3(ix)(c) of the Order is not applicable. records of the Company, the Company has not made
(d) According to the information and explanations given any preferential allotment or private placement
to us and on an overall examination of the balance of shares or fully or partly convertible debentures
156 POWERED BY PURPOSE
 FINANCIAL STATEMENTS STANDALONE

during the year. Accordingly, clause 3(x)(b) of the Reserve Bank of India. Accordingly, clause 3(xvi)(c) of
Order is not applicable. the Order is not applicable.
(xi) (a) Based on examination of the books and records of (d) The Company is not part of any group (as per the
the Company and according to the information and provisions of the Core Investment Companies
explanations given to us, no fraud by the Company or (Reserve Bank) Directions, 2016 as amended).
on the Company has been noticed or reported during Accordingly, the requirements of clause 3(xvi)(d) are
the course of the audit. not applicable.
(b) 
According to the information and explanations (xvii) The Company has not incurred cash losses in the current
given to us, no report under sub-section (12) of and in the immediately preceding financial year.
Section 143 of the Act has been filed by the auditors (xviii) There has been no resignation of the statutory auditors
in Form ADT-4 as prescribed under Rule 13 of the during the year. Accordingly, clause 3(xviii) of the Order is
Companies (Audit and Auditors) Rules, 2014 with the not applicable.
Central Government.
(xix) 
According to the information and explanations given
(c) We have taken into consideration the whistle-blower to us and on the basis of the financial ratios, ageing and
complaints received by the Company during the year expected dates of realisation of financial assets and
while determining the nature, timing and extent of payment of financial liabilities, our knowledge of the Board
our audit procedures. of Directors and management plans and based on our
(xii) According to the information and explanations given to us, examination of the evidence supporting the assumptions,
the Company is not a Nidhi Company. Accordingly, clause nothing has come to our attention, which causes us to
3(xii) of the Order is not applicable. believe that any material uncertainty exists as on the date
(xiii) 
In our opinion and according to the information and of the audit report that the Company is not capable of
explanations given to us, the transactions with related meeting its liabilities existing at the date of balance sheet
parties are in compliance with Section 177 and 188 of as and when they fall due within a period of one year from
the Act, where applicable, and the details of the related the balance sheet date. We, however, state that this is not
party transactions have been disclosed in the standalone an assurance as to the future viability of the Company.
financial statements as required by the applicable We further state that our reporting is based on the facts
accounting standards. up to the date of the audit report and we neither give any
guarantee nor any assurance that all liabilities falling due
(xiv) (a) 
Based on information and explanations provided
within a period of one year from the balance sheet date,
to us and our audit procedures, in our opinion, the
will get discharged by the Company as and when they
Company has an internal audit system commensurate
fall due.
with the size and nature of its business.
Also refer to the Other Information paragraph of our main
(b) We have considered the internal audit reports of the
audit report which explains that the other information
Company issued till date for the period under audit.
comprising the information included in Annual report is
(xv) 
In our opinion and according to the information and expected to be made available to us after the date of this
explanations given to us, the Company has not entered auditor’s report.
into any non-cash transactions with its directors
(xx) 
In our opinion and according to the information and
or persons connected to its directors and hence,
explanations given to us, there is no unspent amount
provisions of Section 192 of the Act are not applicable to
under sub-section (5) of Section 135 of the Act pursuant
the Company.
to any project. Accordingly, clauses 3(xx)(a) and 3(xx)(b)
(xvi) (a) The Company is not required to be registered under of the Order are not applicable.
Section 45-IA of the Reserve Bank of India Act,
For B S R & Co. LLP
1934. Accordingly, clause 3(xvi)(a) of the Order is
Chartered Accountants
not applicable.
Firm’s Registration No.: 101248W/W-100022
(b) The Company is not required to be registered under
Section 45-IA of the Reserve Bank of India Act, Kapil Goenka
1934. Accordingly, clause 3(xvi)(b) of the Order is Partner
not applicable. Place: Mumbai Membership No.: 118189
(c) The Company is not a Core Investment Company Date: April 19, 2024 ICAI UDIN: 24118189BKDBBU1620
(CIC) as defined in the regulations made by the

ANNUAL REPORT 2023-24 157

HDFC ASSET MANAGEMENT COMPANY LIMITED

Annexure B to the Independent Auditor’s Report

on the Standalone Financial Statements of HDFC Asset Management Company Limited for the year ended March 31, 2024

Report on the internal financial controls with Auditor’s Responsibility

reference to the aforesaid standalone financial Our responsibility is to express an opinion on the Company’s
statements under Clause (i) of Sub-section 3 of internal financial controls with reference to financial
statements based on our audit. We conducted our audit in
Section 143 of the Act
accordance with the Guidance Note and the Standards on
(Referred to in paragraph 2(A)(f) under ‘Report on Other Auditing, prescribed under Section 143(10) of the Act, to the
Legal and Regulatory Requirements’ section of our extent applicable to an audit of internal financial controls
report of even date) with reference to financial statements. Those Standards
Opinion and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain
We have audited the internal financial controls with reference
reasonable assurance about whether adequate internal
to financial statements of HDFC Asset Management Company
financial controls with reference to financial statements were
Limited (“the Company”) as of March 31, 2024 in conjunction
established and maintained and if such controls operated
with our audit of the standalone financial statements of the
effectively in all material respects.
Company for the year ended on that date.
Our audit involves performing procedures to obtain audit
In our opinion, the Company has, in all material respects,
evidence about the adequacy of the internal financial controls
adequate internal financial controls with reference to
with reference to financial statements and their operating
financial statements and such internal financial controls
effectiveness. Our audit of internal financial controls with
were operating effectively as at March 31, 2024, based on
reference to financial statements included obtaining an
the internal financial controls with reference to financial
understanding of internal financial controls with reference
statements criteria established by the Company considering
to financial statements, assessing the risk that a material
the essential components of internal control stated in the
weakness exists, and testing and evaluating the design
Guidance Note on Audit of Internal Financial Controls Over
and operating effectiveness of internal control based on
Financial Reporting issued by the Institute of Chartered
the assessed risk. The procedures selected depend on
Accountants of India (the “Guidance Note”).
the auditor’s judgement, including the assessment of the
risks of material misstatement of the standalone financial
Management’s and Board of Directors’ statements, whether due to fraud or error.
Responsibilities for Internal Financial Controls
We believe that the audit evidence we have obtained is
The Company’s Management and the Board of Directors sufficient and appropriate to provide a basis for our audit
are responsible for establishing and maintaining internal opinion on the Company’s internal financial controls with
financial controls based on the internal financial controls with reference to financial statements.
reference to financial statements criteria established by the
Company considering the essential components of internal Meaning of Internal Financial Controls with
control stated in the Guidance Note. These responsibilities Reference to Financial Statements
include the design, implementation and maintenance of
adequate internal financial controls that were operating A company's internal financial controls with reference
effectively for ensuring the orderly and efficient conduct to financial statements is a process designed to provide
of its business, including adherence to company’s policies, reasonable assurance regarding the reliability of financial
the safeguarding of its assets, the prevention and detection reporting and the preparation of financial statements for
of frauds and errors, the accuracy and completeness of the external purposes in accordance with generally accepted
accounting records, and the timely preparation of reliable accounting principles. A company's internal financial controls
financial information, as required under the Act. with reference to financial statements include those policies

158 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

and procedures that (1) pertain to the maintenance of records the possibility of collusion or improper management override
that, in reasonable detail, accurately and fairly reflect the of controls, material misstatements due to error or fraud
transactions and dispositions of the assets of the Company; may occur and not be detected. Also, projections of any
(2) provide reasonable assurance that transactions are evaluation of the internal financial controls with reference to
recorded as necessary to permit preparation of financial financial statements to future periods are subject to the risk
statements in accordance with generally accepted accounting that the internal financial controls with reference to financial
principles, and that receipts and expenditures of the Company statements may become inadequate because of changes in
are being made only in accordance with authorisations of conditions, or that the degree of compliance with the policies
management and directors of the Company; and (3) provide or procedures may deteriorate.
reasonable assurance regarding prevention or timely
For B S R & Co. LLP
detection of unauthorised acquisition, use, or disposition of
Chartered Accountants
the Company's assets that could have a material effect on the
Firm’s Registration No.: 101248W/W-100022
financial statements.

Kapil Goenka
Inherent Limitations of Internal Financial Controls Partner
with Reference to Financial Statements Place: Mumbai Membership No.: 118189
Because of the inherent limitations of internal financial Date: April 19, 2024 ICAI UDIN: 24118189BKDBBU1620
controls with reference to financial statements, including

ANNUAL REPORT 2023-24 159

HDFC ASSET MANAGEMENT COMPANY LIMITED

Standalone Balance Sheet

as at March 31, 2024

` (in Crore)
As at As at
Particulars Note No.
March 31, 2024 March 31, 2023
Assets
I Financial Assets
a Cash and Cash Equivalents 4 10.21 3.12
b Bank Balance other than (a) above 5 0.96 0.89
c Receivables
(i) Trade Receivables 6 93.27 183.74
(ii) Other Receivables 7 13.18 12.59
d Investments 8 7,190.03 6,079.16
e Other Financial Assets 9 21.16 31.18
Sub-total - Financial Assets 7,328.81 6,310.68
II Non Financial Assets
a Current Tax Assets (net) 31.04 30.46
b Property, Plant and Equipment 10 136.34 137.59
c Intangible Assets Under Development 10 0.87 2.14
d Goodwill 10 6.04 6.04
e Other Intangible Assets 10 8.92 6.84
f Other Non Financial Assets 11 45.53 42.78
Sub-total - Non Financial Assets 228.74 225.85
Total Assets 7,557.55 6,536.53
Liabilities and Equity
Liabilities
I Financial Liabilities
A Payables
Trade Payables
(i) Total Outstanding Dues of Micro Enterprises and Small Enterprises 12 1.08 -
(ii) Total Outstanding Dues of Creditors Other than Micro Enterprises and 12 37.71 34.38
Small Enterprises
B Other Financial Liabilities 13 206.79 206.06
Sub-total - Financial Liabilities 245.58 240.44
II Non Financial Liabilities
a Current Tax Liabilities (net) 6.26 18.39
b Provisions 14 16.38 12.57
c Deferred Tax Liabilities (net) 15 115.56 100.77
d Other Non Financial Liabilities 16 94.70 55.95
Sub-total - Non Financial Liabilities 232.90 187.68
Total Liabilities 478.48 428.12
III Equity
a Equity Share Capital 17 106.74 106.71
b Other Equity 18 6,972.33 6,001.70
Sub-total - Equity 7,079.07 6,108.41
Total Liabilities and Equity 7,557.55 6,536.53

See summary of material accounting policies and accompanying notes which form an integral part of the standalone financial statements
As per our report attached of even date For and on behalf of the Board of Directors
For B S R & Co. LLP Deepak S. Parekh Navneet Munot
Chartered Accountants Chairman Managing Director & Chief Executive Officer
ICAI Firm Registration No.: 101248W/W-100022 (DIN: 00009078) (DIN: 05247228)
Kapil Goenka Naozad Sirwalla Sylvia Furtado
Partner Chief Financial Officer Company Secretary
Membership No:. 118189 (ACS: 17976)
Mumbai, April 19, 2024

160 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Standalone Statement of Profit and Loss

for the year ended March 31, 2024

` (in Crore except per equity share data)

For the year ended For the year ended
Particulars Note No.
March 31, 2024 March 31, 2023
Revenue from Operations
Asset Management Services 19 2,584.37 2,166.81
Other Income 20 578.06 315.80
Total Income 3,162.43 2,482.61
Expenses
Finance Costs 28 9.09 9.69
Fees and Commission Expenses 2.48 3.68
Employee Benefits Expenses 21 353.46 312.67
Depreciation, Amortisation and Impairment 10 52.26 53.34
Other Expenses 22 266.95 232.62
Total Expenses 684.24 612.00
Profit Before Tax 2,478.19 1,870.61
Tax Expense
Current Tax 25 517.52 421.26
Deferred Tax Charge/(Credit) 25 14.79 25.43
Total Tax Expense 532.31 446.69
Profit After Tax 1,945.88 1,423.92
Other Comprehensive Income
(i) Items that will not be reclassified to profit or loss
- Remeasurement gain/(loss) of the defined benefit plans (2.13) 0.56
(ii) Income tax relating to items that will not be reclassified to profit or loss
- Tax on Remeasurement of the defined benefit plans 0.54 (0.14)
Total Other Comprehensive Income (1.59) 0.42
Total Comprehensive Income 1,944.29 1,424.34
Earnings Per Equity Share (Face Value ` 5) (see note 27)
- Basic 91.15 66.75
- Diluted 91.04 66.73

See summary of material accounting policies and accompanying notes which form an integral part of the standalone financial statements
As per our report attached of even date For and on behalf of the Board of Directors

For B S R & Co. LLP Deepak S. Parekh Navneet Munot

Chartered Accountants Chairman Managing Director & Chief Executive Officer
ICAI Firm Registration No.: 101248W/W-100022 (DIN: 00009078) (DIN: 05247228)

Kapil Goenka Naozad Sirwalla Sylvia Furtado

Partner Chief Financial Officer Company Secretary
Membership No:. 118189 (ACS: 17976)

Mumbai, April 19, 2024

ANNUAL REPORT 2023-24 161

HDFC ASSET MANAGEMENT COMPANY LIMITED

Standalone Statement of Changes in Equity

for the year ended March 31, 2024

A. EQUITY SHARE CAPITAL

` (in Crore)
Balance at the Changes in equity
Balance at the end
Particulars beginning of share capital
of the year
the year during the year
Equity Shares of `5 each (March 31, 2023: `5 each), fully paid up
As at March 31, 2023 106.64 0.07 106.71
As at March 31, 2024 106.71 0.03 106.74

B. OTHER EQUITY
` (in Crore)
Share Reserves and Surplus
Application Share
Capital
Particulars Money - Securities General Options Retained Total
Redemption
Pending Premium Reserve Outstanding Earnings
Reserve
allotment Account
Opening balance as at April 01, 2022 0.00 52.41 591.52 174.97 72.68 4,531.82 5,423.40
Profit for the year - - - - - 1,423.92 1,423.92
Other Comprehensive Income - - - - - - 0.42 0.42
Remeasurement gain/(loss) of the defined
benefit plans (net of tax)
Total Comprehensive Income for the year - - - - - 1,424.34 1,424.34
Final Equity Dividend Paid - - - - - (895.86) (895.86)
Transfer from Share Options Outstanding - - 1.42 - (1.42) - -
Account to Securities Premium (towards
options exercised)
Additions during the year 9.78 - 9.71 - 40.11 - 59.60
Utilised during the year (9.78) - - - - - (9.78)
Changes during the year - - 11.13 - 38.69 528.48 578.30
Closing balance as at March 31, 2023 - 52.41 602.65 174.97 111.37 5,060.30 6,001.70
Opening balance as at April 01, 2023 - 52.41 602.65 174.97 111.37 5,060.30 6,001.70
Profit for the year - - - - - 1,945.88 1,945.88
Other Comprehensive Income - - - - - - (1.59) (1.59)
Remeasurement gain/(loss) of the defined
benefit plans (net of tax)
Total Comprehensive Income for the year - - - - - 1,944.29 1,944.29
Final Equity Dividend Paid - - - - - (1,024.65) (1,024.65)
Transfer from Share Options Outstanding - - 0.58 - (0.58) - -
Account to Securities Premium (towards
options exercised)
Transfer from Share Options Outstanding - - - - (0.00) 0.00 -
Account to Retained Earnings (towards
options lapsed after vesting)
Additions during the year 3.97 - 3.94 - 47.05 - 54.96
Utilised during the year (3.97) - - - - - (3.97)
Changes during the year - - 4.52 - 46.47 919.64 970.63
Closing balance as at March 31, 2024 - 52.41 607.17 174.97 157.84 5,979.94 6,972.33

See summary of material accounting policies and accompanying notes which form an integral part of the standalone financial statements
As per our report attached of even date For and on behalf of the Board of Directors
For B S R & Co. LLP Deepak S. Parekh Navneet Munot
Chartered Accountants Chairman Managing Director & Chief Executive Officer
ICAI Firm Registration No.: 101248W/W-100022 (DIN: 00009078) (DIN: 05247228)
Kapil Goenka Naozad Sirwalla Sylvia Furtado
Partner Chief Financial Officer Company Secretary
Membership No:. 118189 (ACS: 17976)
Mumbai, April 19, 2024

162 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Standalone Statement of Cash Flows

for the year ended March 31, 2024

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
A. Cash Flow from Operating Activities
Profit Before Tax* 2,478.19 1,870.61
Add/(Less): Adjustments for
Depreciation, Amortisation and Impairment 52.26 53.34
Finance Costs 9.09 9.69
Share Based Payments to Employees 47.05 40.11
(Profit)/Loss on Sale of Investments (net) (15.48) (21.21)
Fair Value (Gain)/Loss on Investments (531.18) (260.07)
Net (Gain)/Loss on foreign currency transactions and translations (0.00) (0.01)
(Profit)/Loss on Derecognition of Property, Plant and Equipment and (0.05) (0.11)
Other Intangible Assets (net)
Investment Income from Financial Instruments (25.39) (28.91)
Other Interest Income (2.21) (1.95)
Operating Profit before working capital changes 2,012.28 1,661.49
Adjustments for:
(Increase)/Decrease in Trade Receivables 90.48 (109.21)
(Increase)/Decrease in Other Receivables (0.59) (6.61)
(Increase)/Decrease in Other Financial Assets (0.22) (0.04)
(Increase)/Decrease in Other Non Financial Assets (3.28) (12.47)
Increase/(Decrease) in Trade Payable 4.43 5.15
Increase/(Decrease) in Other Financial Liabilities 6.17 0.88
Increase/(Decrease) in Provisions 3.81 0.78
Increase/(Decrease) in Other Non Financial Liabilities 36.62 19.56
Cash generated from/(used in) operations 2,149.70 1,559.53
Income Tax Paid (529.69) (410.21)
Net cash from/(used in) operating activities (A) 1,620.01 1,149.32
B. Cash Flow from Investing Activities
Purchase of Property, Plant and Equipment and Other Intangible Assets (18.56) (14.10)
Proceeds from Sale of Property, Plant and Equipment and Other Intangible Assets 0.05 0.12
Purchase of Investments (3,634.80) (3,310.33)
Proceeds from Sale of Investments 3,102.24 3,073.54
Investment in Subsidiary Company (31.00) (3.00)
Dividend Received 0.23 0.23
Interest Received 35.10 35.37
Net cash from/(used in) investing activities (B) (546.74) (218.17)

ANNUAL REPORT 2023-24 163

HDFC ASSET MANAGEMENT COMPANY LIMITED

Standalone Statement of Cash Flows

for the year ended March 31, 2024

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
C. Cash Flow from Financing Activities
Proceeds from Issuance of Share Capital 3.97 9.78
Principal Element of Lease Payments (36.41) (34.13)
Interest Element of Lease Payments (9.09) (9.69)
Final Equity Dividend Paid (1,024.65) (895.86)
Net cash from/(used in) financing activities (C) (1,066.18) (929.90)
Net Increase/(Decrease) in Cash and Cash Equivalents (A + B + C) 7.09 1.25
Cash and Cash Equivalents at the beginning of the year 3.12 1.87
Exchange differences on translation of foreign currency cash and cash equivalents (0.00) (0.00)
Cash and Cash Equivalents at the end of the year 10.21 3.12
Cash and cash equivalents comprising of:
Balance with banks 10.21 3.12
Total 10.21 3.12
*Amount spent towards Corporate Social Responsibility expense as per Section 135(5) of the 31.29 31.68
Companies Act, 2013 (see note 32)

Note: The above Standalone Statement of Cash Flows has been prepared under the 'Indirect Method' as set out in Ind AS 7, 'Statement of Cash
Flows'.

See summary of material accounting policies and accompanying notes which form an integral part of the standalone financial statements
As per our report attached of even date For and on behalf of the Board of Directors

For B S R & Co. LLP Deepak S. Parekh Navneet Munot

Chartered Accountants Chairman Managing Director & Chief Executive Officer
ICAI Firm Registration No.: 101248W/W-100022 (DIN: 00009078) (DIN: 05247228)

Kapil Goenka Naozad Sirwalla Sylvia Furtado

Partner Chief Financial Officer Company Secretary
Membership No:. 118189 (ACS: 17976)

Mumbai, April 19, 2024

164 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

1. Company overview 2. Basis of preparation and recent accounting

HDFC Asset Management Company Limited (‘the developments
Company’) is a Public Limited Company domiciled in India 2.1 Basis of preparation
and its registered office is situated at HDFC House, 2nd
a) Statement of compliance
Floor, H.T Parekh Marg, 165-166, Backbay Reclamation,
Churchgate, Mumbai - 400 020. The Company has These standalone financial statements have been
been incorporated under the Companies Act, 1956 prepared and presented on going concern basis and
on December 10, 1999 and was approved to act as the in accordance with the Indian Accounting Standards
Asset Management Company for HDFC Mutual Fund (Ind AS) as per the Companies (Indian Accounting
by Securities and Exchange Board of India (SEBI) vide Standards) Rules, 2015 notified under Section 133
its letter dated July 03, 2000. HDFC Trustee Company of the Companies Act, 2013, (the ‘Act’) and other
Limited (‘the Trustee’) has appointed the Company to relevant provisions of the Act, as amended from
act as the investment manager of HDFC Mutual Fund. time to time.

The Company is also registered under the SEBI (Portfolio The standalone financial statements were approved
Managers) Regulations, 1993 and provides Portfolio for issue by the Company’s Board of Directors on
Management Services. Further, the Company acts April 19, 2024.
as an Investment Manager to HDFC AMC AIF-II, a Details of the Company’s material accounting
trust registered with SEBI as a Category II Alternative policies are included in Note 3.
Investment Fund under the SEBI (Alternative Investment
Funds) Regulations, 2012. b) Presentation of standalone financial statements
HDFC Bank Limited (‘HDFC Bank’) has become the The Company presents its standalone balance
Holding Company and Promoter of HDFC Asset sheet in order of liquidity. An analysis regarding
Management Company Limited, in place of Housing recovery or settlement within 12 months after the
Development Finance Corporation Limited (‘HDFC reporting date and more than 12 months after the
Ltd.’), with effect from July 01, 2023, pursuant to the reporting date is presented in Note 36.
Composite scheme of amalgamation of: (i) HDFC
Investments Limited and HDFC Holdings Limited, c) Functional and presentation currency
wholly owned subsidiaries of HDFC Ltd. with and into Indian Rupee (`) is the currency of the primary
HDFC Ltd.; and (ii) HDFC Ltd. with and into HDFC Bank. economic environment in which the Company
On June 20, 2023, abrdn Investment Management operates and hence it is the functional currency of
Limited (‘abrdn’), one of the promoters of the Company, the Company. Accordingly, the management has
sold its entire stake in the Company and subsequent determined that standalone financial statements
to the approval granted by Stock Exchanges for should be presented in Indian Rupees (`).
reclassification of abrdn from the 'Promoter' category to
'Public' Category, effective September 18, 2023, abrdn d) Foreign currency transactions and balances
ceases to be the promoter of the Company. Foreign currency transactions are translated into
the functional currency using the exchange rates
As at March 31, 2024, HDFC Bank Limited, the holding
at the dates of the transactions. Foreign currency
company owned 52.55% of the Company’s equity
denominated monetary assets and liabilities are
share capital.
remeasured into the functional currency at the
The equity shares of the Company have been listed exchange rate prevailing on the reporting date.
on National Stock Exchange of India Limited and BSE Foreign exchange gains and losses resulting from
Limited since August 06, 2018. the settlement of such transactions and from
the translation of monetary assets and liabilities

ANNUAL REPORT 2023-24 165

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

denominated in foreign currencies at year end Assumptions and estimation uncertainties

exchange rates are recognised in Standalone Information about critical judgements,
Statement of Profit or Loss. Non-monetary items assumptions and estimation uncertainties that
that are measured in terms of historical cost in have a significant risk of resulting in a material
foreign currency are not re-translated. adjustment is included in the following notes:

e) Rounding Off • Note 3.3 (A) (iii) and 10 – estimates of useful

lives and residual value of property, plant and
All amounts have been rounded-off to the
equipment, and other intangible assets;
nearest Crore up to two decimal places, unless
otherwise indicated. • Note 8 – impairment of investments in subsidiary;

• Note 10 – impairment test of non-financial

f) Basis of measurement
assets: key assumptions underlying recoverable
The standalone financial statements have been amounts including the recoverability of
prepared on the historical cost basis except for the expenditure on intangible assets;
following items:
• Note 13 - determination of lease term and
Items Measurement basis discount rate for lease liabilities;
Certain financial Fair value
instruments (as explained • Note 23 – measurement of defined benefit
in the accounting policies obligations: key actuarial assumptions;
below)
Net defined benefit asset/ Fair value of plan assets less • Note 24 – share based payments;
(liability) present value of defined
benefit obligations • Note 25 – recognition of deferred tax assets;
Equity settled share based Fair value of the options • Note 30 – recognition and measurement of
payments granted as on the grant date
provisions and contingencies; key assumptions
about the likelihood and magnitude of an outflow
g) Use of estimates and judgements of resources, if any;
In preparing these standalone financial statements,
• Note 35 – financial instruments – fair values, risk
management has made judgements, estimates
management and impairment of financial assets.
and assumptions that affect the application of
accounting policies and the reported amounts of h) Measurement of fair values
assets, liabilities, income and expenses. Actual A number of the Company’s accounting policies
results may differ from these estimates. and disclosures require the measurement of fair
The management believes that these estimates values, for both financial and non-financial assets
are prudent and reasonable and are based upon and liabilities.
the management’s best knowledge of current The Company has an established control
events and actions as on the reporting date. Actual framework with respect to the measurement of
results could differ from these estimates and fair values. Measurement of fair values includes
differences between actual results and estimates determining appropriate valuation techniques.
are recognised in the periods in which the results/
actions are known or materialised. Revisions to The objective of valuation techniques is to arrive at
accounting estimates are recognised prospectively. a fair value measurement that reflects the price that
would be received on sale of asset or paid to transfer
the liability in an orderly transaction between
market participants at the measurement date.

166 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Valuation models that employ significant 3. Material Accounting Policies

unobservable inputs require a higher degree of
3.1 Cash and Cash Equivalents
judgement and estimation in the determination of
fair value. Judgement and estimation are usually Cash and cash equivalents include cash on hand, demand
required for selection of the appropriate valuation deposits and other short-term, highly liquid investments
methodology, determination of expected future with original maturities of three months or less that are
cash flows on the financial instrument being valued, readily convertible to known amounts of cash and which
determination of probability of counterparty are subject to an insignificant risk of change in value.
default and selection of appropriate discount rates.
3.2 Financial Instruments
The management regularly reviews significant
(i) Recognition and initial measurement of financial
unobservable inputs and valuation adjustments.
assets and financial liabilities
Fair values are categorised into different levels in a All financial assets and financial liabilities are initially
fair value hierarchy based on the inputs used in the recognised when the Company becomes a party to
valuation techniques. the contractual provisions of the instrument.
When measuring the fair value of an asset or a All the financial assets and financial liabilities are
liability, the Company uses observable market data initially recognised at fair value. A financial asset
as far as possible. If the inputs used to measure the or financial liability which is not recognised at Fair
fair value of an asset or a liability fall into different Value Through Profit or Loss, is initially measured
levels of the fair value hierarchy, then the fair at fair value plus or minus transaction costs
value measurement is categorised in its entirety that are directly attributable to its acquisition
in the same level of the fair value hierarchy as or issue. Transaction costs of financial assets
the lowest level input that is significant to the carried at fair value through profit or loss are
entire measurement. expensed in Standalone Statement of Profit and
The Company recognises transfers between levels Loss. Trade receivables that do not contain a
of the fair value hierarchy at the end of the reporting significant financing component are measured at
period during which the change has occurred. transaction price.

Further information about the assumptions (ii) Classification, Subsequent measurement,

made in measuring fair values is included in the gains and losses of financial assets (other than
following notes: investments in subsidiary)
• Note 24 - share based payment Classification:
• Note 35 - financial instruments – fair values On initial recognition, a financial asset is classified
and risk management and impairment of as measured at
financial assets. • Amortised Cost;
2.2 Recent Accounting Developments: • Fair Value Through Other Comprehensive
Standards issued/amended but not yet effective Income (FVOCI); or
Ministry of Corporate Affairs ("MCA") notifies new • Fair Value Through Profit or Loss (FVTPL).
standard or amendments to the existing standards.
There is no such notification on accounting standards Financial assets are not reclassified subsequent to
which would have been applicable to the Company from their initial recognition, except if and in the period
April 01, 2024. the Company changes its business model for
managing financial assets.

ANNUAL REPORT 2023-24 167

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

A financial asset is measured at amortised cost if it on initial recognition. ‘Interest’ is defined as

meets both of the following conditions and is not consideration for the time value of money and for
designated as at FVTPL: the credit risk associated with the principal amount
outstanding during a particular period of time
• the asset is held within a business model whose
and for other basic lending risks and costs (e.g.
objective is to hold assets to collect contractual
liquidity risk and administrative costs), as well as a
cash flows; and
profit margin.
• the contractual terms of the financial asset give
In assessing whether the contractual cash flows
rise on specified dates to cash flows that are
are solely payments of principal and interest, the
solely payments of principal and interest on the
Company considers the contractual terms of the
principal amount outstanding.
instrument. This includes assessing whether the
A financial asset is measured at FVOCI if it meets financial asset contains a contractual term that
both of the following conditions and is not could change the timing or amount of contractual
designated as at FVTPL: cash flows such that it would not meet this condition.
In making this assessment, the Company considers:
• the asset is held within a business model
whose objective is achieved by both collecting • contingent events that would change the
contractual cash flows and selling financial amount or timing of cash flows;
assets; and
• terms that may adjust the contractual coupon
• the contractual terms of the financial asset give rate, including variable interest rate features;
rise on specified dates to cash flows that are
• prepayment and extension features; and
solely payments of principal and interest on the
principal amount outstanding. • terms that limit the Company’s claim to cash
flows from specified assets.
However, on initial recognition of an equity
investment that is not held for trading, the Company Subsequent measurement and gains and losses:
may irrevocably elect to present subsequent
Financial assets These assets are subsequently
changes in the investment’s fair value in Other at amortised measured at amortised cost using
Comprehensive Income (OCI) (designated as FVOCI cost the effective interest rate method.
– equity investment). This election is made on an The amortised cost is reduced by
investment‑by‑investment basis. impairment losses. Interest income,
foreign exchange gains and losses and
All financial assets not classified as measured at impairment losses are recognised in
the Standalone Statement of Profit and
amortised cost or FVOCI as described above are
Loss. Any gain or loss on derecognition is
measured at FVTPL. On initial recognition, the recognised in the Standalone Statement
Company may irrevocably designate a financial of Profit and Loss.
asset as at FVTPL that otherwise meets the Debt These assets are subsequently
requirements to be measured at amortised cost investments at measured at fair value. Interest income
or at FVOCI, if doing so eliminates or significantly FVOCI under effective interest method,
foreign exchange gains and losses and
reduces an accounting mismatch that would
impairment losses are recognised in
otherwise arise. the Standalone Statement of Profit and
Loss. Other net gains and losses are
Assessment whether contractual cash flows are recognised in OCI. On derecognition,
gains and losses accumulated in OCI are
solely payments of principal and interest (SPPI)
reclassified to the Standalone Statement
For the purposes of this assessment, ‘principal’ of Profit and Loss.
is defined as the fair value of the financial asset

168 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Equity These assets are subsequently

of ownership of the financial asset are transferred
investments at measured at fair value. Dividends are or in which the Company neither transfers nor
FVOCI recognised as income in the Standalone retains substantially all of the risks and rewards
Statement of Profit and Loss unless the of ownership and does not retain control of the
dividend clearly represents a recovery of
part of the cost of the investment. Other
financial asset.
net gains and losses are recognised
If the Company enters into transactions whereby
in OCI and are not reclassified to
Standalone Statement of Profit and Loss. it transfers assets recognised on its standalone
balance sheet, but retains either all or substantially
Financial assets These assets are subsequently
at FVTPL measured at fair value. Net gains and all of the risks and rewards of the transferred assets,
losses, any interest or dividend income, the transferred assets are not derecognised.
are recognised and are presented
separately in the Standalone Statement Financial liabilities
of Profit and Loss
The Company derecognises a financial liability
when its contractual obligations are discharged or
(iii) Classification, subsequent measurement, gains
cancelled, or expire.
and losses of Financial liabilities
Debt and equity instruments issued by the (v) Impairment of financial instruments
Company are classified as either financial liabilities
The Company recognises loss allowances using the
or as equity in accordance with the substance of the
expected credit loss (ECL) model for the financial
contractual arrangements and the definition of a
assets which are not classified as FVTPL or equity
financial liability and an equity instrument.
investments at FVOCI. Expected credit losses are
Financial liabilities are classified as measured at measured at an amount equal to the 12-month ECL,
amortised cost or FVTPL. A Financial Liability is unless there has been a significant increase in credit
classified as at FVTPL if it is classified as held for risk or the assets have become credit impaired from
trading, or it is a derivative or it is designated as such initial recognition in which case, those are measured
on initial recognition. Financial liabilities at FVTPL at lifetime ECL. The amount of expected credit
are measured at fair value and net gains and losses, losses (or reversal) that is required to adjust the
including any interest expense, are recognised in loss allowance at the reporting date is recognised
Standalone Statement of Profit and Loss. Other as an impairment gain or loss in the Standalone
financial liabilities are subsequently measured at Statement of Profit and Loss.
amortised cost using the effective interest method.
Interest expense and foreign exchange gains and Measurement of expected credit losses
losses are recognised in the Standalone Statement Expected credit losses are a probability-weighted
of Profit and Loss. Any gain or loss on derecognition estimate of credit losses. Credit losses are
is also recognised in the Standalone Statement of measured as the present value of all cash shortfalls
Profit and Loss. (i.e. the difference between the cash flows due
to the Company in accordance with the contract
(iv) Derecognition of financial assets and financial and the cash flows which the Company expects to
liabilities receive).
Financial assets
The Company derecognises a financial asset when Presentation of allowance for expected credit
the contractual rights to the cash flows from the losses in the standalone balance sheet
financial asset expire, or it transfers the rights to Loss allowances for financial assets measured
receive the contractual cash flows in a transaction at amortised cost are deducted from the gross
in which substantially all of the risks and rewards carrying amount of the assets. For debt securities at

ANNUAL REPORT 2023-24 169

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

FVOCI, the loss allowance is charged to Standalone probable that future economic benefits associated
Statement of Profit and Loss and is recognised with the item will flow to the Company and the cost
in OCI. of the item can be measured reliably.

Items of property, plant and equipment are

Write off
measured at cost, less accumulated depreciation
The gross carrying amount of a financial asset is and accumulated impairment losses, if any.
written off (either partially or in full) to the extent
that there is no realistic prospect of recovery. This Cost of an item of property, plant and equipment
is generally the case when the Company determines comprises its purchase price (after deducting trade
that the counter party does not have assets or discounts and rebates) including import duties and
sources of income that could generate cash flows to non-refundable taxes, any directly attributable cost
repay the amounts. However, financial assets that of bringing the item to its working condition for its
are written off could still be subject to enforcement intended use and estimated costs of dismantling
activities in order to comply with the Company’s and removing the item and restoring the site on
procedures for recovery of amounts due. which it is located.

(vi) Off-setting financial instruments (ii) Subsequent expenditure

Financial assets and liabilities are offset and the Subsequent expenditure is capitalised only if it
net amount is presented in the standalone balance is probable that the future economic benefits
sheet where there is a legally enforceable right associated with the expenditure will flow to
to offset the recognised amounts and there is an the Company and the cost of the item can be
intention to settle on a net basis or realise the asset measured reliably.
and settle the liability simultaneously.
(iii) Depreciation
3.3 (A) Property, plant and equipment Depreciation on property, plant and equipment
(i) Recognition and measurement is provided on straight-line basis as per the
estimated useful life and in the manner prescribed
The cost of an item of property, plant and equipment
in Schedule II of the Companies Act, 2013 except for
shall be recognised as an asset if, and only if it is
certain assets.

Following is the summary of useful lives of the assets as per management’s estimate and as required by the Companies
Act, 2013 except assets individually costing less than Rupees five thousand which are fully depreciated in the year of
purchase/acquisition.
Useful Life (no. of years)
Class of property, plant and equipment
As per the Companies Act, 2013 As per management’s estimate
Buildings* 60 50
Computer Equipment:
Server and Network* 6 4
Others 3 3
Furniture and Fixtures* 10 7
Electrical Installations* 10 7
Office Equipment 5 5
Vehicles* 8 4
Improvement of Rented Premises Not specified Over the lease term or 5 years, whichever is less
 *Based on technical advice, management is of the opinion that the useful lives of these assets reflect the period over which they are
expected to be used.

170 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Depreciation method, useful lives and residual (ii) Amortisation

values are reviewed at each financial year end and Amortisation is calculated to write off the cost
adjusted, if required. of intangible assets less their estimated residual
Depreciation on additions/disposals is provided on values over their estimated useful lives using the
a pro- rata basis i.e. from/up to the date on which straight-line method, and is included in depreciation
asset is ready to use/disposed off. and amortisation in the Standalone Statement
of Profit and Loss. Computer Software is being
(iv) Derecognition amortised over a period of 3 years.

The cost and related accumulated depreciation Amortisation method, useful lives and residual
are eliminated from the standalone financial values are reviewed at the end of each financial year
statements upon sale or retirement of the asset and and adjusted, if required.
the resultant gains or losses are recognised in the
Standalone Statement of Profit and Loss. Assets (iii) Derecognition
to be disposed off are reported at the lower of the Intangible assets are derecognised on disposal or
carrying value or the fair value less cost to sell. when no future economic benefits are expected
to arise from its continuous use, and the resultant
(B) Goodwill gains or losses are recognised in the Standalone
Goodwill was generated on acquisition of rights to Statement of Profit and Loss.
operate, administer and manage the schemes of
erstwhile Morgan Stanley Mutual Fund. Goodwill is not (D) Intangible assets under development
amortised but is tested for impairment annually or more The intangible assets under development includes cost
frequently if events or changes in circumstances indicate of intangible assets that are not ready for their intended
that it might be impaired, and is carried at cost less use on the date of balance sheet less accumulated
accumulated impairment losses, if any. impairment losses, if any.

(C) Other intangible assets 3.4 Impairment of non-financial assets

Other intangible assets including computer software are The Company’s non-financial assets, other than deferred
measured at cost and recognised if it is probable that the tax assets, are reviewed at each reporting date to
expected future economic benefits that are attributable determine whether there is any indication of impairment.
to the asset will flow to the entity and the cost of the asset If any such indication exists, then the asset’s recoverable
can be measured reliably. Such other intangible assets amount is estimated.
are subsequently measured at cost less accumulated
amortisation and any accumulated impairment losses, The recoverable amount of an asset or goodwill is the
if any. higher of its value in use and its fair value. Value in use
is based on the estimated future cash flows, discounted
(i) Subsequent Expenditure to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of
Subsequent expenditure is capitalised only when it
money and the risks specific to it.
increases the future economic benefits embodied
in the specific asset to which it relates. All other An impairment loss is recognised if the carrying amount
expenditure is recognised in the Standalone of an asset or goodwill exceeds its estimated recoverable
Statement of Profit and Loss as incurred. amount. Impairment losses are recognised in the
Standalone Statement of Profit and Loss.

ANNUAL REPORT 2023-24 171

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

An impairment loss in respect of goodwill is not is allocated to that performance obligation. The
subsequently reversed. In respect of other assets transaction price is the amount of consideration to
for which impairment loss has been recognised in which an entity expects to be entitled in exchange
prior periods, the Company reviews at each reporting for transferring promised services to a customer,
date whether there is any indication that the loss has excluding amounts collected on behalf of third
decreased or no longer exists. An impairment loss is parties. The consideration promised in a contract
reversed if there has been a change in the estimates used with a customer may include fixed amounts,
to determine the recoverable amount. Such a reversal is variable amounts, or both. Revenue from contracts
made only to the extent that the asset’s carrying amount with customers is recognised when services are
does not exceed the carrying amount that would have provided and it is highly probable that a significant
been determined, net of depreciation or amortisation, if reversal of revenue is not expected to occur.
no impairment loss had been recognised.
If the consideration promised in a contract includes
a variable amount, then Company estimates the
3.5 Revenue recognition
non-constrained amount of consideration to
(i) Rendering of services which it will be entitled in exchange for rendering
The Company recognises revenue from contracts the promised services to a customer. The amount
with customers based on a five step model as of consideration can vary because of discounts,
set out in Ind AS 115 - Revenue from Contracts rebates, refunds, credits, price concessions,
with Customers, to determine when to recognise incentives, performance bonuses, or other similar
revenue and at what amount. items. The promised consideration can also vary if
an entitlement to the consideration is contingent on
Revenue is measured based on the transaction
the occurrence or non-occurrence of a future event.
price specified in the contract with a customer that

Nature of services
The Company principally generates revenue by providing asset management services to HDFC Mutual fund,
Alternative Investment Fund (AIF) and other clients.
Services Nature, timing of satisfaction of performance obligations and significant payment terms
Investment Management Services to The Company has been appointed as the investment manager to HDFC Mutual
mutual fund Fund. The Company receives investment management fees from the mutual
fund which is charged as a percent of the Assets Under Management (AUM)
and is recognised on accrual basis. The maximum amount of management fee
that can be charged is subject to applicable SEBI regulations.
The contract includes a single performance obligation (series of distinct
services) that is satisfied over time and the investment management fees
earned are considered as variable consideration.
Portfolio Management Services, The Company provides portfolio management services and advisory services
Advisory Services and Investment to its clients wherein a separate agreement is entered into with each client.
Management Services to AIFs The Company earns management fees which is generally charged as a percent
of the Assets Under Management (AUM) and is recognised on accrual basis.
The Company, in certain instances also has a right to charge performance
fee to the clients if the portfolio achieves a particular level of performance as
mentioned in the agreement with the client, to the extent permissible under
applicable regulations. Generally, no upfront fee is charged to the clients.

172 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Services Nature, timing of satisfaction of performance obligations and significant payment terms
The Company has also been appointed as the investment manager to HDFC
AMC AIF-II. The Company is entitled for management fee as per the terms of
Investment Management Agreement and any other fees as agreed.
These contracts include a single performance obligation (series of distinct
services) that is satisfied over time and the management fees and/or the
performance fees earned are considered as variable consideration.

(ii) Recognition of dividend income, interest The realised gains/losses from financial instruments
income or expense, gains and losses from at FVTPL represents the difference between
financial instruments the carrying amount of a financial instrument
Dividend income is recognised in the Standalone at the beginning of the reporting period, or the
Statement of Profit and Loss on the date on transaction price if it was purchased in the current
which the Company's right to receive dividend reporting period, and its settlement price.
is established. 
The unrealised gains/losses represents the
Interest income or expense is recognised using the difference between the carrying amount of a
effective interest rate method. financial instrument at the beginning of the period,
or the transaction price if it was purchased in the
The 'effective interest rate' is the rate that exactly current reporting period, and its carrying amount at
discounts estimated future cash payments or the end of the reporting period.
receipts through the expected life of the financial
instrument to: 3.6 Scheme expenses & Commission
• the gross carrying amount of the financial Certain scheme related expenses and commission paid
asset; or to mutual fund distributors were being borne by the
Company till October 22, 2018. These expenses had
• the amortised cost of the financial liability.
been charged in accordance with applicable circulars
In calculating interest income and expense, the and guidelines issued by SEBI and Association of Mutual
effective interest rate is applied to the gross Funds in India (AMFI) and had been presented under the
carrying amount of the financial asset (when the respective expense heads in the Standalone Statement
asset is not credit-impaired) or to the amortised of Profit and Loss.
cost of the liability. However, for financial assets
Pursuant to circulars issued by SEBI in this regard, with
that have become credit-impaired subsequent to
effect from October 22, 2018, all of these expenses,
initial recognition, interest income is calculated by
subject to certain permitted exceptions, are being borne
applying the effective interest rate to the amortised
by the respective schemes.
cost of the credit-impaired financial asset (i.e.
the gross carrying amount less the allowance for New Fund Offer (NFO) expenses on the launch of mutual
expected credit losses). If the asset is no longer fund schemes are borne by the Company and recognised
credit-impaired, then the calculation of interest in the Standalone Statement of Profit and Loss as and
income reverts to the gross basis. when incurred.
Interest income/expense on financial instruments Any other brokerage or commission paid by the Company
at FVTPL is not included in fair value changes but in line with the applicable regulations is being amortised
presented separately. over the contractual period.

ANNUAL REPORT 2023-24 173

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

3.7 Employee benefits during which the related services are rendered
(i) Short-term employee benefits by employees.

Short-term employee benefit obligations are

National Pension System (NPS)
measured on an undiscounted basis and are
expensed as the related service is provided. A NPS is a defined contribution plan. In case employee
liability is recognised for the amount expected opts for NPS, the Company contributes a sum not
to be paid, if the Company has a present legal or exceeding 10% of basic salary plus dearness pay,
constructive obligation to pay this amount as a if any, of the eligible employees’ salary to the NPS.
result of past service provided by the employee, and The Company recognises such contribution as an
the amount of obligation can be estimated reliably. expense as and when incurred.

(ii) Share based payment transactions (iv) Defined benefit plans

The Employee Stock Option Scheme provides for Gratuity

the grant of options to acquire equity shares of A defined benefit plan is a post-employment benefit
the Company to its eligible employees and certain plan other than a defined contribution plan. The
directors other than independent directors. The Company’s net obligation in respect of the defined
period of vesting and period of exercise are as benefit plan is calculated by estimating the amount
specified within the schemes. The fair value at grant of future benefit that employees have earned in the
date of equity settled share based payment options current and prior periods, discounting that amount
granted to employees is recognised as an employee and deducting the fair value of any plan assets.
benefit expense, with a corresponding increase
The calculation of the defined benefit obligation
in equity, over the period that the employees
is performed periodically by a qualified actuary
unconditionally become entitled to the options.
using the projected unit credit method. When
The amount recognised as expense is based on the
the calculation results in a potential asset for the
estimate of the number of options for which the
Company, the recognised asset is limited to the
related service conditions are expected to be met,
present value of economic benefits available in
such that the amount ultimately recognised as an
the form of any future refunds from the plan or
expense is based on the number of options that do
reductions in future contributions to the plan (‘the
meet the related service conditions at the vesting
asset ceiling’). In order to calculate the present
date. Such compensation cost is amortised over
value of economic benefits, consideration is given
the vesting period of the respective tranches of
to any minimum funding requirements.
such grant.
Remeasurement of the net defined benefit liability,
(iii) Defined contribution plans which comprise actuarial gains and losses, the
A defined contribution plan is a post-employment return on plan assets (excluding interest) and
benefit plan under which the Company pays fixed the effect of the asset ceiling (if any, excluding
contributions into an account with a separate interest), are recognised in Other Comprehensive
entity and has no legal or constructive obligation Income. The Company determines the net interest
to pay further amounts. The Company makes expense/income on the net defined benefit liability/
specified periodic contributions to the credit of the asset for the period by applying the discount rate
employees’ account with the Employees’ Provident used to measure the defined benefit obligation at
Fund Organisation. Obligations for contributions the beginning of the annual period to the then-net
to defined contribution plans are recognised as defined benefit liability/asset, taking into account
an employee benefit expense in the Standalone any changes in the net defined benefit liability/
Statement of Profit and Loss in the periods asset during the period as a result of contributions

174 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

and benefit payments. Net interest expense and finance cost. Expected future operating losses are not
other expenses related to defined benefit plans are provided for.
recognised in the Standalone Statement of Profit

Contingent liabilities are disclosed when there is
and Loss.
a possible obligation arising from past events, the
When the benefits of a plan are changed or when existence of which will be confirmed only by the
a plan is curtailed, the resulting change in benefit occurrence or non-occurrence of one or more uncertain
that relates to past service (‘past service cost’ or future events not wholly within the control of the
‘past service gain’) or the gain or loss on curtailment Company or a present obligation that arises from past
is recognised immediately in the Standalone events where it is either not probable that an outflow
Statement of Profit and Loss. The Company of resources will be required to settle the obligation or a
recognises gains and losses on the settlement of a reliable estimate of the amount cannot be made.
defined benefit plan when the settlement occurs.
A contingent asset is not recognised but disclosed in
the standalone financial statements where an inflow of
(v) Other long-term employee benefits
economic benefit is probable.
The Company’s net obligation in respect of
long-term employee benefits other than post- Commitments includes the amount of purchase order
employment benefits, which do not fall due wholly (net of advance) issued to counterparties for supplying/
within 12 months after the end of the period in development of assets and amounts pertaining to
which the employees render the related services, Investments which have been committed but not
is the amount of future benefit that employees called for.
have earned in return for their service in the current Provisions, contingent assets, contingent liabilities and
and prior periods; that benefit is discounted to commitments are reviewed at each balance sheet date.
determine its present value, and the fair value of
any related assets is deducted. The obligation is 3.9 Leases
measured on the basis of an independent actuarial
The Company assesses whether the contract is, or
valuation using the projected unit credit method.
contains, a lease at inception of a contract. A contract is,
Remeasurements gains or losses are recognised as
or contains, a lease if the contract conveys the right to
profit or loss in the period in which they arise.
control the use of an identified asset for a period of time
in exchange for consideration.
3.8 Provisions (other than for employee benefits),
contingent liabilities, contingent assets and
As a lessee
commitments
The Company leases its office premises. The Company
A provision is recognised if, as a result of a past event, the
recognises Right-of-Use (ROU) and lease liabilities for
Company has a present legal or constructive obligation
these leases i.e. these leases are on-balance sheet,
that can be estimated reliably, and it is probable that an
except for leases with a term of twelve months or less
outflow of economic benefits will be required to settle
(short-term leases) and low value leases. For these short-
the obligation. Where the effect of the time value of
term and low value leases, the Company recognises the
money is material, the provisions are determined by
lease payments as an expense on a straight-line basis
discounting the expected future cash flows (representing
over the term of the lease.
the best estimate of the expenditure required to settle
the present obligation at the balance sheet date) at a The lease liability is initially measured at the present
pre-tax rate that reflects current market assessments value of the lease payments that are not paid at the
of the time value of money and the risks specific to the commencement date and is discounted using the
liability. The unwinding of the discount is recognised as Company’s incremental borrowing rate. Since the
Company does not have any debts, the Company’s

ANNUAL REPORT 2023-24 175

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

incremental borrowing rate has been determined lease is a lease which confers substantially all the risks and
based on the risk-free rate which is adjusted for the rewards of the leased assets on the lessee. An operating
financial spread based on the credit spread of the lease is a lease where substantially all of the risks and
Holding Company. rewards of the leased asset remain with the lessor.

Certain leases include lease and non-lease components, Amounts due from lessees under finance leases
which are accounted for as one single lease component. are recorded as receivables. Finance lease income
Occupancy lease agreements, in addition to contractual is allocated to accounting periods so as to reflect a
rent payments, generally include additional payments constant periodic rate of return on the net investment
for certain costs incurred by the landlord, such as outstanding in respect of the lease.
maintenance expenses and utilities. To the extent these
are fixed or determinable, they are included as part of the 3.10 Income tax
lease payments used to measure the lease liability. Income tax comprises of current and deferred tax. It is
The ROU asset is initially measured at cost, which recognised in the Standalone Statement of Profit and
comprises of the initial measurement of the lease liability Loss except to the extent that it relates to a business
adjusted for any lease payments made at or before the combination or to an item recognised directly in equity
commencement date, less any lease incentives received; or in Other Comprehensive Income.
plus any initial direct costs incurred and an estimate of
costs to dismantle and remove the underlying asset or (i) Current tax
to restore the underlying asset or the site on which it is Current tax comprises the expected tax payable or
located. The ROU assets are subsequently depreciated receivable on the taxable income or loss for the year
using the straight-line method from the commencement and any adjustment to the tax payable or receivable
date to the end of the lease term. in respect of previous years. The amount of current
tax reflects the best estimate of the tax amount
Lease term is determined as the non-cancellable period
expected to be paid or received after considering
of a lease adjusted with any option to extend or terminate
the uncertainty, if any, related to income taxes. It is
the lease, if the use of such option is reasonably certain
measured using tax rates (and tax laws) enacted or
The lease liability is remeasured when there is a change in substantively enacted by the reporting date.
one of the following:
Current tax assets and current tax liabilities are
• the Company’s estimate of the amount expected to offset only if there is a legally enforceable right to
be payable under a residual value guarantee, or set off the recognised amounts, and it is intended to
realise the asset and settle the liability on a net basis
• the Company’s assessment of whether it will exercise
or simultaneously.
a purchase, extension, or termination option, or

• if there is a modification in the lease. (ii) Deferred tax

When the lease liability is remeasured, a corresponding Deferred tax is recognised in respect of temporary
adjustment is made to the carrying amount of the ROU differences between the carrying amounts of
asset, or is recorded in the Standalone Statement of assets and liabilities for financial reporting purposes
Profit and Loss if the carrying amount of the ROU asset and the corresponding amounts used for taxation
has been reduced to nil. purposes. Deferred tax is also recognised in respect
of carried forward tax losses and tax credits, if any
As a lessor: Deferred tax is not recognised for:
When the Company is the lessor, the lease is classified
• temporary differences arising on the initial
as either a finance lease or an operating lease. A finance
recognition of assets or liabilities in a transaction

176 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

that is not a business combination, that affects assess the performance of the operating segments of
neither accounting nor taxable profit or loss at the Company.
the time of the transaction and at the time of the
transaction, does not give rise to equal taxable 3.12 Earnings per share (EPS)
and deductible temporary differences The basic earnings per share is computed by dividing
• taxable temporary differences arising on the profit after tax attributable to the equity shareholders
initial recognition of goodwill by the weighted average number of equity shares
outstanding during the reporting period.
Deferred tax assets are recognised to the extent
that it is probable that future taxable profits will The diluted earnings per share is computed by dividing
be available against which they can be used. The profit after tax attributable to the equity shareholders
existence of unused tax losses is strong evidence adjusted for the effects of all dilutive potential ordinary
that future taxable profit may not be available. shares by the weighted average number of equity shares
Therefore, in case of losses, the Company outstanding plus the weighted average number of equity
recognises a deferred tax asset only to the extent shares that would be issued on the conversion of all the
that it has sufficient taxable temporary differences dilutive potential ordinary shares into ordinary shares.
or there is other convincing evidence that sufficient The number of equity shares used in computing diluted
taxable profit will be available against which such earnings per share comprises the weighted average
deferred tax asset can be realised. Deferred tax number of shares considered for deriving basic earnings
assets – unrecognised or recognised, are reviewed per share and also weighted average number of equity
at each reporting date and are recognised/reduced shares which would have been issued on the conversion
to the extent that it is probable/no longer probable of all dilutive potential shares, unless they are anti-
respectively that the related tax benefit will dilutive.
be realised.

Deferred tax is measured at the tax rates that are 3.13 Investments in Subsidiary
expected to apply to the period when the asset is Investments in subsidiary are carried at cost less
realised or the liability is settled, based on the laws accumulated impairment losses, if any in its separate
that have been enacted or substantively enacted by financial statements. Where an indication of impairment
the reporting date. exists, the carrying amount of the investment is assessed
and written down immediately to its recoverable
The measurement of deferred tax reflects the tax
amount. On disposal of such investments, the difference
consequences that would follow from the manner
between net disposal proceeds and the carrying amount
in which the Company expects, at the reporting
are recognised in the Standalone Statement of Profit
date, to recover or settle the carrying amount of its
and Loss.
assets and liabilities.

Deferred tax assets and liabilities are offset if there 3.14 Dividends on equity shares
is a legally enforceable right to offset current tax The Company recognises a liability to make cash
liabilities and assets, and they relate to income distributions to equity shareholders when the
taxes levied by the same tax authority. distribution is authorised and the distribution is no longer
at the discretion of the Company. As per the corporate
3.11 Operating Segments laws in India, a distribution is authorised when it is
Operating segments are reported in a manner approved by the shareholders except in case of interim
consistent with the internal reporting provided to the dividend. A corresponding amount is recognised directly
chief operating decision maker (CODM). The CODM’s in equity.
function is to allocate the resources of the Company and

ANNUAL REPORT 2023-24 177

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Note 4 Cash and Cash Equivalents

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Balances with Banks 10.21 3.12
Total 10.21 3.12

Note 5 Bank Balance other than Cash and Cash Equivalents

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Other Bank Balances
- Fixed Deposit with Bank (security against bank guarantee) 0.16 0.15
Earmarked Balances with Banks
- Unclaimed Equity Dividend 0.78 0.70
- Withheld Brokerage 0.02 0.04
Total 0.96 0.89

Note 6 Trade Receivables *

(Considered good - Unsecured)
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Investment Management Fee Receivable 90.83 182.94
Portfolio Management Fee, AIF and Other Advisory Services Fee Receivable 2.44 0.80
Total 93.27 183.74

Trade Receivables Ageing

(Undisputed Trade receivables – considered good)
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Unbilled dues (A) 91.71 183.56
Outstanding for following periods from due date of payment
Less than 6 months 1.42 0.18
6 months -1 year 0.01 -
1-2 years 0.12 -
2-3 years - 0.00
More than 3 years 0.01 0.00
Total Outstanding (B) 1.56 0.18
Total (A+B) 93.27 183.74

*No debts are due from directors or other officers or any of them either severally or jointly with any other person. No debts are due from firms, Limited
Liability Partnerships or private companies in which any director is a partner or a director or a member.

178 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Note 7 Other Receivables*

(Considered good - Unsecured)
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Finance Lease Receivable 9.45 6.95
Others 3.73 5.64
Total 13.18 12.59

* No debts are due from directors or other officers or any of them either severally or jointly with any other person. No debts are due from firms, Limited
Liability Partnerships or private companies in which any director is a partner or a director or a member.

Note 8 Investments
` (in Crore)
As at March 31, 2024 As at March 31, 2023
At Fair At Fair
Value Value
Sr. Amortised Amortised
Particulars Through At Cost Total Through At Cost Total
No. Cost Cost
Profit or Profit or
Loss Loss
(1) (2) (3) (4=1+2+3) (1) (2) (3) (4=1+2+3)
1 Mutual Funds - 6,648.64 - 6,648.64 - 5,476.86 - 5,476.86
2 Debt Securities 263.50 8.22 - 271.72 417.94 7.41 - 425.35
3 Equity Instruments - 24.27 - 24.27 - 23.18 - 23.18
4 Alternative Investment Funds - 206.07 - 206.07 - 127.57 - 127.57
5 Venture Capital Fund - 5.33 - 5.33 - 23.20 - 23.20
6 Subsidiary-Equity Shares* - - 34.00 34.00 - - 3.00 3.00
Total Gross Investments (A) 263.50 6,892.53 34.00 7,190.03 417.94 5,658.22 3.00 6,079.16
7 (i) Investments outside India - - - - - - - -
(ii) Investments in India 263.50 6,892.53 34.00 7,190.03 417.94 5,658.22 3.00 6,079.16
Total (B) 263.50 6,892.53 34.00 7,190.03 417.94 5,658.22 3.00 6,079.16
Less: Allowance for - - - - - - - -
Impairment (C)
Total Net Investments 263.50 6,892.53 34.00 7,190.03 417.94 5,658.22 3.00 6,079.16
(D = A - C)

* A Wholly Owned Subsidiary ('WOS') of the Company namely 'HDFC AMC International (IFSC) Limited', with its principal place of business located in
Gujarat International Finance Tec-City (GIFT City), Gandhinagar, India, had been incorporated effective May 27, 2022.

Note 9 Other Financial Assets

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Interest accrued on Fixed Deposits 0.01 0.00
Interest accrued on Investments 5.24 10.02
Security Deposits 15.91 13.96
Investment Application Money Pending Allotment * - 7.20
Total 21.16 31.18

* Date of allotment: April 03, 2023

ANNUAL REPORT 2023-24 179

180
Note 10 (A) Property, Plant and Equipment, Goodwill and Other Intangible Assets
` (in Crore)
Gross Block Depreciation/Amortisation Net Block
Particulars As at As at As at As at As at
For the
April 01, Additions Deductions March 31, April 01, Deductions March 31, March 31,
year
2023 2024 2023 2024 2024
Property, Plant and Equipment
Buildings
Freehold 4.34 - - 4.34 0.60 0.10 - 0.70 3.64

POWERED BY PURPOSE
Right of Use Asset 208.74 34.61 25.52 217.83 91.03 38.02 23.64 105.41 112.42
Furniture & Fixtures 3.20 0.76 0.13 3.83 2.12 0.49 0.13 2.48 1.35
for the year ended March 31, 2024

Vehicles 0.50 - - 0.50 0.25 0.12 - 0.37 0.13

Office Equipment 10.13 3.72 1.24 12.61 6.34 2.03 1.24 7.13 5.48
Computer Equipment 28.53 3.91 5.69 26.75 22.02 5.00 5.69 21.33 5.42
Electrical Installations 0.34 - - 0.34 0.34 - - 0.34 -
HDFC ASSET MANAGEMENT COMPANY LIMITED

Improvement of Rented Premises 17.80 5.69 1.41 22.08 13.29 2.30 1.41 14.18 7.90
Total 273.58 48.69 33.99 288.28 135.99 48.06 32.11 151.94 136.34
Goodwill and Other Intangible
Assets
Goodwill 6.04 - - 6.04 - - - - 6.04
Computer Software 27.24 6.28 1.11 32.41 20.40 4.20 1.11 23.49 8.92
Total 33.28 6.28 1.11 38.45 20.40 4.20 1.11 23.49 14.96
Notes to Standalone Financial Statements
 ` (in Crore)
Gross Block Depreciation/Amortisation Net Block
Particulars As at As at As at As at As at
For the
April 01, Additions Deductions March 31, April 01, Deductions March 31, March 31,
year
2022 2023 2022 2023 2023
Property, Plant and Equipment
Buildings
Freehold 4.34 - - 4.34 0.50 0.10 - 0.60 3.74
Right of Use Asset 172.84 60.42 24.52 208.74 74.68 36.90 20.55 91.03 117.71
Furniture & Fixtures 2.77 0.61 0.18 3.20 1.99 0.31 0.18 2.12 1.08
Vehicles 0.50 - - 0.50 0.13 0.12 - 0.25 0.25
for the year ended March 31, 2024

Office Equipment 10.18 1.72 1.77 10.13 6.10 2.01 1.77 6.34 3.79
Computer Equipment 27.71 2.58 1.76 28.53 17.53 6.25 1.76 22.02 6.51
Electrical Installations 0.34 - - 0.34 0.34 - - 0.34 -
Improvement of Rented Premises 17.78 2.30 2.28 17.80 13.01 2.56 2.28 13.29 4.51
Total 236.46 67.63 30.51 273.58 114.28 48.25 26.54 135.99 137.59
Goodwill and Other Intangible
Assets
Goodwill 6.04 - - 6.04 - - - - 6.04
Computer Software 23.71 5.06 1.53 27.24 16.83 5.09 1.52 20.40 6.84
Total 29.75 5.06 1.53 33.28 16.83 5.09 1.52 20.40 12.88

Impairment testing
The Goodwill relates to acquisition of rights to operate, administer and manage schemes of the erstwhile Morgan Stanley Mutual Fund. The
recoverable amount is the management fee income based on the present value of the future cash flows expected to be derived from the
asset (value in use). Management fee income is assumed to be generated at a constant rate and is discounted using a pre-tax discount rate of
7.23% (Previous Year 7.14%) based on one year Government security (G-sec) yield.

An analysis of sensitivity of the computation to a change in key parameters based on reasonably probable assumptions did not identify any
probable scenarios in which the recoverable amount would decrease below the carrying amount of goodwill. Consequently, no impairment
is required.
Notes to Standalone Financial Statements
FINANCIAL STATEMENTS

ANNUAL REPORT 2023-24

181
STANDALONE
HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Note 10 (B) Intangible Assets Under Development

For the year ended March 31, 2024
Intangible assets under development ageing schedule
` (in Crore)
As at March 31, 2024
Intangible assets under development
Amount in Intangible asset under development for a period of
Total
Particulars Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress 0.87 - - - 0.87
Projects temporarily suspended - - - - -
Total 0.87 - - - 0.87

There are no Intangible assets under development as at March 31, 2024, whose completion is overdue or has exceeded its cost
compared to its original plan.

For the year ended March 31, 2023

Intangible assets under development ageing schedule
` (in Crore)
As at March 31, 2023
Intangible assets under development
Amount in Intangible asset under development for a period of
Total
Particulars Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress 2.14 - - - 2.14
Projects temporarily suspended - - - - -
Total 2.14 - - - 2.14
There are no Intangible assets under development as at March 31, 2023, whose completion is overdue or has exceeded its cost compared to its
original plan.

Note 11 Other Non-Financial Assets

(Considered good - Unsecured)
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Capital Advances - 0.53
Prepaid Expenses 19.01 16.50
Goods & Services Tax Credit Receivable 21.66 21.71
Other Advances 4.86 4.04
Total 45.53 42.78

Note 12 Trade Payables

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Outstanding dues of Micro Enterprises and Small Enterprises 1.08 -
Outstanding dues of creditors other than Micro Enterprises and Small Enterprises 37.71 34.38
Total 38.79 34.38

182 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Trade Payables Ageing

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
MSME - Undisputed, Unbilled dues (A) 1.08 -
Others - Undisputed
Unbilled dues (B) 37.71 27.47
Outstanding for following periods from due date of payment
Less than 1 year - 6.91
Total (C) - 6.91
Total Others - Undisputed (D) = (B+C) 37.71 34.38
Total (A+D) 38.79 34.38

Note 13 Other Financial Liabilities

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Employee Benefits 76.06 68.97
Other Dues 5.00 5.92
Unclaimed Equity Dividend 0.78 0.70
Lease Liability 124.95 130.47
Total 206.79 206.06

Note 14 Provisions
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Provision for Employee Benefits (Compensated absences & Leave encashment) 16.38 12.57
Total 16.38 12.57

Note 15 Deferred Tax Liabilities (net) (see note 25)

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Deferred Tax Asset (49.20) (48.30)
Deferred Tax Liability 164.76 149.07
Total 115.56 100.77

Note 16 Other Non-Financial Liabilities

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Statutory Dues 88.08 51.86
Employee Benefits 6.62 4.09
Total 94.70 55.95

ANNUAL REPORT 2023-24 183

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Note 17 Share Capital

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Authorised
60,00,00,000 Equity Shares of `5 each (Previous Year: 60,00,00,000 Equity Shares of `5 each) 300.00 300.00
5,00,00,000 Redeemable, Cumulative Non-Convertible Preference Shares of `10 each 50.00 50.00
(Previous Year: 5,00,00,000 Redeemable, Cumulative Non-Convertible Preference Shares of `10 each)
Total 350.00 350.00
Issued, Subscribed and Paid-up
21,34,84,000 Equity Shares of `5 each (Previous Year: 21,34,24,716 Equity Shares of `5 each), 106.74 106.71
fully paid up
106.74 106.71

a) Movement in Equity Share Capital during the year:

` (in Crore)
March 31, 2024 March 31, 2023
Particulars No. of Equity No. of Equity
Share Capital Share Capital
Shares Shares
Shares outstanding at the beginning of the year (face value of 21,34,24,716 106.71 21,32,78,552 106.64
`5 each)
Add: Shares issued during the year (face value of `5 each) 59,284 0.03 1,46,164 0.07
Shares outstanding at the end of the year (face value of `5 21,34,84,000 106.74 21,34,24,716 106.71
each)

b) Terms/Rights attached to Equity Shares

1. The Company had issued only one class of equity shares referred to as equity share having face value of `10 each which
was sub-divided to `5 each w.e.f. February 13, 2018. Each holder of equity shares is entitled to one vote per share.

2. The holders of equity shares are entitled to dividends, if any, proposed by the board of directors and approved by the
Shareholders at the Annual General Meeting.

3. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining
assets of the Company, after distribution of preferential amount. However, no such preferential amount exists
currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

c) 11,21,79,830 equity shares of `5 each (Previous Year 11,21,79,830 equity shares of `5 each) are held by HDFC Bank Limited
(Previous Year: Housing Development Finance Corporation Limited) - Holding Company$.

184 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

d) Details of Holding Company and Shareholders holding more than 5 percent Share Capital of the Company:
As at March 31, 2024 As at March 31, 2023
Name of the Shareholder No. of Equity No. of Equity
% of Share % of Share
Shares Shares
Capital Capital
(Face Value `5) (Face Value `5)
HDFC Bank Limited (Previous Year: Housing Development 11,21,79,830 52.55 11,21,79,830 52.56
Finance Corporation Limited) - Holding Company$
Abrdn Investment Management Limited (formerly known as - - 2,17,78,305 10.20
Standard Life Investments Limited)
- see note 1 - Company overview
Life Insurance Corporation of India 1,29,49,242 6.07 1,96,58,764 9.21
SBI Mutual Fund 1,22,24,610 5.73 Not applicable

e) 23,16,200 equity shares of `5 each are reserved for issuance towards outstanding employee stock options.

f) No equity shares were bought back during last five years.

g) No shares were allotted as fully paid-up 'pursuant to any contract without payment being received in cash' in last five years.

h) No bonus shares were issued during the period of five years immediately preceding the reporting date.

i) Details of shareholding of Promoters:

As at
As at March 31, 2024 As at March 31, 2023
April 01, 2022
Promoter name No. of Equity No. of Equity No. of Equity
% Change % Change
Shares % of total Shares % of total Shares
during the during the
(Face Value Share Capital (Face Value Share Capital (Face
year# year#
`5) `5) Value `5)
HDFC Bank Limited (Previous Year: 11,21,79,830 52.55 - 11,21,79,830 52.56 - 11,21,79,830
Housing Development Finance
Corporation Limited) - Holding
Company $
Abrdn Investment Management - - (100.00) 2,17,78,305 10.20 (37.02) 3,45,78,305
Limited (formerly known as Standard
Life Investments Limited)
- see note 1 - Company overview
#
Computed vis-à-vis number of shares held by the same entity

$
HDFC Bank Limited (‘HDFC Bank’) has become the Holding Company and Promoter of HDFC Asset Management Company Limited, in place of Housing
Development Finance Corporation Limited (‘HDFC Ltd.’), with effect from July 01, 2023, pursuant to the Composite scheme of amalgamation of: (i)
HDFC Investments Limited and HDFC Holdings Limited, wholly owned subsidiaries of HDFC Ltd. with and into HDFC Ltd.; and (ii) HDFC Ltd. with and
into HDFC Bank.

ANNUAL REPORT 2023-24 185

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Note 18
Nature and purpose of reserves
Share application pending allotment
Until the shares are allotted, the amount received is shown under the Share Application Money Pending Allotment.

Capital redemption reserve

Whenever there is a buy-back or redemption of share capital, the nominal value of the capital is transferred to a reserve called
Capital Redemption Reserve so as to retain the capital.

Securities premium
Securities Premium is used to record the premium (amount received in excess of face value of equity shares) on issue of shares.
The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the
Companies Act, 2013. The securities premium also includes amount transferred from Share options outstanding account upon
exercise of options by employees and subsequent allotment of shares to them.

General reserve
Pursuant to the provisions of Companies Act,1956, the Company had transferred a portion of its net profit before declaring
dividend, to general reserve. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

Share options outstanding account

The grant date fair value of equity-settled share based payment transactions with employees and directors are recognised
in the Standalone Statement of Profit and Loss with the corresponding credit to this account over the vesting period. The
amounts recorded in Share options outstanding account are transferred to securities premium upon exercise of stock options
by the employees and subsequent allotment of shares to them.

Retained earnings
Retained earnings are the profits that a company has earned to date, less any dividends or other distributions paid to the
Shareholders, net of utilisation as permitted under applicable regulations.

Refer 'Other Equity' section in 'Standalone Statement of Changes in Equity' for movement in reserves and surplus
during the year.
Note 19 Asset Management Services
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Investment Management Fee 2,580.60 2,160.79
Portfolio Management Fee, AIF and Other Advisory Services Fee 3.77 6.02
Total 2,584.37 2,166.81

186 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Note 20 Other Income

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Income from Investments
Interest income from investments
- On Financial Assets measured at Amortised Cost 25.16 28.68
Interest on deposit with Banks
- On Financial Assets measured at Amortised Cost 0.01 0.00
Net gain on Financial Instruments
- On Financial Assets measured at Fair Value Through Profit or Loss 547.17 280.97
Dividend Income from Investments
- On Financial Assets measured at Fair Value Through Profit or Loss 0.23 0.23
Total Income from Investments (A) 572.57 309.88
Others
Net gain/(loss) on derecognition of Property, Plant and Equipment 0.05 0.11
Other Interest Income 1.78 1.59
Miscellaneous Income 3.66 4.22
Total Others (B) 5.49 5.92
Total Other Income (A+B) 578.06 315.80

Note 21 Employee Benefits Expenses

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Salaries, Allowances and Bonus 286.42 253.75
Contribution to Provident and Other Funds 13.77 12.95
Share Based Payments to Employees* 47.05 40.11
Staff Welfare and Training Expenses 6.22 5.86
Total 353.46 312.67

*Accounting for equity settled share based payment transaction (ESOPs) at fair value increases the non cash component of Employee Benefits
Expenses and is also reflected in Share Options Outstanding Account under Other Equity. This balance of Share Options Outstanding Account is
transferred to Securities Premium as and when the stock options are exercised by the employees and subsequent allotment of shares to them. Hence,
this charge is neutral to Equity of the Company.

ANNUAL REPORT 2023-24 187

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Note 22 Other Expenses

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
New Fund Offer and Mutual Fund Expenses 5.20 8.33
Advertisement, Publicity and Business Promotion 45.14 41.92
Rent 0.60 0.38
Rates and Taxes 0.44 0.36
Electricity Charges 5.54 5.51
Office Cleaning and Security Cost 19.81 17.82
Repair and Maintenance 7.97 5.95
Communication Expenses 8.39 7.35
Printing, Stationery and Courier 6.13 6.12
Directors' Sitting Fees, Commission, allowances and expenses 3.39 3.16
Auditors Remuneration:
Audit Fee 0.33 0.29
Limited Reviews 0.19 0.17
Group Audit and Reviews 0.27 0.03
Tax Audit Fee 0.04 0.04
Taxation Matters 0.00 0.17
Reimbursement of Expenses 0.06 0.01
Other Services* 0.31 0.06
1.20 0.77
Legal and Professional Fees 10.59 5.95
Insurance Expenses 6.83 5.73
Travel and Conveyance 8.24 8.00
Subscription and Membership Fees 10.54 12.91
Outsourced Services Cost 29.13 26.13
Donations 0.03 0.03
Loss on Foreign Exchange Translation (net) 0.05 0.04
Corporate Social Responsibility expense as per Section 135 (5) of the Companies Act, 2013 31.29 31.68
(see note 32)
Trademark Licence Fees 7.56 -
Software Expenses and Allied Services 42.42 30.50
KYC Expenses related to Mutual Fund Investors 11.94 5.15
Miscellaneous Expenses 4.52 8.83
Total 266.95 232.62
* For the year ended March 31, 2024, fees for Other Services primarily includes fee towards assurance service as required under the Business
Responsibility and Sustainability Report (BRSR) Core prescribed by Securities and Exchange Board of India.

188 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Note 23 Employee Benefits

a) Defined Contribution Plan
The Company has recognised the following amounts in the Standalone Statement of Profit and Loss, which are included
under Contributions to Provident Fund and Other Funds:
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Employer’s contribution to Provident Fund 8.11 7.29
Employer’s contribution to National Pension System 1.40 1.24

b) Defined Benefit Plan - Gratuity

In accordance with the applicable Indian laws, the Company has a defined benefit plan which provides for gratuity payments.
The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment,
which requires contributions to be made to a separately administered fund.

The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the
administration of the plan assets and for the definition of the investment strategy.

The amounts are based on the respective employee’s last drawn salary and the years of employment with the Company.
Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes
annual contributions to the plan. The plan is funded with a life insurance company in the form of a qualifying insurance policy.

The following tables summaries the components of net employee benefit expense recognised in the Standalone Statement
of Profit and Loss, the funded status and amounts recognised in Standalone Balance Sheet.
(i) Changes in Present Value of the Defined Benefit Obligation
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Obligation as at beginning of the year 37.37 38.32
Current service cost 3.53 3.76
Interest cost 2.76 2.74
Benefits paid (3.57) (5.79)
Actuarial (gains)/losses on obligation - due to change in demographic assumptions 0.07 (0.10)
Actuarial (gains)/losses on obligation - due to change in financial assumptions 0.56 (1.90)
Actuarial (gains)/losses on obligation - due to experience adjustments 1.86 0.34
Obligation as at the end of the year 42.58 37.37

ANNUAL REPORT 2023-24 189

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

(ii) Change in the Fair Value of Plan Assets

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Fair Value of Plan Assets at the beginning of the year 33.92 34.94
Expected return on plan assets 2.51 2.50
Contributions by the Employer 3.44 3.37
Benefit Paid from the Fund (3.57) (5.79)
Actuarial gain/(loss) on plan assets 0.37 (1.10)
Fair Value of Plan Assets at the end of the year 36.67 33.92

(iii) Actual Return on Plan Assets

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Expected return on Plan Assets 2.51 2.50
Actuarial gain/(loss) on Plan Assets 0.37 (1.10)
Actual Return on Plan Assets 2.88 1.40

(iv) Amount recognised in the Standalone Balance Sheet

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Present Value of defined benefit obligation (42.58) (37.37)
Fair Value of Plan Assets 36.67 33.92
Funded status [surplus/(deficit)] (5.91) (3.45)
Net (Liability)/Asset recognised in the Standalone Balance Sheet (5.91) (3.45)

(v) Expenses recognised in the Standalone Statement of Profit and Loss

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Current service cost 3.53 3.76
Interest Cost 2.76 2.74
Expected Return on Plan Assets (2.51) (2.50)
Expenses recognised in the Standalone Statement of Profit and Loss 3.78 4.00

(vi) Expenses recognised in Standalone Other Comprehensive Income (OCI)

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Actuarial (gains)/losses on Obligation 2.49 (1.66)
Actuarial (gains)/losses on Plan Assets (0.37) 1.10
Net (income)/expense for the year recognised in Standalone OCI 2.12 (0.56)

190 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

(vii) Amount recognised in the Standalone Balance Sheet

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Liability at the end of the year 42.58 37.37
Fair Value of Plan Assets at the end of the year (36.67) (33.92)
Amount recognised in the Standalone Balance Sheet as Liability 5.91 3.45

(viii) Balance sheet reconciliation

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Net Liability as at the beginning of the year 3.45 3.38
Expenses recognised in the Standalone Statement of Profit and Loss 3.78 4.00
Expenses/(Income) recognised in Standalone OCI 2.12 (0.56)
Contributions by the Employer (3.44) (3.37)
Net Liability/(Asset) recognised in Standalone Balance Sheet 5.91 3.45

(ix) Investment Pattern

% Invested
Particulars As at As at
March 31, 2024 March 31, 2023
Money Market Instruments, Public Deposits and Net Current Assets 2.92 7.38
Debentures/Bonds 36.38 45.46
Government Securities 60.70 47.16

(x) Actuarial Assumptions

As at As at
Particulars
March 31, 2024 March 31, 2023
Expected Return on Plan Assets 7.19% 7.41%
Rate of Discounting 7.19% 7.41%
Rate of Salary Increase 6.50% 6.50%
Rate of Employee Turnover For service For service
4 years and below 4 years and below
19.02% p.a. For 18.84% p.a.
service 5 years For service 5 years
and above 9.34% and above 8.81%
p.a. p.a.
Mortality Rate During Employment Indian Assured Indian Assured
Lives Mortality Lives Mortality
2012-14 (Urban) 2012-14 (Urban)

(xi) The Company generally makes annual contributions to the plan based on the actuarial valuation of 'amount recognised
in the Standalone Balance Sheet as Liability at the year end'.

ANNUAL REPORT 2023-24 191

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

(xii) The expected contributions to the plan for the next annual reporting period
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
The expected contributions to the plan for the next annual reporting period 5.97 5.12

(xiii) Maturity Analysis of the benefit payments

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Projected benefits payable in future years from the date of reporting
1st Following year 4.45 3.57
2nd Following year 4.05 3.41
3rd Following year 4.77 3.45
4th Following year 4.79 4.06
5th Following year 4.78 4.27
Sum of years 6 to 10 18.85 17.09
Sum of years 11 and above 31.09 31.39

The Weighted average duration of the defined benefit obligation is 8 years (March 31, 2023: 8 years).

(xiv) Sensitivity Analysis

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Defined Benefit Obligation on Current Assumptions 42.58 37.37
Delta Effect of +1% Change in Rate of Discounting (2.43) (2.25)
Delta Effect of -1% Change in Rate of Discounting 2.72 2.53
Delta Effect of +1% Change in Rate of Salary Increase 2.72 2.53
Delta Effect of -1% Change in Rate of Salary Increase (2.47) (2.29)
Delta Effect of +1% Change in Rate of Employee Turnover 0.04 0.10
Delta Effect of -1% Change in Rate of Employee Turnover (0.05) (0.12)

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.

 The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may
be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied
in calculating the Defined Benefit Obligation as recognised in the Standalone Balance Sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

192 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Risks associated with Defined Benefit Plan:

(i) Interest Rate Risk
A fall in the discount rate which is linked to the G.Sec. rate will increase the present value of the liability requiring
higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on
the duration of asset.

(ii) Salary Risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As
such, an increase in the salary of the members more than assumed level will increase the plan's liability.

(iii) Investment Risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below
this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in
government securities and other debt instruments.

(iv) Asset Liability Matching (ALM) Risk

The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax
Rules, 1962, this generally reduces ALM risk.

(v) Mortality Risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have
any longevity risk.

(vi) Concentration Risk

Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe
out all the assets. Although probability of this is very low as insurance companies have to follow stringent regulatory
guidelines which mitigate risk.

During the year, there were no plan amendments, curtailments and settlements.

Note 24 Share based payments

Accounting for Employee Share Based Payments
Under Employees Stock Option Scheme 2020 (ESOS 2020), the Company had on January 10, 2024 granted 38,800 stock options,
representing 38,800 equity shares of `5/- each to few employees of the Company. The said stock options have been granted
at the market price as defined in SEBI (Share Based Employees Benefits) Regulations, 2014. Accordingly, the stock options have
been granted at `3,415.25 per option, being the latest available closing price of the shares of the Company on National Stock
Exchange of India Limited, on January 09, 2024 being the previous trading day immediately preceding the date on which Grant of
Options was approved by the Nomination & Remuneration Committee of the Board of Directors of the Company (‘Nomination
& Remuneration Committee’).

ANNUAL REPORT 2023-24 193

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Under ESOS 2020, the Company had on April 25, 2023 granted 10,50,000 stock options, representing 10,50,000 equity shares
of `5/- each to few employees of the Company. The said stock options have been granted at the market price as defined in
SEBI (Share Based Employees Benefits) Regulations, 2014. Accordingly, the stock options have been granted at `1,780.90 per
option, being the latest available closing price of the shares of the Company on National Stock Exchange of India Limited, on
April 24, 2023 being the previous trading day immediately preceding the date on which Grant of Options was approved by the
Nomination & Remuneration Committee.

Under ESOS 2020, the Company had on July 21, 2022 granted 50,000 stock options, representing 50,000 equity shares of
`5/- each to few employees of the Company. The said stock options have been granted at the market price as defined in SEBI
(Share Based Employees Benefits) Regulations, 2014. Accordingly, the stock options have been granted at `1,921.70 per option,
being the latest available closing price of the shares of the Company on National Stock Exchange of India Limited, on July 20,
2022 being the previous trading day immediately preceding the date on which Grant of Options was approved by the Nomination
& Remuneration Committee.
Under ESOS 2020, the Company had on January 24, 2022 granted 1,82,000 stock options, representing 1,82,000 equity shares
of `5/- each to few employees of the Company. The said stock options have been granted at the market price as defined in
SEBI (Share Based Employees Benefits) Regulations, 2014. Accordingly, the stock options have been granted at `2,369.40 per
option, being the latest available closing price of the shares of the Company on National Stock Exchange of India Limited, on
January 21, 2022 being the previous trading day immediately preceding the date on which Grant of Options was approved by
the Nomination & Remuneration Committee.

Under ESOS 2020, the Company had on February 22, 2021 granted 11,45,000 stock options, representing 11,45,000 equity
shares of `5/- each to few employees of the Company. The said stock options have been granted at the market price as defined
in SEBI (Share Based Employees Benefits) Regulations, 2014. Accordingly, the stock options have been granted at `2,934.25 per
option, being the latest available closing price of the shares of the Company on National Stock Exchange of India Limited, on
February 19, 2021 being the previous trading day immediately preceding the date on which Grant of Options was approved by
the Nomination & Remuneration Committee.

In terms of ESOS 2020, the options shall vest in three tranches. Each of these tranches consisting of 1/3 of the options granted
shall vest on the completion of the 1st, 2nd and 3rd year from the date of the grant respectively. Any fractional residue shall be
settled in the 3rd tranche. The options can be exercised over a period of five years from the date of respective vesting.

Under Employees Stock Option Scheme 2017 – Series I (ESOS 2017 – Series I), the Company had on July 28, 2017 granted
1,58,875 stock options at an exercise price of `5,353/- per option, representing 1,58,875 equity shares of `10/- each to few
employees & directors of the Company. The fair value of the Company’s underlying equity share was determined in accordance
with the pricing formula approved by the Nomination & Remuneration Committee i.e. based on the Price Earning Multiple
method and the Assets Under Management (AUM) method.

In terms of ESOS 2017 – Series I, the options vest over a period of 1-2 years from the date of grant. The options can be exercised
over a period of five years from the date of vesting.

194 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Pursuant to the terms of respective Employees Stock Option Schemes (ESOS), in case of a corporate action like bonus shares,
rights issue, buyback of shares, split of shares, reduction of capital etc., the number of options outstanding as at the date of the
corporate action and the exercise price under all the relevant ESOS shall stand modified accordingly, so as to ensure that the paid-
up value of the total shares that can be issued under them remains unchanged. Accordingly, the Nomination and Remuneration
Committee of the Company has resolved, vide its circular resolution passed in February 2018, to make appropriate adjustments
to the outstanding options and now each option represents one equity share of `5/- each.

Comparison of exercise price per option:

`
Pre corporate Post corporate
Name of the Series
action action
ESOS 2017 Series I 5,353.00 669.13

No modifications were made in the terms and conditions of ESOS during the year.

The number of options vested during the year were 4,32,936 (Previous Year 4,15,666)

For the year ended March 31, 2024

For options outstanding
at the end of the year
Weighted
Particulars Outstanding average
Granted Exercised Forfeited Expired Outstanding Exercisable Exercise
at the remaining
during the during the during the during the at the end of at the end of price per
beginning of contractual
year* year* year* year* the year* the year* option (`)
the year* life (no. of
years)
ESOS 2020 Nil 38,800 Nil Nil Nil 38,800 Nil 3,415.25 6.78
(Grant Date January 10, 2024)
ESOS 2020 Nil 10,50,000 Nil 69,600 Nil 9,80,400 Nil 1,780.90 6.07
(Grant Date April 25, 2023)
ESOS 2020 50,000 Nil Nil Nil Nil 50,000 16,667 1,921.70 5.31
(Grant Date July 21, 2022)
ESOS 2020 1,82,000 Nil Nil Nil Nil 1,82,000 1,21,334 2,369.40 4.82
(Grant Date January 24, 2022)
ESOS 2020 10,65,000 Nil Nil Nil Nil 10,65,000 10,65,000 2,934.25 3.90
(Grant Date
February 22, 2021)
ESOS 2017 (Series I) 59,484 Nil 59,284 Nil 200 Nil Nil Nil Nil

ANNUAL REPORT 2023-24 195

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

For the year ended March 31, 2023

For options outstanding
at the end of the year
Weighted
Particulars Outstanding Exercisable average
Granted Exercised Forfeited Expired Outstanding Exercise
at the at the end remaining
during the during the during the during the at the end of price per
beginning of of the contractual
year* year* year* year* the year* option (`)
the year* year* life (no. of
years)
ESOS 2020 Nil 50,000 Nil Nil Nil 50,000 Nil 1,921.70 6.31
(Grant Date July 21, 2022)
ESOS 2020 1,82,000 Nil Nil Nil Nil 1,82,000 60,667 2,369.40 5.82
(Grant Date January 24, 2022)
ESOS 2020 10,65,000 Nil Nil Nil Nil 10,65,000 7,09,998 2,934.25 4.90
(Grant Date February 22, 2021)
ESOS 2017 (Series I) 2,05,648 Nil 1,46,164 Nil Nil 59,484 59,484 669.13 0.33

* Since all the options were granted at the same exercise price per option under the respective Series/Grant, the weighted average exercise price per
option for all these groups under the respective Series/Grant is the same.

The weighted average share price for options exercised during the year under various Series'/Grants was `1,964 (Previous
Year `2,012)
Fair Value Methodology
The fair value of options used to compute net income and earnings per equity share has been estimated on the date of grant
using Black-Scholes model.

The key assumptions used in Black-Scholes model for calculating fair value under ESOS 2017 – Series I and ESOS 2020 as on the
date of grant were:
Fair value
of the
Fair value
Risk-free Expected Expected Dividend option
Particulars Date of grant of the
interest rate average life volatility yield after
option
corporate
action
ESOS 2020 January 10, 6.78% - 3.5 - 5.5 Years 27.75% - 1.75% p.a. `1,084 NA
(Grant Date January 10, 2024) 2024 6.82 % p.a. 33.03%
ESOS 2020 April 25, 2023 6.66% - 3.5 - 5.5 Years 34.00% - 2.48% p.a. `557 NA
(Grant Date April 25, 2023) 6.76 % p.a. 34.54%
ESOS 2020 July 21, 2022 6.74% - 3.5 - 5.5 Years 34.68% - 1.18% p.a. `700 NA
(Grant Date July 21, 2022) 6.96 % p.a. 36.41%
ESOS 2020 January 24, 5.34% - 3.5 - 5.5 Years 33.91% - 0.92% p.a. `826 NA
(Grant Date January 24, 2022) 2022 5.98 % p.a. 35.52%
ESOS 2020 February 22, 5.04% - 3.5 - 5.5 Years 36.10% - 0.84% p.a. `1,053 NA
(Grant Date February 22, 2021) 2021 5.66 % p.a. 37.08%
ESOS 2017 (Series I) July 28, 2017 6.66% p.a. 3.5 Years 0% 1.86% p.a. `777 `97

Volatility is a measure of the amount by which a price has fluctuated or is expected to fluctuate during a period. The measure of
volatility used in the Black - Scholes Model is the annualised standard deviation of the continuously compounded rates of return
on the stock over a period of time.

As on the date of grant in case of ESOS 2017–Series I, the Company being an unlisted company and in the absence of listed
comparable companies, volatility had been considered to be Nil.

196 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

As on the respective dates of grant in case of ESOS 2020, wherever the trading history of the Company and/or its comparable
company(s) listed on the Stock exchange were less than the life of the option, Nifty Financial Services Index was also considered
for deriving the volatility.

Note 25 Tax expense

Components of Income Tax Expense
(a) Amounts recognised in the Standalone Statement of Profit and Loss
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Current income tax 517.52 421.26
517.52 421.26
Deferred tax (Income)/expense
Origination and reversal of temporary differences 14.79 25.43
14.79 25.43
Income Tax expense for the year 532.31 446.69

(b) Tax on amounts recognised in Standalone Other Comprehensive Income

` (in Crore)
Tax (expense)/benefit
Particulars For the year ended For the year ended
March 31, 2024 March 31, 2023
Remeasurement of the defined benefit plans 0.54 (0.14)
Total 0.54 (0.14)

(c) Reconciliation of Effective Tax Rate

` (in Crore)
Reconciliation between the statutory Income tax rate applicable to the Company and the effective Income tax For the year ended For the year ended
rate of the Company March 31, 2024 March 31, 2023
Profit before tax 2,478.19 1,870.61
Company's domestic tax rate 25.17% 25.17%
Tax using the Company’s domestic tax rate 623.71 470.80
Tax effect of/on:
Net expenses that are not deductible in determining taxable profit 18.53 17.97
Items which are taxed at different rates (103.64) (34.83)
Incomes which are exempt from tax (6.33) (7.22)
Others 0.04 (0.03)
Total (91.40) (24.11)
Income Tax expense for the year 532.31 446.69

(d) Effective Tax Rate

For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Effective Tax Rate (%) 21.48 23.88

ANNUAL REPORT 2023-24 197

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

(e) Significant components and movement in deferred tax assets and liabilities:
` (in Crore)
As at Expense / (Income) As at
Particulars
April 01, 2023 recognised March 31, 2024
Deferred Tax Assets
- Property, Plant and Equipment & Other Intangible Assets (excluding ROU) 10.99 (0.84) 11.83
- Lease Liabilities 32.83 1.39 31.44
- Provision for Employee Benefits 3.16 (0.96) 4.12
- Others 1.32 (0.49) 1.81
Total Deferred Tax Assets 48.30 (0.90) 49.20
Deferred Tax Liabilities
- Right Of Use Asset 29.63 (1.33) 28.30
- Prepaid Employee Benefits 1.13 (0.89) 0.24
- Fair value gains / losses and impairment on Investments 115.90 17.22 133.12
- Others 2.41 0.69 3.10
Total Deferred Tax Liabilities 149.07 15.69 164.76
Net Deferred Tax Assets / (Liabilities) (100.77) 14.79 (115.56)

` (in Crore)
As at Expense / (Income) As at
Particulars
April 01, 2022 recognised March 31, 2023
Deferred Tax Assets
- Property, Plant and Equipment & Other Intangible Assets (excluding ROU) 9.57 (1.42) 10.99
- Lease Liabilities 27.59 (5.24) 32.83
- Provision for Employee Benefits 2.96 (0.20) 3.16
- Others 1.27 (0.05) 1.32
Total Deferred Tax Assets 41.39 (6.91) 48.30
Deferred Tax Liabilities
- Right Of Use Asset 24.71 4.92 29.63
- Prepaid Employee Benefits 2.06 (0.93) 1.13
- Fair value gains / losses and impairment on Investments 88.66 27.24 115.90
- Others 1.30 1.11 2.41
Total Deferred Tax Liabilities 116.73 32.34 149.07
Net Deferred Tax Assets / (Liabilities) (75.34) 25.43 (100.77)

Note:
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current
tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgment is required in determining provision for income tax, deferred tax assets and liabilities and
recoverability of deferred tax assets. The recoverability of deferred tax assets is based on estimates of taxable income and the
period over which deferred tax assets will be recovered. Any changes in future taxable income would impact the recoverability
of deferred tax assets.

198 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Note 26 Related Party Transactions

As per the Indian Accounting Standard on ‘Related Party Disclosures’ (Ind AS 24), the related parties of the Company with whom
there have been transactions during the current/previous year, are as follows:

Sr.
Relationship Name of the Parties
No.
1 Holding Company HDFC Bank Limited from July 01, 2023 (Housing Development Finance Corporation
Limited up to June 30, 2023) $
2 Subsidiary Company HDFC AMC International (IFSC) Limited
3 Fellow Subsidiaries HDFC Trustee Company Limited
HDFC Life Insurance Company Limited
HDFC ERGO General Insurance Company Limited
HDFC Securities Limited (from July 01, 2023)
4 Investor with a significant influence Abrdn Investment Management Limited (formerly known as Standard Life Investments
Limited) (up to June 20, 2023) $
5 Other Related Parties HDFC Bank Limited (up to June 30, 2023) $
HDFC Securities Limited (up to June 30, 2023)
HDFC Asset Management Company Limited Employees’ Group Gratuity Assurance
Scheme
6 Key Management Personnel (KMP) Deepak S Parekh
Navneet Munot
Keki Mistry (up to June 26, 2023)
Dhruv Kaji
Jairaj Purandare
Sanjay Bhandarkar
Parag Shah
Renu S Karnad
Roshni Nadar Malhotra
V Srinivasa Rangan (from January 12, 2024)
Shashi Kant Sharma (up to April 11, 2022)
7 Key Management Personnel of Holding V Srinivasa Rangan (up to June 30, 2023 and from November 23, 2023)
Company (except covered in Sr No. 6)
8 Close Family Members of Company's Key Smita Deepak Parekh
Management Personnel and Holding Company's Aditya Deepak Parekh
Key Management Personnel
Harsha Shantilal Parekh
Arnaaz Keki Mistry
Bharat Karnad
Ashok Sud
V Jayam (up to June 30, 2023 and from November 23, 2023)
S Anuradha (up to June 30, 2023 and from November 23, 2023)
Abinaya Rangan (up to June 30, 2023 and from November 23, 2023)
Malav Ashwin Dani (up to April 29, 2023)
$
see note 1 - Company overview

ANNUAL REPORT 2023-24 199

 The nature and volume of transactions of the Company during the current/previous year with the above related parties were as follows:

200
(a) Details of transactions
` (in Crore)
Investor with a
Holding Company Subsidiary Company Fellow Subsidiaries Other Related Parties
Significant Influence
Particulars
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Expense
Lease Rent 11.99 11.98 - - - - - - - -

POWERED BY PURPOSE
Bank Charges 0.00 - - - - - - - 0.00 0.01
for the year ended March 31, 2024

Fees and Commission 0.51 - - - 0.22 - - - 0.10 0.05

Technology Support Cost - 1.90 - - - - - - - -
Administration & Other Expenses 2.37 6.28 - - - - - - - -
Insurance Premium - - - - 3.97 3.29 - - - -
HDFC ASSET MANAGEMENT COMPANY LIMITED

Trademark Licence Fees 7.56 - - - - - - - - -

Custodian Charges 0.02 - - - - - - - 0.01 0.03
Other Transactions
Equity Dividend 538.46 471.16 - - - - 104.54 145.23 - -
Investments made - - 31.00 3.00 - - - - - -
Contribution towards Gratuity Fund - - - - - - - - 3.44 3.37
Insurance Claim received on behalf of - - - - 0.38 - - - - -
employees
Reimbursement of Expenses incurred - - 0.80 - - - - - - -
by the Company
Asset
Bank Balances 10.89 - - - - - - - - 3.76
Account Receivable - - - 1.35 3.04 2.71 - 0.84 - -
Prepaid Commission 1.38 - - - 2.75 - - - - 1.26
Prepaid Insurance Premium - - - - 0.03 0.03 - - - -
Investment in subsidiary - - 34.00 3.00 - - - - - -
Liability
Account Payable 2.71 6.60 - - 0.01 - - - - 0.31
Notes to Standalone Financial Statements

Note:
The Company provides the necessary operating and secretarial services, etc. to HDFC Trustee Company Limited to meet the operating and
compliance requirements of the company in line with SEBI (Mutual Funds) Regulations, 1996. The Company does not charge any amount in
line with practice followed by the mutual fund industry.
 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

(b) Details of remuneration to Company's KMPs

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Short-term employee benefits# 11.98 11.61
Post employment benefits 0.31 0.26
Other long-term benefits 0.09 0.07
Share based payment 11.37 23.04
Other Benefits 0.09 0.05
Directors Sitting Fees 1.58 1.16
Commission to Non Executive Directors* 1.81 2.00
Total Remuneration 27.23 38.19
#
During the FY 20-21, an amount of `12.46 Crore was paid to the incoming Managing Director as one time payment and the same was being amortised
as per the terms of the contract. Out of the same, `3.66 Crore (Previous Year `4.15 Crore) forms part of Short-term employee benefits above and the
balance unamortised amount of Nil (Previous Year `3.66 Crore) as at March 31, 2024 is booked as prepaid under Other Non-Financial Assets.
* Commission is approved by the Board of Directors within the limit as approved by the shareholders of the Company and will be paid post adoption of
annual accounts by the shareholders.

(c) Details of dividend paid to Company's KMPs

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Dividend on Equity Shares 2.70 2.08

(d) Details of dividend paid to close family members of Company's KMPs, Holding Company's KMPs and close family
members of Holding Company's KMPs
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Dividend on Equity Shares 0.02 0.01

Note 27 Earnings Per Share

Basic earnings per share (EPS) is calculated by dividing the profit after tax for the year attributable to equity shareholders of the
Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS is calculated by dividing the profit after tax for the year attributable to equity shareholders of the Company
adjusted for the effects of all dilutive potential ordinary shares by the weighted average number of equity shares outstanding
during the year plus the weighted average number of equity shares that would be issued on the conversion of all the dilutive
potential ordinary shares into ordinary shares. There is no effect of dilutive potential ordinary shares on profit after tax for the
year attributable to equity shareholders of the Company.

The relevant details as described above are as follows:

` (in Crore except equity share data)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Profit after tax for the year (numerator for calculating Basic and Diluted EPS) 1,945.88 1,423.92
Weighted Average equity shares outstanding during the year 21,34,72,759 21,33,25,802

ANNUAL REPORT 2023-24 201

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Following is the reconciliation between basic and diluted earnings per equity share:
`
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Nominal value per share 5.00 5.00
Basic earnings per share 91.15 66.75
Effect of potential equity shares for stock options (per share) (0.11) (0.02)
Diluted earnings per share 91.04 66.73

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
Weighted average number of equity shares used in computing basic earnings per equity share 21,34,72,759 21,33,25,802
Effect of potential equity shares for stock options outstanding 2,65,475 39,341
Weighted average number of equity shares used in computing diluted earnings per equity share 21,37,38,234 21,33,65,143
Weighted average number of anti dilutive options not considered in computing diluted earnings per 84,131 6,49,167
equity share

Note 28 Leases
A. 
The Company has entered into leasing arrangements for premises. Majority of the leases are cancellable by the Company.
Right of Use asset has been included under the line 'Property, Plant and Equipment' and Lease liability has been included
under 'Other Financial Liabilities' in the Standalone Balance Sheet.

(i) Amounts recognised in the Standalone Balance sheet

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
(a) Right of Use assets (net) (Property, Plant and Equipment) 112.42 117.71
(b) Lease liabilities
Current 37.18 34.80
Non-current 87.77 95.67
Total Lease liabilities 124.95 130.47

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
(c) Additions to the Right of Use assets 34.61 60.42

(ii) Amounts recognised in the Standalone Statement of Profit and Loss

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
(a) Depreciation charge for Right of Use assets 38.02 36.90
(b) Interest expense (included in finance cost) 9.09 9.69
(c) Expense relating to short-term leases 0.60 0.38

202 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

(iii) Cash Flows

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
The total cash outflow of leases 45.50 43.82

(iv) Future Commitments

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Future undiscounted lease payments to which leases is not yet commenced 11.58 -

(v) Maturity analysis of undiscounted lease liability

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Before 3 months 11.37 11.01
3 – 6 months 11.33 11.02
6 – 12 months 22.45 21.08
1 – 3 years 54.20 62.57
3 – 5 years 30.65 30.23
Above 5 years 18.51 18.84
Total 148.51 154.75

(vi) All the future cash flows to which the lessee is potentially exposed are reflected in the measurement of lease liabilities.

(vii) The Company currently does not have any significant sale and lease back transactions.

B. Finance Lease
(i) The Company has provided vehicles to its certain employees which have been treated as finance leases.
` (in Crore)
For the year ended For the year ended
Quantitative Disclosures
March 31, 2024 March 31, 2023
Selling profit/(loss) (0.01) (0.01)
Finance income on the net investment in the lease 0.73 0.53
Lease income relating to variable lease payments not included in the measurement of the - -
net investment in the lease

(ii) Significant changes in the carrying amount of the net investment in the lease
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Lease receivables as at the beginning of the year 6.95 4.05
Add: Finance income on the net investment in the lease 0.73 0.53
Add: New leases entered during the year 5.84 4.96
Less: Lease payments received during the year 4.07 2.59
Lease receivables as at the end of the year 9.45 6.95

ANNUAL REPORT 2023-24 203

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

(iii) The following table sets out a maturity analysis of lease receivables:-
` (in Crore)
As at As at
Maturity Analysis of the Lease payments Receivables
March 31, 2024 March 31, 2023
Minimum Lease Minimum Lease
Particulars payments payments
receivables receivables

Less than one year 4.04 2.71

One to two years 3.60 2.56
Two to three years 2.18 2.08
Three to four years 0.87 0.56
Four to five years - -
More than five years - -
Total undiscounted lease payments receivable 10.69 7.91
Less: unearned finance income 1.24 0.96
Present value of lease receivables * 9.45 6.95

* Present Value of Rentals represent the Current Future Outstanding Principal

(iv) Risk Management Framework for finance leases

The table represents categories of collaterals available against the finance lease exposures:
` (in Crore)
As at As at
Particulars Collateral available
March 31, 2024 March 31, 2023
Finance lease receivables Hypothecation of the underlying car financed 9.45 6.95

The Company has framed Car Policy to provide use of the Company owned car for the commute from residence
to workplace, for the discharge of their official functions and for personal use to certain selected employees of the
Company. As per the Car Policy of the Company, the car is registered in the name of the Company and will remain the
property of the Company till it is duly transferred to employee in accordance with the Car Policy and after recovery
of all lease receivables. In case of separation of employee from the Company, outstanding lease receivables are
recovered/adjusted from employee's full and final settlement in accordance with the Car Policy.

Note 29 Segment Information

(a) Description of segments and principal activities
The Company is in the business of providing asset management services to HDFC Mutual Fund & alternative investment
fund and portfolio management & advisory services to clients. The Company's financial statements are largely reflective
of the asset management business and accordingly there are no separate reportable segments as per Ind AS 108,
Operating Segment.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker (CODM). The CODM’s function is to allocate the resources of the entity and assess the performance of the
operating segment of the Company.

204 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

(b) Segment Revenue

The amount of its revenue from external customers broken down by location of the customers is shown in the table below:
` (in Crore)
For the year ended For the year ended
Revenue
March 31, 2024 March 31, 2023
Within India 2,584.37 2,163.50
Outside India - 3.31
Total 2,584.37 2,166.81

(c) All assets of the Company are domiciled in India.

(d) Information about revenue from major customers
There is only one customer contributing in excess of 10% of the total revenue of the Company. The amounts for the same
are as follows:
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Revenue from HDFC Mutual Fund 2,580.60 2,160.79

Note 30 Contingent Liabilities and Commitments

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
(a) Contingent liabilities:
- Claims against the Company not acknowledged as debt:
(i) Disputed Income Tax demand 7.54 7.54
(ii) Disputed Goods and Services Tax demand 0.18 -
(b) Commitments:
(i) Estimated amount of contracts remaining to be executed on capital account and not 13.64 1.67
provided for (net of advances)
(ii) uncalled liability on shares and other investments partly paid 275.02 51.75

ANNUAL REPORT 2023-24 205

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Note 31 Trade Payables

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMEDA) which came into force from October 02,
2006, certain disclosures are required to be made relating to Micro and Small enterprises. On the basis of the information
and records available with the management, the following disclosures are made for the amounts due to the Micro and Small
enterprises, which have registered with the competent authorities.
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Principal amount remaining unpaid to any supplier as at the year end 1.08 Nil
Interest due thereon Nil Nil
Amount of interest paid by the Company in terms of section 16 of the MSMEDA, along with the amount Nil Nil
of the payment made to the supplier beyond the appointed day during the accounting year
Amount of interest due and payable for the year of delay in making payment (which have been paid Nil Nil
but beyond the appointed day during the year) but without adding the interest specified under the
MSMEDA
Amount of interest accrued and remaining unpaid at the end of the accounting year Nil Nil

Dues to Micro and Small Enterprises have been determined on the basis of information collected by the Company.

Note 32 Corporate Social Responsibility (CSR) Expense

The gross amount required to be spent by the Company during the year towards Corporate Social Responsibility as per Section
135(5) of the Companies Act, 2013 is as follows:
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
(i) Gross amount required to be spent by the Company during the year 31.29 31.68
(ii) Amount approved by the Board to be spent during the year 31.29 31.68

(iii) Amount spent

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Amount spent during the year on construction/acquisition of any asset - -
Amount spent during the year on purposes other than construction/acquisition of any asset and 31.29 31.68
charged to the Standalone Statement of Profit and Loss
Total 31.29 31.68

206 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

(iv) Details of CSR Activities for the financial year ended March 31, 2024
Details of Other than Ongoing CSR Projects
Organisation Purpose
Indian Cancer Society – Cancer Cure Fund To promote healthcare by providing financial aid for treatment of
underprivileged and low-income patients diagnosed with any curable/ early
detected cancers through the empaneled hospitals.
Indian Cancer Society – AKITF To promote healthcare by providing financial aid to underprivileged and low-
income patients who are unable to afford the initial costs of diagnosis and or
treatment for cancer through the empaneled hospitals.
Deepsikha To promote healthcare by providing financial aid towards operations of buses
for cancer patients.
Dharamshala Project To promote healthcare by providing support to the Dharamshala Project for free
accommodation to out-station cancer patients and their families through the
Rotary Club of Bombay.
Kanchi Kamakoti CHILDS Trust Hospital To promote healthcare by supporting for the cost of medical equipment
required for the Pediatric and Neonatal Intensive Care Units.
Parivaar Education Society To eradicate malnutrition and promote education for children by establishing
Seva Kutirs in the villages of Madhya Pradesh. The Funds would be utilised
towards the operation of 60 Seva Kutirs.
Muktangan To promote education by supporting a holistic educational programme
designed for children through community participation.
Urban Forest Project (Biodiversity Park) To promote environmental sustainability and ecological balance through Urban
Forest using Akira Miyawaki technique and rejuvenating the water body part of
the project site.
Olympic Gold Quest To promote sports by providing training in nationally recognised paralympic and
Olympic sports.
Sampark Foundation Transforming the learning outcome of school children by partnering with 4,781
schools and teachers by using the Sampark Smartshala programme to teach
Maths and English.
Akshay Patra Provide mid-day meals to the Government school children and thereby
eradicate class room hunger and malnutrition.

(v) Details of CSR Activities for the financial year ended March 31, 2023
Details of Other than Ongoing CSR Projects
Organisation Purpose
Cancer Cure Fund - Indian Cancer Society To promote healthcare by providing financial aid to underprivileged and low-
income patients diagnosed with any curable/ early detected cancers through
the empaneled hospitals.
Indian Cancer Society – AKITF To promote healthcare by providing financial aid to underprivileged and low-
income patients who are unable to afford the initial costs of diagnosis and or
treatment for cancer through the empaneled hospitals.
Dharamshala Project To promote healthcare by providing support to the Dharamshala Project for
affordable accommodation to out- station cancer patients and their families
through the Rotary Club of Bombay.
Pericia Healthcare To promote healthcare by providing financial aid to up-skill doctors, nurses
and healthcare workers by imparting technical knowledge regarding use of
healthcare equipment.

ANNUAL REPORT 2023-24 207

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Organisation Purpose
Ashoka University To promote education by providing part support towards the expansion of
Ashoka University.
Sampark Foundation To promote education by providing support to improve the learning outcomes
of children in 4,000+ schools and training of teachers across four aspirational
districts of Maharashtra through distribution of learning kits.
Bombay Scottish Orphanage Society To provide financial support towards the restoration and refurbishment of the
Heritage Site of The Bombay Scottish Orphanage Society.
Parivaar Seva Kutirs in Madhya Pradesh To eradicate malnutrition and promote education for children by establishing
Seva Kutirs in the villages of Madhya Pradesh. The Funds would be utilised
towards the operation of 60 Seva Kutirs.
Rotary Club of Bombay - Urban Forest Project To promote environmental sustainability and ecological balance through Urban
(Biodiversity Park) Forest using Akira Miyawaki technique and rejuvenating the water body part of
the project site.
Olympic Gold Quest To promote sports by providing training to nationally recognised Paralympic and
Olympic sports.

(vi) Contribution for CSR

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Opening Balance:
- With Company - 5.24
- In Separate CSR Unspent A/c - 5.50
Amount Transferred in Separate CSR Unspent A/c during the year
- From balance with the Company - 5.24
- To Separate CSR Unspent A/c - 5.24
Amount required to be spent during the year as per Section 135 (5) of the Companies Act, 2013 31.29 31.68
Amount spent during the year:
- From Company's bank A/c 31.29 31.68
- From Separate CSR Unspent A/c - 10.74
Closing Balance:
- With Company - -
- In Separate CSR Unspent A/c - -

(vii) Excess amount spent

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Opening Balance - -
Amount required to be spent during the year 31.29 31.68
Amount spent during the year 31.29 31.68
Closing Balance - -

208 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Note 33 Dividend Paid and Proposed

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Dividends on equity shares declared and paid during the year:
Final dividend
Paid for the earlier financial year 1,024.65 895.86
Dividend per share for the earlier financial year (`) 48.00 42.00
Total dividend paid 1,024.65 895.86
Dividend on Equity Shares proposed by the Board of Directors for approval at Annual General
Meeting (not recognised as a liability at the respective year end)
Final dividend for the same financial year 1,494.39 1,024.44
Dividend per share for the same financial year (`) 70.00 48.00

Note 34 Capital Management

Equity share capital and other equity are considered for the purpose of Company’s capital management. The Company
manages its capital in a manner which enables it to safeguard its ability to continue as a going concern and to optimise returns to
the Shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day
needs with a focus on total equity so as to maintain investor, creditors and market confidence. The funding requirements are
met through operating cash flows and other equity. The management monitors the return on capital and the board of directors
monitors the level of dividends paid to shareholders of the Company. The Company may take appropriate steps in order to
maintain, or if necessary adjust, its capital structure.

ANNUAL REPORT 2023-24 209

210
Note 35 Financial Instruments
A. Classification and Fair Values of Financial Assets & Liabilities
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair
value hierarchy.
` (in Crore)
Particulars Carrying Amount Fair Value
Amortised Total Carrying
As at March 31, 2024 FVTPL Level 1 Level 2 Level 3 Total
Cost amount

POWERED BY PURPOSE
Financial Assets
Investments in:- #
for the year ended March 31, 2024

Mutual Funds 6,648.64 - 6,648.64 6,477.06 171.58 - 6,648.64

Debt Securities 8.22 263.50 271.72 - 280.42 8.22 288.64
Equity Instrument in Others 24.27 - 24.27 - - 24.27 24.27
Investment in Alternative 206.07 - 206.07 - 34.78 171.29 206.07
HDFC ASSET MANAGEMENT COMPANY LIMITED

Investment Funds
Investment in Venture Capital Fund 5.33 - 5.33 - - 5.33 5.33
Trade & Other Receivables* - 106.45 106.45 106.45
Cash and Cash Equivalents* - 10.21 10.21 10.21
Other Bank Balances* - 0.96 0.96 0.96
Other Financial Asset* - 21.16 21.16 21.16
Total 6,892.53 402.28 7,294.81 6,477.06 486.78 209.11 7,311.73
Financial Liabilities
Trade Payables* - 38.79 38.79 38.79
Other Financial Liabilities
Lease Liabilities - 124.95 124.95 - 125.92 - 125.92
Others* - 81.84 81.84 81.84
Total Other Financial Liabilities - 206.79 206.79 - 125.92 - 207.76
Total - 245.58 245.58 - 125.92 - 246.55
Notes to Standalone Financial Statements
 ` (in Crore)
Particulars Carrying Amount Fair Value
Amortised Total Carrying
As at March 31, 2023 FVTPL Level 1 Level 2 Level 3 Total
Cost amount
Financial Assets
Investments in:- #
Mutual Funds 5,476.86 - 5,476.86 5,326.88 149.98 - 5,476.86
Debt Securities 7.41 417.94 425.35 - 440.71 7.41 448.12
Equity Instrument in Others 23.18 - 23.18 - - 23.18 23.18
Investment in Alternative 127.57 - 127.57 - - 127.57 127.57
Investment Funds
for the year ended March 31, 2024

Investment in Venture Capital Fund 23.20 - 23.20 - - 23.20 23.20

Trade & Other Receivables* - 196.33 196.33 196.33
Cash and Cash Equivalents* - 3.12 3.12 3.12
Other Bank Balances* - 0.89 0.89 0.89
Other Financial Asset* - 31.18 31.18 31.18
Total 5,658.22 649.46 6,307.68 5,326.88 590.69 181.36 6,330.45
Financial Liabilities
Trade Payables* - 34.38 34.38 34.38
Other Financial Liabilities
Lease Liabilities - 130.47 130.47 - 129.76 - 129.76
Others* - 75.59 75.59 75.59
Total Other Financial Liabilities - 206.06 206.06 - 129.76 - 205.35
Total - 240.44 240.44 - 129.76 - 239.73
#
Investment in subsidiary which are carried at cost have not been included above.

*Fair value of cash and cash equivalents, other bank balances, trade & other receivables, other financial assets, trade payables and other financial liabilities (excluding
lease liabilities) approximate their carrying amounts largely due to current maturities of these instruments. Accordingly, fair value hierarchy for these financial
instruments have not been presented above.

For the purpose of disclosure, quoted price is considered as the fair value of financial assets that are measured at amortised cost. However, they are shown under
level 2 in the fair value hierarchy as they are thinly traded.
Notes to Standalone Financial Statements
FINANCIAL STATEMENTS

ANNUAL REPORT 2023-24

211
STANDALONE
HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

B. Fair value hierarchy

As per Ind AS 107, 'Financial Instruments: Disclosures', the fair values of the financial assets or financial liabilities are
defined as the price that would be received on sale of asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either
observable or unobservable. The hierarchy gives the highest priority to quoted prices in active markets for identical assets
or liabilities and lowest priority to unobservable inputs.
The hierarchy used is as follows:

Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Investment in open
ended Mutual Funds are included in Level 1.

Level 2 — Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices). Lease liabilities and Investment in close ended
Mutual Funds, Alternative Investment Fund and Debt Securities that are not traded in active market are included
in Level 2.

Level 3 — Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or
in part using a valuation model based on assumptions that are neither supported by prices from observable
current market transactions in the same instrument nor are they based on available market data. Investment in
unlisted Debt Securities, unlisted Equity Instruments, Alternative Investment Funds and Venture Capital Fund
are included in Level 3.

C. Valuation techniques used to determine fair value

Financial instrument Valuation technique
Mutual Funds Net Asset Value (NAV) declared by the mutual fund at which units are issued or redeemed/quoted price
Debt Securities Discounted cash flow based on present value of the expected future economic benefit/quoted price
Equity Instruments in Others Underlying Asset Approach/Discounted cash flow based on present value of the expected future
economic benefit
Alternative Investment Funds Net Asset Value (NAV) provided by issuer fund which is arrived at based on valuation from independent
and Venture Capital Fund valuer for unlisted portfolio companies, quoted price of listed portfolio companies and price of recent
investments
Lease Liabilities Discounted cash flows based on present value of expected payments, discounted using a risk-adjusted
discount rate

In order to assess Level 3 valuations as per Company’s investment policy, the management reviews the performance of the
investee companies (including unlisted portfolio companies of venture capital funds and alternative investment funds) on
a regular basis by tracking their latest available financial statements/financial information, valuation report of independent
valuers, recent transaction results etc. which are considered in valuation process.

The finance department of the Company includes the team that performs the valuation of financial assets and liabilities
required for financial reporting purposes, including level 3 fair value. The team reports directly to the Chief Financial Officer
(CFO) of the Company. Discussions of valuation processes and results are held between the valuation team and the senior
management at least once every three months which is in line with the Company’s quarterly reporting periods.

212 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

D. Valuation inputs and relationship to fair value

The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair
value measurement.

As at March 31, 2024

Significant
Probability
Financial Instrument unobservable Sensitivity of input to fair value measurement
weights/range
inputs
Debt Securities Valuation 10% - 20% A 10% increase in the valuation factor would decrease the carrying value of
Factor investment by `0.82 Crore. A 10% decrease in the valuation factor would
increase the carrying value of investment by `0.82 Crore.
Equity Instruments in Valuation 10% - 20% A 10% increase in the valuation factor would decrease the carrying value of
Others Factor investment by `2.43 Crore. A 10% decrease in the valuation factor would
increase the carrying value of investment by `2.43 Crore.
Alternative Investment Net Asset 0.90x -1.10x A 10% increase in the NAV would increase the carrying value of investment by
Funds Value (NAV) `17.13 Crore. A 10% decrease in the NAV would decrease the carrying value
of investment by `17.13 Crore.
Venture Capital Fund Net Asset 0.90x -1.10x A 10% increase in the NAV would increase the carrying value of investment by
Value (NAV) `0.53 Crore. A 10% decrease in the NAV would decrease the carrying value of
investment by `0.53 Crore.

As at March 31, 2023

Significant
Probability
Financial Instrument unobservable Sensitivity of input to fair value measurement
weights/range
inputs
Debt Securities Valuation 10% - 20% A 10% increase in the valuation factor would decrease the carrying value of
Factor investment by `0.74 Crore. A 10% decrease in the valuation factor would
increase the carrying value of investment by `0.74 Crore.
Equity Instruments in Valuation 10% - 20% A 10% increase in the valuation factor would decrease the carrying value of
Others Factor investment by `2.32 Crore. A 10% decrease in the valuation factor would
increase the carrying value of investment by `2.32 Crore.
Alternative Investment Net Asset 0.90x -1.10x A 10% increase in the NAV would increase the carrying value of investment by
Funds Value (NAV) `12.51 Crore. A 10% decrease in the NAV would decrease the carrying value
of investment by `12.51 Crore.
Venture Capital Fund Net Asset 0.90x -1.10x A 10% increase in the NAV would increase the carrying value of investment by
Value (NAV) `2.32 Crore. A 10% decrease in the NAV would decrease the carrying value of
investment by `2.32 Crore.

ANNUAL REPORT 2023-24 213

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

E. Fair value measurement using significant unobservable inputs (level 3)

The following table shows a reconciliation from the opening balances to the closing balances for Level 3 fair values:
` (in Crore)
Investment Investment in
Equity Instrument
Particulars Debt Securities in Alternative Venture Capital Total
in Others
Investment Funds Fund
Balance as at April 01, 2022 6.98 22.85 115.70 23.11 168.64
Net gain/(losses) on Financial 0.43 - 10.80 1.58 12.81
Instruments recognised in the
Standalone Statement of Profit
and Loss
Purchases of Financial Instruments - 0.33 9.14 - 9.47
Sales of Financial Instruments - - (8.07) (1.49) (9.56)
Balance as at March 31, 2023 7.41 23.18 127.57 23.20 181.36
Net gain/(losses) on Financial 0.81 1.09 11.45 (7.21) 6.14
Instruments recognised in the
Standalone Statement of Profit
and Loss
Purchases of Financial Instruments - - 61.90 - 61.90
Sales of Financial Instruments - - (29.63) (10.66) (40.29)
Balance as at March 31, 2024 8.22 24.27 171.29 5.33 209.11

F. Financial Risk Management

Risk management is an integral part of the business practices of the Company. The Company's primary focus is to foresee
the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance.
The financial risks are managed in accordance with the Company's risk management policy which has been approved by
its Board of Directors. The Company’s Board of Directors has overall responsibility for managing the risk profile of the
Company. The purpose of risk management is to identify potential problems before they occur, so that risk-handling
activities may be planned and invoked as needed to manage adverse impacts on achieving objectives.
The Audit Committee of the Company reviews the development and implementation of the risk management policy of the
Company on periodic basis. The Audit Committee provides guidance on the risk management activities, review the results
of the risk management process and reports to the Board of Directors on the status of the risk management initiatives.

The Company has exposure to the following risks arising from Financial Instruments:
Risk Exposure arising from
Credit Risk Cash and cash equivalents, other bank balances, trade & other receivables, financial assets
measured at amortised cost
Liquidity Risk Financial liabilities
Market Risk - Foreign Exchange Recognised financial assets not denominated in `
Market Risk - Interest Rate Investments in debt securities
Market Risk - Price Investments in equity securities, units of mutual funds, debt securities measured at FVTPL, venture
capital fund and alternative investment funds

214 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

i. Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations and arises principally from the Company's trade and other receivables, cash and cash
equivalents, and financial assets measured at amortised cost.

Exposure to credit risk is mitigated through regular monitoring of collections, counterparty’s creditworthiness and
diversification in exposure.

Exposure to Credit Risk

The carrying amount of financial assets represents maximum amount of credit exposure. The maximum exposure to
credit risk is as per the table below, it being total of carrying amount of cash and cash equivalent, other bank balances,
trade and other receivables and financial assets measured at amortised cost.
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Maximum exposure to credit risk 402.28 649.46

Expected Credit Loss (ECL) on Financial Assets

The Company continuously monitors all financial assets subject to ECLs. In order to determine whether an instrument
is subject to 12 month ECL (12mECL) or life time ECL (LTECL), the Company assesses whether there has been a
significant increase in credit risk or the asset has become credit impaired since initial recognition. The Company
applies following quantitative and qualitative criteria to assess whether there is significant increase in credit risk or
the asset has been credit impaired:

• Historical trend of collection from counterparty

• Company’s contractual rights with respect to recovery of dues from counterparty

• Credit rating of counterparty and any relevant information available in public domain.

 ECL is a probability weighted estimate of credit losses. It is measured as the present value of cash shortfalls
(i.e. the difference between the cash flows due to the Company in accordance with contract and the cash flows that
the Company expects to receive).

The Company has three types of financial assets that are subject to the expected credit loss:

• Trade & other receivables and other financial assets

• Cash and cash equivalents and other bank balances

• Investment in debt securities measured at amortised cost

Trade & Other Receivables and Other Financial Assets

Exposures to customers' outstanding at the end of each reporting period are reviewed by the Company to determine
incurred and expected credit losses. Historical trends of collection from counterparties on timely basis reflects low
level of credit risk. As the Company has a contractual right to such receivables as well as control over preponderant
amount of such funds due from customers, the Company does not estimate any credit risk in relation to such
receivables. Further, management believes that the unimpaired amounts that are past due by more than 180 days are
still collectible in full, based on historical payment behaviour.

ANNUAL REPORT 2023-24 215

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

 The Company has placed security deposit with lessors for premises leased by the Company. The Company does not
perceive any significant decline in credit risk profile of the lessors where the amount of security deposit is material
and hence expected probability of default is considered as zero.

Cash and Cash Equivalents and Other Bank Balances

 The Company holds cash and cash equivalents and other bank balances as per note 4 and 5. The credit worthiness
of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to
be high.

Investment in Debt Securities measured at amortised cost

The Company has made investments in tax free bonds. Funds are invested after taking into account parameters like
safety, liquidity and post tax returns etc. The Company avoids concentration of credit risk by spreading them over
several counterparties with good credit rating profile and sound financial position. The Company’s exposure and
credit ratings of its counterparties are monitored on an ongoing basis.

Investment in debt securities that are in tax free bonds do not carry any credit risk, being sovereign in nature. Credit
risk from other financial assets has not increased significantly since initial recognition. Accordingly, the expected
probability of default is low.

ii. Liquidity Risk

Liquidity risk is defined as the risk that the Company will encounter difficulty in meeting obligations associated
with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of
the possibility that the Company might be unable to meet its payment obligations when they fall due as a result of
mismatches in the timing of the cash flows under both normal and stress circumstances. Such scenarios could occur
when funding needed for illiquid asset positions is not available to the Company on acceptable terms.

To limit this risk, management has adopted a policy of managing assets with liquidity in mind and monitoring future
cash flows and liquidity on a regular basis. The Company has developed internal control processes for managing
liquidity risk.

The Company maintains a portfolio of highly marketable and diverse assets that are assumed to be easily liquidated
in the event of an unforeseen interruption in cash flow. The Company assesses the liquidity position under a variety
of scenarios, giving due consideration to stress factors relating to both the market in general and specifically to
the Company.

Exposure to Liquidity Risk

The table below analyses the Company's financial liabilities into relevant maturity pattern based on their contractual
maturities for all financial liabilities.
` (in Crore)
Contractual Cash Flows
As at March 31, 2024 Carrying amount
Total 1 year or less More than 1 year
Financial Liabilities
Trade Payables 38.79 38.79 38.79 -
Lease Liability (remaining contractual maturities) 124.95 148.51 45.15 103.36
Other Financial Liabilities (excluding Lease Liability) 81.84 81.84 81.84 -
Total 245.58 269.14 165.78 103.36

216 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

` (in Crore)
Contractual Cash Flows
As at March 31, 2023 Carrying amount
Total 1 year or less More than 1 year
Financial Liabilities
Trade Payables 34.38 34.38 34.38 -
Lease Liability (remaining contractual maturities) 130.47 154.75 43.11 111.64
Other Financial Liabilities (excluding Lease Liability) 75.59 75.59 75.59 -
Total 240.44 264.72 153.08 111.64

iii. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument that may
result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices).
The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk.

Currency Risk
The Company has insignificant amount of foreign currency denominated assets. Accordingly, the exposure to
currency risk is insignificant.

Interest Rate Risk

The Company's investments are primarily in fixed rate interest instruments. Accordingly, the exposure to interest
rate risk is also insignificant.

Price Risk
Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and
related market variables including interest rate for investments in debt oriented mutual funds and debt securities,
whether caused by factors specific to an individual investment, its issuer or the market. The Company’s exposure
to price risk arises from investments in equity securities, debt securities, units of mutual funds, venture capital fund
and alternative investment funds which are classified as financial assets at Fair Value Through Profit or Loss and is
as follows:
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Exposure to price risk 6,892.53 5,658.22

To manage its price risk from investments in equity securities, debt securities, units of mutual funds, venture capital
fund and alternative investment funds, the Company diversifies its portfolio.

Sensitivity Analysis
The table below sets out the effect on profit or loss and equity due to reasonable possible weakening/strengthening
in prices by 5%:
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Effect on Profit and Loss
5% increase in the prices 344.63 282.91
5% decrease in the prices (344.63) (282.91)

ANNUAL REPORT 2023-24 217

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Note 36 Maturity Analysis of Assets and Liabilities

The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered
or settled.
` (in Crore)
As at March 31, 2024 As at March 31, 2023
Particulars Within After Within After
Total Total
12 months 12 months 12 months 12 months
Assets
Financial Assets
Cash and Cash Equivalents 10.21 - 10.21 3.12 - 3.12
Bank Balance other than above 0.96 - 0.96 0.89 - 0.89
Receivables
(i) Trade Receivables 93.27 - 93.27 183.74 - 183.74
(ii) Other Receivables 7.77 5.41 13.18 8.35 4.24 12.59
Investments 1,616.85 5,573.18 7,190.03 1,104.71 4,974.45 6,079.16
Other Financial Assets 6.16 15.00 21.16 19.28 11.90 31.18
Sub-total - Financial Assets 1,735.22 5,593.59 7,328.81 1,320.09 4,990.59 6,310.68
Non Financial Assets
Current Tax Assets (net) - 31.04 31.04 - 30.46 30.46
Property, Plant and Equipment - 136.34 136.34 - 137.59 137.59
Intangible Assets Under Development - 0.87 0.87 - 2.14 2.14
Goodwill - 6.04 6.04 - 6.04 6.04
Other Intangible Assets - 8.92 8.92 - 6.84 6.84
Other Non Financial Assets 33.99 11.54 45.53 37.63 5.15 42.78
Sub-total - Non Financial Assets 33.99 194.75 228.74 37.63 188.22 225.85
Total Assets 1,769.21 5,788.34 7,557.55 1,357.72 5,178.81 6,536.53
Liabilities
Financial Liabilities
Payables
Trade payables
(i) Total Outstanding Dues of 1.08 - 1.08 - - -
Micro Enterprises and Small
Enterprises
(ii) Total Outstanding Dues 37.71 - 37.71 34.38 - 34.38
of Creditors other than
Micro Enterprises and Small
Enterprises
Other Financial Liabilities 119.03 87.76 206.79 110.38 95.68 206.06
Sub-total - Financial Liabilities 157.82 87.76 245.58 144.76 95.68 240.44
Non Financial Liabilities
Current Tax Liabilities (net) 6.26 - 6.26 18.39 - 18.39
Provisions 2.14 14.24 16.38 1.62 10.95 12.57
Deferred Tax Liabilities (net) - 115.56 115.56 - 100.77 100.77
Other Non Financial Liabilities 94.70 - 94.70 55.95 - 55.95
Sub-total - Non Financial Liabilities 103.10 129.80 232.90 75.96 111.72 187.68
Total Liabilities 260.92 217.56 478.48 220.72 207.40 428.12

218 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

Notes to Standalone Financial Statements

for the year ended March 31, 2024

Note 37 Statutory disclosure required as per Schedule III Division III of the Companies Act, 2013
(i) Ratios
` (in Crore)
Ratios Numerator Denominator March 31, 2024 % Variance
(a) Capital to risk-weighted assets ratio (CRAR)* - - - -
(b) Tier I CRAR* - - - -
(c) Tier II CRAR * - - - -
(d) Liquidity Coverage Ratio (no.of times) 1,735.22 260.92 6.65 11.20
[Total Financial Assets (within 12 months)/Total
Liabilities (within 12 months)]
This has increased as Financial asset balances and
specifically, investments which are maturing within
12 months from the reporting date including new
purchases, have changed.

` (in Crore)
Ratios Numerator Denominator March 31, 2023 % Variance
(a) Capital to risk-weighted assets ratio (CRAR)* - - - -
(b) Tier I CRAR* - - - -
(c) Tier II CRAR * - - - -
(d) Liquidity Coverage Ratio (no.of times) 1,320.09 220.72 5.98 (25.23)
[Total Financial Assets (within 12 months)/Total
Liabilities (within 12 months)]
This has decreased as Financial asset balances and
specifically, investments which are maturing within
12 months from the reporting date including new
purchases, have changed.

*Note: Since the Company is not in lending business, it does not have any credit exposure. Hence, these ratios are not applicable to the Company.

(ii)  Relationship with Struck off Companies

The transactions with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies
Act, 1956 are disclosed below:

As at March 31, 2024 As at March 31, 2023

Nature of transactions Relationship Relationship
Sr Name of struck off Transaction Transaction
with struck-off Balance with the Balance with the
No. Company during the during the
Company outstanding Struck off outstanding Struck off
year year
company company
1 Vitalink Wealth Shares held by - 13 None - 13 None
Advisory Services struck off company
Private Limited (No.)
Dividend paid during 624 - None 546 - None
the year (`)

(iii) The Company is in compliance with number of layers of companies, as prescribed under clause (87) of Section 2 of the Act
read with the Companies (Restriction on number of Layers) Rules, 2017.

ANNUAL REPORT 2023-24 219

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Standalone Financial Statements

for the year ended March 31, 2024

(iv) The Company does not have any transactions which were not recorded in the books of account, but offered as income
during the year in the income tax assessment.

(v)  The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(vi) No funds have been advanced/loaned/invested (from borrowed funds or from share premium or from any other sources/
kind of funds) by the Company to any other person(s) or entity(ies), including foreign entities (Intermediaries), with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties),
with the understanding (whether recorded in writing or otherwise) that the Company shall (i) directly or indirectly, lend
or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate
Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 38
The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on
which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into
effect and will record any related impact in the period in which the Code becomes effective.

As per our report attached of even date For and on behalf of the Board of Directors

For B S R & Co. LLP Deepak S. Parekh Navneet Munot

Chartered Accountants Chairman Managing Director & Chief Executive Officer
ICAI Firm Registration No.: 101248W/W-100022 (DIN: 00009078) (DIN: 05247228)

Kapil Goenka Naozad Sirwalla Sylvia Furtado

Partner Chief Financial Officer Company Secretary
Membership No:. 118189 (ACS: 17976)

Mumbai, April 19, 2024

220 POWERED BY PURPOSE

 FINANCIAL STATEMENTS STANDALONE

FORM AOC - 1
(Pursuant to first proviso to sub-section (3) of Section 129 of the Companies Act, 2013, read with Rule 5 of the Companies
(Accounts) Rules, 2014)

Statement containing salient features of the financial statement of subsidiary

in ` Crore, except % of shareholding
Sr
Particulars
no.

1 Name of the subsidiary HDFC AMC International (IFSC) Limited

2 The date since when subsidiary was acquired May 27, 2022

3 Reporting period for the subsidiary concerned, if different from the holding April 01, 2023 to March 31, 2024
company's reporting period.

4 Reporting currency and Exchange rate as on the last date of the relevant Financial INR
year in the case of foreign subsidiaries.

5 Share capital 34.00

6 Reserves and surplus (4.07)

7 Total assets 30.29

8 Total Liabilities 0.36

9 Investments -

10 Turnover -

11 Profit/(Loss) before taxation (3.15)

12 Provision for taxation 0.02

13 Profit/(Loss) after taxation (3.17)

14 Proposed Dividend -

15 Extent of shareholding (%) 100%

1. HDFC AMC International (IFSC) Limited is yet to commence the operations.

2. Turnover consists of Revenue from operations

For and on behalf of the Board of Directors

Deepak S. Parekh Navneet Munot

Chairman Managing Director & Chief Executive Officer
(DIN: 00009078) (DIN: 05247228)

Naozad Sirwalla Sylvia Furtado

Chief Financial Officer Company Secretary
(ACS: 17976)

ANNUAL REPORT 2023-24 221

HDFC ASSET MANAGEMENT COMPANY LIMITED

Independent Auditor’s Report

To the Members of HDFC Asset Management consolidated changes in equity and consolidated cash flows
Company Limited for the year then ended.

Report on the Audit of the Consolidated

Basis for Opinion
Financial Statements
We conducted our audit in accordance with the Standards
Opinion on Auditing (SAs) specified under Section 143(10) of the
We have audited the consolidated financial statements of Act. Our responsibilities under those SAs are further
HDFC Asset Management Company Limited (hereinafter described in the Auditor’s Responsibilities for the Audit
referred to as the (“Holding Company”) and its subsidiary of the Consolidated Financial Statements section of our
(Holding Company and its subsidiary together referred report. We are independent of the Group in accordance with
to as “the Group”), which comprise the consolidated the ethical requirements that are relevant to our audit of
balance sheet as at March 31, 2024, and the consolidated the consolidated financial statements in terms of the Code
statement of profit and loss (including other comprehensive of Ethics issued by the Institute of Chartered Accountants
income), consolidated statement of changes in equity and of India and the relevant provisions of the Act, and we have
consolidated statement of cash flows for the year then fulfilled our other ethical responsibilities in accordance with
ended, and notes to the consolidated financial statements, these requirements. We believe that the audit evidence we
including material accounting policies and other explanatory have obtained is sufficient and appropriate to provide a basis
information (hereinafter referred to as “the consolidated for our opinion on the consolidated financial statements.
financial statements”).

In our opinion and to the best of our information and according Key Audit Matter
to the explanations given to us, the aforesaid consolidated Key audit matters are those matters that, in our professional
financial statements give the information required by the judgement, were of most significance in our audit of the
Companies Act, 2013 (“Act”) in the manner so required and consolidated financial statements of the current period.
give a true and fair view in conformity with the accounting These matters were addressed in the context of our audit
principles generally accepted in India, of the consolidated of the consolidated financial statements as a whole, and in
state of affairs of the Group as at March 31, 2024, of its forming our opinion thereon, and we do not provide a separate
consolidated profit and other comprehensive income, opinion on these matters.

Key Audit Matter

See Note 3.5 and 19 to consolidated financial statements
The key audit matter How the matter was addressed in our audit
Investment Management Fee is a significant account balance In view of the significance of the matter we applied the
in the Consolidated Statement of Profit and Loss. Investment following audit procedures in this area, among others to
management fees from the Mutual fund consists of fees obtain sufficient appropriate audit evidence:
from various schemes which invest in different categories of
Testing of Design and Operating Effectiveness of controls:-
securities in the market like Equity, Debt etc.
i. 
Understood and evaluated the design and
We have identified revenue from investment management
implementation of authorisation controls and other
service as a key audit matter since:
key controls relating to recognition of investment
management fee;

ii. Test checked the operating effectiveness of

authorisation controls, and other key controls over
recognition of investment management fee.

222 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

The key audit matter How the matter was addressed in our audit
1. The calculation of investment management fees is a Substantive tests:
percentage of the assets under management ('AUM')
iii. Evaluated the appropriateness of revenue recognition in
managed by the Company. There is a process wherein
respect of investment management fee income based
approved fee rates is a manual input in the system for
on the requirements of Ind AS 115;
computation of Investment Management Fee income.
AUM is calculated by the system on a daily basis for iv. 
Obtained and tested arithmetical accuracy of
each scheme. investment management fee calculations and reconciled
investment management fee to amounts included in the
2. Multiple schemes of HDFC Mutual Fund require effective
consolidated financial statements for completeness of
monitoring over key financial terms and conditions
income recognition;
being captured and applied accurately. Any discrepancy
in such computations could result in misstatement v. Test checked that investment management fee rates
of investment management fee recognised in the were approved by authorised personnel before being
consolidated financial statements. manually entered in the system;

vi. Obtained and read the investment management fee

certification reports, issued by the statutory auditors of
mutual fund schemes for such work and reconciled the
certified amounts with the accounting records;

vii. Test checked the investment management fee invoices

and reconciled with the accounting records;

viii. 
Test checked the receipts of money of Investment
Management fee income in the bank statements;

ix. Evaluated the adequacy of disclosures relating to the

investment management fee earned by the Company.

Other Information Management's and Board of Directors

The Holding Company’s Management and Board of Directors Responsibilities for the Consolidated Financial
are responsible for the other information. The other Statements
information comprises the information included in the Annual
The Holding Company’s Management and Board of Directors
report, but does not include the financial statements and
are responsible for the preparation and presentation of
auditor’s report thereon. The Annual report is expected to be
these consolidated financial statements in term of the
made available to us after the date of this auditor’s report.
requirements of the Act that give a true and fair view of
Our opinion on the consolidated financial statements does the consolidated state of affairs, profit or loss and other
not cover the other information and we will not express any comprehensive income, consolidated statement of changes
form of assurance conclusion thereon. in equity and cash flows of the Group in accordance with the
accounting principles generally accepted in India, including
In connection with our audit of the consolidated financial
the Indian Accounting Standards (Ind AS) specified under
statements, our responsibility is to read the other information
Section 133 of the Act. The respective Management and
identified above when it becomes available and, in doing
Board of Directors of the companies included in the Group
so, consider whether the other information is materially
are responsible for maintenance of adequate accounting
inconsistent with the consolidated financial statements or our
records in accordance with the provisions of the Act for
knowledge obtained in the audit, or otherwise appears to be
safeguarding the assets of each company and for preventing
materially misstated.

ANNUAL REPORT 2023-24 223

HDFC ASSET MANAGEMENT COMPANY LIMITED

and detecting frauds and other irregularities; the selection The risk of not detecting a material misstatement resulting
and application of appropriate accounting policies; making from fraud is higher than for one resulting from error, as
judgements and estimates that are reasonable and prudent; fraud may involve collusion, forgery, intentional omissions,
and the design, implementation and maintenance of adequate misrepresentations, or the override of internal control.
internal financial controls, that were operating effectively for
• Obtain an understanding of internal control relevant to
ensuring the accuracy and completeness of the accounting
the audit in order to design audit procedures that are
records, relevant to the preparation and presentation of the
appropriate in the circumstances. Under Section 143(3)
consolidated financial statements that give a true and fair
(i) of the Act, we are also responsible for expressing our
view and are free from material misstatement, whether due
opinion on whether the Company has adequate internal
to fraud or error, which have been used for the purpose of
financial controls with reference to financial statements in
preparation of the consolidated financial statements by the
place and the operating effectiveness of such controls.
Management and Board of Directors of the Holding Company,
as aforesaid. • Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
In preparing the consolidated financial statements, the
related disclosures made by the Management and Board
respective Management and Board of Directors of the
of Directors.
companies included in the Group are responsible for assessing
the ability of each company to continue as a going concern, • Conclude on the appropriateness of the Management
disclosing, as applicable, matters related to going concern and Board of Directors use of the going concern basis
and using the going concern basis of accounting unless the of accounting in preparation of consolidated financial
respective Board of Directors either intends to liquidate the statements and, based on the audit evidence obtained,
Company or to cease operations, or has no realistic alternative whether a material uncertainty exists related to events
but to do so. or conditions that may cast significant doubt on the
appropriateness of this assumption. If we conclude that
The respective Board of Directors of the companies included
a material uncertainty exists, we are required to draw
in the Group are responsible for overseeing the financial
attention in our auditor’s report to the related disclosures
reporting process of each company.
in the consolidated financial statements or, if such
disclosures are inadequate, to modify our opinion. Our
Auditor’s Responsibilities for the Audit of the conclusions are based on the audit evidence obtained up to
Consolidated Financial Statements the date of our auditor’s report. However, future events or
Our objectives are to obtain reasonable assurance about conditions may cause the Group to cease to continue as a
whether the consolidated financial statements as a whole going concern.
are free from material misstatement, whether due to fraud • Evaluate the overall presentation, structure and content
or error, and to issue an auditor’s report that includes our of the consolidated financial statements, including the
opinion. Reasonable assurance is a high level of assurance, disclosures, and whether the consolidated financial
but is not a guarantee that an audit conducted in accordance statements represent the underlying transactions and
with SAs will always detect a material misstatement when it events in a manner that achieves fair presentation.
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they We communicate with those charged with governance of
could reasonably be expected to influence the economic the Holding Company and such other entity included in
decisions of users taken on the basis of these consolidated the consolidated financial statements of which we are the
financial statements. independent auditors regarding, among other matters, the
planned scope and timing of the audit and significant audit
As part of an audit in accordance with SAs, we exercise findings, including any significant deficiencies in internal
professional judgement and maintain professional skepticism control that we identify during our audit.
throughout the audit. We also:
We also provide those charged with governance with a
• Identify and assess the risks of material misstatement statement that we have complied with relevant ethical
of the consolidated financial statements, whether due requirements regarding independence, and to communicate
to fraud or error, design and perform audit procedures with them all relationships and other matters that may
responsive to those risks, and obtain audit evidence that is reasonably be thought to bear on our independence, and
sufficient and appropriate to provide a basis for our opinion. where applicable, related safeguards.

224 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

From the matters communicated with those charged with Holding Company and its subsidiary company
governance, we determine those matters that were of incorporated in India, none of the directors of
most significance in the audit of the consolidated financial the Group companies incorporated in India is
statements of the current period and are therefore the key disqualified as on March 31, 2024 from being
audit matters. We describe these matters in our auditor’s appointed as a director in terms of Section
report unless law or regulation precludes public disclosure 164(2) of the Act.
about the matter or when, in extremely rare circumstances,
f) With respect to the adequacy of the internal
we determine that a matter should not be communicated in
financial controls with reference to financial
our report because the adverse consequences of doing so
statements of the Holding Company and
would reasonably be expected to outweigh the public interest
its subsidiary company and the operating
benefits of such communication.
effectiveness of such controls, refer to our
separate Report in “Annexure B”.
Report on Other Legal and Regulatory
B. With respect to the other matters to be included in
Requirements
the Auditor’s Report in accordance with Rule 11 of
1. As required by the Companies (Auditors’ Report) Order, the Companies (Audit and Auditors) Rules, 2014, in
2020 (“the Order”) issued by the Central Government our opinion and to the best of our information and
of India in terms of Section 143(11) of the Act, we give in according to the explanations given to us:
the “Annexure A” a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable. a) The consolidated financial statements
disclose the impact of pending litigations as at
2 A. As required by Section 143(3) of the Act, we report, March 31, 2024 on the consolidated financial
to the extent applicable, that: position of the Group. Refer Note 30(a) to the
a) 
We have sought and obtained all the consolidated financial statements.
information and explanations which to the best b) 
The Group did not have any material
of our knowledge and belief were necessary foreseeable losses on long-term contracts
for the purposes of our audit of the aforesaid including derivative contracts during the year
consolidated financial statements. ended March 31, 2024.
b) In our opinion, proper books of account as c) There are no amounts which are required to
required by law relating to preparation of the be transferred to the Investor Education and
aforesaid consolidated financial statements Protection Fund by the Holding Company or
have been kept so far as it appears from our its subsidiary company incorporated in India
examination of those books. during the year ended March 31, 2024.
c) 
The consolidated balance sheet, the d) (i) 
The respective management of the
consolidated statement of profit and loss Holding Company and its subsidiary
(including other comprehensive income), the company incorporated in India whose
consolidated statement of changes in equity financial statements have been audited
and the consolidated statement of cash flows under the Act has represented that, to
dealt with by this Report are in agreement with the best of their knowledge and belief,
the relevant books of account maintained for as disclosed in the Note 36(v) to the
the purpose of preparation of the consolidated consolidated financial statements, no
financial statements. funds have been advanced or loaned or
d) 
In our opinion, the aforesaid consolidated invested (either from borrowed funds or
financial statements comply with the Ind AS share premium or any other sources or
specified under Section 133 of the Act. kind of funds) by the Holding Company
or subsidiary company to or in any
e) On the basis of the written representations other person(s) or entity(ies), including
received from the directors of the Holding foreign entities (“Intermediaries”), with
Company as on March 31, 2024 taken on the understanding, whether recorded
record by the Board of Directors of the in writing or otherwise, that the

ANNUAL REPORT 2023-24 225

HDFC ASSET MANAGEMENT COMPANY LIMITED

Intermediary shall directly or indirectly As stated in Note 31 to the consolidated

lend or invest in other persons or entities financial statements, the respective Board
identified in any manner whatsoever by of Directors of the Holding Company has
or on behalf of the Holding Company proposed final dividend for the year which
or subsidiary company (“Ultimate is subject to the approval of the respective
Beneficiaries”) or provide any guarantee, members at the ensuing Annual General
security or the like on behalf of the Meeting. The dividend declared is in
Ultimate Beneficiaries. accordance with Section 123 of the Act to the
extent it applies to declaration of dividend.
(ii) 
The respective management of the
Holding Company and its subsidiary f) Based on our examination which included test
company incorporated in India whose checks, the Company has used accounting
financial statements have been audited softwares for maintaining its books of account
under the Act has represented that, to which, along with access management tools,
the best of their knowledge and belief, as applicable, have a feature of recording
as disclosed in the Note 36(v) to the audit trail (edit log) facility and the same has
consolidated financial statements, no operated throughout the year for all relevant
funds have been received by the Holding transactions recorded in the respective
Company or subsidiary company from softwares. Further, during the course of our
any person(s) or entity(ies), including audit we did not come across any instance of
foreign entities (“Funding Parties”), with audit trail feature being tampered with.
the understanding, whether recorded
C. With respect to the matter to be included in the
in writing or otherwise, that the Holding
Auditor’s Report under Section 197(16) of the Act:
Company or subsidiary company shall
directly or indirectly, lend or invest in In our opinion and according to the information and
other persons or entities identified in any explanations given to us, the remuneration paid
manner whatsoever by or on behalf of the during the current year by the Holding Company
Funding Parties (“Ultimate Beneficiaries”) and its subsidiary company to its directors is in
or provide any guarantee, security or the accordance with the provisions of Section 197 of
like on behalf of the Ultimate Beneficiaries. the Act. The remuneration paid to any director by
the Holding Company and its subsidiary company
(iii) Based on the audit procedures performed
is not in excess of the limit laid down under Section
that have been considered reasonable and
197 of the Act. The Ministry of Corporate Affairs has
appropriate in the circumstances, nothing
not prescribed other details under Section 197(16)
has come to our notice that has caused us
of the Act which are required to be commented
to believe that the representations under
upon by us.
sub-clause (i) and (ii) of Rule 11(e), as
provided under (i) and (ii) above, contain
For B S R & Co. LLP
any material misstatement.
Chartered Accountants
e) The final dividend paid by the Holding Company Firm’s Registration No.: 101248W/W-100022
during the year, in respect of the same declared
for the previous year, is in accordance with Kapil Goenka
Section 123 of the Act to the extent it applies Partner
to payment of dividend. Place: Mumbai Membership No.: 118189
Date: April 19, 2024 ICAI UDIN: 24118189BKDBBV5027

226 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Annexure A to the Independent Auditor’s Report

on the Consolidated Financial Statements of HDFC Asset Management Company Limited for the year ended March 31, 2024

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ Section of our report of even
date)
(xxi) In our opinion and according to the information and explanations given to us, there are no qualifications or adverse remarks
by the respective auditors in the Companies (Auditors’ Report) Order, 2020 reports of the companies incorporated in India
and included in the consolidated financial statements.

For B S R & Co. LLP

Chartered Accountants
Firm’s Registration No.: 101248W/W-100022

Kapil Goenka
Partner
Place: Mumbai Membership No.: 118189
Date: April 19, 2024 ICAI UDIN: 24118189BKDBBV5027

ANNUAL REPORT 2023-24 227

HDFC ASSET MANAGEMENT COMPANY LIMITED

Annexure B to the Independent Auditor’s Report

on the Consolidated Financial Statements of HDFC Asset Management Company Limited for the year ended March 31, 2024

Report on the internal financial controls with of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable
reference to the aforesaid consolidated financial
financial information, as required under the Act.
statements under Clause (i) of sub-section 3 of
Section 143 of the Act Auditor’s Responsibility
(Referred to in paragraph 2(A)(f) under ‘Report on Other Our responsibility is to express an opinion on the internal
Legal and Regulatory Requirements’ section of our financial controls with reference to financial statements based
report of even date) on our audit. We conducted our audit in accordance with the
Opinion Guidance Note and the Standards on Auditing, prescribed
under Section 143(10) of the Act, to the extent applicable
In conjunction with our audit of the consolidated financial
to an audit of internal financial controls with reference to
statements of HDFC Asset Management Company Limited
financial statements. Those Standards and the Guidance Note
(hereinafter referred to as “the Holding Company”) as of and
require that we comply with ethical requirements and plan
for the year ended March 31, 2024, we have audited the internal
and perform the audit to obtain reasonable assurance about
financial controls with reference to financial statements of
whether adequate internal financial controls with reference to
the Holding Company and such company incorporated in India
financial statements were established and maintained and if
under the Act which is its subsidiary company, as of that date.
such controls operated effectively in all material respects.
In our opinion, the Holding Company and such company
Our audit involves performing procedures to obtain audit
incorporated in India which is its subsidiary company,
evidence about the adequacy of the internal financial controls
have, in all material respects, adequate internal financial
with reference to financial statements and their operating
controls with reference to financial statements and such
effectiveness. Our audit of internal financial controls with
internal financial controls were operating effectively as at
reference to financial statements included obtaining an
March 31, 2024, based on the internal financial controls with
understanding of internal financial controls with reference
reference to financial statements criteria established by the
to financial statements, assessing the risk that a material
Holding Company considering the essential components
weakness exists, and testing and evaluating the design
of such internal controls stated in the Guidance Note on
and operating effectiveness of internal control based on
Audit of Internal Financial Controls Over Financial Reporting
the assessed risk. The procedures selected depend on
issued by the Institute of Chartered Accountants of India
the auditor’s judgement, including the assessment of the
(the “Guidance Note”).
risks of material misstatement of the consolidated financial
statements, whether due to fraud or error.
Management’s and Board of Directors’
We believe that the audit evidence we have obtained is
Responsibilities for Internal Financial Controls
sufficient and appropriate to provide a basis for our audit
The respective Company's Management and the Board of opinion on the internal financial controls with reference to
Directors are responsible for establishing and maintaining financial statements.
internal financial controls based on the internal financial
controls with reference to financial statements criteria
Meaning of Internal Financial Controls with
established by the respective company considering the
essential components of internal control stated in the Reference to Financial Statements
Guidance Note. These responsibilities include the design, A company's internal financial controls with reference
implementation and maintenance of adequate internal to financial statements is a process designed to provide
financial controls that were operating effectively for reasonable assurance regarding the reliability of financial
ensuring the orderly and efficient conduct of its business, reporting and the preparation of financial statements for
including adherence to the respective company's policies, external purposes in accordance with generally accepted
the safeguarding of its assets, the prevention and detection accounting principles. A company's internal financial controls

228 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

with reference to financial statements include those policies of controls, material misstatements due to error or fraud
and procedures that (1) pertain to the maintenance of records may occur and not be detected. Also, projections of any
that, in reasonable detail, accurately and fairly reflect the evaluation of the internal financial controls with reference to
transactions and dispositions of the assets of the company; financial statements to future periods are subject to the risk
(2) provide reasonable assurance that transactions are that the internal financial controls with reference to financial
recorded as necessary to permit preparation of financial statements may become inadequate because of changes in
statements in accordance with generally accepted accounting conditions, or that the degree of compliance with the policies
principles, and that receipts and expenditures of the company or procedures may deteriorate.
are being made only in accordance with authorisations of
management and directors of the company; and (3) provide For B S R & Co. LLP
reasonable assurance regarding prevention or timely Chartered Accountants
detection of unauthorised acquisition, use, or disposition of Firm’s Registration No.: 101248W/W-100022
the company's assets that could have a material effect on the
financial statements. Kapil Goenka
Partner
Inherent Limitations of Internal Financial Controls Place: Mumbai Membership No.: 118189
Date: April 19, 2024 ICAI UDIN: 24118189BKDBBV5027
with Reference to Financial Statements
Because of the inherent limitations of internal financial
controls with reference to financial statements, including
the possibility of collusion or improper management override

ANNUAL REPORT 2023-24 229

HDFC ASSET MANAGEMENT COMPANY LIMITED

Consolidated Balance Sheet

as at March 31, 2024

` (in Crore)
As at As at
Particulars Note No.
March 31, 2024 March 31, 2023
Assets
I Financial Assets
a Cash and Cash Equivalents 4 10.33 4.46
b Bank Balance other than (a) above 5 29.69 2.57
c Receivables
(i) Trade Receivables 6 93.27 183.74
(ii) Other Receivables 7 13.18 11.24
d Investments 8 7,156.03 6,076.16
e Other Financial Assets 9 21.16 32.12
Sub-total Financial Assets 7,323.66 6,310.29
II Non Financial Assets
a Current Tax Assets (net) 31.12 30.46
b Property, Plant and Equipment 10 137.68 137.59
c Intangible Assets Under Development 10 0.87 2.14
d Goodwill 10 6.04 6.04
e Other Intangible Assets 10 8.92 6.84
f Other Non Financial Assets 11 45.56 42.78
Sub-total Non Financial Assets 230.19 225.85
Total Assets 7,553.85 6,536.14
Liabilities and Equity
Liabilities
I Financial Liabilities
A Payables
Trade Payables
(i) Total Outstanding Dues of Micro Enterprises and Small Enterprises 12 1.08 0.05
(ii) Total Outstanding Dues of Creditors Other than Micro Enterprises and 12 37.88 34.41
Small Enterprises
B Other Financial Liabilities 13 206.87 206.17
Sub-total - Financial Liabilities 245.83 240.63
II Non Financial Liabilities
a Current Tax Liabilities (net) 6.26 18.39
b Provisions 14 16.43 12.57
c Deferred Tax Liabilities (net) 15 115.56 100.77
d Other Non Financial Liabilities 16 94.76 55.96
Sub-total Non Financial Liabilities 233.01 187.69
Total Liabilities 478.84 428.32
III Equity
a Equity Share Capital 17 106.74 106.71
b Other Equity 18 6,968.27 6,001.11
Equity attributable to owners of the Parent Company 7,075.01 6,107.82
Non-controlling interest - -
Sub-total - Equity 7,075.01 6,107.82
Total Liabilities and Equity 7,553.85 6,536.14

See summary of material accounting policies and accompanying notes which form an integral part of the consolidated financial statements
As per our report attached of even date For and on behalf of the Board of Directors
For B S R & Co. LLP Deepak S. Parekh Navneet Munot
Chartered Accountants Chairman Managing Director & Chief Executive Officer
ICAI Firm Registration No.: 101248W/W-100022 (DIN: 00009078) (DIN: 05247228)
Kapil Goenka Naozad Sirwalla Sylvia Furtado
Partner Chief Financial Officer Company Secretary
Membership No.: 118189 (ACS: 17976)
Mumbai, April 19, 2024

230 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Consolidated Statement of Profit and Loss

for the year ended March 31, 2024

` (in Crore except per equity share data)

For the year ended For the year ended
Particulars Note No.
March 31, 2024 March 31, 2023
Revenue from Operations
Asset Management Services 19 2,584.37 2,166.81
Other Income 20 579.02 315.85
Total Income 3,163.39 2,482.66
Expenses
Finance Costs 28 9.09 9.69
Fees and Commission Expenses 2.48 3.68
Employee Benefits Expenses 21 354.06 312.67
Depreciation, Amortisation and Impairment 10 52.33 53.34
Other Expenses 22 270.41 233.22
Total Expenses 688.37 612.60
Profit before Tax 2,475.02 1,870.06
Tax Expense
Current Tax 25 517.54 421.26
Deferred Tax Charge/(Credit) 25 14.79 25.43
Total Tax Expense 532.33 446.69
Profit after Tax 1,942.69 1,423.37
Other Comprehensive Income
A (i) Items that will not be reclassified to profit or loss
- Remeasurement gain/(loss) of the defined benefit plans (2.14) 0.56
(ii) Income tax relating to items that will not be reclassified to profit or loss
- Tax on Remeasurement of the defined benefit plans 0.54 (0.14)
Sub-total (A) (1.60) 0.42
B (i) Items that will be reclassified to profit or loss
- Exchange differences on translating the financial statements of a subsidiary (0.27) (0.04)
Sub-total (B) (0.27) (0.04)
Total Other Comprehensive Income (A+B) (1.87) 0.38
Total Comprehensive Income 1,940.82 1,423.75
Profit Attributable to:
Owners of the Parent Company 1,942.69 1,423.37
Non-controlling interest - -
Other Comprehensive Income Attributable to:
Owners of the Parent Company (1.87) 0.38
Non-controlling interest - -
Total Comprehensive Income Attributable to:
Owners of the Parent Company 1,940.82 1,423.75
Non-controlling interest - -
Earnings Per Equity Share (Face Value `5) (see note 27)
- Basic 91.00 66.72
- Diluted 90.89 66.71

See summary of material accounting policies and accompanying notes which form an integral part of the consolidated financial statements
As per our report attached of even date For and on behalf of the Board of Directors
For B S R & Co. LLP Deepak S. Parekh Navneet Munot
Chartered Accountants Chairman Managing Director & Chief Executive Officer
ICAI Firm Registration No.: 101248W/W-100022 (DIN: 00009078) (DIN: 05247228)
Kapil Goenka Naozad Sirwalla Sylvia Furtado
Partner Chief Financial Officer Company Secretary
Membership No.: 118189 (ACS: 17976)
Mumbai, April 19, 2024

ANNUAL REPORT 2023-24 231

232
A. Equity Share Capital
` (in Crore)
Balance at the Changes in equity
Balance at the end of
Particulars beginning of the share capital during
the year
year the year
Equity Shares of `5 each (March 31, 2023: `5 each), fully paid up
As at March 31, 2023 106.64 0.07 106.71
As at March 31, 2024 106.71 0.03 106.74

B. Other Equity
` (in Crore)
Share Reserves and Surplus
Attributable Attributable

POWERED BY PURPOSE
Application Share Currency
Capital to Owners to Non-
Particulars Money - Securities General Options Retained Translation Total
Redemption of the Parent controlling
Pending Premium Reserve Outstanding Earnings Reserve
Reserve Company interest
for the year ended March 31, 2024

allotment Account
Opening balance as at April 01, 2022 0.00 52.41 591.52 174.97 72.68 4,531.82 - 5,423.40 5,423.40 -
Profit for the year - - - - - 1,423.37 - 1,423.37 1,423.37 -
Other Comprehensive Income - Remeasurement - - - - - 0.42 - 0.42 0.42 -
gain/(loss) of the defined benefit plans (net of tax)
Other Comprehensive Income - Exchange - - - - - - (0.04) (0.04) (0.04) -
HDFC ASSET MANAGEMENT COMPANY LIMITED

differences on translating the financial

statements of a subsidiary
Total Comprehensive Income for the year - - - - - 1,423.79 (0.04) 1,423.75 1,423.75 -
Final Equity Dividend Paid - - - - - (895.86) - (895.86) (895.86) -
Transfer from Share Options Outstanding - - 1.42 - (1.42) - - - - -
Account to Securities Premium (towards options
exercised)
Additions during the year 9.78 - 9.71 - 40.11 - - 59.60 59.60 -
Utilised during the year (9.78) - - - - - - (9.78) (9.78) -
Changes during the year - - 11.13 - 38.69 527.93 (0.04) 577.71 577.71 -
Closing balance as at March 31, 2023 0.00 52.41 602.65 174.97 111.37 5,059.75 (0.04) 6,001.11 6,001.11 -
Opening balance as at April 01, 2023 - 52.41 602.65 174.97 111.37 5,059.75 (0.04) 6,001.11 6,001.11 -
Profit for the year - - - - - 1,942.69 - 1,942.69 1,942.69 -
Other Comprehensive Income - Remeasurement - - - - - (1.60) - (1.60) (1.60) -
gain/(loss) of the defined benefit plans (net of tax)
Other Comprehensive Income - Exchange - - - - - - (0.27) (0.27) (0.27) -
differences on translating the financial
statements of a subsidiary
Total Comprehensive Income for the year - - - - - 1,941.09 (0.27) 1,940.82 1,940.82 -
Final Equity Dividend Paid - - - - - (1,024.65) - (1,024.65) (1024.65) -
Transfer from Share Options Outstanding - - 0.58 - (0.58) - - - - -
Account to Securities Premium (towards options
exercised)
Transfer from Share Options Outstanding - - - - (0.00) 0.00 - - - -
Account to Retained Earnings (towards options
lapsed after vesting)
Additions during the year 3.97 - 3.94 - 47.05 - - 54.96 54.96 -
Utilised during the year (3.97) - - - - - - (3.97) (3.97) -
Changes during the year - - 4.52 - 46.47 916.44 (0.27) 967.16 967.16 -
Closing balance as at March 31, 2024 - 52.41 607.17 174.97 157.84 5,976.19 (0.31) 6,968.27 6,968.27 -

See summary of material accounting policies and accompanying notes which form an integral part of the consolidated financial statements
Consolidated Statement of Changes in Equity

As per our report attached of even date For and on behalf of the Board of Directors
For B S R & Co. LLP Deepak S. Parekh Navneet Munot
Chartered Accountants Chairman Managing Director & Chief Executive Officer
ICAI Firm Registration No.: 101248W/W-100022 (DIN: 00009078) (DIN: 05247228)
Kapil Goenka Naozad Sirwalla Sylvia Furtado
Partner Chief Financial Officer Company Secretary
Membership No.: 118189 (ACS: 17976)
Mumbai, April 19, 2024
 FINANCIAL STATEMENTS CONSOLIDATED

Consolidated Statement of Cash Flows

for the year ended March 31, 2024

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
A. Cash Flow from Operating Activities
Profit Before Tax* 2,475.02 1,870.06
Add/(Less): Adjustments for
Depreciation, Amortisation and Impairment 52.33 53.34
Finance Costs 9.09 9.69
Share Based Payments to Employees 47.05 40.11
(Profit)/Loss on Sale of Investments (net) (15.48) (21.21)
Fair Value (Gain)/Loss on Investments (531.18) (260.07)
Net (Gain)/Loss on foreign currency transactions and translations 0.02 (0.01)
(Profit)/Loss on Derecognition of Property, Plant and Equipment and Other Intangible Assets (net) (0.05) (0.11)
Investment Income from Financial Instruments (25.39) (28.91)
Other Interest Income (3.13) (1.98)
Operating Profit before working capital changes 2,008.28 1,660.91
Adjustments for:
(Increase)/Decrease in Trade Receivables 90.48 (109.21)
(Increase)/Decrease in Other Receivables (1.94) (5.26)
(Increase)/Decrease in Other Financial Assets (0.20) (0.98)
(Increase)/Decrease in Other Non-Financial Assets (3.31) (12.47)
Increase/(Decrease) in Trade Payable 4.52 5.23
Increase/(Decrease) in Other Financial Liabilities 6.12 0.99
Increase/(Decrease) in Provisions 3.86 0.78
Increase/(Decrease) in Other Non-Financial Liabilities 36.66 19.57
Cash generated from/(used in) operations 2,144.47 1,559.56
Income Tax Paid (529.78) (410.21)
Net cash from/(used in) operating activities (A) 1,614.69 1,149.35
B. Cash Flow from Investing Activities
Purchase of Property, Plant and Equipment and Other Intangible Assets (19.03) (14.10)
Proceeds from Sale of Property, Plant and Equipment and Other Intangible Assets 0.05 0.12
Purchase of Investments (3,634.80) (3,310.33)
Proceeds from Sale of Investments 3,102.24 3,073.54
Dividend Received 0.23 0.23
Interest Received 35.80 35.37
Investments in Fixed Deposits (52.00) (1.64)
Proceeds from Fixed Deposits 25.31 -
Net cash from/(used in) investing activities (B) (542.20) (216.81)

ANNUAL REPORT 2023-24 233

HDFC ASSET MANAGEMENT COMPANY LIMITED

Consolidated Statement of Cash Flows

for the year ended March 31, 2024

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
C. Cash Flow from Financing Activities
Proceeds from Issuance of Share Capital 3.97 9.78
Principal Element of Lease Payments (36.41) (34.13)
Interest Element of Lease Payments (9.09) (9.69)
Final Equity Dividend Paid (1,024.65) (895.86)
Net cash from/(used in) financing activities (C) (1,066.18) (929.90)
Net Increase/(Decrease) in Cash and Cash Equivalents (A + B + C) 6.31 2.64
Cash and Cash Equivalents at the beginning of the year 4.46 1.87
Exchange differences on translation of foreign currency cash and cash equivalents (0.44) (0.05)
Cash and Cash Equivalents at the end of the year 10.33 4.46
Cash and cash equivalents comprising of:
Balance with banks 10.33 3.23
Fixed Deposit with Banks with original maturity of 3 months or less - 1.23
Total 10.33 4.46
*Amount spent towards Corporate Social Responsibility expense as per Section 135(5) of the 31.29 31.68
Companies Act, 2013

Note: The above Consolidated Statement of Cash Flows has been prepared under the 'Indirect Method' as set out in Ind AS 7, 'Statement of Cash Flows
See summary of material accounting policies and accompanying notes which form an integral part of the consolidated financial statements
As per our report attached of even date For and on behalf of the Board of Directors
For B S R & Co. LLP Deepak S. Parekh Navneet Munot
Chartered Accountants Chairman Managing Director & Chief Executive Officer
ICAI Firm Registration No.: 101248W/W-100022 (DIN: 00009078) (DIN: 05247228)
Kapil Goenka Naozad Sirwalla Sylvia Furtado
Partner Chief Financial Officer Company Secretary
Membership No.: 118189 (ACS: 17976)
Mumbai, April 19, 2024

234 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

1. Group overview in Gujarat International Finance Tec-City (GIFT City),

Gandhinagar, India, had been incorporated effective

HDFC Asset Management Company Limited (‘the
May 27, 2022.
Company’) is a Public Limited Company domiciled in India
and its registered office is situated at HDFC House, 2nd The Company, together with its subsidiary, is hereinafter
Floor, H.T Parekh Marg, 165-166, Backbay Reclamation, referred to as ‘the Group’.
Churchgate, Mumbai - 400 020. The Company has
The equity shares of the Company have been listed
been incorporated under the Companies Act, 1956
on National Stock Exchange of India Limited and BSE
on December 10, 1999 and was approved to act as the
Limited since August 06, 2018.
Asset Management Company for HDFC Mutual Fund
by Securities and Exchange Board of India (SEBI) vide
its letter dated July 03, 2000. HDFC Trustee Company 2. Basis of preparation and recent accounting
Limited (‘the Trustee’) has appointed the Company to developments
act as the investment manager of HDFC Mutual Fund. 2.1 Basis of preparation
The Company is also registered under the SEBI (Portfolio a) Statement of compliance
Managers) Regulations, 1993 and provides Portfolio These consolidated financial statements have been
Management Services. Further, the Company acts prepared and presented on going concern basis and
as an Investment Manager to HDFC AMC AIF-II, a in accordance with the Indian Accounting Standards
trust registered with SEBI as a Category II Alternative (Ind AS) as per the Companies (Indian Accounting
Investment Fund under the SEBI (Alternative Investment Standards) Rules, 2015 notified under Section 133
Funds) Regulations, 2012. of the Companies Act, 2013, (the ‘Act’) and other
HDFC Bank Limited (‘HDFC Bank’) has become the relevant provisions of the Act, as amended from
Holding Company and Promoter of HDFC Asset time to time.
Management Company Limited, in place of Housing The consolidated financial statements were
Development Finance Corporation Limited (‘HDFC approved for issue by the Company’s Board of
Ltd.’), with effect from July 01, 2023, pursuant to the Directors on April 19, 2024.
Composite scheme of amalgamation of: (i) HDFC
Investments Limited and HDFC Holdings Limited, Details of the Group’s material accounting policies
wholly-owned subsidiaries of HDFC Ltd. with and into are included in Note 3.
HDFC Ltd.; and (ii) HDFC Ltd. with and into HDFC Bank.
b) Presentation of consolidated financial statements
On June 20, 2023, abrdn Investment Management
The Group presents its consolidated balance sheet
Limited (‘abrdn’), one of the promoters of the Company,
in order of liquidity. An analysis regarding recovery
sold its entire stake in the Company and subsequent
or settlement within 12 months after the reporting
to the approval granted by Stock Exchanges for
date and more than 12 months after the reporting
reclassification of abrdn from the 'Promoter' category to
date is presented in Note 34.
'Public' Category, effective September 18, 2023, abrdn
ceases to be the promoter of the Company.
c) Functional and presentation currency
As at March 31, 2024, HDFC Bank Limited, the holding Indian Rupee (`) is the currency of the primary
Company owned 52.55% of the Company’s equity economic environment in which the Company
share capital. operates and hence it is the functional currency of
A Wholly-owned Subsidiary ('WOS') of the Company the Company. Accordingly, the management has
namely 'HDFC AMC International (IFSC) Limited', located determined that consolidated financial statements
should be presented in Indian Rupees (`).

ANNUAL REPORT 2023-24 235

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

d) Foreign currency transactions and balances f) Basis of measurement

Foreign currency transactions are translated into The consolidated financial statements have been
the functional currency using the exchange rates prepared on the historical cost basis except for the
at the dates of the transactions. Foreign currency following items:
denominated monetary assets and liabilities are
Items Measurement basis
remeasured into the functional currency at the Certain financial Fair value
exchange rate prevailing on the reporting date. instruments (as explained
Foreign exchange gains and losses resulting from in the accounting policies
the settlement of such transactions and from below)
the translation of monetary assets and liabilities Net defined benefit asset/ Fair value of plan assets less
(liability) present value of defined
denominated in foreign currencies at year end benefit obligations
exchange rates are recognised in Consolidated Equity settled share based Fair value of the options
Statement of Profit and Loss. Non-monetary items payments granted as on the grant date
that are measured in terms of historical cost in
foreign currency are not re-translated. g) Use of estimates and judgements
Translation of financial statements of a subsidiary In preparing these consolidated financial
having functional currency other than Indian Rupee statements, management has made judgements,
(`) is carried out in accordance with Indian Accounting estimates and assumptions that affect the
Standard (Ind AS) 21 ‘The Effects of Changes in application of group’s accounting policies and the
Foreign Exchange Rates’. On consolidation, the reported amounts of assets, liabilities, income
assets and liabilities of the subsidiary are translated and expenses. Actual results may differ from
into Indian Rupee (`) using the rate of exchange these estimates.
prevailing at the reporting date and its Statement
The management believes that these estimates
of Profit and Loss is translated using an average
are prudent and reasonable and are based upon
rate to translate income and expense items. The
the management’s best knowledge of current
exchange differences arising from the translation of
events and actions as on the reporting date. Actual
financial statements of subsidiary having functional
results could differ from these estimates and
currency other than the Indian Rupee (`) is
differences between actual results and estimates
recognised in Other Comprehensive Income (OCI)
are recognised in the periods in which the results/
and is presented within other equity as currency
actions are known or materialised. Revisions to
translation reserve. Such exchange differences
accounting estimates are recognised prospectively.
recognised in currency translation reserve within
other equity are not reclassified to the Consolidated
Assumptions and estimation uncertainties
Statement of Profit and Loss until the disposal of
the Company’s interest in subsidiary. Information about critical judgements, assumptions
and estimation uncertainties that have a significant
e) Rounding Off risk of resulting in a material adjustment is included
in the following notes:
All amounts have been rounded-off to the
nearest Crore up to two decimal places, unless
• Note 3.3 (A) (iii) and 10 – estimates of useful
otherwise indicated.
lives and residual value of property, plant and
equipment, and other intangible assets;

236 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

• Note 10 – impairment test of non-financial The management regularly reviews significant

assets: key assumptions underlying recoverable unobservable inputs and valuation adjustments.
amounts including the recoverability of
Fair values are categorised into different levels in a
expenditure on intangible assets;
fair value hierarchy based on the inputs used in the
• Note 13 - determination of lease term and valuation techniques.
discount rate for lease liabilities;
When measuring the fair value of an asset or a
• Note 23 – measurement of defined benefit liability, the Group uses observable market data as
obligations: key actuarial assumptions; far as possible. If the inputs used to measure the
fair value of an asset or a liability fall into different
• Note 24 – share based payments;
levels of the fair value hierarchy, then the fair
• Note 25 – recognition of deferred tax assets; value measurement is categorised in its entirety
in the same level of the fair value hierarchy as
• Note 30 – recognition and measurement of
the lowest level input that is significant to the
provisions and contingencies; key assumptions
entire measurement.
about the likelihood and magnitude of an outflow
of resources, if any; The Group recognises transfers between levels of
the fair value hierarchy at the end of the reporting
• Note 33 – financial instruments – fair values, risk
period during which the change has occurred.
management and impairment of financial assets.

Further information about the assumptions
h) Measurement of fair values
made in measuring fair values is included in the
A number of the Group’s accounting policies following notes:
and disclosures require the measurement of fair
values, for both financial and non-financial assets • Note 24 - share based payment;
and liabilities.
• Note 33 - financial instruments – fair values
The Group has an established control framework and risk management and impairment of
with respect to the measurement of fair values. financial assets
Measurement of fair values includes determining
appropriate valuation techniques. i) Basis of consolidation
The consolidated financial statements comprise
The objective of valuation techniques is to arrive at
the financial statements of the Company and its
a fair value measurement that reflects the price that
subsidiary together referred to as ‘the Group’ as at
would be received on sale of asset or paid to transfer
and for the year ended March 31, 2024.
the liability in an orderly transaction between
market participants at the measurement date. A subsidiary is an entity which is controlled by the
Company. The Company controls an investee if and
Valuation models that employ significant
only if the Company has all the following elements
unobservable inputs require a higher degree of
of control:
judgement and estimation in the determination of
fair value. Judgement and estimation are usually (a) has power over the investee;
required for selection of the appropriate valuation
(b) has exposure, or rights, to variable returns
methodology, determination of expected future
from its involvement with the investee; and
cash flows on the financial instrument being valued,
determination of probability of counterparty (c) has the ability to use its power over the investee
default and selection of appropriate discount rates. to affect the amount of the Company’s returns.

ANNUAL REPORT 2023-24 237

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Generally, there is a presumption that a majority Consolidation Procedure

of voting rights result in control. To support this • Combine like items of assets, liabilities, equity,
presumption and when the Company has less income, expenses and cash flows of the
than a majority of the voting or similar rights of an Company with those of its subsidiary. For this
investee, the Company considers all relevant facts purpose, income and expenses of the subsidiary
and circumstances in assessing whether it has are based on the amounts of the assets and
power over an investee, including: liabilities recognised in the consolidated financial
statements at the acquisition date.
• The contractual arrangement with the other
vote holders of the investee. • Offset (eliminate) the carrying amount of the
Company’s investment in a subsidiary and the
• Rights arising from other contractual Company’s portion of equity in the subsidiary.
arrangements.
• Eliminate in full intragroup assets and liabilities,
• The Company’s voting rights and potential equity, income, expenses and cash flows relating
voting rights. to transactions between entities of the Group
• The size of the Company’s holding of voting (profits or losses resulting from intragroup
rights relative to the size and dispersion of the transactions that are recognised in assets, are
holdings of the other voting rights holders. eliminated in full). Intragroup losses may indicate
an impairment that requires recognition in the
The Company re-assesses whether or not it controls consolidated financial statements. Ind AS 12
an investee if facts and circumstances indicate Income Taxes applies to temporary differences
that there are changes to one or more of the three that arise from the elimination of profits and
elements of control. Consolidation of a subsidiary losses resulting from intragroup transactions.
begins when the Company obtains control over
the subsidiary and ceases when the Company loses Profit or loss and each component of OCI are
control of the subsidiary. Assets, liabilities, income attributed to the equity holders of the Company
and expenses of a subsidiary acquired or disposed and to the non-controlling interests (if any), even if
of during the year are included in the consolidated this results in the non-controlling interests having a
financial statements from the date the Company deficit balance.
gains control until the date the Company ceases to Where necessary, adjustments are made to the
control the subsidiary. financial statements of subsidiary to bring its
Consolidated financial statements are prepared using accounting policies in line with the Company’s
uniform accounting policies for like transactions and accounting policies. All intra-group assets,
other events in similar circumstances. If a member of liabilities, equity, income, expenses and cash flows
the Group uses accounting policies other than those relating to transactions between members of the
adopted in the consolidated financial statements for Group are eliminated in full on consolidation.
like transactions and events in similar circumstances, If the Company loses control over a subsidiary, it:
appropriate adjustments are made to that Group
member’s financial statements in preparing the • derecognises the assets (including goodwill, if
consolidated financial statements to ensure any) and liabilities of the subsidiary.
conformity with the Group’s accounting policies.
• derecognises the carrying amount of any non-
The financial statements of the subsidiary used controlling interests.
for the purpose of consolidation are at the same
reporting date as that of the Company, i.e. year • derecognises the cumulative translation
ended on March 31, 2024. differences recorded in equity.

238 POWERED BY PURPOSE

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Notes to Consolidated Financial Statements

for the year ended March 31, 2024

• recognises the fair value of the consideration received. at Fair Value Through Profit or Loss, is initially
measured at fair value plus or minus transaction
• recognises the fair value of any investment retained.
costs that are directly attributable to its acquisition
• recognises any surplus or deficit in profit or loss. or issue. Transaction costs of financial assets
carried at fair value through profit or loss are
• reclassifies the Company’s share of components
expensed in Consolidated Statement of Profit
previously recognised in OCI to profit or loss or
and Loss. Trade receivables that do not contain a
retained earnings, as appropriate, as would be
significant financing component are measured at
required if the Company had directly disposed of
transaction price.
the related assets or liabilities.

A change in the ownership interest of a subsidiary, (ii) Classification, subsequent measurement, gains
without loss of control, is accounted for as an and losses of financial assets
equity transaction. Classification:
The financial statements of HDFC AMC International On initial recognition, a financial asset is classified
(IFSC) Limited have been consolidated as per Ind AS as measured at
110 - Consolidated Financial Statements.
• Amortised Cost;
2.2 Recent Accounting Developments:
• Fair Value Through Other Comprehensive
Standards issued/amended but not yet effective Income (FVOCI); or
Ministry of Corporate Affairs ("MCA") notifies new
• Fair Value Through Profit or Loss (FVTPL)
standard or amendments to the existing standards.
There is no such notification on accounting Financial assets are not reclassified subsequent to
standards which would have been applicable to the their initial recognition, except if and in the period
Group from April 01, 2024. the Group changes its business model for managing
financial assets.
3. Material Accounting Policies A financial asset is measured at amortised cost if it
3.1 Cash and Cash Equivalents meets both of the following conditions and is not
Cash and cash equivalents include cash on hand, designated as at FVTPL:
demand deposits and other short-term, highly
liquid investments with original maturities of three • the asset is held within a business model whose
months or less that are readily convertible to objective is to hold assets to collect contractual
known amounts of cash and which are subject to an cash flows; and
insignificant risk of change in value. • the contractual terms of the financial asset give
rise on specified dates to cash flows that are
3.2 Financial instruments solely payments of principal and interest on the
(i) Recognition and initial measurement of financial principal amount outstanding.
assets and financial liabilities
A financial asset is measured at FVOCI if it meets
All financial assets and financial liabilities are initially both of the following conditions and is not
recognised when the Group becomes a party to the designated as at FVTPL:
contractual provisions of the instrument.

All the financial assets and financial liabilities • the asset is held within a business model whose
are initially recognised at fair value. A financial objective is achieved by both collecting contractual
asset or financial liability which is not recognised cash flows and selling financial assets; and

ANNUAL REPORT 2023-24 239

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

• the contractual terms of the financial asset give • terms that limit the Group’s claim to cash flows
rise on specified dates to cash flows that are from specified assets.
solely payments of principal and interest on the
Subsequent measurement and gains and losses:
principal amount outstanding.
Financial These assets are subsequently
However, on initial recognition of an equity
assets at measured at amortised cost using
investment that is not held for trading, the Group
amortised the effective interest rate method.
may irrevocably elect to present subsequent
cost The amortised cost is reduced by
changes in the investment’s fair value in Other
impairment losses. Interest income,
Comprehensive Income (OCI) (designated as FVOCI
foreign exchange gains and losses
– equity investment). This election is made on an
and impairment losses are recognised
investment‑by‑investment basis.
in the Consolidated Statement of
All financial assets not classified as measured at Profit and Loss. Any gain or loss on
amortised cost or FVOCI as described above are derecognition is recognised in the
measured at FVTPL. On initial recognition, the Consolidated Statement of Profit and
Group may irrevocably designate a financial asset as Loss.
at FVTPL that otherwise meets the requirements to Debt These assets are subsequently
be measured at amortised cost or at FVOCI, if doing investments measured at fair value. Interest
so eliminates or significantly reduces an accounting at FVOCI income under effective interest
mismatch that would otherwise arise. method, foreign exchange gains
and losses and impairment losses
Assessment whether contractual cash flows are are recognised in the Consolidated
solely payments of principal and interest (SPPI) Statement of Profit and Loss. Other
For the purposes of this assessment, ‘principal’ is net gains and losses are recognised
defined as the fair value of the financial asset on initial in OCI. On derecognition, gains
recognition. ‘Interest’ is defined as consideration and losses accumulated in OCI are
for the time value of money and for the credit risk reclassified to the Consolidated
associated with the principal amount outstanding Statement of Profit and Loss.
during a particular period of time and for other Equity These assets are subsequently
basic lending risks and costs (e.g. liquidity risk and investments measured at fair value. Dividends
administrative costs), as well as a profit margin. at FVOCI are recognised as income in the
Consolidated Statement of Profit
In assessing whether the contractual cash flows are and Loss unless the dividend clearly
solely payments of principal and interest, the Group represents a recovery of part of
considers the contractual terms of the instrument. the cost of the investment. Other
This includes assessing whether the financial asset net gains and losses are recognised
contains a contractual term that could change the in OCI and are not reclassified to
timing or amount of contractual cash flows such Consolidated Statement of Profit and
that it would not meet this condition. In making this Loss.
assessment, the Group considers:
Financial These assets are subsequently
assets at measured at fair value. Net gains
• contingent events that would change the
FVTPL and losses, any interest or dividend
amount or timing of cash flows;
income, are recognised and
• terms that may adjust the contractual coupon are presented separately in the
rate, including variable interest rate features; Consolidated Statement of Profit and
Loss
• prepayment and extension features; and

240 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

(iii) Classification, subsequent measurement, gains Financial liabilities

and losses of financial liabilities The Group derecognises a financial liability when its
Debt and equity instruments issued by the Group contractual obligations are discharged or cancelled,
are classified as either financial liabilities or as or expire.
equity in accordance with the substance of the
contractual arrangements and the definition of a (v) Impairment of financial instruments
financial liability and an equity instrument. The Group recognises loss allowances using the
Financial liabilities are classified as measured at expected credit loss (ECL) model for the financial
amortised cost or FVTPL. A Financial Liability is assets which are not classified as FVTPL or equity
classified as at FVTPL if it is classified as held for investments at FVOCI. Expected credit losses are
trading, or it is a derivative or it is designated as measured at an amount equal to the 12-month ECL,
such on initial recognition. Financial liabilities at unless there has been a significant increase in credit
FVTPL are measured at fair value and net gains risk or the assets have become credit impaired from
and losses, including any interest expense, are initial recognition in which case, those are measured
recognised in Consolidated Statement of Profit and at lifetime ECL. The amount of expected credit
Loss. Other financial liabilities are subsequently losses (or reversal) that is required to adjust the
measured at amortised cost using the effective loss allowance at the reporting date is recognised
interest method. Interest expense and foreign as an impairment gain or loss in the Consolidated
exchange gains and losses are recognised in the Statement of Profit and Loss.
Consolidated Statement of Profit and Loss. Any
gain or loss on derecognition is also recognised in Measurement of expected credit losses
the Consolidated Statement of Profit and Loss. Expected credit losses are a probability-weighted
estimate of credit losses. Credit losses are
(iv) Derecognition of financial assets and financial measured as the present value of all cash shortfalls
liabilities (i.e. the difference between the cash flows due to
Financial assets the Group in accordance with the contract and the
cash flows which the Group expects to receive).
The Group derecognises a financial asset when
the contractual rights to the cash flows from the
Presentation of allowance for expected credit
financial asset expire, or it transfers the rights to
losses in the consolidated balance sheet
receive the contractual cash flows in a transaction
in which substantially all of the risks and rewards Loss allowances for financial assets measured
of ownership of the financial asset are transferred at amortised cost are deducted from the gross
or in which the Group neither transfers nor carrying amount of the assets. For debt securities
retains substantially all of the risks and rewards at FVOCI, the loss allowance is charged to
of ownership and does not retain control of the Consolidated Statement of Profit and Loss and is
financial asset. recognised in OCI.

If the Group enters into transactions whereby it Write off

transfers assets recognised on its consolidated
The gross carrying amount of a financial asset is
balance sheet, but retains either all or substantially
written off (either partially or in full) to the extent
all of the risks and rewards of the transferred assets,
that there is no realistic prospect of recovery. This
the transferred assets are not derecognised.
is generally the case when the Group determines
that the counter party does not have assets or
sources of income that could generate cash flows to

ANNUAL REPORT 2023-24 241

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

repay the amounts. However, financial assets that depreciation and accumulated impairment
are written off could still be subject to enforcement losses, if any.
activities in order to comply with the Group’s
Cost of an item of property, plant and
procedures for recovery of amounts due.
equipment comprises its purchase price
(after deducting trade discounts and rebates)
(vi) Off-setting financial instruments
including import duties and non-refundable
Financial assets and liabilities are offset and the net taxes, any directly attributable cost of
amount is presented in the consolidated balance bringing the item to its working condition
sheet where there is a legally enforceable right for its intended use and estimated costs
to offset the recognised amounts and there is an of dismantling and removing the item and
intention to settle on a net basis or realise the asset restoring the site on which it is located.
and settle the liability simultaneously.
(ii) Subsequent expenditure
3.3 (A) Property, plant and equipment
Subsequent expenditure is capitalised only if it
(i) Recognition and measurement is probable that the future economic benefits
The cost of an item of property, plant and associated with the expenditure will flow to
equipment shall be recognised as an asset if, the Group and the cost of the item can be
and only if it is probable that future economic measured reliably.
benefits associated with the item will flow
to the Group and the cost of the item can be (iii) Depreciation
measured reliably. 
Depreciation on property, plant and
Items of property, plant and equipment equipment is provided on straight-line basis as
are measured at cost, less accumulated per the estimated useful life and in the manner
prescribed in Schedule II of the Companies
Act, 2013 except for certain assets.

Following is the summary of useful lives of the assets as per management’s estimate and as required by the
Companies Act, 2013 except assets individually costing less than Rupees five thousand which are fully
depreciated in the year of purchase/acquisition.
Useful Life (no. of years)
Class of property, plant and equipment
As per the Companies Act, 2013 As per management’s estimate
Buildings* 60 50 to 60
Computer Equipment:
Server and Network* 6 4
Others 3 3
Furniture and Fixtures* 10 7
Electrical Installations* 10 7
Office Equipment 5 5
Vehicles* 8 4
Improvement of Rented Premises Not specified Over the lease term or 5 years, whichever is less
*Based on technical advice, management is of the opinion that the useful lives of these assets reflect the period over which they are
expected to be used.

242 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Depreciation method, useful lives and residual the Consolidated Statement of Profit and Loss
values are reviewed at each financial year end as incurred.
and adjusted, if required.
(ii) Amortisation

Depreciation on additions/disposals is
provided on a pro-rata basis i.e. from/up Amortisation is calculated to write off the
to the date on which asset is ready to use/ cost of intangible assets less their estimated
disposed off. residual values over their estimated useful
lives using the straight-line method, and is
(iv) Derecognition included in depreciation and amortisation
in the Consolidated Statement of Profit and
The cost and related accumulated depreciation
Loss. Computer Software is being amortised
are eliminated from the consolidated financial
over a period of 3 years.
statements upon sale or retirement of the
asset and the resultant gains or losses are Amortisation method, useful lives and residual
recognised in the Consolidated Statement of values are reviewed at the end of each financial
Profit and Loss. Assets to be disposed off are year and adjusted, if required.
reported at the lower of the carrying value or
the fair value less cost to sell. (iii) Derecognition
Intangible assets are derecognised on disposal
(B) Goodwill or when no future economic benefits are
Goodwill was generated on acquisition of rights to expected to arise from its continuous use, and
operate, administer and manage the schemes of the resultant gains or losses are recognised in
erstwhile Morgan Stanley Mutual Fund. Goodwill the Consolidated Statement of Profit and Loss.
is not amortised but is tested for impairment
annually or more frequently if events or changes in (D) Intangible assets under development
circumstances indicate that it might be impaired, The intangible assets under development includes
and is carried at cost less accumulated impairment cost of intangible assets that are not ready for
losses, if any. their intended use on the date of balance sheet less
accumulated impairment losses, if any.
(C) Other intangible assets

Other intangible assets including computer 3.4 Impairment of non-financial assets
software are measured at cost and recognised if The Group’s non-financial assets, other than deferred tax
it is probable that the expected future economic assets, are reviewed at each reporting date to determine
benefits that are attributable to the asset will whether there is any indication of impairment. If any such
flow to the entity and the cost of the asset can be indication exists, then the asset’s recoverable amount
measured reliably. Such other intangible assets are is estimated.
subsequently measured at cost less accumulated
amortisation and any accumulated impairment The recoverable amount of an asset or goodwill is the
losses, if any higher of its value in use and its fair value. Value in use
is based on the estimated future cash flows, discounted
(i) Subsequent expenditure to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of
Subsequent expenditure is capitalised only
money and the risks specific to it.
when it increases the future economic benefits
embodied in the specific asset to which it An impairment loss is recognised if the carrying amount
relates. All other expenditure is recognised in of an asset or goodwill exceeds its estimated recoverable

ANNUAL REPORT 2023-24 243

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

amount. Impairment losses are recognised in the Revenue is measured based on the transaction
Consolidated Statement of Profit and Loss. price specified in the contract with a customer that
is allocated to that performance obligation. The
An impairment loss in respect of goodwill is not
transaction price is the amount of consideration to
subsequently reversed. In respect of other assets
which an entity expects to be entitled in exchange
for which impairment loss has been recognised in
for transferring promised services to a customer,
prior periods, the Group reviews at each reporting
excluding amounts collected on behalf of third
date whether there is any indication that the loss has
parties. The consideration promised in a contract
decreased or no longer exists. An impairment loss is
with a customer may include fixed amounts,
reversed if there has been a change in the estimates used
variable amounts, or both. Revenue from contracts
to determine the recoverable amount. Such a reversal is
with customers is recognised when services are
made only to the extent that the asset’s carrying amount
provided and it is highly probable that a significant
does not exceed the carrying amount that would have
reversal of revenue is not expected to occur.
been determined, net of depreciation or amortisation, if
no impairment loss had been recognised. If the consideration promised in a contract includes
a variable amount, then Group estimates the non-
3.5 Revenue recognition constrained amount of consideration to which it will
(i) Rendering of services be entitled in exchange for rendering the promised
services to a customer. The amount of consideration
The Group recognises revenue from contracts
can vary because of discounts, rebates, refunds,
with customers based on a five step model as
credits, price concessions, incentives, performance
set out in Ind AS 115 - Revenue from Contracts
bonuses, or other similar items. The promised
with Customers, to determine when to recognise
consideration can also vary if an entitlement to the
revenue and at what amount.
consideration is contingent on the occurrence or
non-occurrence of a future event.

Nature of services
The Group principally generates revenue by providing asset management services to HDFC Mutual fund, Alternative
Investment Fund (AIF) and other clients.
Nature, timing of satisfaction of performance obligations and
Services
significant payment terms
Investment Management Services to mutual fund The Company has been appointed as the investment
manager to HDFC Mutual Fund. The Company receives
investment management fees from the mutual fund which
is charged as a percent of the Assets Under Management
(AUM) and is recognised on accrual basis. The maximum
amount of management fee that can be charged is subject
to applicable SEBI regulations.

The contract includes a single performance obligation

(series of distinct services) that is satisfied over time and
the investment management fees earned are considered
as variable consideration.

244 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Nature, timing of satisfaction of performance obligations and

Services
significant payment terms
Portfolio Management Services, Advisory Services and The Company provides portfolio management services
Investment Management Services to AIFs and advisory services to its clients wherein a separate
agreement is entered into with each client. The Company
earns management fees which is generally charged as
a percent of the Assets Under Management (AUM) and
is recognised on accrual basis. The Company, in certain
instances also has a right to charge performance fee
to the clients if the portfolio achieves a particular level
of performance as mentioned in the agreement with
the client, to the extent permissible under applicable
regulations. Generally, no upfront fee is charged to
the clients.

The Company has also been appointed as the investment

manager to HDFC AMC AIF-II. The Company is entitled
for management fee as per the terms of Investment
Management Agreement and any other fees as agreed.

These contracts include a single performance obligation

(series of distinct services) that is satisfied over time
and the management fees and/or the performance fees
earned are considered as variable consideration.
Investment Management services by HDFC AMC The WOS is in the business of providing Investment
International (IFSC) Limited – WOS Manager Services, act as a sponsor/ settler for the GIFT
AIF Funds and providing discretionary/ non-discretionary
portfolio management services to clients (PMS).

As at the end of the reporting period, the WOS is in the

process of setting up its business operations.

(ii) Recognition of dividend income, interest income • the gross carrying amount of the financial
or expense, gains and losses from financial asset; or
instruments
• the amortised cost of the financial liability.
Dividend income is recognised in the Consolidated
Statement of Profit and Loss on the date on which In calculating interest income and expense, the
the Group’s right to receive dividend is established. effective interest rate is applied to the gross
carrying amount of the financial asset (when the
Interest income or expense is recognised using the asset is not credit-impaired) or to the amortised
effective interest rate method. cost of the liability. However, for financial assets
The 'effective interest rate' is the rate that exactly that have become credit-impaired subsequent to
discounts estimated future cash payments or initial recognition, interest income is calculated by
receipts through the expected life of the financial applying the effective interest rate to the amortised
instrument to: cost of the credit-impaired financial asset (i.e.
the gross carrying amount less the allowance for
expected credit losses). If the asset is no longer

ANNUAL REPORT 2023-24 245

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

credit-impaired, then the calculation of interest 3.7 Employee benefits

income reverts to the gross basis. (i) Short-term employee benefits
Interest income/expense on financial instruments Short-term employee benefit obligations are
at FVTPL is not included in fair value changes but measured on an undiscounted basis and are
presented separately. expensed as the related service is provided. A
liability is recognised for the amount expected to be
The realised gains/losses from financial instruments
paid, if the Group has a present legal or constructive
at FVTPL represents the difference between
obligation to pay this amount as a result of past
the carrying amount of a financial instrument
service provided by the employee, and the amount
at the beginning of the reporting period, or the
of obligation can be estimated reliably.
transaction price if it was purchased in the current
reporting period, and its settlement price.
(ii) Share based payment transactions

The unrealised gains/losses represents the The Employee Stock Option Scheme provides for
difference between the carrying amount of a the grant of options to acquire equity shares of
financial instrument at the beginning of the period, the Company to its eligible employees and certain
or the transaction price if it was purchased in the directors other than independent directors. The
current reporting period, and its carrying amount at period of vesting and period of exercise are as
the end of the reporting period. specified within the schemes. The fair value at grant
date of equity settled share based payment options
3.6 Scheme expenses & commission granted to employees is recognised as an employee
Certain scheme related expenses and commission paid benefit expense, with a corresponding increase
to mutual fund distributors were being borne by the in equity, over the period that the employees
Company till October 22, 2018. These expenses had unconditionally become entitled to the options.
been charged in accordance with applicable circulars The amount recognised as expense is based on the
and guidelines issued by SEBI and Association of Mutual estimate of the number of options for which the
Funds in India (AMFI) and had been presented under related service conditions are expected to be met,
the respective expense heads in the Consolidated such that the amount ultimately recognised as an
Statement of Profit and Loss. expense is based on the number of options that do
meet the related service conditions at the vesting
Pursuant to circulars issued by SEBI in this regard, with
date. Such compensation cost is amortised over
effect from October 22, 2018, all of these expenses,
the vesting period of the respective tranches of
subject to certain permitted exceptions, are being borne
such grant.
by the respective schemes.

New Fund Offer (NFO) expenses on the launch of mutual (iii) Defined contribution plans
fund schemes are borne by the Company and recognised A defined contribution plan is a post-employment
in the Consolidated Statement of Profit and Loss as and benefit plan under which the Group pays fixed
when incurred. contributions into an account with a separate
Any other brokerage or commission paid by the Group entity and has no legal or constructive obligation
in line with the applicable regulations is being amortised to pay further amounts. The Group makes
over the contractual period. specified periodic contributions to the credit of the

246 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

employees’ account with the Employees’ Provident to measure the defined benefit obligation at the
Fund Organisation. Obligations for contributions beginning of the annual period to the then-net
to defined contribution plans are recognised as defined benefit liability/asset, taking into account
an employee benefit expense in the Consolidated any changes in the net defined benefit liability/
Statement of Profit and Loss in the periods asset during the period as a result of contributions
during which the related services are rendered and benefit payments. Net interest expense and
by employees. other expenses related to defined benefit plans are
recognised in the Consolidated Statement of Profit
National pension system (NPS) and Loss.
NPS is a defined contribution plan. In case employee When the benefits of a plan are changed or when
opts for NPS, the Group contributes a sum not a plan is curtailed, the resulting change in benefit
exceeding 10% of basic salary plus dearness pay, that relates to past service (‘past service cost’ or
if any, of the eligible employees’ salary to the NPS. ‘past service gain’) or the gain or loss on curtailment
The Group recognises such contribution as an is recognised immediately in the Consolidated
expense as and when incurred. Statement of Profit and Loss. The Group recognises
gains and losses on the settlement of a defined
(iv) Defined benefit plans benefit plan when the settlement occurs.
Gratuity
A defined benefit plan is a post-employment benefit (v) Other long-term employee benefits
plan other than a defined contribution plan. The The Group’s net obligation in respect of long-term
Group’s net obligation in respect of the defined employee benefits other than post-employment
benefit plan is calculated by estimating the amount benefits, which do not fall due wholly within 12
of future benefit that employees have earned in the months after the end of the period in which the
current and prior periods, discounting that amount employees render the related services, is the
and deducting the fair value of any plan assets. amount of future benefit that employees have
earned in return for their service in the current
The calculation of the defined benefit obligation
and prior periods; that benefit is discounted to
is performed periodically by a qualified actuary
determine its present value, and the fair value of
using the projected unit credit method. When
any related assets is deducted. The obligation is
the calculation results in a potential asset for the
measured on the basis of an independent actuarial
Company, the recognised asset is limited to the
valuation using the projected unit credit method.
present value of economic benefits available in
Remeasurements gains or losses are recognised as
the form of any future refunds from the plan or
profit or loss in the period in which they arise.
reductions in future contributions to the plan (‘the
asset ceiling’). In order to calculate the present
3.8 Provisions (other than for employee benefits),
value of economic benefits, consideration is given
contingent liabilities, contingent assets and
to any minimum funding requirements.
commitments
Remeasurement of the net defined benefit liability, A provision is recognised if, as a result of a past event,
which comprise actuarial gains and losses, the the Group has a present legal or constructive obligation
return on plan assets (excluding interest) and the that can be estimated reliably, and it is probable that an
effect of the asset ceiling (if any, excluding interest), outflow of economic benefits will be required to settle
are recognised in Other Comprehensive Income. the obligation. Where the effect of the time value of
The Group determines the net interest expense/ money is material, the provisions are determined by
income on the net defined benefit liability/asset discounting the expected future cash flows (representing
for the period by applying the discount rate used the best estimate of the expenditure required to settle

ANNUAL REPORT 2023-24 247

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

the present obligation at the balance sheet date) at a The lease liability is initially measured at the present
pre-tax rate that reflects current market assessments value of the lease payments that are not paid at the
of the time value of money and the risks specific to the commencement date and is discounted using the Group’s
liability. The unwinding of the discount is recognised as incremental borrowing rate. Since the Group does not
finance cost. Expected future operating losses are not have any debts, the Group’s incremental borrowing rate
provided for. has been determined based on the risk-free rate which
is adjusted for the financial spread based on the credit

Contingent liabilities are disclosed when there is
spread of the Holding Company.
a possible obligation arising from past events, the
existence of which will be confirmed only by the Certain leases include lease and non-lease components,
occurrence or non-occurrence of one or more uncertain which are accounted for as one single lease component.
future events not wholly within the control of the Group Occupancy lease agreements, in addition to contractual
or a present obligation that arises from past events where rent payments, generally include additional payments
it is either not probable that an outflow of resources will for certain costs incurred by the landlord, such as
be required to settle the obligation or a reliable estimate maintenance expenses and utilities. To the extent these
of the amount cannot be made. are fixed or determinable, they are included as part of the
lease payments used to measure the lease liability.
A contingent asset is not recognised but disclosed in the
consolidated financial statements where an inflow of The ROU asset is initially measured at cost, which
economic benefit is probable. comprises of the initial measurement of the lease liability
adjusted for any lease payments made at or before the
Commitments includes the amount of purchase order
commencement date, less any lease incentives received;
(net of advance) issued to counterparties for supplying/
plus any initial direct costs incurred and an estimate of
development of assets and amounts pertaining to
costs to dismantle and remove the underlying asset or
Investments which have been committed but not
to restore the underlying asset or the site on which it is
called for.
located. The ROU assets are subsequently depreciated
Provisions, contingent assets, contingent liabilities and using the straight-line method from the commencement
commitments are reviewed at each balance sheet date. date to the end of the lease term.

Lease term is determined as the non-cancellable period

3.9 Leases
of a lease adjusted with any option to extend or terminate
The Group assesses whether the contract is, or contains, the lease, if the use of such option is reasonably certain
a lease at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right to The lease liability is remeasured when there is a change in
control the use of an identified asset for a period of time one of the following:
in exchange for consideration.
• the Group’s estimate of the amount expected to be
As a lessee: payable under a residual value guarantee, or

The Group leases its office premises. The Group • the Group’s assessment of whether it will exercise a
recognises Right of Use (ROU) and lease liabilities for purchase, extension, or termination option or
these leases i.e. these leases are on-balance sheet,
• if there is a modification in the lease.
except for leases with a term of twelve months or less
(short-term leases) and low value leases. For these When the lease liability is remeasured, a corresponding
short-term and low value leases, the Group recognises adjustment is made to the carrying amount of the ROU
the lease payments as an expense on a straight-line basis asset, or is recorded in the Consolidated Statement of
over the term of the lease. Profit and Loss if the carrying amount of the ROU asset
has been reduced to nil.

248 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

As a lessor: Deferred tax is not recognised for:

When the Group is the lessor, the lease is classified as
either a finance lease or an operating lease. A finance • temporary differences arising on the initial
lease is a lease which confers substantially all the risks and recognition of assets or liabilities in a transaction that
rewards of the leased assets on the lessee. An operating is not a business combination, that affects neither
lease is a lease where substantially all of the risks and accounting nor taxable profit or loss at the time of
rewards of the leased asset remain with the lessor. the transaction and at the time of the transaction,
does not give rise to equal taxable and deductible
Amounts due from lessees under finance leases temporary differences.
are recorded as receivables. Finance lease income
is allocated to accounting periods so as to reflect a • taxable temporary differences arising on the initial
constant periodic rate of return on the net investment recognition of goodwill.
outstanding in respect of the lease. Deferred tax assets are recognised to the extent that
it is probable that future taxable profits will be available
3.10 Income tax against which they can be used. The existence of unused
Income tax comprises of current and deferred tax. It is tax losses is strong evidence that future taxable profit
recognised in the Consolidated Statement of Profit and may not be available. Therefore, in case of losses, the
Loss except to the extent that it relates to a business Group recognises a deferred tax asset only to the extent
combination or to an item recognised directly in equity that it has sufficient taxable temporary differences or
or in Other Comprehensive Income. there is other convincing evidence that sufficient taxable
profit will be available against which such deferred tax
(i) Current tax asset can be realised. Deferred tax assets – unrecognised
Current tax comprises the expected tax payable or or recognised, are reviewed at each reporting date and
receivable on the taxable income or loss for the year are recognised/ reduced to the extent that it is probable/
and any adjustment to the tax payable or receivable no longer probable respectively that the related tax
in respect of previous years. The amount of current benefit will be realised.
tax reflects the best estimate of the tax amount Deferred tax is measured at the tax rates that are
expected to be paid or received after considering expected to apply to the period when the asset is realised
the uncertainty, if any, related to income taxes. It is or the liability is settled, based on the laws that have been
measured using tax rates (and tax laws) enacted or enacted or substantively enacted by the reporting date.
substantively enacted by the reporting date.
The measurement of deferred tax reflects the tax
Current tax assets and current tax liabilities are consequences that would follow from the manner in
offset only if there is a legally enforceable right to which the Group expects, at the reporting date, to
set off the recognised amounts, and it is intended to recover or settle the carrying amount of its assets
realise the asset and settle the liability on a net basis and liabilities.
or simultaneously.
Deferred tax assets and liabilities are offset if there is a
(ii) Deferred tax legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the
Deferred tax is recognised in respect of temporary
same tax authority.
differences between the carrying amounts of
assets and liabilities for financial reporting purposes
3.11 Operating segments
and the corresponding amounts used for taxation
purposes. Deferred tax is also recognised in respect Operating segments are reported in a manner consistent
of carried forward tax losses and tax credits, if any with the internal reporting provided to the chief
operating decision maker (CODM). The CODM’s function

ANNUAL REPORT 2023-24 249

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

is to allocate the resources of the Group and assess the The number of equity shares used in computing diluted
performance of the operating segments of the Group. earnings per share comprises the weighted average
number of shares considered for deriving basic earnings
3.12 Earnings per share (EPS) per share and also weighted average number of equity
The basic earnings per share is computed by dividing shares which would have been issued on the conversion
profit after tax attributable to the equity shareholders of all dilutive potential shares, unless they are anti-
by the weighted average number of equity shares dilutive.
outstanding during the reporting period.
3.13 Dividends on equity shares
The diluted earnings per share is computed by dividing
The Company recognises a liability to make cash
profit after tax attributable to the equity shareholders
distributions to equity shareholders when the
adjusted for the effects of all dilutive potential ordinary
distribution is authorised and the distribution is no
shares by the weighted average number of equity shares
longer at the discretion of the Company. As per the
outstanding plus the weighted average number of equity
corporate laws in India, a distribution is authorised when
shares that would be issued on the conversion of all the
it is approved by the shareholders except in case of
dilutive potential ordinary shares into ordinary shares.
interim dividend. A corresponding amount is recognised
directly in equity.

250 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Note 4 Cash and Cash Equivalents

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Balances with Banks 10.33 3.23
Fixed Deposit with Banks with original maturity of 3 months or less - 1.23
Total 10.33 4.46

Note 5 Bank Balance other than Cash and Cash Equivalents

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Other Bank Balances
- Fixed Deposit with Bank (security against bank guarantee) 0.16 0.15
- Fixed Deposit with Bank (Others) 28.73 1.68
Earmarked Balances with Banks
- Unclaimed Equity Dividend 0.78 0.70
- Withheld Brokerage 0.02 0.04
Total 29.69 2.57

Note 6 Trade Receivables*

(Considered good - Unsecured)
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Investment Management Fee Receivable 90.83 182.94
Portfolio Management Fee, AIF and Other Advisory Services Fee Receivable 2.44 0.80
Total 93.27 183.74

Trade Receivables Ageing

(Undisputed Trade receivables – considered good)
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Unbilled dues (A) 91.71 183.56
Outstanding for following periods from due date of payment
Less than 6 months 1.42 0.18
6 months -1 year 0.01 -
1-2 years 0.12 -
2-3 years - 0.00
More than 3 years 0.01 0.00
Total Outstanding (B) 1.56 0.18
Total (A+B) 93.27 183.74
* No debts are due from directors or other officers or any of them either severally or jointly with any other person. No debts are due from firms, Limited
Liability Partnerships or private companies in which any director is a partner or a director or a member.

ANNUAL REPORT 2023-24 251

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Note 7 Other Receivables*

(Considered good - Unsecured)
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Finance Lease Receivable 9.45 6.95
Others 3.73 4.29
Total 13.18 11.24

* No debts are due from directors or other officers or any of them either severally or jointly with any other person. No debts are due from firms, Limited
Liability Partnerships or private companies in which any director is a partner or a director or a member.

Note 8 Investments
` (in Crore)
As at March 31, 2024 As at March 31, 2023
At Fair At Fair
Value Value
Sr. Amortised Amortised
Particulars Through Total Through Total
No. Cost Cost
Profit or Profit or
Loss Loss
(1) (2) (3=1+2) (1) (2) (3=1+2)
1 Mutual Funds - 6,648.64 6,648.64 - 5,476.86 5,476.86
2 Debt Securities 263.50 8.22 271.72 417.94 7.41 425.35
3 Equity Instruments - 24.27 24.27 - 23.18 23.18
4 Alternative Investment Funds - 206.07 206.07 - 127.57 127.57
5 Venture Capital Fund - 5.33 5.33 - 23.20 23.20
Total Gross Investments (A) 263.50 6,892.53 7,156.03 417.94 5,658.22 6,076.16
6 (i) Investments outside India - - - - - -
(ii) Investments in India 263.50 6,892.53 7,156.03 417.94 5,658.22 6,076.16
Total (B) 263.50 6,892.53 7,156.03 417.94 5,658.22 6,076.16
Less: Allowance for Impairment (C) - - - - - -
Total Net Investments (D = A - C) 263.50 6,892.53 7,156.03 417.94 5,658.22 6,076.16

Note 9 Other Financial Assets

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Interest accrued on Fixed Deposits 0.01 0.00
Interest accrued on Investments 5.24 10.02
Security Deposits 15.91 14.90
Investment Application Money Pending Allotment * - 7.20
Total 21.16 32.12
* Date of allotment: April 03, 2023

252 POWERED BY PURPOSE

 Note 10 (A) Property, Plant and Equipment, Goodwill and Other Intangible Assets
` (in Crore)
Net
Gross Block Depreciation/Amortisation
Block
Particulars Foreign Foreign
As at As at As at As at As at
Exchange For the Exchange
April 01, Additions Deductions March April 01, Deductions March March
Translation year Translation
2023 31, 2024 2023 31, 2024 31, 2024
Difference Difference
Property, Plant and
Equipment
Buildings
Freehold 4.34 - - - 4.34 0.60 0.10 - - 0.70 3.64
for the year ended March 31, 2024

Right of Use Asset 208.74 35.54 25.52 0.01 218.77 91.03 38.03 23.64 0.00 105.42 113.35
Furniture & Fixtures 3.20 0.78 0.13 0.00 3.85 2.12 0.49 0.13 0.00 2.48 1.37
Vehicles 0.50 - - - 0.50 0.25 0.12 - - 0.37 0.13
Office Equipment 10.13 3.82 1.24 0.00 12.71 6.34 2.04 1.24 0.00 7.14 5.57
Computer Equipment 28.53 3.95 5.69 0.00 26.79 22.02 5.01 5.69 0.00 21.34 5.45
Electrical Installations 0.34 - - - 0.34 0.34 - - - 0.34 -
Improvement of 17.80 6.00 1.41 0.00 22.39 13.29 2.34 1.41 0.00 14.22 8.17
Rented Premises
Total 273.58 50.09 33.99 0.01 289.69 135.99 48.13 32.11 0.00 152.01 137.68
Goodwill and Other
Intangible Assets
Goodwill 6.04 - - - 6.04 - - - - - 6.04
Computer Software 27.24 6.28 1.11 0.00 32.41 20.40 4.20 1.11 0.00 23.49 8.92
Total 33.28 6.28 1.11 0.00 38.45 20.40 4.20 1.11 0.00 23.49 14.96
Notes to Consolidated Financial Statements
FINANCIAL STATEMENTS

ANNUAL REPORT 2023-24

253
CONSOLIDATED
 ` (in Crore)

254
Gross Block Depreciation/Amortisation Net Block
Foreign Foreign
Particulars As at As at As at As at As at
Exchange For the Exchange
April 01, Additions Deductions March 31, April 01, Deductions March 31, March 31,
Translation year Translation
2022 2023 2022 2023 2023
Difference Difference
Property, Plant and
Equipment
Buildings
Freehold 4.34 - - - 4.34 0.50 0.10 - - 0.60 3.74

POWERED BY PURPOSE
Right of Use Asset 172.84 60.42 24.52 - 208.74 74.68 36.90 20.55 - 91.03 117.71
Furniture & Fixtures 2.77 0.61 0.18 - 3.20 1.99 0.31 0.18 - 2.12 1.08
for the year ended March 31, 2024

Vehicles 0.50 - - - 0.50 0.13 0.12 - - 0.25 0.25

Office Equipment 10.18 1.72 1.77 - 10.13 6.10 2.01 1.77 - 6.34 3.79
Computer Equipment 27.71 2.58 1.76 - 28.53 17.53 6.25 1.76 - 22.02 6.51
Electrical Installations 0.34 - - - 0.34 0.34 - - - 0.34 -
HDFC ASSET MANAGEMENT COMPANY LIMITED

Improvement of 17.78 2.30 2.28 - 17.80 13.01 2.56 2.28 - 13.29 4.51
Rented Premises
Total 236.46 67.63 30.51 - 273.58 114.28 48.25 26.54 - 135.99 137.59
Goodwill and Other
Intangible Assets
Goodwill 6.04 - - - 6.04 - - - - - 6.04
Computer Software 23.71 5.06 1.53 - 27.24 16.83 5.09 1.52 - 20.40 6.84
Total 29.75 5.06 1.53 - 33.28 16.83 5.09 1.52 - 20.40 12.88

Impairment testing
The Goodwill relates to acquisition of rights to operate, administer and manage schemes of the erstwhile Morgan Stanley Mutual Fund. The
recoverable amount is the management fee income based on the present value of the future cash flows expected to be derived from the
asset (value in use). Management fee income is assumed to be generated at a constant rate and is discounted using a pre-tax discount rate
of 7.23% (Previous Year 7.14%) based on one year Government security (G-sec) yield.

An analysis of sensitivity of the computation to a change in key parameters based on reasonably probable assumptions did not identify any
probable scenarios in which the recoverable amount would decrease below the carrying amount of goodwill. Consequently, no impairment
is required.
Notes to Consolidated Financial Statements
 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Note 10 (B) Intangible Assets Under Development

For the year ended March 31, 2024
Intangible assets under development ageing schedule
` (in Crore)
As at March 31, 2024
Intangible assets under development
Amount in Intangible asset under development for a period of
Total
Particulars Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress 0.87 - - - 0.87
Projects temporarily suspended - - - - -
Total 0.87 - - - 0.87

There are no Intangible assets under development as at March 31, 2024, whose completion is overdue or has exceeded its cost
compared to its original plan.

For the year ended March 31, 2023

Intangible assets under development ageing schedule
` (in Crore)
As at March 31, 2023
Intangible assets under development
Amount in Intangible asset under development for a period of
Total
Particulars Less than 1 year 1-2 years 2-3 years More than 3 years
Projects in progress 2.14 - - - 2.14
Projects temporarily suspended - - - - -
Total 2.14 - - - 2.14

There are no Intangible assets under development as at March 31, 2023, whose completion is overdue or has exceeded its cost
compared to its original plan.

Note 11 Other Non-Financial Assets

(Considered good - Unsecured)
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Capital Advances - 0.53
Prepaid Expenses 19.04 16.50
Goods & Services Tax Credit Receivable 21.66 21.71
Other Advances 4.86 4.04
Total 45.56 42.78

ANNUAL REPORT 2023-24 255

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Note 12 Trade Payables

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Outstanding dues of Micro Enterprises and Small Enterprises (MSME) 1.08 0.05
Outstanding dues of creditors other than Micro Enterprises and Small Enterprises 37.88 34.41
Total 38.96 34.46

Trade Payables Ageing

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
MSME - Undisputed, Unbilled dues (A) 1.08 0.05
Others - Undisputed
Unbilled dues (B) 37.88 27.50
Outstanding for following periods from due date of payment
Less than 1 year - 6.91
Total (C) - 6.91
Total Others - Undisputed (D) = (B+C) 37.88 34.41
Total (A+D) 38.96 34.46

Note 13 Other Financial Liabilities

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Employee Benefits 76.14 68.97
Other Dues 5.00 6.03
Unclaimed Equity Dividend 0.78 0.70
Lease Liability 124.95 130.47
Total 206.87 206.17

Note 14 Provisions
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Provision for Employee Benefits (primarily Compensated absences & Leave encashment) 16.43 12.57
Total 16.43 12.57

Note 15 Deferred Tax Liabilities (net) (see note 25)

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Deferred Tax Asset (49.20) (48.30)
Deferred Tax Liability 164.76 149.07
Total 115.56 100.77

256 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Note 16 Other Non-Financial Liabilities

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Statutory Dues 88.14 51.87
Employee Benefits 6.62 4.09
Total 94.76 55.96

Note 17 Share Capital

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Authorised
60,00,00,000 Equity Shares of `5 each (Previous Year: 60,00,00,000 Equity Shares of `5 each) 300.00 300.00
5,00,00,000 Redeemable, Cumulative Non-Convertible Preference Shares of `10 each 50.00 50.00
(Previous Year: 5,00,00,000 Redeemable, Cumulative Non-Convertible Preference Shares of `10 each)
Total 350.00 350.00
Issued, Subscribed and Paid-up
21,34,84,000 Equity Shares of `5 each (Previous Year: 21,34,24,716 Equity Shares of `5 each), fully paid up 106.74 106.71
106.74 106.71

a) Movement in Equity Share Capital during the year:

`(in Crore)
March 31, 2024 March 31, 2023
Particulars No. of Equity No. of Equity
Share Capital Share Capital
Shares Shares
Shares outstanding at the beginning of the year (face value 21,34,24,716 106.71 21,32,78,552 106.64
of `5 each)
Add: Shares issued during the year (face value of `5 each) 59,284 0.03 1,46,164 0.07
Shares outstanding at the end of the year (face value of 21,34,84,000 106.74 21,34,24,716 106.71
`5 each)

b) Terms/Rights attached to Equity Shares

1. The Company had issued only one class of equity shares referred to as equity share having face value of `10 each which
was sub-divided to `5 each w.e.f. February 13, 2018. Each holder of equity shares is entitled to one vote per share.

2. The holders of equity shares are entitled to dividends, if any, proposed by the board of directors and approved by the
Shareholders at the Annual General Meeting.

3. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining
assets of the Company, after distribution of preferential amount. However, no such preferential amount exists
currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

ANNUAL REPORT 2023-24 257

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

c)  1,21,79,830 equity shares of `5 each (Previous Year 11,21,79,830 equity shares of `5 each) are held by HDFC Bank
1
Limited (Previous Year: Housing Development Finance Corporation Limited) -Holding Company$.

d) Details of Holding Company and Shareholders holding more than 5 percent Share Capital of the Company:
As at March 31, 2024 As at March 31, 2023
Name of the Shareholder No. of Equity No. of Equity
% of Share % of Share
Shares (Face Shares (Face
Capital Capital
Value `5) Value `5)
HDFC Bank Limited (Previous Year: Housing Development 11,21,79,830 52.55 11,21,79,830 52.56
Finance Corporation Limited) - Holding Company$
Abrdn Investment Management Limited (formerly - - 2,17,78,305 10.20
known as Standard Life Investments Limited)- see note 1
- Company overview
Life Insurance Corporation of India 1,29,49,242 6.07 1,96,58,764 9.21
SBI Mutual Fund 1,22,24,610 5.73 Not applicable

e) 23,16,200 equity shares of `5 each are reserved for issuance towards outstanding employee stock options.

f) No equity shares were bought back during last five years.

g) No shares were allotted as fully paid-up 'pursuant to any contract without payment being received in cash' in last five years.

h) No bonus shares were issued during the period of five years immediately preceding the reporting date.

i) Details of Shareholding of Promoters:

As at
As at March 31, 2024 As at March 31, 2023
April 01, 2022
Promoter name No. of Equity % Change No. of Equity % Change No. of Equity
% of total % of total
Shares (Face during the Shares (Face during the Shares (Face
Share Capital Share Capital
Value `5) year# Value `5) year# Value `5)
HDFC Bank Limited (Previous Year: 11,21,79,830 52.55 - 11,21,79,830 52.56 - 11,21,79,830
Housing Development Finance
Corporation Limited) - Holding
Company$
Abrdn Investment Management - - (100.00) 2,17,78,305 10.20 (37.02) 3,45,78,305
Limited (formerly known as Standard
Life Investments Limited)
- see note 1 - Company overview
#
Computed vis-à-vis number of shares held by the same entity
$
 DFC Bank Limited (‘HDFC Bank’) has become the Holding Company and Promoter of HDFC Asset Management Company Limited, in place of Housing
H
Development Finance Corporation Limited (‘HDFC Ltd.’), with effect from July 01, 2023, pursuant to the Composite scheme of amalgamation of: (i)
HDFC Investments Limited and HDFC Holdings Limited, wholly-owned subsidiaries of HDFC Ltd. with and into HDFC Ltd.; and (ii) HDFC Ltd. with and
into HDFC Bank.

258 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Note 18
Nature and purpose of reserves
Share application pending allotment
Until the shares are allotted, the amount received is shown under the Share Application Money Pending Allotment.

Capital redemption reserve

Whenever there is a buy-back or redemption of share capital, the nominal value of the capital is transferred to a reserve called Capital Redemption
Reserve so as to retain the capital.

Securities premium
Securities Premium is used to record the premium (amount received in excess of face value of equity shares) on issue of shares. The reserve can be
utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013. The securities
premium also includes amount transferred from Share options outstanding account upon exercise of options by employees and subsequent allotment
of shares to them.

General reserve
Pursuant to the provisions of Companies Act,1956, the Company had transferred a portion of its net profit before declaring dividend, to general reserve.
Mandatory transfer to general reserve is not required under the Companies Act, 2013.

Share options outstandingaccount

The grant date fair value of equity-settled share based payment transactions with employees and directors are recognised in the Consolidated
Statement of Profit and Loss with the corresponding credit to this account over the vesting period. The amounts recorded in Share options outstanding
account are transferred to securities premium upon exercise of stock options by the employees and subsequent allotment of shares to them.

Retained earnings
Retained earnings are the profits that the Group has earned to date, less any dividends or other distributions paid to the Shareholders, net of utilisation
as permitted under applicable regulations.

Currency Translation Reserve

The exchange differences arising from the translation of financial statements of subsidiary having functional currency other than the Indian Rupee (`)
is recognised in other comprehensive income and is presented within other equity as currency translation reserve.

Refer 'Other Equity' section in 'Consolidated Statement of Changes in Equity' for movement in reserves and surplus
during the year.
Note 19 Asset Management Services
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Investment Management Fee 2,580.60 2,160.79
Portfolio Management Fee, AIF and Other Advisory Services Fee 3.77 6.02
Total 2,584.37 2,166.81

ANNUAL REPORT 2023-24 259

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Note 20 Other Income

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Income from Investments
Interest Income from Investments
- On Financial Assets measured at Amortised Cost 25.16 28.68
Interest on deposit with Banks
- On Financial Assets measured at Amortised Cost 0.97 0.05
Net gain on Financial Instruments
- On Financial Assets measured at Fair Value Through Profit or Loss 547.17 280.97
Dividend Income from Investments
- On Financial Assets measured at Fair Value Through Profit or Loss 0.23 0.23
Total Income from Investments (A) 573.53 309.93
Others
Net gain/(loss) on derecognition of Property, Plant and Equipment 0.05 0.11
Other Interest Income 1.78 1.59
Miscellaneous Income 3.66 4.22
Total Others (B) 5.49 5.92
Total Other Income (A+B) 579.02 315.85

Note 21 Employee Benefits Expenses

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Salaries, Allowances and Bonus 287.00 253.75
Contribution to Provident and Other Funds 13.78 12.95
Share based Payments to Employees* 47.05 40.11
Staff Welfare and Training Expenses 6.23 5.86
Total 354.06 312.67
* Accounting for equity settled share based payment transaction (ESOPs) at fair value increases the non cash component of Employee Benefits
Expenses and is also reflected in Share Options Outstanding Account under Other Equity. This balance of Share Options Outstanding Account is
transferred to Securities Premium as and when the stock options are exercised by the employees and subsequent allotment of shares to them. Hence,
this charge is neutral to Equity of the Group.

260 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Note 22 Other Expenses

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
New Fund Offer and Mutual Fund Expenses 6.58 8.33
Advertisement, Publicity and Business Promotion 45.14 41.92
Rent 0.60 0.38
Rates and Taxes 0.44 0.36
Electricity Charges 5.55 5.51
Office Cleaning and Security Cost 19.83 17.82
Repair and Maintenance 7.99 5.95
Communication Expenses 8.42 7.35
Printing, Stationery and Courier 6.13 6.12
Directors' Sitting Fees, Commission, allowances and expenses 3.43 3.17
Auditors Remuneration:
Audit Fee 0.36 0.30
Limited Reviews 0.21 0.19
Group Audit and Reviews 0.34 0.03
Tax Audit Fee 0.04 0.04
Taxation Matters 0.00 0.17
Reimbursement of Expenses 0.07 0.01
Other Services* 0.31 0.06
1.33 0.80
Legal and Professional Fees 12.21 6.37
Insurance Expenses 6.83 5.73
Travel and Conveyance 8.26 8.02
Subscription and Membership Fees 10.54 12.91
Outsourced Services Cost 29.14 26.13
Donations 0.03 0.03
Loss on Foreign Exchange Translation (net) 0.05 0.04
Corporate Social Responsibility expense as per Section 135 (5) of the Companies Act, 2013 31.29 31.68
Trademark Licence Fees 7.56 -
Software Expenses and Allied Services 42.54 30.61
KYC Expenses related to Mutual Fund Investors 11.94 5.15
Miscellaneous Expenses 4.58 8.84
Total 270.41 233.22
*For the year ended March 31, 2024, fees for Other Services primarily includes fee towards assurance service as required under the Business
Responsibility and Sustainability Report (BRSR) Core prescribed by Securities and Exchange Board of India.

ANNUAL REPORT 2023-24 261

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Note 23 Employee Benefits

a) Defined Contribution Plan
The Group has recognised the following amounts in the Consolidated Statement of Profit and Loss, which are included
under Contributions to Provident Fund and Other Funds:
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Employer’s contribution to Provident Fund 8.12 7.29
Employer’s contribution to National Pension System 1.40 1.24

b) Defined Benefit Plan - Gratuity

In accordance with the applicable Indian laws, the Group has a defined benefit plan which provides for gratuity payments.
The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment,
which requires contributions to be made to a separately administered fund except for the subsidiary whose gratuity plan
is unfunded.

The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the
administration of the plan assets and for the definition of the investment strategy.

The amounts are based on the respective employee’s last drawn salary and the years of employment with the Group.
Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes
annual contributions to the plan. The plan is funded with a life insurance company in the form of a qualifying insurance policy.

The following tables summaries the components of net employee benefit expense recognised in the Consolidated
Statement of Profit and Loss, the funded status and amounts recognised in Consolidated Balance Sheet.

(i) Changes in Present Value of the Defined Benefit Obligation

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Obligation as at beginning of the year 37.37 38.32
Current service cost 3.53 3.76
Interest cost 2.76 2.74
Benefits paid (3.57) (5.79)
Actuarial (gains)/losses on obligation - due to change in demographic assumptions 0.07 (0.10)
Actuarial (gains)/losses on obligation - due to change in financial assumptions 0.56 (1.90)
Actuarial (gains)/losses on obligation - due to experience adjustments 1.88 0.34
Obligation as at the end of the year 42.60 37.37

262 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

(ii) Change in the Fair Value of Plan Assets

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Fair Value of Plan Assets at the beginning of the year 33.92 34.94
Expected return on plan assets 2.51 2.50
Contributions by the Employer 3.44 3.37
Benefit Paid from the Fund (3.57) (5.79)
Actuarial gain/(loss) on plan assets 0.37 (1.10)
Fair Value of Plan Assets at the end of the year 36.67 33.92

(iii) Actual Return on Plan Assets

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Expected return on Plan Assets 2.51 2.50
Actuarial gain/(loss) on Plan Assets 0.37 (1.10)
Actual Return on Plan Assets 2.88 1.40

(iv) Amount recognised in the Consolidated Balance Sheet

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Present Value of defined benefit obligation (42.60) (37.37)
Fair Value of Plan Assets 36.67 33.92
Funded status [surplus/(deficit)] (5.93) (3.45)
Net (Liability)/Asset recognised in the Consolidated Balance Sheet (5.93) (3.45)

(v) Expenses recognised in the Consolidated Statement of Profit and Loss

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Current service cost 3.53 3.76
Interest Cost 2.76 2.74
Expected Return on Plan Assets (2.51) (2.50)
Expenses recognised in the Consolidated Statement of Profit and Loss 3.78 4.00

(vi) Expenses recognised in Consolidated Other Comprehensive Income (OCI)

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Actuarial (gains)/losses on Obligation 2.51 (1.66)
Actuarial (gains)/losses on Plan Assets (0.37) 1.10
Net (income)/expense for the year recognised in Consolidated OCI 2.14 (0.56)

ANNUAL REPORT 2023-24 263

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

(vii) Amount recognised in the Consolidated Balance Sheet

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Liability at the end of the year 42.60 37.37
Fair Value of Plan Assets at the end of the year (36.67) (33.92)
Amount recognised in the Consolidated Balance Sheet as Liability 5.93 3.45

(viii) Balance sheet reconciliation

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Net Liability as at the beginning of the year 3.45 3.38
Expenses recognised in the Consolidated Statement of Profit and Loss 3.78 4.00
Expenses/(Income) recognised in Consolidated OCI 2.14 (0.56)
Contributions by the Employer (3.44) (3.37)
Net Liability/(Asset) recognised in Consolidated Balance Sheet 5.93 3.45

(ix) Investment Pattern

% Invested
Particulars As at As at
March 31, 2024 March 31, 2023
Money Market Instruments, Public Deposits and Net Current Assets 2.92 7.38
Debentures/Bonds 36.38 45.46
Government Securities 60.70 47.16

(x) Actuarial Assumptions

As at As at
Particulars
March 31, 2024 March 31, 2023
Expected Return on Plan Assets 7.19% 7.41%
Rate of Discounting 7.19% 7.41%
Rate of Salary Increase 6.50% 6.50%
Rate of Employee Turnover For service For service
4 years and below 4 years and below
19.02% p.a. For 18.84% p.a. For
service 5 years service 5 years
and above 9.34% and above 8.81%
p.a. p.a.
Mortality Rate During Employment Indian Assured Indian Assured
Lives Mortality Lives Mortality
2012-14 (Urban) 2012-14 (Urban)

(xi) The Group generally makes annual contributions to the plan (except for the subsidiary where the plan is unfunded)
based on the actuarial valuation of 'amount recognised in the Consolidated Balance Sheet as Liability at the year end'.
(xii) The expected contributions to the plan for the next annual reporting period
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
The expected contributions to the plan for the next annual reporting period 5.97 5.12

264 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

(xiii) Maturity Analysis of the benefit payments

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Projected benefits payable in future years from the date of reporting
1st Following year 4.45 3.57
2nd Following year 4.05 3.41
3rd Following year 4.77 3.45
4th Following year 4.80 4.06
5th Following year 4.79 4.27
Sum of years 6 to 10 18.86 17.09
Sum of years 11 and above 31.12 31.39

The Weighted average duration of the defined benefit obligation is 8 years (March 31, 2023: 8 years)

(xiv) Sensitivity Analysis

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Defined Benefit Obligation on Current Assumptions 42.60 37.37
Delta Effect of +1% Change in Rate of Discounting (2.43) (2.25)
Delta Effect of -1% Change in Rate of Discounting 2.73 2.53
Delta Effect of +1% Change in Rate of Salary Increase 2.72 2.53
Delta Effect of -1% Change in Rate of Salary Increase (2.47) (2.29)
Delta Effect of +1% Change in Rate of Employee Turnover 0.04 0.10
Delta Effect of -1% Change in Rate of Employee Turnover (0.05) (0.12)

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may
be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied
in calculating the Defined Benefit Obligation as recognised in the Consolidated Balance Sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Risks associated with Defined Benefit Plan:

(i) Interest Rate Risk
A fall in the discount rate which is linked to the G.Sec. rate will increase the present value of the liability requiring
higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on
the duration of asset.

(ii) Salary Risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As
such, an increase in the salary of the members more than assumed level will increase the plan's liability.

ANNUAL REPORT 2023-24 265

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

(iii) Investment Risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below
this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in
government securities and other debt instruments.

(iv) Asset Liability Matching (ALM) Risk

The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax
Rules, 1962, this generally reduces ALM risk.

(v) Mortality Risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have
any longevity risk.

(vi) Concentration Risk

Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe
out all the assets. Although probability of this is very low as insurance companies have to follow stringent regulatory
guidelines which mitigate risk.

During the year, there were no plan amendments, curtailments and settlements.

Note 24 Share based payments

Accounting for Employee Share based Payments
Under Employees Stock Option Scheme 2020 (ESOS 2020), the Company had on January 10, 2024 granted 38,800 stock options,
representing 38,800 equity shares of `5/- each to few employees of the Company. The said stock options have been granted
at the market price as defined in SEBI (Share based Employees Benefits) Regulations, 2014. Accordingly, the stock options have
been granted at `3,415.25 per option, being the latest available closing price of the shares of the Company on National Stock
Exchange of India Limited, on January 09, 2024 being the previous trading day immediately preceding the date on which Grant of
Options was approved by the Nomination & Remuneration Committee of the Board of Directors of the Company (‘Nomination
& Remuneration Committee’).

Under ESOS 2020, the Company had on April 25, 2023 granted 10,50,000 stock options, representing 10,50,000 equity shares
of `5/- each to few employees of the Company. The said stock options have been granted at the market price as defined in
SEBI (Share based Employees Benefits) Regulations, 2014. Accordingly, the stock options have been granted at `1,780.90 per
option, being the latest available closing price of the shares of the Company on National Stock Exchange of India Limited, on
April 24, 2023 being the previous trading day immediately preceding the date on which Grant of Options was approved by the
Nomination & Remuneration Committee.

Under ESOS 2020, the Company had on July 21, 2022 granted 50,000 stock options, representing 50,000 equity shares of `5/-
each to few employees of the Company. The said stock options have been granted at the market price as defined in SEBI (Share
based Employees Benefits) Regulations, 2014. Accordingly, the stock options have been granted at `1,921.70 per option, being
the latest available closing price of the shares of the Company on National Stock Exchange of India Limited, on July 20, 2022
being the previous trading day immediately preceding the date on which Grant of Options was approved by the Nomination &
Remuneration Committee.

266 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Under ESOS 2020, the Company had on January 24, 2022 granted 1,82,000 stock options, representing 1,82,000 equity shares
of `5/- each to few employees of the Company. The said stock options have been granted at the market price as defined in
SEBI (Share based Employees Benefits) Regulations, 2014. Accordingly, the stock options have been granted at `2,369.40 per
option, being the latest available closing price of the shares of the Company on National Stock Exchange of India Limited, on
January 21, 2022 being the previous trading day immediately preceding the date on which Grant of Options was approved by the
Nomination & Remuneration Committee.

Under ESOS 2020, the Company had on February 22, 2021 granted 11,45,000 stock options, representing 11,45,000 equity
shares of `5/- each to few employees of the Company. The said stock options have been granted at the market price as defined
in SEBI (Share based Employees Benefits) Regulations, 2014. Accordingly, the stock options have been granted at `2,934.25 per
option, being the latest available closing price of the shares of the Company on National Stock Exchange of India Limited, on
February 19, 2021 being the previous trading day immediately preceding the date on which Grant of Options was approved by
the Nomination & Remuneration Committee.
In terms of ESOS 2020, the options shall vest in three tranches. Each of these tranches consisting of 1/3 of the options granted
shall vest on the completion of the 1st, 2nd and 3rd year from the date of the grant respectively. Any fractional residue shall be
settled in the 3rd tranche. The options can be exercised over a period of five years from the date of respective vesting.

Under Employees Stock Option Scheme 2017 – Series I (ESOS 2017 – Series I), the Company had on July 28, 2017 granted
1,58,875 stock options at an exercise price of `5,353/- per option, representing 1,58,875 equity shares of `10/- each to few
employees & directors of the Company. The fair value of the Company’s underlying equity share was determined in accordance
with the pricing formula approved by the Nomination & Remuneration Committee i.e. based on the Price Earning Multiple
method and the Assets Under Management (AUM) method.

In terms of ESOS 2017 – Series I, the options vest over a period of 1-2 years from the date of grant. The options can be exercised
over a period of five years from the date of vesting.

Pursuant to the terms of respective Employees Stock Option Schemes (ESOS), in case of a corporate action like bonus shares,
rights issue, buyback of shares, split of shares, reduction of capital etc., the number of options outstanding as at the date of the
corporate action and the exercise price under all the relevant ESOS shall stand modified accordingly, so as to ensure that the paid-
up value of the total shares that can be issued under them remains unchanged. Accordingly, the Nomination and Remuneration
Committee of the Company has resolved, vide its circular resolution passed in February 2018, to make appropriate adjustments
to the outstanding options and now each option represents one equity share of `5/- each.

Comparison of exercise price per option:

Pre corporate Post corporate
Name of the Series
action action
ESOS 2017 Series I 5,353.00 669.13

No modifications were made in the terms and conditions of ESOS during the year.

The number of options vested during the year were 4,32,936 (Previous Year 4,15,666).

ANNUAL REPORT 2023-24 267

 For the year ended March 31, 2024

268
For options outstanding at
the end of the year
Outstanding Weighted
Granted Exercised Forfeited Expired Outstanding Exercisable
at the average
Particulars during the during the during the during the at the end of at the end of Exercise
beginning of remaining
year* year* year* year* the year* the year* price per
the year* contractual
option (`)
life (no. of
years)
ESOS 2020 (Grant Date Nil 38,800 Nil Nil Nil 38,800 Nil 3,415.25 6.78
January 10, 2024)

POWERED BY PURPOSE
ESOS 2020 (Grant Date Nil 10,50,000 Nil 69,600 Nil 9,80,400 Nil 1,780.90 6.07
April 25, 2023)
for the year ended March 31, 2024

ESOS 2020 (Grant Date 50,000 Nil Nil Nil Nil 50,000 16,667 1,921.70 5.31
July 21, 2022)
ESOS 2020 (Grant Date 1,82,000 Nil Nil Nil Nil 1,82,000 1,21,334 2,369.40 4.82
January 24, 2022)
HDFC ASSET MANAGEMENT COMPANY LIMITED

ESOS 2020 (Grant Date 10,65,000 Nil Nil Nil Nil 10,65,000 10,65,000 2,934.25 3.90
February 22, 2021)
ESOS 2017 (Series I) 59,484 Nil 59,284 Nil 200 Nil Nil Nil Nil

For the year ended March 31, 2023

For options outstanding at
the end of the year
Outstanding Weighted
Granted Exercised Forfeited Expired Outstanding Exercisable
at the average
Particulars during the during the during the during the at the end of at the end of Exercise
beginning of remaining
year* year* year* year* the year* the year* price per
the year* contractual
option (`)
life (no. of
years)
ESOS 2020 (Grant Date Nil 50,000 Nil Nil Nil 50,000 Nil 1,921.70 6.31
July 21, 2022)
ESOS 2020 (Grant Date 1,82,000 Nil Nil Nil Nil 1,82,000 60,667 2,369.40 5.82
January 24, 2022)
ESOS 2020 (Grant Date 10,65,000 Nil Nil Nil Nil 10,65,000 7,09,998 2,934.25 4.90
February 22, 2021)
ESOS 2017 (Series I) 2,05,648 Nil 1,46,164 Nil Nil 59,484 59,484 669.13 0.33
*Since all the options were granted at the same exercise price per option under the respective Series/Grant, the weighted average exercise price per option for all
these groups under the respective Series/Grant is the same.
Notes to Consolidated Financial Statements
 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

The weighted average share price for options exercised during the year under various Series'/Grants was `1,964
(Previous Year `2,012)
Fair value methodology
The fair value of options used to compute net income and earnings per equity share has been estimated on the date of grant
using Black-Scholes model.

The key assumptions used in Black-Scholes model for calculating fair value under ESOS 2017 – Series I and ESOS 2020 as on the
date of grant were:
Fair value
of the
Fair value
Risk-free interest Expected Dividend option
Particulars Date of grant Expected volatility of the
rate average life yield after
option
corporate
action
ESOS 2020 (Grant Date January 10, 2024 6.78% - 6.82 % p.a. 3.5 - 5.5 Years 27.75% - 33.03% 1.75% p.a. `1,084 NA
January 10, 2024)
ESOS 2020 (Grant Date April 25, 2023 6.66% - 6.76 % p.a. 3.5 - 5.5 Years 34.00% - 34.54% 2.48% p.a. `557 NA
April 25, 2023)
ESOS 2020 (Grant Date July 21, 2022 6.74% - 6.96 % p.a. 3.5 - 5.5 Years 34.68% - 36.41% 1.18% p.a. `700 NA
July 21, 2022)
ESOS 2020 (Grant Date January 24, 2022 5.34% - 5.98 % p.a. 3.5 - 5.5 Years 33.91% - 35.52% 0.92% p.a. `826 NA
January 24, 2022)
ESOS 2020 (Grant Date February 22, 2021 5.04% - 5.66 % p.a. 3.5 - 5.5 Years 36.10% - 37.08% 0.84% p.a. `1,053 NA
February 22, 2021)
ESOS 2017 (Series I) July 28, 2017 6.66% p.a. 3.5 Years 0% 1.86% p.a. `777 `97

Volatility is a measure of the amount by which a price has fluctuated or is expected to fluctuate during a period. The measure of
volatility used in the Black - Scholes Model is the annualised standard deviation of the continuously compounded rates of return
on the stock over a period of time.

As on the date of grant in case of ESOS 2017–Series I, the Company being an unlisted company and in the absence of listed
comparable companies, volatility had been considered to be Nil.

As on the respective dates of grant in case of ESOS 2020, wherever the trading history of the Company and/or its comparable
Company(s) listed on the Stock exchange were less than the life of the option, Nifty Financial Services Index was also considered
for deriving the volatility.

ANNUAL REPORT 2023-24 269

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Note 25 Tax expense

Components of Income Tax Expense
(a) Amounts recognised in the Consolidated Statement of Profit and Loss
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Current income tax 517.54 421.26
517.54 421.26
Deferred tax (Income)/expense
Origination and reversal of temporary differences 14.79 25.43
14.79 25.43
Income Tax expense for the year 532.33 446.69

(b) Tax on amounts recognised in Consolidated Other Comprehensive Income

` (in Crore)
Tax (expense)/benefit
Particulars For the year ended For the year ended
March 31, 2024 March 31, 2023
Remeasurement of the defined benefit plans 0.54 (0.14)
Total 0.54 (0.14)

(c) Reconciliation of Effective Tax Rate

` (in Crore)
For the year ended For the year ended
Reconciliation between the statutory Income tax rate and the effective Income tax rate
March 31, 2024 March 31, 2023
Profit before tax 2,475.02 1,870.06
Company's domestic tax rate 25.17% 25.17%
Tax using the domestic tax rate 622.91 470.66
Tax effect of/on:
Net expenses that are not deductible in determining taxable profit 18.53 17.97
Items which are taxed at different rates (103.64) (34.83)
Incomes which are exempt from tax (6.33) (7.22)
Loss of subsidiary 0.79 0.14
Others 0.07 (0.03)
Total (90.58) (23.97)
Income Tax expense for the year 532.33 446.69

(d) Effective Tax Rate

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Effective Tax Rate (%) 21.51 23.89

270 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

(e) Significant components and movement in deferred tax assets and liabilities
` (in Crore)
As at Expense/(Income) As at
Particulars
April 01, 2023 recognised March 31, 2024
Deferred Tax Assets
- Property, Plant and Equipment & Other Intangible Assets (excluding ROU) 10.99 (0.84) 11.83
- Lease Liabilities 32.83 1.39 31.44
- Provision for Employee Benefits 3.16 (0.96) 4.12
- Others 1.32 (0.49) 1.81
Total Deferred Tax Assets 48.30 (0.90) 49.20
Deferred Tax Liabilities
- Right of Use Asset 29.63 (1.33) 28.30
- Prepaid Employee Benefits 1.13 (0.89) 0.24
- Fair value gains/losses and impairment on Investments 115.90 17.22 133.12
- Others 2.41 0.69 3.10
Total Deferred Tax Liabilities 149.07 15.69 164.76
Net Deferred Tax Assets/(Liabilities) (100.77) 14.79 (115.56)

` (in Crore)
Expense/(Income) As at March 31,
Particulars As at April 01, 2022
recognised 2023
Deferred Tax Assets
- Property, Plant and Equipment & Other Intangible Assets (excluding ROU) 9.57 (1.42) 10.99
- Lease Liabilities 27.59 (5.24) 32.83
- Provision for Employee Benefits 2.96 (0.20) 3.16
- Others 1.27 (0.05) 1.32
Total Deferred Tax Assets 41.39 (6.91) 48.30
Deferred Tax Liabilities
- Right of Use Asset 24.71 4.92 29.63
- Prepaid Employee Benefits 2.06 (0.93) 1.13
- Fair value gains/losses and impairment on Investments 88.66 27.24 115.90
- Others 1.30 1.11 2.41
Total Deferred Tax Liabilities 116.73 32.34 149.07
Net Deferred Tax Assets/(Liabilities) (75.34) 25.43 (100.77)

Note:
The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and
current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same
tax authority.

Significant management judgement is required in determining provision for income tax, deferred tax assets and liabilities
and recoverability of deferred tax assets. The recoverability of deferred tax assets is based on estimates of taxable income
and the period over which deferred tax assets will be recovered. Any changes in future taxable income would impact the
recoverability of deferred tax assets.

ANNUAL REPORT 2023-24 271

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Note 26 Related Party Transactions

As per the Indian Accounting Standard on ‘Related Party Disclosures’ (Ind AS 24), the related parties of the Group with whom
there have been transactions during the current/previous year, are as follows:
Sr.
Relationship Name of the Parties
No.
1 Holding Company HDFC Bank Limited from July 01, 2023 (Housing Development Finance Corporation Limited
up to June 30, 2023)$
2 Fellow Subsidiaries HDFC Trustee Company Limited
HDFC Life Insurance Company Limited
HDFC ERGO General Insurance Company Limited
HDFC Securities Limited (from July 01, 2023)
3 Investor with a significant influence Abrdn Investment Management Limited (formerly known as Standard Life Investments
Limited) (up to June 20, 2023)$
4 Other Related Parties HDFC Bank Limited (up to June 30, 2023)$
HDFC Securities Limited (up to June 30, 2023)
HDFC Asset Management Company Limited Employees’ Group Gratuity Assurance Scheme
5 Key Management Personnel (KMP) Deepak S Parekh
Navneet Munot
Keki Mistry (up to June 26, 2023)
Dhruv Kaji
Jairaj Purandare
Sanjay Bhandarkar
Parag Shah
Renu S Karnad
Roshni Nadar Malhotra
V Srinivasa Rangan (from January 12, 2024)
Shashi Kant Sharma (up to April 11, 2022)
6 Key Management Personnel of Holding V Srinivasa Rangan (up to June 30, 2023 and from November 23, 2023)
Company (except covered in Sr No. 5)
7 Close Family Members of Company's Smita Deepak Parekh
Key Management Personnel and Holding Aditya Deepak Parekh
Company's Key Management Personnel
Harsha Shantilal Parekh
Arnaaz Keki Mistry
Bharat Karnad
Ashok Sud
V Jayam (up to June 30, 2023 and from November 23, 2023)
S Anuradha (up to June 30, 2023 and from November 23, 2023)
Abinaya Rangan (up to June 30, 2023 and from November 23, 2023)
Malav Ashwin Dani (up to April 29, 2023)
$
see note 1 - Company overview

272 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

The nature and volume of transactions of the Group during the current/previous year with the above related parties were
as follows:

(a) Details of transactions

` (in Crore)
Investor with a Other Related
Holding Company Fellow Subsidiaries
Significant Influence Parties
Particulars
March March March March March March March March
31, 2024 31, 2023 31, 2024 31, 2023 31, 2024 31, 2023 31, 2024 31, 2023
Income
Interest on Deposits 0.91 - - - - - 0.05 0.05
Expense
Lease Rent 11.99 11.98 - - - - - -
Bank Charges 0.00 - - - - - 0.00 0.01
Fees and Commission 0.51 - 0.22 - - - 0.10 0.05
Technology Support Cost - 1.90 - - - - - -
Administration & Other Expenses 2.37 6.28 - - - - - -
Insurance Premium - - 3.97 3.29 - - - -
Trademark Licence Fees 7.56 - - - - - - -
Custodian Charges 0.02 - - - - - 0.01 0.03
Other Transactions
Equity Dividend 538.46 471.16 - - 104.54 145.23 - -
Contribution towards Gratuity Fund - - - - - - 3.44 3.37
Insurance Claim received on behalf of employees - - 0.38 - - - - -
Asset
Bank Balances 11.01 - - - - - - 3.87
Fixed Deposits 28.47 - - - - - - 2.88
Interest accrued on Fixed Deposit 0.26 - - - - - - 0.03
Account Receivable - - 3.04 2.71 - 0.84 - -
Prepaid Commission 1.38 - 2.75 - - - - 1.26
Prepaid Insurance Premium - - 0.03 0.03 - - - -
Liability
Account Payable 2.71 6.60 0.01 - - - - 0.31

Note:
The Company provides the necessary operating and secretarial services, etc. to HDFC Trustee Company Limited to
meet the operating and compliance requirements of the company in line with SEBI (Mutual Funds) Regulations, 1996. The
Company does not charge any amount in line with practice followed by the mutual fund industry.

ANNUAL REPORT 2023-24 273

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

(b) Details of remuneration to Company's KMPs

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Short-term employee benefits# 11.98 11.61
Post employment benefits 0.31 0.26
Other long-term benefits 0.09 0.07
Share based payment 11.37 23.04
Other benefits 0.09 0.05
Directors Sitting Fees 1.58 1.16
Commission to Non Executive Directors* 1.81 2.00
Total Remuneration 27.23 38.19
During the FY 20 21, an amount of `12.46 Crore was paid to the incoming Managing Director as one time payment and the same was being amortised
#

as per the terms of the contract. Out of the same, `3.66 Crore (Previous Year `4.15 Crore) forms part of Short term employee benefits above and the
balance unamortised amount of Nil (Previous Year `3.66 Crore) as at March 31, 2024 is booked as prepaid under Other Non-Financial Assets.
*Commission is approved by the Board of Directors within the limit as approved by the shareholders of the Company and will be paid post adoption
of annual accounts by the shareholders.

(c) Details of dividend paid to Company's KMPs

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Dividend on Equity Shares 2.70 2.08

(d) Details of dividend paid to close family members of Company's KMPs, Holding Company's KMPs and close family
members of Holding Company's KMPs
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Dividend on Equity Shares 0.02 0.01

Note 27 Earnings Per Share

Basic earnings per share (EPS) is calculated by dividing the profit after tax for the year attributable to equity shareholders of the
Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS is calculated by dividing the profit after tax for the year attributable to equity shareholders of the Company adjusted
for the effects of all dilutive potential ordinary shares by the weighted average number of equity shares outstanding during the
year plus the weighted average number of equity shares that would be issued on the conversion of all the dilutive potential
ordinary shares into ordinary shares. There is no effect of dilutive potential ordinary shares on profit after tax for the year
attributable to equity shareholders of the Company.

The relevant details as described above are as follows:

` (in Crore except equity share data)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Profit after tax for the year (numerator for calculating Basic and Diluted EPS) 1,942.69 1,423.37
Weighted Average equity shares outstanding during the year 21,34,72,759 21,33,25,802

274 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Following is the reconciliation between basic and diluted earnings per equity share:
`
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Nominal value per share 5.00 5.00
Basic earnings per share 91.00 66.72
Effect of potential equity shares for stock options (per share) (0.11) (0.01)
Diluted earnings per share 90.89 66.71

For the year ended For the year ended

Particulars
March 31, 2024 March 31, 2023
Weighted average number of equity shares used in computing basic earnings per equity share 21,34,72,759 21,33,25,802
Effect of potential equity shares for stock options outstanding 2,65,475 39,341
Weighted average number of equity shares used in computing diluted earnings per equity share 21,37,38,234 21,33,65,143
Weighted average number of anti dilutive options not considered in computing diluted earnings per 84,131 6,49,167
equity share

Note 28 Leases
A. The Group has entered into leasing arrangements for premises. Majority of the leases are cancellable by the Group.
Right of Use asset has been included under the line 'Property, Plant and Equipment' and Lease liability has been included
under 'Other Financial Liabilities' in the Consolidated Balance Sheet.

(i) Amounts recognised in the Consolidated Balance Sheet

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
(a) Right of Use assets (net) (Property, Plant and Equipment) 113.35 117.71
(b) Lease liabilities
Current 37.18 34.80
Non-current 87.77 95.67
Total Lease liabilities 124.95 130.47

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
(c) Additions to the Right of Use assets 35.54 60.42

(ii) Amounts recognised in the Consolidated Statement of Profit and Loss

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
(a) Depreciation charge for Right of Use assets 38.03 36.90
(b) Interest expense (included in finance cost) 9.09 9.69
(c) Expense relating to short-term leases 0.60 0.38

ANNUAL REPORT 2023-24 275

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

(iii) Cash Flows

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
The total cash outflow of leases 45.50 43.82

(iv) Future Commitments

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Future undiscounted lease payments to which leases is not yet commenced 11.58 -

(v) Maturity analysis of undiscounted lease liability

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Before 3 months 11.37 11.01
3 – 6 months 11.33 11.02
6 – 12 months 22.45 21.08
1 – 3 years 54.20 62.57
3 – 5 years 30.65 30.23
Above 5 years 18.51 18.84
Total 148.51 154.75

(vi) All the future cash flows to which the lessee is potentially exposed are reflected in the measurement of lease liabilities.

(vii) The Group currently does not have any significant sale and lease back transactions.

B. Finance Lease
(i) The Company has provided vehicles to its certain employees which have been treated as finance leases.
` (in Crore)
For the year ended For the year ended
Quantitative Disclosures
March 31, 2024 March 31, 2023
Selling profit/(loss) (0.01) (0.01)
Finance income on the net investment in the lease 0.73 0.53
Lease income relating to variable lease payments not included in the measurement of the - -
net investment in the lease

(ii) Significant changes in the carrying amount of the net investment in the lease
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Lease receivables as at the beginning of the year 6.95 4.05
Add: Finance income on the net investment in the lease 0.73 0.53
Add: New leases entered during the year 5.84 4.96
Less: Lease payments received during the year 4.07 2.59
Lease receivables as at the end of the year 9.45 6.95

276 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

(iii) The following table sets out a maturity analysis of lease receivables:
` (in Crore)
As at As at
Maturity Analysis of the Lease payments Receivables
March 31, 2024 March 31, 2023
Minimum Lease Minimum Lease
Particulars payments payments
receivables receivables

Less than one year 4.04 2.71

One to two years 3.60 2.56
Two to three years 2.18 2.08
Three to four years 0.87 0.56
Four to five years - -
More than five years - -
Total undiscounted lease payments receivable 10.69 7.91
Less: unearned finance income 1.24 0.96
Present value of lease receivables * 9.45 6.95
* Present Value of Rentals represent the Current Future Outstanding Principal

(iv) Risk Management Framework for finance leases

The table represents categories of collaterals available against the finance lease exposures:
` (in Crore)
As at As at
Particulars Collateral available
March 31, 2024 March 31, 2023
Finance lease receivables Hypothecation of the underlying car financed 9.45 6.95

The Company has framed Car Policy to provide use of the Company owned car for the commute from residence
to workplace, for the discharge of their official functions and for personal use to certain selected employees of the
Company. As per the Car Policy of the Company, the car is registered in the name of the Company and will remain the
property of the Company till it is duly transferred to employee in accordance with the Car Policy and after recovery
of all lease receivables. In case of separation of employee from the Company, outstanding lease receivables are
recovered/adjusted from employee's full and final settlement in accordance with the Car Policy.

Note 29 Segment Information

(a) Description of segments and principal activities
The Group is in the business of providing asset management services to HDFC Mutual Fund & alternative investment fund
and portfolio management & advisory services to clients. The Group's financial statements are largely reflective of the asset
management business and accordingly there are no separate reportable segments as per Ind AS 108, Operating Segment.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker (CODM). The CODM’s function is to allocate the resources of the entity and assess the performance of the
operating segment of the Group.

ANNUAL REPORT 2023-24 277

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

(b) Segment Revenue

The amount of its revenue from external customers broken down by location of the customers is shown in the table below:
` (in Crore)
For the year ended For the year ended
Revenue
March 31, 2024 March 31, 2023
Within India 2,584.37 2,163.50
Outside India - 3.31
Total 2,584.37 2,166.81

(c) All assets of the Group are domiciled in India.

(d) Information about revenue from major customers
There is only one customer contributing in excess of 10% of the total revenue of the Group. The amounts for the same are
as follows:
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Revenue from HDFC Mutual Fund 2,580.60 2,160.79

Note 30 Contingent Liabilities and Commitments

` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
(a) Contingent liabilities:
- Claims against the Group not acknowledged as debt:
(i) Disputed Income Tax demand 7.54 7.54
(ii) Disputed Goods and Services Tax demand 0.18 -
(b) Commitments:
(i) Estimated amount of contracts remaining to be executed on capital account and not 13.64 1.67
provided for (net of advances)
(ii) uncalled liability on shares and other investments partly paid 275.02 51.75

Note 31 Dividend Paid and Proposed

` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Dividends on equity shares declared and paid during the year:
Final dividend
Paid for the earlier financial year 1,024.65 895.86
Dividend per share for the earlier financial year (`) 48.00 42.00
Total dividend paid 1,024.65 895.86
Dividend on Equity Shares proposed by the Board of Directors for approval at Annual General
Meeting (not recognised as a liability at the respective year end)
Final dividend for the same financial year 1,494.39 1,024.44
Dividend per share for the same financial year (`) 70.00 48.00

278 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Note 32 Capital Management

Equity share capital and other equity are considered for the purpose of Company’s capital management. The Company
manages its capital in a manner which enables it to safeguard its ability to continue as a going concern and to optimise returns to
the Shareholders. The capital structure of the Company is based on management’s judgement of its strategic and day-to-day
needs with a focus on total equity so as to maintain investor, creditors and market confidence. The funding requirements are
met through operating cash flows and other equity. The management monitors the return on capital and the board of directors
monitors the level of dividends paid to shareholders of the Company. The Company may take appropriate steps in order to
maintain, or if necessary adjust, its capital structure.

Note 33 Financial Instruments

A. Classification and Fair Values of Financial Assets & Liabilities
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their
levels in the fair value hierarchy.
` (in Crore)
Particulars Carrying Amount Fair Value
Total
Amortised
As at March 31, 2024 FVTPL Carrying Level 1 Level 2 Level 3 Total
Cost
amount
Financial Assets
Investments in:-
Mutual Funds 6,648.64 - 6,648.64 6,477.06 171.58 - 6,648.64
Debt Securities 8.22 263.50 271.72 - 280.42 8.22 288.64
Equity Instrument in Others 24.27 - 24.27 - - 24.27 24.27
Investment in Alternative Investment Funds 206.07 - 206.07 - 34.78 171.29 206.07
Investment in Venture Capital Fund 5.33 - 5.33 - - 5.33 5.33
Trade & Other Receivables* - 106.45 106.45 106.45
Cash and Cash Equivalents* - 10.33 10.33 10.33
Other Bank Balances* - 29.69 29.69 29.69
Other Financial Asset* - 21.16 21.16 21.16
Total 6,892.53 431.13 7,323.66 6,477.06 486.78 209.11 7,340.58
Financial Liabilities
Trade Payables* - 38.96 38.96 38.96
Other Financial Liabilities
Lease Liabilities - 124.95 124.95 - 125.92 - 125.92
Others* - 81.92 81.92 81.92
Total Other Financial Liabilities - 206.87 206.87 - 125.92 - 207.84
Total - 245.83 245.83 - 125.92 - 246.80

ANNUAL REPORT 2023-24 279

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

` (in Crore)
Particulars Carrying Amount Fair Value
Total
Amortised
As at March 31, 2023 FVTPL Carrying Level 1 Level 2 Level 3 Total
Cost
amount
Financial Assets
Investments in:-
Mutual Funds 5,476.86 - 5,476.86 5,326.88 149.98 - 5,476.86
Debt Securities 7.41 417.94 425.35 - 440.71 7.41 448.12
Equity Instrument in Others 23.18 - 23.18 - - 23.18 23.18
Investment in Alternative Investment Funds 127.57 - 127.57 - - 127.57 127.57
Investment in Venture Capital Fund 23.20 - 23.20 - - 23.20 23.20
Trade & Other Receivables* - 194.98 194.98 194.98
Cash and Cash Equivalents* - 4.46 4.46 4.46
Other Bank Balances* - 2.57 2.57 2.57
Other Financial Asset* - 32.12 32.12 32.12
Total 5,658.22 652.07 6,310.29 5,326.88 590.69 181.36 6,333.06
Financial Liabilities
Trade Payables* - 34.46 34.46 34.46
Other Financial Liabilities
Lease Liabilities - 130.47 130.47 - 129.76 - 129.76
Others* - 75.70 75.70 75.70
Total Other Financial Liabilities - 206.17 206.17 - 129.76 - 205.46
Total - 240.63 240.63 - 129.76 - 239.92

*Fair value of cash and cash equivalents, other bank balances, trade & other receivables, other financial assets, trade payables and other financial
liabilities (excluding lease liabilities) approximate their carrying amounts largely due to current maturities of these instruments. Accordingly, fair value
hierarchy for these financial instruments have not been presented above.

For the purpose of disclosure, quoted price is considered as the fair value of financial assets that are measured at amortised cost. However, they are
shown under level 2 in the fair value hierarchy as they are thinly traded.

B. Fair value hierarchy

As per Ind AS 107, 'Financial Instruments: Disclosures', the fair values of the financial assets or financial liabilities are
defined as the price that would be received on sale of asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either
observable or unobservable. The hierarchy gives the highest priority to quoted prices in active markets for identical assets
or liabilities and lowest priority to unobservable inputs.

The hierarchy used is as follows:

Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Investment in open
ended Mutual Funds are included in Level 1.

Level 2 — Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices). Lease liabilities and Investment in close ended
Mutual Funds, Alternative Investment Fund and Debt Securities that are not traded in active market are included
in Level 2.

280 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Level 3 — Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or
in part using a valuation model based on assumptions that are neither supported by prices from observable
current market transactions in the same instrument nor are they based on available market data. Investment in
unlisted Debt Securities, unlisted Equity Instruments, Alternative Investment Funds and Venture Capital Fund
are included in Level 3.

C. Valuation techniques used to determine fair value

Financial instrument Valuation technique
Mutual Funds Net Asset Value (NAV) declared by the mutual fund at which units are issued or redeemed/quoted price
Debt Securities Discounted cash flow based on present value of the expected future economic benefit/quoted price
Equity Instruments in Others Underlying Asset Approach/Discounted cash flow based on present value of the expected future
economic benefit
Alternative Investment Funds Net Asset Value (NAV) provided by issuer fund which is arrived at based on valuation from independent
and Venture Capital Fund valuer for unlisted portfolio companies, quoted price of listed portfolio companies and price of recent
investments
Lease Liabilities Discounted cash flows based on present value of expected payments, discounted using a risk-adjusted
discount rate

In order to assess Level 3 valuations as per Investment policy, the management reviews the performance of the investee
companies (including unlisted portfolio companies of venture capital funds and alternative investment funds) on a regular
basis by tracking their latest available financial statements/financial information, valuation report of independent valuers,
recent transaction results etc. which are considered in valuation process.

The finance department of the Company includes the team that performs the valuation of financial assets and liabilities
required for financial reporting purposes, including level 3 fair value. The team reports directly to the Chief Financial Officer
(CFO) of the Company. Discussions of valuation processes and results are held between the valuation team and the senior
management at least once every three months which is in line with the Company’s quarterly reporting periods.

D. Valuation inputs and relationship to fair value

The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair
value measurement.

As at March 31, 2024

Significant Probability
Financial Instrument Sensitivity of input to fair value measurement
unobservable inputs weights/range
Debt Securities Valuation Factor 10% - 20% A 10% increase in the valuation factor would decrease the carrying value
of investment by `0.82 Crore. A 10% decrease in the valuation factor
would increase the carrying value of investment by `0.82 Crore.
Equity Instruments in Valuation Factor 10% - 20% A 10% increase in the valuation factor would decrease the carrying value
Others of investment by `2.43 Crore. A 10% decrease in the valuation factor
would increase the carrying value of investment by `2.43 Crore.
Alternative Net Asset Value (NAV) 0.90x -1.10x A 10% increase in the NAV would increase the carrying value of
Investment Funds investment by `17.13 Crore. A 10% decrease in the NAV would decrease
the carrying value of investment by `17.13 Crore.
Venture Capital Fund Net Asset Value (NAV) 0.90x -1.10x A 10% increase in the NAV would increase the carrying value of
investment by `0.53 Crore. A 10% decrease in the NAV would decrease
the carrying value of investment by `0.53 Crore.

ANNUAL REPORT 2023-24 281

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

As at March 31, 2023

Significant unobservable Probability
Financial Instrument Sensitivity of input to fair value measurement
inputs weights/range
Debt Securities Valuation Factor 10% - 20% A 10% increase in the valuation factor would decrease the carrying value
of investment by `0.74 Crore. A 10% decrease in the valuation factor
would increase the carrying value of investment by `0.74 Crore.
Equity Instruments in Valuation Factor 10% - 20% A 10% increase in the valuation factor would decrease the carrying value
Others of investment by `2.32 Crore. A 10% decrease in the valuation factor
would increase the carrying value of investment by `2.32 Crore.
Alternative Net Asset Value (NAV) 0.90x -1.10x A 10% increase in the NAV would increase the carrying value of
Investment Funds investment by `12.51 Crore. A 10% decrease in the NAV would decrease
the carrying value of investment by `12.51 Crore.
Venture Capital Fund Net Asset Value (NAV) 0.90x -1.10x A 10% increase in the NAV would increase the carrying value of
investment by `2.32 Crore. A 10% decrease in the NAV would decrease
the carrying value of investment by `2.32 Crore.

E. Fair value measurement using significant unobservable inputs (level 3)

The following table shows a reconciliation from the opening balances to the closing balances for Level 3 fair values:
` (in Crore)
Investment
Equity Investment
in Alternative
Particulars Debt Securities Instrument in in Venture Total
Investment
Others Capital Fund
Funds
Balance as at April 01, 2022 6.98 22.85 115.70 23.11 168.64
Net gain/(losses) on Financial Instruments 0.43 - 10.80 1.58 12.81
recognised in the Consolidated Statement of
Profit and Loss
Purchases of Financial Instruments - 0.33 9.14 - 9.47
Sales of Financial Instruments - - (8.07) (1.49) (9.56)
Balance as at March 31, 2023 7.41 23.18 127.57 23.20 181.36
Net gain/(losses) on Financial Instruments 0.81 1.09 11.45 (7.21) 6.14
recognised in the Consolidated Statement of
Profit and Loss
Purchases of Financial Instruments - - 61.90 - 61.90
Sales of Financial Instruments - - (29.63) (10.66) (40.29)
Balance as at March 31, 2024 8.22 24.27 171.29 5.33 209.11

F. Financial Risk Management

Risk management is an integral part of the business practices of the Group. The Group's primary focus is to foresee the
unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The
financial risks are managed in accordance with the risk management policy which has been approved by the Board of
Directors. The Company’s Board of Directors has overall responsibility for managing the risk profile of the Company. The
purpose of risk management is to identify potential problems before they occur, so that risk-handling activities may be
planned and invoked as needed to manage adverse impacts on achieving objectives.

The Audit Committee of the Company reviews the development and implementation of the risk management policy of the
Company on periodic basis. The Audit Committee provides guidance on the risk management activities, review the results
of the risk management process and reports to the Board of Directors on the status of the risk management initiatives.

282 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

The Group has exposure to the following risks arising from Financial Instruments:
Risk Exposure arising from
Credit Risk Cash and cash equivalents, other bank balances, trade & other receivables, financial assets measured
at amortised cost
Liquidity Risk Financial liabilities
Market Risk - Foreign Exchange Recognised financial assets not denominated in `
Market Risk - Interest Rate Investments in debt securities/Fixed deposits with Bank
Market Risk - Price Investments in equity securities, units of mutual funds, debt securities measured at FVTPL, venture
capital fund and alternative investment funds

i. Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations and arises principally from the Group's trade and other receivables, cash and cash equivalents, and
financial assets measured at amortised cost.

Exposure to credit risk is mitigated through regular monitoring of collections, counterparty’s creditworthiness and
diversification in exposure.

Exposure to credit risk

The carrying amount of financial assets represents maximum amount of credit exposure. The maximum exposure to credit
risk is as per the table below, it being total of carrying amount of cash and cash equivalent, other bank balances, trade and
other receivables and financial assets measured at amortised cost.
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Maximum exposure to credit risk 431.13 652.07

Expected Credit Loss (ECL) on Financial Assets

The Group continuously monitors all financial assets subject to ECLs. In order to determine whether an instrument is subject
to 12 month ECL (12mECL) or life time ECL (LTECL), the Group assesses whether there has been a significant increase in
credit risk or the asset has become credit impaired since initial recognition. The Group applies following quantitative and
qualitative criteria to assess whether there is significant increase in credit risk or the asset has been credit impaired:

• Historical trend of collection from counterparty

• Group’s contractual rights with respect to recovery of dues from counterparty

• Credit rating of counterparty and any relevant information available in public domain.

ECL is a probability weighted estimate of credit losses. It is measured as the present value of cash shortfalls (i.e. the
difference between the cash flows due to the Group in accordance with contract and the cash flows that the Group expects
to receive).

The Group has three types of financial assets that are subject to the expected credit loss:

• Trade & other receivables and other financial assets

ANNUAL REPORT 2023-24 283

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

• Cash and cash equivalents and other bank balances

• Investment in debt securities measured at amortised cost.

Trade & Other Receivables and Other Financial Assets

Exposures to customers' outstanding at the end of each reporting period are reviewed by the Group to determine incurred
and expected credit losses. Historical trends of collection from counterparties on timely basis reflects low level of credit
risk. As the Group has a contractual right to such receivables as well as control over preponderant amount of such funds
due from customers, the Group does not estimate any credit risk in relation to such receivables. Further, management
believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical
payment behaviour.

The Group has placed security deposit with lessors for premises leased by the Group. The Group does not perceive any
significant decline in credit risk profile of the lessors where the amount of security deposit is material and hence expected
probability of default is considered as zero.

Cash and Cash Equivalents and Other Bank Balances

The Group holds cash and cash equivalents and other bank balances as per note 4 and 5. The credit worthiness of such
banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be high.

Investment in Debt Securities measured at amortised cost

The Group has made investments in tax free bonds. Funds are invested after taking into account parameters like
safety, liquidity and post tax returns etc. The Group avoids concentration of credit risk by spreading them over several
counterparties with good credit rating profile and sound financial position. The Group’s exposure and credit ratings of its
counterparties are monitored on an ongoing basis.

Investment in debt securities that are in tax free bonds do not carry any credit risk, being sovereign in nature. Credit risk
from other financial assets has not increased significantly since initial recognition. Accordingly, the expected probability of
default is low.

ii. Liquidity Risk

Liquidity risk is defined as the risk that the Group will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that
the Group might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the
cash flows under both normal and stress circumstances. Such scenarios could occur when funding needed for illiquid asset
positions is not available to the Group on acceptable terms.

To limit this risk, management has adopted a policy of managing assets with liquidity in mind and monitoring future cash
flows and liquidity on a regular basis. The Group has developed internal control processes for managing liquidity risk.

The Group maintains a portfolio of highly marketable and diverse assets that are assumed to be easily liquidated in the
event of an unforeseen interruption in cash flow. The Group assesses the liquidity position under a variety of scenarios,
giving due consideration to stress factors relating to both the market in general and specifically to the Group.

284 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

Exposure to Liquidity Risk

The table below analyses the Group's financial liabilities into relevant maturity pattern based on their contractual maturities
for all financial liabilities.
` (in Crore)
Contractual Cash Flows
As at March 31, 2024
Carrying amount Total 1 year or less More than 1 year
Financial Liabilities
Trade Payables 38.96 38.96 38.96 -
Lease Liability (remaining contractual maturities) 124.95 148.51 45.15 103.36
Other Financial Liabilities (excluding Lease Liability) 81.92 81.92 81.92 -
Total 245.83 269.39 166.03 103.36

` (in Crore)
Contractual Cash Flows
As at March 31, 2023 Carrying amount
Total 1 year or less More than 1 year
Financial Liabilities
Trade Payables 34.46 34.46 34.46 -
Lease Liability (remaining contractual maturities) 130.47 154.75 43.11 111.64
Other Financial Liabilities (excluding Lease Liability) 75.70 75.70 75.70 -
Total 240.63 264.91 153.27 111.64

iii. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument that may
result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The
Group is exposed to market risk primarily related to currency risk, interest rate risk and price risk.

Currency Risk
The Group has insignificant amount of foreign currency denominated assets. Accordingly, the exposure to currency risk
is insignificant.

Interest Rate Risk

The Group's investments are primarily in fixed rate interest instruments. Accordingly, the exposure to interest rate risk is
also insignificant.

Price Risk
Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related
market variables including interest rate for investments in debt oriented mutual funds and debt securities, whether caused
by factors specific to an individual investment, its issuer or the market. The Group’s exposure to price risk arises from
investments in equity securities, debt securities, units of mutual funds, venture capital fund and alternative investment
funds which are classified as financial assets at Fair Value Through Profit or Loss and is as follows:
` (in Crore)
As at As at
Particulars
March 31, 2024 March 31, 2023
Exposure to price risk 6,892.53 5,658.22

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HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

To manage its price risk from investments in equity securities, debt securities, units of mutual funds, venture capital fund
and alternative investment funds, the Group diversifies its portfolio.

Sensitivity Analysis
The table below sets out the effect on profit or loss and equity due to reasonable possible weakening/strengthening in
prices by 5%:
` (in Crore)
For the year ended For the year ended
Particulars
March 31, 2024 March 31, 2023
Effect on Profit and Loss
5% increase in the prices 344.63 282.91
5% decrease in the prices (344.63) (282.91)

Note 34 Maturity Analysis of Assets and Liabilities

The table below shows an analysis of assets and liabilities analysed according to when they are expected to be recovered
or settled.
` (in Crore)
As at March 31, 2024 As at March 31, 2023
Particulars Within After Within After
Total Total
12 months 12 months 12 months 12 months
Assets
Financial Assets
Cash and Cash Equivalents 10.33 - 10.33 4.46 - 4.46
Bank Balance other than above 29.69 - 29.69 2.57 - 2.57
Receivables
(i) Trade Receivables 93.27 - 93.27 183.74 - 183.74
(ii) Other Receivables 7.77 5.41 13.18 7.00 4.24 11.24
Investments 1,616.85 5,539.18 7,156.03 1,104.71 4,971.45 6,076.16
Other Financial Assets 6.16 15.00 21.16 20.22 11.90 32.12
Sub total - Financial Assets 1,764.07 5,559.59 7,323.66 1,322.70 4,987.59 6,310.29
Non Financial Assets
Current Tax Assets (net) - 31.12 31.12 - 30.46 30.46
Property, Plant and Equipment - 137.68 137.68 - 137.59 137.59
Intangible Assets Under Development - 0.87 0.87 - 2.14 2.14
Goodwill - 6.04 6.04 - 6.04 6.04
Other Intangible Assets - 8.92 8.92 - 6.84 6.84
Other Non Financial Assets 34.01 11.55 45.56 37.63 5.15 42.78
Sub total - Non Financial Assets 34.01 196.18 230.19 37.63 188.22 225.85
Total Assets 1,798.08 5,755.77 7,553.85 1,360.33 5,175.81 6,536.14

286 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

` (in Crore)
As at March 31, 2024 As at March 31, 2023
Particulars Within After Within After
Total Total
12 months 12 months 12 months 12 months
Liabilities
Financial Liabilities
Payables
Trade payables
(i) Total Outstanding Dues of Micro 1.08 - 1.08 0.05 - 0.05
Enterprises and Small Enterprises
(ii) Total Outstanding Dues of Creditors 37.88 - 37.88 34.41 - 34.41
other than Micro Enterprises and Small
Enterprises
Other Financial Liabilities 119.11 87.76 206.87 110.49 95.68 206.17
Sub total - Financial Liabilities 158.07 87.76 245.83 144.95 95.68 240.63
Non Financial Liabilities
Current Tax Liabilities (net) 6.26 - 6.26 18.39 - 18.39
Provisions 2.16 14.27 16.43 1.62 10.95 12.57
Deferred Tax Liabilities (net) - 115.56 115.56 - 100.77 100.77
Other Non Financial Liabilities 94.74 0.02 94.76 55.96 - 55.96
Sub total - Non Financial Liabilities 103.16 129.85 233.01 75.97 111.72 187.69
Total Liabilities 261.23 217.61 478.84 220.92 207.40 428.32

Note 35 Additional Information as required by Paragraph 2 of the General Instructions for Preparation
of Consolidated Financial Statements to Schedule III to the Companies Act, 2013
` (in Crore)
March 31, 2024
Net Assets i.e. total assets Share in other comprehensive Share in total comprehensive
Share in profit or loss
minus total liabilities income income
Name of the entity in the As % of
Group As % of As % of consolidated As % of total
Consolidated Amount Consolidated Amount other Amount comprehensive Amount
net assets profit or loss comprehensive income
income
Parent
HDFC Asset 99.58 7,045.07 100.16 1,945.88 85.03 (1.59) 100.18 1,944.29
Management Company
Limited
Indian Subsidiaries
HDFC AMC International 0.42 29.94 (0.16) (3.19) 14.97 (0.28) (0.18) (3.47)
(IFSC) Limited
Non-controlling interest - - - - - - - -
in subsidiary
Total 100.00 7,075.01 100.00 1,942.69 100.00 (1.87) 100.00 1,940.82

ANNUAL REPORT 2023-24 287

HDFC ASSET MANAGEMENT COMPANY LIMITED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

` (in Crore)
As at March 31, 2023
Net Assets i.e. total assets Share in other comprehensive Share in total comprehensive
Share in profit or loss
minus total liabilities income income
Name of the entity in the As % of
Group As % of As % of consolidated As % of total
Consolidated Amount Consolidated Amount other Amount comprehensive Amount
net assets profit or loss comprehensive income
income
Parent
HDFC Asset 99.94 6,104.06 100.04 1,423.92 110.53 0.42 100.04 1,424.34
Management Company
Limited
Indian Subsidiaries
HDFC AMC International 0.06 3.76 (0.04) (0.55) (10.53) (0.04) (0.04) (0.59)
(IFSC) Limited
Non-controlling interest - - - - - - - -
in subsidiary
Total 100.00 6,107.82 100.00 1,423.37 100.00 0.38 100.00 1,423.75

Note 36 Statutory disclosure required as per Schedule III Division III of the Companies Act, 2013
(i) Relationship with Struck off Companies
The transactions with the companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies
Act, 1956 are disclosed below:
As at March 31, 2024 As at March 31, 2023
Nature of transactions Relationship Relationship
Sr Name of struck off Transaction Transaction
with struck-off Balance with the Balance with the
No. Company during the during the
Company outstanding Struck off outstanding Struck off
year year
company Company
1 Vitalink Wealth Shares held by - 13 None - 13 None
Advisory Services struck off company
Private Limited (no.)
Dividend paid during 624 - None 546 - None
the year (`)

(ii) The Group is in compliance with number of layers of companies, as prescribed under clause (87) of Section 2 of the Act read
with the Companies (Restriction on number of Layers) Rules, 2017.

(iii) The Group does not have any transactions which were not recorded in the books of account, but offered as income during
the year in the income tax assessment.

(iv) The Group has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) No funds have been advanced/ loaned/ invested (from borrowed funds or from share premium or from any other sources/
kind of funds) by the Group to any other person(s) or entity(ies), including foreign entities (Intermediaries), with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the Group (Ultimate Beneficiaries) or (ii)
provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

288 POWERED BY PURPOSE

 FINANCIAL STATEMENTS CONSOLIDATED

Notes to Consolidated Financial Statements

for the year ended March 31, 2024

No funds have been received by the Group from any person(s) or entity(ies), including foreign entities (Funding Parties),
with the understanding (whether recorded in writing or otherwise) that the Group shall (i) directly or indirectly, lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate
Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 37
The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on
which the Code will come into effect has not been notified. The Group will assess the impact of the Code when it comes into
effect and will record any related impact in the period in which the Code becomes effective.

As per our report attached of even date For and on behalf of the Board of Directors
For B S R & Co. LLP Deepak S. Parekh Navneet Munot
Chartered Accountants Chairman Managing Director & Chief Executive Officer
ICAI Firm Registration No.: 101248W/W-100022 (DIN: 00009078) (DIN: 05247228)
Kapil Goenka Naozad Sirwalla Sylvia Furtado
Partner Chief Financial Officer Company Secretary
Membership No.: 118189 (ACS: 17976)
Mumbai, April 19, 2024

ANNUAL REPORT 2023-24 289

 HDFC Asset Management Company Limited
CIN: L65991MH1999PLC123027
HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166, Backbay Reclamation,
Churchgate, Mumbai - 400020, Maharashtra.