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13.CONSERVATION OF ENERGY TECHNOLOGY ABORPTION, EXPORT & FOREIGNEARNING AND OUTGOAs the Company is the Asset Management Company to HSBC Mutual Fund and provides portfoliomanagement services, no reporting in respect of conservation of energy and technology absorptionis required.During the year, the Company incurred expenditure of 6.66 crores [Previous year 9.80 crores] inforeign exchange and earned 35.98 crores [Previous year 40.60 crores] in foreign exchange.14.DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMAN AT WORKPLACE(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013The Company is committed to creating and maintaining an atmosphere in which employees canwork together, without fear of sexual harassment, exploitation and intimidation. Accordingly, yourCompany has in place a Policy for Prohibition, Prevention, & Redressal of Sexual Harassment ofWomen at the Workplace and an Internal Complaints Committee is set up to redress complaintsreceived regarding sexual harassment.The following are disclosures for the year as required under the Sexual Harassment of Women atWorkplace (Prevention, Prohibition and Redressal) Rules, 2013:Number of complaints of sexual harassment received duringthe yearNo. of Complaints disposed-off during the yearNo. of cases pending more than ninety daysNo. of workshop awareness programme against sexualharassment carried outNature of action taken by Employer or District Officer15.: NIL: Not Applicable: NIL: Online SH training moduleavailable for all employeesincluding New joiners. Allrelevant provisions under thePOSH Act covered in thistraining.: NARISK MANAGEMENT FRAMEWORKHSBC Enterprise Risk Management Framework has five main components: Culture and Values,Risk Governance, Roles and Responsibilities, Processes and Tools, and Internal Controls. Ourvalues of being open, connected and dependable are the foundations of our risk culture and help usmake the right decisions and take the appropriate risks.The Company has adopted a risk management and internal control structure, referred to as theThree Lines of Defence, to ensure it achieves its commercial aims while meeting regulatory andlegal requirements and its responsibilities to shareholders, customers and staff.1st Line: Comprises predominantly management of Businesses who are accountable andresponsible for their day to day activities and processes, their management of risks arising and thecontrols to mitigate those risks.5

2nd Line: Comprises predominantly the Governance Functions (e.g., Risk Teams, Compliance teamsetc.) whose role is to ensure that the Group meets its risk management and internal controlresponsibilities in relation to the risks they are responsible for overseeing3rd Line: is Global Internal Audit. Global Internal Audit provides independent assurance to the Groupover the design and operation of HSBC's risk management, governance and internal controlprocesses.Risk management is an integral part of the way we do business. We have detailed risk managementprocedures to comply with local regulatory guidelines and internal group policies. The group hasissued internal guidelines named as “Functional Instruction Manual” which are required to becomplied comprehensively. These are global best practice guidelines for each functional/businessarea. These guidelines have been prepared based on years of experience and are in a number ofcases more stringent than the local regulatory requirements.An experienced Risk Management team monitors Investment, Liquidity and Counterparty Limits andany exceptions are deliberated in Risk Management Meeting (RMM) meetings that are held everybi-month. The scope and remit of the AMIN RMM extends to the entire business of AMIN andHSBC Mutual Fund including managed account portfolios and sub-advised accounts.The AMIN RMM is responsible for setting, within the context of the Group direction, localregulations, the AMIN risk management strategy and appetite, policies and control standards forAMIN and to monitor their implementation. In this regard, the AMIN RMM will review the materialrisks affecting the AMIN business and is responsible for the oversight of the risk and internal controlenvironment in AMIN.Risk team also actively participates on various other Governance Forums like Front OfficeManagement Committee, Local Product Committee etc. Head Risk also chairs the Valuation andPricing Committee.16.DIRECTORS AND KEY MANAGERIAL PERSONNELAs required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, theBoard of Directors of the Company comprises minimum 50% directors who are not associated inany manner with, the Sponsor of HSBC Mutual Fund (HSBC Securities and Capital Markets (India)Private Limited) or any of its subsidiaries or the Trustees of HSBC Mutual Fund.The list of directors of AMIN as on March 31, 2021 is as follows:Sr. No.1.Name of the DirectorDr. Indu ShahaniDIN001122892.Mr. Dinesh Mittal000400003.Mr. Ravi Menon0001630217.PARTICULARS OF EMPLOYEESThe information as required as per Rule 5(2) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules, 2014 is annexed herewith.18.DEPOSITS6

The Company has not accepted any deposits from the public or employees during the year underreview.19.SIGNIFICANT AND MATERIAL ORDERSDuring the period, there were no significant and material orders passed by the regulators or courtsor tribunals impacting the going concern status and Company’s operations in future.20.AUDITORSPursuant to section 139 and 141 of the Companies Act, 2013, read with Companies (Audit &Auditors) Rules, 2014, M/s. Price Waterhouse LLP, Chartered Accountants (Firm Registration No.F012754N/N500016) (PW), Mumbai, had been re-appointed as Auditors of the Company at the 18thAnnual General Meeting (AGM) held on September 22, 2020, for a period of five consecutive yearsi.e. for the 2nd term of 5 years commencing from conclusion of 18th AGM to the conclusion of 23rdAGM.Pursuant to section 139 and 141 of the Companies Act, 2013, read with Companies (Audit &Auditors) Rules, 2014, PW had confirmed that their appointment is in accordance with the Section139 of the Companies Act, 2013 and the Rules made thereunder and that they are not disqualifiedin terms of section 141 of the Companies Act, 2013.21.COST RECORDSAs your Company is not a manufacturing company, the cost records are not required to bemaintained by your Company pursuant to an order passed by the Central Government.22.SECRETARIAL STANDARDSYour Company has complied with all the applicable Secretarial Standards.23.CORPORATE PHILOSOPHY AND COMPLIANCEThe Company firmly believes that strong corporate governance and compliance practices are ofparamount importance to maintain the trust and confidence of its stakeholders and the reputation ofthe Company. To ensure transparency, fairness and objectivity in the organisation’s functioning andunquestioned integrity of all personnel involved, the Company has proactively adopted bestpractices with regard to corporate governance and compliance.24.ADEQUACY OF INTERNAL FINANCIAL CONTROLSThe Board has adopted the policies and procedures for ensuring the orderly and efficient conduct ofits business, including adherence to the Company’s policies, the safeguarding of its assets, theprevention and detection of frauds and errors, the accuracy and completeness of the accountingrecords, and the timely preparation of the reliable financial disclosures. This framework providesadequate financial controls with reference to financial statements commensurate with the businessand operations of the Company. During the year, there was no adverse observations received fromStatutory Auditors of the Company for inadequacy of such controls.7

25.COMMENTS ON AUDITOR’S REPORTThere are no qualifications, reservations or adverse remarks made by M/s. Price Waterhouse LLP,Chartered Accountants in their report.26.MATERIAL CHANGES COMMITMENTSThere have been no material changes and commitments affecting the financial position of yourCompany which have occurred between the end of the financial year i.e. 31 March 2021 to whichthe Financial Statements relate and the date of the report.27.ACKNOWLEDGEMENTSThe Company maintained cordial relationships with Regulatory Authorities, Financial Institutions,Banks and investors during the year under review. The Directors are grateful for the supportextended by them and look forward to receiving their continued support and encouragement.The Directors wish to place on record their appreciation to the employees of the Company for theirdedication and commitment.By authority of the BoardSd/-Dr. Indu ShahaniDirectorDIN – 00112289Sd/-Ravi MenonDirector & Chief Executive OfficerDIN - 00016302Place: Mumbai8

ANNEXURE – AANNUAL REPORT ON CSR ACTIVITIES TO BE INLCUDED IN BOARD ‘S REPORT1.A brief outline of the company’s CSR policy, including overview of projects orprograms proposed to be undertaken and a reference to the web-link to the CSR policyand projects or programs:The Company is committed to Corporate Social Responsibility (CSR) and demonstrates thisby contributing to the economic and social development of the communities and safeguardingthe environment. While these two components are universal and will be at the center of mostsustainability initiatives, there are various components which make up this huge canvas. TheCompany’s community investments (CI) are focused on two core themes:1. Promoting Education2. Environmental SustainabilityWithin Promoting Education focus is particularly on: Disadvantaged young people particularly at primary and secondary education levels Employment enhancing vocational skills Livelihoods enhancement projects Empowering women Language and cultural understandingWithin the Environmental Sustainability focus is particularly on: Freshwater sustainability Access to safe water Water and sanitation Climate change Conservation of terrestrial biodiversity and habitats (e.g. forests) (ecological balance,protection of flora and fauna)2.Sl.No.The composition of the CSR Committee:Name of DirectorDesignation / Nature ofDirectorshipNumber ofmeetings ofCSR Committeeheld during theyearNumber ofmeetings of CSRCommitteeattended duringthe year1Dr. Indu ShahaniIndependent Director112Ravi MenonDirector & ChiefExecutive Officer113Dinesh MittalIndependent Director113.Provide the web-link where Composition of CSR Committee, CSR Policy and CSRprojects approved by the board are disclosed on the website of the ty-policy9

4.Provide the details of Impact assessment of CSR projects carried out in pursuance ofsub-rule (3) of rule 8 of the Companies (Corporate Social Responsibility Policy) Rules,2014, if applicable (attach the report). – Not Applicable5.Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of theCompanies (Corporate Social Responsibility Policy) Rules, 2014 and amount requiredfor set off for the financial year, if any – Not Applicable.Sl. No. FinancialYear16.Amount available for set-offAmount required to be set-off forfrom preceding financial years the financial year, if any (in Rs)(in Rs)2020-2021NANAAverage net profit of the Company for last three financial years:Average net profit: Rs. 15.63 Crores7. (a) Two percent of average net profit of the company as per section 135(5): The Company wasrequired to spend Rs. 31.27 Lakhs towards CSR.(b) Surplus arising out of the CSR projects or programmes or activities of the previous financialyears: NIL(c) Amount required to be set off for the financial year, if any: NIL(d) Total CSR obligation for the financial year (7a 7b-7c). Rs. 31.27 lakhs8. (a) CSR amount spent or unspent for the financial year:Amount Unspent (in Rs.)Total amountSpent for theFinancialYear.(in Rs.)31,61,000Total Amount transferred toUnspent CSR Account as persection 135(6).Amount transferred to any fund specifiedunder Schedule VII as per second proviso tosection 135(5).AmountName of nsferN.A.of(b) Details of CSR amount spent against ongoing projects for the financial year: N.A.(1)SI.No.(2)Nameof theproject(3)Itemfrom thelist ofactivitiesinScheduleVII ofthe Act.(4)Localarea(Yes/No)(5)Location ofthe ocatedfor theproject(in Rs.)(8)Amountspent inthecurrentfinancialYear (inRs.).(9)AmounttransferredtoUnspentCSRAccountfor theproject asperSection135(6) (inRs.).(10)Mode ofImplementation Direct(Yes/No).(11)Mode Registr

ationNo.(c) Details of CSR amount spent against other than ongoing projects for the financial year:Sr.No.CSR project or Item from theactivitylist ofidentifiedactivities inschedule VIItothe Act.Localarea(Yes/Location of theprojectNo).State1Strengthen andequipLokmanya TilakMunicipalHospitalinSion, dingrelief,rehabilitationYesMaharashtraAmountspent forthe Project(in Rs).DistrictMumbaiMode ofMode ofimplementati implementation on - DirectThrough(Yes/ implementingNo). agency.Name31,61,000Concern IndiaFoundationCSRRegistration No.CSR00000898(d) Amount spent in Administrative Overheads – NIL(e) Amount spent on Impact Assessment, if applicable - NIL(f) Total amount spent for the Financial Year (8b 8c 8d 8e) – 31,61,000(g) Excess amount for set off, if any – please see below detailsSINo.(i)(ii)(iii)(iv)(v)ParticularsAmount (in Rs.) ( in lacs)Two percent of average net profit of the company as per section 135(5)Total amount spent for the Financial YearExcess amount spent for the financial year [(ii)-(i)]Surplus arising out of the CSR projects or programmes or activities ofthe previous financial years, if anyAmount available for set off in succeeding financial years [(iii)-(iv)]31.2731.610.34-9. (a) Details of Unspent CSR amount for the preceding three financial years: NILSl No.PrecedingFinancialYearAmounttransferredto UnspentCSRAccountunderSection135(6) (inRs.)Amountspent inthereportingFinancialYear(in Rs.)Amount transferred to any fundspecified under Schedule VII as persection 135(6), if anyName of the Amount (in Date ofFundRs.)transferAmountremaining tobespent insucceedingfinancialyears(in Rs.)11

N.A.(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financialyear(s): NIL(1)SI No.(2)ProjectID.(3)Name oftheProject.(4)FinancialYearin which theproject catedfor theproject (inRs.).(7)Amountspent ontheprojectin thereportingFinancialYear (inRs).(8)Cumulativeamountspent atthe end ofreportingFinancialYear. (inRs.)(9)Status oftheproject –Completed/Ongoing.N.A.10. In case of creation or acquisition of capital asset, furnish the details relating to the asset socreated or acquired through CSR spent in the financial year (asset-wise details).:(a) Date of creation or acquisition of the capital asset(s) - 22nd June 2021 (machine delivered andaccepted)(b) Amount of CSR spent for creation or acquisition of capital asset. - INR 21,58,834/(c) Details of the entity or public authority or beneficiary under whose name such capital asset isregistered, their address etc. - Pharmacy Department, LokManya Tilak General Hospital, Sion,Mumbai 400 022(d) Provide details of the capital asset(s) created or acquired (including complete address andlocation of the capital asset). - Same as above11. Specify the reason(s), if the company has failed to spend two per cent of the average net profitas per section 135(5).: N.A.Sd/-Mr. Ravi MenonChief Executive Officer & DirectorDIN: 00016302Sd/-Dr. Indu ShahaniChairman CSR CommitteeDIN: 0011228912

Price Waterhouse Chartered Accountants LLPIndependent auditor’s reportTo the Members of HSBC Asset Management (India) Private LimitedReport on the audit of the Financial StatementsOpinion1.We have audited the accompanying financial statements of HSBC Asset Management(India) Private Limited (“the Company”), which comprise the Balance Sheet as at March31, 2021, and the Statement of Profit and Loss (including Other ComprehensiveIncome), Statement of Changes in Equity and Statement of Cash Flows for the year thenended, and notes to the financial statements, including a summary of significantaccounting policies and other explanatory information.2. In our opinion and to the best of our information and according to the explanations givento us, the aforesaid financial statements give the information required by the CompaniesAct, 2013 (“the Act") in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India, of the state ofaffairs of the Company as at March 31, 2021, and total comprehensive income(comprising of profit and other comprehensive income), changes in equity and its cashflows for the year then ended.Basis for opinion3. We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor’s Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Codeof Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.Other Information4. The Company’s Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Directors’ report, but does notinclude the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read theother information and, in doing so, consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If, based on the work we have performed,we conclude that there is a material misstatement of this other information, we arerequired to report that fact.We have nothing to report in this regard. Price Waterhouse Chartered Accountants LLP, Nesco IT Building III, 8th Floor, Nesco IT Park, Nesco ComplexGate No. 3 Western Express Highway, Goregaon East, Mumbai - 400 063T: 91(22) 61198000. F: 91 (22) 61198799Registered office and Head office: Sucheta Bhawan, 11A Vishnu Digambar Marg, New Delhi 110 002Price Waterhouse (a Partnership Firm) converted into Price Waterhouse Chartered Accountants LLP (a Limited Liability Partnership with LLPidentity no: LLPIN AAC-5001) with effect from July 25, 2014. Post its Conversion to Price Waterhouse Chartered Accountants LLP, its ICAlregistration number is 012754N/N500016 (ICAI registration number before conversion was 012754N)13

Price Waterhouse Chartered Accountants LLPINDEPENDENT AUDITOR’S REPORTTo the Members of HSBC Asset Management (India) Private LimitedReport on audit of the Financial StatementsPage 2 of 4Responsibilities of management and those charged with governance for thefinancial statements5.The Company’s Board of Directors is responsible for the matters stated in section 134(5)of the Act with respect to the preparation of these financial statements that give a trueand fair view of the financial position, financial performance, changes in equity and cashflows of the Company in accordance with the accounting principles generally acceptedin India, including the Accounting Standards specified under section 133

a) Mutual Fund During the year, the following schemes were launched by HSBC Mutual Fund Details of schemes launched Scheme Name Date of Launch Amount Collected in NFO (in INR Crs.) HSBC Focused Equity Fund 22-Jul-20 509.08 HSBC Corporate Bond Fund 29-Sep-20 702.56 HSBC Global Equity Climate Change Fund of Fund 22-Mar-21 617.71