HDFC Pension Management Company Limited: Annual Report 2020-21

HDFC Pension Management Company Limited
Annual Report
2020-21
Contents
Corporate Information …………………………………………..........1
Directors’ Report ………………………………………………….........2
Independent Auditor’s Report…………………………….............9
Balance Sheet …………………………………………………….........14
Statement of Profit and Loss Account ……………………………15
Cash Flow Statement …………………………………………...........16
Notes to Financial Statements……………………………..........17

Corporate Information
Board of Directors
Mr. Prasad Chandran,
Non-Executive Independent Director
Mr. AKT Chari,

Non-Executive Independent Director
Mr. Sumit Bose,

Non-Executive Independent Director (appointed w.e.f August 12, 2020)
Ms. Vibha Padalkar,

Non-Executive Director
Mr. Parvez Mulla,

Non-Executive Director
Chief Executive Officer

Mr. Sumit Shukla
Chief Financial Officer

Mr. Fagun Pancholi
Company Secretary & Compliance Officer

Mr. Nagesh Pai
Statutory Auditors
M/s. Kirtane & Pandit LLP (For Company financials)
M/s. Khandelwal & Jain (For Scheme financials)
Registered Office
14th Floor, Lodha Excelus, Apollo Mills Compound,
N M Joshi Marg, Mahalaxmi, Mumbai - 400 011
Tel: 022-6751 6666
Fax: 022-6751 6333
Email: compliance@hdfcpension.com
Website: www.hdfcpension.com
CIN: U66020MH2011PLC218824
Bankers
HDFC Bank Limited (For Company)
Axis Bank Limited (For Scheme(s) managed under National Pension System & Point of Presence Collection Account)
Annual Report 2020-21 1

Directors’ Report
TO The Company has approximately 7.61 lakhs subscribers
THE MEMBERS OF as on March 31, 2021 comprising of approximately
5.09 lakhs subscribers in retail segment and approximately
HDFC PENSION MANAGEMENT COMPANY LIMITED
2.52 lakhs subscribers in corporate segment. The Company
Your Directors have pleasure in presenting the 10th ranked #1 in corporate segment subscribers and #2 in
Directors' Report of HDFC Pension Management Company retail segment subscribers amongst all the Pension Fund
Limited (“HDFC Pension”/“the Company”) on its business Managers.
and operations, along with the Audited Financial
Statements for the financial year ended March 31, 2021. Effective, April 1, 2019, Central Government employees
have been allowed to choose any of the pension funds
FINANCIAL PERFORMANCE including the private sector pension funds for investment
The financial performance of the Company is summarized in NPS. This has opened up huge opportunity for HDFC
as under: Pension and the Company has started receiving inflow
(` in thousands)
of funds from Central Government employees. As on
March 31, 2021, a total of ` 373.7 crore of Central Government
Particulars FY2021 FY2020
(Audited) (Audited) employee’s funds had migrated to a single fund manager,
Gross Income 54,995 34,995 out of which 42% was received by HDFC Pension.
Total Expenses 53,976 43,074
HDFC Pension is also growing its operation as a POP in both
Profit/Loss before Tax 1,019 (8,079)
retail and corporate NPS segments and has positioned
Provision for Tax 159 -
itself strongly in this sector as well. During the FY2020-21,
Profit/Loss after Tax 860 (8,079)
HDFC Pension was ranked #1 POP in terms of new corporate
Balance of Loss from previous years (21,094) (13,015)
registration and new corporate subscriber registration and
Loss carried forward to the Balance (20,234) (21,094)
#8 in new retail subscriber registration amongst more than
Sheet
90 POPs.
The above figures are extracted from the Financial

KEY REGULATORY CHANGES
Statements prepared in accordance with the accounting
principles generally accepted in India (“Indian GAAP”) Some of the key sector specific regulatory changes during
under the historical cost convention on an accrual basis the year were as follows:
of accounting and in compliance with the Accounting Pension Fund:
Standards notified under Section 133 of the Companies
• PFRDA had rolled out new Request for proposal (“RFP”)
Act, 2013, and amendments and rules made thereto (“the
for selection of sponsor of Pension Fund in December
Act”), to the extent applicable.
2020. Accordingly, HDFC Life Insurance Company
Limited (”Sponsor Company”) had submitted the bid
BUSINESS REVIEW
and was allotted a Letter of Appointment to act as a
HDFC Pension, a wholly-owned subsidiary of HDFC Life Sponsor and a fresh Certificate of Registration was
Insurance Company Limited, started its operations as a granted to HDFC Pension for management of pension
Pension Fund Management Company in August 2013. assets under NPS. Further, there has been an upward
Further, HDFC Pension was granted the Certificate of revision in the Investment Management charges with
Registration in February, 2019 by the Pension Fund effect from April 1, 2021
Regulatory and Development Authority (“PFRDA”) for
acting as Point of Presence (“POP”) under National Pension • here has been an upward revision in payment of
T
System(“NPS”), to provide POP – NPS – Distribution and Annual Fees paid by Pension Funds
Servicing for public at large. HDFC Pension continues to be
Point of Presence:
the #1 privately owned Pension Fund Manager in India in
terms of Assets Under Management (“AUM”) and also the • PFRDA has now allowed POPs to utilize the Aadhar
fastest growing Pension Fund Manager under the NPS based offline paperless KYC verification process which
architecture. eliminates the need for the prospective NPS applicant
to provide the physical copy of Aadhar
HDFC Pension is the largest Pension Fund Manager in
• FRDA has appointed an Ombudsman and the manner
P
India in both retail and corporate NPS category amongst
to facilitate resolution to subscriber complaints or
all Pension Fund Managers. The AUM of the Company as on
grievances
March 31, 2021 was ` 16,384 crore, registering a growth of
approximately 98% over previous year. The market share • FRDA has allowed the existing NPS subscribers
P
of the Company grew to 34% as on March 31, 2021 from including the NRI – NPS subscribers under
31% as on March 31, 2020. Government/Non Government/All Citizens model
2
Directors’ Report
to deposit their voluntary contributions as well as Independent Directors

withdrawals/ exit by creating a Virtual ID linked to The Board of HDFC Pension comprises of three
their PRAN Independent Directors viz. Mr. AKT Chari (DIN: 00746153),
Mr. Prasad Chandran (DIN: 00200379) and Mr. Sumit Bose
NETWORTH
(DIN: 03340616). The Independent Directors of the Company
The PFRDA (Pension Fund) Regulations, 2015 required are eminent personalities having significant experience
a private sector Pension Fund to maintain a minimum and expertise.
positive tangible networth of ` 25 crore. Accordingly, the
Company has maintained a positive tangible networth of Mr. Sumit Bose (DIN: 03340616) was appointed as an
` 25 crore during the FY2020-21. Additional Director of the Company categorised as
‘Independent Director’ on August 12, 2020, and holds
As on March 31, 2021, the tangible networth of the office till the ensuing Annual General Meeting (“AGM”).
Company stood at ` 25.84 crore. In line with the provisions of the Act, the appointment of
Mr. Sumit Bose (DIN: 03340616) is proposed to be regularized
However, as per the amended PFRDA (Pension Fund) at the 10th AGM for first term of five consecutive years
Regulations, 2015 and further to the issuance of fresh from the date of his initial appointment, and the relevant
certificate of registration, the Pension Fund is required to resolution and disclosures for his appointment forms a part
achieve minimum tangible net worth of ` 50 crore or such of the Notice of the 10th AGM.
higher amount as may be prescribed by the Authority.
The timelines to achieve the same would be a period of As per the provisions of the Act, Mr. Prasad Chandran
6 months from issuance of fresh certificate of registration (DIN: 00200379) was appointed to hold office for first
consequent to selection as Pension Fund based on the term of five consecutive years upto August 20, 2022, and
fresh request for proposal issued by the PFRDA. Mr. AKT Chari (DIN: 00746153), was appointed to hold the
office for his second term of five consecutive years upto
DIVIDEND AND RESERVES April 16, 2024.
In view of the accumulated losses in Profit and Loss
Further, the Independent Directors are not liable to retire by
account, the Directors do not recommend any dividend for
rotation, and therefore shall not be counted for determining
the FY2020-21. The Company does not propose to transfer
the number of Directors liable to retire by rotation.
any amount to reserves during the FY2020-21.
Statement on Declaration by Independent Directors
SHARE CAPITAL
The Independent Directors of the Company have confirmed
There was no change in the Company’s paid-up share
that they meet the criteria of Independence as laid down
capital during the year, which stood at ` 28 crore as on
under Section 149 of the Act.
March 31, 2021. The entire paid-up share capital of the
Company is held by HDFC Life Insurance Company Limited
and its nominees. Your Company has undertaken the requisite steps for
inclusion of the names of all Independent Directors in the
The Company has not issued any bonus shares, sweat databank maintained with the Indian Institute of Corporate
equity shares, shares with differential voting rights or Affairs, Manesar ("IICA"). Accordingly, all the Independent
equity shares on right basis during the year under review. Directors of the Company have registered themselves with
IICA for the said purpose. In terms of Section 150 of the
BOARD OF DIRECTORS AND KEY MANAGERIAL Act read with Rule 6(4) of the Companies (Appointment
PERSONNEL & Qualification of Directors) Rules, 2014 (including any
amendments thereunder), Independent Directors are
Board of Directors
required to undertake online proficiency self-assessment
The Board of Directors of the Company ("Board") is
test to be conducted by IICA within a period of two years
responsible for overseeing the business and operations of
from the date of inclusion of their names in the Databank.
the Company.
On fulfilling the exemption criteria prescribed under the said
rule, none of the Independent Directors of the Company are
The Board comprises of five Directors. The composition of
required to undergo the test conducted by the IICA.
the Board of Directors as on March 31, 2021 is as follows:
• Three Independent Directors; and Meeting of Independent Directors
• wo Non-Executive Directors, out of which one is a
T During the FY2020-21, a separate meeting of the
Woman Director. Independent Directors was held on March 22, 2021.

Directors’ Report
Retirement by Rotation Audit Committee

As per the provisions of the Act, Ms. Vibha Padalkar There were four (4) meetings of the Audit Committee held
(DIN: 01682810), retires by rotation, and being eligible, during the FY2020-21 on April 23, 2020, July 17, 2020,
offers herself for re-appointment at the 10th AGM of the October 15, 2020 and January 18, 2021. The details of
Company. A resolution for the said purpose along with a attendance of Members at the meetings are as follows:
brief profile of Ms. Vibha Padalkar (DIN: 01682810) forms
part of the Notice of the 10th AGM of the Company. Name of the Member Category Number of meetings
attended/held during
Statement on Non-disqualification of Directors the year
None of the Directors are disqualified from being appointed Mr. AKT Chari Independent 4/4
as Director under Section 164 of the Act. Director
Mr. Prasad Chandran Independent 4/4
During the FY2020-21, five (5) meetings of the Board of Director
Directors of the Company were held on April 23, 2020, Ms. Vibha Padalkar Non-Executive 4/4
May 20, 2020, July 17, 2020, October 15, 2020 and Director
January 18, 2021 and the maximum gap between two
meetings did not exceed 120 days. The details of attendance Recommendations by the Audit Committee
of Directors at the meetings are as follows: During the FY2020-21, there were no instances where the
Name of the Director Category Number of meetings recommendations made by the Audit Committee were not
attended/held during accepted by the Board.
the year
Mr. AKT Chari Independent Director 5/5 Investment Committee
Mr. Prasad Chandran Independent Director 5/5
There were four (4) meetings of the Investment Committee
Mr. Sumit Bose1 Independent Director 2/2
held during the FY2020-21 on April 23, 2020, July 17, 2020,
Ms. Vibha Padalkar Non-Executive Director 5/5
October 15, 2020 and January 18, 2021.
Mr. Parvez Mulla Non-Executive Director 5/5
Note: In order to ensure compliance with the provision of

1
Mr. Sumit Bose was appointed as Independent (Additional) Director with
Schedule X of PFRDA (Pension Fund) (Third Amendment)
effect from August 12, 2020. Regulations, 2020 (Amended Regulations) the Investment
Committee was re-constituted by inclusion of an
Key Managerial Personnel Independent Director and Chief Risk Officer. The details of
The management of the Company has a wide range attendance of Members at the meetings are as follows:
of skills, expertise and experience which ensures the
Name of the Member Category Number of meetings
effective operations of the Company and better utilization attended/held during
of resources. Mr. Sumit Shukla, Chief Executive Officer, the year
Mr. Fagun Pancholi, Chief Financial Officer and Mr. Nagesh Mr. AKT Chari Independent 4/4
Pai, Company Secretary & Compliance Officer, are the Key Director
Managerial Personnel of the Company under the Act. Mr. Sumit Bose1 Independent 2/2
Director
Other than the above, Mr. Vishwas Katela serves as the
Ms. Vibha Padalkar Non-Executive 4/4
Chief Investment Officer, Mr. Sunil Kapoor as the Chief Risk Director
Officer and Mr. Mihir Joshi as the Chief Information Security
Mr. Parvez Mulla Non-Executive 4/4
Officer as per the PFRDA (Pension Fund) Regulations, 2015 Director
and amendments thereof and hereinafter called as Key
Mr. Sumit Shukla Chief Executive 4/4
Personnel under the said Regulations. Officer
Mr. Vishwas Katela Chief Investment 4/4
BOARD COMMITTEES Officer
The Board of Directors have constituted the following Mr. Sunil Kapoor2 Chief Risk Officer 2/2
committees in compliance with the requirements of the
Notes:
Act read with the PFRDA (Pension Fund) Regulations, 2015
Mr. Sumit Bose was appointed as the member of the Committee with effect
1
and amendments thereof and the Investment Management from August 12, 2020.
Agreement executed with the NPS Trust. The details of the 2
Mr. Sunil Kapoor was appointed as the member of the Committee with
Committees are as follows: effect from July 17, 2020.
4
Directors’ Report
Risk Management Committee Foreign Exchange Earnings and Outgo

There were four (4) meetings of the Risk Management There were no foreign exchange earnings and outgo during
Committee held during the FY2020-21 on April 23, 2020, the FY2020-21.
July 17, 2020, October 15, 2020 and January 18, 2021.
POLICY ON REMUNERATION OF DIRECTORS
In order to ensure compliance with the provision of The Company has put in place a Policy on remuneration of
Schedule X of PFRDA (Pension Fund) (Third Amendment) Directors, Key Managerial Personnel and other employees.
Regulations, 2020 (Amended Regulations) the Risk
The said Policy is guided by the set of principles and
Management Committee was re-constituted by inclusion
objectives as envisaged under section 178 of the Act,
of Chief Risk Officer. The details of attendance of Members
which inter alia include principles pertaining to determining
at the meetings are as follows:
the qualifications, positive attributes, integrity and
Name of the Member Category Number of meetings independence of Director, etc.
attended/held during
the year The Nomination & Remuneration Committee of the
Mr. Prasad Chandran Independent 4/4 Board deals with matters related to appointment and
Director remuneration of Directors, Key Managerial Personnel
Ms. Vibha Padalkar N o n - E xe c u t i ve 4/4 and other employees of the Company. The Independent
Director Directors remuneration comprise of sitting fees for
Mr. Parvez Mulla N o n - E xe c u t i ve 4/4 attending the meetings of Board and Committees of the
Director Board.
Mr. Sumit Shukla Chief Executive 4/4
Officer The details of the appointment and remuneration of
Mr. Vishwas Katela Chief Investment 4/4 Directors has been hosted on the website of the Company
Officer and can be accessed through below mentioned web
Mr. Nagesh Pai Company Secretary 4/4 link: https://www.hdfcpension.com/downloads/public-
& Compliance disclosures/HDFCPension-AppointmentOfDirectors-
Officer
TermsnConditions.pdf
Mr. Sunil Kapoor1 Chief Risk Officer 2/2
Note: PERFORMANCE EVALUATION OF THE BOARD OF

1
Mr. Sunil Kapoor was appointed as the member of the Committee with DIRECTORS
effect from July 17, 2020.
Pursuant to and in line with the requirements prescribed
under the Act, the Board carried out an annual evaluation
Nomination and Remuneration Committee
of its performance and that of its Committees and
During the FY2020-21, the meeting of Nomination and Individual Directors through online portal. Further, the
Remuneration Committee was held on April 23, 2020 with Independent Directors met separately, without the
presence of all the members i.e two Independent Directors attendance of non-Independent Directors and Members of
viz. Mr. AKT Chari and Mr. Prasad Chandran and Ms. Vibha the Management, and inter alia reviewed the performance
Padalkar, Non-Executive Director.
of Non-independent Directors, and the Board as a whole.
Corporate Social Responsibility Committee and

They further assessed the quality, quantity and timeliness
Stakeholder’s Relationship Committee
of flow of information between the Company Management
The provisions relating to constitution of Corporate Social and the Board. Overall, the Independent Directors expressed
Responsibility Committee and Stakeholder’s Relationship their satisfaction on the performance and effectiveness
Committee are not applicable to the Company. of the Board, all the Committees, non-Independent Board
Members, and on the quality, quantity and timeliness of
PARTICULARS REGARDING CONSERVATION flow of information between the Company Management
OF ENERGY, TECHNOLOGY ABSORPTION AND and the Board. The Independent Directors expressed their
FOREIGN EXCHANGE EARNINGS AND OUTGO
satisfaction with the conduct and efficiency of the Board
Conservation of Energy and Technology Absorption and Board Committees.
The Company has not incurred any expenditure on
conservation of energy, research and development or The Nomination & Remuneration Committee also undertook
towards technology absorption and therefore there are no an evaluation of Individual Director’s performance and
disclosures with respect to the same. expressed its satisfaction on performance of each Director.

Directors’ Report
The Board conducted the review of each Director's Note, 2012, M/s. Kirtane & Pandit LLP, Chartered
performance, Board as a whole and performance of Accountants were re-appointed as Statutory Auditors of
Committees of the Board, and expressed its satisfaction. the Company for second term of five consecutive years
There has been no material adverse observation or i.e. upto the conclusion of 13th AGM, at the AGM of the
conclusion, consequent to such evaluation and review. Company held on June 18, 2019.
PARTICULARS OF LOANS, GUARANTEES AND Statutory Auditor’s Report

INVESTMENTS The Statutory Auditors’ have not made any qualification,
During the FY2020-21, the Company has not given any reservation or adverse remark or disclaimer in their Audit
loans and guarantees which attract the provisions of Report for the FY2020-21. The Statutory Auditor of the
Section 186 of the Act. For the particulars of investments Company has not reported any instances of fraud or
made during the year, please refer Notes to Accounts. irregularities in the management of the Company during
the FY2020-21.
EMPLOYEES STOCK OPTION
During the FY2020-21, the Company has not granted stock Secretarial Auditor
options to any of its employees. However, the Key Managerial As a part of good governance practice, the Company
Personnel and Non Executive Directors of the Company voluntarily undertakes an audit of the secretarial records
have in the past been granted Stock Options by the Holding
and had engaged the services of Mr. DM Dalal, Practising
Company i.e. HDFC Life Insurance Company Limited.
Company Secretary, (CP No.: 8728) to conduct the audit for
the FY2020-21. The Auditor has not made any qualification,
During the year, there were no instances of loan granted by reservation or adverse remark or disclaimer in his
the Company to its employees. Secretarial Compliance Certificate.
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE ANNUAL RETURN

COMPANIES Pursuant to the amendments to Section 134(3)(a) and
During the FY2020-21, no company has become or ceased Section 92(3) of the Act read with Rule 12 of the Companies
to be subsidiary, associate or joint venture of the Company. (Management and Administration) Rules, 2014 notified by
The provisions regarding receipt of remuneration or Ministry of Corporate Affairs, the Company is not required to
commission from holding or subsidiary company are not enclose the extract of the Annual Return (Form MGT-9) to
applicable and hence, the disclosure under section 197(14) the Director’s Report. Instead the same can be hosted on the
of the Act is not required. website of the Company.
RELATED PARTY TRANSACTIONS In view of the above, the Annual Return of the Company for
As per Section 177, read with Section 188 of the Act, the the financial year ended March 31, 2021 is hosted on the
Audit Committee of the Board, at its quarterly meetings, website of the Company at https://www.hdfcpension.com/
approved the related party transactions. Since all the about-hdfc-pmc/public-disclosures/.
transactions entered into by the Company during FY2020-
21 have been on arms length basis and are in ordinary REMUNERATION OF DIRECTORS AND OTHER
course of business, the approval of the Board or the EMPLOYEES
Shareholders was not required.
The details of remuneration paid to Directors are mentioned
PUBLIC DEPOSITS in the below table:
The Company has not accepted any deposits within the Sr Name of Particulars of Remuneration Remuneration
meaning of Section 73 of the Act. No Director paid (`)
1 Mr. Prasad Sitting Fees for attending 1,50,000
AUDITORS Chandran meetings of the Board and
Statutory Auditor its Committees
2 Mr. AKT Chari 1,50,000
M/s. Kirtane & Pandit LLP, Chartered Accountants, (Firm 3 Mr. Sumit Bose 50,000
Registration No. 105215W/W100057) are presently the
Statutory Auditors of the Company. As per the provisions Ms. Vibha Padalkar and Mr. Parvez Mulla do not avail sitting
of the Act and PFRDA (Appointment of Auditors) Guidance fees from the Company.
6
Directors’ Report
RISK MANAGEMENT AND INTERNAL AUDIT • Advance Salary

FRAMEWORK
• Up skill programs
Risk Management
• Emotional & Mental well-being assistance
The Company firmly recognizes Risk Management as an
integral building block to proactively manage risks and
C. Admin Support
maximize opportunities related to achievement of strategic
objectives. The Risk Management function is primarily • lectrical mains have been shut down to ensure
E
responsible for identification, measurement, mitigation safety
and reporting of various risks applicable to its operations,
• Sanitization, fumigation and deep cleaning has
including financial risk, operational risk, information
been carried out wherever feasible
security risk and regulatory risk. Risk Management function
is also entrusted with implementation of risk management • plan is in place to ensure social distancing
A
framework and to periodically update the Risk Management between employees post the lockdown period
Committee on the risk profile and status. The Company has
put in place a Risk Management Policy ("Policy"), which D. Regulatory / Policy Compliance:
provides a base for the overall risk management framework
• PFRDA & NPS Trust - Circulars, directives,
of the Company.
dispensation, representation and regular
The Policy is reviewed by the Risk Management Committee correspondence with them
and the Board on a quarterly basis. • tatutory Audit of Financial Statements, Internal
S
Auditors, Concurrent Auditors of Investment
Investment involves allocation of NPS subscribers’ funds; Function- Provided remote access to pension
hence protection of the capital in the funds becomes one
systems, records, audit comfort on controls, etc
of the key risk management objectives and therefore,
the Company has also put in place a Board approved Stop
Internal Audit Framework and Internal Financial
Loss Policy. The Stop Loss Policy not only aids in rational
Controls
investment decision-making, but also helps to promote a
culture of accountability and transparency. The Company has in place an Internal Audit framework.
Internal Audit is conducted by an independent firm of
The Stop Loss Policy is reviewed by the Risk Management Chartered Accountants as per the scope and frequency
Committee and the Board atleast on an annual basis. of audit defined under PFRDA (Appointment of Internal
Auditor) Guidance Note, 2013 and Guidelines issued under
COVID-19 and Company’s resilience:
PFRDA (Point of Presence) Regulations, 2018. The overall
With the outbreak of Covid-19 pandemic, HDFC Pension audit process, factors in verifying compliance with process,
was able to manage the risks arising out of Covid-19
systems, regulatory guidelines and controls.
through timely execution of the Business Continuity
Management framework. Risk assessment was conducted
Internal Audit Reports are placed at every Audit Committee
for all the processes and information and cyber security
controls were evaluated. The Company has put in place a to discuss the audit observations, recommendations
Board approved Business Continuity Management ("BCM") along-with the Management action plan. The Internal
Policy which provides a framework for ensuring resilience Auditors and the Audit Committee track the status of
of business from threats and challenges. implementation of various recommendations/actionables.
The internal audits, in addition to ensuring compliance to
The BCM Policy is reviewed by the Risk Management policies, regulations, processes etc also test and report
Committee and the Board atleast on an annual basis. adequacy of internal financial controls with reference to
financial reporting/statements.
A. Technology Backbone:
• Enabled secure systems and infrastructure DIRECTORS’ RESPONSIBILITY STATEMENT
as part of Work from Home to minimize the In accordance with the requirements of Section 134 of the
disruptions caused by lockdown
Act, the Board of Directors state that:
• I T teams have provided supporting application
and infrastructure to enable remote working (i)
In the preparation of the annual accounts, the
applicable Accounting Standards have been followed,
B. Employee Health & Safety: along with proper explanation relating to material
• Regular advisories and information to employees departures (if any);

Directors’ Report
(ii)
Such accounting policies have been selected and Compliance with Secretarial Standards
applied consistently, and judgments and estimates The Company has complied with the applicable Secretarial
made that are reasonable and prudent, so as to give a Standards issued by the Institute of Company Secretaries
true and fair view of the Company’s state of affairs, as
of India for the FY2020-21.
on March 31, 2021, and of the Company’s profit for the
year ended on that date;
Maintenance of Cost Records
(iii) Proper and sufficient care has been taken for the On the basis of the nature of business, the Company is not
maintenance of adequate accounting records, required to maintain cost records.
in accordance with the provisions of the Act for
safeguarding the assets of the Company and
AWARDS AND RECOGNITION
for preventing and detecting fraud and other
irregularities; The Company was awarded with the Best Pension Fund
House by Business Today-Money Today Financial Services
(iv) The annual accounts have been prepared on a going Awards 2020-21.
concern basis; and
(v)
Proper systems have been devised to ensure APPRECIATION AND ACKNOWLEDGEMENT
compliance with the provisions of all applicable laws, The Board of Directors thank the subscribers, customers
and such systems were adequate and operating and business associates for reposing their trust in
effectively. the Company. The Directors also thank the Company’s
employees for their continued hard work, dedication and
MATERIAL ORDERS AFFECTING THE COMPANY commitment; and the Management for continuing success
No significant and material orders were passed by the of the business.
regulators or courts or tribunals impacting the going
concern status and Company’s operations in future. The Directors further take this opportunity to thank HDFC
Life Insurance Company Limited, the Sponsor Company
MATERIAL EVENTS FROM CLOSE OF FINANCIAL
for their continued support and guidance. The Directors
YEAR
would also like to thank the Pension Fund Regulatory and
There have been no material events impacting the finances Development Authority, National Pension System Trust
of the Company from the close of the FY2020-21, till the
and other Government Authorities for their co-operation,
date of this report.
support, advice and directions provided from time to time.
OTHER DISCLOSURES
Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013
On behalf of the Board of Directors
The Company is a wholly owned subsidiary of HDFC Life
For HDFC Pension Management Company Limited
Insurance Company Limited ("Holding Company"). The
Holding Company has formulated a policy under the
Sexual Harassment of Women at Workplace (Prevention, AKT Chari
Prohibition and Redressal) Act, 2013, which includes its Director
subsidiary company. Accordingly, the relevant compliances DIN: 00746153
with regard to constitution of Internal Complaints
Committee under the Sexual Harassment of Women at Vibha Padalkar
Workplace (Prevention, Prohibition and Redressal) Act, Date: April 22, 2021 Director
2013 have been ensured. Place: Mumbai DIN: 01682810
8
Independent Auditor’s Report
To the Members of HDFC Pension Management Company Limited
Report on the Audit of the Standalone for safeguarding of the assets of the Company and for
Financial Statements preventing and detecting frauds and other irregularities;
Opinion selection and application of appropriate implementation
and maintenance of accounting policies; making judgments
We have audited the Standalone Financial Statements
and estimates that are reasonable and prudent; and design,
of HDFC Pension Management Company Limited (“the
implementation and maintenance of adequate internal
Company”), which comprise the balance sheet as at
financial controls, that were operating effectively for
March 31, 2021, and the statement of Profit and Loss,
ensuring the accuracy and completeness of the accounting
and statement of cash flows for the year then ended, and
records, relevant to the preparation and presentation of
notes to the Standalone Financial Statements, including
the Standalone Financial Statement that give a true and
a summary of significant accounting policies and other
fair view and are free from material misstatement, whether
explanatory information.
due to fraud or error.
In our opinion and to the best of our information and
In preparing the Standalone Financial Statements,
according to the explanations given to us, the aforesaid
management is responsible for assessing the Company’s
Standalone Financial Statements give the information
ability to continue as a going concern, disclosing, as
required by the Act in the manner so required and give
applicable, matters related to going concern and using the
a true and fair view in conformity with the accounting
going concern basis of accounting unless management
principles generally accepted in India, of the state of affairs
either intends to liquidate the Company or to cease
of the Company as at March 31, 2021, and profit/loss, and
operations, or has no realistic alternative but to do so.
its cash flows for the year ended on that date.
Those Board of Directors are also responsible for overseeing
Basis for Opinion
the company’s financial reporting process.
We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under section 143(10) of Auditor’s Responsibilities for the Audit of the
the Companies Act, 2013. Our responsibilities under Standalone Financial Statements
those Standards are further described in the Auditor’s
Our objectives are to obtain reasonable assurance about
Responsibilities for the Audit of the Standalone Financial
whether the Standalone Financial Statements as a whole
Statements section of our report. We are independent
are free from material misstatement, whether due to fraud
of the Company in accordance with the Code of Ethics
or error, and to issue an auditor’s report that includes our
issued by the Institute of Chartered Accountants of India
opinion. Reasonable assurance is a high level of assurance
together with the ethical requirements that are relevant
but is not a guarantee that an audit conducted in accordance
to our audit of the Standalone Financial Statements
with SAs will always detect a material misstatement when
under the provisions of the Companies Act, 2013 and the
it exists. Misstatements can arise from fraud or error and
Rules thereunder, and we have fulfilled our other ethical
are considered material if, individually or in the aggregate,
responsibilities in accordance with these requirements
they could reasonably be expected to influence the
and the Code of Ethics. We believe that the audit evidence
economic decisions of users taken on the basis of these
we have obtained is sufficient and appropriate to provide a
Standalone Financial Statements.
basis for our opinion.
As a part of an audit in accordance with SAs, we exercise
Management’s Responsibility for the professional judgment and maintain professional skepticism
Standalone Financial Statements throughout the audit. We also:
The Company’s Board of Directors is responsible for the
matters stated in section 134(5) of the Companies Act, • Identify and assess the risks of material misstatement
2013 (“the Act”) with respect to the preparation of these of the Standalone Financial Statements, whether due
Standalone Financial Statements that give a true and to fraud or error, design and perform audit procedures
fair view of the financial position, financial performance, responsive to those risks, and obtain audit evidence
(changes in equity) and cash flows of the Company in that is sufficient and appropriate to provide a basis
accordance with the accounting principles generally for our opinion. The risk of not detecting a material
accepted in India, including the Accounting Standards misstatement resulting from fraud is higher than for
specified under section 133 of the Act. This responsibility one resulting from error, as fraud may involve collusion,
also includes maintenance of adequate accounting forgery, intentional omissions, misrepresentations, or
records in accordance with the provisions of the Act the override of internal control.

• Obtain an understanding of internal control relevant to (c) The Balance Sheet, the Statement of Profit and
the audit in order to design audit procedures that are Loss, and the Cash Flow Statement dealt with by this
appropriate in the circumstances. Under section 143(3) Report are in agreement with the books of account.
(i) of the Companies Act, 2013, we are also responsible (d) In our opinion, the aforesaid Standalone Financial
for expressing our opinion on whether the company Statements comply with the Accounting
has adequate internal financial controls system in place Standards specified under Section 133 of the Act,
and the operating effectiveness of such controls. read with Rule 7 of the Companies (Accounts)
Rules, 2014.
• Evaluate the appropriateness of accounting policies
(e)
On the basis of the written representations
used and the reasonableness of accounting estimates
received from the directors as on March 31, 2021
and related disclosures made by management.
taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2021
• Conclude on the appropriateness of management’s use
from being appointed as a director in terms of
of the going concern basis of accounting and, based Section 164 (2) of the Act.
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions (f) W
ith respect to the adequacy of the internal
that may cast significant doubt on the Company’s financial controls over financial reporting of
ability to continue as a going concern. If we conclude the Company and the operating effectiveness
of such controls, refer to our separate Report in
that a material uncertainty exists, we are required to
“Annexure A”.
draw attention in our auditor’s report to the related
disclosures in the Standalone Financial Statements (g) With respect to the other matters to be included
or, if such disclosures are inadequate, to modify in the Auditor’s Report in accordance with the
our opinion. Our conclusions are based on the audit requirements of Section 197 (16) of the Act, as
evidence obtained up to the date of our auditor’s report. amended: In our opinion and to the best of our
However, future events or conditions may cause the information and according to the explanations
Company to cease to continue as a going concern. given to us, the remuneration paid by the Company
to its directors during the year is in accordance
with the provisions of the Section 197 of the Act.
•
Evaluate the overall presentation, structure and
content of the Standalone Financial Statements, (h) With respect to the other matters to be included in
including the disclosures, and whether the Standalone the Auditor’s Report in accordance with Rule 11 of
Financial Statements represent the underlying the Companies (Audit and Auditors) Rules, 2014,
transactions and events in a manner that achieves fair in our opinion and to the best of our information
presentation. and according to the explanations given to us:
i. The Company does not have any pending
We communicate with those charged with governance litigations which would impact its financial
regarding, among other matters, the planned scope and position.
timing of the audit and significant audit findings, including
ii.
Company did not have any long-term
any significant deficiencies in internal control that we
contracts including derivative contracts for
identify during our audit.
which there were any material foreseeable
We also provide those charged with governance with losses.
a statement that we have complied with relevant iii.
There has been no delay in transferring
ethical requirements regarding independence, and to amounts, required to be transferred, to the
communicate with them all relationships and other Investor Education and Protection Fund by
matters that may reasonably be thought to bear on our the Company.
independence, and where applicable, related safeguards.
2. As required by the Companies (Auditor’s Report) Order,
Report on Other Legal and Regulatory 2016 (“the Order”), issued by the Central Government
Requirements of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the “Annexure B”,
1. As required by Section 143(3) of the Act, we report
a statement on the matters specified in paragraphs 3
that:
and 4 of the Order, to the extent applicable.
(a) We have sought and obtained all the information
and explanations which to the best of our For Kirtane & Pandit LLP,
knowledge and belief were necessary for the Chartered Accountants
purposes of our audit. Firm’s Registration No. 105215W/W100057
(b)
In our opinion, proper books of account as Mittal Shah
required by law have been kept by the Company Partner
so far as it appears from our examination of Place: Mumbai Membership No. 147370
those books. Date: April 25, 2021 UDIN: 21147370AAAAFO7126
10
Annexure A
to the Auditor’s Report – March 31, 2021
Report on the Internal Financial Controls under and maintained and if such controls operated effectively in
Clause (i) of Sub-section 3 of Section 143 of the all material respects.
Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over Our audit involves performing procedures to obtain audit
financial reporting of HDFC Pension Management Company evidence about the adequacy of the internal financial
Limited (“the Company”) as of March 31, 2021 in conjunction controls system over financial reporting and their operating
with our audit of the Standalone Financial Statements of effectiveness. Our audit of internal financial controls over
the Company for the year ended on that date. financial reporting included obtaining an understanding of
internal financial controls over financial reporting, assessing
Management’s Responsibility for Internal the risk that a material weakness exists, and testing and
Financial Controls evaluating the design and operating effectiveness of
The Company’s management is responsible for establishing internal control based on the assessed risk. The procedures
and maintaining internal financial controls based on the selected depend on the auditor’s judgment, including
internal control over financial reporting criteria established the assessment of the risks of material misstatement of
by the Company considering the essential components of the Standalone Financial Statements, whether due to
internal control stated in the Guidance Note on Audit of fraud or error.
Internal Financial Controls Over Financial Reporting issued
by the Institute of Chartered Accountants of India. These We believe that the audit evidence we have obtained is
responsibilities include the design, implementation and sufficient and appropriate to provide a basis for our audit
maintenance of adequate internal financial controls that opinion on the Company’s internal financial controls system
were operating effectively for ensuring the orderly and over financial reporting.
efficient conduct of its business, including adherence
to company’s policies, the safeguarding of its assets, Meaning of Internal Financial Controls over
the prevention and detection of frauds and errors, the Financial Reporting
accuracy and completeness of the accounting records, and A company's internal financial control over financial
the timely preparation of reliable financial information, as reporting is a process designed to provide reasonable
required under the Companies Act, 2013. assurance regarding the reliability of financial reporting
and the preparation of financial statements for external
Auditors’ Responsibility purposes in accordance with generally accepted
Our responsibility is to express an opinion on the Company's accounting principles. A company's internal financial
internal financial controls over financial reporting based control over financial reporting includes those policies and
on our audit. We conducted our audit in accordance with procedures that (1) pertain to the maintenance of records
the Guidance Note on Audit of Internal Financial Controls that, in reasonable detail, accurately and fairly reflect the
Over Financial Reporting (the “Guidance Note”) and the transactions and dispositions of the assets of the company;
Standards on Auditing, issued by ICAI and deemed to (2) provide reasonable assurance that transactions are
be prescribed under section 143(10) of the Companies recorded as necessary to permit preparation of financial
Act, 2013, to the extent applicable to an audit of internal statements in accordance with generally accepted
financial controls, both applicable to an audit of Internal accounting principles, and that receipts and expenditures
Financial Controls and, both issued by the Institute of of the company are being made only in accordance with
Chartered Accountants of India. Those Standards and authorizations of management and directors of the
the Guidance Note require that we comply with ethical company; and (3) provide reasonable assurance regarding
requirements and plan and perform the audit to obtain prevention or timely detection of unauthorized acquisition,
reasonable assurance about whether adequate internal use, or disposition of the company's assets that could have
financial controls over financial reporting was established a material effect on the financial statements.

Inherent Limitations of Internal Financial over financial reporting were operating effectively as at
Controls over Financial Reporting March 31, 2021, based on the internal control over financial
Because of the inherent limitations of internal financial reporting criteria established by the Company considering
controls over financial reporting, including the possibility the essential components of internal control stated in the
of collusion or improper management override of controls, Guidance Note on Audit of Internal Financial Controls Over
material misstatements due to error or fraud may occur Financial Reporting issued by the Institute of Chartered
and not be detected. Also, projections of any evaluation Accountants of India.
of the internal financial controls over financial reporting
to future periods are subject to the risk that the internal
financial control over financial reporting may become
inadequate because of changes in conditions, or that the
For Kirtane & Pandit LLP,
degree of compliance with the policies or procedures may
Chartered Accountants
deteriorate.
Firm’s Registration No. 105215W/W100057
Opinion Mittal Shah

In our opinion, the Company has, in all material respects, Partner
an adequate internal financial controls system over Place: Mumbai Membership No. 147370
financial reporting and such internal financial controls Date: April 25, 2021 UDIN: 21147370AAAAFO7126
12
Annexure B
to the Auditor’s Report – March 31, 2021
Annexure B referred to in paragraph 2 under ‘Report as at March 31, 2021 for a period of more than six
on Other Legal and Regulatory Requirements’ months from the date they become payable.
section of our Report of even date to the members of
(b) According to the information and explanations
HDFC Pension Management Company Limited on the
given to us and based on the records of the
accounts of the company for the year ended March
company examined by us, there are no dues of
31, 2021.
Income Tax, Goods & Service Tax and Customs
On the basis of such checks as we considered appropriate Duty which have not been deposited on account
and according to the information and explanations given to of any disputes for more than 6 months.
us during the course of our audit, we report that:
(viii)
In our opinion, and according to the information
On the basis of such checks as we considered appropriate and explanations given to us and based on our
and according to the information and explanations given to examination of the records, the Company has not
us during the course of our audit, we report that: defaulted in repayment of loans or borrowings to a
(i) (a)
The Company has maintained proper records financial institution, bank, government or dues to
showing full particulars, including quantitative debenture holders.
details and situation of fixed assets; (ix) In our opinion, and according to the information and
(b)
As explained to us, fixed assets have been explanations given to us, the Company does not raise
physically verified by the management at money by way of initial public offer or further public
regular intervals; as informed to us no material offer and term loans, other than for what it was
discrepancies were noticed on such verification; purposes.
(c)
According to the information and explanation (x) During the course of audit, we have not noticed any
given to us and on the basis of examination of the fraud by the company or any fraud on the company by
records of the Company, no immovable properties its officers or employees during the year.
are held in the name of the Company.
(xi) The Company has complied with Clause 3 (xi) of the
(ii) As explained to us no inventories held by the company. Order.
This clause is not applicable.
(xii) The nature of business is not related to Nidhi Company;
(iii) The Company has granted not any loans, secured or hence, this clause is not applicable.
unsecured to Companies, Firms, LLP or other parties
covered in the register maintained under Section 189 (xiii) In our opinion, and according to the information and
of the Companies Act, 2013. explanations given to us and based on our examination
of the records of the Company, all transactions with
(iv)
In respect of loans, investments, guarantees and related parties are in compliances with the section 177
security, provisions of Section 185 and section 186 of & 188 of the Companies Act, 2013 and details have
the Companies Act, 2013 have been complied with. been disclosed in the Standalone Financial Statements
(v) The Company has not accepted any deposits from as required by the applicable Accounting Standards.
the public covered under Section 73 to 76 of the
Companies Act, 2013. (xiv) The Company has not made any preferential allotment
(vi) As informed to us, the Central Government has not or private placement of shares or fully or partly
prescribed maintenance of cost records under sub- convertible debentures during the year.
Section (1) of Section 148 of the Act.
(xv)
The company has not entered into any non-cash
(vii) According to the information and explanations given transactions with directors or persons connected
to us and based on the records of the company with him.
examined by us,
(a)
The company has generally been regular in (xvi) The Company is not required to be registered under
depositing the undisputed statutory dues, including section 45-IA of the Reserve Bank of India Act, 1934.
Provident Fund, Employees’ State Insurance,
Income-tax, Goods & Service Tax, Custom Duty and For Kirtane & Pandit LLP,
other material statutory dues, as applicable, with Chartered Accountants
the appropriate authorities in India; Firm’s Registration No. 105215W/W100057
According to the information and explanation given
to us, no undisputed amount payable in respect Mittal Shah
of Provident Fund, Employees’ State Insurance, Partner
Income-tax, Goods & Service Tax, Custom Duty Place: Mumbai Membership No. 147370
and other material statutory dues were in arrears Date: April 25, 2021 UDIN: 21147370AAAAFO7126

Balance Sheet
as at March 31, 2021
(` ‘000)
Particulars Note As at As at
March 31, 2021 March 31, 2020
EQUITY AND LIABILITIES
SHAREHOLDERS' FUNDS
Share capital 3 280,000 280,000
Reserves and surplus 4 (20,234) (21,094)
259,766 258,906
NON-CURRENT LIABILITIES
Long-term borrowings - -
Other long-term liabilities - -
Long-term provisions - -
CURRENT LIABILITIES
Short-term borrowings - -
Trade payables 5
(a) total outstanding dues of micro enterprises and small enterprises - -
(b) total outstanding dues of creditors other than micro enterprises and - -
small enterprises
Other current liabilities 6 95,474 66,306
Short-term provisions 7 13,923 10,968
369,163 336,180
ASSETS
NON-CURRENT ASSETS
Property, Plant and Equipment
(i) Tangible assets 8 944 1,380
(ii) Intangible assets 9 1,394 875
(iii) Capital work-in-progress 9 588 -
Non-current investments 10 241,997 241,029
Deferred tax assets (net) - -
Long-term loans and advances 11 1,108 3,741
Other non-current assets 12 2,294 2,150
CURRENT ASSETS
Current investments 13 12,418 7,604
Trade receivables 14 3,449 1,847
Cash and cash equivalents 15 95,381 70,576
Short-term loans and advances 16 1,606 2,116
Other current assets 17 7,984 4,862
369,163 336,180
See accompanying notes forming part of the financial statements
In terms of our report of even date attached.
For Kirtane and Pandit LLP For and on behalf of the Board of Directors
Chartered Accountants HDFC Pension Management Company Limited
Firm Registration No. 105215W/W100057
Mittal Shah Vibha Padalkar Parvez Mulla

(Partner) (Director) (Director)
Membership No. 147370 (DIN :01682810) (DIN :08026994)
Sumit Shukla Fagun Pancholi

(Chief Executive Officer) (Chief Financial Officer)
Place- Mumbai Nagesh Pai

Date- April 22, 2021 (Company Secretary)
14
Statement of Profit and Loss Account
for the year ended March 31, 2021
(` ‘000)
Particulars Note For the year ended For the year ended
March 31, 2021 March 31, 2020
INCOME
Revenue from operations
- Investment management fees 18 11,945 6,793
- POP Income 18,981 6,148
Other income 19 24,069 22,054
Total revenue 54,995 34,995
EXPENSES
Employee benefit expenses 20 32,422 28,304
Establishment expenses 21 6,336 3,557
Other expenses 22 14,427 10,530
Depreciation and amortisation 23 791 683
Total expenses 53,976 43,074
Profit/(Loss) before exceptional and extraordinary items and tax 1,019 (8,079)
Exceptional items - -
Profit/(Loss) before extraordinary items and tax 1,019 (8,079)
Extraordinary items - -
Profit/(Loss) before tax 1,019 (8,079)
Tax expense 159 -
Profit/(Loss) for the year from continuing operations 860 (8,079)
Profit/(Loss) from discontinuing operations - -
Tax expense of discontinuing operations - -
Profit/(Loss) for the year from discontinuing operations (after tax) - -
Profit/(Loss) for the year 860 (8,079)
Earnings per equity share (face value ` 10 each) 24
Basic (`) 0.03 (0.29)
Diluted (`) 0.03 (0.29)




Cash Flow Statement
for the year ended March 31, 2021
(` ‘000)
Particulars For the year ended For the year ended
March 31, 2021 March 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(Loss) before tax 1,019 (8,079)
Adjustments for:
Depreciation and amortisation 791 683
Interest income on investments (20,341) (21,141)
Profit on sale of investments (3,800) (618)
Profit on sale of fixed assets - (76)
Amortisation of discount/(premium) on investments 113 (189)
Movement in working capital
(Increase)/Decrease in trade receivable, loans and advances & other current 1,983 (1,846)
assets
Increase/(Decrease) in trade payables, other current liabilities & short-term 2,526 4,333
provisions
Income taxes received as refund / (paid) - net (309) (113)
NET CASH FROM OPERATING ACTIVITIES (18,018) (27,046)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Fixed assets (588) (1,743)
Sale of Fixed assets - 116
Purchase of investments (50,395) (40,040)
Sale of investments 52,609 50,000
Maturity proceeds of Fixed Deposit - 5,000
Income received on investment 17,314 24,329
NET CASH FROM INVESTING ACTIVITIES 18,940 37,662
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of share capital - -
NET CASH USED IN FINANCING ACTIVITIES - -
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 922 10,616
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 13,626 3,010
CASH AND CASH EQUIVALENTS AT THE END OF YEAR 14,548 13,626
Components of cash and cash equivalents at end of the year:
Bank balances-current accounts 2,130 6,022
Money market instruments (Refer note number 13) * 12,418 7,604
Total cash and cash equivalents 14,548 13,626
Reconciliation of cash and cash equivalents with cash and bank balances as
per Balance Sheet:
Cash and cash equivalents 14,548 13,626
Money market instruments (Refer note number 13) * (12,418) (7,604)
Payable to NPS trust 93,251 64,554
Cash and bank balances as per Balance Sheet 95,381 70,576
* Money market instruments at cost



16
Notes Forming Part of the Financial Statements
1 Corporate information 2.3 Revenue recognition

HDFC Pension Management Company Limited (a) Investment management fees
('the Company'/'HDFC Pension') is a wholly owned
Investment management fees are recognised
subsidiary of HDFC Life Insurance Company Limited on an accrual basis on daily closing assets under
(or 'HDFC Life'). The Company is a public limited
management across respective schemes under
company domiciled in India and incorporated under
pension funds. The investment management fees
the provisions of the erstwhile Companies Act, 1956.
are presented net of Goods and Services Tax in the
The Company was incorporated on June 20, 2011 with
Statement of Profit & Loss Account.
Registration Number U66020MH2011PLC218824
with the purpose of managing pension fund business
(b) POP income
under the National Pension System, to which HDFC
Life acts as the Sponsor. The Company was granted OP income includes account opening fees,
P
licence to undertake pension management under contribution processing fees and persistency income.
the National Pension System by the Pension Fund
i) Account opening fees are due and recognised
Regulatory and Development Authority ('PFRDA') on
on generation of Permanent retirement account
April 23, 2013 and is in business from August 2013.
number (PRAN).
The Company was granted Certificate of Registration ii) Contribution Processing fees are recognised on
dated February 13, 2019 (Registration code: POP receipt of contribution from the customer.
246022019) by the PFRDA for acting as Point of
Presence (PoP) under National Pension System (NPS), iii) Persistency Income is recognised on subscriber
to provide PoP – NPS – Distribution and Servicing accounts active for more than six months
services for public at large. POP Income are presented net of Goods and Services
Tax in the Statement of Profit & Loss Account.
2 Significant accounting policies
2.1 Basis of preparation of financial statements (c) Other income

These financial statements for the year ended Other Income represents income earned from the
March, 31, 2021 are prepared under the historical activities incidental to the business and is recognised
cost convention, on an accrual basis of accounting in when the right to receive the income is established as
accordance with the accounting principles generally
per the terms of the contract.
accepted in India (Indian GAAP), and in compliance
with the Accounting Standards notified under Section Interest income on debt investments is recognised on
133 of the Companies Act, 2013, and amendments an accrual basis. Amortisation of premium or accretion
and rules made thereto, to the extent applicable. of discount on debt investments is recognised over
Accounting policies have been consistently applied to the period of maturity / holding of the investments on
the extent applicable and in the manner so required.
a straight line basis.
2.2 Use of estimates Dividend income is recognised on the "ex-dividend"

The preparation of the financial statements in conformity date in case of listed equity shares and in case of
with the Indian GAAP requires that the Company’s unlisted equity shares when right to receive dividend
management makes estimates and assumptions that is established.
affect the reported amounts of income and expenses
for the year, reported balances of assets and liabilities Profit or loss on sale of debt investments is calculated
and disclosures relating to contingent liabilities as on as the difference between the net sale proceeds and
the date of the financial statements. The estimates the weighted average amortised cost as on the date
and assumptions used in the accompanying financial of sale.
statements are based upon management’s evaluation
of the relevant facts and circumstances upto and as of Profit or loss on sale of equity shares/mutual fund
the date of the financial statements. Actual results could units is calculated as the difference between the net
differ from the estimates. Any revision to the accounting sale proceeds and the weighted average cost as on
estimates is recognised prospectively. the date of sale.

2.4 Investments * For these class of assets, based on internal assessment and
internal technical evaluation carried out by the management, the
Investments maturing within twelve months from management believes that the useful lives as given above best
the Balance Sheet date and investments made with represent the period over which management expects to use these
the specific intention to dispose them within twelve assets. Hence, the useful lives for these assets are different from the
months from the Balance Sheet date are classified useful lives as prescribed under Part C of Schedule II of the Companies
Act, 2013.
as current investments. All other investments are
classified as long term investments and disclosed as ^ For these class of assets, based on internal assessment carried out
non-current investments. Current investments are by the management, the residual value is considered to be nil.
valued at lower of cost or fair value determined for Leasehold improvements are amortised over the lock
each individual investment. Long term investments in period of the leased premises subject to a maximum
are valued at cost, subject to amortisation of of five years.
premium or accretion of discount, over the period of
maturity/holding, on a straight line basis. Provision Intangible assets
for diminution in value is made to recognise a decline,
Intangible assets are stated at cost of acquisition,
other than temporary, in the value of the investments.
including any cost attributable for bringing the same
to its working condition for its intended use, less
2.5 Fixed assets and Depreciation / Amortisation
accumulated amortisation and impairment, if any.
The fixed assets are stated at cost less accumulated These are amortised over the useful life of the asset
depreciation/amortisation and impairment, if any. subject to maximum of four years.
Cost includes the purchase price and any cost directly
attributable to bring the asset to its working condition Any expenditure for support & maintenance of the
for its intended use. Fixed assets individually costing intangible asset is charged to the Statement of Profit
less than ` 5,000, are fully depreciated in the month & Loss Account.
of purchase. Subsequent expenditure incurred on
existing fixed assets is expensed out except where Capital work in progess
such expenditure increases the future economic Cost of assets as at the Balance Sheet date not ready
benefits from the existing assets. for its intended use as at such date are disclosed as

Any additions to the original fixed assets are capital work in progress.
depreciated over the remaining useful life of the
2.6 Impairment of assets
original asset.
The Company's management periodically assesses,
Depreciation/amortisation is charged on pro-rata basis using internal and external sources, whether there
from the month in which the asset is put to use and in is any indication that an asset may be impaired. If any
case of assets sold, up to the previous month of sale such indication of impairment exists, the recoverable
amount of such asset is estimated. An impairment
dvances given towards acquisition of fixed assets
A
loss is recognised in the Statement of Profit and
are disclosed under 'Long term loans and advances' in
Loss where the carrying value of an asset exceeds its
Balance Sheet.
recoverable amount. The recoverable amount is the
Tangible assets higher of the asset's net selling price and value in use.
Value in use which is the present value of future cash
Depreciation on tangible assets is provided on the
flows expected to arise from the continuing use of
straight-line method over the useful lives of assets
the asset and its ultimate disposal. When there is an
estimated by the Management.
indication that an impairment loss recognised for an
asset in earlier accounting periods no longer exists or
Useful lives of the tangible assets are as follows:
may have decreased, such reversal of impairment loss
Asset class Useful life of is recognised in the Statement of Profit & Loss Account.
assets (in years)
Information technology 3 2.7 Employee benefits
equipment-End user devices ^ a) S
hort term employee benefits: All employee
Information technology equipment- 4 benefits payable within twelve months of rendering
Non end user devices*^ the service are classified as short-term employee
Furniture & Fixtures*^ 5 benefits. Benefits such as salaries and bonuses,
Office Equipment^ 5 short term compensated absences and contribution
Motor Vehicles*^ 4 towards Employee Deposit Linked Insurance are
18
recognised in the period in which the employee lease payments at the inception of the lease, whichever
renders the related service. All short term employee is lower.
benefits are accounted for on an undiscounted basis.
Operating leases
b) Post employment benefits Leases, where lessor effectively retains substantially all
Defined contribution plan: the risks and benefits of ownership over the lease term
are classified as operating leases. Rental payments
The Company's Provident Fund Scheme (Company
under operating leases including committed increase
contribution) and National Pension Scheme (Company
in rentals are recognised as an expense, on a straight
contribution) is a defined contribution plan. The
line basis, over the non cancellable lease period.
contributions paid/payable towards the fund are
charged to the Statement of Profit & Loss Account
2.9 Taxation
during the year in which the employee renders the
related service on an undiscounted basis. a) Direct tax
i) Provision for current tax
Defined benefit plan: Provision for income tax is made in accordance
with the provisions of the Income Tax Act, 1961
The Company's Gratuity plan is an unfunded defined
as applicable to the company carrying on pension
benefit plan. The gratuity benefit payable to the
business.Where Company has provided for tax
employees of the Company is recognised as per the
liability based on Minimum alternate tax (MAT)
provisions of ‘The Payment of Gratuity Act, 1972.
provisions, MAT credit is recognised as an asset
The present value of the obligation under such
only when and to the extent there is convincing
defined benefit plan is determined based on the
evidence that the company will pay normal
actuarial valuation at the Balance Sheet date using
income tax during the specified period.
the projected unit credit method which considers
each period of service as giving rise to an additional ii) Deferred tax
unit of benefit entitlement and measures each unit
In accordance with the requirements of
separately to build up the final obligation. Provision for
Accounting Standard (AS) - 22, “Accounting for
gratuity is accounted for taking into consideration the
Taxes on Income”, issued by the Institute of
actuarial valuation of plan obligation as at the Balance
Chartered Accountants of India (ICAI), deferred
Sheet date, in accordance with Accounting Standard
tax asset is recognised only to the extent that
(AS) 15 (Revised), ‘Employee Benefits’, issued by the there is reasonable certainty that sufficient
Institute of Chartered Accountants of India (ICAI). taxable income will be available against which
such deferred tax asset can be realised. With
Actuarial gains / losses, if any, due to experience respect to carry forward of losses/unabsorbed
adjustments and the effects of changes in actuarial depreciation under the Income Tax Act, 1961,
assumptions are recognised in the Statement of Profit deferred tax asset is recognised only to the extent
& Loss Account, in the year in which they arise. that there is a virtual certainty supported by
convincing evidence that future taxable income
c) Other long term employee benefits will be available against which the deferred tax
The obligation for long term employee benefits such asset can be realised.
as accumulated long term compensated absences, are
accounted for based on actuarial valuation determined b) Indirect tax
using the projected unit credit method. The Company claims credit of Goods and Services
Tax (‘GST’) on input services, which is set off against
Actuarial gains/losses, if any, due to experience GST on output services. As a matter of prudence,
adjustments and the effects of changes in actuarial unutilised credits towards GST on input services are
assumptions are recognised in the Statement of Profit carried forward under the head "Long-term loans and
& Loss Account, in the year in which they arise. advances" in the Balance Sheet, wherever there is
reasonable certainty of utilisation.
2.8 Leases
Finance leases 2.10 Provisions, contingent liabilities and
contingent assets
Leases under which the Company assumes substantially
all the risks and rewards of ownership are classified as Provisions are recognised in respect of present
finance leases. Such assets acquired are capitalised at obligations that arise as a result of past events where
fair value of the asset or present value of the minimum it is probable that an outflow of resources will be

required to settle the obligation and a reliable estimate equity shares outstanding during the year. For the
of the amount of obligation can be made. Provisions purpose of calculating diluted earnings per share,
are determined on the basis of best estimate of the the net profit or loss for the year attributable to
outflow of economic benefits required to settle equity shareholders and the weighted average
the obligation at the Balance Sheet date. Where no number of shares outstanding during the year are
reliable estimate can be made, a disclosure is made as adjusted for the effects of all dilutive potential
contingent liability. equity shares. Potential equity shares are treated as
dilutive only if their conversion to equity shares would
Contingent liabilities are disclosed in respect of ; decrease the net profit per share from continuing
ordinary operations.
a) possible obligations that arise from past events,
the existence or otherwise of which will be 2.12 Cash flow statement
confirmed by the occurrence or non-occurrence
Cash flows are reported using the indirect method
of one or more uncertain future events, not
as explained in Accounting Standard (AS) - 3, "Cash
wholly within the control of the Company or
Flow Statements", issued by the Institute of Chartered
b) present obligation that arises from past events, Accountants of India (ICAI), whereby profit before tax
but is not recognised because there is remote is adjusted for the effects of transactions of non-cash
probability that an outflow of resources nature, any deferrals or accruals of past or future
embodying economic benefits will be required to operating cash receipts or payments, and items of
settle the obligation or a reliable estimate of the income or expenses associated with investing or
amount of the obligation cannot be made. financing cash flows. The cash flows from operating,
investing and financing activities of the Company are
Contingent assets are neither accounted nor disclosed. separately presented.
2.11 Earnings per equity share 2.13 Cash and cash equivalents
I n accordance with the requirement of Accounting ash comprises cash, cheques in hand and bank
C
Standard (AS) 20, “Earnings Per Share”, issued by the balances. Cash equivalents comprise money market
Institute of Chartered Accountants of India (ICAI), instruments including highly liquid mutual funds and
basic earnings per share is calculated by dividing the highly liquid investments that are readily convertible
net profit or loss for the year attributable to equity into measurable amounts of cash and which are
shareholders by the weighted average number of subject to insignificant risk of change in value.
20
3 Share capital
The Company is a wholly owned subsidiary of HDFC Life Insurance Company Limited
Details of outstanding share capital are as given below:

(` ‘000)
Particulars As at As at
March 31, 2021 March 31, 2020
Authorised capital
30,000,000 Equity shares of ` 10 each 300,000 300,000
(Previous year: 30,000,000 Equity shares of ` 10 Each)
300,000 300,000
Issued, subscribed and fully paid-up capital
28,000,000 Equity shares of ` 10 each 280,000 280,000
(Previous year: 28,000,000 Equity shares of ` 10 Each)
280,000 280,000
The Company has only one class of shares referred to as equity shares having face value of ` 10 each. Each holder of
equity shares is entitled to one vote per share.
he holders of equity shares are entitled to dividend, if any, proposed by the Board of Directors and approved by
T
shareholders in the Annual General Meeting.
Reconciliation of number of shares outstanding at the beginning and at the end of the year, is as given below:
Particulars As at March 31, 2021 As at March 31, 2020

Number of (` '000) Number of (` '000)
shares held shares held
Equity shares outstanding as at the beginning of the year 28,000,000 280,000 28,000,000 280,000
Equity shares issued during the year - - - -
Equity shares outstanding as at the end of year 28,000,000 280,000 28,000,000 280,000
Details of each shareholder, holding more than 5 percent shares in the Company are as given below:
Particulars As at March 31, 2021 As at March 31, 2020

Number of Percentage Number of Percentage
Shares held of holding Shares held of holding
HDFC Life Insurance Company Ltd along with it's nominees 28,000,000 100% 28,000,000 100%
4 Reserves and surplus

(` ‘000)
March 31, 2021 March 31, 2020
Profit & Loss account
Opening balance (21,094) (13,015)
Add:- Net Profit/(Loss) during the year as per the Statement of Profit & Loss Account 860 (8,079)
Closing balance (20,234) (21,094)

5 Trade payables
(` ‘000)
March 31, 2021 March 31, 2020
(a) Total outstanding dues of micro enterprises and small enterprises - -
(b) Total outstanding dues of creditors other than micro enterprises and small - -
enterprises
Total - -
6 Other current liabilities

(` ‘000)
March 31, 2021 March 31, 2020
Payable to holding company 874 -
Payable for statutory dues 1,349 979
Payable to others - 773
Payable to NPS Trust 93,251 64,554
Total 95,474 66,306
7 Short-term provisions
(` ‘000)
March 31, 2021 March 31, 2020
Provision for employee benefits 11,452 8,784
Provision for expenses 2,471 2,184
Total 13,923 10,968
22
8 Tangible assets
(` ‘000)
Particulars Cost / Gross Block Depreciation Net Block
As at Additions Deductions As at As at For the year On Sales / As at As at As at
April 01, March 31, April 01, ended March Adjustments March 31, March 31, March 31,
2020 2021 2020 31, 2021 2021 2021 2020
Land - - - - - - - - - -
Buildings - - - - - - - - - -
Computer hardware - Non end user devices 2,500 - - 2,500 2,500 - - 2,500 - -
Computer hardware - End user devices 259 - - 259 259 - - 259 - -
Furniture and fixtures 111 - - 111 111 - - 111 - -
Office equipment 144 - - 144 144 - - 144 - -
Vehicles 1,743 - - 1,743 363 436 - 799 944 1,380
Leasehold improvements 26 - - 26 26 - - 26 - -
Total 4,783 - - 4,783 3,403 436 - 3,839 944 1,380
Grand Total 4,783 - - 4,783 3,403 436 - 3,839 944 1,380
Previous year 3,997 1,743 957 4,783 3,937 383 917 3,403 1,380
9 Intangible assets
(` ‘000)
Particulars Cost / Gross Block Depreciation Net Block
As at Additions Deductions As at As at For the year On Sales / As at As at As at
April 01, March 31, April 01, ended March Adjustments March 31, March 31, March 31,
2020 2021 2020 31, 2021 2021 2021 2020
Intangibles (Computer software) 8,920 874 - 9,794 8,045 355 - 8,400 1,394 875
Capital work in progress - 588 - 588 - - - - 588 -
Grand Total 8,920 1,462 - 10,382 8,045 355 - 8,400 1,982 875
Previous year 8,920 - - 8,920 7,745 300 - 8,045 875
Annual Report 2020-21

23
10 Non-current investments
(` ‘000)
March 31, 2021 March 31, 2020
Investments in Government Securities
- 8.32% GOI, August 2, 2032 --- 500,000 units of face value ` 100 each 48,363 48,219
(Previous year 500,000 units of face value of ` 100 each)
- 9.20% GOI, September 30, 2030 --- 500,000 units of face value ` 100 each 50,655 50,724
- 9.23% GOI, December 23, 2043 --- 500,000 units of face value ` 100 each 52,636 52,752
Investments in Non convertible debentures (NCD) - Infrastructure Bonds - 49,301
- 8.90% Power Finance Corporation Limited, March 18, 2023 - 50 units of face
value ` 1,000,000 each (Previous year 50 units of face value of ` 1,000,000
each)
Investments in Non convertible debentures (NCD) - Private Corporate Bonds 50,323 -
- 7.70% L&T, April 28, 2025 - 50 units of face value ` 1,000,000 each
Investments in Non convertible debentures (NCD) - Private Corporate Bonds 40,020 40,033
- 7.60% LIC Housing Finance Co. Ltd. 22-Nov-2022- 40 units of face value
` 1,000,000 each
Total 241,997 241,029
Aggregate value of quoted investments 241,997 241,029

Market value of quoted investments 273,850 272,511
11 Long-term loans and advances

(` ‘000)
March 31, 2021 March 31, 2020
Loans - -
Others
Unutilised goods and services tax input credit 248 3,057
Advance tax paid -Tax deducted at source (net of provision for tax) 860 684
Total 1,108 3,741
12 Other non-current assets

(` ‘000)
March 31, 2021 March 31, 2020
Bank Deposits with maturity of more than 12 months (Refer note no.30) 2,000 2,000
Interest accrued on Fixed deposit 294 150
Total 2,294 2,150
24
13 Current investments
(` ‘000)
March 31, 2021 March 31, 2020
Investment in Mutual Funds - valued at lower of cost or market value
(a) Quoted - -
(b) U
nquoted - ICICI Prudential Liquid - Direct Plan-Growth 12,418 7,604
41148.042 units of ` 301.7897 each (Previous Year 26230.435 units of ` 289.9108
each)
Total 12,418 7,604
Aggregate value of unquoted investments 12,418 7,604

Market value of unquoted investments* 12,538 7,702
* Market value of ICICI Prudential Liquid Mutual Fund is the net asset value as declared by ICICI Prudential Mutual Fund
14 Trade receivables
(` ‘000)
March 31, 2021 March 31, 2020
Outstanding for a period exceeding six months from the date they are due for payment
- Trade Receivables considered good - Unsecured - -
Trade Receivables considered good - Unsecured 3,449 1,847
Total 3,449 1,847
15 Cash and cash equivalents

(` ‘000)
March 31, 2021 March 31, 20120
Cash on hand - -
Balances with banks:
-In current accounts 95,381 70,576
Other bank balances
-Deposits with maturity of less than 12 months - -
-Deposits with maturity of more than 12 months 2,000 2,000
Sub-Total 97,381 72,576
Amount disclosed under other non-current assets (Refer note no.12) (2,000) (2,000)
Total 95,381 70,576

16 Short-term loans and advances
(` ‘000)
March 31, 2021 March 31, 2020
Loans - -
Others
Prepaid expenses 1,606 1,620
Others - 496
Total 1,606 2,116
17 Other current assets

(` ‘000)
March 31, 2021 March 31, 2020
Bank Deposits with maturity of less than 12 months (Refer note no.30) - -
Interest accrued on investments 6,599 3,210
Receivable from pension schemes (Goods and Services Tax) 675 369
Recievable from NPS Trust 710 1,283
Total 7,984 4,862
18 Investment management fees

Investment management fees @ 0.01% (Previous Year @0.01%) per annum is charged in accordance with the
terms of the "Investment Management Agreement"(IMA) entered into with the National Pension System (NPS) Trust
amounting to ` 11,945 thousands (Previous Year ` 6,793 thousands).
19 Other income
(` ‘000)
March 31, 2021 March 31, 2020
Investment income on current investments
Interest income - (92)
Profit on sale of investments 3,800 618
Investment income on long-term investments
Interest income 20,340 21,233
Amortisation of discount/(premium) on investments (113) 189
Profit on sale of fixed assets - 76
Interest on income tax refund 42 30
Total 24,069 22,054
20 Employee benefit expenses

(` ‘000)
March 31, 2021 March 31, 2020
Salaries and bonuses 31,164 27,051
Contributions to Provident fund and National Pension Scheme 1,258 1,253
Total 32,422 28,304
26
21 Establishment expenses
(` ‘000)
March 31, 2021 March 31, 2020
Shared Service Expenses 2,140 960
PFRDA licence fees 4,133 2,582
Other expenses 63 15
Total 6,336 3,557
22 Other expenses
(` ‘000)
March 31, 2021 March 31, 2020
Brokerage expenses 8,920 6,786
Payment to auditors :
- as auditor 150 150
- others 2 -
Directors sitting fees 350 280
Legal & professional charges 1,854 1,507
Information technology support expenses 226 207
Sales & Marketing expenses 1,402 -
Travel expenses 96 384
Membership & subscription 970 931
General office expenses 56 73
Miscellaneous expenses 401 212
Total 14,427 10,530
23 Depreciation and amortisation

(` ‘000)
March 31, 2021 March 31, 2020
Depreciation on tangible assets 436 383
Amortisation of intangible assets 355 300
Total 791 683
24 Earnings per share

(` ‘000)
March 31, 2021 March 31, 2020
Net Profit/(Loss) as per Statement of Profit & Loss (`'000) 860 (8,079)
Weighted average number of equity shares for Basic earnings per share 28,000,000 28,000,000
Basic earnings per share (`) 0.03 (0.29)
Weighted average number of equity shares for Diluted earnings per share 28,000,000 28,000,000
Diluted earnings per share (`) 0.03 (0.29)
Nominal value of share (`) 10.00 10.00

25 Tax provision
a) Direct tax
i) Provision for current tax
The Company has made a provision for Minimum Alternate Tax (MAT) u/s 115JB of the Income Tax Act, 1961 of
` 159 thousands (Previous Year ` Nil) in the Statement of Profit & loss Account for the year ended March 31,
2021 in accordance with the rules and regulations there under, as applicable to the Company. In the absence of
convincing evidence with respect to its utilisation, MAT credit entitlement for the year has not been recognised.
ii) Deferred tax

With reference to the carry forward of losses /unabsorbed depreciation, in view of lack of virtual certainty
supported by convincing evidence in the business, that future taxable income will be available against which
the deferred tax asset can be realised, the Company has concluded that it would not be prudent to recognise
deferred tax asset during the year.
26 Leases
In accordance with the Accounting Standard (AS) - 19, "Leases", issued by the Institute of Chartered Accountants of
India (ICAI), the Company has no operating lease. In respect of the operating leases, the lease rentals debited to the
Statement of Profit & Loss Account are ` Nil (Previous Year ` Nil).
27 Related party & other group company disclosures

During the year ended March 31, 2021, the Company had transactions with related parties, which have been identified
by the management as per the requirements of the Accounting Standard (AS) 18, “Related Party Disclosures”, issued
by the Institute of Chartered Accountants of India (ICAI). Details of these related parties, nature of the relationship,
transactions entered into with them and the balances in related party accounts at year end, are as mentioned below:
A) Related party disclosures as per Accounting Standard 18

Related parties and nature of relationship
Nature of the relationship Name of Related Party

Ultimate holding company till November Housing Development Finance Corporation Limited (HDFC Ltd.)
13,2020/ Promoter of Holding company
w.e.f November 14, 2020
Holding company HDFC Life Insurance Company Limited
Fellow subsidiaries of holding company HDFC Asset Management Company Limited
(Upto November 13, 2020) HDFC Holdings Limited
HDFC Trustee Company Limited
HDFC Investments Limited
HDFC ERGO General Insurance Company Limited
HDFC Capital Advisors Limited
HDFC Sales Private Limited
HDFC Venture Capital Limited
HDFC Ventures Trustee Company Limited
HDFC Property Ventures Limited
HDFC Credila Financial Services Limited
HDFC Education and Development Services Private Limited
Griha Investments (Subsidiary of HDFC Holdings Ltd.)
Gruh Finance Ltd (Upto August 30, 2019/Associate of Ultimate Holding Company from
August 31, 2019 to October 17,2019)
Griha Pte Ltd., Singapore (Subsidiary of HDFC Investments Ltd.)
HDFC Ergo Health Insurance Ltd (w.e.f January 9,2020)
Fellow subsidiary of the company HDFC International Life and Re Company Limited
Entities over which control is exercised HDFC Investment Trust
(Upto November 13, 2020) HDFC Investment Trust II
Key management personnel Mr. Sumit Shukla
28
The following are the transactions between the Company and its related parties:
(` ‘000)
Particulars Description Total value of Receivable/ Total value of Receivable/
transactions for (payable) at transactions for (payable) at
the year ended March 31,2021 the year ended March 31,2020
March 31, 2021 March 31, 2020
HDFC Life Insurance Company Cost of resource 11,246 - 6,287 -
Limited utilisation
Payable towards - (874) - -
reimbursement for
intangible asset
HDFC ERGO General Insurance General insurance - - 9 -
Company Ltd.^ premium paid
Mr. Sumit Shukla Managerial 14,375 - 16,502 -
remuneration
^ Transactions with HDFC Ergo General Insurance Company Limited are shown only till November 13, 2020, as it ceases to be a related party from this
date.
28 Employee benefit obligations:

a) Defined contribution plans
During the year, the Company has recognised the following amounts in the Statement of Profit & Loss Account under
defined contribution plans:
(` ‘000)
March 31, 2021 March 31, 2020
Contribution to Employees Provident Fund 693 684
Contribution to National Pension Scheme 565 569
Total 1258 1253
b) Defined benefit plans

i) Gratuity:
a) General description of defined plan
Gratuity: This is an unfunded defined benefit plan. The plan provides for lumpsum payment to vested employees
either at retirement, or on death while in employment or on termination of employment. The benefit vests after five
years of continuous service.
b) The following tables set out the status of the Gratuity plan as at March 31, 2021:
The Company has recognised following amounts in the Balance Sheet:
(` ‘000)
March 31, 2021 March 31, 2020
Present value of defined benefit obligations at the end of the year 2,273 1,943
Fair value of plan assets at the end of the year - -
Liability recognised in Balance Sheet 2,273 1,943
The Company has recognised following amounts in the Statement of Profit & Loss Account for the year:
(` ‘000)
March 31, 2021 March 31, 2020
Current service cost 300 268
Interest cost 131 102
Expected return on plan assets - -
Actuarial (gains)/losses (101) 249
Total of above included in “Employee benefit expenses” in the Statement of Profit & 330 619
Loss Account

Reconciliation of opening and closing balances of present value of the defined benefit obligations:
(` ‘000)
March 31, 2021 March 31, 2020
Present value of defined benefit obligations at the beginning of the year 1,943 1,324
Current service cost 300 268
Interest cost 131 102
Actuarial (gains)/losses (101) 249
Benefits paid - -
Present value of defined benefit obligations at the end of the year 2,273 1,943
The amounts of the present value of the defined benefit obligation and experience adjustments arising on plan
liabilities for the current year and comparative previous years are as given below:
(` ‘000)
Gratuity (Unfunded Plan) FY 2020-21 FY 2019-20 FY 2018-19 FY 2017-18 FY 2016-17
Present value of the defined benefit obligation at 2273 1943 1324 952 777
the end of the year
Fair value of the plan assets at the end of the year NA NA NA NA NA
Unfunded liability transferred from Group Company NA NA NA NA NA
(Surplus) / Deficit in the plan NA NA NA NA NA
Experience adjustments on plan commitments - (112) 77 58 (53) 39
(Gain) / Loss
Experience adjustments on plan assets - Gain / NA NA NA NA NA
(Loss)
c) Principal assumptions for actuarial valuation of defined benefit obligation of gratuity plan as at the
Balance Sheet date:
March 31, 2021 March 31, 2020
Discount rate 6.75% 6.75%
Salary growth 8.00% for the first 8.00% for the first
year and 7.50% for year and 7.50% for
future years future years
Attrition rate 3.50% 3.50%
Mortality table Indian Assured Indian Assured
Lives Mortality Lives Mortality
(2012-14) (2012-14)
The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.
ii) Other long term employee benefits:

Long term compensated absences: This is an unfunded employee benefit. The liability for accumulated long term
absences is determined by actuarial valuation using projected unit credit method. The assumptions used for valuation
are as given below:
March 31, 2021 March 31, 2020
Discount rate 6.75% 6.75%
Salary growth 8.00% for the first 8.00% for the first
year and 7.50% for year and 7.50% for
future years future years
Attrition rate 3.50% 3.50%
Mortality table Indian Assured Indian Assured
Lives Mortality Lives Mortality
(2012-14) (2012-14)
30
29 Segment Reporting
As per Accounting Standard (AS) 17 on "Segment Reporting", issued by the Institute of Chartered Accountants of India
(ICAI), the company has two business segments - 'Pension fund business' and 'Point of Presence'. Since the business
operates in India only, there are no geographical segments.
(` ‘000)
Year ended March 31, 2021 (Audited)
Pension Fund Point of Unallocated Total
Management Presence corporate
overheads
Segment revenue 11,945 18,981 24,069 54,995
Segment results (10,313) 13,702 (2,529) 860
Depreciation/Amortisation 355 - 436 791
Segment assets 7,260 95,619 266,284 369,163
Segment liabilities (2,066) (94,653) (12,678) (109,397)
Significant non-cash expenses - - - -
(` ‘000)
Year ended March 31, 2020 (Audited)
Pension Fund Point of Unallocated Total
Management Presence corporate
overheads
Segment revenue 6,793 6,148 22,054 34,995
Segment results (9,304) 5,573 (4,348) (8,079)
Depreciation/Amortisation 300 - 383 683
Segment assets 4,757 67,201 264,222 336,180
Segment liabilities (2,717) (64,554) (10,003) (77,274)
Significant non-cash expenses - - - -
30 Encumbrances on assets: The assets of the Company are free from all encumbrances as at March 31, 2021, except
for Government Securities of ` 16,000 thousands (Previous year ` 9,000 thousands), as a security towards guarantee
issued by the bank on behalf of the Company in favour of the PFRDA and Bank Fixed deposit of ` 2000 thousands
(Previous year ` 2000 thousands) with lien in favour of PFRDA (Refer Note 31 on Contingent liabilities below).
31 Contingent liabilities
(` ‘000)
March 31, 2021 March 31, 2020
Bank guarantee given on behalf of Company:
Issued in favour of the PFRDA 16,000 9,000
Bank Fixed Deposit with lien in favour of PFRDA 2,000 2,000
Total 18,000 11,000
32 There are no dues payable to vendors covered by the Micro, Small and Medium Enterprises Development Act, 2006 as
at March 31, 2021 (Previous year ` Nil).
33 Previous year comparatives

Previous year amounts have been regrouped and reclassified wherever necessary to conform to current year's
presentation.
34 Impact of Covid on going concern

In light of the COVID-19’ pandemic outbreak, its continuous effect and information available upto the date of approval
of these financial statements, the Company has assessed the recoverability of receivables and Investments and has
found Nil impact on as on the date of the approval of these financial statements. Further, as on the date of approval of
these financial statements, the Company has found no impact on the going concern assumption and on the minimum
tangible networth as required by the PFRDA and it expects the networth to be above the minimum statutory limit. The
Company will continue to closely monitor any material changes in future economic conditions.

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HDFC Pension Management Company Limited

Directors’ Report ………………………………………………….........2

Independent Auditor’s Report…………………………….............9

Balance Sheet …………………………………………………….........14

Statement of Profit and Loss Account ……………………………15

Cash Flow Statement …………………………………………...........16

Notes to Financial Statements……………………………..........17

Mr. AKT Chari,

Mr. Sumit Bose,

Ms. Vibha Padalkar,

Mr. Parvez Mulla,

Chief Executive Officer

Chief Financial Officer

Company Secretary & Compliance Officer

Annual Report 2020-21 1

The above figures are extracted from the Financial

to deposit their voluntary contributions as well as Independent Directors

Annual Report 2020-21 3

Retirement by Rotation Audit Committee

Note: In order to ensure compliance with the provision of

Risk Management Committee Foreign Exchange Earnings and Outgo

Note: PERFORMANCE EVALUATION OF THE BOARD OF

Corporate Social Responsibility Committee and

Annual Report 2020-21 5

PARTICULARS OF LOANS, GUARANTEES AND Statutory Auditor’s Report

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE ANNUAL RETURN

RISK MANAGEMENT AND INTERNAL AUDIT • Advance Salary

Annual Report 2020-21 7

Annual Report 2020-21 9

Annual Report 2020-21 11

Opinion Mittal Shah

Annual Report 2020-21 13

In terms of our report of even date attached.

Mittal Shah Vibha Padalkar Parvez Mulla

Sumit Shukla Fagun Pancholi

Place- Mumbai Nagesh Pai

In terms of our report of even date attached.

Mittal Shah Vibha Padalkar Parvez Mulla

Sumit Shukla Fagun Pancholi

Place- Mumbai Nagesh Pai

Annual Report 2020-21 15

In terms of our report of even date attached.

Mittal Shah Vibha Padalkar Parvez Mulla

Sumit Shukla Fagun Pancholi

Place- Mumbai Nagesh Pai

2.2 Use of estimates Dividend income is recognised on the "ex-dividend"

Annual Report 2020-21 17

Annual Report 2020-21 19

Details of outstanding share capital are as given below:

Particulars As at March 31, 2021 As at March 31, 2020

Particulars As at March 31, 2021 As at March 31, 2020

4 Reserves and surplus

Annual Report 2020-21 21

6 Other current liabilities

Annual Report 2020-21

Aggregate value of quoted investments 241,997 241,029

11 Long-term loans and advances

12 Other non-current assets

Aggregate value of unquoted investments 12,418 7,604

2.2 Use of estimates Dividend income is recognised on the "ex-dividend"