Basis of Reporting
This year UTI Asset Management Company Limited marks the first step towards ourIntegrated Reporting <IR> journey. As one of our principal communication documentscatering to our stakeholders this Report contains comprehensive information on ouroperational and financial performances. It elaborates how these influence our strategicdirection resulting in our ability to create sustainable value.
Our approach to Reporting
Through this Report we aspire to provide our stakeholders with an overall depiction ofthe organisation's value creation ability using both financial and non-financialresources. The Report provides insights into our key strategies operating environmentmaterial issues emanating from our stakeholder engagements and their respective mitigationstrategies operating risks and opportunities governance structure and our approachtowards long-term sustainability.
Reporting Period Scope and Boundary
The reporting period for this Integrated Report is 1April 2020 to 31 March 2021. Itprovides an overview of our operations and business development activities. The Reportfurther covers information on our business segments in India and abroad and associatedactivities that enable short medium and long-term value creation.
Reporting Standards and Frameworks
In this Report we have attempted to bring in more transparency and accountabilitythrough additional disclosures and information following the guiding principles of theInternational Integrated Reporting Council (IIRC). The other statutory reports includingthe Director's Report Management Discussion and Analysis (MD&A) section theCorporate Governance Report and the Business Responsibility Report are in line with theCompanies Act 2013 (and the rules made thereunder) Securities Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations 2015 and the prescribedSecretarial Standards.
This Report has been broadly divided into three sections Corporate OverviewStatutory Report and Financial Statements.
We have introduced a reader-friendly navigation panel for the readers to easilyidentify and comprehend the section that they are reading at any given point. The tabhighlighted in BLUe connotes the current section that the reader is looking at.
It is encouraging that after the economic impact felt by countries across the world dueto Covid-19 induced pandemic most economies are gradually recovering with cautiousoptimism. Despite the adversities this crisis has made humanity come togetherhighlighting our cumulative spirit and resilience. Comeback from Setback' ispossibly an appropriate articulation of 202021.
What kept us engaged in 2020-21
To begin with I would like to highlight a landmark event wherein we were successfullylisted on both the National Stock Exchange (NSE) and the BSE. It marked the welcoming ofour valued retail and institutional shareholders into the Company. The NSE furtherincluded the equity shares of UTI AMC in the Nifty500 index w.e.f. from 1 March 2021.Besides as a testimony to the commitment of delivering value to our stakeholders we tookthe leap by coming out with our first public Annual Report in the form of an IntegratedReport <IR>. As a Company we have always believed in constantly evolving. And this<IR> is a part of our evolutionary journey. It is a step closer towards ourendeavour of maintaining integrity and transparency in all our communications. Our entryin this space is in line with the existing global trends of reporting.
Last year despite the challenges and the subsequent business impact we managed toprogress; determined and backed by our commitment of delivering increasing value for ourstakeholders. We restructured our sales and marketing functions focussed more ondistribution & digital outreach improved our fund performance incorporated ESGprocesses and strengthened credit research processes. Additionally we put in placepolicies and governance systems wherever required for a well-run listed Company.
The pandemic made us rethink our priorities. However our conviction of becoming a morerobust investment-led organisation is something we have never deviated from. We have beenprogressively continuing to do so supported by our rich 55+ years' legacy and lineage.The same was reflected in the performance of the Company during the year.
The capital markets crashed during the end of March 2020 the sentiments of whichcarried through early April 2020 marking an unprecedented downslide in recentmemory since the 2008 financial crisis. Despite the initial uncertainties the marketsremained buoyant with increased participation from retail and institutional investors. Itis encouraging that many international organisations like the International Monetary Fundand the World Bank have forecasted the GDP growth rates amongst the highest acrossemerging economies like ours. The strong rebound expected in private consumption andinvestment growth is likely to propel the economy forward.
Our response to Covid-19
Apart from strengthening ourselves as an organisation we focussed on three prioritiesduring the year smoother business conduct safeguarding our employeeswhile conducting business and ensuring that we provide our investors and partners withconvenient digital tools for them to transact seamlessly. We are continuously buildinginterfaces for fintech payments and other digital distribution platforms to ensureexcellent connectivity and a better customer experience. We have implemented digital KYCfor virtual interaction with new customers to ease our investors' and partners' investmentjourneys. These together with many other initiatives would enable us smoothly conductour business without getting much affected by the situation outside.
Active Equity and Debt Funds will drive the evolution of the MF industry. Despite thecyclicality of flows India is well and truly on track to ensure the financialisation ofsavings across the board while money is moving out of physical assets. Moreover mutualfunds are still much smaller than bank deposits signifying more room for growth. One ofthe emerging themes in Equity Funds will be increasing awareness about ESG Fundspassively managed ETFs and index funds. Exchange Traded Funds (ETFs) and Index Funds areyet to gain significant traction in India. However there is a positive trend towardsthese funds especially from the public sector fund mandates and first-time investorsinvesting through fintechs and digital platforms.
On a concluding note I would like to express my gratitude towards all our valuedstakeholders. They have continuously supported and encouraged our Company and theManagement and we are deeply thankful to them for the same. Your unwavering faithsupport and inspiration have helped us build a value-creating organisation. I would alsolike to express a special thanks to our employees. They have demonstrated exceptionalflexibility and adaptability in the wake of Covid-19. Lastly I extend my best wishes forall shareholders and their families during these testing times wishing everyone the bestof health.
Dinesh Kumar Mehrotra