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ICICI Securities Limited View CORPORATE STATUTORY FINANCIAL OVERVIEW REPORTS STATEMENTS 1 Contents Introduction Year in Review Our Approach to Report Profile 02 Our Capitals 10 Value Creation FY2021 in Summary 04 Message from the Chairperson 12 Business Model 30 Message from the MD & CEO 16 Operating Context 32 ICICI Securities Key Performance Indicators 20 Leadership Views 34 at a Glance COVID-19 Response 22 Stakeholder Engagement 38 Who we are 06 Strategy 40 Business Segments 08 Being there never mattered more Innovation 24 Digital 26 Customer Satisfaction 28 Being there never FY2021 highlights mattered more Financial Revenue FY2021 was an extraordinary year with overwhelming challenges in our operating environment. However, this was the time when our stakeholders, particularly our customers, needed us the most and we were ` 25,862 Mn there. We were prepared and proactive in serving the 50% requirements of our existing and new clients across all lines of businesses. Truly, being there never mattered PAT more for our clients and for us as well. Our customers needed the comfort and assurance of being able to ` 10,677 Mn access their investments at all times and benefit from right advice. We delivered on their expectations through various initiatives by 97% launching innovative products with a strong digital ecosystem to help them navigate the environment. Return on Equity Our teams served customers and we looked after their needs by ensuring a safe work environment, and security of employment. We also provided our teams the convenience and safety of working 70% from home, constantly checked on their wellbeing and helped them whenever needed. Serving the community through our various outreach initiatives was also a priority for us during the year. Operational Upholding our culture of transparency, we regularly informed our investors and other stakeholders about our performance, Total client assets adhered to a high level of corporate governance and a strong risk- management framework. Our scenario analysis and risk mapping ensured that we were able to capitalise on the market opportunity ` 3.8 Tn without taking unnecessary risks, so that the interests of our 85% customers, investors and other stakeholders are protected. • Powered by innovation and partnerships - By harnessing our internal knowledge and partnering with leading external Active clients organisations, we use new technology and digital expertise to deliver an excellent customer experience. (Read more on 24) 1.91 Mn • Leveraging technology - Our primary focus during the current 29% pandemic has been to support and do what is right for our customers. We continued to enhance our digital propositions, with a focus on speed, convenience, personalisation and Client Base control. (Read more on 26) • Leading customer experience – Building deeper relationships and evolving our propositions to meet the needs of 5.4 Mn our customers throughout their lives. (Read more on 28) Our Focus Statutory Reports on Sustainability Directors’ Report 66 Governance Annexures 91 To read or download this report, Governance Framework 44 Management Discussion please log on to Board of Directors 46 and Analysis 106 www.icicisecurities.com Risk Management 48 Financial Statements Social Standalone 122 People 50 Consolidated 188 CSR 54 Environment 58 Customer Testimonials 62 Awards 64 Integrated Annual Report 2020-21 Report Profile About our Integrated Report We are committed to serve and create lasting value for all stakeholders and build a more sustainable future for all. In continuance of that overarching objective, we consider it essential to share insights into our progress, milestones, challenges and prospects with all our valued stakeholders annually. Scope of Reporting Reporting period Stakeholders This Report is produced and published annually. Our relationships with our stakeholders play a key role It provides material information relating to our in our efficiency to deliver integrated business solutions strategy and business model, operating context, to our customers. material risks, stakeholder interests, performance, prospects and governance, from April 1, 2020 to March 31, 2021. Customers Communities Reporting boundary The non-financial information in the integrated Government and report largely covers data on the India operations of Business partners regulatory bodies ICICI Securities. and vendors Financial and non-financial reporting The Report extends beyond financial reporting and Shareholders Employees includes non-financial performance, opportunities, and investors risks and outcomes attributable to or associated with our key stakeholders, which have a significant Read more on 38 influence on our ability to create value. Strategy Our capitals We aim to be the most comprehensive digital platform All organisations depend on various forms of serving the life stage investment, protection and capital for their value creation. Our ability to create borrowing needs of Indians. long-term value is interrelated and fundamentally dependent on various forms of capitals available Our strategic anchors to us (inputs), how we use them (value-accretive activities), our impact on them and the value we Ramping up Monetising S1 S2 deliver (outputs and outcomes). scale and volume client value Improving customer Robust technology S3 S4 experience and digital agility Operating leverage S5 through cost efficiency Read more on 40 2 Being there never mattered more CORPORATE STATUTORY FINANCIAL OVERVIEW REPORTS STATEMENTS Standards and framework The non-statutory section of the Report follows the Integrated Reporting Framework recommended by Report navigation the International Integrated Reporting Council (IIRC). The other statutory reports, including the Directors’ Financial Intellectual Report, its annexures, including the Management capital capital Discussion and Analysis (MDA), and the Corporate Governance Report, are as per the Companies Act, 2013 (including the Rules framed thereunder), Securities and Exchange Board of India (Listing Obligations and Human Natural Disclosure Requirements) Regulations, 2015 and the capital capital revised Secretarial Standards issued by The Institute of Company Secretaries of India. The financial statements are in accordance with the Indian Accounting Standards. Social and Manufactured Board responsibility statement relationship capital The Board of Directors acknowledges its responsibilities capital to ensure the integrity of this Integrated Report. The Board has accordingly applied its collective mind and believes the Report addresses all material Page issues and presents the integrated performance of the reference Company and its impact in a fair and accurate manner. Feedback We welcome feedback on our report to ensure that we continue to disclose information that is pertinent and conducive to stakeholder decision-making. Please refer queries or suggestions to [email protected]. ICICI Securities Limited 3 Integrated Annual Report 2020-21 FY2021 in Summary Progress Made during the Year Our technology platforms and strong processes quickly adapted to the lockdown period and continued to meet the expectations of our customers through digital means. We focused more on providing services to our customers through our digital platforms and seamless trading experience. While we served our customers without any interruption through an increased digital mode, at the same time we took care of the safety and well being for our employees. During the year, our franchise strengthened, our business became more open architecture and we added more products, helping us diversify our revenues across various retail product revenue streams. 4 Being there never mattered more CORPORATE STATUTORY FINANCIAL OVERVIEW REPORTS STATEMENTS Leveraging digital New products launched • Digitised the entire client onboarding process • Introduced ICICI NEO as discount brokerage from completely manual to end-to-end online offering in the trading segment, where it offered • Added Chatbot and Whatsapp to the various zero brokerage in futures, ` 20 in Options and servicing options for clients to provide 24/7 Intraday per order instant assistance using artificial intelligence • Launched a plethora of tools and solutions like • Digital sourcing engines started adding customers iTrack, iAlert, iLens and Payoff analyser at a faster pace • Scaled One-Click Portfolio range, offering • Strengthened digital tools and solutions that our customers proprietary in research baskets helped customers to regularly take stock of of stocks with seamless execution with a their investments one-click platform both through the mobile and on the web platforms Expanded portfolio Enhanced partnerships • Scaled up distribution of loan products by adding • Partnered with Federal Bank for offering 3-in-1 12 more offerings like Home Loans, Loan against accounts Property (LAP), Lease Rental Discounting (LRD), • Tied up with multiple lending partners for higher Business Loans etc., which further fills our approval rates and more choices for our customers. offerings in the financial life-cycle needs of our Post tie-ups with new lending partners such as customers across investments, protection and banks, NBFCs and HFCs, more choices are now borrowing. available under one roof for our customers • Scaled our non-brokerage (allied) revenues in the • Expanded protection offering by on-boarding Max equity business by scaling up or launching slew Bupa Health Insurance Company Limited on our of value propositions including loan products, platform, thereby bringing
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