FBIL MIFOR TRANSITION

th7 Annual Report 2020-2021

FBIL MIFOR TRANSITION

MODIFIED MIFOR

NEW CONTRACTS

ADJUSTEDMIFOR LEGACY

CONTRACTS

ADJUSTEDADJUSTEDSOFRSOFR

ADJUSTEDSOFR

ALL-INALL-INFALLBACKFALLBACK

RATERATE

ALL-INFALLBACK

RATE

FBIL MIFOR

FBIL FORWARD PREMIA

USD-LIBOR

FBIL FORWARD PREMIA

NEW

REFERENCE

RATE

M

I

F

O

R

F

A

L

L

B

A

C

K

0

0.2

0.4

0.6

0.8

1

1.2

4.4

4.6

4.8

5

5.2

5.4

6M Adjusted and Modified MIFOR

FBIL ADJUSTED MIFOR(%) FBIL MODIFIED MIFOR(%)

th7 Annual Report 2020-2021

BOARD OF DIRECTORS

Usha Thorat G. Ravindranath Ashwani Sindhwani

Chairperson Director Director

Gopal Murli Bhagat C.E.S. Azariah Himadri Bhattacharya

Director Director Director

Dr. Anand Srinivasan A.N. Appaiah

Director Director

1th

7 Annual Report 2020-2021

BOARD OF DIRECTORS

Ms. Usha Thorat Chairperson

Mr. G. Ravindranath Director

Mr. Ashwani Sindhwani Director

Mr. Gopal Murli Bhagat Director

Mr. C.E.S. Azariah Director

Mr. Himadri Bhattacharya Director

Dr. Anand Srinivasan Director

Mr. A. N. Appaiah Director

AUDITORS

Messrs M. P. Chitale & Co.

Chartered Accountants

Hamam House, Ambalal Doshi Marg

Fort, Mumbai - 400 001.

BANKERS

IDBI BankMittal Tower, ‘C’ Wing, Gr. Floor,Nariman Point, Mumbai – 400 021.

Indian BankMittal Tower, Gr. Floor210 Nariman Point, Mumbai – 400 021.

Axis BankMaker Chamber 4, G1, Ground FloorJamnalal Bajaj Marg, Nariman Point,Mumbai - 400021.

HDFC Bank101/104 Tulsiani Chambers, Free Press Journal Marg,Nariman Point, Mumbai – 400 021.

REGISTERED OFFICEUnit No. 202 and 203,Peninsula Centre, S. S. Road,Off Dr. Babasaheb Ambedkar Road,Parel, Mumbai – 400012

To the Members,

Financial Benchmarks India Private Limited

The Directors have the pleasure in presenting the Seventh Annual Report on the business and operations

of the company along with the audited financial statements for the year ended March 31, 2021.

Highlights of major activities during FY 2020-21:

● FBIL continued uninterrupted publication of various benchmarks in the areas of money market,

Government securities, foreign exchange and related derivatives.

● Obtained the formal authorisation from the Reserve Bank of India to continue administering six

significant benchmarks.

● Revised the methodology for USD/ Indian rupee Forward Premia and commenced publication of the

same as per the revised methodology w.e.f February 22, 2021.

● Reviewed and revised CD Curve methodology for improving the benchmark performance.

● Developed a new G-Sec valuation methodology, which is currently under implementation.

● Worked on the development of a methodology for introducing a new benchmark, viz. SDL ZCYC and

Par Yield Curve.

● Developed the Adjusted MIFOR methodology and Modified MIFOR methodology to address issues

arising out of the LIBOR transition roadmap in India.

● Published a thematic study on the CD markets in India and continued the publication of Monthly

Newsletter as part of its research activity.

● Participated actively in the Working Group set up by the Government of India for adoption of a uniform

approach for Corporate Bond valuation. Provided support to the Group’s work by preparing G-Sec

data mapping into the maturity profile of corporate bonds.

● Redeveloped the FBIL’s website www.fbil.org.in with added features like parallel calculation of

benchmarks as per the approved methodologies using AI/ML and bigdata analysis, improved

dissemination channels like Application Programming Interface (API) and Secured File Transfer

Protocol (SFTP), integration with the CCIL and Bloomberg systems for secured auto-fetching of raw

data from CCIL and All-in-fallback and Adjusted SOFR rates from Bloomberg Index Services Ltd.

(BISL), robust monitoring of the access of the website, data download, contents management,

enhanced visibility of the website etc.

● Undertook comprehensive review and updated FBIL’s benchmark methodologies and major policies

for internal governance. FBIL put in place a policy relating to the outsourcing of calculation agent

activities. FBIL reviewed its policy on the constitution and function of its Oversight Committee (OC)

DIRECTORS’ REPORT

2th


3th


and reorganized the OC in line with the revised policy.

● FBIL reviewed the list of submitters and expanded the list by including more banks in the list of

submitters for Term MIBOR and FC Rupee Options Volatility.

1. Overview

Ø Developments in the Global Financial Benchmarks:

I. As per the IMF estimates, the global economy contracted by 3.5 percent in 2020, which is 0.9

percentage point higher than the projection in the earlier forecast reflecting that the COVID-19

pandemic had larger negative impact on the Global economy.

ii. The financial sector regulators, benchmark administrators and other stakeholders like ISDA

continued their adherence to the already declared broad timelines for cessation of publication of

LIBOR and other Inter-Bank Offered Rates (IBORs). Thus, on March 5, 2021, the Financial Conduct

Authority (FCA), UK announced that by the end of December 2021, ICE Benchmark Administration

Limited (IBA) will cease to publish 24 LIBOR rates. These include all 7 Euro LIBOR rates, all 7 Swiss

franc LIBOR rates, the Spot Next, 1-week, 2-month and 12-month Japanese yen LIBOR rates, the

overnight, 1-week, 2-month and 12- month Pound sterling LIBOR rates, and the 1-week and 2- month

US dollar LIBOR rates. Only overnight and 12-month US dollar LIBOR rates will cease immediately

after 30 June 2023.

iii. FCA’s announcement on March 5, 2021 was declared by ISDA as an “index cessation event”. This

triggered application of the ISDA 2020 IBOR Fallbacks Protocol for all 35 LIBOR settings. As a result,

the fallback spread adjustment published by Bloomberg was fixed as on the date of the

announcement for all the aforesaid LIBOR settings.

iv. On October 23, 2020, ISDA launched IBOR Fallbacks Protocol and IBOR Fallbacks Supplement to

the 2006 ISDA Definitions. The effective date of the Protocol and the Supplement was fixed on

January 25, 2021. The supplement helps to address the issues that arise when a derivative

referencing a floating rate like LIBOR gets disrupted. The existing 2006 ISDA definition addresses

only short-term disruption and not a permanent discontinuation of the reference rate. The supplement

introduces new objective and observable trigger events for each IBOR and the fallback rate to be

applied for that IBOR. This protocol helps the market participants with legacy transactions referencing

any IBOR to incorporate new fallback rate into the existing document.

v. ISDA selected Bloomberg Index Services Limited (‘BISL’) as the official adjustment services vendor

to calculate these various IBOR fallbacks. The rates to be calculated and published are Adjusted

Risk-Free Rate (RFR), Spread Adjustment and Fallback Rate. The Spread Adjustment would be

median of the historical differences between the IBOR for each tenor and the compounded RFR for

that tenor over a five-year period prior to an announcement constituting a Trigger Event. BISL begun

calculating and publishing fallbacks with effect from July 21, 2020.

vi. The Financial Stability Board (FSB) reaffirmed that financial and non-financial sector firms across all

jurisdictions should continue their efforts to make wider use of risk-free rates in order to reduce

reliance on IBORs, wherever appropriate and in particular to remove remaining dependencies on

LIBOR by end-2021. In October 2020, the FSB published a global transition roadmap for LIBOR.

The roadmap sets out dates as follows:

● Firms should have already identified and assessed all existing LIBOR exposures and agreed on a

project plan to transition in advance of end-2021.

● By the effective date of the ISDA Fallbacks Protocol, the FSB strongly encourages firms to have

adhered to the Protocol.

● By the end of 2020, financial firms should be in a position to offer non-LIBOR linked loans to their

customers.

● By mid-2021, firms should have established formalised plans to amend legacy contracts where

this can be done, and discuss steps that may be needed for use of alternative rates for LIBOR-

linked exposures that extend beyond end-2021.

● By end-2021, firms should be prepared for LIBOR to cease.

vii. As per the updated Q&A updated by ESMA on the BMR Transitional Provision, the European

Commission announced a formal two-year delay to full implementation of the Benchmark Rate’s

(BMR’s) transition period until December 31, 2023 for critical and third-country benchmark providers.

This decision was widely welcomed by the industry.

viii. The Fixed Income, Currencies and Commodities Markets Standards Board (FMSB) of UK released in

March, 2021 a proposal for standard for use of Term SONIA in financial products or contracts but not

to other potential use cases, including, for example, the use of Term SONIA as an input to

risk/valuation modelling or cost of funds calculations. Welcoming this proposal, the Working Group on

Sterling Risk-Free Reference Rates, the FCA and the Bank of England in a joint statement reiterated

their view that use of overnight SONIA, compounded in arrears, will provide the most robust

foundation for Pound sterling interest rate markets. It was made clear that the preferred alternative to

LIBOR for wholesale markets is the backwards-looking SONIA compounded in arrears. Term SONIA

would be relevant for smaller types of borrowers in the loan markets and for products that are offered

on a discount basis (such as discounted trade finance products).

ix. On January 11,2021, the ICE Benchmark Administrator (IBA) and Refinitiv launched their respective

Term SONIA Reference Rates (TSRR) with 1-month, 3-month, 6-month and 12-month tenors. ICE

TSRR is calculated using a waterfall methodology, wherein the level 1 computation is done using

eligible SONIA-linked overnight interest rate swaps provided by regulated, electronic, trading venues.

x. In February 2021, ARRC released an Updated User’s Guide to SOFR. The document explains how

market participants can use SOFR in cash products. ARRC cautions market participants that it is not

in their interest to put off taking action for LIBOR transition nor can the ARRC guarantee that an

administrator can produce a robust, IOSCO-compliant forward-looking term rate before the cessation

of LIBOR.

xi. On March 23, 2021, the Alternative Reference Rates Committee (ARRC) issued a press release

4th


5th


announcing that ARRC would not be in a position to recommend a forward-looking Secured Overnight

Financing Rate (SOFR) term rate by mid-2021, and, hence, it would encourage market participants to

continue to transition from LIBOR using the tools available at that time. Lack of sufficient liquidity in

SOFR derivatives markets was one of the key reasons cited by ARRC for this decision.

xii. On May 6, 2021, the Alternative Reference Rates Committee (ARRC) published a set of market

indicators that it would consider in recommending a forward-looking Secured Overnight Financing

Rate (SOFR) term rate. The publication of the indicators is expected to provide clear guidance that

would allow the ARRC to recommend a SOFR-based term rate relatively soon. The indicators are

designed to measure progress in establishing deep and liquid SOFR derivatives and cash markets —

which are essential to a robust and stable term rate.

xiii. ARRC released its third progress report on adoption of SOFR referencing financial products in March

2021. By January 2021, open interest in SOFR-based futures and swaps had reached US$6 trillion.

However, LIBOR continues to be the predominant reference rate for interest rate swap market for US

dollar. At the end of December quarter of 2020, the total gross notional outstanding exposures in USD

LIBOR was US$223 trillion, out of which interest rate swaps and futures accounted for US$92 trillion.

An estimated 67% of LIBOR exposures will mature before June 2023, thereby leaving around US$74

trillion of USD LIBOR exposure maturing beyond June, 2023. The growth in trading volumes of SOFR

derivatives was mostly at longer horizons, while trading activity in short-dated derivatives remained

essentially flat.

xiv. November 2020, Freddie Mac started purchasing and securitizing single-family adjustable-rate In

mortgage (ARM) loans tied to SOFR. Freddie Mac also launched new SOFR-indexed offerings and

announced the discontinuation of LIBOR-indexed products.

xv. In February 2021, the Working Group on Sterling Risk-Free Reference Rates published “Best

Practice Guide for GBP Loans”. The document emphasized that from the end of March 2021, GBP

LIBOR should no longer be used in any new lending or other cash products that mature after the end

of 2021. It was also pointed out that overnight risk-free rate SONIA implemented via a compounding in

arrears methodology remains the recommended alternative to GBP LIBOR and loan markets should

consistently move towards this.

xvi. SONIA represented the largest percentage of RFR-linked interest rate derivatives (IRD) trading

activity by currency in 2020. SONIA IRD DV01 accounted for 41.1% of total Pound sterling IRD Dv01

in January, 2020. It declined to 21.0% in April 2020, but bounced back to 40.5% in December, 2020.

xvii. On January 20, 2021, Bloomberg announced that it had begun publication of the Bloomberg Short

Term Bank Yield Index (BSBY), a credit-sensitive benchmark based on executed prices and

executable quotes for secondary market transactions in commercial paper, certificates of deposits,

USD bank deposits and bank bond trades. According to Bloomberg, they are positioning the BSBY as

an alternative for banks that had questioned the suitability of a risk-free rate, such as SOFR, as a

lending rate.

xviii. As per the roadmap published by the Cross-industry Committee on Japanese yen Interest Rate

Benchmarks in November 2020, new loans and bonds referencing LIBOR should cease by the end

Q2, 2021.

xix. Asia Securities Industry and Financial Markets Association (ASIFMA), Asia Pacific Loan Market

Association (APLMA), ISDA, and the International Capital Market Association (ICMA) released a

paper-IBOR Transition Guide for Asia – in July 2020. The paper includes a practical implementation

checklist which financial institutions may use as a reference.

xx. In January 2021, the Asia Securities Industry and Financial Markets Association ("ASIFMA") released

a report of the survey the association had conducted in August 2020, amongst its members to identify

some key issues that require attention before end-2021. One of the main themes that emerged from

the survey results with regards to cessation of LIBOR was lack of standardisation, harmonisation and

consensus between different jurisdictions and asset classes.

Ø Domestic developments in the Financial Benchmarks:

I. In August 2020, the Reserve Bank of India (RBI) issued a ‘Dear CEO’ letter to all scheduled

commercial banks alerting the banks about the impending risks in the wake of the LIBOR cessation.

The letter underscored the imperative need on the part of the banks to identify exposures that

reference LIBOR and which are likely to continue beyond cessation date; assess preparedness for

the transition and identify associated risks; and ensure customer sensitization on the subject.

II. In India, LIBOR exposures of commercial entities including banks arises from LIBOR referencing loan

contracts [e.g., External Commercial Borrowings (ECBs)]; FCNR (B) deposits with floating rates of

interest linked to LIBOR; and derivatives linked to LIBOR or to the MIFOR - a domestic benchmark

based on LIBOR. As of August 2020, RBI estimates in August, 2020, were that about US$50 billion of

debt contracts in the form of ECB/FCCBs and US$281 billion of derivative contracts will expire

beyond 2021.

III. To oversee the LIBOR Transition in India, the Indian Banks Association (IBA) has constituted a

Working Group (WG) with two separate Work Streams to review the following items:

● Identifying an Alternative Reference Rate for both existing contracts maturing beyond 2021 and

the new contracts to be entered into after 2021 for cash market instruments and derivatives.

● Preparing uniform fallback language including a clearly defined alternate reference rate for the

legacy contracts and new contracts covering loans, bonds and derivatives.

IV. In October 2020, FBIL released for market consultation a draft methodology document for FBIL

Adjusted MIFOR Curve as a fallback to the MIFOR Curve benchmark. The FBIL MIFOR Curve is an

implied Indian rupee interest rate curve derived from the FBIL Forward Premia and the USD LIBOR.

The FBIL Adjusted MIFOR Curve can be used in the legacy contracts referenced to MIFOR. The FBIL

Adjusted MIFOR Curve will be computed using the All-in Fallback Rate to the USD LIBOR and the

FBIL Forward Premia Curve. FBIL has commenced publication of the Adjusted MIFOR with effect

from June 15, 2021.

6th


7th


V. As regards the choice of the new reference rate for new transactions after the cessation of MIFOR, the

IBA Working Group had two rounds of survey among the market participants. The Working Group

members discussed the survey results for having a consensus on a suitable alternative product for

the fresh contracts to be entered into after LIBOR cessation and identified Modified MIFOR as the

preferred choice. The Modified MIFOR will be computed using the Adjusted SOFR compounded in

arrears, and the FBIL Forward Premia Curve. In March 2021, FBIL released for market consultation a

draft methodology document for FBIL Modified MIFOR Curve. The FBIL has commenced publication

of Modified MIFOR with effect from June 30, 2021.

VI. In January 2021, SBI and ICICI Bank executed interbank money market deals using SOFR through

their Hong Kong branches.

VII. On March 16, 2021, SBI announced that it had inked the first deal in the external commercial

borrowing (ECB) market using SOFR. The deal involved a five-year borrowing of US$ 100 million by

Indian Oil Corporation (IOCL).

VIII. In November 2020, the Government of India, Ministry of Finance constituted in November, 2020 a

working group to examine the feasibility of having uniform valuation methodology for corporate bond

and provide a roadmap for the same. FBIL was represented by the CEO as a member of the Group.

IX. Based on the recommendation of the Task Force on Development of Secondary Market for Corporate

Loans, RBI, on December 04, 2020 recommended that it will facilitate the setting up of a self-

regulatory body (SRB) as a first step towards the development of the secondary market for corporate

loans. The SRB will be responsible, inter alia, for standardising documents, covenants and practices

related to secondary market transactions in corporate loans and promoting the growth of the

secondary market in line with regulatory objectives.

X. The SEBI has issued a consultation paper on Compliance Standards for Index Providers on

December 8, 2020. The paper has, inter alia, proposed that in respect of indices, based on which any

product including derivatives, Exchange Traded Funds, Market Linked Debentures are available

/traded on Indian stock exchanges, the stock exchanges shall ensure that the Index Provider shall get

the IOSCO compliance certification from an independent third party on bi-annual basis, which shall

be available on its website.

XI. The Financial Stability & Development Council (FSDC) has decided to constitute a core inter-

disciplinary committee under the aegis of Department of Economic Affairs (DEA), Ministry of Finance,

Government of India to enable smooth transition to post-LIBOR regime well before December,

2021.The group, inter alia is required to develop a concrete transition roadmap matching the global

timelines & report regular progress to FSDC & FSDC-sub-committee. This committee has now

finalized its report and recommendations for ensuring a smooth transition to a post-LIBOR regime.

2. Indian Financial Markets:

Ø The FY 2020-21 is the first FY since 1980 that witnessed a negative growth in Gross Value Added

(GVA), due to the COVID-19 pandemic. The second advance estimate of GVA at constant 2011-12

8th


prices put the growth at negative 6.5%. In the backdrop of countrywide lockdown, the core financial

sectors that includes banking and financial markets were declared as essential services and allowed

to function with some restriction. As a result, the Financial, Real Estate and Professional Services

together registered the lowest decline in GVA at (-)1.4%.

Ø The RBI took a number of steps to mitigate the adverse impact of countrywide lockdown on the

borrowing entities including individuals. Negative demand shocks arising out of Non-Pharmaceutical

Interventions (NPI) by the authorities prompted the central bank to take a benign view of inflation and

provide adequate liquidity stimulus to the real sector through a plethora of measures.

● Firstly, the RBI brought down the policy rate from 5.15% to 4.4% - a massive cut of 75 basis points

on March 27, 2020- 3 days after the countrywide lockdown was announced, initially for 21 days.

● Subsequently, the RBI continued to maintain an accommodative stance in its subsequent

monetary policy announcements.

● Along with repo rate cut, the RBI also slashed the reverse repo rate by 90 basis points to

discourage banks parking their surplus liquidity with the central bank.

● Amongst other host of measures which injected significant liquidity were reduction of CRR by 100

basis points, increase in Marginal Standing Facility to 3% of SLR and auctions of targeted term

repos of up to three years' tenor. These 3 measures were expected to inject total liquidity of 3.74

lakh crore to the system.

● The RBI slashed repo rate by another 40-basis point on May 22, 2020 (see Box 1 for more

details).

● Along with the above liquidity injection measures, RBI started intervening in the G-Sec market to

soften the yield curve. After COVID-19 measures announced in March 2020, the RBI announced

its "Operation Twist" involving simultaneous selling of short-term securities and buying of long-

term securities through open market operations (OMO) to soften the long-term yield and reduce

the spread between short-term and long-term risk-free rates.

Ø During the year, the RBI initiated the process of international settlement of Indian government

securities (G-Secs) through International Central Securities Depository (ICSD) in consultation with

the Government of India, ICSDs and other stakeholders. Clients of ICSDs would be able to invest in

Indian G-Sec without registering themselves as foreign portfolio investors (FPIs).

Ø During the year, the RBI comprehensively reviewed and rationalized directions on call, notice and

term money, certificates of deposit (CDs) and commercial papers (Cps), and non-convertible

debentures (NCDs) with original maturity of less than one year with a view to bringing in consistency

across products in terms of issuers, investors and other participants.

Ø The RBI, vide its notification dated December 04, 2020 permitted regional rural banks to participate in

the call/notice and term money markets both as borrowers and as lenders under LAF and MSF

windows.

9th


Ø The RBI introduced an automated Sweep-In and Sweep-Out (ASISO) Facility for end of the day LAF

Operations facility in its e-Kuber system on August 06, 2020. Accordingly, banks would be able to set

a specific amount or a range as desired balances in their current accounts in this system. Depending

upon this pre-set amount, marginal standing facility (MSF) and reverse repo bids, as the case may be,

would be generated automatically without any manual intervention at the end of the day.

Ø On December 09, 2020 RBI announced that RTGS would be available round the clock on all days of

the year to provide extended flexibility to businesses for effecting payments with effect from

December 14, 2021.

I. Money Market:

The unprecedented pandemic crisis in FY 2021 impacted all segments of the financial market,

including the money market. Given this scenario, the stated objective of RBI was to prevent financial

markets from freezing up and maintain sufficient liquidity in the market. This was achieved by

ensuring adequate liquidity through the LAF. RBI reduced the Repo Rate under LAF by 40 basis point

to 4% in May 2020. Simultaneously, the Reverse Repo Rate and Marginal Standing Facility were

reduced to 3.35% and 4.25% respectively. The other money market instruments immediately got

aligned within the LAF corridor.

a) Overnight Rates:

During the FY21, the spread between FBIL MIBOR and the RBI policy Repo Rate moved into the

negative zone, reaching a low of minus 60 basis point in end- October, 2020 and thereafter remained

closely aligned with the RBI Reverse Repo Rate. FBIL Market Repo benchmark rate (MROR)

remained below the LAF corridor for most of the FY 2021 and reached a bottom of 2.72% on 27

November 2020, reflecting flush of liquidity. For a brief period of time during the end of March 2021,

did MROR go above the Reverse Repo rate by 8 basis point, possibly, reflecting year end effects. The

MROR again traded below the Reverse Repo rate during the quarter ending June, 2021.

2.5

3

3.5

4

4.5

5

Movement of Money Market Rates between LAF Corridor (%)

MIBOR MROR LAF Repo LAF Reverse Repo MSF

10th


3

3.5

4

4.5

30

-04

-20

20

29

-05

-20

20

30

-06

-20

20

31

-07

-20

20

31

-08

-20

20

30

-09

-20

20

29

-10

-20

20

27

-11

-20

20

31

-12

-20

20

29

-01

-20

21

26

-02

-20

21

31

-03

-20

21

30

-04

-20

21

31

-05

-20

21

30

-06

-20

21

Comparison between Wt. Avg. Call Rate(%) and MIBOR(%)

MIBOR WACR

2.52.72.93.13.33.53.73.9

30

-04

-20

20

29

-05

-20

20

30

-06

-20

20

31

-07

-20

20

31

-08

-20

20

30

-09

-20

20

29

-10

-20

20

27

-11

-20

20

31

-12

-20

20

29

-01

-20

21

26

-02

-20

21

31

-03

-20

21

30

-04

-20

21

31

-05

-20

21

30

-06

-20

21

Comparison between Wt. Avg. Repo Rate(%) and MROR(%)

MROR WARR

Source: FBIL Historical Rates and CCIL

Note:

1. Wt. Average Call Rate: It is the volume weighted average of entire day's call money transactions obtained from

the NDS CALL platform of Clearing Corporation of India Ltd (CCIL).

2. Wt. Average Repo Rate: It is the volume weighted average of entire day's repo transactions (Basket Repo and

Special Repo) obtained from the CROMS platform of Clearing Corporation of India Ltd (CCIL).

b) Term MIBOR:

FBIL Term MIBOR is a polled rate based on submissions made by a panel of banks and primary dealers (PDs) for

three maturities, viz. 14 days, 1 month and 3 months. All the three Term MIBOR rates started declining after

reduction in the policy rates and by the September 2020, all the three rates came to stay within the LAF

corridor. The 3-month Term MIBOR rate was quoted at premium over the RBI Reverse Repo rate by more than

100 basis point till July, 2020. This premium dropped to around 30 basis points by end-November, 2020. The 3-

month Term MIBOR was at 3.74% and 3.81% at the end of March and June, 2021 respectively.

3

3.5

4

4.5

5

5.5

Term MIBOR Rates (%)

14 Day 1 Month 3 Months

Source: FBIL Historical Rates

11th


c) T-Bills Curve:

FBIL publishes T-Bills rates for 14 tenors viz. 7 Days, 14 Days, 1 Month,2 Months,3 Months, 4 Months, 5

Months, 6 Months, 7 Months, 8 Months, 9 Months, 10 Months, 11Months and 12 Months. While 3-month T-

Bill rates registered a sharp decline of 71 basis point during the year, reaching 2.89% by the end of November

2020, it started increasing thereafter, reaching 3.27% by end-March 2021 and 3.43% by end June 2021. The

movements in 6- and 12-month T-bill rates were more moderate by comparison. However, by end-June 2021,

both the 6-month and 12-month T-bill rates had firmed up and were at 3.71% and 3.88% respectively.


2.72.93.13.33.53.73.94.1

T-Bill Rates (%)

3 Month 6 Month 12 Month

d) Certificate of Deposit:

FBIL CD rates are published for seven tenors. The CD rates are calculated using transactions level data from

the secondary market, supplemented by interpolation/extrapolation in case of non-availability of traded

data. During the year, the CD rates for various tenors showed a declining trend till September, 2020

followed by a wavy upward movement. The 6-month rate registered the highest volatility. The term

premium of 12-month rate over 1-month rate rose to a very high level of 129 basis points in the month of

February, 2021 and declined consistently thereafter to 71 basis point by end-June, 2021.


2.5

3

3.5

4

4.5

5

5.5

CD Rates (%)

1 Month 3 Month 6 Month 12 Month

12th


72.5

73

73.5

74

74.5

75

75.5

76

30

-04

-20

20

29

-05

-20

20

30

-06

-20

20

31

-07

-20

20

31

-08

-20

20

30

-09

-20

20

29

-10-

20

20

27

-11

-20

20

31

-12

-20

20

29

-01

-20

21

26

-02

-20

21

31

-03

-20

21

30

-04

-20

21

31

-05

-20

21

30

-06

-20

21

INR / 1 USD

INR / 1 USD

92

94

96

98

100

102

104

30

-04

-20

20

29

-05

-20

20

30

-06

-20

20

31

-07

-20

20

31

-08

-20

20

30

-09

-20

20

29

-10-

20

20

27

-11

-20

20

31

-12

-20

20

29

-01-

20

21

26

-02

-20

21

31

-03

-20

21

30

-04

-20

21

31

-05

-20

21

30

-06

-20

21

INR / 1 GBP

INR / 1 GBP

II. Foreign Exchange Market:

The FY 2021 started with the Indian rupee depreciating against US dollar in the month of April, 2020 by 0.69%.

Thereafter, the rupee started appreciating month over month till end December, 2020, but for some minor

depreciation during the months of September and October, 2020. The overall appreciation between April,

2020 and December, 2020 was of the order 2.88%. Worldwide, amongst other factors, the relative success of

one country against another in containing the spread of corona virus determined a currency's strength. This

factor might have played a role in the 1.46% depreciation of the rupee between February and April,2021.

While during the month of May, 2021 the trend was reversed and the rupee appreciated by around 2.03%. The

rupee depreciated around 2.52% in June, 2021.


8182838485868788899091

30

-04

-20

20

29

-05-

20

20

30

-06

-20

20

31

-07

-20

20

31

-08

-20

20

30

-09

-20

20

29

-10

-20

20

27

-11

-20

20

31

-12

-20

20

29

-01

-20

21

26

-02-

20

21

31

-03

-20

21

30

-04

-20

21

31

-05

-20

21

30

-06

-20

21

INR / 1 EUR

INR / 1 EUR

66

67

68

69

70

71

72

30

-04

-20

20

29

-05

-20

20

30

-06

-20

20

31

-07

-20

20

31

-08

-20

20

30

-09

-20

20

29

-10

-20

20

27

-11

-20

20

31

-12

-20

20

29

-01

-20

21

26

-02

-20

21

31

-03

-20

21

30

-04

-20

21

31

-05

-20

21

30

-06

-20

21

INR / 100 JPY

INR / 100 JPY

The FBIL US dollar/ Indian rupee Reference rate is calculated on the basis of transaction-level data obtained

from electronic trading platforms within a random time window. The rates for GBP/INR, EUR/INR and JPY/INR

are calculated using quotes from the electronic platform for GBP/USD, EUR/USD and USD/JPY and crossing

each of them with the US dollar/Indian rupee rate of the day. The FBIL US dollar/Indian rupee Reference rates

on March 31,2021 and June 30, 2021 were 73.5047 and 74.3456 respectively.

13th


3

3.5

4

4.5

5

5.5

6

FBIL Forward Premia(%)


III. Derivatives:

a. USD-INR Forward Premia:

FBIL publishes USD/INR Rolling Forward Premia for various tenors, ranging from Overnight to 12 months.

The Forward Premia are calculated from the respective month-end USD/INR forward foreign exchange

transactions reported to the Clearing Corporation of India Limited (CCIL). The 3-month Forward Premia

exhibited much higher volatility as compared to the premia of other tenors.


The 3-month premia remained range-bound around an average of 3.6631% during the first eight months of

FY2020-21 and then it increased sharply to 5.5641% by the end of February 2021. After a dip to 4.9130% at the

end of March 2021, reflecting the year-end effect, the 3-month premia bottomed out at the end of the third

week of April, 2021 to 4.7150%. Thereafter, it started an upward trend to reach 5.5633% on May 31,2021;

however, it declined sharply thereafter to the level of 4.0669% at the end of June, 2021. In comparison to 3-

month premia, the 6-month and 12-month premia were at 4.1823% and 4.4625% respectively, as on June 30,

2021.

b. FBIL MIFOR:

The FBIL publishes MIFOR rates for various tenors along with the Forward Premia Curve benchmark.

MIFOR are calculated using the FBIL Forward Rates and the USD LIBOR rates for the respective tenors. The

movement in MIFOR reflects the variations in the Forward Premia Curve and the USD LIBOR. On June 30,

2021, 3-month, 6-month and 12-month MIFOR rates were at 4.2782%, 4.3474% and 4.7234%

respectively.


3

4

5

6

FBIL MIFOR Rates(%)


14th


c. MIBOR-OIS:

FBIL publishes the MIBOR OIS rates for ten tenors ranging from 1 month to 5 years. The MIBOR OIS rates

are computed based on traded data obtained from the CCIL. The MIBOR OIS rates for various tenors

moved almost parallelly over the entire financial year. While during the first half of the financial year the

rates for various tenors were range bound, in the second half of the FY 2021, however, an increasing trend

in the rates was observed till end of February, 2021. The rates for all tenors reached their respective peaks

by the end of February, 2021. The year-end effect moderated the rates as on March 31, 2021. The rates for

the year end for the tenors of 1 year, 2 years, 3 years, 4 years and 5 years were 3.87%,4.28%,4.68%,4.99%

and 5.25% respectively.

33.5

44.5

55.5

6

FBIL MIBOR OIS Rates (%)

1 Year 2 Year 3 Year 4 Year 5 Year


d. Foreign Currency Rupee Option Volatility Matrix:

FBIL FC Rupee Options Volatility Matrix are computed for 5 tenors: 1 Week, 1 Month, 3 Months, 6 Months

and 12 Months based on the submissions made by a panel of banks.

The Bid Ask Average of at-the-money volatilities along with the 25 Delta Risk Reversal and 25 Delta

Strangle as polled by the submitters are aggregated for the above-mentioned tenors. The volatilities are

polled, as the foreign currency options market lacks volume and is very thin.

456789

FC Rupee MID ATM Vol(%)

1 WEEK 1 MONTH 3 MONTHS 6 MONTHS 12 MONTHS


15th



0

0.5

1

1.5

30

-04

-20

20

29

-05

-20

20

30

-06

-20

20

31

-07

-20

20

31

-08

-20

20

30

-09

-20

20

29

-10

-20

20

27

-11

-20

20

31

-12

-20

20

29

-01

-20

21

26

-02

-20

21

31

-03

-20

21

30

-04

-20

21

31

-05

-20

21

30

-06

-20

21

25D RR

1 WEEK 1 MONTH 3 MONTHS

6 MONTHS 12 MONTHS

00.10.20.30.40.5

30

-04-

20

20

29

-05

-20

20

30

-06

-20

20

31

-07

-20

20

31

-08

-20

20

30

-09

-20

20

29

-10

-20

20

27

-11

-20

20

31

-12

-20

20

29

-01

-20

21

26

-02

-20

21

31

-03-

20

21

30

-04

-20

21

31

-05

-20

21

30

-06

-20

21

25D STR

1 WEEK 1 MONTH 3 MONTHS

6 MONTHS 12 MONTHS

IV. Fixed Income Securities:

• Government Securities:

Following an accommodative policy stance and large reduction in policy rates by the RBI, the G-Sec market

witnessed substantial lowering of the risk-free benchmark yields during the financial year. Accordingly, the

benchmark 10-year G-Sec yield came down to 5.83% by the end of November, 2020. However, the 10-year

yield started hardening from December, 2020 onwards and reached the level of 6.23% on February 27, 2021

and thereafter lowered slightly to 6.18% on end- March 2021 and further to 6.05% at the end of June, 2021.

The table and the chart below show the volume of trades and the yield-to-maturity of the top 5 liquid G-Secs

during the period from April, 2020 to March, 2021. The 10-year G-Sec, 05.77 GS 2030 clocked the highest

turnover of ₹ 13.14 trillion during the FY20-21, accounting for 17% of total volumes in the G-Sec market in the

same period. It was followed by 06.45 GS 2029, accounting for 12%. Overall, top 5 traded G-Sec accounted for

51% of trades by volume.

Top 5 traded securities (Volume in ₹ billion)

05.77 GOVT. STOCK 2030





April 2020 1879.88

May 2020 2532.95 35.14 272.38

June 2020

1845.49

474.99

875.52

July 2020 53.11 1273.62 1289.21 2694.38

August 2020 1055.71 360.86 1090.07 1389.85

September 2020 2193.97 231.23 1054.12 544.80

October 2020 2628.96 245.34 1132.43 216.73

November 2020 2029.94 130.45 763.86 45.70 74.98

December 2020 2084.38 128.15 633.19 308.33 30.25

January 2021 1645.29 86.28 240.03 687.47 12.15

February 2021 1309.07

108.91

85.73

1157.44

14.07

March 2021 138.86 81.21 42.12 1358.85 23.34

April 2021 86.04 30.94 16.11 1478.55 11.38

May 2021 55.77 28.38 17.54 1361.44 19.68

June 2021

24.00

12.25

34.00

557.00

21.00

16th


5.7

5.8

5.9

6

6.1

6.2

6.3

10-year G-Sec YTM(%)

*10-Year G -Sec data comprise 6.45% GS 2029 up to April 2020; 5.79% GS 2030 from May 2020 to July 2020;

5.77% GS 2030 from August, 2020 to October, 2020 and 5.85% GS 2030 from November, 2020 onwards.


5.25.45.65.8

66.26.46.66.8

7

YTM of Top 5 Traded G-Sec (%)

05.77 GOVT. STOCK 2030 06.45 GOVT. STOCK 2029 06.19 GOVT. STOCK 2034

05.85 GOVT. STOCK 2030 05.79 GOVT. STOCK 2030


● State Development Loans:

The SDL segment witnessed a steep decline of 11% in trading volume in FY 2021 as compared to FY20, dropping

from ₹ 6.95 trillion to ₹ 6.16 trillion. In FY 20 the most traded tenor was 2029 accounting for 22% of all trades in

terms of volume. In FY21, the top traded tenor was 2030 accounting for 17% of all traded tenors. Interestingly,

top 2 tenors of FY20, namely 2029 and 2028 did not even figure in the top 5 traded ISINs of FY21. In FY 21, the

highest traded two tenors were 2030 and 2031 with respective shares in total volume of SDL market being 17%

and 9% respectively. State wise, 4 states namely- Gujarat, Karnataka, Maharashtra and Tamil Nadu- accounted

for around 44% of all traded SDLs in terms of volume.

The tenor-wise Average YTM curves of SDL for the last six months of 2021 show a relatively flat YTM curve after

the 2025 tenor. The spreads between average YTM of SDLs of residual maturity of 6 months and of tenor 2025

ranged between 197 and 268 basis points during the first 6 months of 2021.


3

3.5

4

4.5

5

5.5

6

6.5

7

7.5

8

1 2

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

20

31

20

32

20

33

20

34

20

35

20

36

20

37

20

38

20

39

20

40

20

41

20

43

20

44

20

49

20

50

20

51

20

54

20

55

20

59

20

60

SDL: Tenor wise Average YTM Curve (%)

29-01-2021 26-02-2021 31-03-2021 30-04-2021 31-05-2021 30-06-2021

3. FBIL Activities:

i. There was no change in nature of the business of FBIL during the year under review.

ii. Notwithstanding several disruptions on account of Covid lockdowns, FBIL published benchmarks in

respect of Overnight MIBOR, MROR, Term MIBOR, Forward Premia curve, MIFOR, T-Bill rates, CD rates,

MIBOR-OIS, FC-Rupee Options Volatility Matrix, G-Sec Valuation and SDL valuations for various tenors on a

daily basis without any interruptions.

iii. FBIL carried out a comprehensive review of all the benchmark methodologies with a view to ensuring that

the methodologies represent the underlying interests and continue to be relevant. FBIL, based on market

consultation, has carried out changes in the CD curve methodologies and the application software is under

development.

iv. Further, FBIL carried out changes in the forward premia curve methodology incorporating the

computation of year end turn for December month, rollover date adjustment and simplifying the

procedure for computation of rates for other tenors of the curve if the transactions level data are not

available. The revised methodology was implemented from February 22, 2021.

v. FBIL comprehensively reviewed the benchmark methodology relating to the Government securities(G-

sec) valuation framework. Based on multiple market consultations, FBIL has revised the methodology for

computation of G-sec valuation and the development of software for computation of the benchmark is

under progress. The salient features of the methodology include: i) use of last one hour of trading data and

the entire day's data as applicable, ii) multiple input points in a maturity segment, iii) introduction of T-Bills

as input points in the shorter maturity segment up to one year, iv) introduction of outlier procedure and v)

revision in adjustment factors etc.

vi. Two FBIL benchmarks namely Term MIBOR and FC Rupee Options Volatility rates are based on polled

submissions due to inadequacy of the transaction level data. During 2020-21, FBIL reviewed the list of

submitters and expanded the list by including more banks in the list. The current list of submitters effective

17th


from April1, 2021 will be valid for a period of three years till end March 2024.

vii. Reserve Bank of India issued authorisation to FBIL to continue administering six significant benchmarks

identified by RBI, namely, i) Overnight MIBOR, ii) MIFOR, iii) USD/INR Reference Rate, iv) T-Bill Curve, v) G-

Sec Valuation and vi) SDL Valuation.

viii. FBIL continued the publication of its monthly Newsletter during the period from April, 2020 to March,

2021. The newsletter broadly covers analysis of data for all the benchmarks published by FBIL. It also

contains information on recent developments in the global and domestic benchmarks.

ix. FBIL conducted various outreach programs with market participants and experts as part of its consultative

process for review and improvements in various benchmarks and carried out modifications, as required, in

the methodology of the benchmarks published by FBIL. During the year, various discussion sessions and

consultations were held with market participants for review of methodologies pertaining to CD Curve,

USD/INR Forward premia / G-Sec / MIFOR – Adjusted MIFOR and Modified MIFOR.

x. FBIL published a thematic study on the Indian CD market covering the period from January, 2013 to July,

2019. The study examined the trading pattern and trading liquidity of various CDs issued by the banks in

India during that period.

4. Governance Policies:

The following are the updates and reviews of FBIL's internal policies during the year 2020-21.

I. Policy on the constitution, functions of the Oversight Committee and other relevant matters:

The Oversight Committee (OC) of FBIL has been reconstituted for appropriate oversight function and

regular review of various aspects of the benchmark-setting process including determination of

methodology. It has also been involved in the development and refinement of all the significant

benchmarks that FBIL currently administers. The policy framework in respect of the OC, inter alia, seeks to

provide for the scope and objective of the oversight function, selection criteria, process of selection,

nomination, tenure, replacement of members and declaration of conflict of interest, if any.

II. Error Policy:

FBIL carried out a market consultation for framing its error policy for administration of significant

benchmarks. The Error Policy defined i) the materiality threshold for error, ii) cut off time for error

reporting and iii) publication of error refix. The reports are regularly analysed by the Oversight Committee

and the Board of FBIL.

III. Document Retention Policy:

As per the directions for financial benchmark administrators issued by the RBI, an administrator is

required to retain all the records relating to benchmark determination for a minimum period of ten years.

The policy was reviewed in the light of the Direction. All data in possession of FBIL in connection with all

the benchmarks including the six significant benchmarks will be retained for 10 years from their date of

receipt/creation.

IV. Policy on appointment of Directors:

A policy has been put in place laying down the selection criteria for directors, including additional

18th


directors in consonance with the Companies Act 2013, conduct of board proceedings, retirement and

resignation of directors and other aspects regarding the remuneration, age limit and declaration with

regard to conflict of interest, if any.

V. Benchmark Administration & Control Framework:

FBIL documented the Control Framework for smooth conduct of its business operations, viz. benchmark-

setting methodologies, calculation and publication of various benchmarks and their administration,

including procedures to handle exigencies.

VI. Unified Code of Conduct for Submitters:

The code of conduct is applicable to the submitters of the benchmarks that are determined through polled

submissions. Both the Term MIBOR and FC-Rupee Options Volatility Rate Matrix are based on submission

for which panels of submitters are being maintained. The identified submitters are required contribute to

the benchmark submissions as per RBI guidelines contained in their circular dated April 16, 2014. During

the year, the policy was reviewed and it was provided that there would be no interim withdrawals by any

of the submitters making submissions. In terms of the paragraph 6(iv)(e) of the Financial Benchmark

Administrators (Reserve Bank) Directions 2019 dated June 26, 2019, the submitters would continue to

make submissions during the transitional periods arising out or revocation of authorisation by the RBI or

termination of the benchmark by the FBIL.

VII. Conflicts of Interest Policy:

As the Benchmark administrator of Money Market, Interest Rates, Foreign Exchange and related

derivatives markets, FBIL developed a Conflicts of Interest Policy to provide guidance to the stakeholders

in the benchmark-setting process (including the FBIL as administrator) for identifying, avoiding,

managing, and disclosing conflicts of interest that may arise in the determination, calculation, publication

and distribution of financial benchmarks. The policy is in available in the public domain on FBIL's website.

VIII. Complaint Policy:

This policy concerns treatment of complaints and/or suggestions regarding the existing determination,

calculation, publication and administration of the FBIL benchmarks. It sets out procedures which the FBIL

adopts in processing complaints and/or suggestions. In terms of the latest review, FBIL will ensure that

parties alleged to be involved in the complaints are not a part of the investigations. If the complaint relates

to the FBIL Offices' administrative functions, the investigations will be conducted by parties that are not

involved in the subject of complaint. The FBIL may approach the complainant, the accused party, and/or

other third parties for investigating purposes. FBIL will escalate all such complaints received, to the

Oversight Committee/ Board of FBIL. FBIL Office will inform the complainant about the outcome of the

investigation and remedial action if any. If a remedial action involves a change in the benchmark

determination process and or publication arrangements that may affect stakeholders, consultation will be

conducted by the FBIL in accordance with the prevailing policy. The normal timeline for handling of

complaints is as follows: a) acknowledging within 1 week b) investigating prima-facie within 1 month and

c) communicating within 1 month and 15 days of acknowledgement if no further investigation is felt

necessary and d) escalating and redressing within 3 months of receipt of the complaint. The policy is

19th


currently placed on the public domain.

IX. Whistleblowing Policy:

This policy provides for arrangement for any person who wishes to submit a report on any suspicious

and/or potentially manipulative activities that may affect the integrity of any aspect of the benchmarks

that the FBIL administers. All whistleblowing reports received and resolved are reported to the Oversight

Committee of FBIL. The policy is available in the public domain on FBIL's website.

X. Benchmark Cessation Policy:

This policy document lays down the policy and procedure for cessation of a benchmark or cessation of a

particular tenor of any of the benchmarks that FBIL administers. This policy was updated stipulating that in

terms of the paragraph 6(iv)(e) of the Financial Benchmark Administrators (Reserve Bank) Directions,

2019 dated June 26, 2019, the submitters will continue to make submissions during the transitional

periods arising out of revocation of authorisation by the Reserve Bank or termination of the benchmark by

the FBIL. The policy is available in the public domain on FBIL's website.

XI. Business Continuity Policy (BCP):

This policy provides the details of business continuity plan of FBIL to manage contingencies arising out of

disruptions in services involving various agencies, including FBIL, engaged in the benchmark-setting and

publication processes. In view of the COVID-19 pandemic conditions, procedures for Work from Home

(WFH) were incorporated and enabled as part of the BCP.

XII. Framework for Calculation Agents:

Currently, FBIL has engaged CCIL and FIMMDA as its calculation agents for computation of its benchmarks

following the respective benchmark methodologies. While CCIL is a significant financial market

infrastructure, FIMMDA is an association of market participants. FBIL has separately entered into

contractual arrangements with CCIL and FIMMDA in the form of a Benchmark Administrator- Calculation

Agent Agreement (BA-CA Agreement) for smooth conduct of the calculation agent activity. During the

year under review, FBIL has put in place a policy framework for outsourcing of calculation activity to third

parties. The policy, inter alia, contains i) the objective, scope and applicability ii) general requirements iii)

control framework, and iv) operational risk and BCP arrangement.

5. Oversight Committee:

I. The Oversight Committee [OC], which was constituted in September 2015, was reconstituted during the

period ended December 31, 2021; the Committee now has nine members representing various

stakeholders such as Submitters, Calculating Agents, market associations like FIMMDA, FEDAI and PDAI,

Corporate users and two Directors from the FBIL Board. A representative from the RBI participates in the

committee deliberations as an observer. The Chair of the OC who till it reconstitution was chaired by the

Chairperson of FBIL, is now chaired by an independent director of FBIL.

II. During the year under review, the OC held eight meetings and deliberated and reviewed issues relating to

the improvement/modification of the existing benchmarks including their methodologies and submission

process, benchmark performance, audit reports and the status of their compliance.

20th


21th


III. A Summary Minutes of the meetings of the OC is placed on the website of FBIL, starting from its 38th

Meeting conducted on January 16, 2020.

IV. In line with the best practices in this regard, the statements of declaration of interests by the members of

the Oversight Committee for the FY 2018-19, FY 2019- 20 and FY 2020 – 21 have been placed on the

website of FBIL.

6. HR Issues:

I. Human Resources Policy: During the year, FBIL consolidated and updated its policy on staff leave, facilities,

evaluation of staff performances and adopted the HR policy covering staff recruitment, training,

promotion, compensation and retirement.

II. During the year, FBIL recruited one officer at the level of Assistant Manager to support its daily operations.

III. One officer was imparted training on the basics of fixed income securities conducted by FIMMDA. The

seminar on LIBOR transition conducted by ISDA over virtual mode was attended by one senior officer.

7. External Audit of Benchmark Administration:

FBIL appointed M/s. M. P. Chitale & Co., Chartered Accountants, as auditor to conduct management audit,

to evaluate the benchmark administration activities of FBIL with specific reference to the guidelines

issued by RBI for the Financial Benchmarks Administrators vide their Notification No.

FMRD.FMSD.18/2019 dated June 26, 2019 and IOSCO's Final Report 'Principles for Financial Benchmarks.

The scope of external audit covered the fifteen months period starting from January 2019 to March 2020.

The auditors have since submitted the Management Audit report and comments in this report have been

addressed.

8. External Audit of Calculation of Benchmarks:

FBIL has appointed M/s. Borkar & Muzumdar, Chartered Accountants, to audit the calculation of the

published benchmarks where CCIL is the Calculating Agent such as MIBOR, MROR, Term MIBOR, FC-Rupee

Option Volatility, CD curve and T Bills curve. This audit was in addition to the audit done by the auditors

appointed by CCIL. FBIL has also appointed external auditors, M/s. Shah Gupta and Co. for audit of

calculation of benchmarks in respect of US dollar/INR Forward premia, MIFOR, MIBOR-OIS, G-sec and SDL

valuation (prices/YTM) and Reference Rates. In case of Reference Rate and valuation of G-Sec and SDL, the

audit covers all the working days of the month.

9. Usage of FBIL Benchmarks:

The benchmarks published by FBIL are largely subscribed to by domestic banks, PDs, exchanges, clearing

houses, mutual funds, corporates and overseas entities like banks, exchanges and data distributors. In

order to make FBIL self -sustaining, FBIL is pricing its various benchmarks since October 2018. However,

the G-sec and SDL valuation prices published by FBIL are still disseminated free of cost. Delayed data on

various benchmarks are available free of cost with a lag of 7 days for research and non-commercial

purposes.

As on March 31, 2021, the number of registered entities for various benchmarks is as under:

Overnight MIBOR - 101

22th


T-Bills Curve - 88

MIFOR curve - 68

MIBOR OIS - 72

Reference Rate - 209

Other benchmarks – 300

10. Financial Summary, Performance/highlights and State of FBIL's Affairs:

During the FY 2020-21, the total income from operations was ₹ 1124.93 lakhs. FBIL also earned an interest

income of ₹ 50.23 lakhs. FBIL incurred an expenditure of ₹ 489.06 lakhs during the year. The net surplus of

₹ 513.84 lakhs has been retained in the Balance Sheet under the head Reserves and Surplus, after

necessary adjustments.

11. Dividend:

No dividend has been recommended by the Board for the FY 2020-21.

12. Transfer to Reserves:

The appropriations for the year are:

13. FBIL Website:

The FBIL website( ), which was initially developed with the support of M/s SIFY www.fbil.org.in

Technologies Ltd. has since been redeveloped by the new technology vendor M/s Techouts Solutions India

Pvt Ltd. The redeveloped website, with a Disaster Recovery (DR) facility has the additional features like the

latest RDBMS database model, an application for post-publication scrutiny, separate window for

submission of USD/INR quotes as a fallback measure, improved dissemination channels like Secured File

Transfer Protocol (SFTP) and Application Programming Interface (API), Artificial Intelligence (AI)/ Machine

Learning (ML) and big-data analysis functionalities. The reach and the visibility of the website is now

increasing at a fast pace.

14. Material changes and commitments affecting the financial position of FBIL:

There were no material changes and commitments affecting the financial position of FBIL during the FY

2021 to which the financial statements relate and the date of the Report excepting the awarding of the IT

Project to M/s Techouts Solutions India Pvt Ltd at a total cost of ₹ 68,73,125/- for re-development and

implementation of the website with a DR Facility, a database model, an application for post-publication

scrutiny and with improved functionality.

Particulars Year Ended March 31, 2021 Net Profit for the year

Transfer to General Reserve

Balance of Reserve at the end of the year

₹ 5,13,84,319.59

₹ 5,13,84,319.59

₹ 11,94,24,153.86

15. Directors:

During the year under review, Shri G Ravindranath joined the FBIL Board as the Nominee Director

representing FIMMDA consequent upon the exit of Shri DVSSV Prasad as the Chief Executive Officer of

FIMMDA on completion of his term. The Directors place on record the valuable contributions made by Shri

Prasad during his tenure as the Nominee Director of the Company.

16. Number of Meetings of the Board:

The Board of Directors duly met eight times on May 6, 2020, June 25, 2020, August 14, 2020, September

16, 2020, October 29, 2020, December 21, 2020, February 8, 2021 and March 24, 2021 in respect of which

proper meeting notices were given and the proceedings were properly recorded and signed in the

Minutes Book maintained for this purpose. The intervening gap between any two consecutive meetings

was within the period prescribed under the Companies Act, 2013.

17. Particulars of Remuneration:

No managerial remuneration, except for sitting fees, was paid to the Directors. Further, none of the

employees of FBIL was in receipt of remuneration exceeding the limits prescribed under the Rule 5 (2) of

the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

18. Arrangement with Related Parties:

During the year under review, FBIL continued its contracts with the Fixed Income Money Markets and

Derivatives Association of India (FIMMDA) who are a related party, as the Calculating Agent for various

FBIL benchmarks. FBIL also continued its arrangement with M/s SIFY Technologies Ltd. for maintenance of

FBIL website till August 18, 2020. The details are shown in the Form AOC 2 pursuant to the provisions of

the section 188 of the Companies Act, 2013.

Form No. AOC-2 pursuant to the Section 134(3) (h) of the Act, read with the Rule 8 (2) of the Companies

(Accounts) Rules, 2014 has been provided in the Annex I and the same forms part of this Report.

19. Particulars of loans, guarantees or investments:

The loans, guarantees and investments, if any, have been disclosed in the annual accounts of FBIL.

20. Auditors:

Messrs. M. P. Chitale & Co., Chartered Accountants were re-appointed as the statutory auditors of FBIL in

the Sixth Annual General Meeting held on 16th September 2020 and they will hold office till the

conclusion of the Annual General Meeting (AGM) to be held in the calendar year 2025. In view of the

Companies (Amendment) Act, 2017, the ratification for appointment of auditors is not required at every

Annual General Meeting once the auditors have been appointed for a term of five years. However, their

remuneration is required to be approved by the shareholders in the forthcoming Annual General Meeting.

There are no qualifications, reservations or adverse remarks or disclaimers made by M/s. M. P. Chitale &

Company, Statutory Auditors, in their report.

21. Directors' Responsibility Statement:

Pursuant to the provisions of the section 134(5) of the Companies Act, 2013, your Directors state that:

I. In the preparation of the annual accounts, the applicable accounting standards have been followed

23th


24th


and there has been no material departure from the same.

II. The Directors have selected such accounting policies and applied them consistently and made

judgments and estimates that are reasonable and prudent so as to give a true and fair view of the

state of affairs of FBIL as at March 31, 2020.

III. The Directors have taken proper and sufficient care for the maintenance of adequate accounting

records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of

FBIL and for preventing and detecting fraud and other irregularities.

IV. The Directors have prepared the annual accounts on a 'going concern' basis.

V. The Directors have devised proper systems to ensure compliance with the provisions of all

applicable laws and that such systems were adequate and were operating effectively.

Pursuant to the provisions of the section 134(5) of the Companies Act, 2013, your Directors state that:

22. Conservation of Energy, Technology Absorption and Foreign Exchange Earning and Outgo:

A. Conservation of Energy and Technology Absorption

Since FBIL does not own any manufacturing facility, the particulars relating to conservation of energy and

technology absorption stipulated in the Companies (Accounts) Rules, 2014 are not applicable to it.

B. Research and Development

FBIL at present has no Research and Development Facilities.

C. Foreign Exchange Earnings and Outgo:

1. Earnings in Foreign Exchange - ₹ 4,12,50,000/-

2. Expenses in Foreign Exchange - ₹ 4,85,710/-

23. Subsidiary, Associate and Joint Venture Companies:

During the year under review, FBIL did not have any subsidiary, associate and joint venture company.

24. Risk Management Policy:

The management of FBIL, through the meetings of its Oversight Committee & Board reviews, identifies,

monitors and mitigates various risk aspects having negative consequences on FBIL's business and financial

position. To take care of the operational risks, including continuity of its business operations, FBIL has

redeveloped its website with cloud-computing platform ensuring un-interrupted accessibility of the

website and related benchmarks administration services, made operational the work-from- home /

remote location infrastructure, set up its alternative physical functional site at FIMMDA office with the

requisite hardware and software support, from where benchmarks are published on a quarterly basis as

DR operations. During the year under review and thereafter, the Board has been continually evaluating

operational risks and BCP arrangements of the Company (including the Work-From-Home policy &

procedure).

25. Extract of the Annual Return:

An extract of the annual return, as provided under the section 92(3) of the Companies Act, 2013 in Form

MGT-9 which forms part of this Report is placed below. The same is also placed on the website of FBIL.

25th


26. General:

The Directors state that no disclosure or reporting is required in respect of the following items, as there

were transactions on these items during the year under review:

i. Details relating to deposits covered under Chapter V of the Companies Act, 2013.

ii. Issue of equity shares with differential rights as to dividend, voting or otherwise.

iii. Issue of shares (including sweat equity shares) to employees of FBIL under any scheme.

iv. The provisions relating to Corporate Social Responsibility are not applicable to FBIL.

v. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact

the 'going concern' status and the operations of FBIL in future.

27. Appreciation:

The Directors wish to place on record their gratitude to the officials of the Reserve Bank of India for their

continued support and co-operation. The Directors also place on record the services rendered by the

employees of FBIL and gratitude to the FBIL Benchmark users, bankers, FIMMDA, FEDAI, IBA, CCIL, SIFY

Technologies Ltd., M/s Techouts Solutions India Pvt Ltd and other service providers for their continued

support and co-operation.

28. Plans for the next year:

● FBIL is currently working on a methodology for the construction of ZCYC on the SDL. A draft version of the

methodology document was placed on its website for public comments. The methodology for SDL ZCYC

will be finalised soon.

● FBIL in consultation with market participants intends to work on the valuation framework for Indian rupee

swaptions.

● FBIL will carry out a comprehensive review of the SDL methodology currently being used.

● During the ensuing year, FBIL intends to work on the development of indices on the G-Sec and Treasury

Bills.

● During the year FBIL intends to carry out a study on the feasibility of developing a benchmark

methodology for valuation of Commercial Papers (CP).

● FBIL intends to publish Reference Rates for additional currencies after consultation with market

participants.

● FBIL will continue to explore the possibilities of working with the market to develop and publish new

benchmarks.

For and on behalf of the Board

USHA THORAT

Chairperson

DIN No: 00542778

Place: Mumbai

Date: July 29, 2021

Form for disclosure of particulars of contracts/arrangements entered into by the company with related

parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm's length

transactions under third proviso thereto

1. Details of contracts or arrangements or transactions not at arm's length basis :

(a) Name(s) of the related party and nature of relationship:

None during the year under review

(b) Nature of contracts/ arrangements / transactions

None during the year under review

(c) Duration of the contracts / arrangements / transactions

Not applicable

(d) Salient terms of the contracts or arrangements or transactions including the value, if any:

Not applicable

(e) Justification for entering into such contracts or arrangements or transactions

Not applicable

(f) Date (s) of approval by the Board

Not applicable

(g) Amount paid as advances, if any

Not applicable

(h) Date on which the special resolution was passed in general meeting as required under first proviso to

Section 188

Not applicable

ANNEX I Form No. AOC-2

(Pursuant to clause (h) of sub-section (3) of section 134 of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014)

26th


2. Details of material contracts or arrangements or transactions at arm's length basis

(a) Name(s) of the related party and nature of relationship:

(a) 1. M/s Sify Technologies Ltd. – Common Director.

2. FIMMDA - Shareholder

(b) Nature of contracts/ arrangements / transactions:

1. M/s Sify Technologies Ltd. – Technology service provider (AMC till August18, 2020)

2. FIMMDA – Calculation Agent for G-Sec/SDL.

(c) Duration of the contracts / arrangements / transactions:

1. M/s Sify Technologies Ltd. – Valid till - August 18, 2020

(d) Salient terms of the contracts or arrangements or transactions including the value, if any:

1. Sify Technologies Ltd. - ₹ 1,66,250 /-

2. FIMMDA - Nil

(e) Date (s) of approval by the Board, if any:

1. Sify Technologies Ltd. - 28th December 2016

(f) Amount paid as advances, if any: Nil


U SHA THORAT

Chairperson

DIN No: 00542778

Place: Mumbai

Date: July 29, 2021

27th


Form No. MGT-9

EXTRACT OF ANNUAL RETURN as on financial year ended on 31st March 2021

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12 (1) of the Companies (Management and Administration) Rules, 2014]

ANNEXURE II

I. REGISTRATION AND OTHER DETAILS:

i) CIN : U67190MH2014PTC260049

ii) : 09TH December, 2014 Registration Date

iii) : Financial Benchmarks India Private Limited Name of the Company

iv) : Company Limited by Shares Category / Sub-Category of the Company

Indian Non-Government Company

v) : 202-203, Peninsula Centre, Address of the Registered office and contact details

S. S Road, Dr. Babasaheb Ambedkar Road,

Parel, Mumbai 400012.

vi) : No Whether listed company

vii) Name, Address and Contact

details of Registrar and Transfer Agent, if any: : Not Applicable

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY :

All the business activities contributing 10 % or more of the total turnover of the company shall be stated :-

Sl.No.

Name and Description of main products / services

NIC code of theProduct / Service

% To total turnover of the company

1 Administration of Financial Benchmarks for RupeeInterest Rates, Foreign Exchange & Others

- 100%

2

3

28th


Category of Shareholders

No. of Shares held at the beginning of the year

No. of Shares held at the end of the year %

change duringthe year

Demat Physical Total % ofTotal shares

Demat Physical Total % ofTotal Shares

A. Promoters

(1) Indian

a) Individual / HUFb) Central Govtc) State Govt(s)d) Bodies Corp. 1000000 1000000 100 1000000 1000000 100 0e) Banks / FIf) Any Other

Sub-total (A) (1) : 1000000 1000000 100 1000000 1000000 100 0

(2) Foreign

a) NRIs - Individualb) Other - Individualc) Bodies Corp.d) Banks / FIe) Any Other

Sub-total (A) (2) : 0 0 0 0 0 0 0

Total shareholding of Promoter (A) = (A)(1) + (A) (2)

1000000 1000000 100 1000000 1000000 100 0

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sl.No.

Name and Address of the Company

CIN / GLN Holding /Subsidiary / Associate

Applicable Section

1 Fixed Income MoneyMarket and Derivatives Association of India

U67120MH1998GAP114753 Holding 2(46)

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

(i) Category-wise Share Holding

29th


B. Public Shareholding

(1) Institutions

a) Mutual Funds b) Banks/FI c) Central Govt d) State Govt(s) e) Venture Capital Funds f) Insurance Companies g) FIIs h) Foreign Venture Capital Funds i) Others (specify)

Sub-total (B) (1) : 0 0 0 0 0 0 0

(2) Non-Institutions

a) Bodies Corp.I) Indianii) Overseas

b) Individual

i) shareholders holding nominal share capital uptoRs.1 lakhii) Individual shareholders holding nominalshare capital in excess of Rs.1 lakhc) Others (specify)

Sub-total (B) (2) : 0 0 0 0 0 0 0

Total Publicshareholding (B) = (B) (1) + (B) (2)

0 0 0 0 0 0 0

C. Shares held by Custodian for GDRs & ADRs

0 0 0 0 0 0 0

Grand Total (A+B+C) 1000000 1000000 100 1000000 1000000 100 0

30th


(ii) Shareholding of Promoters

Sl.No. Shareholder’s Name Shareholding at the beginning of the year Shareholding at the end of the year

No. of Shares

% Of total Shares of theCompany

% Of Shares pledged/ encumbered to total shares

No. of Shares

% Of total Shares of the Company

% Of Shares Pledged /encumbered to total shares

% change in shareholding during the year

1 Fixed Income Money Market & DerivativesAssociation of India

760000 76 0 760000 76 0 0

2 Foreign Exchange Dealers’ Associationof India

140000 14 0 140000 14 0 0

3 Indian Banks’Association

100000 10 0 100000 10 0 0

Total 1000000 100 0 1000000 100 0 0

(iii) Change in Promoters' Shareholding (please specify, if there is no change)

Sl.No.

Shareholding at the beginning of the year Cumulativeduring the year

Shareholding

No. of shares % of total shares of the Company

No. of shares % of total shares of theCompany

At the beginning of the year 1000000 100 1000000 100

Date wise Increase/ Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g.allotment/transfer/bonus/ sweat equity etc.):

0 0

At the End of the year 1000000 100 1000000 100

There is no change

There is no change

1.

2.

31th


(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRS) :

--- Not Applicable ---

Sl.No.

Shareholding at the beginning of the year

Cumulative Shareholdingduring the year

For each of the Top 10 Shareholders No. of shares % of totalshares of the Company

No. of shares % of total shares ofthe Company

At the beginning of the year

Date wise Increase / Decrease in Shareholding during the year specifying the reasons for increase / decrease ( e.g., allotment / transfer / bonus / sweat equity etc.)

At the End of the year (or on the date of separation, if separated during the year)

(v) Shareholding of Directors and Key Managerial Personnel: Not Applicable

Sl.No.

Shareholding at the beginning of the year

Cumulative Shareholdingduring the year

For each of the Directors and KMP No. of shares % of totalshares of the Company

No. of shares % of total shares ofthe Company

At the beginning of the year

Date wise Increase / Decrease in Shareholding during the year specifying the reasons for increase / decrease (e.g., allotment / transfer / bonus / sweat equity etc.)

At the End of the year

32th


V. INDEBTEDNESS Indebtedness of the Company including interest outstanding/accrued but not due for payment: Not Applicable

Secured Loans excludingdeposits

Unsecured Loans

Deposits Total Indebtedness

Indebtedness at the beginning of the financial year

I) Principal Amountii) Interest due but not paidiii) Interest accrued but not due

Total (i + ii + iii) Nil Nil Nil Nil

Change in Indebtedness during the financial year

● Addition

● Reduction

Net Change Nil Nil Nil Nil

Indebtedness at the end of the financial yearaI) Principal Amountii) Interest due but not paidiii) Interest accrued but not due

Total (i + ii + iii) Nil Nil Nil Nil

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager: Not Applicable

Sl.No.

Particulars of Remuneration Name of MD/ WTD/ Manager Total Amount

1 Grosss alary(a) Salary as per provisions contained in section 1 7(1) of theIncome-tax Act, 1961

(b) Value of perquisites u/s

33th


17(2) Income-tax Act, 1961

© Profits in lieu of salary under section 17(3) Income-tax Act, 1961

2 Stock Option

Sweat Equity

4 Commission

- as % of profit

- others, specify

5 Others, please specifyTotal (A) Nil Nil Nil Nil Nil

Ceiling as per the Act

Sl.No.

Particulars of Remuneration

Name of the Directors Total AmountFigs in ₹

Dr Anand Srinivasan

Shri A N Appaiah

3 Independent Directors ● Fee for attending board committee meetings

● Commission on

● Others, please specify (OC Meeting)

2,40,000/-

40,000/-

2,80,000/-

Total (1) 2,80,000/- 2,80,000/- 5,60,000/-

4. Other Non-Executive Directors

Mrs. Usha Thorat

ShriCESAzariah

Shri G Ravindranath (w.e.f October 29, 2020) *$

Shri Ashwani Sindhwani $$

Shri G M Bhagat (w.e.f August 14, 2020) **

Shri Himadri Bhattacharya

34th


Fee for attending board committee meetings

Commission

Others, please specify (OC & Sub Committee)

3,20,000 /-

2,40,000/-

2,80,000/-

5,30,000 /-

Total (2) 5,60,000/- 3,20,000/- 3,20,000/- 2,80,000/- 2,40,000/- 8,50,000/- -- --- 25,70,000/-

Total (B) = (1+ 2)

5,60,000/- 3,20,000/- 3,20,000/- 2,80,000/- 2,40,000/- 8,50,000/- 2,80,000/- 2,80,000/- 31,30,000/-

Total Managerial Remuneration

Overall Ceilingas per the Act

* Shri D.V.S.S.V. Prasad till September 30, 2020

** Shri B Raj Kumar till May 31, 2020

$ Paid sitting fees of ₹.5,30,000/-for OC & Sub- Group meetings to FIMMDA

$$ Paid sitting fees of ₹.3,20,000/-for OC meetings to FEDAI

# The Fee for attending board meetings/committee meetings have been paid to their respective

nominating promotor institutions and not to the stated Directors.

B. Remuneration to other Directors:

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/ WTD: [Not Applicable to

Private Companies]

Sl.No. Particulars of Remuneration Key Managerial Personnel

CEO CompanySecretary

CFO Total

1 Gross salary(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961

₹ 67,41,937/- - - ₹ 67,41,937/-

(b) Value of perquisites u/s 17(2) Income- - tax Act, 1961

© Profits in lieu of salary under

2 Stock Option

section 1 7 ( 3 ) Income tax Act, 1961

35th


3,20,000 /- 2,40,000/- 3,20,000 /-3,20,000/-

3 Sweat Equity

4 Commission

- as % of profit- others, specify

5 Others, please specify

Total ₹ 67,41,937/- - ₹ 67,41,937/--

VII. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES

Type Section of the Companies Act

Brief Description

Details of Penalty / Punishment/ Compoundingfees imposed

Authority [RD /NCLT/ COURT]

Appeal made, any if(give Details)

A. COMPANY NILPenalty

Punishment

CompoundingB. DIRECTORS Nil

Penalty

Punishment

Compounding

C. OTHER OFFICERS IN DEFAULT NilPenalty

Punishment

Compounding


USHA THORAT

Chairperson

DIN No: 00542778

Place: Mumbai

Date: July 29 , 2021

36th


Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying Financial Statements of Financial Benchmarks India Private Limited

(the 'Company'), which comprise the Balance Sheet as at March 31, 2021, and the Statement of Profit

and Loss and the Statement of Cash Flows for the year ended on that date, and notes to the Financial

Statements, including a summary of significant accounting policies and other explanatory information

(hereinafter referred to as the 'Financial Statements').

In our opinion and to the best of our information and according to the explanations given to us, the

aforesaid Financial Statements give the information required by the Companies Act, 2013 (the 'Act') in

the manner so required and give a true and fair view in conformity with the accounting principles

generally accepted in India including the Accounting Standards prescribed under Section 133 of the Act

read with Rule 7 of Companies (Accounts) Rules, 2014 (hereinafter referred to as the 'Accounting

Standards'), as amended, of the state of affairs (financial position) of the Company as at March 31, 2021,

and its profit (financial performance) and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Financial Statements in accordance with the Standards on Auditing (the

'SAs') specified under Section 143 (10) of the Act. Our responsibilities under those Standards are further

described in the 'Auditor's Responsibilities for the Audit of the Financial Statements' section of our

report.

We are independent of the Company in accordance with the Code of Ethics issued by the Institute of

Chartered Accountants of India (the 'ICAI') together with the ethical requirements that are relevant to

our audit of the Financial Statements under the provisions of the Act and the Rules made thereunder,

and we have fulfilled our other ethical responsibilities in accordance with these requirements and the

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

FINANCIAL BENCHMARKS INDIA PRIVATE LIMITED

37th


ICAI's Code of Ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our audit opinion on the Financial Statements.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of Other Information. The Other

Information comprises the information included in the Directors' Report including Annexures to

Directors' Report (collectively called as 'Other Information') but does not include the Financial

Statements and our auditor's report thereon. The Other Information is expected to be made available to

us after the date of this auditor's report.

Our opinion on the financial statements does not cover the Other Information and we do not express

any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the Other

Information and, in doing so, consider whether the Other Information is materially inconsistent with the

Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially

misstated.

When we read the Other Information, if, we conclude that there is a material misstatement therein, we

are required to communicate the matters to those charged with governance.

Responsibilities of Management for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134 (5) of the Act with

respect to the preparation of these Financial Statements that give a true and fair view of the state of

affairs (financial position) and profit or loss (financial performance) and cash flows of the Company in

accordance with the accounting principles generally accepted in India, including the Accounting

Standards.

This responsibility also includes maintenance of adequate accounting records in accordance with the

provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting

frauds and other irregularities; selection and application of appropriate accounting policies; making

judgements and estimates that are reasonable and prudent; and design, implementation and

maintenance of adequate internal financial controls, that were operating effectively for ensuring the

accuracy and completeness of the accounting records, relevant to the preparation and presentation of

38th


the Financial Statements that give a true and fair view and are free from material misstatement,

whether due to fraud or error.

In preparing the Financial Statements, management is responsible for assessing the Company's ability

to continue as a going concern, disclosing, as applicable, matters related to going concern and using the

going concern basis of accounting unless management either intends to liquidate the Company or to

cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's responsibilities for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole

are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that

includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an

audit conducted in accordance with SAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users taken on the

basis of these Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional

scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud

or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that

is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting and,

based on the audit evidence obtained, whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we

39th


conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to

the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our

opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's

report. However, future events or conditions may cause the Company to cease to continue as a going

concern.

• Evaluate the overall presentation, structure and content of the Financial Statements, including the

disclosures, and whether the Financial Statements represent the underlying transactions and events in

a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned

scope and timing of the audit and significant audit findings, including any significant deficiencies in

internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant

ethical requirements regarding independence, and to communicate with them all relationships and

other matters that may reasonably be thought to bear on our independence, and where applicable,

related safeguards.

Report on Other Legal and Regulatory Requirements

(I) As required by the Companies (Auditor's Report) Order, 2016 (the 'Order') issued by the Central

Government of India in terms of Section 143 (11) of the Act, we give in "Annexure A", a statement on the

matters specified in the paragraph 3 and 4 of the Order to the extent applicable.

(ii) As required by sub-section (3) of Section 143 of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge

and belief were necessary for the purposes of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it

appears from our examination of those books;

(c) The Balance Sheet and the Statement of Profit and Loss and, the Statement of Cash Flows dealt with by

this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid Financial Statements comply with the Accounting Standards prescribed

under Section 133 of the Act, read with Rule 7 of Companies (Accounts) Rules, 2014, as amended;

(e) On the basis of written representations received from the Directors as on March 31, 2021 and taken on

40th


record by the Board of Directors, in its 47th meeting held on May 19, 2021, none of the directors is

disqualified as on March 31, 2021, from being appointed as a director in terms of Section 164 (2) of the

Act;

(f) With respect to the adequacy of the internal financial controls with respect to financial statements of

the Company and the operating effectiveness of such controls; as per the amendment vide G. S. R.583

(E) Notification No. 1/2/2014- CL- V dated June 13, 2017, Section 143 (3) (i) of the Act shall not be

applicable to the Company;

(g) With respect to the other matters to be included in the Auditor's Report in accordance with the

requirements of section 197 (16) of the Act, as amended:

In our opinion and to the best of our information and according to the explanations given to us, the

provisions of Section 197 read with Schedule V of the Act are not applicable to the Company; and

(h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of

the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and

according to the explanations given to us:

(i) The Company does not have any pending litigations which would impact its financial position;

(ii) The Company did not have any long-term contracts including derivative contracts for which there were

any material foreseeable losses;

(iii) There were no amounts which were required to be transferred to the Investor Education and Protection

Fund by the Company.

For M. P. Chitale & Co.

Chartered Accountants

ICAI Firm Registration No.: 101851W

Anagha Thatte

Partner

ICAI Membership No.: 105525

UDIN : 21105525AAAAFJ6346

Place : Mumbai

Date : July 29, 2021

41th


(Referred to in paragraph (i) under 'Report on Other Legal and Regulatory Requirements' section of our

report of even date to the Members of the Company)

We report that:

i) (a) The Company is maintaining proper records showing full particulars, including quantitative

details and situation of all fixed assets.

(b) According to the information and explanations given to us, the fixed assets were physically

verified during the year by the management and we are informed that no material discrepancies

were noticed on such verification.

(c) According to the information and explanations given to us, the Company owns no immovable

property, hence this clause is not applicable to the Company.

ii) The Company is a service company, Accordingly, it does not hold any physical inventories. Thus,

paragraph 3 (ii) of the Order is not applicable.

iii) According to the information and explanations given to us, the Company has not granted any

loans, secured or unsecured, to companies, firms, Limited Liability Partnerships and other

parties covered in the register maintained under Section 189 of the Companies Act, 2013.

Accordingly, paragraphs 3(iii) (a), (b) and (c) of the Order are not applicable.

iv) According to the information and explanations given to us, the Company has not given any loan,

guarantee, made investment, nor provided any security under of the provisions of Sections 185

and 186 of the Act.

v) According to the information and explanations given to us, the Company has not accepted

deposits from the public in terms of provisions of Sections 73 to 76 of the Companies Act, 2013.

vi) According to the information and explanations given to us, the Central Government has not

prescribed the maintenance of cost records under Section 148 (1) of the Companies Act, 2013 for

any of the services rendered by the Company. Accordingly, paragraph 3(vi) of the Order is not

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF


42th


applicable to Company.

vii) (a) According to the information and explanations given to us and on the basis of our examination of

the records of the Company, in our opinion, the Company is generally regular in depositing

undisputed statutory dues including income-tax, goods and service tax, cess and other material

statutory dues, as applicable, with the appropriate authorities.

(b) As at the year-end, according to the records of the Company and information and explanations

given to us, there were no disputed statutory dues payable in respect of income tax, goods and

service tax and duty of customs except for the cases listed out below:

viii) According to the records of the Company examined by us and the information and explanations

given to us, the Company has neither availed any loans nor made borrowings from financial

institutions, banks or Government as at the balance sheet date. The Company has not issued

debentures. Hence, this clause pertaining to default is not applicable to the Company.

ix) The Company did not have any term loans outstanding during the year.

x) According to the information and explanations given to us and on the basis of representation of

the management which we have relied upon, no fraud by the Company or on the Company by its

officers or employees has been noticed or reported during the year.

xi) According to the information and explanations given to us the provisions of Section 197 read with

Schedule V of the Act are not applicable to the Company. Accordingly, the provisions of paragraph

3(xi) of the Order are not applicable to the Company.

xii) Since the Company is not a Nidhi company, paragraph 3(xii) of the Order is not applicable to the

Company.

xiii) According to the information and explanations given to us, all transactions with the related

Name of Statute

Nature of amount disputed

AmountPeriod to

which amountrelated

Forum wheredispute ispending

Remarks, ifany

Income TaxAct, 1961

Set-off of otherincome againstbusiness loss

6,20,840/- A. Y. 2018-19 Commissioner(Appeals)

Appeals filedon December

5, 2019

43th


parties are in compliance with Sections 177 and 188 of the Act as applicable and the details of

such transactions have been disclosed in the Financial Statements as required by the applicable

Accounting Standards.

(xiv) The Company has not made any preferential allotment or private placement of shares or fully or

partly convertible debentures during the year.

(xv) According to the information and explanations given to us, the Company has not entered into any

non-cash transactions with directors or persons connected with the directors.

(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India

Act, 1934.

For M. P. Chitale & Co. Chartered Accountants ICAI Firm Registration No.: 101851W

Anagha Thatte Partner ICAI Membership No.: 105525 UDIN : 21105525AAAAFJ6346Place : Mumbai Date : July 29, 2021

44th


( In Rs.)

FINANCIAL BENCHMARKS INDIA PVT. LTD. Balance Sheet as at 31st March 2021

Particulars Note No.As at

31-Mar-21As at

31-Mar-20

I EQUITY & LIABILITIES

1 Shareholders' Funds

(a) Share Capital 1 1,00,00,000.00 1,00,00,000.00

(b) Reserves & Surplus

(i) Profit and Loss A/c 1b 11,94,24,153.86 6,80,39,834.27

12,94,24,153.86 7,80,39,834.27

2 Current Liabilities

(a) Other Current Liabilities 27,49,250.00 -

(b) Short Term Provisions 2 4,64,70,746.94 3,14,79,860.88

4,92,19,996.94 3,14,79,860.88

17,86,44,150.80 10,95,19,695.15

II ASSETS

1 Non-current Assets

(a) Property.Plant & Equipment 4

(i) Tangible assets 4,26,017.47 4,09,979.65

(ii) Intangible assets 57,54,244.19 1.00

(b) Long-term Loans & Advances 5 31,62,111.00 8,62,111.00

93,42,372.66 12,72,091.65

2 Current Assets

(a)Trade Receivables(Unsecured, Considered Good) 15,75,918.00 51,40,000.00

(b)Cash and cash equivalents 6 12,42,77,244.17 7,79,98,088.84

(c)Other current assets 7 4,34,48,615.97 2,51,09,514.66

16,93,01,778.14 10,82,47,603.50

17,86,44,150.80 10,95,19,695.15

Additional Statements to Notes and Significant Accounting Policies 8

( In Rs.)

See accompanying notes to financial statements As per our report of even date attachedFor M.P. Chitale & Co.ICAI Chartered AccountantsFirm Registration Number .101851W

Anagha ThattePartnerICAI Membership No. 105525 Place: MumbaiDate: July 29, 2021

Usha ThoratChairperson

Rudra Narayan KarChief Executive Officer

G RavindranathDirector

Ashwani SindhwaniDirector

C.E.S AzariahDirector

Himadri BhattacharyaDirector

A.N, AppaiahDirector

Dr. Anand SrinivasanDirector

Gopal Murli BhagatDirector

45th


( In Rs.)

FINANCIAL BENCHMARKS INDIA PVT. LTD.Profit and Loss for the year ended 31st March 2021

Particulars Note No.As at

31-Mar-21As at

31-Mar-20

I REVENUE FROM OPERATIONS 11,24,93,751.33 9,76,25,000.00

II OTHER INCOME 9 50,97,468.98 31,83,795.90

IV TOTAL REVENUE 11,75,91,220.31 10,08,08,795.90

V EXPENSES

(a) Operating Expenses 10 2,41,14,754.91 2,04,09,806.00

(b) Finance cost 11 - 5,35,249.00

(c) Employee Benefits Expenses 12 1,64,25,371.22 1,15,69,921.00

(d) Directors Fees 31,30,000.00 32,00,000.00

(e) Depreciation and amortisation 12,98,724.59 61,552.41

(f) Legal & Professional Fees 34,71,050.00 27,04,300.00

(g) Auditors Remuneration

Audit Fees 60,000.00 60,000.00

Other Services 3,50,000.00 -

Tax Matters 40,000.00 40,000.00

Certification Fees 7,000.00 39,000.00

Out of pocket Expenses 10,000.00 7,000.00

Total Expenses 4,89,06,900.72 3,86,26,828.41

VI Profit before Tax 6,86,84,319.59 6,21,81,967.49

VII PY Tax Expense - 1,11,680.00

VIII CY Tax Expense 1,73,00,000.00 1,56,44,053.00

IX Profit for the year 5,13,84,319.59 4,64,26,234.49

EARNINGS PER SHARE

Equity shares of Par value Rs 10/- each Basic & Diluted 51.38 46.43

Additional Statements to Notes and Significant Accounting Policies 8

( In Rs.)










See accompanying notes to financial statements As per our report of even date attachedFor M.P. Chitale & Co. Chartered AccountantsICAI Firm Registration Number .101851W


46th


FINANCIAL BENCHMARKS INDIA PVT. LTD. Cash Flow Statement For The Year Ended 31 March 2021

(All amounts in Rupees unless otherwise stated) (Amount in Rs.)

A. CASH FLOW FROM OPERATING ACTIVITIES :

Net Profit before Tax 6,86,84,319.59 6,21,81,967.49

Adjustments for :

Depreciation(non cash item) 12,98,724.59 61,552.41

Provision Depreciation(non cash item) - -

Taxes

Interest Income earned -

Net gain on sale of fixed assets - -

Income from Mutual Funds 6,99,83,044.18 6,22,43,519.90

Operating profit before working capital changes 6,99,83,044.18 6,22,43,519.90

Adjustments for :

Increase/ (Decrease) in short term Provisions (23,09,113.54) 90,84,692.36

Increase/ (Decrease) in long term Provisions

Increase/ (Decrease) in other Current Liabilities 27,49,250.00 -

(Increase)/ Decrease in Short term Loans & Advances - -

(Increase)/ Decrease in Long Term Loans and Advances (23,00,000.00) -

(Increase)/ Decrease in Other Current Assets (10,74,079.00) (19,12,348.18)

(Increase)/ Decrease in Trade Receivables 35,64,082.00 92,74,000.00

(Increase)/ Decrease in Other Non- current assets

(Increase)/ Decrease in Inventory

6,30,139.46 1,64,46,344.18

Cash generated from operations 7,06,13,183.64 7,86,89,864.08

Direct Taxes paid (Net of Refunds) (1,72,65,022.31) (1,72,79,598.50)

Net cash generated from operating activities 5,33,48,161.33 6,14,10,265.58

AmountIn Rupees

Year Ended 31-03-2021In Rupees

AmountIn Rupees


47th


(Amount in Rs.)

B. CASH FLOW FROM INVESTING ACTIVITIES :

Purchase of Fixed Assets (70,69,006.00) (3,91,559.52)

Sale Proceeds of Fixed Assets

Interest received On Fixed Deposits

Income from Mutual Fund

Investment Made In Mutual Fund (70,69,006.00) (3,91,559.52)

Net Cash (used in)/ generated from Investment activities (70,69,006.00) (3,91,559.52)

C. CASH FLOW FROM FINANCING ACTIVITIES :

Received in Member Contribution

Received in General Corpus Fund -

- -

Net Cash used in financing activities - -

Net (decrease)/increase in cash and cash equivalents 4,62,79,155.33 6,10,18,706.06

Opening balance of cash and cash equivalents 7,79,98,088.84 1,69,79,382.78

Closing balance of cash and cash equivalents 12,42,77,244.17 7,79,98,088.84

Cash and cash equivalents comprise of :

Cash on Hand 13,043 16,216

Saving Bank Balance 12,42,64,201.17 7,79,81,872.84

Balances with Banks

Highly liquid investments ( Fixed Deposits)

Total 12,42,77,244.17 7,79,98,088.84

AmountIn Rupees


AmountIn Rupees











In terms of our report attached

For M.P. Chitale & Co. Chartered AccountantsICAI Firm Registration Number .101851W


48th


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49th


FINANCIAL BENCHMARKS INDIA PVT LTD. Notes to the Financial Statements for year ended 31st March 2021

PARTICULARSAS AT

31th March 2021 AS AT

31th March 2020

Authorised Share Capital 5,00,00,000.00 5,00,00,000.00

Equity Shares of Rs 10/- par value 50,00,000

equity shares Issued ,subscribed, paid up equity

shares Rs 10/- par value 1,00,00,000.00 1,00,00,000.00

10,00,000 equity shares 1,00,00,000.00 1,00,00,000.00

No. of Shares

Issued Subscribed and paid up as at the 10,00,000 1,00,00,000.00 1,00,00,000.00

beginning of the year

Add : Additions during the year - - -

Issued Subscribed and paid up as at the 10,00,000 1,00,00,000.00 1,00,00,000.00

end of the year

PARTICULARSAS AT


31th March 2020

Reconciliation of No. of Shares outstanding

% of HoldingName of Share HolderAS AT


31th March 2020

The details of shareholders holding more than 5% shares as at 31st March 2021 as follows

Fixed Income Money Market And 76% 76,00,000.00 76,00,000.00

Derivatives Association Of India (Holding Co.)

Foreign Exchange Dealers Association Of India 14% 14,00,000.00 14,00,000.00

Indian Banks Association 10% 10,00,000.00 10,00,000.00 ’

Profit & Loss A/c

Balance as per last Balance Sheet 6,80,39,834.27 2,16,13,599.78

Add: Profit \ Loss for the year 5,13,84,319.59 4,64,26,234.49

Total 11,94,24,153.86 6,80,39,834.27

AS AT31th March 2021


PARTICULARS

(b) RESERVE & SURPLUS

1 SHAREHOLDER'S FUNDS (a) Share Capital

50th


PARTICULARS

PARTICULARS





Professional Fees Payables (Including Auditors remuneration) 61,27,498.40 1,16,38,620.00

Director Fees Payables - 3,24,000.00

Duties & Taxes Payables 3,58,61,542.00 1,84,45,657.00

Other Payables 44,81,706.54 10,71,583.88

Total 4,64,70,746.94 3,14,79,860.88


2 SHORT TERM PROVISIONS

6 CASH & CASH EQUIVALENTS

PARTICULARSAS AT


31th March 2020

5 LONG-TERM LOANS & ADVANCES

Deposits (Unsecured, Considered Good) 31,62,111.00 8,62,111.00

Total 31,62,111.00 8,62,111.00

Cash on hand 13,043.00 16,216.00

Balances with Banks

Maturing after twelve months 6,14,10,927.01 -

Others

I) Current Account 19,66,882.24 71,50,280.34

ii) Fixed Deposits 6,08,86,391.92 7,08,31,592.50

Total 12,42,77,244.17 7,79,98,088.84

PARTICULARSAS AT


31th March 2020

7 OTHER CURRENT ASSETS

TDS and Advance Taxes 3,73,34,522.97 2,00,69,500.66

Prepaid Expenses 30,42,485.00 30,14,860.00

Input GST Credit Available 30,71,608.00 20,25,154.00

Total 4,34,48,615.97 2,51,09,514.66

51th


PARTICULARSAS AT


31th March 2020

9 OTHER INCOME

Interest on Fixed Deposits 50,22,976.00 31,76,790.00

Other Non Operating Income 74,492.98 7,005.90

Total 50,97,468.98 31,83,795.90

PARTICULARSAS AT


31th March 2020

10 OPERATING EXPENSES

AGM Expenses 15,000.00 30,700.00

Bank Charges 1,838.66 5,154.50

Directors Insurance 93,796.00 89,634.00

Interest Paid On Taxes 5,825.00 46,451.00

Meeting & Seminar expenses - 4,12,364.00

Office Expenses 3,71,241.61 4,66,814.72

Traveling Lodging and Boarding expenses - 10,21,235.86

Calculating Agent Charges 33,50,000.00 33,50,000.00

GMS Office Boys Hiring Expenses 3,14,228.43 2,97,299.25

Website Maintenance Charges 1,76,250.00 6,57,500.00

Electricity Charges 72,202.00 87,287.00

Expense for LIBOR data 46,61,633.00 41,60,799.00

Internet & Telephone Expenses 1,04,917.45 69,397.46

Office Rent & Brokerage 27,15,000.00 14,40,000.00

Photo Copy, Miscellaneous, Postage & Courier Expenses 16,005.36 43,095.21

Skill Development Expenses 44,320.00 1,16,520.00

Stamp Duty / FIRC Charges 51,940.00 2,495.00

Datafeed Charges (CCIL & Refinitiv) 1,02,18,125.40 74,71,250.00

Software (Matlab) 3,92,432.00 1,91,809.00

OC & Sub -Group Committee Representative 15,10,000.00 4,50,000.00

Total 2,41,14,754.91 2,04,09,806.00

52th


PARTICULARSAS AT


31th March 2020

Int paid on SA Tax for The FY 2018-19 - 5,35,249.00

Total - 5,35,249.00


11 FINANCE COST

PARTICULARSAS AT


31th March 2020

Salaries and Allowances 1,64,25,371.22 1,15,69,921.00

Total 1,64,25,371.22 1,15,69,921.00

12 EMPLOYEE BENEFITS AND EXPENSES

53th


Grouping to Profit and loss Account for the Year Ended 31.03.2021

PROFIT & LOSS ITEMS GROUPING 2020-21

1 Revenue From Operations

Indian Entities 7,58,43,751.33 6,19,75,000.00

International Entities 3,66,50,000.00 3,56,50,000.00 11,24,93,751.33 9,76,25,000.00

2. Other Income

Interest On FD 50,22,976.00 31,76,790.00

Excess Provision Written Back, 74,492.98 7,005.90

Rounding Off, GST & Asset W/O, 50,97,468.98 31,83,795.90

Travelling Expenses Written

During the Year.

Total Income 11,75,91,220.31 10,08,08,795.90

F. Y. 2020-21 F. Y. 2019-20 EXPENSES

Income

1 Director Fees 31,30,000.00 32,00,000.00

31,30,000.00 32,00,000.00

2 Legal & Profession

Profession Fees Accounts 1,21,050.00 1,73,300.00

Profession Fees Companies 4,80,000.00 3,00,000.00

Secretary

Professional Fees Consultants 18,00,000.00 14,00,000.00

Concurrent Audit Fees 9,66,000.00 8,31,000.00

Legal Fees 1,04,000.00 -

34,71,050.00 27,04,300.00 -

3 Profession Fees Auditor 1,17,000.00 1,46,000.00

1,17,000.00 1,46,000.00

4 Management Audit Fees 3,50,000.00 -

3,50,000.00 -

F. Y. 2020-21 F. Y. 2019-20

54th


F. Y. 2020-21 F. Y. 2019-20 EXPENSES

5 OPERATING EXPENSES

AGM Expenses 15,000.00 30,700.00

Director Insurance 93,796.00 89,634.00

Traveling Lodging and Boarding - 10,21,235.86

expenses

Meeting & Seminar Expenses - 4,12,364.00

Office Expenses 3,71,241.61 4,66,814.72

Oc & Sub -Group Committee 15,10,000.00 4,50,000.00

Representative

Interest paid on Taxes 5,825.00 46,451.00

Calculating Agent Charges 33,50,000.00 33,50,000.00

GMS Office Boys Hiring Expenses 3,14,228.43 2,97,299.25

Website Maintenance Charges 1,76,250.00 6,57,500.00

Electricity charges 72,202.00 87,287.00

Expense for LIBOR data 46,61,633.00 41,60,799.00

Internet & Telephone Expenses 1,04,917.45 69,397.46

Office Rent & Brokerage 27,15,000.00 14,40,000.00

Photo Copy, Miscellaneous, Postage 16,005.36 43,095.21

& Courier Expenses

Skill Development Expenses 44,320.00 1,16,520.00

Stamp Duty / FIRC Charges 51,940.00 2,495.00

DataFeed Charges (CCIL & Refinitiv) 1,02,18,125.40 74,71,250.00

Software (Matlab) 3,92,432.00 1,91,809.00

2,41,12,916.25 2,04,04,651.50

6 PY Tax Expenses - 1,11,680.00

- 1,11,680.00

7 Finance Cost - 5,35,249.00

5,35,249.00


55th



PROFIT & LOSS ITEMS GROUPING 2020-21

F. Y. 2020-21 F. Y. 2019-20 EXPENSES

8 Bank Charges 1,838.66 5,154.50

1,838.66 5,154.50

9 Salary & wages

Sal Basic 1,02,59,333.00 68,23,557.00

Sal Conveyance 2,97,764.00 4,38,900.00

Sal LTA 1,75,283.00 1,20,000.00

Sal Medical Reimbursement 1,47,576.00 1,57,614.00

Sal. H.R.A 48,41,784.00 35,21,092.00

CEO Residence Rent 21,16,800.00 20,70,600.00

leave & Encashment 1,82,318.22 -

Incentive for Staff - 46,111.00

Salary Arrears / Variable Pay 5,53,389.00 5,00,000.00

Salary Interest on Security Deposit (32,076.00) (37,353.00)

Deduction / LWP

Salary Rent Deduction (21,16,800.00) (20,70,600.00)

1,64,25,371.22 1,15,69,921.00

10 Depreciation 12,98,724.59 61,552.41

12,98,724.59 61,552.41

Total Expenses 4,89,06,900.72 3,87,38,508.41

56th


BALANCE SHEET ITEMS GROUPING 2020-21

F. Y. 2020-21 F. Y. 2019-20 ASSETS

1 Investments

FD With IDBI Bank 4,49,83,265.93 2,98,88,430.50

FD WITH INDIAN BANK 4,49,47,694.00 4,09,43,162.00

FD WITH AXIS BANK 2,53,45,517.00 -

FD With HDFC Bank 70,20,842.00 - 12,22,97,318.93 7,08,31,592.50

2 Cash and Bank Accounts

IDBI Bank 13,99,508.51 13,17,780.34

Indian Bank 3,25,727.73 58,32,500.00

Cash In Hand 13,043.00 16,216.00

AXIS Bank 1,20,646.00 -

HDFC Bank 1,21,000.00 -

19,79,925.24 71,66,496.34

3 TDS

TDS Asset 3,73,34,522.97 2,00,69,500.66

3,73,34,522.97 2,00,69,500.66

4 Property, Plant & Equipment

Tangible asset 4,26,017.47 4,09,979.65

Intangible assets 57,54,244.19 1.00

61,80,261.66 4,09,980.65

5 Prepaid expenses

Prepaid Annual maintenance charges 1,75,924.00 1,98,318.00

Prepaid Internet Exp 18,140.00 0.00

Prepaid Insurance 37,421.00 35,917.00

Prepaid Expenses for LIBOR data 28,11,000.00 27,80,625.00

30,42,485.00 30,14,860.00


57th



6 Deposits

Ceo Residence 5,00,000.00 5,00,000.00

FBIL Office 26,60,000.00 3,60,000.00

MTNL 2,111.00 2,111.00

31,62,111.00 8,62,111.00

7 Input GST Credit Available

TDS On GST Input 30,71,608.00 20,25,154.00

GST Accumulated

30,71,608.00 20,25,154.00

8 Trade Receivables 15,75,918.00 51,40,000.00

15,75,918.00 51,40,000.00

TOTAL 17,86,44,150.80 10,95,19,695.15


Techouts Solution India Pvt Ltd 27,49,250.00 0.00

27,49,250.00 0.00

Provision Professional Fees

Payables (Including Auditors

remuneration)

Concurrent Audit Fees Payable 74,462.00 1,62,450.00

Other Audit Fees Payable - -

Professional Fees Accounts Payable 51,521.00 1,03,545.00

Professional Fees Auditor Payable 92,500.00 90,000.00

Calculation Agent Charges Payable - 80,46,000.00

Refinitiv Data Charges Payable 56,59,265.40 30,34,125.00

Professional Fees Consultant Payable 2,49,750.00 2,02,500.00

(Including Company Secretory)

61,27,498.40 1,16,38,620.00

F. Y. 2020-21 F. Y. 2019-20 Liabilities

F. Y. 2020-21 F. Y. 2019-20 ASSETS

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F. Y. 2020-21 F. Y. 2019-20 Liabilities



Director Fees Payables - 3,24,000.00 - 3,24,000.00

Duties & Taxes Payables

Professional Tax 2,000.00 1,800.00

TDS Liability Payable 21,77,849.00 20,03,062.00

Tax Liabilities For AY-: 2021-22 1,73,00,000.00 0.00

Provision For Tax AY-: 2020-21 1,56,44,053.00 1,56,44,053.00

GST Payable 7,37,640.00 7,96,742.00

3,58,61,542.00 1,84,45,657.00

Other Payable

Computers Account Payable - 1,43,220.20

GMS Office Boys Hiring 39,837.70 23,173.48

Charges Payable

Meeting & Seminars Expenses & 54,033.00 10,238.00

Salary Payable

Electricity Charges Payable 38,523.00 16,911.00

Website Maintenance Charges - 1,62,925.00

Payable

Internet Expenses Payable 1,904.82 1,413.64

Office Expenses Payable 36,938.00 10,413.00

Telephone Expenses Payable 5,069.00 6,962.82

Libor Data Charges Payable 39,88,206.00 4,85,710.00

Int TDS Payable 1,299.00 30,115.00

OC & Sub Group Committee 3,14,500.00 72,000.00

Representative Payable

Office Rent Payable - 1,08,000.00

Photo Copy & Courier Exp Payable 1,396.02 501.74

44,81,706.54 10,71,583.88

TOTAL LIABILITIES 4,92,19,996.94 3,14,79,860.88

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1. Company overview

Financial Benchmarks India Private Limited (FBIL) was jointly formed by Fixed Income Money Market &

Derivatives Association of India (FIMMDA), Foreign Exchange Dealers' Association of India (FEDAI) and

Indian Banks' Association (IBA). FBIL was incorporated in December 2014 and has commenced

operations in February 2015. The Company is engaged in administration of financial benchmarks in the

area of interest rates, foreign exchange and derivatives. (Financial benchmarks are indices, values or

reference rates used for the purpose of pricing, settlement and valuation of financial contracts).

2. Basis of Accounting:

The Company maintains its accounts on accrual basis following the historical cost convention in

accordance with generally accepted accounting principles ("GAAP") and in compliance with the

Accounting Standards as specified under section 133 of the companies act 2013 read with Rule 7 (1) of

Companies (Accounts) Rules, 2014 issued by the Ministry of Corporate Affairs in respect of Section 133

of the Companies Act 2013 ("the Act") including relevant amendments made thereunder.

The preparation of financial statements in conformity with GAAP requires that the management of the

Company makes estimates and assumptions that affect the reported amounts of income and expenses

of the period, the reported balances of assets and liabilities and the disclosures relating to contingent

liabilities as of the date of the financial statements. Examples of such estimates include the useful lives

of tangible and intangible fixed assets etc. Difference, if any, between the actual results and estimates

is recognized in the period in which the results are known.

The accounting policies adopted in the preparation of financial statements are consistent with those of

the previous year except stated specifically in the notes, if any.

All assets and liabilities have been classified as current or non-current as per the Company's normal

operating cycle, and other criteria set out in the Division I of Schedule III of the Companies Act, 2013.


NOTE No. 8

SIGNIFICANT ACCOUNTING POLICIES & NOTES TO ACCOUNTS

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3. Presentation of financial statements:

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format

prescribed in the Division I of Schedule III to the Act. The disclosure requirements with respect to items

in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Division I of Schedule III to

the Act, are presented by way of notes forming part of accounts along with the other notes required to

be disclosed under the notified Accounting Standards as applicable to SMC and of material nature.

4. Significant Accounting Policies:

a) Revenue Recognition:

i) The Company derives its revenue from the usage of benchmarks by the subscribers. They are

recognized as income when it is due and there is a certainty of recovery of the revenue.

ii) The Company recognizes the interest income on accrual basis.

iii) Certain uncommon / non-regular / prior period revenue is accounted on receipt basis. Due

to lack of clarity of the accrual of such revenue on the balance sheet date same was booked

in the year in which agreement was made.

iv) For rejected client or clients which are going to be rejected in the financial year no income

pertain to that was booked since there was no positive response from client.

b) Expenditure

Expenses are accounted on accrual basis and provisions are made for all known expenses,

losses and liabilities.

c) Property Plant & Equipment (PPE)

i) Tangible and Intangible Assets of the Company are stated at cost less accumulated

depreciation, whereas certain assets which were acquired by utilizing the Grant money

received from RBI are stated at nominal value.

ii) Depreciation on tangible assets (except for certain assets which are stated at nominal value)

has been provided based on useful life prescribed in Schedule II of the Companies Act, 2013 on

Straight Line basis. While calculating the depreciation on Straight Line Method, the residual

value of the assets is considered as Re.1. Depreciation and amortization is charged on a pro-

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rata basis for PPE purchased / sold during the year.

d) Intangible Assets

An intangible asset is recognized only when it's cost can be measured reliably, and it is probable

that the expected future economic benefit that are attributable to it will flow to the company.

Software and system development expenditure are capitalized at cost of acquisition including

cost attributable to readying the asset for use. Such intangible asset are subsequently

measured at cost less accumulated amortization. The useful life of this intangible assets is

estimated at five years with zero residual value. Any expenses on such a software for support

and maintenance payable annually are charged to the statement of profit and loss.

The residual value, useful life and methods of amortization are reviewed at each financial year

end and adjusted prospectively if appropriate. Changes in the expected useful life are

accounted for by changing the depreciation period or methodology, as appropriate, and

treated as changes in accounting estimates. Intangible assets (software items) are amortized

over a period of 43 months.

Income Tax

Tax on income is determined on taxable income based on the applicable provisions of Income

Tax Act, 1961.

e) Earnings per Share

Earnings per share (EPS) is calculated as per Accounting Standard 20 by dividing the net profit /

loss by weighted average number of equity shares.

5. Related Party Disclosure:

List of related parties:

Fixed Income Money Market and 76

Derivatives Association of India

Foreign Exchange Dealers Association of 14’

India

Indian Banks Association 10 ’

Names of Shareholders Share Holding(%)

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Key Managerial Personnel

Ms. Usha Thorat Non-executive Director (Chairperson)

Mr. D.V.S.S.V. Prasad (Till September 30, 2020) Non-executive Director

Mr. G Ravindranath (From October 29, 2020) Non-executive Director

Mr. Ashwani Sindhwani Non-executive Director

Mr. B. Raj Kumar (Till May 31, 2020) Non-executive Director

Mr. G M Bhagat (From August 14, 2020) Non-executive Director

Mr. C. E. S. Azariah Non-executive Director

Mr. Himadri Bhattacharya Non-executive Director

Mr. A. N. Appaiah Independent Director

Dr. Anand Srinivasan Independent Director

Mr. Rudra Narayan Kar Chief Executive Officer (CEO)

Other Related Parties Nature of relationship

Sify Technologies Limited (AMC till August 18, 2020) Common Director

Transactions with Related parties

The details of related party transactions entered into by the Company for the year ended 31st March

2021 (Payment for the period of relationship with reporting entity):

Name of Related partyNature of

TransactionYear Ended

31st March 2021Year Ended

31st March 2020

Fixed Income Money Market and

Derivatives Association of India

(OC & Sub Group Meetings were attended

by their Dy CEO, other than the Director)

Director's Sitting

Fees (Including OC

Committee & Sub

Group Sitting Fees

₹. 5,30,000/-)

₹. 8,50,000/- ₹. 7,20,000/-

Foreign Exchange Dealers Association of ’

India

(OC & Sub Group Meetings were attended

by their Dy CE, other than the Director

and ₹,30,000/- Receivable from FEDAI)

Director's Sitting Fees (Including OC Committee Fees ₹. 3,20,000/-)

₹. 6,00,000/- ₹. 2,00,000/-

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Name of Related partyNature of

TransactionYear Ended

31st March 2021Year Ended

31st March 2020

Indian Banks Association ’ Director's Sitting

Fees ₹. 2,40,000/- ₹. 1,60,000/-

Ms. Usha Thorat Director's Sitting Fees (Including OC Committee Fees )

₹. 5,60,000/- ₹. 5,20,000/-

Mr. C. E. S. Azariah Director's Sitting Fees

₹. 3,20,000/- ₹. 5,20,000/-

Mr. Himadri Bhattacharya Director's Sitting Fees (Including OC Committee & Sub Group Sitting Fees)

₹. 8,50,000/- ₹. 7,60,000/-

Mr. A. N. Appaiah Director's Sitting Fees

₹. 2,80,000/- ₹. 1,60,000/-

Dr. Anand Srinivasan Director's Sitting Fees (Including OC Committee Sitting Fees)

₹. 2,80,000/- ₹. 2,00,000/-

Mr. Rudra Narayan Kar, CEO Remuneration to CEO

₹. 67,41,937/- ₹. 59,99,996/-

Sify Technologies Limited* (For AMC till August 18, 2020)

Website Maintenance Charges

₹. 1,66,250/- ₹. 6,57,500/-

* The payment made to Sify Technologies Limited is exclusive of GST.

6. There are no encumbrance or restrictions on the title of property, plant and Equipments of the Company.

Further no items of PPE are pledged as security for liabilities of the Company.

7. The Revenue from Operations of the Company (₹ 11,24,93,751/33 in Current year and Rs. 9,76,25,000/-

in previous year) consists of Revenue from users of various Benchmarks published by Company. It

includes Indian Entities (₹. 7,58,43,751/33 in Current Year and ₹. 6,19,75,000/- in previous year) and

International Entities (₹.3,66,50,000/- in Current Year and ₹. 3,56,50,000/- in previous year).

8. Foreign Exchange outgo of the Company during the year was equivalent to ₹ 39,59,152/-.

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9. Company's foreign exchange earnings during the year was equivalent to ₹.4,12,50,000/-.

10. As on the Balance Sheet date, there was no amount exceeding ₹ 1 lakh due to any Small- Scale Industrial

undertaking and outstanding for more than 30 days.

11. The Company has filed an appeal against an Intimation from Income Tax Department for the A. Y. 2018-

19, for an outstanding demand amounting to ₹. 6,20,840/- The Company expects a favourable result in

this appeal, and hence no provision for tax pertaining to this demand has been made in the books of

account.

12. The Board of Director of the Company had approved a project for upgradation of Company's IT systems,

for which an agreement had been entered into by the Company with the technology vendor on May 29,

2020 which came into force w.e.f. April 1, 2020.There are no capital commitments which are outstanding

as on March 31, 2021.

13. Previous year's figures are regrouped, reclassified, and rearranged wherever necessary.

65th











For M.P. Chitale & Co. Chartered AccountantsICAI Firm Registration Number .101851W


As per our report of even date attached For and on behalf of the Board of Directors Financial Benchmarks India Private Ltd.

66th


FBIL BOARD MEETING

FBIL OVERSIGHT COMMITTEE MEEETING

67th


KAVITA SHENOY

ASST. MANAGER (OPERATIONS)

DEVLEENA DASGUPTA

ASST. MANAGER (OPERATIONS)

ASIT KUMAR ROY

VICE - PRESIDENT (SYSTEMS)

SARBESWAR LENKA

DEPUTY CHIEF EXECUTIVE OFFICER

FBIL SECRETARIAT

RUDRA NARAYAN KAR

CHIEF EXECUTIVE OFFICER

ASHOK B SHARMA

VICE - PRESIDENT (ADMIN & FINANCE)

VASUNDHARA KHAJURIA

RESEARCH OFFICER

PRATHAMESH KESARKAR

ASST. MANAGER (ACCOUNTS)

SANDESH MANDAVKAR SUJIT SINHA

ASST. MANAGER (OPERATIONS) ASST. MANAGER (RESEARCH)

REGISTERED OFFICEREGISTERED OFFICEUnit No. 202 and 203, Peninsula Centre, S. S. Road,Unit No. 202 and 203, Peninsula Centre, S. S. Road,

Off Dr. Babasaheb Ambedkar Road, Parel, Mumbai – 400012.Off Dr. Babasaheb Ambedkar Road, Parel, Mumbai – 400012.

6884 2727 / 6884 2725 www.fbil.org.in 6884 2727 / 6884 2725 www.fbil.org.inContact No.: Website :Contact No.: Website :

REGISTERED OFFICEUnit No. 202 and 203, Peninsula Centre, S. S. Road,

Off Dr. Babasaheb Ambedkar Road, Parel, Mumbai – 400012.

6884 2727 / 6884 2725 www.fbil.org.inContact No.: Website :

Documents

FBIL MIFOR TRANSITION