Reliance Capital Limited Is a Constituent of the Reliance Group, One of the Leading Business Houses in India
Total Page:16
File Type:pdf, Size:1020Kb
Annual Report 2016- 17 Padma Vibhushan Shri Dhirubhai H. Ambani (28th December, 1932 - 6th July, 2002) Reliance Group - Founder and Visionary Profile Reliance Capital Limited is a constituent of the Reliance Group, one of the leading business houses in India. Reliance Capital, incorporated in 1986, is one of India’s leading private sector financial services companies, and ranks amongst the top private sector financial services and banking groups, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, life, health and general insurance, commercial and home finance, stock broking, wealth management services, distribution of financial products, asset reconstruction, proprietary investments and other activities in financial services. Mission: Excellence in Financial Services To attain global best practices and become a world-class financial services enterprise – guided by its purpose to move towards greater degree of sophistication and maturity. To work with vigour, dedication and innovation to achieve excellence in service, quality, reliability, safety and customer care as the ultimate goal. To earn the trust and confidence of all stakeholders, exceeding their expectations and make the Company a respected household name. To consistently achieve high growth with the highest levels of productivity. To be a technology driven, efficient and financially sound organisation. To contribute towards community development and nation building. To be a responsible corporate citizen nurturing human values and concern for society, the environment and above all the people. To promote a work culture that fosters individual growth, team spirit and creativity to overcome challenges and attain goals. To encourage ideas, talent and value systems. To uphold the guiding principles of trust, integrity and transparency in all aspects of interactions and dealings. This Report is printed on environment friendly paper. Business mix Exchange Alternative ASSET Mutual Offshore Pension Traded Investment Fund Fund Fund MANAGEMENT Funds Funds Life General Health INSURANCE Insurance Insurance Insurance BROKING& Stock Wealth Third Party DISTRIBUTION Broking Management Distribution COMMERCIAL SME Vehicle Infrastructure FINANCE Loans Loans Loans Reliance Capital HOME Affordable Housing Home Loan Against Construction FINANCE Loans Loans Property Finance OTHER Proprietary Institutional Asset BUSINESSES Investments Broking Reconstruction Reliance Capital Limited Board of Directors Contents Page No. Shri Anil Dhirubhai Ambani - Chairman Letter to Shareowners ..................................................................6 Shri Amitabh Jhunjhunwala - Vice Chairman Shri Rajendra P. Chitale Highlights – at a glance ...............................................................8 Dr. Bidhubhusan Samal Shri V. N. Kaul Notice of Annual General Meeting .............................................9 Smt. Chhaya Virani Shri Jai Anmol Ambani - Executive Director Directors’ Report ........................................................................ 15 Management Discussion and Analysis ..................................... 31 Key Managerial Personnel Shri Amit Bapna - Chief Financial Officer Business Responsibility Report ................................................. 38 Shri Atul Tandon - Company Secretary & Compliance Officer Corporate Governance Report .................................................. 45 Auditors Investor Information .................................................................. 55 M/s. Pathak H.D. & Associates M/s. B S R & Co. LLP Auditors’ Certificate on Corporate Governance ........................ 61 R egistered Office Independent Auditors’ Report on the Financial Statement ... 62 H Block, 1st Floor Dhirubhai Ambani Knowledge City Balance Sheet ............................................................................ 66 Navi Mumbai 400 710 Statement of Profit and Loss ................................................... 67 CIN : L65910MH1986PLC165645 Tel. : +91 22 3303 1000 Cash Flow Statement ................................................................ 68 Fax : +91 22 3303 6664 E-mail : [email protected] Notes to the Financial Statement ............................................ 70 Website: www.reliancecapital.co.in Independent Auditors’ Report on the Consolidated R egistrar and Transfer Agent Financial Statement .................................................................109 Karvy Computershare Private Limited Karvy Selenium Tower - B Consolidated Balance Sheet ....................................................114 Plot No. 31 & 32, Survey No. 116/22, 115/24, 115/25 Financial District, Nanakramguda Consolidated Statement of Profit and Loss ...........................115 Hyderabad 500 032 Website: www.karvy.com Consolidated Cash Flow Statement ........................................ 116 Notes to the Consolidated Financial Statement ....................118 Investor Helpdesk Toll free no. (India) : 1800 4250 999 Statement containing salient features of the financial Tel. : +91 40 6716 1500 statement of subsidiaries/associate companies .....................157 Fax : +91 40 6716 1791 E-mail : [email protected] Attendance Slip and Proxy Form .............................................159 31st Annual General Meeting on Tuesday, September 26, 2017 at 10:00 A.M., at Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai 400 020 The Annual Report can be accessed at www.reliancecapital.co.in Reliance Capital Limited Letter to Shareowners My dear fellow Shareowners, It gives me great pleasure to share with you the highlights of our • Total net worth of ` 16,548 crore (US$ 2.5 billion) as Company’s performance during 2016 - 17. against ` 15,390 crore in the previous year, an increase of 8 per cent Reliance Capital made significant progress during the year towards improving operational performance across its core businesses, These robust financial numbers have enabled us to recommend and is fully geared to capitalise on its growth aspirations. a dividend of ` 10.50 per share against ` 10.00 per share in the previous year. We continue to move forward in fulfilling the vision of our legendary founder and my father, late Shri Dhirubhai Ambani, Highest credit ratings to attain financial empowerment for millions of ordinary Indians, Our Company’s short term debt programme has been assigned a and, in the process, enable Reliance Capital to become one of India’s leading financial services’ players. rating of “A1+” by ICRA, the highest credit quality rating assigned by the respective agency to short-term debt instruments. Today, our Company is one of India’s largest non-banking Instruments rated in this category carry lower credit risk in the financial services companies. We have diversified interests in short term. CARE assigned our long term debt paper a rating of asset management, mutual funds, pension funds, life, health and “CARE AA+”. Instruments with this rating offer investors a high general insurance, commercial and home finance, stock broking, degree of safety for timely servicing of debt obligations. wealth management services, financial products distribution, asset reconstruction and other activities in the financial services Achievements during the year across key operating businesses arena. Reliance Nippon Life Asset Management managed over Our Company is an integral part of the Reliance Group. Reliance ` 3,58,059 crore (US$ 55.1 billion) across its mutual funds, Group is amongst India’s leading business houses with a pension funds, managed accounts and hedge funds, an increase 10 million strong shareholders’ base. We have a strong presence of 25 per cent. The income from operations rose by 9 per cent across the wide array of high growth, consumer facing businesses to ` 1,436 crore (US$ 221 million), while, profit before tax was of telecom, financial services, power, infrastructure and defence. at ` 581 crore (US$ 89 million) as against ` 502 crore in the previous year, an increase of 16 per cent. Today, each of us can claim with pride and humility that the Reliance Group touches the life of one in every five Indians, Reliance Commercial Finance is amongst the leading SME every single day. This proud association defines our vision and lenders in the Indian non banking finance space. It offers a values. It defines who we are, what we stand for and what we wide range of products which include SME loans, Loans Against aspire to achieve. Property (LAP), Infrastructure financing, Agriculture loans and Supply chain financing. The focus in this business continues Performance Review to be on asset backed lending and productive asset creation. As on March 31, 2017, 100 per cent of the loan book The key financial highlights on a consolidated basis are: was secured. With rise in disbursements to ` 8,827 crore • Total income of ` 17,640 crore (US$ 2.7 billion), against (US$ 1.4 billion), the Assets Under Management grew by ` 9,998 crore in the previous year, an increase of 76 per cent 11 per cent to ` 16,759 crore (US$ 2.6 billion) as on March 31, 2017. This loan book is spread over 49,400 customers • Net profit of ` 1,086 crore (US$ 167 million), against from top 44 Indian cities. ` 1,101 crore in the previous year Reliance Home Finance (RHF) provides a wide range of loan • Earnings Per Share (EPS) of ` 43.0 (US$ 0.7), against solutions like home loans, LAP, construction finance, flexi LAP, ` 43.6 in the previous year and affordable housing. RHF also provides property solutions’