2017-2018
Reliance General Insurance Company Limited
DIRECTORS’ REPORT
To the Members, Your Directors present the Eighteenth Annual Report together with the Audited Financial Statements for the Financial Year ended 31st March, 2018. Financial Results (` in crore) Particulars Year ended 31st March, 2018 Year ended 31st March, 2017 Gross Direct Premium 5,069.08 3,935.35 ,QVXUDQFH3UR¿W /RVV 121.94 51.44 Investment Income on Shareholders fund 87.53 99.25 3UR¿W /RVV EHIRUH7D[ 165.00 130.34 3UR¿W /RVV DIWHU7D[ 165.00 130.34 Dividend
Your Directors have recommended a dividend of ` 0.50 per Equity Share of ` 10 each for the Financial Year ended 31st March, 2018. The dividend on Equity Share is subject to the approval of the Shareholders at the ensuing Annual General Meeting (AGM). Operations
Your Company in the current Financial Year has underwritten Gross Written Premium of ` 5,122.34 crore as against ` 4,007.09 FURUHLQWKHSUHYLRXV\HDUUHJLVWHULQJDQLQFUHDVHE\7KHPDLQIRFXVGXULQJWKH\HDUZDVWRLPSURYHWKHSUR¿WDELOLW\RIWKH Company along with growth. 7KH3UR¿W%HIRUH7D[HDUQHGGXULQJ)<LV`FURUHDVDJDLQVW3UR¿WRI` 130.34 crore during the previous year DFKLHYLQJDJURZWKRI RYHU)< Business Update
The Financial Year started with the Insurance Regulatory and Development Authority of India (IRDAI) increasing the Motor TP rates. During the year, IRDAI also introduced the Guidelines on the Motor Insurance Service Provider (MISP). MISP is as an DXWRPRELOHGHDOHUDSSRLQWHGE\WKH,QVXUHURUWKHLQVXUDQFHLQWHUPHGLDU\WRGLVWULEXWHDQGRUVHUYLFHPRWRULQVXUDQFHSROLFLHV of automobiles sold through such MISP. IRDAI also revised the Outsourcing Guidelines, 2011 and issued the Outsourcing Regulations, 2017 and also the Protection of Policyholders Interest Regulations, 2017 were issued by revising the 2002 regulations. 'XULQJWKH\HDU\RXU&RPSDQ\KDVWLHGXSZLWKPDMRU%DQNVDQGHQWLWLHVZKLFKPDLQO\LQFOXGHV<(6%DQN/LPLWHG2QH &RPPXQLFDWLRQ/LPLWHG2UL[$XWR,QIUDVWUXFWXUH6HUYLFHV/WGHWFDVWKH&RUSRUDWH$JHQWVRIWKH&RPSDQ\ 8SGDWHRQWKH,QLWLDO3XEOLF2ႇHULQJ 7KH&RPSDQ\LVSODQQLQJWRUDLVHWKHFDSLWDOE\ZD\RI,QLWLDO3XEOLF2ႇHU ,32 RILWVHTXLW\VKDUHVFRPSULVLQJRID)UHVK ,VVXHDQGDQ2ႇHUIRU6DOHE\WKHH[LVWLQJ6KDUHKROGHUVRIWKH&RPSDQ\,QWKLVUHJDUG,5'$,KDGJUDQWHGLWVDSSURYDOWRWKH &RPSDQ\7KH&RPSDQ\KDV¿OHGLWV'UDIW5HG+HUULQJ3URVSHFWXV '5+3 ZLWKWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 6(%, DQG¿QDOREVHUYDWLRQVRQWKHVDPHKDVEHHQUHFHLYHGIURP6(%,7KH&RPSDQ\PD\ODXQFKLWV,32LQQHDUIXWXUH VXEMHFWWRWKHIDYRXUDEOHPDUNHWFRQGLWLRQV Bonus Issue
'XULQJWKH\HDUXQGHUUHYLHZWKH&RPSDQ\LVVXHGDQGDOORWWHG IXOO\SDLGXSHTXLW\VKDUHVRI` 10 each to its H[LVWLQJPHPEHUVDVDERQXVVKDUHVLQSURSRUWLRQRI LHRQHHTXLW\VKDUHRI` 10 each for every one share held as on the UHFRUGGDWH¿[HGIRUWKHSXUSRVHE\FDSLWDOLVLQJ` 1,257,749,600 standing to the credit of the securities premium account of the Company. Corporate Governance
IRDAI had issued comprehensive guidelines on Corporate Governance for adoption by the Insurance Companies. The objective RIWKHVHJXLGHOLQHVLVWRHQVXUHWKDWWKHVWUXFWXUHUHVSRQVLELOLWLHVDQGIXQFWLRQVRIWKH%RDUGRI'LUHFWRUVDQGVHQLRUPDQDJHPHQW RIWKH&RPSDQ\IXOO\UHFRJQL]HWKHH[SHFWDWLRQVRIDOOVWDNHKROGHUVDVZHOODVWKRVHRIWKH5HJXODWRU7KH&RPSDQ\¶VSKLORVRSK\
2 Annual Report 2017 - 2018 on Corporate Governance envisages the attainment of highest levels of transparency, accountability and equity, in all facets of its RSHUDWLRQVDQGLQDOOLQWHUDFWLRQVZLWKLWVVWDNHKROGHUVLQFOXGLQJWKHPHPEHUVHPSOR\HHVJRYHUQPHQWDQGVRFLHW\$&RUSRUDWH Governance Report is presented in a separate section which forms part of the Annual Report. As required under the Corporate *RYHUQDQFH*XLGHOLQHVDFHUWL¿FDWHIURPWKH&RPSDQ\6HFUHWDU\ &KLHI&RPSOLDQFH2ႈFHURIWKH&RPSDQ\FHUWLI\LQJWKDWWKH Company has complied with the Corporate Governance Guidelines also forms the part of the Annual Report. Reinsurance
The Company has a well structured Reinsurance Program supported by approved securities, spread across the globe, having a YDOLG8,1IRU)<7KH5HLQVXUDQFH3URJUDPPHKDVEHHQUHQHZHGIRU)< DQGSODFHGFRPSOHWHO\ZLWKUHLQVXUHUV KDYLQJDSSURYHGFUHGLWUDWLQJDVDFFHSWDEOHE\,5'$,7KH5HLQVXUDQFH3URJUDPKDVDQRSWLPXPPL[RI3URSRUWLRQDO7UHDWLHVWR HQKDQFHWKH&RPSDQ\¶VDXWRPDWLFXQGHUZULWLQJFDSDFLW\DQG1RQ3URSRUWLRQDO7UHDWLHVWRSURWHFWWKH&RPSDQ\¶VQHWUHWHQWLRQV %DVHG RQ WKH &RPSDQ\¶V 1HW :RUWK %XVLQHVV 3ODQV 3RUWIROLR 0L[ DQG GHWDLOHG DQDO\VLV RI WKH &RPSDQ\¶V KLVWRULFDO GDWD UHWHQWLRQOHYHOVKDYHEHHQRSWLPDOO\¿[HGWRHQVXUHDKHDOWK\VROYHQF\PDUJLQVWDELOLW\LQ¿QDQFLDOUHVXOWVPLQLPXPYRODWLOLW\LQ HDUQLQJVDQGJHQHUDWHYDOXHWRVWDNHKROGHUV7KH&RPSDQ\ZRXOGDOVROLNHWRHPSKDVL]HRQLWVSUHSDUHGQHVVIRUFDWDVWURSKLF HYHQWVE\UHJXODUPRQLWRULQJRIH[SRVXUHVDVVHVVLQJDFFXPXODWLRQVWKURXJKVWDWLVWLFDO&DWDVWURSKLF &$7 PRGHOLQJWRROVDQG having adequate protection in place. 'LJLWL]DWLRQDQG,QIRUPDWLRQ7HFKQRORJ\ :LWKHDFKSDVVLQJ\HDUGLJLWL]DWLRQLVH[SDQGLQJLWVIRRWSULQWLQHYHU\VHFWRUZLWKLQ,QGLDDQGDFURVVWKHJOREH2IODWHWKH insurance industry is getting intensely impacted by digitization. The Company has been a pioneer in the General Insurance space and has achieved many milestones. The Company has launched video streaming solution for instant claim assessment for Motor Claims. The Company has also implemented RIVA – 5HOLDQFH,QWHUDFWLYH9RLFH$VVLVWDQFHDFKDWERWRQLWVZHEVLWHDQGRQVRFLDOQHWZRUNSODWIRUPIRUFXVWRPHUDQGVDOHVVHUYLFLQJ The Company has successfully implemented the unique solution for one of the prestigious client as a value added solution to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scores. .H\$XWRPDWLRQ,QLWLDWLYHV The milestone automation initiative was the launch of Workplace by Facebook in June 2017. Currently the Company has WKH KLJKHVWDGRSWLRQ UDWH DFURVV5HOLDQFH &DSLWDO *URXS DQG ZDV DOVR LQYLWHG WRSUHVHQW LWVVXFFHVV VWRU\E\ )DFHERRN LQ ³:RUNSODFH7UDQVIRUPV,QGLD´ (PSOR\HH(QJDJHPHQW 7KH&RPSDQ\FRQWLQXRXVO\VWULYHVWRFUHDWHDQHQJDJLQJDQGKHDOWKFRQVFLRXVZRUNHQYLURQPHQWIRUDOOLWVHPSOR\HHVVRWKDW WKH\JLYHRIWKHLUEHVWHDFKGD\6RPHHQJDJHPHQWVWHSVWDNHQWRZDUGVWKDWDUH )DPLO\ &RQQHFW 3URJUDPV 1RW MXVW WKH HPSOR\HH WKHLU IDPLOLHV WRR DUH WKH H[WHQGHG IDPLO\ 7RZDUGV WKLV XQLTXH DFWLYLWLHVZHUHGRQHOLNHRQ0RWKHU¶VGD\SHUVRQDOL]HGHPSOR\HHPHVVDJHZLWKDVRXYHQLUZDVVHQWGLUHFWO\WRPRWKHUVRI DOOHPSOR\HHV 2Q5DNKLVLVWHUVRIDOOPDOHHPSOR\HHVDQGEURWKHUVRIDOOIHPDOHHPSOR\HHVUHFHLYHGDVSHFLDOJLIWER[IURP the Company, etc. 3 Reliance General Insurance Company Limited )RFXVRQ(PSOR\HH9ROXQWHHULQJDQG+HDOWKFDPSVDWZRUN 1XPHURXV&65DFWLYLWLHVOLNH&OHDQXSGULYH&\FOHUDOO\ 6HFUHW6DQWDWR1*2.LGVZHUHFRQGXFWHGZLWKGLUHFWSDUWLFLSDWLRQRIHPSOR\HHV$OVRQXPHURXVKHDOWKFDPSVOLNH2QH RQ2QHGLHWLFLDQGHQWDOFKHFNXSZHUHFRQGXFWHG 2QOLQH(QJDJHPHQWV :LWKWKHODXQFKRI:RUNSODFHE\)DFHERRNKLJKIRFXVZDVNHSWRQFRQGXFWLQJLQWHUDFWLYHRQOLQH DFWLYLWLHVDFURVVRFFDVLRQVDQGPHGLXPV)HZRIWKHVHDUH ¾ '1$±)ULHQGVKLS'D\&RQWHVW 2Q:RUNSODFHWKLVZDVDSHUIHFWPL[RIOHDUQLQJDQGIXQZKHUHHPSOR\HHVWDJJHGWKHLU FROOHDJXHVZKRUHSUHVHQWHGHDFKRIWKHVL['1$V ¾ ,3OHGJH FDPSDLJQ RQ (QYLURQPHQW 'D\ /HDGHUV WRRN SOHGJHV WRZDUGV VDYLQJ HQYLURQPHQW XUJLQJ HPSOR\HHV WR follow suit. ¾ &UHDWLYH&KLOG&RQWHVW 7RXQOHDVKFUHDWLYLW\RIHPSOR\HHV¶FKLOGUHQRQOLQHFUHDWLYLW\FRQWHVWZDVUXQRQ&KLOGUHQ¶VGD\ witnessing tremendous participation and huge applause. 7DOHQW0DQDJHPHQW 7KH7DOHQW0DQDJHPHQWSURJUDP3$&( 3URJUDPIRU$FFHOHUDWHG&DUHHU(QKDQFHPHQW IRXQGHGRQWKH(165&/&RPSHWHQF\ )UDPHZRUNGHULYHGDFURVVJURXSZDVUROOHGRXWIRU6HQLRUDQG0LGGOHOHYHOPDQDJHPHQWWRDVVHVVWKHLUZRUNVW\OHV$OVRD GHYHORSPHQWFHQWHUZDVRUJDQL]HGIRUVHOHFWNH\HPSOR\HHVZKRZHUHLQSLSHOLQHIRUVHQLRUUROHV 2QERDUGLQJ ³)LUVWLPSUHVVLRQJRHVDORQJZD\´$OOWKHQHZMRLQHHVDUHJLYHQD:HOFRPH.LW±ZKLFKFRQVLVWVRI-RLQLQJ0DQXDO'LDU\ '1$.H\FKDLQVWDWLRQDU\DQGD5HOLDQFH76KLUWHWF7KHRQERDUGLQJSURFHVVKDVEHHQUHVWUXFWXUHGWRHQVXUHWKHNH\MRLQLQJ formalities are completed by the date of joining. All joinees go through a structured 3 days Induction program conducted in centralized manner at Mumbai. 7UDLQLQJ,QLWLDWLYHV The Company believes continuous learning and development of employee is a must to bring out their best performance. The &RPSDQ\KDVXQGHUWDNHQYDULRXVWUDLQLQJLQLWLDWLYHVRYHUWKHODVW\HDU6SHDNLQJRIWKHXQFRQYHQWLRQDOWUDLQLQJPHWKRGVWKH Company conducted unique movie based trainings across locations to develop Winners Attitude of employees. Another unique SURJUDPIRFXVLQJRQRYHUFRPLQJVHOILQÀLFWHGIHDUVDQGSURPRWLQJLQQRYDWLRQZDVFRQGXFWHGZKLFKIHDWXUHGGDULQJJODVVZDON DQGWHDPFUHDWLYLW\SURMHFWV)XUWKHURQRFFDVLRQRI:RPHQ¶V'D\DWUDLQLQJSURJUDPFRYHULQJIHPDOHIRUFHVSDQ,QGLDZDV FRQGXFWHGRQWKHWKHPHRI³8QOHDVK 0RWRU&ODLPVWHDPFRQWLQXHVZLWKLWVHQGHDYRUWREXLOGWKHEHVWLQFODVVRSHUDWLQJPRGHOZLWKHPSKDVLVRQ¿QHUFXVWRPHUFHQWULF DSSURDFK 4 Annual Report 2017 - 2018 $GRSWLRQRI7HFKQRORJ\ • About 95% of claims registered by Garages were through Web Portal increasing online claim registration by 9.22%. This HQVXUHVLQVWDQWDVVLJQPHQWRIVXUYH\RUVTXLFNVXUYH\VDQGIDVWHUFODLPVVHWWOHPHQW • :LWKIRFXVWREULQJLQVSHFLDOL]DWLRQEXLOGH[SHUWLVHDQGEHWWHUFXVWRPHUH[SHULHQFHInsta Survey has been introduced to leverage on technology. A dedicated specialized team has been set up for handling claims where videos of the damages are directly streamed by the garages eliminating delay in survey due to travel and providing for specialization in loss DVVHVVPHQW7KLVLVDZLQZLQVLWXDWLRQIRUERWKFDVKOHVVQHWZRUNJDUDJHVDQGWKH&RPSDQ\DVWKHUHLVDEHWWHUED\VSDFH XWLOL]DWLRQGXHWRIDVWHUDSSURYDODQGORZHULGOHWLPHDQGLQFUHDVHLQSURGXFWLYLW\DQGHႈFLHQF\IRUWKHODWWHU*DUDJHVFDQ FKRRVHDFRQYHQLHQWWLPHWRVWUHDPWKHYLGHRLQVWHDGRIVHHNLQJDVXUYH\RU¶VSK\VLFDOSUHVHQFH,WKDVKHOSHGWKH&RPSDQ\ WRUHGXFHWKHWXUQDURXQGWLPHLQFODLPVVHWWOHPHQWVLJQL¿FDQWO\DVWKHVXUYH\VDUHFRQGXFWHGLQPXFKOHVVHUWLPH%\HQG of March 2018, the Company has been able to convert more than 20% of cashless claims through Video Streaming mode. 750 garages across the country uses the feature. )RFXVHG$SSURDFKLQ&ODLPV0DQDJHPHQW • 7KH1HWZRUNVWUHQJWKKDVLQFUHDVHGWRDVRQst March, 2018 as against 3,898 on 31st March, 2017, which is 16% increase over last year contributing to increase in cashless claim settlement. • Cashless claim settlement in private car has increased to 87% as compared to 81% in the previous year. • $VVHVVPHQW/DGGHUZKLFKKDGEHHQODXQFKHGLQ-XQHLVDQRQOLQHDVVHVVPHQWIRUHQWU\DQGPLGOHYHOHPSOR\HHVRI 0RWRUFODLPVWHDPGXULQJKLULQJFRQ¿UPDWLRQDQGSULRUWRHQKDQFHGGHOHJDWLRQOHYHOVHPSOR\HHVKDYHEHHQFRYHUHG LQ+DQGHPSOR\HHVLQ+ • Aarush- First ray towards Success which is a specialized motor technical training program completes three successful years. 7KH&RPSDQ\KDVHPEHGGHGVRIWVNLOOVWUDLQLQJLQWRWKHSURJUDPWKLV\HDU$ORQJZLWKWKHWUDGLWLRQDOFODVVURRPWUDLQLQJWKHUH LVH[WHQVLYHXVHRISODWIRUPVOLNHZRUNSODFHVN\SHHPSOR\HHSRUWDODQGERWVPDNLQJYLUWXDOWUDLQLQJDSRVVLELOLW\ • 7KH&RPSDQ\FRQWLQXHVZLWKLWVHႇRUWVWRXVHWHFKQRORJ\DQGDQDO\WLFVWRSUHGLFWIUDXGXOHQWFODLPVDQGSUHYHQWOHDNDJH WKURXJKLPSDFWQDQRVFRUH7KHVHVWDWLVWLFDOPRGHOVZKLFKDUHXVHGIRUWKHODVWIHZ\HDUVDUHPDWXUHFOHDUO\KHOSLQJ segregate genuine claims for faster processing. +HDOWK +HDOWK&ODLPV7HDP 5&DUH HPSKDVL]HVRQFXVWRPHUGHOLJKWWKURXJKWHFKQRORJ\LQWHJUDWLRQDQGRQHWRXFKSRLQWIRUDOOVHUYLFHV &XVWRPHU&RQWHQWPHQW )RFXVKDVEHHQRQWKHLPSRUWDQFHRIFDVKOHVVWUHDWPHQWLQRXWSDWLHQWGHSDUWPHQWLQWXQHZLWKPDUNHWG\QDPLFVRႇHULQJ comprehensive services in dental, eye speciality and consultation services in major super specialities through 1200+ SURYLGHU1HWZRUN 7KH +HDOWK ,QVXUDQFH PDUNHW KDV ZLWQHVVHG D SDUDGLJP VKLIW LQ RႇHULQJ WKHUDSHXWLF WUHDWPHQW VROXWLRQV WR SUHYHQWLYH FDUHDFFRUGLQJO\SULRULW\KDVEHHQDFFRUGHGWRLQFUHDVHWKHVFRSHRIVHUYLFHVRႇHUHGXQGHU:HOOQHVVE\LQFOXGLQJVHUYLFH SURYLGHUVRႇHULQJQLFKHFDWHJRU\VHUYLFHV 7KHQXPEHURISURYLGHUVRႇHULQJZHOOQHVVVHUYLFHVKDVVHHQDQLQFUHDVHWR1850 with customised healthcare services with YDOXHDGGLWLRQVDQGSDUWQHUGLVFRXQWVIRUWKHEHQH¿FLDULHV 4. 5+HDOWK$VVLVW±:LWKDQREMHFWLYHWREULQJKHDOWKVHUYLFHVFORVHUWRWKHFXVWRPHUDQLQQRYDWLYHSODWIRUPLVEHLQJRႇHUHGWR the customers for providing online healthcare services, including consultations, opinions, medicines and diagnostic services LQWHJUDWHGXQGHUFXVWRPL]HGEDQQHU7KURXJKWKLVSODWIRUPFXVWRPHULVDEOHWRDFFHVVWKHPHGLFDOH[SHUWLVHDQGRSLQLRQ QRWRQO\WKURXJKSK\VLFDOFRQVXOWDWLRQVEXWDOVRWKURXJKYLGHRDQGPDLOWH[WFKDW 5. '\QDPLF606±7RIDFLOLWDWHDQGXSGDWHFXVWRPHUVZLWKWKHUHDOWLPHVWDWXVRIWKHFODLPDFXVWRPL]HGELWO\OLQNLVVHQW which helps the customer to access all their relevant records along with the detailed view of the claim status along with VHWWOHPHQWGHWDLOV,QFDVHVRIDGGLWLRQDOLQIRUPDWLRQTXHU\WKHFXVWRPHUFDQXSORDGWKHGRFXPHQWVWKURXJKWKHVDPHOLQN thereby reducing the response time. 6. $XWR9DOLGDWLRQ RI WKH FODLPV The technology advancements was further enhanced this year from the OPD claims DXWRDGMXGLFDWLRQWRWKH,3'FODLPVDXWRDGMXGLFDWLRQ$QLQLWLDWLYHZKLFKKHOSVLQUHDOWLPHGHFLVLRQRIFODLPVXSWROHYHO FRPSOH[LW\7KLVDGYDQFHPHQWLV³'RLW\RXUVHOI¶IRUWKHSURYLGHUVDQGFODLPVGHFLVLRQVFRQFOXGHGLQFRXSOHRIVHFRQGV 5 Reliance General Insurance Company Limited &RPPHUFLDO/LQHV ,QWKHHUDZKHUH*HQHUDO,QVXUDQFHVHFWRULQ,QGLDZLWQHVVLQJWKHJURZWKHYHU\\HDU)<KDVEHHQQRGLႇHUHQW7KH &RPSDQ\UHFHLYHGWRWDOFODLPLQWLPDWLRQVIURPYDULRXVOLQHVRIEXVLQHVVOLNH)LUH(QJLQHHULQJ0DULQH0LVFHOODQHRXV HWF7KLVVKRZVDQLQFUHDVLQJWUHQGRILQÀRZRILQWLPDWLRQVDVFRPSDUHGZLWKWKHSUHYLRXV\HDU7KHWHDPZDVJHDUHGXS WRKDQGOHWKHKLJKYROXPHRIFODLPVDQGGXULQJWKH)<WKHGLVSRVDOUDWLRZDV 7KHIRFXVRI&RPPHUFLDO&ODLPVWHDPZDVWRFRQFHQWUDWHRQ0DQDJHPHQWRI0DMRUDQG&RPSOH[&ODLPVDQGKHQFHWKHWHDP VXFFHVVIXOO\WUDQVIHUUHGWKHLQÀRZRIVPDOOYDOXHFODLPV WRWKHH[WHQWRI WR2SHUDWLRQVWHDPWRWDNHOHYHUDJHRIWKHLU RSHUDWLRQDOH[FHOOHQFH7KLVKHOSHGWKH&RPSDQ\WRVHUYLFHHႇHFWLYHO\DQGVHYHUDOODUJHFODLPVIRUVHWWOHPHQWZDVHQVXUHG VPRRWKO\LQWKLV)LQDQFLDO )HHGEDFNWR,QWHUPHGLDU\Complaint registered against the policies sourced by an Intermediary is made available on their Smartzone system login. An Intermediary will be able to view the details of complaints and would also be able to provide IHHGEDFNSHUWDLQLQJWRFRPSODLQW 6HOI+HOS9LGHRV,QRUGHUWRHPSRZHUDQGHGXFDWHFXVWRPHUYLGHRVKDYHEHHQFUDIWHGRQWRSLFVOLNH,QVXUHG'HFODUHG9DOXH 2ZQ'DPDJH1R&ODLP%RQXVDQGKRVWHGRQ<2878%(DVDQHGXFDWLRQVHULHVWRWKHFXVWRPHU7KHYLGHRVDUHSXVKHG WRWKHFDOOHUVDVDOLQNRQUHODWHGFDOOFDWHJRULHVWKURXJK,QWHJUDWHG&XVWRPHU(QJDJHPHQW ,&( DQG&XVWRPHU5HODWLRQVKLS Management (CRM) system. ,PSURYHGVRXUFLQJRI)HHGEDFN,QGXFWLRQRIQHZ)HHGEDFN0RGHDWWKHFDOOFHQWUHIRULPSURYHGUHVSRQVHUDWHRIDQG thereby a positive shift in Customer Satisfaction (CSAT) by 2% )XUWKHU,PSURYHPHQWLQ,QWHUDFWLYH9RLFH5HVSRQVHImplementation of further sophisticated tools for Self Service on call center IVR to improve immediate handling of queries. ,PSOHPHQWDWLRQRI,QGLDQ$FFRXQWLQJ6WDQGDUG 7KH0LQLVWU\RI&RUSRUDWH$ႇDLUV 0&$ *RYHUQPHQWRI,QGLDKDVQRWL¿HGWKH&RPSDQLHV ,QGLDQ$FFRXQWLQJ6WDQGDUGV 5XOHV 2015 on 16th )HEUXDU\ ,5'$, KDG LVVXHG FLUFXODU QR ,5'$) $&,5 ,)56 GDWHG st March, 2016 on implementation of Indian Accounting Standards (Ind AS) in Insurance Sector under which the Company has to comply with the ,QG$6IRU¿QDQFLDOVWDWHPHQWVEHJLQQLQJIURP$SULORQZDUGV )XUWKHU,5'$,YLGHFLUFXODUQR,5'$) $&,5$&76GDWHGth June, 2017, deferred the implementation of Ind $6LQWKH,QVXUDQFH6HFWRULQ,QGLDIRUDSHULRGRIWZR\HDUVDQGWKHVDPHVKDOOQRZEHLPSOHPHQWHGHႇHFWLYH)< The Company has constituted an Ind AS Steering Committee and the Committee meets on a regular basis to review the progress in implementation of Ind AS. 'LUHFWRUV5HVSRQVLELOLW\6WDWHPHQW 3XUVXDQWWRWKHUHTXLUHPHQWVXQGHU6HFWLRQ RIWKH&RPSDQLHV$FW µWKH$FW¶ LWLVKHUHE\FRQ¿UPHGWKDW i. In the preparation of the Annual Financial Statements for the Financial Year ended 31st March, 2018, the applicable $FFRXQWLQJ6WDQGDUGVKDYHEHHQIROORZHGDORQJZLWKSURSHUH[SODQDWLRQUHODWLQJWRPDWHULDOGHSDUWXUHVLIDQ\ ii. The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that ZHUHUHDVRQDEOHDQGSUXGHQWVRDVWRJLYHDWUXHDQGIDLUYLHZRIWKHVWDWHRIDႇDLUVRIWKH&RPSDQ\DVDWst March, 2018 DQGRIWKH3UR¿WRIWKH&RPSDQ\IRUWKH\HDUHQGHGRQWKDWGDWH LLL 7KH'LUHFWRUVKDGWDNHQSURSHUDQGVXႈFLHQWFDUHIRUWKHPDLQWHQDQFHRIDGHTXDWHDFFRXQWLQJUHFRUGVLQDFFRUGDQFH with the provisions of the Companies Act, 2013 and Insurance Act, 1938, as amended, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; iv. The Directors had prepared the Annual Financial Statements for the Financial Year ended 31st March, 2018 on a ‘Going &RQFHUQ¶EDVLV Y 7KH'LUHFWRUVKDGODLGGRZQSURSHULQWHUQDO¿QDQFLDOFRQWUROVWREHIROORZHGE\WKH&RPSDQ\DQGVXFK¿QDQFLDOFRQWUROVDUH DGHTXDWHDQGRSHUDWLQJHႇHFWLYHO\ vi. The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such V\VWHPVDUHDGHTXDWHDQGRSHUDWLQJHႇHFWLYHO\ 'LUHFWRUVDQG.H\0DQDJHULDO3HUVRQQHO The Company has received a declaration from all the Independent Directors that they meet the criteria of independence laid down under Section 149(6) of the Act. 'XULQJWKH\HDUWKH&RPSDQ\KDGDSSRLQWHG0U/DY&KDWXUYHGLDVD1RQH[HFXWLYH'LUHFWRUZHInd April, 2017 and Dr. Thomas Mathew as an Independent Director for a period of 5 (Five) years w.e.f. 6th October, 2017. ,QWHUPVRIWKHSURYLVLRQVRI6HFWLRQ RIWKH$FW0U/DY&KDWXUYHGL'LUHFWRURIWKH&RPSDQ\ZLOOUHWLUHE\URWDWLRQDQG EHLQJHOLJLEOHKDVRႇHUHGKLPVHOIIRUUHDSSRLQWPHQWDWWKHHQVXLQJ$QQXDO*HQHUDO0HHWLQJ 3XUVXDQWWRWKHSURYLVLRQVRI6HFWLRQRIWKH$FW0U5DNHVK-DLQ([HFXWLYH'LUHFWRU &KLHI([HFXWLYH2ႈFHU0U+HPDQW -DLQ&KLHI)LQDQFLDO2ႈFHUDQG0U0RKDQ.KDQGHNDU&RPSDQ\6HFUHWDU\ &KLHI&RPSOLDQFH2ႈFHUDUH.H\0DQDJHULDO Personnel of the Company. 7 Reliance General Insurance Company Limited 1XPEHURI0HHWLQJVRIWKH%RDUG During the FinanciaO 7KH%RDUGRI'LUHFWRUVKDVFDUULHGRXWDQDQQXDOHYDOXDWLRQRILWVRZQSHUIRUPDQFHDQGLQGLYLGXDOGLUHFWRUVSXUVXDQWWRWKH SURYLVLRQVRIWKH&RPSDQLHV$FW7KH%RDUGHYDOXDWHGWKHSHUIRUPDQFHDIWHUVHHNLQJLQSXWVIURPDOOWKH'LUHFWRUVRQWKH EDVLVRIWKHFULWHULDVXFKDVWKH%RDUGFRPSRVLWLRQDQGVWUXFWXUHHႇHFWLYHQHVVRI%RDUGSURFHVVHVLQIRUPDWLRQDQGIXQFWLRQLQJ HWF,QDVHSDUDWHPHHWLQJRI,QGHSHQGHQW'LUHFWRUVWKHSHUIRUPDQFHRI1RQ,QGHSHQGHQW'LUHFWRUVWKHSHUIRUPDQFHRIWKH %RDUGDVDZKROHWDNLQJLQWRDFFRXQWWKHYLHZVRI([HFXWLYH'LUHFWRUDQG1RQ([HFXWLYH'LUHFWRUVZDVHYDOXDWHG 3ROLF\RQ'LUHFWRU¶V$SSRLQWPHQWDQG5HPXQHUDWLRQDQGRWKHUGHWDLOV 7KH&RPSDQ\¶VSROLF\RQ'LUHFWRUV¶$SSRLQWPHQWDQG5HPXQHUDWLRQDQGRWKHUPDWWHUVSURYLGHGLQ6HFWLRQ RIWKH$FWKDV EHHQDQQH[HGKHUHZLWKDV³$QQH[XUH,´ 3DUWLFXODUVRI/RDQV*XDUDQWHHVRU,QYHVWPHQWVXQGHU6HFWLRQ ,QWHUPVRIWKHSURYLVLRQVRIVXEVHFWLRQRI6HFWLRQRIWKH$FWDVDPHQGHGE\WKH&RPSDQLHV 5HPRYDORI'LႈFXOWLHV Order, 2015 dated 13th)HEUXDU\LVVXHGE\WKH0LQLVWU\RI&RUSRUDWH$ႇDLUVWKHSURYLVLRQVRI6HFWLRQH[FHSWVXE section 1 is not applicable to the Company. 7UDQVIHUWR5HVHUYHV The Company does not propose to carry any amount to its reserves during the year under review. 0DWHULDOFKDQJHVDQGFRPPLWPHQWVDႇHFWLQJWKH¿QDQFLDOSRVLWLRQ 7KHUHZHUHQRPDWHULDOFKDQJHVRUFRPPLWPHQWVDႇHFWLQJWKH¿QDQFLDOSRVLWLRQRIWKH&RPSDQ\EHWZHHQst March, 2018 and the date of this report. 3DUWLFXODUVRI(PSOR\HHV As required under the provisions of Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) 5XOHVWKHQDPHDQGRWKHUSDUWLFXODUVRIWKHHPSOR\HHVDUHVHWRXWLQWKH$QQH[XUHWRWKH'LUHFWRUV¶5HSRUW7KH'LUHFWRUV¶ 5HSRUWLVEHLQJVHQWWRWKHPHPEHUVH[FOXGLQJWKH$QQH[XUH$Q\VKDUHKROGHULQWHUHVWHGLQREWDLQLQJDFRS\RIWKH$QQH[XUH PD\ZULWHWRWKH&RPSDQ\6HFUHWDU\DWWKH5HJLVWHUHG2ႈFHRIWKH&RPSDQ\ ([WUDFWRI$QQXDOUHWXUQ 7KHGHWDLOVIRUPLQJSDUWRIWKHH[WUDFWRIWKH$QQXDO5HWXUQLQIRUP0*7 LVDQQH[HGKHUHZLWKDV³$QQH[XUH,,´ 6HFUHWDULDO$XGLWRU Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial 3HUVRQQHO 5XOHVWKH&RPSDQ\KDVDSSRLQWHG0V$DVKLVK.%KDWW $VVRFLDWHVD¿UPRI&RPSDQ\6HFUHWDULHVLQ 3UDFWLFHWRXQGHUWDNHWKH6HFUHWDULDO$XGLWRIWKH&RPSDQ\ 6HFUHWDULDO6WDQGDUGVLVVXHGE\,&6, 3XUVXDQWWRWKHSURYLVLRQVRI6HFWLRQ RIWKH$FWFRPSOLDQFHZLWKVHFUHWDULDOVWDQGDUGVUHODWLQJWR*HQHUDODQG%RDUG 0HHWLQJVSHFL¿HGE\WKH,QVWLWXWHRI&RPSDQ\6HFUHWDULHVRI,QGLD ,&6, DVDSSURYHGE\WKH&HQWUDO*RYHUQPHQWKDYHEHFRPH mandatory from July 1, 2015. The Company is adhering to the Standards issued by the ICSI. $XGLWRU¶V5HSRUWDQG6HFUHWDULDO$XGLWRU¶V5HSRUW 7KH$XGLWRU¶V5HSRUWDQG6HFUHWDULDO$XGLWRU¶V5HSRUWGRHVQRWFRQWDLQDQ\TXDOL¿FDWLRQVUHVHUYDWLRQVRUDGYHUVHUHPDUNV 5HSRUWRIWKH6HFUHWDULDO$XGLWRULVDQQH[HGKHUHZLWKDV³$QQH[XUH,,,´ 5HODWHG3DUW\7UDQVDFWLRQV $OOUHODWHGSDUW\WUDQVDFWLRQVHQWHUHGGXULQJWKH)LQDQFLDO 8 Annual Report 2017 - 2018 7KH&RQVHUYDWLRQRIHQHUJ\WHFKQRORJ\DEVRUSWLRQIRUHLJQH[FKDQJHHDUQLQJVDQGRXWJR 3DUWLFXODUVUHTXLUHGWREHIXUQLVKHGXQGHUWKH&RPSDQLHV $FFRXQWV 5XOHVDUHDVIROORZV 3DUW$DQG%SHUWDLQLQJWRFRQVHUYDWLRQRIHQHUJ\DQGWHFKQRORJ\DEVRUSWLRQDUHQRWDSSOLFDEOHWRWKH&RPSDQ\ )RUHLJQH[FKDQJH(DUQLQJVDQG2XWJR 'XULQJWKH)LQDQFLDO The Company has not accepted any deposits from public and as such, no amount on account of principal or interest on deposits from public was outstanding as on the date of the balance sheet. 6LJQL¿FDQWDQGPDWHULDORUGHUVSDVVHGE\WKH5HJXODWRUV&RXUWVRU7ULEXQDOV 1RVLJQL¿FDQWRUPDWHULDORUGHUVDUHSDVVHGE\WKHUHJXODWRUVRUFRXUWVRUWULEXQDOVZKLFKPD\LPSDFWWKHJRLQJFRQFHUQVWDWXV DQG&RPSDQ\¶VRSHUDWLRQLQIXWXUH ,QWHUQDO¿QDQFLDOFRQWUROV\VWHPVDQGWKHLUDGHTXDF\ 7KH&RPSDQ\KDVGHVLJQHGLWVLQWHUQDO¿QDQFLDOFRQWUROV\VWHPWRSURYLGHUHDVRQDEOHDVVXUDQFHZLWKUHJDUGWRUHFRUGLQJDQG SURYLGLQJUHOLDEOH¿QDQFLDODQGRSHUDWLRQDOLQIRUPDWLRQFRPSO\LQJZLWKDSSOLFDEOHVWDWXWHVH[HFXWLQJWUDQVDFWLRQVZLWKSURSHU DXWKRULVDWLRQDQGHQVXULQJFRPSOLDQFHRIFRUSRUDWHSROLFLHV7KH&RPSDQ\KDVDZHOOGH¿QHGGHOHJDWLRQRISRZHUZLWKDXWKRULW\ OLPLWVIRUDSSURYLQJWKHUHYHQXHDVZHOODVWKHH[SHQGLWXUH,QWHUQDODXGLWRU¶V¿QGLQJVDQGUHFRPPHQGDWLRQVDUHUHSRUWHGWR $XGLW&RPPLWWHH7KH$XGLW&RPPLWWHHDFWLYHO\PRQLWRUVDQGUHYLHZVDXGLWUHSRUWVVXEPLWWHGE\WKHLQWHUQDODXGLWRUVDQGNHHSV WKH%RDUGRI'LUHFWRUVLQIRUPHG7KH$XGLW&RPPLWWHHDVVXUHVWKHDGHTXDF\DQGHႇHFWLYHQHVVRIWKHLQWHUQDO¿QDQFLDOFRQWURO system as laid down. Report on Internal Financial Control 7KH&RPSDQ\KDVHVWDEOLVKHGDZHOOGH¿QHGLQWHUQDOFRQWURORYHU¿QDQFLDOUHSRUWLQJFULWHULRQDFURVVWKHRUJDQLVDWLRQ'XULQJ WKH\HDUVXFKFRQWUROVDUHWHVWHGE\WKH,QWHUQDO$XGLWWHDP$Q\PDWHULDOZHDNQHVVLQWKHLUGHVLJQRURSHUDWLQJHႇHFWLYHQHVVLV reported to senior management. $XGLW&RPPLWWHH The details pertaining to composition of Audit Committee are included in the Corporate Governance Report, which forms part of this report. 9 Reliance General Insurance Company Limited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covered under this policy. 7KHUHZDVQRVH[XDOKDUDVVPHQWFRPSODLQWUHFHLYHGGXULQJWKH)LQDQFLDO $VSHU6(%,FLUFXODUQR&,5,0'')GDWHG th2FWREHUUHDGZLWK6(%, /LVWLQJ2EOLJDWLRQVDQG'LVFORVXUH 5HTXLUHPHQWV 5HJXODWLRQV'HEHQWXUH7UXVWHHGHWDLOVDUHDVXQGHU 1DPH 9LVWUD,7&/ ,QGLD /LPLWHG &RQWDFWGHWDLOV 7KH9LVWUD,7&/ ,QGLD /LPLWHG,/ )6)LQDQFLDO&HQWUH3ORW&*%ORFN%DQGUD.XUOD&RPSOH[%DQGUD (DVW 0XPEDL :HEVLWH www.vistraitcl.com $FNQRZOHGJHPHQW Rajendra Chitale &KDLUPDQRIWKH0HHWLQJ >',1 @ 3ODFH 0XPEDL 'DWHG th April, 2018 10 Annual Report 2017 - 2018 $11(;85(±, 3ROLF\RQDSSRLQWPHQWDQGUHPXQHUDWLRQRI'LUHFWRUV.H\0DQDJHULDO3HUVRQQHODQG6HQLRU0DQDJHPHQW(PSOR\HHV 1. Introduction 5HOLDQFH*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG ³WKH&RPSDQ\´ FRQVLGHUVKXPDQUHVRXUFHVDVLWVLQYDOXDEOHDVVHWV 7KLVSROLF\DLPVWRKDUPRQL]HWKHDVSLUDWLRQVRIWKHGLUHFWRUVHPSOR\HHVZLWKWKHJRDOVRIWKH&RPSDQ\ +XPDQFDSLWDOLVDVWUDWHJLFVRXUFHRIYDOXHFUHDWLRQ$VSDUWRIRXUSURJUHVVLYH+5SKLORVRSK\LWLVQHFHVVDU\WRKDYH in place a comprehensive Compensation Policy, which is in line with the industry trend and is employee friendly. 2. Objectives (QVXULQJWKDWWKHTXDQWXPDQGFRPSRVLWLRQRIUHPXQHUDWLRQLVUHDVRQDEOHDQGVXႈFLHQWWRDWWUDFWUHWDLQDQGPRWLYDWH employees to run the Company successfully. (QVXULQJWKDWUHODWLRQVKLSRIUHPXQHUDWLRQWRSHUIRUPDQFHLVFOHDUDQGPHHWVWKHSHUIRUPDQFHEHQFKPDUNV (QVXUH WKDW DQQXDO FRPSHQVDWLRQ UHYLHZ FRQVLGHUV LQGXVWU\ EXVLQHVV RXWORRN DQG VWUDWHJLHV DGRSWHG E\ LQGXVWU\ SHHUVGLႇHUHQWLDWHVHPSOR\HHVEDVHGRQWKHLUSHUIRUPDQFHVNLOOVHWVDQGDOVRSURWHFWVHPSOR\HHVSDUWLFXODUO\WKRVH LQMXQLRUFDGUHDJDLQVWLQÀDWLRQDU\SUHVVXUHV 2.4 Retention of high performers at all levels and those playing critical roles. 3. 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'H¿QLWLRQV 'LUHFWRUPHDQVDGLUHFWRUDSSRLQWHGWRWKH%RDUGRIWKH&RPSDQ\ 4.2 "Key Managerial Personnel" means L WKH&KLHI([HFXWLYH2ႈFHURUWKH0DQDJLQJ'LUHFWRURIWKH0DQDJHU (ii) the Company Secretary; LLL WKH:KROHWLPH'LUHFWRU LY WKH&KLHI)LQDQFLDO2ႈFHU Y VXFKRWKHURႈFHUDVPD\EHSUHVFULEHGXQGHUWKH&RPSDQLHV$FW 3ROLF\ 5.1 $SSRLQWPHQWRI'LUHFWRUV.H\0DQDJHULDO6HQLRU0DQDJHPHQWSHUVRQQHO 7KH1RPLQDWLRQDQG5HPXQHUDWLRQ&RPPLWWHHLQWHUDOLDFRQVLGHUVTXDOL¿FDWLRQVSRVLWLYHDWWULEXWHVDUHDVRIH[SHUWLVHDQG number of Directorships and Memberships held in various committees of other companies by such persons contributing to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¿WUHODWHG&RPPLVVLRQLIDSSURYHGE\WKH%RDUGLQDGGLWLRQWRWKHVLWWLQJIHHV 7KH%RDUGRQWKHUHFRPPHQGDWLRQRIWKH1RPLQDWLRQDQG5HPXQHUDWLRQ&RPPLWWHHVKDOOUHYLHZDQGDSSURYHWKH UHPXQHUDWLRQSD\DEOHWRWKH'LUHFWRUV.H\0DQDJHULDO3HUVRQQHO6HQLRU0DQDJHPHQW3HUVRQQHORIWKH&RPSDQ\ within the overall limits, if any, approved by the shareholders. 11 Reliance General Insurance Company Limited 7KHUHPXQHUDWLRQVWUXFWXUHVKDOOLQFOXGHWKHIROORZLQJFRPSRQHQWV L %DVLF3D\ (ii) Perquisites and Allowances LLL 6WRFN2SWLRQVLIDQ\ LY &RPPLVVLRQ $SSOLFDEOHLQFDVHRI([HFXWLYH'LUHFWRUV'LUHFWRUV Y 5HWLUDO%HQH¿WV YL 3HUIRUPDQFH/LQNHG,QFHQWLYHV 7KH$QQXDO3ODQREMHFWLYHV¿QDQFLDOUHVXOWVRIWKH&RPSDQ\VKDOOEHUHYLHZHGE\WKH1RPLQDWLRQDQG5HPXQHUDWLRQ Committee and performance incentives, increment, revision in remuneration etc. will be proposed based on the achievements. 5.3 5HPXQHUDWLRQWRWKHRWKHUHPSOR\HHV (PSOR\HHVVKDOOEHDVVLJQHGJUDGHVEDQGVDFFRUGLQJWRWKHLUTXDOL¿FDWLRQVDQGZRUNH[SHULHQFHFRPSHWHQFLHVDVZHOODV WKHLUUROHVDQGUHVSRQVLELOLWLHVLQWKHRUJDQL]DWLRQ,QGLYLGXDOUHPXQHUDWLRQVKDOOEHGHWHUPLQHGZLWKLQWKHDSSURSULDWHJUDGH EDQGVDQGVKDOOEHEDVHGRQYDULRXVIDFWRUVVXFKDVMRESUR¿OHVNLOOVHWVVHQLRULW\H[SHULHQFHSHUIRUPDQFHDQGSUHYDLOLQJ remuneration levels for equivalent jobs. 5HWHQWLRQ)HDWXUHVDVSDUWRI&RPSHQVDWLRQ3DFNDJH %DVHGRQWKHRUJDQL]DWLRQDOQHHGIRUUHWDLQLQJSHUIRUPLQJHPSOR\HHVDQGWKRVHLQFULWLFDOUROHVFHUWDLQUHWHQWLRQIHDWXUHV PD\EHUROOHGRXWDVSDUWRIWKHRYHUDOOFRPSHQVDWLRQSDFNDJH7KHVHPD\WDNHIRUPRI5HWHQWLRQ%RQXV 5%V 6SHFLDO 0RQHWDU\3URJUDPV 603V /RQJWHUP,QFHQWLYHV /7,V (PSOR\HHV6WRFN2SWLRQVHWF 0RGL¿FDWLRQDQG$PHQGPHQW 7KHSROLF\LVVXEMHFWWRPRGL¿FDWLRQDPHQGPHQWDQGDOWHUDWLRQVE\WKHPDQDJHPHQWDWDQ\WLPHZLWKRXWDVVLJQLQJDQ\ reasons. 12 Annual Report 2017 - 2018 $11(;85(,, )250120*7± (;75$&72)$118$/5(7851 DVRQWKH¿QDQFLDO\HDUHQGHGRQ0DUFK >3XUVXDQWWR6HFWLRQ RIWKH&RPSDQLHV$FWDQGUXOH RIWKH&RPSDQ\ 0DQDJHPHQW $GPLQLVWUDWLRQ 5XOHV@ , 5HJLVWUDWLRQDQGRWKHUGHWDLOV 1. CIN 80+3/& 2. Registration Date August 17, 2000 3. Name of the Company 5HOLDQFH*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG 4. &DWHJRU\6XE&DWHJRU\RIWKH&RPSDQ\ 3XEOLF&RPSDQ\/LPLWHGE\6KDUHV,QGLDQ1RQ*RYHUQPHQW&RPSDQ\ 5. $GGUHVVRIWKH5HJLVWHUHGRႈFHDQGFRQWDFWGHWDLOV +%ORFNst Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai – 400710 7HO1R 6. Whether listed company Yes (Debt) 7. Name, Address and Contact details of the Registrar .DUY\&RPSXWHUVKDUH3ULYDWH/LPLWHG and Transfer Agent, if any. .DUY\6HOHQLXP7RZHU%3ORW1R 6XUYH\1R)LQDQFLDO'LVWULFW 1DQDNUDPJXGD+\GHUDEDG7HO ,, 3ULQFLSDO%XVLQHVV$FWLYLWLHVRIWKH&RPSDQ\ $OOWKHEXVLQHVVDFWLYLWLHVFRQWULEXWLQJRUPRUHRIWKHWRWDOWXUQRYHURIWKHFRPSDQ\VKDOOEHVWDWHG Sl. 1DPHDQG'HVFULSWLRQRIPDLQ 1,&&RGHRIWKH3URGXFW WRWRWDOWXUQRYHURIWKH&RPSDQ\ No. 3URGXFWV6HUYLFHV Service 1. General Insurance 6512 100 ,,, 3DUWLFXODUVRI+ROGLQJ6XEVLGLDU\DQG$VVRFLDWH&RPSDQLHV Sl. 1DPHDQGDGGUHVVRIWKH&RPSDQ\ &,1*/1 +ROGLQJ RIVKDUHV $SSOLFDEOH No. 6XEVLGLDU\ held Section $VVRFLDWH 1 5HOLDQFH&DSLWDO/LPLWHG / 0+ 3/& +ROGLQJ 100 2(46) + %ORFNVW)ORRU Company Dhirubhai Ambani Knowledge City, 1DYL0XPEDL ,9 6+$5(+2/',1*3$77(51 (TXLW\6KDUH&DSLWDO%UHDNXSDVSHUFHQWDJHRI7RWDO(TXLW\ L &DWHJRU\ZLVH6KDUH+ROGLQJ &DWHJRU\RI6KDUHKROGHUV 1RRI6KDUHVKHOGDWWKHEHJLQQLQJRIWKH\HDU 1RRI6KDUHVKHOGDWWKHHQGRIWKH\HDU &KDQJH i.e. 01.04.2017 i.e. 31.03.2018 GXULQJ 'HPDW 3K\VLFDO Total RI 'HPDW 3K\VLFDO Total RI7RWDO WKH\HDU Total Shares Shares $ 3URPRWHUs (1) Indian a) ,QGLYLGXDO+8) b) Central Govt c) State Govt(s) d) %RGLHV&RUS 125774960 125774960 100 251549920 251549920 100 100 e) %DQNV), f) Any other 6XE7RWDO $ - 100 251549920 - 251549920 100 100 13 Reliance General Insurance Company Limited &DWHJRU\RI6KDUHKROGHUV 1RRI6KDUHVKHOGDWWKHEHJLQQLQJRIWKH\HDU 1RRI6KDUHVKHOGDWWKHHQGRIWKH\HDU &KDQJH i.e. 01.04.2017 i.e. 31.03.2018 GXULQJ 'HPDW 3K\VLFDO Total RI 'HPDW 3K\VLFDO Total RI7RWDO WKH\HDU Total Shares Shares (2) )RUHLJQ a) NRIs – Individuals b) Other – Individuals c) %RGLHV&RUSRUDWH d) %DQNV), e) Any Other .... 6XE7RWDO $ 7RWDO6KDUHKROGLQJRI - 100 251549920 - 251549920 100 100 3URPRWHU $ $ $ % 3XEOLF6KDUHKROGLQJ 1. 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Non-Institutions a) %RGLHV&RUS i) Indian ii) Overseas b) Individuals i) Individual shareholders holding nominal share capital upto `ODNK ii) Individual shareholders holding nominal share FDSLWDOLQH[FHVVRI5V ODNK c) Others (trust) 6XEWRWDO % - - - -- 7RWDO3XEOLF6KDUHKROGLQJ - --- -- % % % & 6KDUHVKHOGE\&XVWRGLDQ IRU*'5V $'5V *UDQG7RWDO $%& - 100 251549920 - 251549920 100 100 14 Annual Report 2017 - 2018 LL 6KDUHKROGLQJRI3URPRWHUV Sl. 6KDUHKROGHU¶V1DPH 6KDUHKROGLQJDWWKHEHJLQQLQJRIWKH\HDU 6KDUHKROGLQJDWWKHHQGRIWKH\HDU FKDQJH No. 1RRI RIWRWDO RI6KDUHV 1RRI RIWRWDO RI6KDUHV in share Shares Shares 3OHGJHG Shares Shares 3OHGJHG KROGLQJ RIWKH HQFXPEHUHG RIWKH HQFXPEHUHG GXULQJ FRPSDQ\ to total FRPSDQ\ to total WKH\HDU shares shares 1 5HOLDQFH&DSLWDO/LPLWHG 125774960 100 251549920 100 100 Total 100 251549920 100 - 100 LLL &KDQJHLQ3URPRWHUV¶6KDUHKROGLQJ SOHDVHVSHFLI\LIWKHUHLVQRFKDQJH Sl. 6KDUHKROGLQJDWWKHEHJLQQLQJRI &XPXODWLYH6KDUHKROGLQJGXULQJ No. WKH\HDU WKH\HDU 1RRIVKDUHV RIWRWDO 1RRIVKDUHV RIWRWDO VKDUHVRIWKH VKDUHVRIWKH FRPSDQ\ FRPSDQ\ 1 At the beginning of the year 125774960 100 251549920 100 2 'DWH ZLVH ,QFUHDVH 'HFUHDVH LQ 3URPRWHUV ,QFUHDVHDVRQGXHWRLVVXHRI%RQXVVKDUHVRQSURSRUWLRQDWH Shareholding during the year specifying the basis in the ratio of one equity share each for one equity share held. UHDVRQVIRULQFUHDVHGHFUHDVH HJDOORWPHQW WUDQVIHUERQXVVZHDWHTXLW\HWF 3 At the end of the year - - 251549920 100 LY 6KDUHKROGLQJ3DWWHUQRIWRSWHQ6KDUHKROGHUV 2WKHUWKDQ'LUHFWRUV3URPRWHUVDQG+ROGHUVRI*'5VDQG$'5V 1LO Y 6KDUHKROGLQJRI'LUHFWRUVDQG.H\0DQDJHULDO3HUVRQQHO .03V 0U5DMHQGUD&KLWDOH0U+DULV$QVDUL'U7KRPDV0DWKHZ0UV&KKD\D9LUDQL0U/DY&KDWXUYHGLDQG0U5DNHVK-DLQ ([HFXWLYH 'LUHFWRU &(2 'LUHFWRUVRIWKH&RPSDQ\KROGQLOVKDUHVDWWKHEHJLQQLQJDQGDWWKHHQGRIWKH\HDU 7KH.03¶VRIWKH&RPSDQ\LH0U5DNHVK-DLQ ([HFXWLYH'LUHFWRU &(2 0U+HPDQW-DLQ&)2DQG0U0RKDQ.KDQGHNDU&RPSDQ\ Secretary, hold nil shares at the beginning and at the end of the year. 9 ,1'(%7('1(66 ,QGHEWHGQHVVRIWKH&RPSDQ\LQFOXGLQJLQWHUHVWRXWVWDQGLQJDFFUXHGEXWQRWGXHIRUSD\PHQW (` in Crore) 6HFXUHG/RDQV Unsecured Deposits Total H[FOXGLQJGHSRVLWV /RDQV Indebtedness ,QGHEWHGQHVVDWWKHEHJLQQLQJRIWKH¿QDQFLDO\HDU i) Principal Amount 230.00 230.00 ii) Interest due but not paid iii) Interest accrued but not due 13.07 13.07 7RWDO LLLLLL - 243.07 - 243.07 &KDQJHLQ,QGHEWHGQHVVGXULQJWKH¿QDQFLDO\HDU • Addition • Reduction 1HW&KDQJH ,QGHEWHGQHVVDWWKHHQGRIWKH¿QDQFLDO\HDU i) Principal Amount 230.00 230.00 ii) Interest due but not paid iii) Interest accrued but not due 13.07 13.07 7RWDO LLLLLL - 243.07 - 243.07 15 Reliance General Insurance Company Limited 9, 5(081(5$7,212)',5(&7256$1'.(<0$1$*(5,$/3(56211(/ $ 5HPXQHUDWLRQWR0DQDJLQJ'LUHFWRU:KROHWLPH'LUHFWRUVDQGRU0DQDJHU (` in Crore) Sl. 3DUWLFXODUVRI5HPXQHUDWLRQ 1DPHRI:7' No. 0U5DNHVK-DLQ ([HFXWLYH'LUHFWRU &(2 1 Gross salary D 6DODU\DVSHUSURYLVLRQVFRQWDLQHGLQVHFWLRQ RIWKH,QFRPHWD[$FW 4.59 E 9DOXHRISHUTXLVLWHVXV ,QFRPHWD[ $FW 0.01 F 3UR¿WVLQOLHXRIVDODU\XQGHUVHFWLRQ ,QFRPHWD[$FW 1,/ 2 6WRFN2SWLRQ 1XPEHURIRSWLRQV 8,94,400 options 3 Sweat Equity 1,/ 4 Commission 1,/ DVRISUR¿W RWKHUVVSHFLI\« 5 Others, please specify 3URYLGHQW)XQG 0.15 5HWLUDO 7RWDO $ 4.75 Ceiling as per the Act % 5HPXQHUDWLRQWRRWKHUGLUHFWRUV (` in Crore) Sr. 3DUWLFXODUVRI5HPXQHUDWLRQ 1DPHRI'LUHFWRU Total No. $PRXQW 1. Independent Directors Mr. Rajendra 0U+$QVDUL 0U7KRPDV 0V&KKD\D Chitale 0DWKHZ 9LUDQL )HHIRUDWWHQGLQJERDUGFRPPLWWHHPHHWLQJV 0.11 0.14 0.02 0.07 0.34 Commission 1,/ 1,/ 1,/ 1,/ 1,/ Others, please specify 1,/ 1,/ 1,/ 1,/ 1,/ 7RWDO 0.11 0.14 0.02 0.07 0.34 2. Other Non Executive Directors 0U/DY Chaturvedi* )HHIRUDWWHQGLQJERDUGFRPPLWWHHPHHWLQJV 1,/ 1,/ Commission 1,/ 1,/ Others, please specify 1,/ 1,/ 7RWDO 1,/ 1,/ 7RWDO % 0.11 0.14 0.02 0.07 0.34 7RWDO0DQDJHULDO5HPXQHUDWLRQ $% 5.09 Overall Ceiling as per the Act # appointed as a Director w.e.f. 06.10.2017 * appointed as a Director w.e.f. 22.04.2017 16 Annual Report 2017 - 2018 & 5HPXQHUDWLRQWR.H\0DQDJHULDO3HUVRQQHORWKHUWKDQ0'0DQDJHU:7' (` in Crore) Sl. 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DIRECTORS 3HQDOW\ None 3XQLVKPHQW None &RPSRXQGLQJ None &27+(52)),&(56,1'()$8/7 3HQDOW\ None 3XQLVKPHQW None &RPSRXQGLQJ None )RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUV Rajendra Chitale &KDLUPDQRIWKH0HHWLQJ >',1 @ 3ODFH 0XPEDL 'DWHG th April, 2018 17 Reliance General Insurance Company Limited $11(;85(,,, 6(&5(7$5,$/$8',75(3257 )RUP05 )257+(),1$1&,$/<($5(1'('ST0$5&+ [Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014] To, 7KH0HPEHUV 5HOLDQFH*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate governance practice by 5HOLDQFH*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG KHUHLQDIWHUFDOOHG³WKH&RPSDQ\´ 6HFUHWDULDO$XGLW ZDVFRQGXFWHGLQDPDQQHUWKDWSURYLGHGPHDUHDVRQDEOHEDVLVIRUHYDOXDWLQJWKHFRUSRUDWHFRQGXFWVVWDWXWRU\FRPSOLDQFHV DQGH[SUHVVLQJP\RSLQLRQWKHUHRQ %DVHGRQP\YHUL¿FDWLRQRIWKH&RPSDQ\¶VERRNVSDSHUVPLQXWHVERRNVIRUPVDQGUHWXUQV¿OHGDQGRWKHUUHFRUGVPDLQWDLQHG E\WKH&RPSDQ\DQGDOVRWKHLQIRUPDWLRQSURYLGHGE\WKH&RPSDQ\LWVRႈFHUVDJHQWVDQGDXWKRUL]HGUHSUHVHQWDWLYHVGXULQJ WKHFRQGXFWRIVHFUHWDULDODXGLW,KHUHE\UHSRUWWKDWLQP\RSLQLRQWKH&RPSDQ\KDVGXULQJWKH¿QDQFLDO\HDUHQGHGst March, FRPSOLHGZLWKWKHVWDWXWRU\SURYLVLRQVOLVWHGKHUHXQGHUDQGDOVRWKDWWKH&RPSDQ\KDVSURSHU%RDUGSURFHVVHVDQG FRPSOLDQFHPHFKDQLVPLQSODFHWRWKHH[WHQWLQWKHPDQQHUDQGVXEMHFWWRWKHUHSRUWLQJPDGHKHUHLQDIWHU ,KDYHH[DPLQHGWKHERRNVSDSHUVPLQXWHERRNVIRUPVDQGUHWXUQV¿OHGDQGRWKHUUHFRUGVPDLQWDLQHGE\WKH&RPSDQ\ IRUWKH¿QDQFLDO\HDUHQGHGRQst0DUFKDFFRUGLQJWRWKHSURYLVLRQVRI i. The Companies Act, 2013 (the Act) and the rules made thereunder; LL 7KH6HFXULWLHV&RQWUDFWV 5HJXODWLRQ $FW µ6&5$¶ DQGWKHUXOHVPDGHWKHUHXQGHU1RW$SSOLFDEOH LLL 7KH'HSRVLWRULHV$FW DQGWKH5HJXODWLRQVDQG%\HODZVIUDPHGWKHUHXQGHU LY )RUHLJQ([FKDQJH0DQDJHPHQW$FW DQGWKHUXOHVDQGUHJXODWLRQVPDGHWKHUHXQGHUWRWKHH[WHQWRI)RUHLJQ 'LUHFW,QYHVWPHQW2YHUVHDV'LUHFW,QYHVWPHQWDQG([WHUQDO&RPPHUFLDO%RUURZLQJV±1RW$SSOLFDEOH Y 7KHIROORZLQJUHJXODWLRQVDQGJXLGHOLQHVSUHVFULEHGXQGHUWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD$FW µ6(%, $FW¶ DUHDSSOLFDEOH D 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 6XEVWDQWLDO$FTXLVLWLRQRI6KDUHVDQG7DNHRYHUV 5HJXODWLRQV – Not Applicable; E 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 3URKLELWLRQRI,QVLGHU7UDGLQJ 5HJXODWLRQV F 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD ,VVXHRI&DSLWDODQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQV ± Not Applicable; G 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 6KDUH%DVHG(PSOR\HH%HQH¿WV 5HJXODWLRQV1RW$SSOLFDEOH H 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD ,VVXH DQG /LVWLQJ RI 'HEW 6HFXULWLHV 5HJXODWLRQV ± 1RW Applicable; and I 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 5HJLVWUDUVWRDQ,VVXHDQG6KDUH7UDQVIHU$JHQWV 5HJXODWLRQV – Not Applicable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he Company has its compliance system, which is subject to monitoring and reporting to IRDAI. 18 Annual Report 2017 - 2018 ,KDYHH[DPLQHGFRPSOLDQFHVZLWKDSSOLFDEOHFODXVHVRI i. Secretarial Standards issued by the Institute of the Company Secretaries of India LL 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD /LVWLQJ2EOLJDWLRQV'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQV 'XULQJWKH¿QDQFLDO\HDUXQGHUUHSRUWWKH&RPSDQ\KDVFRPSOLHGZLWKWKHSURYLVLRQVRIWKH$FW5XOHV5HJXODWLRQV*XLGHOLQHV Standards, etc. mentioned above. ,IXUWKHUUHSRUWWKDW 7KH%RDUGRI'LUHFWRUVRIWKH&RPSDQ\LVGXO\FRQVWLWXWHGZLWKSURSHUEDODQFHRI([HFXWLYH'LUHFWRUV1RQ([HFXWLYH'LUHFWRUV DQG,QGHSHQGHQW'LUHFWRUV7KHFKDQJHVLQWKHFRPSRVLWLRQRIWKH%RDUGRI'LUHFWRUVGXULQJWKH\HDUXQGHUUHYLHZZHUHLQ compliance with the provisions of the Act. $GHTXDWHQRWLFHDJHQGDDQGGHWDLOHGQRWHVKDYHEHHQJLYHQWRDOO'LUHFWRUVWRVFKHGXOHWKH%RDUG0HHWLQJVDWOHDVWVHYHQGD\V LQDGYDQFHDQGDV\VWHPH[LVWVIRUVHHNLQJDQGREWDLQLQJIXUWKHULQIRUPDWLRQDQGFODUL¿FDWLRQVRQWKHDJHQGDLWHPVEHIRUHWKH meeting and for meaningful participation at the meeting. 7KHGHFLVLRQVDW%RDUG0HHWLQJVDQG&RPPLWWHH0HHWLQJVDUHFDUULHGRXWDQGUHFRUGHGLQWKHPLQXWHVRIWKH%RDUGRI'LUHFWRUV DQG&RPPLWWHHRIWKH%RDUGDFFRUGLQJO\ , KDYH UHOLHG RQ WKH UHSUHVHQWDWLRQ PDGH E\ WKH &RPSDQ\ DQG LWV 2ႈFHUV IRU DGHTXDWH V\VWHPV DQG SURFHVVHV LQ WKH FRPSDQ\FRPPHQVXUDWHZLWKLWVVL]H RSHUDWLRQWRPRQLWRUDQGHQVXUHFRPSOLDQFHZLWKDSSOLFDEOHODZV ,IXUWKHUUHSRUWWKDWGXULQJWKH\HDUXQGHUUHSRUWWKH&RPSDQ\KDVXQGHUWDNHQHYHQWDFWLRQKDYLQJDPDMRUEHDULQJRQWKH &RPSDQ\¶VDႇDLUVLQSXUVXDQFHRIWKHDERYHUHIHUUHGODZVUXOHVUHJXODWLRQVJXLGHOLQHVVWDQGDUGVHWFUHIHUUHGWRDERYHYL] L $SSURYDORIGUDIW5HG+HUULQJ3URVSHFWXVIRUUDLVLQJRIFDSLWDOWKURXJK,QLWLDO3XEOLF2ႇHULQJ LL 2ႇHUIRUVDOHRI(TXLW\6KDUHVE\5HOLDQFH&DSLWDO/LPLWHG (iii) Alteration of Memorandum of Association of the Company; (iv) Alteration of Articles of Association of the Company; Y 5HYLVLRQLQUHPXQHUDWLRQRI0U5DNHVK-DLQDV([HFXWLYH'LUHFWRUDQG&(2RIWKH&RPSDQ\ (vi) Declaration of Dividend on Equity Shares; (vii) Appointment of Directors including Independent Director; (viii) Resignation of Director; L[ 5HFRQVWLWXWLRQRIYDULRXVFRPPLWWHHV [ $SSURYDORI5*,&/3KDQWRP6WRFN2SWLRQ6FKHPHIRUWKHHPSOR\HHVRIWKH&RPSDQ\ [L $SSURYDORI(PSOR\HHV6WRFN2SWLRQ6FKHPHRIWKH&RPSDQ\ [LL ,VVXHRI%RQXV6KDUHVLQWKHUDWLR [LLL $SSURYDOIURP,QVXUDQFH5HJXODWRU\'HYHORSPHQW$XWKRULW\RI,QGLDIRUYDULRXVSURGXFWV For $DVKLVK.%KDWW $VVRFLDWHV Company Secretaries ,&6,8QLTXH&RGH60+ $DVKLVK%KDWW 3ODFH 0XPEDL Proprietor 'DWH th$SULO $&61R &231R 19 Reliance General Insurance Company Limited $11(;85(,9 $118$/5(325721&65$&7,9,7,(6 $EULHIRXWOLQHRIWKH&RPSDQ\ V&65SROLF\LQFOXGLQJRYHUYLHZRISURMHFWVRUSURJUDPVSURSRVHGWREHXQGHUWDNHQ DQGDUHIHUHQFHWRWKHZHEOLQNWRWKH&65SROLF\DQGSURMHFWVRUSURJUDPV 7KH&RPSDQ\KDVDUREXVW&653ROLF\$VSHUWKHVDLGSROLF\DOORXUHႇRUWVDUHIRFXVHGWRZDUGVEXLOGLQJDJUHDWHQWHUSULVH IRUWKHVWDNHKROGHUV 2XUDSSURDFKLVWRLQWHUZHDYHVRFLDOUHVSRQVLELOLW\LQWRWKH&RPSDQ\¶VPDLQVWUHDPEXVLQHVVIXQFWLRQVWKURXJKWUDQVODWLQJ FRPPLWPHQWVLQWRSROLFLHVZKLFKQRWRQO\GULYHDOOHPSOR\HHVEXWLQÀXHQFHDQGPRELOL]HVWDNHKROGHUVHVSHFLDOO\SDUWQHUV DQGVXSSOLHUVWRHPEUDFHUHVSRQVLEOHEXVLQHVVSUDFWLFHVLQWKHLUUHVSHFWLYHVSKHUHVRIDFWLRQ7KHSROLF\DႈUPVEXVLQHVV objectives and strategy along with our commitment to preserve natural resources and augment the growth and development RIHPSOR\HHVDQGIDPLOLHVWKHFRPPXQLWLHVZHRSHUDWHLQVXSSOLHUVYHQGRUVDQGRXULQYHVWRUV7KURXJKWKHVRFLDOSROLF\ PDQXDOWKH&RPSDQ\VHHNVWRHQJDJHZLWKDOOWKHVWDNHKROGHUVXVLQJLWDVDUHIHUHQFHRUJXLGHOLQHIRUDOOVWDNHKROGHUV DQGSUDFWLWLRQHUV&65SROLF\LVSODFHGRQRXUZHEVLWHDWWKHOLQNZZZUHOLDQFHJHQHUDOFRLQ'RZQORDGV&RUSRUDWH6RFLDO 5HVSRQVLELOLW\3ROLF\SGI. 7KH&RPSRVLWLRQRIWKH&65&RPPLWWHH 7KH&65&RPPLWWHHFRPSULVHVRI0U+$QVDUL0U5DNHVK-DLQDQG0U/DY&KDWXUYHGL $YHUDJHQHWSUR¿WRIWKH&RPSDQ\IRUODVWWKUHH¿QDQFLDO\HDUV $YHUDJHQHWSUR¿WRI`FURUHIRUODVWWKUHH¿QDQFLDO\HDUV 3UHVFULEHG&65([SHQGLWXUH WZRSHUFHQWRIWKHDPRXQWDVLQLWHPDERYH The Company is required to spend ` 2.07 crore towards CSR. 'HWDLOVRI&65VSHQWGXULQJWKH¿QDQFLDO\HDU D 7RWDODPRXQWWREHVSHQWIRUWKH¿QDQFLDO\HDU ` 2.07 crore E $PRXQWXQVSHQWLIDQ\ 1,/ F 0DQQHULQZKLFKWKHDPRXQWVSHQWGXULQJWKH¿QDQFLDO\HDULVGHWDLOHGEHORZ (` in Crore) S. CSR project Sector in Projects or $PRXQW $PRXQW &XPXODWLYH $PRXQWVSHQW No. RUDFWLYLW\ ZKLFKWKH SURJUDPV RXWOD\ spent on the expenditure Direct or LGHQWL¿HG project is /RFDODUHD EXGJHW projects or upto the WKURXJK covered or project or SURJUDPV UHSRUWLQJ LPSOHPHQWLQJ 6SHFLI\ SURJUDPV 6XEKHDGV period DJHQF\ the State and ZLVH 'LUHFW projects or expenditure SURJUDPVZDV on projects or XQGHUWDNHQ SURJUDPV 2YHUKHDGV 1 Oncology +HDOWK Maharashtra 2.07 2.07 2.07 7KURXJK D 1RQ Centre Care SUR¿W FHQWUH specialized in the provision of health care 727$/ 2.07 2.07 2.07 ,QFDVHWKHFRPSDQ\KDVIDLOHGWRVSHQGWKHWZRSHUFHQWRIWKHDYHUDJHQHWSUR¿WRIWKHODVWWKUHH¿QDQFLDO\HDUV RUDQ\SDUWWKHUHRIWKHFRPSDQ\VKDOOSURYLGHWKHUHDVRQVIRUQRWVSHQGLQJWKHDPRXQWLQLWV%RDUGUHSRUW Not Applicable $ UHVSRQVLELOLW\ VWDWHPHQW RI WKH &65 &RPPLWWHH WKDW WKH LPSOHPHQWDWLRQ DQG PRQLWRULQJ RI &65 3ROLF\ LV LQ FRPSOLDQFHZLWK&65REMHFWLYHVDQG3ROLF\RIWKHFRPSDQ\ The implementation and monitoring of Corporate Social Responsibility (CSR) Policy is in compliance with CSR objectives and policy of the Company. 5DNHVK-DLQ +$QVDUL ([HFXWLYH'LUHFWRUDQG&(2 (Chairman of CSR Committee) 20 Annual Report 2017 - 2018 &25325$7(*29(51$1&(5(3257 3KLORVRSK\RQ&RUSRUDWH*RYHUQDQFH The Company has always maintained the highest standards of Corporate Governance. The Principles which are set in Corporate Governance Policy are disclosure, fairness, independence, transparency, accountability, responsibility, social responsibility, compliances and ethical standards. The Company strives to achieve its mission in the lights of these corporate governance principles. These principles are not just words but are strictly followed in its true and strict sense in day to day ZRUNLQJRIWKH&RPSDQ\7KH&RPSDQ\KDVDOVRIUDPHGDVWURQJZKLVWOHEORZLQJPHFKDQLVPZKHUHHPSOR\HHVZLWKRXW hesitation can raise concern or report a possible breach of law or regulation with appropriate measures to protect against retaliation against reporting employees. Timely disclosure on all material matters regarding the Company, including the ¿QDQFLDOVLWXDWLRQSHUIRUPDQFHRZQHUVKLSDQGJRYHUQDQFHDUUDQJHPHQWLVSDUWRIDFRUSRUDWHJRYHUQDQFHIUDPHZRUN,W also includes Compliance with legal and regulatory requirements. The presence of an active group of Independent Directors RQWKH%RDUGFRQWULEXWHVDJUHDWGHDOWRZDUGVHQVXULQJFRQ¿GHQFHRIWKHFXVWRPHUVDQGVWDNHKROGHUV7KH&RPSDQ\KDV laid emphasis on the cardinal values of fairness, transparency and accountability for performance at all levels, thereby HQKDQFLQJWKHVKDUHKROGHU VYDOXHDQGSURWHFWLQJWKHLQWHUHVWRIWKHVWDNHKROGHUV In our commitment to achieve sound Corporate Governance practices, the Company is guided by the following core SULQFLSOHV 1. To maintain the highest standards of transparency in all aspects of our interactions and dealings. 2. To comply with all the laws and regulations applicable to the Company. 7RFRQGXFWWKHDႇDLUVRIWKH&RPSDQ\LQDQHWKLFDOPDQQHU 7RSURPRWHWKHLQWHUHVWRIDOOVWDNHKROGHUVLQFOXGLQJFXVWRPHUVVKDUHKROGHUVHPSOR\HHVOHQGHUVYHQGRUVDQGWKH community. 5. To improve brand and reputation. 6WUHQJWKHQLQWHUQDOFRQWUROVDQGLPSURYHULVNPDQDJHPHQW 7. To ensure highest level of responsibility and accountability. (QVXUHWLPHO\GLVVHPLQDWLRQRIPDWHULDOLQIRUPDWLRQDQGPDWWHUVRILQWHUHVWRIVWDNHKROGHUV %RDUGRI'LUHFWRUV 7KH&RPSRVLWLRQRI%RDUGRI'LUHFWRUVRIWKH&RPSDQ\LVDVIROORZV 1. Mr. Rajendra Chitale 0U+DULV$QVDUL 3. Dr. Thomas Methew 4. Mrs. Chhaya Virani 0U/DY&KDWXUYHGL 0U5DNHVK-DLQ ([HFXWLYH'LUHFWRU &(2 2XWRIVL['LUHFWRUVIRXU'LUHFWRUVDUH,QGHSHQGHQW'LUHFWRUV$VSHUWKH&RUSRUDWH*RYHUQDQFHJXLGHOLQHVLVVXHGE\,5'$, your Company has constituted the Mandatory Committees viz. Audit Committee, Investment Committee, Policyholders 3URWHFWLRQ &RPPLWWHH 5LVN 0DQDJHPHQW &RPPLWWHH 1RPLQDWLRQ DQG 5HPXQHUDWLRQ &RPPLWWHH DQG &RUSRUDWH 6RFLDO 5HVSRQVLELOLW\&RPPLWWHH$GGLWLRQDOO\WKH&RPSDQ\KDVDOVRFRQVWLWXWHG6WDNHKROGHUV¶5HODWLRQVKLS&RPPLWWHHLQWHUPV of the provisions of the Companies Act, 2013. $XGLW&RPPLWWHH Your Company has constituted an Audit Committee pursuant to the provisions of Sections 177 of the Companies Act, 2013 and IRDAI Corporate Governance regulations. The Audit Committee comprises of Mr. Rajendra Chitale as Chairman, Mrs. &KKD\D9LUDQL0U+DULV$QVDULDQG0U/DY&KDWXUYHGLDV0HPEHUV$XGLW&RPPLWWHHLQWHUDOLDDGYLVHVWKHPDQDJHPHQW RQWKHDUHDVZKHUHV\VWHPVSURFHVVLQWHUQDODXGLWULVNPDQDJHPHQWFDQEHLPSURYHG7KHPLQXWHVRIWKHPHHWLQJVRI WKH$XGLW&RPPLWWHHDUHSODFHGEHIRUHWKH%RDUGIRUUHYLHZ$XGLW&RPPLWWHHUHFRPPHQGVWRWKH%RDUGDSSRLQWPHQW and remunerations of Auditors of the Company. Audit committee had discussions with Statutory Auditors before the audit FRPPHQFHVDERXWWKHQDWXUH VFRSHRIDXGLWDVZHOODVSRVWDXGLWGLVFXVVLRQVIRUDGGUHVVLQJDUHDVFRQFHUQ 21 Reliance General Insurance Company Limited ,QYHVWPHQW&RPPLWWHH Your Company has constituted an Investment Committee pursuant to the requirement of Corporate Governance Guidelines RI,5'$,3UHVHQWO\WKH&RPPLWWHHFRQVLVWVRI0U+DULV$QVDUL0U5DMHQGUD&KLWDOH0U/DY&KDWXUYHGL0U5DNHVK -DLQ0U+HPDQW-DLQ0U.5DPNXPDU0V1DQGD6DPEUDQLDQG0U.DUWKLNH\DQ$9DV0HPEHUV7KH,QYHVWPHQW &RPPLWWHHVGHFLGHVRQWKH,QYHVWPHQW3ROLF\RIWKH&RPSDQ\DQGUHYLHZVWKH,QYHVWPHQWGHFLVLRQVWDNHQE\WKH&RPSDQ\ 5HSRUWRQ,QYHVWPHQWSHUIRUPDQFHDQGLQYHVWPHQWSRUWIROLRLVDOVRSODFHGEHIRUHWKH%RDUGIRUUHYLHZ 3ROLF\KROGHUV3URWHFWLRQ&RPPLWWHH Your Company has also constituted Policyholders Protection Committee as required under Corporate Governance Guidelines RI,5'$,$WSUHVHQWWKH&RPPLWWHHFRQVLVWVRI0U+DULV$QVDUL0U/DY&KDWXUYHGLDQG0U5DNHVK-DLQDV0HPEHUV7KH Committee reviews and monitor customer grievances on regular basis. Report of the Policyholders Protection Committee is DOVRSODFHGEHIRUHWKH%RDUGRI'LUHFWRUVIRUUHYLHZ7KH&RPSDQ\KDV*ULHYDQFH5HGUHVVDO3ROLF\ZKLFKLVDSSURYHGE\ WKH%RDUGRI'LUHFWRUV 5LVN0DQDJHPHQW&RPPLWWHH 0RKDQ.KDQGHNDU &RPSDQ\6HFUHWDU\ &KLHI&RPSOLDQFH2ႈFHU 22 Annual Report 2017 - 2018 $11(;85(,)250,1*3$572)&25325$7(*29(51$1&(5(3257 '($7,/62)180%(52)0((7,1*6+(/''$7(2)0((7,1*6MEETINGS $77(1'('$1'&203(16$7,213$,' '85,1*7+(),1$1&,$/<($5 %2$5'0((7,1* 'DWHRI0HHWLQJV 1DPHRIWKH'LUHFWRU 0HHWLQJKHOGGXULQJ 0HHWLQJVDWWHQGHG &RPSHQVDWLRQSDLG*URVV FY 2017-18 6LWWLQJ)HHV ` Mr. Rajendra Chitale 12 11 440,000 0U+$QVDUL 12 12 480,000 Mr. Thomas Mathew 12 5 200,000 (appointed w.e.f. 6.10.2017) Mrs. Chhaya Virani 12 10 400,000 0U/DY&KDWXUYHGL 12 12 Nil 0U5DNHVK-DLQ 12 12 Nil ([HFXWLYH'LUHFWRU &(2 32/,&<+2/'(563527(&7,21&200,77(( 'DWHRI0HHWLQJV 22.04.2017, 18.07.2017, 01.11.2017, 25.01.2018 1DPHRIWKH'LUHFWRU0HPEHU 0HHWLQJKHOGGXULQJ 0HHWLQJVDWWHQGHG &RPSHQVDWLRQSDLG*URVV FY 2017-18 6LWWLQJ)HHV ` 0U+$QVDUL 4 4 120,000 0U/DY&KDWXUYHGL 4 4 Nil 0U5DNHVK-DLQ 4 4 Nil ([HFXWLYH'LUHFWRU &(2 0U9LYHN*DPEKLU FHDVHGWREH 4 1 Nil a member w.e.f. 18.07.2017) ,19(670(17&200,77(( 'DWHRI0HHWLQJV 22.04.2017, 18.07.2017, 01.11.2017, 25.01.2018 1DPHRIWKH'LUHFWRU0HPEHU 0HHWLQJKHOGGXULQJ 0HHWLQJVDWWHQGHG &RPSHQVDWLRQSDLG*URVV FY 2017-18 6LWWLQJ)HHV ` 0U+$QVDUL 4 4 120,000 Mr. Rajendra Chitale 4 4 120,000 0U/DY&KDWXUYHGL 4 4 Nil 0U5DNHVK-DLQ 4 4 Nil ([HFXWLYH'LUHFWRU &(2 0U+HPDQW-DLQ 4 4 Nil 0U.5DPNXPDU 4 4 Nil Mrs. Nanda Sambrani (appointed 4 2 Nil as a member w.e.f. 08.09.2017) 0U.DUWKLNH\DQ$9 4 4 Nil 0U6XGLS%DQHUMHH FHDVHGWREH 4 2 Nil a member w.e.f. 08.09.2017) 23 Reliance General Insurance Company Limited $8',7&200,77(( 'DWHRI0HHWLQJV 05.01.2018, 25.01.2018 1DPHRIWKH'LUHFWRU 0HHWLQJKHOGGXULQJ)< 0HHWLQJVDWWHQGHG &RPSHQVDWLRQSDLG*URVV 2017-18 6LWWLQJ)HHV ` Mr. Rajendra Chitale 8 7 280,000 0U+$QVDUL 8 8 320,000 Mrs. Chhaya Virani 8 8 320,000 0U/DY&KDWXUYHGL 8 8 Nil 5,6.0$1$*(0(17&200,77(( 'DWHRI0HHWLQJV 22.04.2017, 18.07.2017, 01.11.2017, 25.01.2018 1DPHRIWKH'LUHFWRU0HPEHU 0HHWLQJKHOGGXULQJ 0HHWLQJVDWWHQGHG &RPSHQVDWLRQSDLG FY 2017-18 *URVV 6LWWLQJ)HHV ` Mr. Rajendra Chitale 4 4 120,000 0U+$QVDUL 4 4 120,000 0U/DY&KDWXUYHGL 4 4 Nil 0U5DNHVK-DLQ 4 4 Nil ([HFXWLYH'LUHFWRU &(2 0U0RKDQ.KDQGHNDU 4 2 Nil (ceased to be a member w.e.f. 08.09.2017) 0U6XGLS%DQHUMHH 4 2 Nil (ceased to be a member w.e.f. 08.09.2017) 0U+HPDQW-DLQ 4 2 Nil (ceased to be a member w.e.f. 08.09.2017) 0U.5DPNXPDU 4 2 Nil (ceased to be a member w.e.f. 08.09.2017) 0U9LYHN*DPEKLU 4 1 Nil (ceased to be a member w.e.f. 18.07.2017) 0U.DUWKLNH\DQ$9 4 2 Nil (ceased to be a member w.e.f. 08.09.2017) &200,77((2)(;(&87,9(6 ,19(670(17 'DWHRI0HHWLQJV 17.10.2017, 27.11.2017, 21.12.2017, 22.01.2018, 19.02.2018, 15.03.2018 1DPHRIWKH'LUHFWRU0HPEHU 0HHWLQJKHOGGXULQJ 0HHWLQJVDWWHQGHG &RPSHQVDWLRQSDLG FY 2017-18 *URVV 6LWWLQJ)HHV ` 0U5DNHVK-DLQ 12 12 Nil ([HFXWLYH'LUHFWRU &(2 0U.5DPNXPDU 12 10 Nil Mrs. Nanda Sambrani 12 6 Nil (appointed as a member w.e.f. 08.09.2017) 0U+HPDQW-DLQ 12 10 Nil 0U.DUWKLNH\DQ$9 12 11 Nil 0U6XGLS%DQHUMHH 12 5 Nil (ceased to be a member w.e.f. 08.09.2017) 24 Annual Report 2017 - 2018 $66(7/,$%,/,7<0$1$*(0(17&200,77(( 'DWHRI0HHWLQJV 15.05.2017, 09.08.2017, 14.11.2017, 09.02.2018 1DPHRIWKH'LUHFWRU0HPEHU 0HHWLQJKHOGGXULQJ 0HHWLQJVDWWHQGHG &RPSHQVDWLRQSDLG FY 2017-18 *URVV 6LWWLQJ)HHV ` 0U/DY&KDWXUYHGL 4 4 Nil 0U5DNHVK-DLQ 4 4 Nil ([HFXWLYH'LUHFWRU &(2 0U+HPDQW-DLQ 4 4 Nil 0U.5DPNXPDU 4 4 Nil Mrs. Nanda Sambrani 4 1 Nil (appointed as a member w.e.f. 08.09.2017) 0U.DUWKLNH\DQ$9 4 4 Nil 0U6XGLS%DQHUMHH 4 2 Nil (ceased to be a member w.e.f. 08.09.2017) &25325$7(62&,$/5(63216,%,/,7<&200,77(( 'DWHRI0HHWLQJV 25.01.2018 1DPHRIWKH'LUHFWRU 0HHWLQJKHOGGXULQJ 0HHWLQJVDWWHQGHG &RPSHQVDWLRQSDLG FY 2017-18 *URVV 6LWWLQJ)HHV ` 0U+$QVDUL 1 1 30,000 0U/DY&KDWXUYHGL 1 1 Nil 0U5DNHVK-DLQ 1 1 Nil ([HFXWLYH'LUHFWRU &(2 120,1$7,21$1'5(081(5$7,21&200,77(( 'DWHRI0HHWLQJV 1DPHRIWKH'LUHFWRU 0HHWLQJKHOGGXULQJ 0HHWLQJVDWWHQGHG &RPSHQVDWLRQSDLG FY 2017-18 *URVV 6LWWLQJ)HHV ` 0U+$QVDUL 6 6 180,000 Mr. Rajendra Chitale 6 6 180,000 0U/DY&KDWXUYHGL 6 6 Nil 67$.(+2/'(565(/$7,216+,3&200,77(( 7KH&RPSDQ\FRQVWLWXWHG6WDNHKROGHUV5HODWLRQVKLS&RPPLWWHHFRQVLVWLQJRI0UV&KKD\D9LUDQL0U+DULV$QVDUL0U/DY &KDWXUYHGLDQG0U5DNHVK-DLQ1R0HHWLQJVZHUHKHOGGXULQJWKH)LQDQFLDO 25 Reliance General Insurance Company Limited $11(;85(,,)250,1*3$572)&25325$7(*29(51$1&(5(3257 3ROLF\KROGHUV3URWHFWLRQ&RPPLWWHH 1DPH 4XDOL¿FDWLRQ )LHOGRI6SHFLDOL]DWLRQ &DWHJRU\ 0U+$QVDUL Post Graduate in Science General Insurance Independent Director 0U/DY&KDWXUYHGL 0%$IURP6\UDFXVH8QLYHUVLW\1HZ 5LVN0DQDJHPHQW 1RQ([HFXWLYH'LUHFWRU $XGLW&RPPLWWHH 1DPH 4XDOL¿FDWLRQ )LHOGRI6SHFLDOL]DWLRQ &DWHJRU\ Mr. Rajendra Chitale Chartered Accountant )LQDQFH ,QVXUDQFH Independent Director 0U+$QVDUL Post Graduate in Science General Insurance Independent Director 0U/DY&KDWXUYHGL 0%$IURP6\UDFXVH8QLYHUVLW\1HZ 5LVN0DQDJHPHQW 1RQ([HFXWLYH'LUHFWRU 26 Annual Report 2017 - 2018 %RDUGRI'LUHFWRUV 1DPH 4XDOL¿FDWLRQ )LHOGRI6SHFLDOL]DWLRQ &DWHJRU\ Mr. Rajendra Chitale Chartered Accountant )LQDQFH ,QVXUDQFH Independent Director 0U+$QVDUL Post Graduate in Science General Insurance Independent Director Mr. Thomas Mathew* %$ 0$ //% 'HJUHH RI 0DVWHU RI %XUHDXFUDWH Independent Director Philosophy, Degree of Doctor of Philosophy from Jawahar Nehru University. Mrs. Chhaya Virani %$//% /HJDO Independent Director 0U/DY&KDWXUYHGL 0%$IURP6\UDFXVH8QLYHUVLW\1HZ 5LVN0DQDJHPHQW 1RQ([HFXWLYH'LUHFWRU (WKLFV&RPPLWWHH 1DPH 4XDOL¿FDWLRQ )LHOGRI6SHFLDOL]DWLRQ &DWHJRU\ 0U/DY&KDWXUYHGL 0%$IURP6\UDFXVH8QLYHUVLW\1HZ 5LVN0DQDJHPHQW 1RQ([HFXWLYH'LUHFWRU 5LVN0DQDJHPHQW&RPPLWWHH 1DPH 4XDOL¿FDWLRQ )LHOGRI6SHFLDOL]DWLRQ &DWHJRU\ Mr.Rajendra Chitale Chartered Accountant )LQDQFH ,QVXUDQFH Independent Director 0U+$QVDUL Post Graduate in Science General Insurance Independent Director 0U/DY&KDWXUYHGL 0%$IURP6\UDFXVH8QLYHUVLW\1HZ 5LVN0DQDJHPHQW 1RQ([HFXWLYH'LUHFWRU 27 Reliance General Insurance Company Limited 1DPH 4XDOL¿FDWLRQ )LHOGRI6SHFLDOL]DWLRQ &DWHJRU\ 0U.DUWKLNH\DQ$9 Fellow of Institute of Actuaries of India Actuary Employee DQG0%$%KDUDWKLGDVDQ,QVWLWXWHRI Management, Trichy *ceased to be a member w.e.f. 08.09.2017 ** ceased to be a member w.e.f. 08.09.2017 *** ceased to be a member w.e.f. 08.09.2017 # ceased to be a member w.e.f. 08.09.2017 ##ceased to be a member w.e.f. 18.07.2017 ### ceased to be a member w.e.f. 08.09.2017 &RPPLWWHHRI([HFXWLYHV ,QYHVWPHQW 1DPH 4XDOL¿FDWLRQ )LHOGRI6SHFLDOL]DWLRQ &DWHJRU\ 0U5DNHVK-DLQ Chartered Accountant, ICWAI )LQDQFH ,QVXUDQFH ([HFXWLYH'LUHFWRU &(2 0U+HPDQW-DLQ Chartered Accountant Finance Employee Mrs. Nanda Sambrani** %6F)HOORZ,QVXUDQFH,QVWLWXHRI,QGLD 5LVN0DQDJHPHQW Employee Compliance 0U.5DPNXPDU %6F &KHPLVWU\ 'LSORPDLQ%XVLQHVV Investments Employee )LQDQFH)URP,&)$,+\GHUDEDG ICWAI 0U.DUWKLNH\DQ$9 Fellow of Institute of Actuaries of India Actuary Employee DQG0%$%KDUDWKLGDVDQ,QVWLWXWHRI Management, Trichy 0U6XGLS%DQHUMHH %7HFK,,7.KDUDJSXUDQG0%$IURP ,7 5LVN0DQDJHPHQW Employee ,,0.RONDWD ** appointed as a member w.e.f. 08.09.2017 * ceased to be a member w.e.f. 08.09.2017 # ceased to be a member w.e.f. 08.09.2017 $VVHW/LDELOLW\0DQDJHPHQW&RPPLWWHH 1DPH 4XDOL¿FDWLRQ )LHOGRI6SHFLDOL]DWLRQ &DWHJRU\ 0U/DY&KDWXUYHGL 0%$IURP6\UDFXVH8QLYHUVLW\1HZ 5LVN0DQDJHPHQW 1RQ([HFXWLYH'LUHFWRU 28 Annual Report 2017 - 2018 &RUSRUDWH6RFLDO5HVSRQVLELOLW\&RPPLWWHH 1DPH 4XDOL¿FDWLRQ )LHOGRI6SHFLDOL]DWLRQ &DWHJRU\ 0U+$QVDUL Post Graduate in Science General Insurance Independent Director 0U/DY&KDWXUYHGL 0%$IURP6\UDFXVH8QLYHUVLW\1HZ 5LVN0DQDJHPHQW 1RQ([HFXWLYH'LUHFWRU 6WDNHKROGHUV5HODWLRQVKLS&RPPLWWHH 1DPH 4XDOL¿FDWLRQ )LHOGRI6SHFLDOL]DWLRQ &DWHJRU\ Mrs. Chhaya Virani %$//% /HJDO Independent Director 0U+$QVDUL Post Graduate in Science General Insurance Independent Director 0U/DY&KDWXUYHGL 0%$IURP6\UDFXVH8QLYHUVLW\1HZ 5LVN0DQDJHPHQW 1RQ([HFXWLYH'LUHFWRU 29 Reliance General Insurance Company Limited 0$1$*(0(175(3257$77$&+('727+(),1$1&,$/67$7(0(17 $621ST0$5&+ :H FRQ¿UP WKH YDOLGLW\ RI WKH UHJLVWUDWLRQ JUDQWHG E\ ,QVXUDQFH 5HJXODWRU\ 'HYHORSPHQW$XWKRULW\ RI ,QGLD IRU carrying on general insurance business. 2) We certify that all the dues payable to the statutory authorities have been duly paid. :HFRQ¿UPWKDWVKDUHKROGLQJSDWWHUQLVLQDFFRUGDQFHZLWKWKHVWDWXWRU\DQGUHJXODWRU\UHTXLUHPHQWV 4) We declare that the management has not directly or indirectly invested outside India the funds of the holders of policies issued in India. :HFRQ¿UPWKDWWKHUHTXLUHGVROYHQF\PDUJLQVKDYHEHHQPDLQWDLQHG :HFHUWLI\WKDWWKHYDOXHVRIDOOWKHDVVHWVKDYHEHHQUHYLHZHGRQWKHGDWHRIWKH%DODQFH6KHHWDQGWKDWLQWKHEHVW RIRXUEHOLHIWKHDVVHWVVHWIRUWKLQWKH%DODQFHVKHHWDUHVKRZQLQWKHDJJUHJDWHDWDPRXQWVQRWH[FHHGLQJWKHLU UHDOLVDEOHRUPDUNHWYDOXHXQGHUWKHKHDGLQJV³,QYHVWPHQWV´³$JHQWVEDODQFHV´³2XWVWDQGLQJ3UHPLXP´,QWHUHVWDQG 'LYLGHQGVDFFUXHGEXWQRWGXH%DODQFHVGXHIURPRWKHUHQWLWLHVFDUU\LQJRQLQVXUDQFHEXVLQHVV2WKHU$GYDQFHV´ ³$GYDQFHVWR6WDႇ´³'HSRVLWV´³&DVK´DQGVHYHUDOLWHPVVSHFL¿HGXQGHU³2WKHU$FFRXQWV´H[FHSWGHEWVHFXULWLHV ZKLFKDUHVWDWHGDWFRVWDPRUWLVHGFRVW 7KHFRPSDQ\LVH[SRVHGWRYDULRXVULVNVUHODWHGWRLWVLQVXUDQFHRSHUDWLRQVDQG¿QDQFLDOULVNVUHODWHGWRLWVLQYHVWPHQW SRUWIROLR7KHRSHUDWLRQDO ¿QDQFLDOULVNVDUHEHLQJFORVHO\PRQLWRUHGDQGEHLQJDFWLYHO\PDQDJHG7KHH[SRVXUH WRWKHLQVXUDQFHRSHUDWLRQVLVPDQDJHGE\LPSOHPHQWLQJXQGHUZULWLQJFRQWUROVDQGULVNWUDQVIHUWKURXJKDGHTXDWH UHLQVXUDQFHDUUDQJHPHQWV&DWDVWURSKHULVNH[SRVXUHKDVEHHQDQDO\]HGDQGDFFXPXODWLRQLVEHLQJPRQLWRUHG5LVN PRGHOVKDYHEHHQDOVREHHQXVHGRQRXUDFFXPXODWLRQWRJHWDQHVWLPDWHDQGWKHUHLQVXUDQFHSURWHFWLRQKDVWDNHQWR OLPLWRXUH[SRVXUHWRDQ\RQHHYHQWWRDQDFFHSWDEOHOLPLW 8) We have no operations in any country outside India. 9) We certify that the investments have been valued as per the Insurance Regulatory and Development Authority 3UHSDUDWLRQRI)LQDQFLDO6WDWHPHQWVDQG$XGLWRU¶V5HSRUWRI,QVXUDQFH&RPSDQLHV 5HJXODWLRQVDQGVKRZQLQ WKH%DODQFH6KHHW7KHPDUNHWYDOXHRILQYHVWPHQWVKDVEHHQDUULYHGDWDVSHUWKHJXLGHOLQHVJLYHQE\WKH,QVXUDQFH 5HJXODWRU\DQG'HYHORSPHQW$XWKRULW\EDVHGRQTXRWHGPDUNHWSULFHZKHUHYHUDYDLODEOHDQGEDVHGRQWKHPDUNHW \LHOGIRUUDWHGVHFXULWLHVQRWTXRWHGDQGDWERRNYDOXHIRUVHFXULWLHVZKLFKGRQRWKDYHUDWLQJ7KHLQYHVWPHQWSRUWIROLR LVDOVRGLYHUVL¿HGZLWKLQOLPLWVVHWXQGHUWKH,5'$,UHJXODWLRQV $JHLQJDQDO\VLVRIFODLPVRXWVWDQGLQJDQGDYHUDJHFODLPVVHWWOHPHQWWLPHIRUWKH¿YH\HDUV $JHLQJRI&ODLP2XWVWDQGLQJ FY 2017-18 `LQµ 3HULRG&ODVV Fire 0DULQH&DUJR 0DULQH+XOO Motor OD $JHLQJ Count $PRXQW Count $PRXQW Count $PRXQW Count $PRXQW GD\V 59 90,075 80 9,611 5 13,053 5,915 178,700 GD\VWR0RQWKV 231 847,976 139 81,694 6 21,129 5,812 295,384 0RQWKVWR 30 Annual Report 2017 - 2018 `LQµ 3HULRG&ODVV Motor-TP (QJLQHHULQJ /LDELOLW\ 3XEOLF/LDELOLW\ $JHLQJ Count $PRXQW Count $PRXQW Count $PRXQW Count $PRXQW GD\V 1,112 336,014 40 18,661 17 1,671 9 550 GD\VWR0RQWKV 5,605 1,327,313 73 84,955 120 15,352 89 17,123 0RQWKVWR `LQµ 3HULRG&ODVV +HDOWK $YLDWLRQ 3HUVRQDO$FFLGHQW $OO2WKHU0LVF $JHLQJ Count $PRXQW Count $PRXQW Count $PRXQW Count $PRXQW GD\V 173,654 1,378,432 1 1,000 146 39,737 105 8,454 GD\VWR0RQWKV 1512 64,646 406 61,095 104 28,400 0RQWKVWR `LQµ 3HULRG&ODVV &URSDQG:HDWKHU,QVXUDQFH Total $JHLQJ Count $PRXQW Count $PRXQW GD\V 1 114,827 181,144 2,190,785 GD\VWR0RQWKV 84 5,879 14,181 2,850,946 0RQWKVWR )< `LQµ 3HULRG&ODVV Fire 0DULQH&DUJR 0DULQH+XOO Motor OD $JHLQJ Count $PRXQW Count $PRXQW Count $PRXQW Count $PRXQW GD\V 58 85,004 139 21,908 1 10 5,893 186,239 GD\VWR0RQWKV 256 2,426,045 388 222,505 5,131 341,619 0RQWKVWR `LQµ 3HULRG&ODVV Motor-TP (QJLQHHULQJ /LDELOLW\ 3XEOLF/LDELOLW\ $JHLQJ Count $PRXQW Count $PRXQW Count $PRXQW Count $PRXQW GD\V 1,424 360,869 34 13,563 22 1,705 13 815 GD\VWR0RQWKV 5,385 1,197,232 282 125,278 94 8,730 71 5,799 0RQWKVWR 31 Reliance General Insurance Company Limited `LQµ 3HULRG&ODVV +HDOWK $YLDWLRQ 3HUVRQDO$FFLGHQW $OO2WKHU0LVF $JHLQJ Count $PRXQW Count $PRXQW Count $PRXQW Count $PRXQW GD\V 43,282 681,480 1 1,200 213 47,326 177 8,217 GD\VWR0RQWKV 1,081 44,508 2 12,334 704 159,992 275 22,255 0RQWKVWR `LQµ 3HULRG&ODVV &URSDQG:HDWKHU,QVXUDQFH Total $JHLQJ Count $PRXQW Count $PRXQW GD\V 1 102,628 51,258 1,510,965 GD\VWR0RQWKV 15 27,352 13,684 4,593,649 0RQWKVWR )< `LQµ 3HULRG&ODVV Fire 0DULQH&DUJR 0DULQH+XOO Motor OD $JHLQJ Count $PRXQW Count $PRXQW Count $PRXQW Count $PRXQW GD\V 62 26,938 82 20,892 6,837 210,688 GD\VWR0RQWKV 231 1,202,638 290 112,459 7,463 459,133 0RQWKVWR `LQµ 3HULRG&ODVV Motor-TP (QJLQHHULQJ /LDELOLW\ 3XEOLF/LDELOLW\ $JHLQJ Count $PRXQW Count $PRXQW Count $PRXQW Count $PRXQW GD\V 1,325 322,881 49 18,939 18 373 7 4,030 GD\VWR0RQWKV 6,266 1,336,866 124 71,236 173 11,466 20 5,095 0RQWKVWR `LQµ 3HULRG&ODVV +HDOWK $YLDWLRQ 3HUVRQDO$FFLGHQW $OO2WKHU0LVF $JHLQJ Count $PRXQW Count $PRXQW Count $PRXQW Count $PRXQW GD\V 116,932 909,958 180 43,457 78 5,186 GD\VWR0RQWKV 988 68,099 1 11,153 649 99,154 127 13,170 0RQWKVWR 32 Annual Report 2017 - 2018 `LQµ 3HULRG&ODVV &URS :HDWKHU Total $JHLQJ Count $PRXQW Count $PRXQW GD\V 64 274,398 125,634 1,837,740 GD\VWR0RQWKV 68 444,183 16,400 3,834,652 0RQWKVWR `LQµ 3HULRG&ODVV Motor-TP (QJLQHHULQJ /LDELOLW\ 3XEOLF/LDELOLW\ $JHLQJ Count $PRXQW Count $PRXQW Count $PRXQW Count $PRXQW GD\V 1,428 292,681 42 23,882 15 1,729 9 972 GD\VWR0RQWKV 6,627 1,307,423 125 200,043 58 5,404 28 5,718 0RQWKVWR `LQµ 3HULRG&ODVV +HDOWK $YLDWLRQ 3HUVRQDO$FFLGHQW $OO2WKHU0LVF $JHLQJ Count $PRXQW Count $PRXQW Count $PRXQW Count $PRXQW GD\V 11,437 237,730 247 30,158 49 4,641 GD\VWR0RQWKV 9,918 206,794 691 86,294 83 87,047 0RQWKVWR `LQµ 3HULRG&ODVV &URS :HDWKHU Total $JHLQJ Count $PRXQW Count $PRXQW GD\V 20 38,499 18,804 908,198 GD\VWR0RQWKV 15 565,749 23,052 3,542,050 0RQWKVWR 33 Reliance General Insurance Company Limited FY 2013-14* `LQµ 3HULRG&ODVV Fire 0DULQH&DUJR 0DULQH+XOO Motor OD $JHLQJ Count $PRXQW Count $PRXQW Count $PRXQW Count $PRXQW GD\V 89 350,690 117 22,743 5,183 285,045 GD\VWR 154 376,372 121 88,609 1 1,369 5,711 756,276 Months 0RQWKVWR `LQµ 3HULRG&ODVV Motor-TP (QJLQHHULQJ /LDELOLW\ 3XEOLF/LDELOLW\ $JHLQJ Count $PRXQW Count $PRXQW Count $PRXQW Count $PRXQW GD\V 1,359 257,981 106 97,577 19 2,311 8 1,205 GD\VWR0RQWKV 6,271 1,223,010 224 664,329 48 10,180 18 5,553 0RQWKVWR `LQµ 3HULRG&ODVV +HDOWK $YLDWLRQ 3HUVRQDO$FFLGHQW $OO2WKHU0LVF $JHLQJ Count $PRXQW Count $PRXQW Count $PRXQW Count $PRXQW GD\V 48,252 427,092 1 85 205 16,720 69 4,068 GD\VWR0RQWKV 9,157 205,272 651 48,890 241 70,404 0RQWKVWR `LQµ 3HULRG&ODVV &URS :HDWKHU Total $JHLQJ Count $PRXQW Count $PRXQW GD\V 8 14,864 55,416 14,80,381 GD\VWR0RQWKV 17 36,983 22,614 34,87,247 0RQWKVWR 34 Annual Report 2017 - 2018 $YHUDJHFODLPVVHWWOHPHQWWLPH 3URGXFW FY 2017-18 )< )< FY 2014-15 FY 2013-14 Class 1RRI $YHUDJH 1RRI $YHUDJH 1RRI $YHUDJH 1RRI $YHUDJH 1RRI $YHUDJH &ODLPV 6HWWOHPHQW &ODLPV 6HWWOHPHQW &ODLPV 6HWWOHPHQW &ODLPV 6HWWOHPHQW &ODLPV 6HWWOHPHQW 7LPH 'D\V 7LPH 'D\V 7LPH 'D\V 7LPH 'D\V 7LPH 'D\V Fire 1,165 156 924 157 841 138 853 130 653 119 Marine 3,653 82 4,032 47 2,353 67 1,134 68 1,098 63 &DUJR 0DULQH+XOO 2 163 3 305 1 1,659 1 859 Motor OD4 201,476 47 193,996 20 162,794 23 143,402 21 137,308 23 (QJLQHHULQJ 744 106 577 122 511 142 430 171 505 113 /LDELOLW\ 159 234 184 242 186 138 159 147 117 176 Public 3 13 2 555 10 582 1 173 21 89 /LDELOLW\ +HDOWK2 Govt 625,305 1 178,699 1 486,171 1 586,950 1 1,135,912 1 $SSURYHG 6FKHPH +HDOWK 3 122,182 9 60,920 16 59,169 21 62,845 31 58,737 32 Other $YLDWLRQ 1 161 1 486 1 51 2 878 2 494 Public 1,928 188 2,705 1,038 2,161 176 2,106 134 1,394 119 $FFLGHQW $OO2WKHU 233,866 2 2,433 42 1,036 87 1,220 147 1,147 82 Misc Total 1,190,484 715,233 799,103 1RWHV 7KHDERYHDYHUDJHFODLPVVHWWOHPHQWWLPHGRHVQRWLQFOXGH7KLUG3DUW\FODLPVZKLFKKDYHWREHVHWWOHGWKURXJK MACT and other judicial bodies.. $YHUDJHVHWWOHPHQWWLPHRI*RYHUQPHQW6SRQVRUHG6FKHPHVUHODWHGWR+HDOWKFODLPVDUHVHSDUDWHO\VKRZQ since they are cashless arrangements and settled on same day. $YHUDJHVHWWOHPHQWWLPHIRU2WKHU+HDOWK&ODLPVLVFDOFXODWHGFRQVLGHULQJFDVKOHVVDUUDQJHPHQWDVVDPHGD\ settlement. 4. Average settlement time for Motor OD claims is calculated considering Garage Payments as same day settlement. $0DMRULW\RIWKH&RPSDQ\¶VLQYHVWPHQWLVLQ¿[HGLQFRPHVHFXULWLHV7KH)L[HG,QFRPHSRUWLRQLVLQYHVWHGPDLQO\LQ *RYHUQPHQWVHFXULWLHVDQG$$$RU$$UDWHGERQGV7KHSULPDU\REMHFWLYHZKHQLQYHVWLQJLV6DIHW\/LTXLGLW\DQG Return. The Company monitors the cash position daily and seasonal liquidity needs are considered while planning PDWXULWLHV RI LQYHVWPHQWV 1RQH RI WKH ¿[HG LQFRPH LQYHVWPHQWV KDYH KDG DQ\ GHOD\V LQ VHUYLFLQJ RI LQWHUHVW RU SULQFLSDODPRXQWV%DVHGRQWKHSDVWWUDFNUHFRUGWKH0DQDJHPHQWKDVUHDVRQDEOHFRQ¿GHQFHLQWKHTXDOLW\DQG H[SHFWHGSHUIRUPDQFHRIWKHLQYHVWPHQWVLQOLQHZLWKWKHREMHFWLYHV :HDOVRFRQ¿UP D LQWKHSUHSDUDWLRQRI¿QDQFLDOVWDWHPHQWVWKHDSSOLFDEOHDFFRXQWLQJVWDQGDUGVSULQFLSOHVDQGSROLFLHVKDYHEHHQ IROORZHGDORQJZLWKSURSHUH[SODQDWLRQVUHODWLQJWRPDWHULDOGHSDUWXUHVLIDQ\ b) the management has adopted accounting policies and applied them consistently and made judgements and HVWLPDWHVWKDWDUHUHDVRQDEOHDQGSUXGHQWVRDVWRJLYHDWUXHDQGIDLUYLHZRIWKHVWDWHRIDႇDLUVRIWKHFRPSDQ\ DWWKHHQGRIWKH¿QDQFLDO\HDUDQGRIWKHRSHUDWLQJSUR¿WDQGRIWKHSUR¿WRIWKHFRPSDQ\IRUWKH\HDU F WKHPDQDJHPHQWKDVWDNHQSURSHUDQGVXႈFLHQWFDUHIRUWKHPDLQWHQDQFHRIDGHTXDWHDFFRXQWLQJUHFRUGVLQ DFFRUGDQFHZLWKWKHDSSOLFDEOHSURYLVLRQVRIWKH,QVXUDQFH$FW ,QVXUDQFH/DZV $PHQGPHQW $FW WR WKHH[WHQGQRWL¿HG &RPSDQLHV$FW &RPSDQLHV$FW WRWKHH[WHQGDSSOLFDEOH IRUVDIHJXDUGLQJWKH assets of the company and for preventing and detecting fraud and other irregularities; 35 Reliance General Insurance Company Limited G WKHPDQDJHPHQWKDVSUHSDUHGWKH¿QDQFLDOVWDWHPHQWVRQDJRLQJFRQFHUQEDVLV e) the management has ensured that an internal audit system commensurate with the size and nature of the business H[LVWVDQGLVRSHUDWLQJHႇHFWLYHO\ 'HWDLOVRISD\PHQWVGXULQJWKH¿QDQFLDO\HDUWRLQGLYLGXDOV¿UPVFRPSDQLHVDQGRUJDQLVDWLRQVLQZKLFK'LUHFWRUVDUH LQWHUHVWHGLQFOXGLQJUHLPEXUVHPHQW `LQµ Sr 1DPH2I (QWLW\LQZKLFK'LUHFWRULV Interested 1DWXUH2I3D\PHQW $PRXQW No. Director Interested $V 1 Chayya Virani 5HOLDQFHFRPPXQLFDWLRQ/LPLWHG Director Claim Paid 3,132 5HLPEXUVHPHQWSDLGIRUH[SHQVHV 45,505 5HQW,QWHUQHW 7HOHSKRQH([SHQVHV 5HOLDQFH&DSLWDO/WG Director Claim Paid 300 5HLPEXUVHPHQWSDLGIRUH[SHQVHV 5H 225 nt,Communication,Electricity,Profession al fees,Maintenance Charges) Management fees paid 60,000 Dividend paid 62,887 Reimbursement paid for IT services 38,335 2 /DY Reliance Commercial Finance Director Claim Paid 66 Chaturvedi /LPLWHG 3 Rajendra 5HOLDQFH&DSLWDO/WG Director Claim Paid 300 Chitale 5HLPEXUVHPHQWSDLGIRUH[SHQVHV 5H 225 nt,Communication,Electricity,Profession al fees,Maintenance Charges) Management fees paid 60,000 Dividend paid 62,887 Reimbursement paid for IT services 38,335 5HOLDQFH1LSSRQ/LIH,QVXUDQFH Director Claim Paid 1,577 &RPSDQ\/LPLWHG IRUPHUO\5HOLDQFH /LIH,QVXUDQFH&RPSDQ\/LPLWHG Transaction of purchase of Security 161,452 )RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUV Rajendra Chitale +$QVDUL 'LUHFWRU ',11R 'LUHFWRU ',11R 'U7KRPDV0DWKHZ &KKD\D9LUDQL 'LUHFWRU ',1 'LUHFWRU ',1 /DY&KDWXUYHGL 5DNHVK-DLQ 'LUHFWRU ',1 ([HFXWLYH'LUHFWRU &(2 ',1 +HPDQW.-DLQ 0RKDQ.KDQGHNDU &KLHI)LQDQFLDO2ႈFHU &RPSDQ\6HFUHWDU\ (Membership No. A8515) 3ODFH 0XPEDL 'DWH $SULO 36 Annual Report 2017 - 2018 ,1'(3(1'(17$8',7256¶5(3257 727+(0(0%(562)5(/,$1&(*(1(5$/,1685$1&(&203$1</,0,7(' 5HSRUWRQWKH)LQDQFLDO6WDWHPHQWV :H KDYH DXGLWHG WKH DFFRPSDQ\LQJ ¿QDQFLDO VWDWHPHQWV RI 5HOLDQFH *HQHUDO ,QVXUDQFH &RPSDQ\ /LPLWHG (“the &RPSDQ\´ ZKLFK FRPSULVH WKH %DODQFH 6KHHW DV DW 0DUFK WKH UHODWHG 5HYHQXH$FFRXQW DOVR FDOOHG WKH ³3ROLF\KROGHUV¶$FFRXQW´RUWKH³7HFKQLFDO$FFRXQW´ WKH3UR¿WDQG/RVV$FFRXQW DOVRFDOOHGWKH³6KDUHKROGHUV¶$FFRXQW´ RU ³1RQ7HFKQLFDO$FFRXQW´ DQG WKH 5HFHLSWV DQG 3D\PHQWV$FFRXQW IRU WKH \HDU WKHQ HQGHG DQG D VXPPDU\ RI WKH VLJQL¿FDQWDFFRXQWLQJSROLFLHVDQGRWKHUH[SODQDWRU\LQIRUPDWLRQ 0DQDJHPHQW¶V5HVSRQVLELOLW\IRUWKH)LQDQFLDO6WDWHPHQWV 7KH&RPSDQ\¶V%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRUWKHPDWWHUVVWDWHGLQ6HFWLRQ RIWKH&RPSDQLHV$FW ³WKH$FW´ ZLWKUHVSHFWWRWKHSUHSDUDWLRQRIWKHVH¿QDQFLDOVWDWHPHQWVWRJLYHDWUXHDQGIDLUYLHZRIWKH¿QDQFLDOSRVLWLRQ ¿QDQFLDOSHUIRUPDQFHDQGUHFHLSWVDQGSD\PHQWVRIWKH&RPSDQ\LQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRIWKH,QVXUDQFH $FW WKH³,QVXUDQFH$FW´ DVDPHQGHGE\,QVXUDQFH/DZV $PHQGPHQW $FWUHDGZLWK,QVXUDQFH5HJXODWRU\ DQG'HYHORSPHQW$FW WKH³,5'$$FW´ ,QVXUDQFH5HJXODWRU\DQG'HYHORSPHQW$XWKRULW\ 3UHSDUDWLRQRI)LQDQFLDO 6WDWHPHQWVDQG$XGLWRU¶V5HSRUWRI,QVXUDQFH&RPSDQLHV 5HJXODWLRQV WKH³,5'$)LQDQFLDO6WDWHPHQWV5HJXODWLRQV´ RUGHUGLUHFWLRQVLVVXHGE\WKH,QVXUDQFH5HJXODWRU\DQG'HYHORSPHQW$XWKRULW\RI,QGLD ³,5'$,´ LQWKLVUHJDUGDQGLQ DFFRUGDQFHZLWKWKHDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQ,QGLDLQFOXGLQJWKH$FFRXQWLQJ6WDQGDUGVVSHFL¿HGXQGHU 6HFWLRQRIWKH$FWUHDGZLWK5XOHRIWKH&RPSDQLHV $FFRXQWV 5XOHVWRWKHH[WHQWDSSOLFDEOHDQGLQWKHPDQQHU so required. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection DQGDSSOLFDWLRQRIDSSURSULDWHDFFRXQWLQJSROLFLHV PDNLQJMXGJPHQWVDQGHVWLPDWHVWKDWDUHUHDVRQDEOHDQGSUXGHQW DQG GHVLJQLPSOHPHQWDWLRQDQGPDLQWHQDQFHRIDGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROVWKDWZHUHRSHUDWLQJHႇHFWLYHO\IRUHQVXULQJ WKHDFFXUDF\DQGFRPSOHWHQHVVRIWKHDFFRXQWLQJUHFRUGVUHOHYDQWWRWKHSUHSDUDWLRQDQGSUHVHQWDWLRQRIWKH¿QDQFLDO statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. $XGLWRU¶V5HVSRQVLELOLW\ 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKHVH¿QDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW :HKDYHWDNHQLQWRDFFRXQWWKHSURYLVLRQVRIWKH$FWWKH,QVXUDQFH$FWWKH,5'$$FWWKH,5'$)LQDQFLDO6WDWHPHQWV 5HJXODWLRQVRUGHUVGLUHFWLRQVFLUFXODUVLVVXHGE\WKH,5'$,WKHDFFRXQWLQJVWDQGDUGVWRWKHH[WHQWDSSOLFDEOHDQGDXGLWLQJ standards and matters which are required to be included in the audit report and the Rules made thereunder. :HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWKWKH6WDQGDUGVRQ$XGLWLQJVSHFL¿HGXQGHU6HFWLRQ RIWKH$FWDQGRWKHU applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable DVVXUDQFHDERXWZKHWKHUWKH¿QDQFLDOVWDWHPHQWVDUHIUHHIURPPDWHULDOPLVVWDWHPHQW $QDXGLWLQYROYHVSHUIRUPLQJSURFHGXUHVWRREWDLQDXGLWHYLGHQFHDERXWWKHDPRXQWVDQGWKHGLVFORVXUHVLQWKH¿QDQFLDO VWDWHPHQWV7KHSURFHGXUHVVHOHFWHGGHSHQGRQWKHDXGLWRU¶VMXGJPHQWLQFOXGLQJWKHDVVHVVPHQWRIWKHULVNVRIPDWHULDO PLVVWDWHPHQWRIWKH¿QDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU,QPDNLQJWKRVHULVNDVVHVVPHQWVWKHDXGLWRU FRQVLGHUVLQWHUQDO¿QDQFLDOFRQWUROUHOHYDQWWRWKH&RPSDQ\¶VSUHSDUDWLRQRIWKH¿QDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQG fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the &RPSDQ\¶V'LUHFWRUVDVZHOODVHYDOXDWLQJWKHRYHUDOOSUHVHQWDWLRQRIWKH¿QDQFLDOVWDWHPHQWV :HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXႈFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQRQ WKH¿QDQFLDOVWDWHPHQWV Opinion ,QRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXVWKHDIRUHVDLG¿QDQFLDO statements are prepared in accordance with the requirements of the Insurance Act, the IRDA Act, the IRDA Financial 6WDWHPHQWV5HJXODWLRQVDQGWKH$FWWRWKHH[WHQWDSSOLFDEOHDQGLQWKHPDQQHUVRUHTXLUHGDQGJLYHDWUXHDQGIDLUYLHZLQ FRQIRUPLW\ZLWKWKHDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQ,QGLDDVDSSOLFDEOHWRLQVXUDQFHFRPSDQLHV 37 Reliance General Insurance Company Limited D LQWKHFDVHRIWKH%DODQFH6KHHWRIWKHVWDWHRIDႇDLUVRIWKH&RPSDQ\DVDW0DUFK E LQWKHFDVHRIWKH5HYHQXH$FFRXQWRIWKHRSHUDWLQJSUR¿WIRUWKH\HDUHQGHGRQWKDWGDWH F LQWKHFDVHRIWKH3UR¿WDQG/RVV$FFRXQWRIWKHSUR¿WIRUWKH\HDUHQGHGRQWKDWGDWH DQG (d) in the case of the Receipts and Payments Account, of the receipts and payments for the year ended on that date. Other Matters 7KHDFWXDULDOYDOXDWLRQRIOLDELOLWLHVLQUHVSHFWRI&ODLPV,QFXUUHG%XW1RW5HSRUWHG ,%15 DQG&ODLPV,QFXUUHG%XW1RW (QRXJK 5HSRUWHG ,%1(5 LV WKH UHVSRQVLELOLW\ RI WKH &RPSDQ\¶V$SSRLQWHG$FWXDU\ 7KH DFWXDULDO YDOXDWLRQ RI WKHVH OLDELOLWLHVDVDW0DUFKKDVEHHQGXO\FHUWL¿HGE\WKH$SSRLQWHG$FWXDU\DQGWKH0HQWRUWRWKH$SSRLQWHG$FWXDU\ 7KH$SSRLQWHG$FWXDU\DQGWKH0HQWRUWRWKH$SSRLQWHG$FWXDU\KDYHDOVRFHUWL¿HGWKDWLQWKHLURSLQLRQWKHDVVXPSWLRQV for such valuation are in accordance with the guidelines and norms issued by IRDAI and the Institute of Actuaries of India LQFRQFXUUHQFHZLWKWKH$XWKRULW\:HKDYHUHOLHGXSRQWKH&RPSDQ\¶V$SSRLQWHG$FWXDU\DQG0HQWRUWRWKH$SSRLQWHG $FWXDU\ VFHUWL¿FDWHLQWKLVUHJDUGIRUIRUPLQJRXURSLQLRQRQWKH¿QDQFLDOVWDWHPHQWVRIWKH&RPSDQ\ 7KH¿QDQFLDOVWDWHPHQWVRIWKH&RPSDQ\IRUWKH\HDUHQGHG0DUFKZHUHDXGLWHGE\WKHWKHQMRLQWVWDWXWRU\DXGLWRU +DULEKDNWL &R//3DQGWKHSUHVHQWMRLQWVWDWXWRU\DXGLWRU3DWKDN+' $VVRFLDWHVZKRYLGHWKHLUUHSRUWGDWHG$SULO H[SUHVVHGDQXQPRGL¿HGRSLQLRQRQWKRVH¿QDQFLDOVWDWHPHQWV$FFRUGLQJO\ZH3ULFH:DWHUKRXVH&KDUWHUHG $FFRXQWDQWV//3GRQRWH[SUHVVDQ\RSLQLRQRQWKH¿JXUHVUHSRUWHGRI0DUFKLQWKH)LQDQFLDO6WDWHPHQWV 5HSRUWRQ2WKHU/HJDODQG5HJXODWRU\5HTXLUHPHQWV $VUHTXLUHGE\WKH5HJXODWLRQVZHKDYHLVVXHGDVHSDUDWHFHUWL¿FDWHGDWHG$SULO FHUWLI\LQJWKHPDWWHUVVSHFL¿HG in paragraphs 3 and 4 of Schedule C to the IRDA Financial Statements Regulations. )XUWKHU WR RXU FRPPHQWV LQ WKH &HUWL¿FDWH UHIHUUHG WR LQ 3DUDJUDSK DERYH DV UHTXLUHG XQGHU WKH ,5'$ )LQDQFLDO 6WDWHPHQWV5HJXODWLRQVUHDGZLWK6HFWLRQ RIWKH$FWZHUHSRUWWKDW D :HKDYHVRXJKWDQGREWDLQHGDOOWKHLQIRUPDWLRQDQGH[SODQDWLRQVZKLFKWRWKHEHVWRIRXUNQRZOHGJHDQGEHOLHIZHUH necessary for the purposes of our audit; E ,QRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXVSURSHUERRNVRIDFFRXQW DVUHTXLUHGE\ODZKDYHEHHQPDLQWDLQHGE\WKH&RPSDQ\VRIDUDVLWDSSHDUVIURPRXUH[DPLQDWLRQRIWKRVHERRNV F $VWKH&RPSDQ\¶V¿QDQFLDODFFRXQWLQJV\VWHPLVFHQWUDOL]HGDW+HDG2ႈFHQRUHWXUQVIRUWKHSXUSRVHVRIRXUDXGLW DUHSUHSDUHGDWWKHEUDQFKHVDQGRWKHURႈFHVRIWKH&RPSDQ\ G 7KH%DODQFH6KHHWWKH5HYHQXH$FFRXQWWKH3UR¿WDQG/RVV$FFRXQWDQGWKH5HFHLSWVDQG3D\PHQWV$FFRXQWGHDOW ZLWKE\WKLV5HSRUWDUHLQDJUHHPHQWZLWKWKHERRNVRIDFFRXQW H ,QRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXVLQYHVWPHQWVKDYHEHHQ valued in accordance with the provisions of the Insurance Act, 1938 and the IRDA Financial Statements Regulations DQGRURUGHUVGLUHFWLRQVLVVXHGE\WKH,5'$,LQWKLVEHKDOI I ,QRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXVWKHDFFRXQWLQJSROLFLHV selected by the Company are appropriate and are in compliance with the Accounting Standards referred to in Section RIWKH&RPSDQLHV$FWUHDGZLWK5XOHRIWKH&RPSDQLHV $FFRXQWV 5XOHVWRWKHH[WHQWWKH\DUH QRWLQFRQVLVWHQWZLWKWKHDFFRXQWLQJSULQFLSOHVSUHVFULEHGLQWKH,5'$)LQDQFLDO6WDWHPHQWV5HJXODWLRQVDQGRUGHUV directions issued by the IRDAI in this behalf; J ,QRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXVWKH%DODQFH6KHHW WKH5HYHQXH$FFRXQWWKH3UR¿WDQG/RVV$FFRXQWDQGWKH5HFHLSWVDQG3D\PHQWV$FFRXQWGHDOWZLWKE\WKLVUHSRUW comply with the Accounting Standards referred to in Section 133 of the Companies Act, 2013, read with Rule 7 of the &RPSDQLHV $FFRXQWV 5XOHVWRWKHH[WHQWWKH\DUHQRWLQFRQVLVWHQWZLWKWKHDFFRXQWLQJSULQFLSOHVSUHVFULEHGLQ WKH,5'$)LQDQFLDO6WDWHPHQWV5HJXODWLRQVDQGRUGHUVGLUHFWLRQVLVVXHGE\,5'$,LQWKLVUHJDUG DQG K 2QWKHEDVLVRIWKHZULWWHQUHSUHVHQWDWLRQVUHFHLYHGIURPWKHGLUHFWRUVDVRQ0DUFKWDNHQRQUHFRUGE\WKH %RDUGRI'LUHFWRUVQRQHRIWKHGLUHFWRUVLVGLVTXDOL¿HGDVRQ0DUFKIURPEHLQJDSSRLQWHGDVDGLUHFWRULQ terms of Section 164 (2) of the Act. L :LWKUHVSHFWWRWKHDGHTXDF\RIWKHLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJRIWKH&RPSDQ\DQGWKHRSHUDWLQJ HႇHFWLYHQHVVRIVXFKFRQWUROVUHIHUWR³$QQH[XUH$´WRWKLVUHSRUW 38 Annual Report 2017 - 2018 M :LWKUHVSHFWWRWKHRWKHUPDWWHUVWREHLQFOXGHGLQWKH$XGLWRU¶V5HSRUWLQDFFRUGDQFHZLWK5XOHRIWKH&RPSDQLHV $XGLWDQG$XGLWRUV 5XOHVLQRXURSLQLRQDQGWRWKHEHVWRIRXUNQRZOHGJHDQGEHOLHIDQGDFFRUGLQJWRWKH LQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXV L 7KH&RPSDQ\KDVGLVFORVHGWKHLPSDFWRISHQGLQJOLWLJDWLRQVDVDW0DUFKRQLWV¿QDQFLDOSRVLWLRQLQLWV ¿QDQFLDOVWDWHPHQWV5HIHU6FKHGXOHQRWHWRWKH¿QDQFLDOVWDWHPHQWV ii. The Company has long term contracts for which there were no material foreseeable losses. The Company did not have any derivative contracts as at March 31, 2018; iii. There are no amounts which are required to be transferred, to the Investor Education and Protection Fund by the Company for the year ended March 31, 2018. )RU3ULFH:DWHUKRXVH&KDUWHUHG$FFRXQWDQWV//3 For 3DWKDN+' $VVRFLDWHV Chartered Accountants Chartered Accountants )LUP5HJLVWUDWLRQ1R11 )LUP5HJLVWUDWLRQ1R: 6KDUPLOD$.DUYH 0XNHVK0HKWD Partner Partner Membership No. 043229 Membership No. 043495 3ODFH 1HZ 39 Reliance General Insurance Company Limited $11(;85($727+(,1'(3(1'(17$8',7256¶5(3257 5HIHUUHGWRLQSDUDJUDSK L RIWKH,QGHSHQGHQW$XGLWRUV¶5HSRUWRIHYHQGDWHWRWKHPHPEHUVRI5HOLDQFH*HQHUDO,QVXUDQFH &RPSDQ\/LPLWHGRQWKH¿QDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK 5HSRUWRQWKH,QWHUQDO)LQDQFLDO&RQWUROVXQGHU&ODXVH L RI6XEVHFWLRQRI6HFWLRQRIWKH$FW :HKDYHDXGLWHGWKHLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJRI5HOLDQFH*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG ³WKH&RPSDQ\´ DVRI0DUFKLQFRQMXQFWLRQZLWKRXUDXGLWRIWKH¿QDQFLDOVWDWHPHQWVRIWKH&RPSDQ\IRUWKH\HDU ended on that date. 0DQDJHPHQW¶V5HVSRQVLELOLW\IRU,QWHUQDO)LQDQFLDO&RQWUROV 7KH&RPSDQ\¶VPDQDJHPHQWLVUHVSRQVLEOHIRUHVWDEOLVKLQJDQGPDLQWDLQLQJLQWHUQDO¿QDQFLDOFRQWUROVEDVHGRQWKHLQWHUQDO FRQWURORYHU¿QDQFLDOUHSRUWLQJFULWHULDHVWDEOLVKHGE\WKH&RPSDQ\FRQVLGHULQJWKHHVVHQWLDOFRPSRQHQWVRILQWHUQDOFRQWURO stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of DGHTXDWH LQWHUQDO ¿QDQFLDO FRQWUROV WKDW ZHUH RSHUDWLQJ HႇHFWLYHO\ IRU HQVXULQJ WKH RUGHUO\ DQG HႈFLHQW FRQGXFW RI LWV EXVLQHVVLQFOXGLQJDGKHUHQFHWRFRPSDQ\¶VSROLFLHVWKHVDIHJXDUGLQJRILWVDVVHWVWKHSUHYHQWLRQDQGGHWHFWLRQRIIUDXGV DQG HUURUV WKH DFFXUDF\ DQG FRPSOHWHQHVV RI WKH DFFRXQWLQJ UHFRUGV DQG WKH WLPHO\ SUHSDUDWLRQ RI UHOLDEOH ¿QDQFLDO LQIRUPDWLRQDVUHTXLUHGXQGHUWKH&RPSDQLHV$FW WKH³$FW´ $XGLWRUV¶5HVSRQVLELOLW\ 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKH&RPSDQ\¶VLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJEDVHGRQRXU audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial 5HSRUWLQJ WKH³*XLGDQFH1RWH´ DQGWKH6WDQGDUGVRQ$XGLWLQJGHHPHGWREHSUHVFULEHGXQGHUVHFWLRQ RIWKH$FW WRWKHH[WHQWDSSOLFDEOHWRDQDXGLWRILQWHUQDO¿QDQFLDOFRQWUROVERWKDSSOLFDEOHWRDQDXGLWRILQWHUQDO¿QDQFLDOFRQWUROVDQG both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and SODQDQGSHUIRUPWKHDXGLWWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUDGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDO UHSRUWLQJZDVHVWDEOLVKHGDQGPDLQWDLQHGDQGLIVXFKFRQWUROVRSHUDWHGHႇHFWLYHO\LQDOOPDWHULDOUHVSHFWV 2XUDXGLWLQYROYHVSHUIRUPLQJSURFHGXUHVWRREWDLQDXGLWHYLGHQFHDERXWWKHDGHTXDF\RIWKHLQWHUQDO¿QDQFLDOFRQWUROV V\VWHP RYHU ¿QDQFLDO UHSRUWLQJ DQG WKHLU RSHUDWLQJ HႇHFWLYHQHVV 2XU DXGLW RI LQWHUQDO ¿QDQFLDO FRQWUROV RYHU ¿QDQFLDO UHSRUWLQJLQFOXGHGREWDLQLQJDQXQGHUVWDQGLQJRILQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJDVVHVVLQJWKHULVNWKDW DPDWHULDOZHDNQHVVH[LVWVDQGWHVWLQJDQGHYDOXDWLQJWKHGHVLJQDQGRSHUDWLQJHႇHFWLYHQHVVRILQWHUQDOFRQWUROEDVHGRQ WKHDVVHVVHGULVN7KHSURFHGXUHVVHOHFWHGGHSHQGRQWKHDXGLWRU¶VMXGJHPHQWLQFOXGLQJWKHDVVHVVPHQWRIWKHULVNVRI PDWHULDOPLVVWDWHPHQWRIWKH¿QDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU :HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXႈFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQRQ WKH&RPSDQ\¶VLQWHUQDO¿QDQFLDOFRQWUROVV\VWHPRYHU¿QDQFLDOUHSRUWLQJ 0HDQLQJRI,QWHUQDO)LQDQFLDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJ $ FRPSDQ\¶V LQWHUQDO ¿QDQFLDO FRQWURO RYHU ¿QDQFLDO UHSRUWLQJ LV D SURFHVV GHVLJQHG WR SURYLGH UHDVRQDEOH DVVXUDQFH UHJDUGLQJWKHUHOLDELOLW\RI¿QDQFLDOUHSRUWLQJDQGWKHSUHSDUDWLRQRI¿QDQFLDOVWDWHPHQWVIRUH[WHUQDOSXUSRVHVLQDFFRUGDQFH ZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV$FRPSDQ\¶VLQWHUQDO¿QDQFLDOFRQWURORYHU¿QDQFLDOUHSRUWLQJLQFOXGHVWKRVH SROLFLHVDQGSURFHGXUHVWKDW SHUWDLQWRWKHPDLQWHQDQFHRIUHFRUGVWKDWLQUHDVRQDEOHGHWDLODFFXUDWHO\DQGIDLUO\UHÀHFW the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are UHFRUGHGDVQHFHVVDU\WRSHUPLWSUHSDUDWLRQRI¿QDQFLDOVWDWHPHQWVLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJ SULQFLSOHVDQGWKDWUHFHLSWVDQGH[SHQGLWXUHVRIWKHFRPSDQ\DUHEHLQJPDGHRQO\LQDFFRUGDQFHZLWKDXWKRULVDWLRQVRI management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection RIXQDXWKRULVHGDFTXLVLWLRQXVHRUGLVSRVLWLRQRIWKHFRPSDQ\¶VDVVHWVWKDWFRXOGKDYHDPDWHULDOHႇHFWRQWKH¿QDQFLDO statements. ,QKHUHQW/LPLWDWLRQVRI,QWHUQDO)LQDQFLDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJ %HFDXVHRIWKHLQKHUHQWOLPLWDWLRQVRILQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJLQFOXGLQJWKHSRVVLELOLW\RIFROOXVLRQ or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. $OVRSURMHFWLRQVRIDQ\HYDOXDWLRQRIWKHLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJWRIXWXUHSHULRGVDUHVXEMHFWWR WKHULVNWKDWWKHLQWHUQDO¿QDQFLDOFRQWURORYHU¿QDQFLDOUHSRUWLQJPD\EHFRPHLQDGHTXDWHEHFDXVHRIFKDQJHVLQFRQGLWLRQV or that the degree of compliance with the policies or procedures may deteriorate. 40 Annual Report 2017 - 2018 Opinion ,QRXURSLQLRQWKH&RPSDQ\KDVLQDOOPDWHULDOUHVSHFWVDQDGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROVV\VWHPRYHU¿QDQFLDO UHSRUWLQJDQGVXFKLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJZHUHRSHUDWLQJHႇHFWLYHO\DVDW0DUFKEDVHG RQWKHLQWHUQDOFRQWURORYHU¿QDQFLDOUHSRUWLQJFULWHULDHVWDEOLVKHGE\WKH&RPSDQ\FRQVLGHULQJWKHHVVHQWLDOFRPSRQHQWVRI internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. 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Miscellaneous Insurance 398,809 514,411 ,QFRPHIURP,QYHVWPHQWV ,QWHUHVW'LYLGHQG 5HQW±*URVV 770,169 3UR¿WRQVDOHUHGHPSWLRQRILQYHVWPHQWV 87,129 239,857 /HVV /RVVRQVDOHUHGHPSWLRQRILQYHVWPHQW (17,538) 992,488 2WKHU,QFRPH 3UR¿W /RVV RQVDOHGLVFDUGRIDVVHWV (70) Miscellaneous Income 18,523 5,208 ([FHVV3URYLVLRQ:ULWWHQ%DFN 3,204 4,484 20,959 9,622 727$/ $ 3URYLVLRQV 2WKHUWKDQ7D[DWLRQ (a) For diminution in the value of investment - - (b) For doubtful debts 148,944 F %DGGHEWZRႇ 27,159 /HVV 3URYLVLRQKHOG - 18,768 Other Expenses ([SHQVHVRWKHUWKDQWKRVHUHODWHGWR,QVXUDQFH%XVLQHVV (PSR\HH VUHPXQHUDWLRQDQGZHOIDUHEHQH¿WV 15,746 0DQDJHULDOUHPXQHUDWLRQ 32,400 27,400 $PRUWLVDWLRQRI'HEHQWXUH([SHQVHV 2,915 1,942 ,QWHUHVWRQ6WDWXWRU\/LDELOLW\ 18,752 1 /HJDOIHHRQVKDUHFDSLWDO 8,500 81,829 45,089 ([SHQGLWXUHRQ5HGXFWLRQRI6KDUH&DSLWDO 5HIHUQRWHQRRI6FKHGXOH - 1,513 Interest on Non Convertible Debenture (Refer note no.19 of Schedule 17) 209,300 131,439 &RUSRUDWH6RFLDO5HVSRQVLELOLW\([SHQVH 5HIHUQRWHQRRI6FKHGXOH 20,722 16,277 Penalty (Refer note no.27 of Schedule 17) 3,817 ([FKDQJH*DLQ ORVV 727$/ % 3UR¿W /RVV %HIRUH7D[ 1,303,435 3URYLVLRQIRU7D[DWLRQ &XUUHQW7D[ 384,530 262,191 Short Provision for earlier year 37,609 26,544 'HIHUUHG7D[ MAT Credit (Refer note no.20 of Schedule 17) (422,139) (288,735) 1HW3UR¿W /RVV $IWHU7D[ 1,303,435 $SSURSULDWLRQV (a) Interim dividends paid during the year - (b) Final dividend 62,887 - F 'LYLGHQG'LVWULEXWLRQ7D[ 12,802 - (d) Debenture Redemption Reserve (Refer note no.19 of Schedule 17) 127,778 - - 3UR¿W /RVV $IWHUDSSURSULDWLRQV 1,303,435 %DODQFHRI3UR¿W /RVV EURXJKWIRUZDUGIURPODVW\HDU 2,294,255 990,820 %DODQFHFDUULHGIRUZDUGWR%DODQFH6KHHW 3,740,821 2,294,255 %DVLF(DUQLQJ3HU6KDUH 5HIHUQRWHQRRI6FKHGXOH 5.18 'LOXWHG(DUQLQJ3HU6KDUH 5HIHUQRWHQRRI6FKHGXOH 5.18 6LJQL¿FDQWDFFRXQWLQJSROLFLHVDQGQRWHVWRDFFRXQWVWRWKH)LQDQFLDO 6WDWHPHQWVUHIHUVFKHGXOH 7KH6FKHGXOHVUHIHUUHGWRDERYHIRUPDQLQWHJUDOSDUWRIWKH)LQDQFLDO6WDWHPHQWV $VSHURXUDXGLWUHSRUWRIHYHQGDWHDWWDFKHG )RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUV )RU3ULFH:DWHUKRXVH&KDUWHUHG$FFRXQWDQWV//3 Rajendra Chitale +$QVDUL &KDUWHUHG$FFRXQWDQWV )5111 'LUHFWRU ',1 'LUHFWRU ',1 6KDUPLOD$.DUYH 'U7KRPDV0DWKHZ &KKD\D9LUDQL Partner, Membership No. 043229 'LUHFWRU ',1 'LUHFWRU ',1 3ODFH 1HZ )RU3DWKDN+' $VVRFLDWHV +HPDQW.-DLQ 0RKDQ.KDQGHNDU Chartered Accountants (FRN. 107783W) &KLHI)LQDQFLDO2ႈFHU Company Secretary (Membership No. A8515) 0XNHVK0HKWD Partner, Membership No. 043495 3ODFH 0XPEDL 'DWH WK$SULO 46 Annual Report 2017 - 2018 %$/$1&(6+((7$6$7ST0$5&+ 5HJLVWUDWLRQ1RDQG'DWHRI5HJLVWUDWLRQZLWKWKH,5'$, 5HJQ1RGDWHG `LQ¶ Particulars Schedule $VDWVW0DUFK $VDWVW0DUFK 6RXUFHVRIIXQGV Share Capital $ 2,515,499 1,257,750 Reserves and Surplus 6 11,219,055 )DLU9DOXH&KDQJH$FFRXQW6KDUHKROGHU 15,012 )DLU9DOXH&KDQJH$FFRXQW3ROLF\KROGHU 77,309 %RUURZLQJV 7 2,300,000 2,300,000 Total $SSOLFDWLRQRIIXQGV Investments Shareholder 8 10,934,351 Investments Policyholder 8A /RDQV 9 - - )L[HG$VVHWV 10 321,739 'HIHUUHG7D[$VVHWV 5HIHUQRWHQRRI 372,735 372,735 Schedule 17) Current Assets &DVKDQG%DQN%DODQFHV 11 3,373,154 1,252,844 Advances and Other Assets 12 9,376,837 7,535,688 6XE7RWDO $ 12,749,991 8,788,532 &XUUHQW/LDELOLWLHV 13 63,436,090 51,159,980 Provisions 14 13,763,615 10,696,557 6XE7RWDO % 77,199,705 1HW&XUUHQW$VVHWV & $ % 0LVFHOODQHRXV([SHQGLWXUH - - WRWKHH[WHQWQRWZULWWHQRႇRUDGMXVWHG 'HELW%DODQFHLQ3UR¿W /RVV$FFRXQW - - Total 6LJQL¿FDQWDFFRXQWLQJSROLFLHVDQGQRWHVWRDFFRXQWVWRWKH)LQDQFLDO6WDWHPHQWVUHIHUVFKHGXOH $VSHURXUDXGLWUHSRUWRIHYHQGDWHDWWDFKHG )RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUV )RU3ULFH:DWHUKRXVH&KDUWHUHG$FFRXQWDQWV//3 Rajendra Chitale +$QVDUL &KDUWHUHG$FFRXQWDQWV )5111 'LUHFWRU ',1 'LUHFWRU ',1 6KDUPLOD$.DUYH 'U7KRPDV0DWKHZ &KKD\D9LUDQL Partner, Membership No. 043229 'LUHFWRU ',1 'LUHFWRU ',1 3ODFH 1HZ )RU3DWKDN+' $VVRFLDWHV +HPDQW.-DLQ 0RKDQ.KDQGHNDU Chartered Accountants (FRN. 107783W) &KLHI)LQDQFLDO2ႈFHU Company Secretary (Membership No. A8515) 0XNHVK0HKWD Partner, Membership No. 043495 3ODFH 0XPEDL 'DWH WK$SULO 47 Reliance General Insurance Company Limited 6&+('8/(6)250,1*3$572)),1$1&,$/67$7(0(176)257+(<($5(1'('ST0$5&+ 6FKHGXOH± 3UHPLXP(DUQHG 1HWRI6HUYLFH7D[*RRGVDQG6HUYLFH7D[ `LQ¶ Particulars Financial 3UHPLXP 3UHPLXPRQ 3UHPLXPRQ Net &KDQJHLQ Net Year IURPGLUHFW reinsurance reinsurance 3UHPLXP UHVHUYHIRU 3UHPLXP business accepted ceded unexpired Earned ZULWWHQ ULVNV 12345 78 Fire Current Year 457,701 2,908,108 Previous Year 2,989,129 641,445 2,782,310 848,264 (215,586) 632,678 Marine Cargo Current Year 507,981 53,843 Previous Year 441,955 7,998 399,245 50,708 125,916 176,624 0DULQH+XOO Current Year - 544 Previous Year 57,970 57,159 811 (238) 573 Marine Total Current Year 54,879 54,140 Previous Year 499,925 7,998 456,404 51,519 125,678 177,197 Motor OD Current Year 11,983,843 - 9,418,241 8,429,479 Previous Year 9,518,159 1,998,732 7,519,427 (607,576) 6,911,851 Motor TP Current Year - 8,925,737 Previous Year 10,108,355 (11,167) 2,057,737 8,039,451 (446,526) 7,592,925 Motor Total Current Year 24,844,872 - 5,184,245 Previous Year 19,626,514 (11,167) 4,056,469 15,558,878 (1,054,102) 14,504,776 (PSOR\HU V/LDELOLW\ Current Year 102,730 - 5,137 97,593 90,213 Previous Year 93,961 4,698 89,263 312 89,575 3XEOLF/LDELOLW\ Current Year 102,533 88,544 Previous Year 366,821 13,844 298,907 81,758 (8,288) 73,470 Engineering Current Year 54,558 515,219 231,292 202,518 Previous Year 540,526 53,168 390,306 203,388 (16,144) 187,244 Aviation Current Year - 79,551 1,135 49 1,184 Previous Year 65,791 64,549 1,242 (128) 1,114 Personal Accident Current Year 1 300,932 Previous Year 365,617 6,751 36,259 336,109 (2,424) 333,685 +HDOWK Current Year 7,820,843 32 1,173,725 Previous Year 3,443,301 4,937 229,223 3,219,015 (219,598) 2,999,417 Weather and Crop Current Year 11,811,417 - 3,054,443 Insurance Previous Year 10,894,349 9,226,140 1,668,209 14,600 1,682,808 Other Misc. Current Year 379,551 5 295,949 292,248 Previous Year 467,562 463 212,202 255,823 (48,300) 207,524 Misc Total Current Year 30,389,218 Previous Year 35,864,442 67,996 14,518,753 21,413,685 (1,334,072) 20,079,613 Total Current Year Total Previous Year 39,353,496 717,439 17,757,467 22,313,468 (1,423,980) 20,889,488 48 Annual Report 2017 - 2018 6&+('8/(6)250,1*3$572)),1$1&,$/67$7(0(176)257+(<($5(1'('ST0$5&+ 6FKHGXOH± &ODLPV,QFXUUHG 1HW `LQ¶ Particulars Financial &ODLPV3DLG &ODLPV &ODLPV 1HW&ODLPV Out- 2XWVWDQGLQJ Net Year IURPGLUHFW Paid on Recovered 3DLG VWDQGLQJ &ODLPVDWWKH &ODLPV business reinsurance on &ODLPVDW EHJLQQLQJRI Incurred ZULWWHQ $FFHSWHG reinsurance WKHHQGRI the Year ceded the Year 12 345 789 Fire Current Year 44,854 437,000 845,139 471,531 Previous Year 1,614,388 56,493 1,320,561 350,320 845,139 518,417 677,042 Marine Cargo Current Year 3,243 103,427 197,075 242,183 58,319 Previous Year 391,397 6,793 176,100 222,090 242,183 279,875 184,398 0DULQH+XOO Current Year 34,545 - 34,152 393 4,244 173 Previous Year 36,675 36,148 527 173 1,069 (369) Marine Total Current Year 597,919 3,243 497,342 103,820 201,319 Previous Year 428,072 6,793 212,248 222,617 242,356 280,944 184,029 Motor OD Current Year - 1,173,288 957,380 4,983,030 Previous Year 5,219,044 1,112,010 4,107,034 957,380 1,262,212 3,802,202 Motor TP Current Year - 33,771,913 29,043,088 Previous Year 6,784,788 22,274 3,621,994 3,185,068 29,043,088 22,773,913 9,454,243 Motor Total Current Year 12,859,277 - 9,193,952 34,945,201 Previous Year 12,003,832 22,274 4,734,004 7,292,102 30,000,468 24,036,125 13,256,445 (PSOR\HU V Current Year 35,817 - 33,531 125,275 78,122 /LDELOLW\ Previous Year 33,992 1,989 32,003 125,274 56,950 100,327 3XEOLF/LDELOLW\ Current Year - 927 15,239 104,305 49,547 Previous Year 6,122 698 5,424 104,305 60,478 49,251 Engineering Current Year 5,279 389,214 145,825 172,537 133,514 Previous Year 280,518 10,406 180,703 110,221 172,537 217,433 65,325 Aviation Current Year 11,723 - 2,551 2,428 190 Previous Year 57,254 57,180 74 2,428 2,397 105 Personal Current Year - 12,798 355,774 452,748 272,107 Accident Previous Year 519,981 3,760 161,441 362,300 452,748 267,523 547,525 +HDOWK Current Year - 304,004 Previous Year 3,495,269 2,064 197,203 3,300,130 1,033,864 1,598,619 2,735,375 Weather and Current Year 3,859,974 - 3,082,220 777,755 Crop Insurance Previous Year 3,265,286 2,703,552 561,734 1,239,684 218,018 1,583,401 Other Misc. Current Year 73,051 2 153,750 171,517 Previous Year 598,548 534,409 64,139 171,518 167,284 68,372 Misc Total Current Year 5,281 7,477,194 Previous Year 20,260,802 38,504 8,571,179 11,728,127 33,302,827 26,624,827 18,406,126 Total Current Year 27,471,847 53,378 10,551,153 34,390,321 Total Previous Year 22,303,262 101,790 10,103,988 12,301,064 34,390,322 27,424,188 19,267,197 49 Reliance General Insurance Company Limited 6&+('8/(6)250,1*3$572)),1$1&,$/67$7(0(176)257+(<($5(1'('ST0$5&+ 6FKHGXOH± &RPPLVVLRQ 1HW `LQ¶ Particulars Financial &RPPLVVLRQ &RPPLVVLRQ &RPPLVVLRQ Net period Paid paid on UHFHLYHGIURP FRPPLVVLRQ reinsurance reinsurance accepted ceded 12345 Fire Current Year 271,139 11,477 Previous Year 147,016 17,516 420,568 (256,036) Marine Cargo Current Year 105,202 Previous Year 49,769 520 87,537 (37,248) 0DULQH+XOO Current Year - 5,500 1,027 Previous Year 2,642 (1,238) 3,880 Marine Total Current Year 110,702 Previous Year 52,411 520 86,299 (33,368) Motor OD Current Year - 828,782 Previous Year 638,964 726,800 (87,836) Motor TP Current Year 34,048 - Previous Year 7,376 106,124 (98,748) Motor Total Current Year 1,728,529 - 742,129 Previous Year 646,340 832,924 (186,584) (PSOR\HU V/LDELOLW\ Current Year 11,430 - 770 Previous Year 8,172 705 7,467 3XEOLF/LDELOLW\ Current Year 33 10,189 8,740 Previous Year 13,407 65 14,663 (1,191) Engineering Current Year 1,934 45,848 22,882 Previous Year 41,424 2,345 57,432 (13,663) Aviation Current Year 1,120 - 4,291 Previous Year 529 3,099 (2,570) Personal Accident Current Year 21,807 - 24,783 Previous Year 29,727 68 9,440 20,355 +HDOWK Current Year - 545,058 Previous Year 208,218 49 57,058 151,209 Weather and Crop Insurance Current Year 27,500 1,101,992 Previous Year 1,386,259 (1,386,259) Other Misc. Current Year 1 24,102 Previous Year 38,027 7 28,230 9,804 Misc Total Current Year 2,220,233 Previous Year 985,844 2,534 2,389,810 (1,401,432) Total Current Year Previous Year 1,185,271 20,570 2,896,677 (1,690,836) 6FKHGXOH$ &RPPLVVLRQ3DLG'LUHFW `LQµ Particulars Paid in India Paid Outside India 2017-18 2017-18 Agents 1,028,812 583,665 %URNHUV 915,373 455,059 Corporate agency 143,800 Web Aggregator 17,218 2,701 Motor Insurance Service Provider (MISP)* 54,218 Others (IMF) 322 45 Total 1,185,271 - $VSHU,5'$FLUFXODUQR,5'$,17*'/0,63GDWHGVW$XJXVW 50 Annual Report 2017 - 2018 6&+('8/(6)250,1*3$572)),1$1&,$/67$7(0(176)257+(<($5(1'('ST0$5&+ 6&+('8/( 2SHUDWLQJ([SHQVHVUHODWHGWRLQVXUDQFHEXVLQHVV `,Q Particulars 2017-18 Fire Marine Miscella- Total Fire Marine Miscella- Total neous* neous* (PSOR\HHV¶UHPXQHUDWLRQ 161,371 7,540 2,711,281 2,880,193 137,619 8,206 2,104,854 2,250,679 ZHOIDUHEHQH¿WV &RPSDQ\ VFRQWULEXWLRQWR 8,793 405 137,135 146,332 8,865 538 122,126 131,529 Provident fund and others Travel, conveyance and vehicle 6,404 295 158,888 165,587 5,020 304 128,391 133,716 UXQQLQJH[SHQVHV 5HQWVUDWHV WD[HV 9,466 436 245,401 255,304 9,680 588 244,475 254,744 Repairs 11,150 514 285,588 297,251 10,490 637 271,806 282,933 3ULQWLQJ 6WDWLRQHU\ 2,529 116 64,978 67,623 2,530 154 63,889 66,572 &RPPXQLFDWLRQH[SHQVHV 4,006 185 102,179 106,370 4,062 247 102,477 106,785 3RVWDJHH[SHQVHV 3,409 157 87,040 90,606 2,999 182 75,761 78,942 /HJDO SURIHVVLRQDOFKDUJHV 14,181 338 119,017 133,536 14,162 (747) 119,744 133,159 $XGLWRUV)HHVH[SHQVHVHWF a. As auditor 190 9 4,834 5,032 226 14 5,697 5,936 b. As advisor or in any other - capacity, in respect L 7D[DWLRQPDWWHUV - (ii) Insurance matters - (iii) Management services; - and c. In any other capacity Advertisement and Publicity 95,528 4,400 3,585,619 3,685,547 82,683 5,022 3,416,692 3,504,397 %DQN &KDUJHV LQWHUHVW 1,616 74 51,818 53,508 1,758 107 44,047 45,912 H[SHQVHVRWKHUV 6HUYLFH7D[*67([SHQVHV 2,775 128 184,212 187,115 1,750 106 101,183 103,040 2WKHUV - - 'LUHFWRUV 6LWWLQJIHHV 129 6 3,298 3,433 64 4 1,620 1,688 (QWHUWDLQPHQW([SHQVHV 1,036 48 20,155 21,238 444 27 11,264 11,735 2ႈFH0DLQWHQDQFH([SHQVHV 6,737 310 171,844 178,891 6,501 395 164,433 171,329 7UDLQLQJ 5HFUXLWPHQW([SHQVHV 2,086 96 41,666 43,848 6,994 424 178,415 185,833 Depreciation 6,609 301 167,127 174,037 6,511 372 156,432 163,315 2ႈFH0DQDJHPHQW([SHQVHV 2,262 104 57,708 60,075 2,292 139 57,868 60,300 Subscriptions and Membership 838 39 21,372 22,249 857 52 21,646 22,555 Fees &RLQVXUDQFH([SHQVHV QHW 5,356 874 9,400 15,630 5,080 1,523 5,976 12,579 Weather Insurance Charges 288,513 288,513 (1,019) (62) 191,016 189,935 0LVFHOODQHRXVH[SHQVHV 416 19 11,584 12,019 626 40 22,758 23,425 Total 8,893,937 310,195 18,271 7,941,037 51 Reliance General Insurance Company Limited 6&+('8/(6)250,1*3$572)),1$1&,$/67$7(0(176)257+(<($5(1'('ST0$5&+ 6FKHGXOH $2SHUDWLQJ([SHQVHVUHODWHGWRLQVXUDQFHEXVLQHVV `,Q Particulars 2017-18 Motor Motor Motor (PSOR\HU V Public (QJLQHH $YLDWLRQ Personal +HDOWK :HDWKHU Other Total OD TP Total /LDELOLW\ /LDELOLW\ ULQJ $FFLGHQW and Crop Miscella Miscella- Insurance neous neous (PSOR\HHV¶UHPXQHUDWLRQ 723,752 787,084 1,510,837 13,410 14,088 31,780 156 22,894 510,574 566,879 40,664 2,711,281 ZHOIDUHEHQH¿WV &RPSDQ\ VFRQWULEXWLRQWR 36,026 39,179 75,205 720 757 1,707 8 1,155 25,727 29,671 2,184 137,135 Provident fund and others Travel, conveyance and 48,569 52,819 101,389 525 551 1,243 6 1,494 33,273 18,816 1,591 158,888 YHKLFOHUXQQLQJH[SHQVHV 5HQWVUDWHV WD[HV 76,721 83,434 160,155 775 815 1,838 9 2,372 52,816 24,270 2,352 245,401 Repairs 88,201 95,919 184,120 913 960 2,165 11 2,799 62,324 29,527 2,770 285,588 3ULQWLQJ 6WDWLRQHU\ 20,129 21,890 42,019 207 218 491 2 634 14,116 6,664 628 64,978 &RPPXQLFDWLRQH[SHQVHV 31,642 34,411 66,053 328 345 778 4 1,005 22,376 10,295 995 102,179 3RVWDJHH[SHQVHV 26,987 29,348 56,335 279 293 662 3 854 19,018 8,748 847 87,040 /HJDO SURIHVVLRQDO 34,431 37,444 71,875 280 378 2,754 3 5,941 28,302 7,947 1,537 119,017 charges $XGLWRUV)HHV expenses, etc. a. As auditor 1,498 1,629 3,127 16 16 37 0 47 1,057 486 47 4,834 b. As advisor or in any other capacity, in respect L 7D[DWLRQPDWWHUV (ii) Insurance matters (iii) Management services; and c. In any other capacity Advertisement and 1,535,545 1,669,913 3,205,459 7,825 8,221 18,546 91 23,946 306,031 (8,236) 23,734 3,585,618 Publicity %DQN&KDUJHV 17,856 19,419 37,275 132 139 314 2 405 9,011 4,141 401 51,818 LQWHUHVWH[SHQVHV others 6HUYLFH 7D[ *67 35,894 39,035 74,929 227 239 539 3 4,055 26,913 76,619 689 184,212 ([SHQVHV 2WKHUV 'LUHFWRUV 6LWWLQJIHHV 1,022 1,112 2,134 11 11 25 0 32 721 331 32 3,298 (QWHUWDLQPHQW([SHQVHV 5,903 6,420 12,323 85 89 201 1 187 4,155 2,856 257 20,155 2ႈFH0DLQWHQDQFH 53,258 57,918 111,176 552 580 1,308 6 1,688 37,588 17,272 1,674 171,844 ([SHQVHV 7UDLQLQJ 5HFUXLWPHQW 13,390 14,562 27,952 171 180 405 2 495 11,027 916 518 41,666 ([SHQVHV Depreciation 51,812 56,345 108,157 535 562 1,269 6 1,639 36,581 16,753 1,623 167,127 2ႈFH0DQDJHPHQW 17,885 19,450 37,335 185 195 439 2 567 12,623 5,800 562 57,708 ([SHQVHV Subscriptions and 6,624 7,203 13,827 69 72 163 1 210 4,675 2,148 208 21,372 Membership Fees &RLQVXUDQFH([SHQVHV (105) (114) (220) (2) 462 981 46 122 7,870 (39) 180 9,400 (net) Weather Insurance 288,513 288,513 Charges 0LVFHOODQHRXVH[SHQVHV 3,755 4,084 7,840 34 36 81 0 103 2,320 1,067 103 11,584 Total 3,078,505 5,909,301 27,277 29,207 1,229,100 83,598 52 Annual Report 2017 - 2018 6&+('8/(6)250,1*3$572)),1$1&,$/67$7(0(176)257+(<($5(1'('ST0$5&+ `,Q Particulars Motor Motor Motor (PSOR\HU V Public (QJLQHH $YLDWLRQ Personal +HDOWK :HDWKHU Other Total OD TP Total /LDELOLW\ /LDELOLW\ ULQJ $FFLGHQW and Crop Miscell Miscell- Insurance aneous aneous (PSOR\HHV¶UHPXQHUDWLRQ 629,693 673,241 1,302,934 14,218 13,022 32,396 198 34,005 324,316 343,018 40,747 2,104,854 ZHOIDUHEHQH¿WV &RPSDQ\ VFRQWULEXWLRQWR 37,163 39,733 76,895 933 855 2,126 13 2,023 19,170 17,436 2,674 122,126 Provident fund and others Travel, conveyance and 45,281 48,413 93,694 527 483 1,201 7 1,994 19,125 9,850 1,510 128,391 YHKLFOHUXQQLQJH[SHQVHV 5HQWVUDWHV WD[HV 85,812 91,747 177,560 1,019 933 2,321 14 3,836 36,836 19,038 2,919 244,475 Repairs 94,561 101,100 195,661 1,104 1,011 2,515 15 4,427 42,436 21,474 3,164 271,806 3ULQWLQJ 6WDWLRQHU\ 22,435 23,987 46,422 266 244 607 4 1,003 9,606 4,975 763 63,889 &RPPXQLFDWLRQH[SHQVHV 35,974 38,462 74,436 427 391 974 6 1,610 15,419 7,988 1,225 102,477 3RVWDJHH[SHQVHV 26,610 28,450 55,060 316 289 719 4 1,188 11,383 5,897 904 75,761 /HJDO SURIHVVLRQDO 42,077 44,987 87,064 372 450 2,610 5 2,153 19,675 6,378 1,038 119,744 charges $XGLWRUV)HHV expenses, etc. a. As auditor 2,000 2,139 4,139 24 22 54 0 89 856 444 68 5,697 b. As advisor or in any other capacity, in respect L 7D[DWLRQPDWWHUV (ii) Insurance matters (iii) Management services; and c. In any other capacity Advertisement and 1,370,934 1,465,744 2,836,679 8,701 7,969 19,825 121 32,762 313,919 171,782 24,935 3,416,692 Publicity %DQN&KDUJHV 15,423 16,490 31,913 185 169 422 3 697 6,671 3,457 530 44,047 LQWHUHVWH[SHQVHV others 6HUYLFH 7D[ *67 15,514 16,586 32,100 184 169 420 3 827 11,894 55,059 528 101,183 ([SHQVHV 2WKHUV 'LUHFWRUV 6LWWLQJIHHV 569 608 1,177 7 6 15 0 25 244 126 19 1,620 (QWHUWDLQPHQW([SHQVHV 3,953 4,226 8,179 47 43 107 1 176 1,704 874 134 11,264 2ႈFH0DLQWHQDQFH 57,628 61,614 119,242 684 627 1,559 10 2,576 24,670 13,105 1,961 164,433 ([SHQVHV 7UDLQLQJ 5HFUXLWPHQW 61,588 65,848 127,436 735 673 1,675 10 2,745 26,292 16,740 2,107 178,415 ([SHQVHV Depreciation 54,873 58,668 113,541 644 590 1,468 9 2,431 23,861 12,042 1,847 156,432 2ႈFH0DQDJHPHQW 20,321 21,726 42,046 241 221 550 3 908 8,699 4,508 691 57,868 ([SHQVHV Subscriptions and 7,601 8,126 15,727 90 83 206 1 340 3,254 1,686 259 21,646 Membership Fees &RLQVXUDQFH([SHQVHV 14 15 29 1 380 991 100 120 4,247 108 5,976 (net) Weather Insurance (9,033) (9,658) (18,692) (107) (98) (244) (1) (404) (3,867) 214,737 (307) 191,016 Charges 0LVFHOODQHRXVH[SHQVHV 8,910 9,526 18,437 66 60 150 1 248 2,376 1,232 189 22,758 Total 2,811,779 28,592 95,779 922,784 931,847 88,013 53 Reliance General Insurance Company Limited 6&+('8/(6)250,1*3$572)),1$1&,$/67$7(0(176)257+(<($5(1'('ST0$5&+ Schedule - 5 Share Capital `LQ¶ Particulars $VDWVW $VDWVW March 2018 March 2017 $XWKRUL]HG&DSLWDO 300,000,000 (Previous Year 200,000,000 ) Equity Shares of Rs10 each 3,000,000 2,000,000 Issued Capital 251,549,920 (Previous Year 125,774,960) Equity Shares of Rs10 each 2,515,499 1,257,750 Subscribed Capital 251,549,920 (Previous Year 125,774,960) Equity Shares of Rs10 each 2,515,499 1,257,750 Called Up Capital 251,549,920 (Previous Year 125,774,960) Equity Shares of Rs10 each 2,515,499 1,257,750 /HVV &DOOV8QSDLG - $GG (TXLW\6KDUHIRUIHLWHG $PRXQWRULJLQDOO\SDLGXS - /HVV 3DUYDOXHRI(TXLW\VKDUHVERXJKWEDFN - /HVV L 3UHOLPLQDU\([SHQVHVWRWKHH[WHQWQRWZULWWHQRႇ - LL ([SHQVHVLQFOXGLQJFRPPLVVLRQRUEURNHUDJH - on underwriting or subscription of shares Total 2,515,499 1,257,750 1RWH 2IWKHDERYH VKDUHVDUHKHOGE\+ROGLQJ&RPSDQ\5HOLDQFH&DSLWDO/LPLWHG SUHYLRXV\HDU Equity shares). 6FKHGXOH$ 3DWWHUQRI6KDUH+ROGLQJ $VFHUWL¿HGE\WKH0DQDJHPHQW `LQ¶ Shareholder $VDWVW0DUFK $VDWVW0DUFK 1RRI6KDUHV RI+ROGLQJ No. of Shares RI+ROGLQJ 3URPRWHUV,QGLDQ +ROGLQJ&RPSDQ\,QGLDQ 251,549,920 100.00% 125,774,960 100.00% +ROGLQJ&RPSDQ\)RUHLJQ - - Total 251,549,920 100.00% 100.00% 54 Annual Report 2017 - 2018 6&+('8/(6)250,1*3$572)),1$1&,$/67$7(0(176)257+(<($5(1'('ST0$5&+ 6FKHGXOH Reserves and Surplus `LQ¶ Particulars $VDWVW0DUFK $VDWVW0DUFK Capital Reserve - Capital Redemption Reserve - 'HEHQWXUH5HGHPSWLRQ5HVHUYH 2SHQLQJ%DODQFH - $GG &UHDWLRQGXULQJWKH\HDU 127,778 &ORVLQJ%DODQFH 127,778 6KDUH3UHPLXP 2SHQLQJ%DODQFH 8,924,800 8,054,800 /HVV 8WLOLVHGIRULVVXHRIERQXV6KDUH 5HIHUQRWHQR 1,257,750 33 of Schedule 17) $GG $GGLWLRQGXULQJWKH\HDU - 870,000 &ORVLQJ%DODQFH 8,924,800 General Reserve - Catastrophe Reserve - %DODQFHLQ3UR¿WDQG/RVV$FFRXQW 3,740,821 2,294,255 Total 11,219,055 Schedule - 7 %RUURZLQJV `LQ¶ Particulars $VDWVW0DUFK $VDWVW0DUFK 'HEHQWXUHV%RQGV 2,300,000 2,300,000 %DQNV - Financial Institutions - Others - - Total 2,300,000 2,300,000 6&+('8/( ,QYHVWPHQWV6KDUHKROGHU `LQ¶ Particulars $VDWVW0DUFK $VDWVW0DUFK /21*7(50,19(670(176 Government securities and Government guaranteed 2,749,229 ERQGVLQFOXGLQJ7UHDVXU\%LOOV Other Approved Securities 1,135,207 1,421,862 2WKHU,QYHVWPHQWV (a) Shares (aa) Equity 233,717 124,045 (bb) Preference - (b) Mutual Funds - (c) Derivative Instruments - G 'HEHQWXUHV%RQGV 2,807,371 3,021,365 (e) Other securities - (f) Subsidiaries - J ,QYHVWPHQW3URSHUWLHV5HDO(VWDWH - Investments in Infrastructure and social sector 1,129,689 Other than Approved Investments 141,293 273,357 7RWDO/RQJ7HUP,QYHVWPHQWV 8,719,547 55 Reliance General Insurance Company Limited 6&+('8/(6)250,1*3$572)),1$1&,$/67$7(0(176)257+(<($5(1'('ST0$5&+ `LQ¶ Particulars $VDWVW0DUFK $VDWVW0DUFK 6+2577(50,19(670(176 Government securities and Government guaranteed 115,518 ERQGVLQFOXGLQJ7UHDVXU\%LOOV Other Approved Securities 29,878 2WKHU,QYHVWPHQWV (a) Shares (aa) Equity 2,315 (bb) Preference 231 (b) Mutual Funds 104,054 429,350 (c) Derivative Instruments - G 'HEHQWXUHV%RQGV 1,621,118 (e) Other securities 98,528 (f) Subsidiaries - J ,QYHVWPHQW3URSHUWLHV5HDO(VWDWH - Investments in Infrastructure and social sector 72,545 139,867 Other than Approved Investments 188,290 24,469 7RWDO6KRUW7HUP,QYHVWPHQWV 2,214,804 Total 10,934,351 7KHYDOXHRI,QYHVWPHQW2WKHUWKDQOLVWHGHTXLW\VKDUHVLVDVIROORZV `LQ¶ Particulars $VDWVW $VDWVW March, 2018 March, 2017 %RRN9DOXH 11,305,440 10,758,203 0DUNHW9DOXH 10,867,800 2. All the above investments are performing assets. 3. The company has segregate the investments seperately between policy holders funds and share holders funds on QRWLRQDO EDVLV DV SHU ,5'$, FLUFXODU QR ,5'$) $&,5&30 GDWHG WK$SULO DQG ,5'$) $&,5 &30GDWHGWK-DQXDU\ 56 Annual Report 2017 - 2018 6&+('8/(6)250,1*3$572)),1$1&,$/67$7(0(176)257+(<($5(1'('ST0$5&+ 6&+('8/($ ,QYHVWPHQWV3ROLF\KROGHU `LQ Particulars $VDWVW0DUFK $VDWVW0DUFK /21*7(50,19(670(176 Government securities and Government guaranteed 23,037,940 14,157,622 ERQGVLQFOXGLQJ7UHDVXU\%LOOV Other Approved Securities 7,322,122 2WKHU,QYHVWPHQWV (a) Shares (aa) Equity 1,379,170 638,797 (bb) Preference - (b) Mutual Funds - (c) Derivative Instruments - G 'HEHQWXUHV%RQGV 15,559,031 (e) Other securities - (f) Subsidiaries - J ,QYHVWPHQW3URSHUWLHV5HDO(VWDWH - Investments in Infrastructure and social sector 5,817,528 Other than Approved Investments 833,775 1,407,696 7RWDO/RQJ7HUP,QYHVWPHQWV 54,194,153 44,902,795 6+2577(50,19(670(176 Government securities and Government guaranteed ERQGVLQFOXGLQJ7UHDVXU\%LOOV Other Approved Securities 2WKHU,QYHVWPHQWV (a) Shares (aa) Equity (bb) Preference (b) Mutual Funds 2,211,010 (c) Derivative Instruments - G 'HEHQWXUHV%RQGV 8,348,224 (e) Other securities 581,413 (f) Subsidiaries - J ,QYHVWPHQW3URSHUWLHV5HDO(VWDWH - Investments in Infrastructure and social sector 428,092 720,269 Other than Approved Investments 1,111,104 126,007 7RWDO6KRUW7HUP,QYHVWPHQWV 11,405,510 Total 7KHYDOXHRI,QYHVWPHQW2WKHUWKDQOLVWHGHTXLW\VKDUHVLVDVIROORZV `LQ¶ Particulars $VDWVW $VDWVW March, 2018 March, 2017 %RRN9DOXH 55,401,193 0DUNHW9DOXH 55,965,586 2. All the above investments are performing assets. 3. The company has segregated the investments seperately between policy holders funds and share holders funds on QRWLRQDO EDVLV DV SHU ,5'$, FLUFXODU QR ,5'$) $&,5&30 GDWHG WK$SULO DQG ,5'$) $&,5 &30GDWHGWK-DQXDU\ 57 Reliance General Insurance Company Limited 6&+('8/(6)250,1*3$572)),1$1&,$/67$7(0(176)257+(<($5(1'('ST0$5&+ 6&+('8/( /2$16 `,Q Particulars $VDWVW0DUFK $VDWVW0DUFK 6(&85,7<:,6(&/$66,),&$7,21 Secured (a) On mortgage of property (aa) In India - (bb) Outside India - E 2Q6KDUHV%RQGV*RYW6HFXULWLHV - F 2WKHUV WREHVSHFL¿HG - Unsecured - 727$/ - - %2552:(5:,6(&/$66,),&$7,21 (a) Central and State Governments - E %DQNVDQG)LQDQFLDO,QVWLWXWLRQV - (c) Subsidiaries - G ,QGXVWULDO8QGHUWDNLQJV - H 2WKHUV Trustees of Reliance General Insurance - (PSOR\HH V%HQH¿W7UXVW 727$/ - - 3(5)250$1&(:,6(&/$66,),&$7,21 D /RDQVFODVVL¿HGDVVWDQGDUG (aa) In India - (bb) Outside India - E 1RQSHUIRUPLQJORDQVOHVVSURYLVLRQV (aa) In India - (bb) Outside India - 727$/ - - 0$785,7<:,6(&/$66,),&$7,21 (a) Short Term - E /RQJ7HUP - 727$/ - - 58 Annual Report 2017 - 2018 8,389 64,013 LQ¶ ,Q 297,238 ` ` 03-17 03-18 1HW%ORFN 1HW%ORFN $VDW $VDW 734 9,849 4,477 37 56,328 23,641 569,879 117,993 03-17 03-18 1,013,438 321,739 1,013,438 313,349 $VDW $VDW 651 279 0 9,873 9,873 Deduction Deduction Depreciation Depreciation $GGLWLRQV $GGLWLRQV 0$5&+ ST (' 914,429 04-17 1,013,438 $VDW $VDW 4,514 4,442 35 10,583 279 455 79,969 45,260 11,068 64,013 687,872 475,893 93,986 03-17 03-18 1,474,839 1,538,852 1,013,438 $VDW $VDW 651 279 930 1,327 4,514 5,624 145 1,327 4,442 72 88,047 1,335,177 914,429 Deductions Deductions *URVV%ORFN *URVV%ORFN $GGLWLRQV $GGLWLRQV 5,841 4,514 84,945 73,797 3,785 6,172 2,414 86,316 69,029 4,227 2,214 86,427 62,888 71,041 7,697 13,778 15,275 9,179 2,868 84,945 73,797 70,106 39,234 7,788 7,283 8,865 1,257 69,029 45,260 15,917 28,537 213,118 14,271 17,998 209,390 166,117 21,777 17,160 170,734 38,657 209,390 20,398 7,662 222,126 170,734 21,246 5,624 186,356 35,770 04-17 $VDW $VDW Information Technology EquipmentTechnology Information Asset (Computer Software) Intangible Vehicles 298,190 655,672 88,249 32,200 2,980 383,459 247,802 43,018 279 10,304 2,035 288,785 94,674 /HDVHKROG,PSURYHPHQWV /HDVHKROG,PSURYHPHQWV EquipmentTechnology Information Asset (Computer Software) Intangible Vehicles 286,357 577,7193ODQW 0DFKLQHU\ 29,964 95,515 18,132 17,562 298,190 655,672 226,375 406,043 39,183 87,139 930 17,756 17,290 247,802 475,893 179,779 50,388 )XUQLWXUH )LWWLQJV 2ႈFH(TXLSPHQW Total Capital WIP Grand Total $VRQ Description )XUQLWXUH )LWWLQJV 8,3892ႈFH(TXLSPHQW 55,624 Total Capital WIP Grand Total 20,329 1,233,280 8,390 20,330 8,389 3ODQW 0DFKLQHU\ Description 6&+('8/(6)250,1*3$572)),1$1&,$/67$7(0(176)257+(<($5(1' Schedule - 10 )L[HG$VVHWV 59 Reliance General Insurance Company Limited 6&+('8/(6)250,1*3$572)),1$1&,$/67$7(0(176)257+(<($5(1'('ST0$5&+ Schedule-11 &DVKDQG%DQN%DODQFHV `,Q Particualrs $VDWVW0DUFK $VDWVW0DUFK Cash (including cheques, drafts and stamps on hand) 32,405 57,725 %DQN%DODQFHV (a) Deposit Accounts DD 6KRUWWHUP GXHZLWKLQPRQWKV 1,480 (aa) Others - (b) Current Accounts* 3,129,723 442,226 F &KHTXHVRQ+DQG 3,340,749 751,413 1,195,119 Money at Call and Short Notice D :LWK%DQN - (b) With other Institutions - - Others - Total 3,373,154 1,252,844 %DODQFHVZLWKQRQVFKHGXOHGEDQNVLQFOXGHGLQ &XUUHQW - - Accounts) above Total 3,373,154 1,252,844 6KRUWWHUPGHSRVLWUHSUHVHQWV¿[HGGHSRVLWJLYHQWREDQNIRUEDQNJXDUDQWHH 2XWRIDERYH5VWKRXVDQG 3UHYLRXV\HDU5VWKRXVDQG DUHHDUPDUNHGIRUVSHFL¿HGSXUSRVHLQDVHSDUDWH EDQNDFFRXQW Schedule-12 $GYDQFHVDQG2WKHU$VVHWV `,Q Particulars $VDWVW0DUFK $VDWVW0DUFK $GYDQFHV Reserve deposits with Ceding Companies - Application money for investments - Prepayments 140,843 66,758 $GYDQFHVWR'LUHFWRUV2ႈFHUV - $GYDQFHWD[SDLGDQGWD[HVGHGXFWHGDWVRXUFH 1HWRI 15,027 47,856 SURYLVLRQIRUWD[DWLRQ QHWRISURYLVLRQIRUWD[HV5V1LO Previous year Rs Nil) MAT Credit Entitlement 972,920 550,781 Others 5HQWDO 2WKHU'HSRVLWV 325,054 319,932 $GYDQFHVWR6WDႇ 2,844 8QXWLOLVHG*RRGVDQG6HUYLFH7D[&UHGLW 33,335 2WKHU$GYDQFHV 'HSRVLWV 287,917 644,028 /HVV3URYLVLRQIRUGRXEWIXODGYDQFHV (24,408) 619,620 2WKHU$VVHWV Income accrued on investments 2,282,331 2,041,684 Investments pertaining to Policyholder funds 533,031 487,026 Outstanding Premiums 772,933 $JHQWV %DODQFHV 1,194 )RUHLJQ$JHQF\%DODQFHV - ,QYHVWPHQWV6DOHVWREHVHWWOHG 207,101 1,442,482 5HSRVVHVVHG6WRFN 0 Due from other entities carrying on insurance business 2,579,105 1,897,824 /HVV3URYLVLRQIRUGRXEWIXOGHEWV 7,371,500 (392,470) 6,250,673 Total 60 Annual Report 2017 - 2018 6&+('8/(6)250,1*3$572)),1$1&,$/67$7(0(176)257+(<($5(1'('ST0$5&+ Schedule-13 &XUUHQW/LDELOLWLHV `,Q Particulars $VDWVW0DUFK $VDWVW0DUFK $JHQW V%DODQFHV 300,707 87,126 %DODQFHVGXHWRRWKHULQVXUDQFHFRPSDQLHV 5,372,769 Premium received in Advance 159,260 Unallocated Premium 3,887,590 2,793,387 ,QWHUHVW$FFUXHGEXWQRWGXHRQ%RUURZLQJV 130,741 130,741 Sundry Creditors 1,146,884 Claims Outstanding 47,333,104 39,575,385 $GG 3URYLVLRQIRU'RXEWIXO5HLQVXUDQFH5HFRYHULHV 137,330 47,470,434 137,330 39,712,715 'XHWR2ႈFHUV'LUHFWRUV - 2WKHUV 8QFODLPHGDPRXQWRISROLF\KROGHUV 720,853 3D\DEOHWRSROLF\KROGHUV 80,935 (QYLURQPHQWDO5HOLHI)XQG3D\DEOH 53 31 7HPSRUDU\%RRN2YHUGUDIWDVSHUDFFRXQWV 324,699 ,QYHVWPHQWV3XUFKDVHGWREHVHWWOH - 53,187 (PSOR\HH5HODWHG3D\DEOHV 380,454 6WDWXWRU\'XHV 159,004 *RRGVDQG6HUYLFH7D[/LDELOLW\ 202,351 118,870 1,757,098 Total 51,159,980 7KHFRPSDQ\KDVVHJUHJDWHGXQFODLPHGDPRXQWRISROLF\KROGHUDVSHU,5'$,&LUFXODU5HI ,5'$) $&,50LVF GDWHG WK-XO5HVWDWHGDPRXQWRISD\DEOHWRSROLF\KROGHUDVDW0DUFKLV5VWKRXVDQG Schedule-14 Provisions `,Q Particulars $VDWVW0DUFK $VDWVW0DUFK 5HVHUYHIRU8QH[SLUHG5LVN 10,524,293 )RU7D[DWLRQ OHVVDGYDQFHWD[SDLGDQG7D[GHGXFWHG 50,731 47,639 DWVRXUFH QHWRIDGYDQFHWD[RI5VWKRXVDQG Previous year Rs 2,15,400 thousand) For Final Dividends - )RU'LYLGHQGGLVWULEXWLRQWD[ - 5HVHUYHIRU3UHPLXP'H¿FLHQF\ - 2WKHUV )RU*UDXWLW\ 7,133 2,609 )RU/HDYH(QFDVKPHQW 22,016 )RU5LVN5HVHUYHV 100,000 109,739 100,000 124,625 Total 6&+('8/( Miscellaneous Expenditure `,Q Particulars $VDWVW0DUFK $VDWVW0DUFK 'LVFRXQW$OORZHGLQLVVXHRIVKDUHVGHEHQWXUHV - 2WKHUV WREHVSHFL¿HG - Total - - 61 Reliance General Insurance Company Limited 5(&(,376$1'3$<0(176$&&2817)257+(<($5(1'('670$5&+ 5HJLVWUDWLRQ1RDQG'DWHRI5HJLVWUDWLRQZLWKWKH,5'$, 5HJQ1RGDWHG `,Q Particulars Current Year Previous Year &DVKÀRZVIURPRSHUDWLQJDFWLYLWLHV Direct Premiums received 39,383,517 3D\PHQWWRUHLQVXUHUVQHWRIFRPPLVVLRQVDQGFODLPV (3,776,010) 3D\PHQWWRFRLQVXUHUVQHWRIFODLPVUHFRYHU\ 41,391 (196,858) Direct Claims Paid (22,253,732) 'LUHFW&RPPLVVLRQ%URNHUDJH3D\PHQWV (1,139,571) 3D\PHQWRIRWKHURSHUDWLQJH[SHQVHV (7,707,217) 3UHOLPLQDU\DQGSUHRSHUDWLQJH[SHQVHV - 'HSRVLWV$GYDQFHVDQG6WDႇORDQV 1,953,232 *676HUYLFH7D[ 1HW (121,150) ,QFRPHWD[SDLG 1HW (241,116) 0LVF5HFHLSWVSD\PHQWV 232,293 5,527 &DVKÀRZEHIRUHH[WUDRUGLQDU\LWHPV &DVKÀRZIURPH[WUDRUGLQDU\RSHUDWLRQV - - &DVKÀRZIURPRSHUDWLQJDFWLYLWLHV &DVKÀRZVIURPLQYHVWLQJDFWLYLWLHV Purchase of investments (111,891,707) 6DOHRI,QYHVWPHQWV ,QFOXGLQJJDLQ/RVV 98,028,325 3XUFKDVHRI¿[HG$VVHWV (169,614) 3URFHHGVIURPVDOHRI¿[HGDVVHWV 2,415 23,673 5HQW,QWHUHVW'LYLGHQGVUHFHLYHG 5,210,358 4,321,420 ,QYHVWPHQWLQPRQH\PDUNHWLQVWUXPHQWVDQGLQOLTXLGPXWXDOIXQGV 1HW 2,201,850 ([SHQVHVUHODWHGWRLQYHVWPHQWV (15,746) &DVKÀRZIURPLQYHVWLQJDFWLYLHV &DVKÀRZVIURP¿QDQFLQJDFWLYLWLHV Proceeds from Issuance of Share Capital - Share Application Money Received - Proceeds from borrowings - 2,300,000 Repayment of borrowings - %RUURZLQJVLVVXHH[SHQVHV - (29,287) ,QWHUHVW'LYLGHQG3DLG (698) &DVKÀRZIURP¿QDQFLQJDFWLYLWLHV 2,270,015 1HWLQFUHDVHLQFDVK FDVKHTXLYDOHQWV 2,081,573 &DVKDQGFDVKHTXLYDOHQWVDWWKHEHJLQQLQJRIWKH\HDU 928,145 253,307 &DVKDQGFDVKHTXLYDOHQWVDWWKHHQGRIWKH\HDULQFOXGLQJ%DQN2YHUGUDIW 3,009,718 928,145 &DVKDQGFDVK(TXLYDOHQWDWWKHHQGRIWKH\HDU &DVK %DQNEDODQFHDVSHUVFKHGXOH 3,373,154 1,252,844 /HVV 7HPSRUDU\ERRNRYHUGUDIWDVSHUVFKHGXOH &DVKDQG&DVK(TXLYDOHQWDWWKHHQGLQFOXGLQJ%DQN2YHUGUDIW 3,009,718 928,145 6LJQL¿FDQWDFFRXQWLQJSROLFLHVDQGQRWHVWRDFFRXQWVWRWKH)LQDQFLDO6WDWHPHQWVUHIHUVFKHGXOH $VSHURXUDXGLWUHSRUWRIHYHQGDWHDWWDFKHG )RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUV )RU3ULFH:DWHUKRXVH&KDUWHUHG$FFRXQWDQWV//3 Rajendra Chitale +$QVDUL &KDUWHUHG$FFRXQWDQWV )5111 'LUHFWRU ',1 'LUHFWRU ',1 6KDUPLOD$.DUYH 'U7KRPDV0DWKHZ &KKD\D9LUDQL Partner, Membership No. 043229 'LUHFWRU ',1 'LUHFWRU ',1 3ODFH 1HZ )RU3DWKDN+' $VVRFLDWHV +HPDQW.-DLQ 0RKDQ.KDQGHNDU Chartered Accountants (FRN. 107783W) &KLHI)LQDQFLDO2ႈFHU Company Secretary (Membership No. A8515) 0XNHVK0HKWD Partner, Membership No. 043495 3ODFH 0XPEDL 'DWH WK$SULO 62 Annual Report 2017 - 2018 6&+('8/(± 6LJQL¿FDQWDFFRXQWLQJSROLFLHVIRUPLQJSDUWRIWKH¿QDQFLDOVWDWHPHQWVDVDWst March 2018 1. %DFNJURXQG 5HOLDQFH*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG KHUHLQDIWHUUHIHUUHGWRDV³WKH&RPSDQ\´ ZDVLQFRUSRUDWHGRQ$XJXVW 7KH&RPSDQ\LVDVXEVLGLDU\RI5HOLDQFH&DSLWDO/LPLWHG7KH&RPSDQ\REWDLQHGUHJXODWRU\DSSURYDOWR XQGHUWDNH*HQHUDO,QVXUDQFHEXVLQHVVRQ2FWREHUIURPWKH,QVXUDQFH5HJXODWRU\DQG'HYHORSPHQW$XWKRULW\ RI,QGLD ³,5'$,´ DQGLVLQWKHEXVLQHVVRIXQGHUZULWLQJJHQHUDOLQVXUDQFHUHODWLQJWR)LUH0DULQHDQG0LVFHOODQHRXV segments. 7KH&RPSDQ\¶VFHUWL¿FDWHRIUHQHZDORIUHJLVWUDWLRQGDWHG)HEUXDU\ZDVYDOLGWLOO0DUFK3XUVXDQW WRVHFWLRQUHDGZLWKVHFWLRQ$RIWKH,QVXUDQFH$FW DVDPHQGHGE\WKH,QVXUDQFH/DZV $PHQGPHQWV $FW VDLGFHUWL¿FDWHVKDOOFRQVHTXHQWLDOO\FRQWLQXHWREHLQIRUFHIURP$SULO 2. %DVLVRI3UHSDUDWLRQRI)LQDQFLDO6WDWHPHQWV 7KHDFFRPSDQ\LQJ¿QDQFLDOVWDWHPHQWVDUHGUDZQXSLQDFFRUGDQFHZLWKWKH,QVXUDQFH5HJXODWRU\DQG'HYHORSPHQW Authority Act, 1999, The Insurance Regulatory and Development Authority (Preparation of Financial Statements DQG$XGLWRU¶V5HSRUWRI,QVXUDQFH&RPSDQLHV 5HJXODWLRQVDQGRUGHUVDQGGLUHFWLRQVLVVXHGE\,5'$,LQWKLV behalf and the Regulations framed there under read with relevant provisions of The Insurance Act, 1938, as amended E\ ,QVXUDQFH /DZV $PHQGPHQW $FW DQG7KH &RPSDQLHV$FW WR WKH H[WHQW DSSOLFDEOH7KH ¿QDQFLDO statements have been prepared under historical cost convention and on accrual basis in accordance with the generally accepted accounting principles, in compliance with the Accounting Standard (AS) as prescribed in section 133 of the &RPSDQLHV$FWUHDGZLWK5XOHRIWKH&RPSDQLHV $FFRXQWV 5XOHVWRWKHH[WHQWDSSOLFDEOHDQGFRQ¿UP to the statutory provisions in regard to general insurance operations in India. 7KH¿QDQFLDOVWDWHPHQWVDUHSUHVHQWHGLQ,QGLDQUXSHHVURXQGHGRႇWRWKHQHDUHVWWKRXVDQG 3. 8VHRI(VWLPDWHV 7KH SUHSDUDWLRQ RI WKH ¿QDQFLDO VWDWHPHQWV LQ FRQIRUPLW\ ZLWK JHQHUDOO\ DFFHSWHG DFFRXQWLQJ SULQFLSOHV UHTXLUH PDQDJHPHQWWRPDNHHVWLPDWHVDQGDVVXPSWLRQVWKDWDႇHFWWKHUHSRUWHGDPRXQWRIDVVHWVOLDELOLWLHVUHYHQXHVDQG H[SHQVHV DQG GLVFORVXUH RI FRQWLQJHQW OLDELOLWLHV RQ WKH GDWH RI WKH ¿QDQFLDO VWDWHPHQWV$FWXDO UHVXOWV PD\ GLႇHU IURP WKH HVWLPDWHV DQG DVVXPSWLRQV XVHG LQ SUHSDULQJ WKH DFFRPSDQ\LQJ ¿QDQFLDO VWDWHPHQW7KH HVWLPDWHV DQG DVVXPSWLRQVXVHGLQWKHDFFRPSDQ\LQJ¿QDQFLDOVWDWHPHQWVDUHEDVHGXSRQPDQDJHPHQW¶VHYDOXDWLRQRIWKHUHOHYDQW IDFWVDQGFLUFXPVWDQFHVDVRQWKHGDWHRIWKH¿QDQFLDOVWDWHPHQWV$Q\UHYLVLRQWRDFFRXQWLQJHVWLPDWHVLVUHFRJQL]HG prospectively in current and future periods. 4. 5HYHQXH5HFRJQLWLRQ a. 3UHPLXPLQFRPH 3UHPLXP QHWRIVHUYLFHWD[ LVUHFRJQL]HGDVLQFRPHRYHUWKHFRQWUDFWSHULRGRUWKHSHULRGRIULVNZKLFKHYHULV appropriate. Any subsequent revisions to or cancellations of premium are recognized in the year in which they occur. In respect of Government Schemes being implemented by the Company for crop and weather insurance, premium is recognized (including share of Central Government and respective State Government) upon remittance RIIDUPHU¶VVKDUHUHFHLYHGIURPWKH1RGDO%DQNVRXWRIVXFKSUHPLXPFROOHFWHGE\WKHPVXEMHFWWRDFFHSWDQFHRI SURSRVDOGHFODUDWLRQE\WKH&RPSDQ\. E &RPPLVVLRQLQFRPHIURPUHLQVXUDQFHFHGHG i. Commission income on reinsurance ceded is recognized as income in the period in which reinsurance premium is ceded. LL 3UR¿W FRPPLVVLRQ XQGHU UHLQVXUDQFH WUHDWLHV ZKHUHYHU DSSOLFDEOH LV UHFRJQL]HG RQ DFFUXDO EDVLV $Q\ VXEVHTXHQWUHYLVLRQVRISUR¿WFRPPLVVLRQDUHUHFRJQL]HGLQWKH\HDULQZKLFK¿QDOGHWHUPLQDWLRQRIWKHSUR¿WV are intimated by reinsurers. F ,QFRPHHDUQHGRQLQYHVWPHQWV L ,QWHUHVWGLYLGHQG,QFRPH Interest income is recognized on accrual basis. Dividend is recognized when right to receive dividend is established. LL 3UHPLXPGLVFRXQWRQSXUFKDVHRILQYHVWPHQWV $FFUHWLRQRIGLVFRXQWDQGDPRUWL]DWLRQRISUHPLXPUHODWLQJWRGHEWVHFXULWLHVLVUHFRJQL]HGRYHUWKHKROGLQJ maturity period on constant yield to maturity method. 63 Reliance General Insurance Company Limited LLL 3UR¿WORVVRQVDOHRIVHFXULWLHV 5HDOL]HGSUR¿WRUORVVRQVDOHUHGHPSWLRQRIVHFXULWLHVLVUHFRJQL]HGRQWUDGHGDWHEDVLV,QGHWHUPLQLQJWKH UHDOL]HGSUR¿WDQGORVVWKHFRVWRIVHFXULWLHVLVDUULYHGDWRQZHLJKWHGDYHUDJHFRVWEDVLV)XUWKHULQFDVH RIOLVWHGHTXLW\VKDUHVDQGPXWXDOIXQGVWKHSUR¿WDQGORVVDOVRLQFOXGHVDFFXPXODWHGFKDQJHVLQWKHIDLU YDOXHSUHYLRXVO\UHFRJQL]HGLQWKHIDLUYDOXHFKDQJHDFFRXQWDQGLQFOXGHVHႇHFWVRQDFFXPXODWHGIDLUYDOXH FKDQJHVSUHYLRXVO\UHFRJQL]HGIRUVSHFL¿FLQYHVWPHQWVVROGUHGHHPHGGXULQJWKH\HDU 5. 3UHPLXP5HFHLYHGLQ$GYDQFH 3UHPLXPUHFHLYHGLQDGYDQFHUHSUHVHQWVSUHPLXPUHFHLYHGLQUHVSHFWRISROLFLHVLVVXHGGXULQJWKH\HDUZKHUHWKHULVN commences subsequent to the balance sheet date. 5HLQVXUDQFH3UHPLXP i.,QVXUDQFHSUHPLXPFHGHGLVDFFRXQWHGLQWKH\HDULQZKLFKWKHULVNFRPPHQFHVDQGUHFRJQL]HGRYHUWKH&RQWUDFW SHULRG$Q\VXEVHTXHQWUHYLVLRQWRUHIXQGV FDQFHOODWLRQRISROLFLHVDUHUHFRJQL]HGLQWKH\HDULQZKLFKWKH\RFFXU ii.5HLQVXUDQFHLQZDUGLVDFFRXQWHGWRWKHH[WHQWRIWKHUHWXUQVUHFHLYHGIURPWKHUHLQVXUHU 7. 5HVHUYHIRU8QH[SLUHG5LVN 5HVHUYHIRUXQH[SLUHGULVNLVPDGHRQWKHDPRXQWUHSUHVHQWLQJWKDWSDUWRIWKHQHWSUHPLXPZULWWHQZKLFKDWWULEXWDEOH WRDQGWREHDOORFDWHGWRWKHVXFFHHGLQJDFFRXQWLQJSHULRGXVLQJPHWKRGIRUDOOOLQHVRIEXVLQHVVRWKHUWKDQ 0DULQH+XOO,QFDVHRI0DULQH+XOOEXVLQHVVRIWKH1HW:ULWWHQ3UHPLXPGXULQJWKHSUHFHGLQJWZHOYHPRQWKLD UHFRJQL]HGDVUHVHUYHIRU8QH[SLUHG5LVN 8. &ODLPV,QFXUUHG Claims incurred comprises of claims paid (net of salvage and other recoveries), change in estimated liability for RXWVWDQGLQJFODLPVPDGHIROORZLQJDORVVRFFXUUHQFHUHSRUWHGDQGFKDQJHLQHVWLPDWHGOLDELOLW\IRUFODLPV,QFXUUHG%XW 1RW5HSRUWHG µ,%15¶ DQGFODLPV,QFXUUHG%XW1RW(QRXJK5HSRUWHG µ,%1(5¶ )XUWKHUFODLPVLQFXUUHGDOVRLQFOXGH VSHFL¿FFODLPVHWWOHPHQWFRVWVVXFKDVVXUYH\OHJDOIHHVDQGRWKHUGLUHFWO\DWWULEXWDEOHFRVWV Salvaged are recognized on realization basis. &ODLPV QHWRIDPRXQWVUHFHLYDEOHIURPUHLQVXUHUVFRLQVXUHUV DUHUHFRJQL]HGRQWKHGDWHRILQWLPDWLRQXVLQJVWDWLVWLFDO PHWKRGRIHVWLPDWHVFHUWL¿HGE\$SSRLQWHG$FWXDU\7KHVHHVWLPDWHVDUHSURJUHVVLYHO\UHYDOLGDWHGRQDYDLODELOLW\RI further information. ,%15UHSUHVHQWVWKDWDPRXQWRIFODLPVWKDWPD\KDYHEHHQLQFXUUHGGXULQJWKHDFFRXQWLQJSHULRGEXWKDYHQRWEHHQ UHSRUWHGRUFODLPHG7KH,%15SURYLVLRQDOVRLQFOXGHVSURYLVLRQLIDQ\UHTXLUHGIRUFODLPV,%1(5(VWLPDWHGOLDELOLW\ IRUFODLPV,QFXUUHGEXW1RW5HSRUWHG µ,%15¶ DQGFODLPV,QFXUUHGEXW1RW(QRXJK5HSRUWHG µ,%1(5¶ LVFHUWL¿HGMRLQWO\ by the Appointed Actuary and the Mentor to the Appointed Actuary of the Company for the year ended March 31, 2018. 9. $FTXLVLWLRQ&RVW Acquisition costs are costs that vary with and are primarily related to acquisition of insurance contracts and are H[SHQVHGLQWKHSHULRGLQZKLFKWKH\DUHLQFXUUHG 10. /RDQV /RDQVDUHVWDWHGDWKLVWRULFDOFRVWVXEMHFWWRSURYLVLRQDVSHUPDVWHUFLUFXODU,5'$) ,&,5) $GDWHG October 5th, 2012 and impairment, if any. 11. %RUURZLQJ&RVW %RUURZLQJFRVWZKLFKLVGLUHFWO\DWWULEXWDEOHWRDERUURZLQJDUHH[SHQVHGRYHUWKHWHQXUHRIWKHERUURZLQJ,QWHUHVW costs on borrowings are accrued based on coupon rate and will be paid on annually on interest payment date. 12. 3UHPLXP'H¿FLHQF\ 3UHPLXP GH¿FLHQF\ LV UHFRJQL]HG LI WKH FRVW RI H[SHFWHG QHW FODLP FRVW UHODWHG H[SHQVHV DQG PDLQWHQDQFH FRVW H[FHHGVWKHVXPRIUHODWHGSUHPLXPFDUULHGIRUZDUGWRVXEVHTXHQWDFFRXQWLQJSHULRGDVWKHUHVHUYHIRUXQH[SLUHG ULVN3UHPLXPGH¿FLHQF\LVUHFRJQL]HGDWWKH&RPSDQ\OHYHO7KH&RPSDQ\FRQVLGHUVPDLQWHQDQFHFRVWDVUHOHYDQW FRVWLQFXUUHGIRUHQVXULQJFODLPKDQGOLQJRSHUDWLRQV7KHH[SHFWHGFODLPFRVWLVFDOFXODWHGDQGGXO\FHUWL¿HGMRLQWO\E\ the Appointed Actuary and the Mentor to the Appointed Actuary of the Company. 64 Annual Report 2017 - 2018 13. ,QYHVWPHQWV i. ,QYHVWPHQWVPDWXULQJZLWKLQWZHOYHPRQWKVIURPWKH%DODQFH6KHHWGDWHDUHFODVVL¿HGDVVKRUWWHUPLQYHVWPHQWV ,QYHVWPHQWVRWKHUWKDQVKRUWWHUPLQYHVWPHQWVDUHFODVVL¿HGDVORQJWHUPLQYHVWPHQWV ii. ,QYHVWPHQWVDUHFDUULHGDWFRVWRQZHLJKWHGDYHUDJHEDVLV&RVWLQFOXGHVEURNHUDJHVHFXULWLHVWUDQVDFWLRQVWD[ stamp duty and other charges incidental to transactions. iii. ,QYHVWPHQWLQGHEWVHFXULWLHVLVVKRZQLQWKH%DODQFHVKHHWDWKLVWRULFDOFRVWVXEMHFWWRDPRUWLVDWLRQDFFUHWLRQRI WKHSUHPLXPGLVFRXQWRYHUWKHPDWXULW\SHULRGEDVHGRQFRQVWDQW\LHOGWRPDWXULW\PHWKRG iv. ,QYHVWPHQWLQHTXLW\VKDUHVDVDWWKH%DODQFH6KHHWGDWHLVVWDWHGDWIDLUYDOXHDQGIDLUYDOXHLVWKHODVWTXRWHG FORVLQJSULFHRQWKH1DWLRQDO6WRFN([FKDQJH+RZHYHULQFDVHRIDQ\VWRFNQRWEHLQJOLVWHGLQ1DWLRQDO6WRFN ([FKDQJHWKHQWKHODVWTXRWHGFORVLQJSULFHLQ%RPED\6WRFN([FKDQJHLVWDNHQDVIDLUYDOXH8QUHDOL]HGJDLQV ORVVHVDUHFUHGLWHGGHELWHGWRIDLUYDOXHFKDQJHDFFRXQW v. 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Actuarial gains and losses are recognized in the 3UR¿WDQG/RVVDFFRXQWDQGUHYHQXHDFFRXQWDVDSSOLFDEOH7RWKHH[WHQWWKHEHQH¿WDUHDOUHDG\YHVWHGSDVW service cost is recognized. III. 2WKHU/RQJ7HUP(PSOR\HH%HQH¿WV 3URYLVLRQIRURWKHUORQJWHUPEHQH¿WVLQFOXGHVDFFXPXODWHGFRPSHQVDWHGDEVHQFHVWKDWDUHHQWLWOHGWREHFDUULHG forward for future encashment or availment, at the option of the employer subject to the rules framed by the &RPSDQ\ZKLFKDUHH[SHFWHGWREHDYDLOHGRUHQFDVKHGEH\RQGWZHOYHPRQWKVIURPWKH%DODQFH6KHHWGDWH 7KH&RPSDQ\¶VOLDELOLW\WRZDUGVWKHVHRWKHUORQJWHUPEHQH¿WVDUHDFFUXHGDQGSURYLGHGIRURQWKHEDVLVRIDQ actuarial valuation using Projected Unit Credit Method. IV. 3KDQWRP6WRFN2SWLRQ6FKHPH 3KDQWRP6WRFN2SWLRQ6FKHPH µWKH6FKHPH¶ DUHFDVKVHWWOHGULJKWVZKHUHWKH(PSOR\HHVDUHHQWLWOHGWR JHWFDVKFRPSHQVDWLRQEDVHGRQDIRUPXODOLQNHGWRWKH)DLU0DUNHW9DOXHRI6KDUHVXSRQH[HUFLVHRIWKH3KDQWRP 6WRFN 2SWLRQV 7KH &RPSDQ\¶V OLDELOLW\ WRZDUGV WKH VFKHPH LV DFFRXQWHG IRU RQ WKH EDVLV RI DQ LQGHSHQGHQW DFWXDULDOYDOXDWLRQGRQHDVDWEDODQFHVKHHWGDWHXVLQJ3URMHFWHG8QLW&UHGLW0HWKRGDQGDQ\DFWXDULDOJDLQV ORVVHVDUHFKDUJHGWRWKHUHYHQXHDFFRXQWRUWKHSUR¿WDQGORVVDFFRXQWDVDSSOLFDEOHRYHUWKHYHVWLQJSHULRGRQ straight line method. V. (PSOR\HHVWRFNRSWLRQSROLF\ The company follows the intrinsic method for computing the compensation cost,for the option granted under the SDOQ7KHGLႇHUHQFHLIDQ\EHWZHHQWKHLQWULQVLFYDOXHDQGWKHH[HUFLVHSULFHEHLQJWKHFRPSHQVDWLRQFRVWLV amortized over the vesting period of the options. 19. )RUHLJQ&XUUHQF\7UDQVDFWLRQ 7UDQVDFWLRQVGHQRPLQDWHGLQIRUHLJQFXUUHQFLHVDUHUHFRUGHGDWWKHH[FKDQJHUDWHSUHYDLOLQJDWWKHWLPHRIWUDQVDFWLRQ 0RQHWDU\LWHPVGHQRPLQDWHGLQIRUHLJQFXUUHQFLHVDWWKH\HDUHQGDUHUHLQVWDWHGDWWKH\HDUHQGUDWHV1RQPRQHWDU\ IRUHLJQFXUUHQF\LWHPVDUHFDUULHGDWFRVW$Q\JDLQRUORVVRQDFFRXQWRIH[FKDQJHGLႇHUHQFHHLWKHURQVHWWOHPHQWRU RQWUDQVODWLRQLVUHFRJQL]HGLQWKH3UR¿WDQG/RVVDFFRXQWDQG5HYHQXH$FFRXQWVDVDSSOLFDEOH 66 Annual Report 2017 - 2018 20. )RUZDUG&RQWUDFW7UDQVDFWLRQ ,QFDVHRIIRUZDUGH[FKDQJHFRQWUDFWVHQWHUHGLQWRWRKHGJHWKHIRUHLJQFXUUHQF\H[SRVXUHLQUHVSHFWRIPRQHWDU\ LWHPVWKHGLႇHUHQFHEHWZHHQWKHH[FKDQJHUDWHRQWKHGDWHRIVXFKFRQWUDFWVDQGWKHSHULRGHQGUDWHLVUHFRJQL]HG LQWKHSUR¿WDQGORVVDFFRXQWDQGUHSRUWDEOHUHYHQXHVHJPHQWV$Q\SUR¿WORVVDULVLQJRQFDQFHOODWLRQRIIRUZDUG H[FKDQJHFRQWUDFWLVUHFRJQL]HGDVLQFRPHRUH[SHQVHRIWKH\HDU 21. Taxation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ÀHFWWKH amount that is reasonably or virtually certain to be realized. In accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants RI,QGLDDQGLQDFFRUGDQFHZLWKWKHSURYLVLRQVRIWKH,QFRPHWD[$FW 0LQLPXP$OWHUQDWLYH7D[ 0$7 FUHGLWLV UHFRJQL]HGDVDQDVVHWWRWKHH[WHQWWKHUHLVFRQYLQFLQJHYLGHQFHWKDWWKH&RPSDQ\ZLOOSD\QRUPDOLQFRPHWD[LQ IXWXUHE\ZD\RIDFUHGLWWRWKHSUR¿WDQGORVVDFFRXQWDQGVKRZQDV0$7FUHGLWHQWLWOHPHQW 22. $OORFDWLRQRI([SHQVHV 7KH&RPSDQ\KDVD%RDUGDSSURYHGSROLF\IRUDOORFDWLRQDQGDSSRUWLRQPHQWRIH[SHQVHVRIPDQDJHPHQWDPRQJVW YDULRXVEXVLQHVVVHJPHQWVDVUHTXLUHGE\,5'$, ([SHQVHVRI0DQDJHPHQWRI,QVXUHUVWUDQVDFWLQJ*HQHUDORU+HDOWK ,QVXUDQFH%XVLQHVV 5HJXODWLRQV $FFRUGLQJO\2SHUDWLQJH[SHQVHVUHODWLQJWRLQVXUDQFHEXVLQHVVDUHDOORFDWHGWRVSHFL¿FFODVVHVRIEXVLQHVVRQWKH IROORZLQJEDVLV i. ([SHQVHVZKLFKDUHDWWULEXWDEOHDQGLGHQWL¿DEOHWRWKHEXVLQHVVVHJPHQWVDUHGLUHFWO\FKDUJHGWRUHOHYDQWEXVLQHVV VHJPHQW7KLVLVGHWHUPLQHGE\WKHPDQDJHPHQWEDVHGRQWKHQDWXUHRIWKHH[SHQVHVDQGWKHLUUHODWLRQVKLSZLWK various business segments, wherever possible ii. (PSOR\HH¶VUHPXQHUDWLRQDQGZHOIDUHH[SHQVHVUHODWLQJWRXQGHUZULWLQJDQGFODLPVIXQFWLRQZKLFKDUHDWWULEXWDEOHDQG LGHQWL¿HGDW+HDOWK0RWRUDQG&RPPHUFLDOOLQHVRIEXVLQHVVDUHGLUHFWO\FKDUJHGWRWKHUHVSHFWLYHOLQHVRIEXVLQHVV and the same will further be allocated based on Net Written Premium of respective class of business iii. 2WKHUH[SHQVHVWKDWDUHQRWLGHQWL¿DEOHDWWKHVHJPHQWVDUHDOORFDWHGRQWKHEDVLVRI1HW:ULWWHQ3UHPLXPLQHDFK EXVLQHVV FODVV H[FHSW DGYHUWLVHPHQW DQG SXEOLFLW\ H[SHQVHV ZKLFK DUH QRW DOORFDWHG ZKHUH EXVLQHVV LV VRXUFHG WKURXJKWHQGHUELGGLQJWRZDUGVJRYHUQPHQWVSRQRUVHGVFKHPHVIRU+HDOWKDQG&URSDQG:HDWKHU ([SHQVHVUHODWLQJWRLQYHVWPHQWDFWLYLWLHVDQGLQWHUHVWFRVWRQERUURZLQJVDUHFKDUJHGWRSUR¿WDQGORVVDFFRXQW 23. $OORFDWLRQRI,QYHVWPHQW$VVHWV Investments assets are bifurcated into Policyholders and Shareholders funds on notional basis as per IRDAI circular QR,5'$) $&,5&30GDWHGth$SULODQG,5'$) $&,5&30GDWHGth January, 2017. Policyholders funds represent amount equivalent to sum of Outstanding Claims including Incurred but not 5HSRUWHG ,%15 DQG,QFXUUHGEXWQRW(QRXJK5HSRUWHG ,%1(5 8QH[SLUHG5LVN5HVHUYH 855 3UHPLXP'H¿FLHQF\ &DWDVWURSKH5HVHUYHDQG2WKHU/LDELOLWLHVQHWRႇRWKHUDVVHWVDVVSHFL¿HGE\WKHDXWKRULW\DQGWKHEDODQFHEHLQJ disclosed as Shareholders Funds. 24. $OORFDWLRQRI,QYHVWPHQW,QFRPH ,QYHVWPHQW,QFRPHKDVEHHQDOORFDWHGEHWZHHQUHYHQXHDFFRXQWVDQGSUR¿WDQGORVVDFFRXQWLQWKHUDWLRDQLQYHVWPHQW DVVHW ELIXUFDWHG EHWZHHQ SROLF\KROGHUV DQG VKDUHKROGHUV )XUWKHU LQYHVWPHQW LQFRPH EHWZHHQ SROLF\KROGHU¶V LV DOORFDWHG RQ WKH EDVLV RI WKH UDWLR RI DYHUDJH SROLF\KROGHU¶V IXQGV FRPSULVLQJ UHVHUYHV IRU XQH[SLUHG ULVNV ,%15 ,%1(5DQGRXWVWDQGLQJFODLPV 25. (DUQLQJVSHUVKDUH (36 7KHHDUQLQJVFRQVLGHUHGLQDVFHUWDLQLQJWKH&RPSDQ\¶V(36FRPSULVHVWKHQHWSUR¿WDIWHUWD[7KHQXPEHURIVKDUHV used in computing basic EPS is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted EPS comprises of weighted average number of shares considered for deriving basic 67 Reliance General Insurance Company Limited EPS and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. 3RWHQWLDOHTXLW\VKDUHVDUHGHHPHGWREHGLOXWLYHRQO\LIWKHLUFRQYHUVLRQRIHTXLW\VKDUHVZRXOGGHFUHDVHWKHQHWSUR¿W per share from continuing ordinary operations. 3URYLVLRQ&RQWLQJHQW/LDELOLWLHVDQG&RQWLQJHQW$VVHWV The Company creates a provision when there is a present obligation as a result of past events and it is probable that WKHUHZLOOEHRXWÀRZRIUHVRXUFHVDQGDUHOLDEOHHVWLPDWHRIWKHREOLJDWLRQFDQEHPDGHRIWKHDPRXQWRIWKHREOLJDWLRQ &RQWLQJHQWOLDELOLWLHVDUHQRWUHFRJQL]HGEXWDUHGLVFORVHGLQWKHQRWHVWRWKH¿QDQFLDOVWDWHPHQWV$GLVFORVXUHIRUD contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not UHTXLUHDQRXWÀRZRIUHVRXUFHV:KHQWKHUHLVDSRVVLEOHREOLJDWLRQRUDSUHVHQWREOLJDWLRQLQUHVSHFWRIZKLFKWKH OLNHOLKRRGRIRXWÀRZRIUHVRXUFHVLVUHPRWHQRSURYLVLRQRUGLVFORVXUHLVPDGH 3URYLVLRQVDUHUHYLHZHGDWHDFKEDODQFHVKHHWGDWHDQGDGMXVWHGWRUHÀHFWWKHFXUUHQWEHVWHVWLPDWH,ILWLVQRORQJHU SUREDEOHWKDWWKHRXWÀRZRIUHVRXUFHVZRXOGEHUHTXLUHGWRVHWWOHWKHREOLJDWLRQWKHSURYLVLRQLVUHYHUVHG Contingent aVVHWVDUHQRWUHFRJQL]HGQRUGLVFORVHGLQWKH¿QDQFLDOVWDWHPHQWV 6&+('8/(±1RWHVIRUPLQJSDUWRIWKH$FFRXQWVDVRQst March 2018 1. &RQWLQJHQW/LDELOLWLHV `LQ¶ Particulars $VRQ $VRQ March 31, 2018 March 31, 2017 Partly paid up investments - Underwriting commitments outstanding - &ODLPVRWKHUWKDQXQGHUSROLFLHVQRWDFNQRZOHGJHGDVGHEW 1HW 23,714 Guarantees given by or on behalf of the company 11,987 1,070 6WDWXWRU\GHPDQGVOLDELOLWLHVLQGLVSXWHQRWSURYLGHGIRU VHHQRWH 1,605 F DQG H EHORZ 5HLQVXUDQFHREOLJDWLRQVWRWKHH[WHQWQRWSURYLGHGIRULQDFFRXQWV - 2WKHUV VHHQRWH I J EHORZ 27,024 13,925 1RWH D 6HUYLFH7D['HSDUWPHQWKDG¿OHGDQDSSHDOEHIRUH&(67$7RQWKHLVVXHRIDYDLOPHQWRI&HQYDW&UHGLWLQH[FHVVRI UHVWULFWLRQRIRIRXWSXWVHUYLFHWD[OLDELOLW\GXULQJ¿QDQFLDO\HDUDVSHUHUVWZKLOH5XOH F RI&HQYDW &UHGLW5XOHVDPRXQWLQJWR5VWKRXVDQGV%DVHGRQWKHIDYRXUDEOHRUGHUIURP3ULQFLSDO&RPPLVVLRQHU 6HUYLFH7D[,,0XPEDLWKHPDQDJHPHQWGRHVQRWH[SHFWDQ\RXWÀRZRIHFRQRPLFEHQH¿WVDQGDVVHVVHGWKH OLNHOLKRRGRIRXWÀRZRIUHVRXUFHVDVUHPRWHKHQFHQRWFRQVLGHULQDERYHWDEOH E 6HUYLFH7D['HSDUWPHQW KDG ¿OHG DQ DSSHDO EHIRUH &(67$7 RQ WKH LVVXH RI :URQJ DYDLOPHQW RI ,QSXW &UHGLW IRUWKH¿QDQFLDO\HDUIURPWRDPRXQWLQJWR5VWKRXVDQG%DVHGRQWKHIDYRXUDEOHRUGHU IURP3ULQFLSDO&RPPLVVLRQHU6HUYLFH7D[,,0XPEDLWKHPDQDJHPHQWGRHVQRWH[SHFWDQ\RXWÀRZRIHFRQRPLF EHQH¿WVDQGDVVHVVHGWKHOLNHOLKRRGRIRXWÀRZRIUHVRXUFHVDVUHPRWH c) The Company has received adverse order on the issue of wrong availment of cenvat credit amounted to Rs WKRXVDQGVIRUWKHSHULRG)< WR)<$SHQDOW\LVDOVRLPSRVHGRQWKHVDLGRUGHURI5V WKRXVDQGV7KH&RPSDQ\LVLQWKHSURFHVVRI¿OLQJWKHDSSHDOZLWK&(67$7DJDLQVWWKHVDPH G 7KH6KRZFDXVHQRWLFHVLVVXHGE\7D[$XWKRULWLHVKDYHQRWEHHQFRQVLGHUHGDVREOLJDWLRQVE\WKHFRPSDQ\7KH GHPDQGQRWLFHVDUHFODVVL¿HGDVGLVSXWHGRQO\ZKHQWKHVDPHDUHFRQ¿UPHGE\WKH$SSHOODWH$XWKRULW\ H 7KH&RPSDQ\KDGGLVSXWHGWKHGHPDQGUDLVHGE\WKHLQFRPHWD[GHSDUWPHQWIRUQRQGHGXFWLRQRIWD[DWVRXUFH IRU5VWKRXVDQGVIRU$< DQGIRUVHFWLRQ$GLVDOORZDQFHIRU5VWKRXVDQGIRU$< 'XULQJWKH\HDU7KH'HSDUWPHQWKDGDOVRFRQWHVWHGEHIRUH,7$7WRZDUGVIDYRXUDEOHSHQDOW\RUGHUXV F SDVVHGLQIDYRXURI&RPSDQ\IRU$<WR$<IRU5V WKRXVDQGV I 6WDWXWRU\ERQXVRI5V WKRXVDQGVSXUVXDQWWRUHWURVSHFWLYHDPHQGPHQWLQWKH%RQXV$FW IRU¿QDQFLDO \HDUKDYHQRWEHHQSURYLGHGFRQVLGHULQJVWD\RUGHUVRI+RQ¶EOH.HUDOD+LJK&RXUWDQG.DUQDWDND+LJK Court. g) The company has transfer an amount of Rs 13,099 thousand towards unclaimed amount of policyholders outstanding more than 10 year as on 30th6HSWHPEHUWR6HQLRU&LWL]HQV ZHOIDUHIXQGDVSHU,5'$,&LUFXODU 5HI ,5'$) $&,50LVFGDWHG WK-XO 68 Annual Report 2017 - 2018 2. According to the information available with the Company there are no dues (Previous year Rs Nil) payable to Micro DQG6PDOO(QWHUSULVHVDVGH¿QHGXQGHU0LFUR6PDOODQG0HGLXP(QWHUSULVHV'HYHORSPHQW$FWDVDW0DUFK 2018. 3. There are no encumbrances to the assets of the company in and outside India. 4. 7KHFRPSDQ\KDVQRWLQYHVWHGDQ\DPRXQWLQUHDOHVWDWHLQWKHFXUUHQW¿QDQFLDO\HDU 5. &RPPLWPHQWV i. 7KHUHDUHQRFRPPLWPHQWVPDGHDQGRXWVWDQGLQJIRU/RDQVLQWKHFXUUHQW¿QDQFLDO\HDU(Previous year Rs Nil). ii. The commitments made and outstanding for Investments are Nil (Previous year Rs Nil). LLL (VWLPDWHGDPRXQWRIFRPPLWPHQWSHUWDLQLQJWRFRQWUDFWVUHPDLQLQJWREHH[HFXWHGLQUHVSHFWRI¿[HGDVVHWV QHWRI advances) is ` 28,811 thousands (Previous year Rs 28,574 thousands). 3UHPLXP i. All premiums net of reinsurance are written and received in India. ii. 3UHPLXPLQFRPHUHFRJQLVHGRQ³9DU\LQJ5LVN3DWWHQ´LV1LO 3UHYLRXV\HDU 1LO 7. &ODLPV i. &ODLPVQHWRIUHLQVXUDQFHVDUHLQFXUUHGDQGSDLGWRFODLPDQWVLQRXWVLGH,QGLDDVXQGHU `LQ¶ Particulars )RUWKH\HDUHQGHG )RUWKH\HDUHQGHG March 31, 2018 March 31, 2017 In India 12,215,575 Outside India 85,489 LL 7KHUHDUHQRFODLPVZKLFKDUHVHWWOHGDQGXQSDLGIRUDSHULRGRIPRUHWKDQVL[PRQWKVDVRQWKH%DODQFH6KHHW date. LLL $JHLQJRIJURVVFODLPVRXWVWDQGLQJLVVHWRXWLQWKHWDEOHEHORZ `LQ¶ Particulars $VDW $VDW March 31, 2018 March 31, 2017 0RUHWKDQVL[PRQWKV 16,856,176 Others 5,041,734 10,481,174 LY &ODLPVZKHUHWKHFODLPSD\PHQWSHULRGH[FHHGVIRXU\HDUVLV1LO 3UHYLRXV\HDU1LO 8. ,QYHVWPHQWV i. 9DOXHRIFRQWUDFWVLQUHODWLRQWRLQYHVWPHQWVIRU `LQ¶ Particulars $VDW $VDW March 31, 2018 March 31, 2017 Purchases where deliveries are pending* Nil 53,187 Sales where payment are overdue Nil Nil Sales where deliveries are pending 207,101 1,442,482 *These amount have been settled post balance sheet date LL +LVWRULFDOFRVWRILQYHVWPHQWVYDOXHGDWIDLUYDOXHRQ%DODQFH6KHHWGDWHLV` 3,360,405 thousands (Previous year Rs 3,895,578 thousands). 9. (PSOR\HH%HQH¿WV i. 'H¿QHG&RQWULEXWLRQ3ODQ 'XULQJWKH\HDU&RPSDQ\KDVUHFRJQL]HG`WKRXVDQGVDVH[SHQVHV 3UHYLRXV year Rs 94,410 thousands) 69 Reliance General Insurance Company Limited ii. 'H¿QHG %HQH¿W 3ODQ 7KH GLVFORVXUH UHTXLUHG XQGHU WKH GH¿QH EHQH¿W SODQ DV SHU$6 IRU JUDWXLW\ IXQG LV SURYLGHGEHORZ `LQ¶ Gratuity $VDW $VDW March 31, 2018 March 31, 2017 , $VVXPSWLRQV Discount Rate 7.18% 6.67% Rate of Return on Plan Assets 7.18% 6.67% Salary Escalation 6.00% ,, 7DEOH6KRZLQJ&KDQJHLQ%HQH¿W2EOLJDWLRQ /LDELOLW\DWWKHEHJLQQLQJRIWKH 70 Annual Report 2017 - 2018 ([SHULHQFHDGMXVWPHQWV `LQ¶ Particulars For the Year For the Year For the Year For the Year For the Year ended March ended March ended March ended March ended March 31, 2018 31, 2017 31, 2015 31, 2014 'H¿QHGEHQH¿WV 129,889 104,630 79,310 45,727 REOLJDWLRQV Plan assets 152,491 127,280 101,853 75,131 49,596 6XUSOXV 'H¿FLW (2,609) (2,777) (4,178) 3,869 ([SHULHQFHDGMXVWPHQW 16,558 5,884 15,910 670 IRUSODQOLDELOLWLHV *DLQ /RVVHV ([SHULHQFHDGMXVWPHQW 4,361 (2,496) 4,722 291 IRUSODQ$VVHW ORVVHV Gains $VWKHJUDWXLW\IXQGLVPDQDJHGE\5HOLDQFH1LSSRQ/LIH,QVXUDQFH&RPSDQ\GHWDLOVRILWVLQYHVWPHQWVDUHQRW available with the Company. 10. 'HIHUUHG7D[HV 7KHGHIHUUHGWD[DVVHWVDQGOLDELOLWLHVDULVLQJGXHWRWLPLQJGLႇHUHQFHVKDYHEHHQUHFRJQL]HGLQWKH¿QDQFLDOVWDWHPHQWV DVXQGHU `LQ¶ Particulars $VDW $VDW March 31, 2018 March 31, 2017 'HIHUUHG7D[$VVHW 5HODWHGWR)L[HG$VVHWV 35,992 15,524 5HODWHGWR/HDYH(QFDVKPHQW3URYLVLRQ 911 7,619 /RQJ7HUP(PSOR\HH%HQH¿W 44,129 33,732 3URYLVLRQIRU'RXEWIXO'HEW$GYDQFHV 231,398 Unabsorbed Depreciation 397,015 393,197 Total 709,445 450,072 'HIHUUHG7D[$VVHW /LDELOLW\ 1HW 709,445 450,072 'HIHUUHG7D[([SHQVH ,QFRPH UHFRJQLVHGLQ3UR¿WDQG/RVV$F - - 7KH FRPSDQ\ KDV 'HIHUUHG7D[$VVHW LQ WKH IRUP RI GLVDOORZDQFHV XQGHU ,QFRPH7D[$FW DQG FDUULHG IRUZDUG ORVVHV &RPSDQ\KDVUHFRJQLVHG'HIHUUHG7D[$VVHWRI5VWKRXVDQGLQWKHERRNVRIDFFRXQWVRQFRQVHUYDWLYHEDVLV H[FHVV'HIHUUHG7D[KDVQRWEHHQUHFRJQLVHGLQWKH%RRNVRI$FFRXQWV1RGHIHUUHGWD[RQFDUU\IRUZDUGORVVHVSURYLGHG on conservative basis. 11. 3KDQWRP6WRFN2SWLRQ6FKHPH 3626 (i) Details of vesting schedule and condition. 3KDQWRP6WRFN2SWLRQVJUDQWHGXQGHUWKH6FKHPHZRXOGYHVWZLWKLQQRWOHVVWKDQ\HDUDQGQRWPRUHWKDQ\HDUV IURPWKHODVWGDWHRIYHVWLQJRIVXFK3KDQWRP6WRFN2SWLRQV9HVWLQJRI3KDQWRP6WRFN2SWLRQVZRXOGEHVXEMHFWWR FRQWLQXHGHPSOR\PHQWZLWKWKH&RPSDQ\DQGWKXVWKH3KDQWRP6WRFN2SWLRQVZRXOGYHVWRQSDVVDJHRIWLPH LL 2SWLRQVJUDQWHGIRUIHLWHGDQGH[HUFLVHGDUHJLYHQEHORZ Particulars 1RRIRSWLRQV Outstanding as at 1st April, 2017 1,033,673 Granted* 884,103 ([HUFLVHG 45,719 /DSVHG)RUIHLWHG6XUUHQGHUHG 103,851 Outstanding as at 31st March, 2018 1,768,206 ([HUFLVDEOHDVDWVW0DUFK 707,282 'XULQJWKH\HDUWKH&RPSDQ\KDVJUDQWHGERQXVVKDUHVLQ 7KHJUDQWLQFOXGHVLPSDFWRIERQXVVKDUHVLQ issued by the Company. 71 Reliance General Insurance Company Limited LLL 'HWDLORISKDQWRPVKDUHJUDQWHGVXEMHFWWRWKHWHUPDQGFRQGLWLRQVDVSHU3KDQWRPVWRFNVFKHPH Particulars Date of Grant October 15, 2015 %DVH3ULFH3HU3KDQWRPVWRFN2SWLRQ ` 122 $SSUHFLDWLRQSHU3KDQWRPVWRFN2SWLRQ ([FHVVRI IDLUPDUNHWRIVKDUHRQWKHGDWHRIH[HUFLVH GHWHUPLQHGLQWHUP RIWKH3KDQWRP6WRFN2SWLRQ6FKHPHRYHUWKH%DVH3ULFH Formula for the valuation of the Co. %RRNHGYDOXH;)L[HG0XOWLSOLHU ([HUFLVH3HULRG D ,Q FDVH RI FRQWLQXDWLRQ RI HPSOR\PHQW 9HVWHG 3KDQWRP 6WRFN 2SWLRQVFDQEHH[HUFLVHGDQ\WLPHXSWR\HDUIURPWKHGDWHRIODVW YHVWLQJRI3KDQWRPVWRFN2SWLRQV DQG E ,Q FDVH RI FHVVDWLRQ RI HPSOR\PHQW 'LႇHUHQW SHULRGV GHSHQGLQJ RQNLQGRIFHVVDWLRQDVSHUSURYLVLRQRIWKH3KDQWRP6WRFN2SWLRQ scheme. 6HWWOHPHQWRI3KDQWRP6WRFN2SWLRQV :LWKLQ GD\VIURPWKHGDWHRIH[HUFLVHE\FDVK Y 7KHIDLUYDOXHRIWKHRSWLRQVJUDQWHGDUHZLWKIROORZLQJDVVXPSWLRQV Particulars For the Year ended For the Year ended March 31, 2018 March 31, 2017 Discount rate 7.18% 6.77% ([SHFWHG/LIH 3 years 5 Years YLL 7KH&RPSDQ\¶VOLDELOLW\WRZDUGVWKHVFKHPHLVDFFRXQWHGIRURQWKHEDVLVRIDQLQGHSHQGHQWDFWXDULDOYDOXDWLRQGRQH at the year end. The valuation of the shares is done considering the Project Unit Credit Method and the progression of VKDUHSULFHXSWRWKHH[HUFLVHRIWKHRSWLRQ7KHWRWDOH[SHQVHUHFRJQLVHGIRUWKH\HDUHQGHG0DUFKLV5V thousands (Previous year ` 67,214 thousands). 12. (PSOR\HH6WRFN2SWLRQ6FKHPH (623 5HOLDQFH*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG(PSOR\HH6WRFN2SWLRQ3ODQLVLQFRPSOLDQFHZLWKWKH6(%,(623 Regulations and the Companies Act, 2013, and is accounted for in accordance with guidance notes issued by ICAI and the UHOHYDQWDFFRXQWLQJVWDQGDUGVIXUWKHUVDOLHQWIHDWXUHVLQUHODWLRQWR5*,&/(623DUHDVIROORZV Particulars Details Date of Grant 4th August, 2017 Options granted 2,197,764 options Pricing formula (DFKRSWLRQZDVJUDQWHGDWVXFKH[HUFLVHSULFHZKLFKZDV equal to Rs 179 per Equity Share ([HUFLVHGGXULQJWKH\HDU Nil Vested during the year Nil ([HUFLVHSULFHRIRSWLRQV LQ5V 179 per option Vesting period 7KHYHVWLQJSHULRGVSHFL¿HGXQGHU5*,&/(623LV Years 2SWLRQVODSVHGIRUIHLWHGFDQFHOOHG $VRQ0DUFK RSWLRQVZHUHODSVHG IRUIHLWHGFDQFHOOHG Total number of options in force as on March 31, 2018 2,061,168 unvested options 7KH&RPSDQ\KDVFKRVHQWRDFFRXQWE\WKH,QWULQVLF9DOXH0HWKRG7KHWRWDOH[SHQVHUHFRJQL]HGIRUWKH\HDUDULVLQJIURP VWRFNRSWLRQSODQDVSHU,QWULQLF9DOXH0HWKRGLV1LO7KHIDLUYDOXHRIWKHRSWLRQVJUDQWHGZDVHVWLPDWHGE\WKHPDQDJHPHQW There is no impact of fair value method on granted option, accordingly no change in earning per share. 13. 3UHPLXP'H¿FLHQF\5HVHUYH ,QDFFRUGDQFHZLWK,QVXUDQFH5HJXODWRU\DQG'HYHORSPHQW$XWKRULW\RI,QGLD $VVHW/LDELOLWLHVDQG6ROYHQF\0DUJLQRI *HQHUDO,QVXUDQFH%XVLQHVV 5HJXODWLRQWKHUHLVQROLDELOLW\WRZDUGVSUHPLXPGH¿FLHQF\DWWKH&RPSDQ\OHYHO7KH H[SHFWHGFODLPFRVWLVFHUWL¿HGE\WKH$SSRLQWHG$FWXDU\DQG0HQWRUWRWKH$SSRLQWHG$FWXDU\RIWKH&RPSDQ\ 72 Annual Report 2017 - 2018 14. 'HWDLOVRI2XWVRXUFLQJ%XVLQHVV'HYHORSPHQWDQG0DUNHWLQJ6XSSRUW([SHQVHV `LQ¶ Particulars For the Year ended For the Year ended March 31, 2018 March 31, 2017 2XWVRXUFLQJ([SHQVHV 1,509,948 1,252,084 %XVLQHVV'HYHORSPHQW 2,888,559 0DUNHWLQJ6XSSRUW 615,841 15. 7HUURULVP3RRO In accordance with the requirements of IRDAI, the company together with other insurance companies participates in the Terrorism Pool. This pool is managed by the General Insurance Corporation of India (GIC). Amount collected as WHUURULVPSUHPLXPLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRIWKH7DULႇ$GYLVRU\&RPPLWWHH 7$& DUHFHGHGDWRI the terrorism premium collected to the Terrorism Pool. ,QDFFRUGDQFHZLWKWKHWHUPVRIWKHDJUHHPHQW*,&UHWURFHGHWRWKHFRPSDQ\WHUURULVPSUHPLXPWRWKHH[WHQWRIWKH FRPSDQ\¶VVKDUHLQWKHULVNZKLFKLVUHFRUGHGDVUHLQVXUDQFHDFFHSWHG6XFKUHLQVXUDQFHDFFHSWHGLVUHFRUGHGEDVHG on quarterly statements received from GIC. The reinsurance accepted on account of terrorism pool has been recorded in accordance with the latest statement received from GIC 7KH&RPSDQ\KDVFUHDWHGOLDELOLW\WRWKHH[WHQWRIRISUHPLXPUHWURFHGHGWRWKHFRPSDQ\WKURXJKUHVHUYHIRU XQH[SLUHGULVNV &RQWULEXWLRQWR(QYLURQPHQW5HOLHI)XQG )RUWKH\HDUHQGHG0DUFKWKH&RPSDQ\KDGFROOHFWHG5VWKRXVDQG 3UHYLRXV\HDU5VWKRXVDQG towards Environment Relief Fund (ERF) for public liability policies and an amount of Rs 1,455 thousand (Previous year 5V WKRXVDQG WUDQVIHUUHG WR ³8QLWHG ,QGLD ,QVXUDQFH &RPSDQ\ /LPLWHG (QYLURQPHQW )XQG$FFRXQW´ DV SHU1RWL¿FDWLRQRI(5)VFKHPHXQGHUWKHSXEOLFOLDELOLW\,QVXUDQFH$FW DVDPHQGHGEDODQFHDPRXQWRI5V thousand (Previous year Rs 31 thousand) is shown under current liabilities in schedule 13. 17. &RQWULEXWLRQWR6RODWLXP)XQG In accordance with the requirements of the IRDAI circular dated March 18, 2003 and based on recommendations made at the General Insurance Council meeting held on February 4, 2005, the Company has provided 0.1% of gross written SUHPLXPRQDOOPRWRUWKLUGSDUW\SROLFLHV H[FOXGLQJUHLQVXUDQFHSUHPLXPDFFHSWHGRQPRWRUWKLUGSDUW\IRUFRPPHUFLDO vehicles) towards contribution to the solatium fund. 18. 5HGXFWLRQRI6KDUH&DSLWDO 3XUVXDQWWR+LJK&RXUWRUGHUGDWHG-DQXDU\WKH&RPSDQ\KDVUHGXFHGWKH6HFXULWLHV3UHPLXPIURP5V WKRXVDQGVWR5VWKRXVDQGVE\XWLOL]LQJWKHVDPHWRZDUGVGH¿FLWLQWKH3UR¿W /RVV$FFRXQW as at 31st March, 2016. The Company received approval from IRDAI on May 23, 2016 in this regards. Further, the &RPSDQ\KDVFKDUJHGWKHH[SHQVHVDPRXQWLQJWR` 1,513 thousands incurred for the reduction of share capital to the 3UR¿W /RVVDFFRXQWDVSHUWKHGLUHFWLRQUHFHLYHGIURP,5'$, 19. %RUURZLQJV During the year ended March 31 2017, the Company has issued Unsecured Subordinated Redeemable 9.10% Non Convertible Debentures, in accordance with Insurance Regulatory and Development Authority of India (Other forms of Capital) Regulations, 2015, amounting to `WKRXVDQGRQSULYDWHSODFHPHQWEDVLVOLVWHGDW%RPED\6WRFN ([FKDQJH Maturity Pattern from the date of issue `LQ¶ 0DWXULW\%XFNHWV %RUURZLQJV 1 to 5 years Above 5 years 2,300,000 Total 2,300,000 73 Reliance General Insurance Company Limited *LVWRIWKHWHUPVRILVVXHDUHDVIROORZV Series A NCD 01 Type I Type, Nature and Seniority of Instrument Rated, listed, unsecured, subordinated, redeemable and non convertible debentures Face Value (per security) Rs 1,000 in thousand Issue Size Rs 2,300,000 in thousand ,VVXH'DWH'DWHRI$OORWPHQW 16th August, 2016 Redemption Date 17th August, 2026 Coupon Rate 9.10% per annum Credit Rating ³&$5($$´E\&$5(DQG³%:5$$´E\%ULFNZRUN /LVWLQJ /LVWHGRQ:'0RQ%6( Frequency of the Interest Payment Annual During the year, The Company has created Debenture Redemption Reserve (DRR) in accordance with IRDA circular no. ,5'$) $2)&IRU5VWKRXVDQGVRXWRIZKLFK` WKRXVDQGSHUWDLQLQJWR)< 20. MAT credit entitlement amounting to Rs 972,920 thousand (Previous year ` 550,781 thousand) has been recognised DVRQEDODQFHVKHHWGDWHDVDQDVVHWEDVHGRQWKHIXWXUHHFRQRPLFEHQH¿WVDVVRFLDWHGZLWKLWWKDWZLOOÀRZWRWKH Company. 21. /HDVHV ,QUHVSHFWRISUHPLVHVWDNHQRQRSHUDWLQJOHDVHWKHOHDVHDJUHHPHQWVDUHJHQHUDOO\PXWXDOO\UHQHZDEOHFDQFHOODEOH E\WKHOHVVRUOHVVHHH[FHSWIRUVRPHSUHPLVHV 1RQ&DQFHOODEOH2SHUDWLQJ/HDVH 7KHWRWDORIIXWXUHPLQLPXPOHDVHUHQWSD\DEOHXQGHURSHUDWLQJOHDVHIRUSUHPLVHV DVVHWVIRUHDFKRIWKHIROORZLQJ SHULRGV `LQ¶ Particulars For the Year ended For the Year ended March 31, 2018 March 31, 2017 Not later than one year 27,485 25,304 /DWHUWKDQRQH\HDUDQGQRWODWHUWKDQ¿YH\HDUV 45,118 6,634 /DWHUWKDQ¿YH\HDUV 9,715 /HDVHSD\PHQWGHELWHGWRWKH5HYHQXHDFFRXQWGXULQJWKH\HDU5V WKRXVDQGV 3UHYLRXV\HDU5V thousands). 22. 6HFWRUZLVHEXVLQHVVEDVHGRQ*URVV'LUHFW3UHPLXP *'3 Particulars For the Year ended For the Year ended March 31, 2018 March 31, 2017 GDP RI*'3 GDP RI*'3 `LQµ `LQµ Rural 13,385,254 12,525,670 31.83 Urban 37,305,533 73.59 26,827,825 68.17 Total 100.00 39,353,495 100.00 Particulars For the Year ended For the Year ended March 31, 2018 March 31, 2017 GDP 1RRIOLYHV GDP 1RRIOLYHV `LQµ `LQµ Social Sector 11,828,043 2,445,533 114,418 2,049,837 74 Annual Report 2017 - 2018 23. ([WHQWRIULVNUHWDLQHGDQGUHLQVXUHGLVVHWRXWEHORZ H[FOXGLQJH[FHVVRIORVVDQGFDWDVWURSKHUHLQVXUDQFH For the Year ended For the Year ended March 31, 2018 March 31, 2017 Particulars RIEXVLQHVV RIEXVLQHVV ZULWWHQ ZULWWHQ 5LVN5HWDLQHG 58% 5LVN5HLQVXUHG 37% 42% 24. 0DQDJHULDO5HPXQHUDWLRQ `LQ¶ Particulars For the Year ended For the Year ended March 31, 2018 March 31, 2017 Salaries 42,174 37,697 Contribution to Provident Fund and Superannuation 3,375 3,037 3URYLVLRQIRU*UDWXLW\DQG/HDYH(QFDVKPHQW 1,851 1,666 7KHPDQDJHULDOUHPXQHUDWLRQLVLQDFFRUGDQFHZLWKWKHDSSURYDODFFRUGHGE\DUHVROXWLRQRIWKH%RDUGRI'LUHFWRUV which has been approved by IRDAI as required under Section 34A of the Insurance Act, 1938. 7KHPDQDJHULDOUHPXQHUDWLRQLQH[FHVVRI5VWKRXVDQGVIRUHDFKPDQDJHULDOSHUVRQQHOKDVEHHQFKDUJHGWR 3UR¿W /RVV$FFRXQW 25. %DVLVXVHGIRUGHWHUPLQLQJ,%15,%1(5 DQG9DOXDWLRQRI/LDELOLWLHVDVDW0DUFK 7KHOLDELOLW\IRU,%15DQG,%1(5DVDWst March, 2018 has been estimated by Appointed Actuary in consultation with Mentor to the ApSRLQWHG$FWXDU\DVSHUWKH,5'$FLUFXODUQR,5'$$&7/,%15GDWHGth June, 2005 DQG,QVXUDQFH5HJXODWRU\DQG'HYHORSPHQW$XWKRULW\RI,QGLD $VVHWV/LDELOLWLHVDQG6ROYHQF\0DUJLQRI*HQHUDO ,QVXUDQFH%XVLQHVV 5HJXODWLRQV )RUDOOOLQHVRIEXVLQHVVWKHHVWLPDWLRQZDVFDUULHGRXWXVLQJSDVWWUHQGVLQWKHFODLPVH[SHULHQFHDVLQGLFDWHGE\SDLG claims chain ladder and incurred claims chain ladder approach. %RUQKXHWWHU ± )HUJXVRQ PHWKRG RI HVWLPDWLRQ ZDV DOVR DSSOLHG IRU VRPH OLQHV DV FRQVLGHUHG DSSURSULDWH E\ WKH Appointed Actuary in consultation with Mentor to the Appointed Actuary. There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the Company for the year ended March 31, 2018. 27. $VSHU,5'$,&LUFXODU1R,5'$) $&,50$< GDWHG0D\ EHORZWDEOHPHQWLRQVWKHGHWDLOVRIWKH penalty imposed by various regulators and Government authorities as on 31st March, 2018. `LQ¶ SI $XWKRULW\ 1RQ&RPSOLDQFH9LRODWLRQ 3HQDOW\ 3HQDOW\ 3HQDOW\ No. $ZDUGHG Paid :DLYHG Reduced 1 Insurance Regulatory and Nil Nil Nil Development Authority of India None (Nil) (Nil) (Nil) 2 6HUYLFH7D[$XWKRULWLHV*67 3HQDOW\ IRU H[FHVV &HQYDW &UHGLW 3,817 3,817 Nil Authorities XWLOLVDWLRQXQGHUVHUYLFHWD[ (Nil) (Nil) (Nil) 3 ,QFRPH7D[$XWKRULWLHV None Nil Nil Nil (Nil) (Nil) (Nil) 4 $Q\RWKHU7D[$XWKRULWLHV None Nil Nil Nil (Nil) (Nil) (Nil) 5 (QIRUFHPHQW'LUHFWRUDWH None Nil Nil Nil $GMXGLFDWLQJ$XWKRULW\7ULEXQDORU (Nil) (Nil) (Nil) any Authority under FEMA 75 Reliance General Insurance Company Limited SI $XWKRULW\ 1RQ&RPSOLDQFH9LRODWLRQ 3HQDOW\ 3HQDOW\ 3HQDOW\ No. $ZDUGHG Paid :DLYHG Reduced 6 5HJLVWUDURI&RPSDQLHV1&/7 None Nil Nil Nil &/%'HSDUWPHQWRI&RUSRUDWH (Nil) (Nil) (Nil) $ႇDLUVRUDQ\$XWKRULW\XQGHU &RPSDQLHV$FW 7 3HQDOW\DZDUGHGE\DQ\&RXUW None Nil Nil Nil Tribunal for any matter including (Nil) (Nil) (Nil) FODLPVHWWOHPHQWEXWH[FOXGLQJ compensation 8 6HFXULWLHVDQG([FKDQJH%RDUG None Nil Nil Nil of India (Nil) (Nil) (Nil) 9 Competition Commission of India None Nil Nil Nil (Nil) (Nil) (Nil) 10 $Q\RWKHU&HQWUDO6WDWH/RFDO None Nil Nil Nil *RYHUQPHQW6WDWXWRU\$XWKRULW\ (Nil) (Nil) (Nil) 3UHYLRXV\HDU¿JXUHVDUHLQEUDFNHWV 28. $VSHU,5'$,0DVWHU&LUFXODURQ8QFODLPHGDPRXQWRISROLF\KROGHUVUHIHUHQFHQR,5'$) $&,50LVF dated 25th-XO\EHORZWDEOHPHQWLRQWKHDJHZLVHDQDO\VLVRIXQFODLPHGDPRXQWRIWKHSROLF\KROGHUVDVRQst March, 2018. `LQµ Total 7-12 13-18 19-24 25-30 Particulars PRQWKV $PRXQW PRQWKV PRQWKV PRQWKV PRQWKV PRQWKV PRQWKV a) Claim Settled but not paid Nil Nil Nil Nil Nil Nil Nil Nil WR WKH SROLF\ KROGHUV (142) (142) (Nil) (Nil) (Nil) (Nil) (Nil) (Nil) EHQH¿FLDULHV GXH WR DQ\ UHDVRQH[FHSWXQGHUOLWLJDWLRQ IURP WKH SROLF\KROGHUV EHQH¿FLDULHV E VXP GXHSD\DEOH WR WKH Nil Nil Nil Nil Nil Nil Nil Nil SROLF\KROGHUEHQH¿FLDULHV RQ (Nil) (Nil) (Nil) (Nil) (Nil) (Nil) (Nil) (Nil) maturity or otherwise. F $Q\ H[FHVV FROOHFWLRQ RI 93,707 39,396 3,496 3,515 3,954 2,791 2,255 38,300 SUHPLXPWD[ RU DQ\ RWKHU (53,764) (3,667) (3,619) (3,844) (2,714) (2,200) (2,667) (35,053) charges which is refundable WR WKH SROLF\KROGHUV EHQH¿FLDULHV HLWKHU DV SHU the terms of the conditions RI WKH SROLF\ RU DV SHU /DZ or as may be directed by the authority but not refunded so far.# d) Cheques issued but 650,940 102,917 60,861 55,697 26,689 157,364 16,683 230,729 not encashed by the (666,947) (101,414) (95,314) (38,434) (157,536) (17,450) (16,777) (240,022) SROLF\KROGHUEHQH¿FLDULHV 3UHYLRXV\HDU¿JXUHVDUHLQEUDFNHWV ,QWHUHVW$FFUXHGRQ8QFODLPHGDPRXQWLVDOORFDWHGSURSRUWLRQDWHO\XQGHUUHVSHFWLYHDERYHPHQWLRQHGSDUWLFXODUV 76 Annual Report 2017 - 2018 )XUWKHU DV SHU WKH &LUFXODU 1R ,5'$) $&,50LVF GDWHG -XO\ th, 2017, the details of unclaimed DPRXQWVDQGLQYHVWPHQWLQFRPHWKHUHRQDUHDVIROORZV `LQ¶ Particulars For the Year ended For the Year ended March 31st, 2018 March 31st, 2017 2SHQLQJ%DODQFH 720,853 504,680 $GG $PRXQW7UDQVIHUUHGWR8QFODLPHGDPRXQW 419,788 390,446 $GG &KHTXHVLVVXHGRXWRIWKH8QFODLPHGDPRXQWEXWQRWHQFDVKHGE\ 4,646 1,697 the policyholders (To be included only when the cheques are stale) $GG ,QYHVWPHQW,QFRPH 28,196 33,164 /HVV $PRXQWSDLGGXULQJWKH\HDU 415,737 209,134 /HVV DPRXQWWUDQVIHUUHGWR6&:) QHWRIFODLPSDLGLQUHVSHFWRI 13,099 amount transferred earlier) Closing balance of Unclaimed amount 744,647 720,853 29. $VSHUWKHUHTXLUHPHQWRI$FFRXQWLQJ6WDQGDUGµ5HODWHG3DUW\'LVFORVXUHV¶DVQRWL¿HGE\WKH&RPSDQLHV $FFRXQWLQJ Standard) Rules, 2006 the following are the list of related parties with the relationship. /LVWRIUHODWHGSDUWLHV +ROGLQJ&RPSDQ\ 5HOLDQFH&DSLWDO/LPLWHG 6XEVLGLDU\RI+ROGLQJ&RPSDQ\ 1 5HOLDQFH1LSSRQ/LIH,QVXUDQFH&RPSDQ\/LPLWHG IRUPHUO\5HOLDQFH/LIH,QVXUDQFH&RPSDQ\/LPLWHG ZHI March 30, 2016) 2 5HOLDQFH&DSLWDO3HQVLRQ)XQG/LPLWHG 3 5HOLDQFH&DSLWDO7UXVWHH&R/LPLWHG 4 5HOLDQFH1LSSRQ/LIH$VVHW0DQDJHPHQW/LPLWHG IRUPHUO\5HOLDQFH&DSLWDO$VVHW0DQDJHPHQW/LPLWHG (ceased w.e.f. from July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eliance General Insurance Company Limited /LVWRIRWKHUUHODWHGSDUWLHVXQGHUFRPPRQFRQWUROZLWKZKRPWUDQVDFWLRQKDYHWDNHQSODFHGXULQJWKH\HDU 21 5HOLDQFH,QIUDWHO/LPLWHG FHDVHGWREHZHIth October, 2017) 22 5HOLDQFH&RPPXQLFDWLRQV/LPLWHG FHDVHGWREHZHIth October, 2017) 23 5HOLDQFH,QIRFRPP,QIUDVWUXFWXUH/LPLWHG FHDVHGWREHZHIth October, 2017) 24 %LJ$QLPDWLRQ ,QGLD 3ULYDWH/LPLWHG FHDVHGWREHZHIth October, 2017) 25 =DSDN'LJLWDO(QWHUWDLQPHQW/LPLWHG FHDVHGWREHZHIth October, 2017) 26 5HOLDQFH7HOHFRP/LPLWHG FHDVHGWREHZHIth October, 2017) 27 5HOLDQFH,'&/LPLWHG FHDVHGWREHZHIth October, 2017) 3HUVRQKDYLQJFRQWURO 28 Mr. Anil D. Ambani (ceased to be w.e.f. 4th October, 2017) .H\PDQDJHULDOSHUVRQQHO 29 0U5DNHVK-DLQ (' &(2 $VFHUWL¿HGE\WKHPDQDJHPHQW 7UDQVDFWLRQVGXULQJWKH\HDUZLWKUHODWHGSDUWLHV `LQ¶ S. 1DPHRIWKH5HODWHG3DUW\ Relationship 1DWXUHRIWUDQVDFWLRQ For the For the No. Period ended Period ended 31st March, 31st March, 2018 2017 1 5HOLDQFH&DSLWDO/LPLWHG +ROGLQJ Premium Received (net of refund) 79,522 Company Claim Paid 300 328 Equity Share Capital - 900,000 Redemption of debentures 5HLPEXUVHPHQWSDLGIRUH[SHQVHV 225 49,638 (Rent,Communication,Electricity,Profe ssional fees,Maintenance Charges) Management fees paid 60,000 Dividend paid Reimbursement paid for IT services 38,335 42,195 Reimbursement received for - 6,681 H[SHQVHV 5HQW&RPPXQLFDWLRQ(OHFWU LFLW\FDQWHHQH[SHQVHV Interest Accrual on Debenture 202,870 236,986 Outstanding balance in Customer 2,710 3,324 Deposit Account Creditors 2,303 2,417 2 5HOLDQFH1LSSRQ/LIH$VVHW Fellow Premium Received (net of refund) 25,577 22,595 0DQDJHPHQW/LPLWHG Subsidiary Claim Paid - 4 IRUPHUO\5HOLDQFH&DSLWDO Reimbursement received for 113 742 $VVHW0DQDJHPHQW/LPLWHG H[SHQVHV 5HQW&RPPXQLFDWLRQ(OHFWU FHDVHGZHI LFLW\FDQWHHQH[SHQVHV Outstanding balance in Customer - 1,445 Deposit Account Debtors - 73 78 Annual Report 2017 - 2018 `LQ¶ S. 1DPHRIWKH5HODWHG3DUW\ Relationship 1DWXUHRIWUDQVDFWLRQ For the For the No. Period ended Period ended 31st March, 31st March, 2018 2017 3 5HOLDQFH+RPH)LQDQFH Fellow Premium Received (net of refund) 18,130 10,441 /LPLWHG Subsidiary Interest Accrual on Debenture 48,523 8,033 Outstanding balance in Customer 5,021 Deposit Account 4 5HOLDQFH6HFXULWLHV/LPLWHG Fellow Premium Received (net of refund) 18,188 12,524 Subsidiary Commission paid 4,292 2,768 %URNHUDJHSDLGIRUVWRFNH[FKDQJH 98 141 trading 5HLPEXUVHPHQWUHFHLYHGIRUH[SHQVH - 186 s(Rent,Communication,Electricity,cant HHQH[SHQVHV Outstanding balance in Customer 187 45 Deposit Account Debtors 41 5 Reliance Corporate Fellow Outstanding balance in Customer - 22 $GYLVRU\6HUYLFHV Subsidiary Deposit Account /LPLWHG IRUPHUO\ 5HOLDQFH6SRW([FKDQJH ,QIUDVWUXFWXUH/LPLWHG 6 5HOLDQFH1LSSRQ/LIH Fellow Premium Received (net of refund) 79,282 75,583 ,QVXUDQFH&RPSDQ\ Subsidiary Group Term Insurance Paid 8,332 7,745 /LPLWHG IRUPHUO\5HOLDQFH 5HLPEXUVHPHQWUHFHLYHGIRUH[SHQVH - 559 /LIH,QVXUDQFH&RPSDQ\ s(Rent,Communication,Electricity,cant /LPLWHG HHQH[SHQVHV Reimbursement Received for - 1,500 Membership Fees Transaction of purchase of Security Claim Paid 1,577 Debtors 906 Outstanding balance in Customer 24,404 30,388 Deposit Account 7 5HOLDQFH:HDOWK Fellow Premium Received (net of refund) 877 0DQDJHPHQW/LPLWHG Subsidiary Outstanding balance in Customer 9 2 Deposit Account 8 5HOLDQFH0RQH\6ROXWLRQV Fellow Premium Received (net of refund) 179 191 3ULYDWH/LPLWHG Subsidiary Outstanding balance in Customer 90 59 Deposit Account ,QVXUDQFH&RPPLVVLRQ([SHQVH - 33 Debtors 1 9 5HOLDQFH&RPPRGLWLHV Fellow Premium Received (net of refund) 982 873 /LPLWHG Subsidiary Outstanding balance in Customer 37 12 Deposit Account 10 5HOLDQFH0RQH\3UHFLRXV Fellow Premium Received (net of refund) - 7 0HWDOV3ULYDWH/LPLWHG Subsidiary Outstanding balance in Customer - Deposit Account 11 5HOLDQFH)LQDQFLDO/LPLWHG Fellow Premium Received (net of refund) 370 317 Subsidiary Outstanding balance in Customer 54 11 Deposit Account 79 Reliance General Insurance Company Limited `LQ¶ S. 1DPHRIWKH5HODWHG3DUW\ Relationship 1DWXUHRIWUDQVDFWLRQ For the For the No. Period ended Period ended 31st March, 31st March, 2018 2017 12 Reliance Capital Pension Fellow Premium Received (net of refund) 105 49 )XQG/LPLWHG Subsidiary Outstanding balance in Customer 23 Deposit Account 13 5HOLDQFH&RPPHUFLDO Fellow Premium Received (net of refund) 17,149 353 )LQDQFH/LPLWHG IRUPHUO\ Subsidiary Claim Paid 5HOLDQFH*LOWV/LPLWHG 14 Reliance Capital Trustee Fellow Premium Received (net of refund) 7,500 8,990 &R/LPLWHG Subsidiary 15 5HOLDQFH+HDOWK,QVXUDQFH Fellow Premium Received (net of refund) &RPSDQ\/LPLWHG Subsidiary Reimbursement received for H[SHQVHV 6DODU\2SH[ 6DOHRI¿[HGDVVHWV 1,047 Outstanding balance in Customer 289 Deposit Account 16 5HOLDQFH,QIUDWHO/LPLWHG Common Premium Received (net of refund) 5 11 FHDVHGZHI Control 17 5HOLDQFH&RPPXQLFDWLRQV Common Premium Received (net of refund) 357 6,293 /LPLWHG 5&20 FHDVHG Control Claim Paid - 246 ZHI 5HLPEXUVHPHQWSDLGIRUH[SHQVHV 4,305 22,458 5HQW,QWHUQHW 7HOHSKRQH ([SHQVHV Outstanding balance in Customer - 992 Deposit Account 18 5HOLDQFH,QIRFRPP Common Premium Received (net of refund) - 23 ,QIUDVWUXFWXUH/LPLWHG Control 5HLPEXUVHPHQWSDLGIRUH[SHQVHV 3,123 12,264 FHDVHGZHI (Rent, Communication, Electricity, Professional fees, Maintenance Charges) 19 %LJ$QLPDWLRQ ,QGLD Common Control Premium Received (net of refund) 32 219 3ULYDWH/LPLWHG FHDVHG WREHUHDOWHGSDUW\ZHI 20 =DSDN'LJLWDO(QWHUWDLQPHQW Common Premium Received (net of refund) 178 210 /LPLWHG FHDVHGZHI Control 5HLPEXUVHPHQWSDLGIRUH[SHQVHV 385 1,007 2QOLQH5HSXWDWLRQ([SHQVHV Outstanding balance in Customer - 205 Deposit Account 21 5HOLDQFH7HOHFRP/LPLWHG Common Control 5HLPEXUVHPHQWSDLGIRUH[SHQVHV - 1 FHDVHGZHI 7HOHSKRQH([SHQVHV Outstanding balance in Customer - 795 Deposit Account 22 5HOLDQFH&RPPXQLFDWLRQV Common Control 5HLPEXUVHPHQWSDLGIRUH[SHQVHV 18,368 ,QIUDVWUXFWXUH/LPLWHG (Rent, Communication, Electricity, FHDVHGZHI Professional fees, Maintenance Charges) Debtors - 20 23 5HOLDQFH,'&/LPLWHG Common Payment for IDC Charges 3,928 9,299 FHDVHGZHI Control Creditors - 151 80 Annual Report 2017 - 2018 `LQ¶ S. 1DPHRIWKH5HODWHG3DUW\ Relationship 1DWXUHRIWUDQVDFWLRQ For the For the No. Period ended Period ended 31st March, 31st March, 2018 2017 24 5HOLDQFH%LJ(QWHUWDLQPHQW Common Premium Received (net of refund) 163 3ULYDWH/LPLWHG FHDVHGZHI Control 25 Reliance Innoventures Common Premium Received (net of refund) 1,844 3ULYDWH/LPLWHG 5,3/ Control FHDVHGZHI 26 &DPSLRQ3URSHUWLHV Common Premium Received (net of refund) 19 /LPLWHG FHDVHGZHI Control 27 =DSDN0RELOH*DPHV Common Premium Received (net of refund) 77 3ULYDWH/LPLWHG FHDVHGZHI Control 28 5HOLDQFH$,)0DQDJHPHQW Fellow Premium Received (net of refund) 28 &RPSDQ\/LPLWHG Subsidiary 29 0U5DNHVK-DLQ Key Managerial Remuneration 47,400 42,400 Personnel Premium Received (net of refund) 54 (includes relatives of .03 V 30 0U$QLO'$PEDQL Person having Premium Received (net of refund) 187 18 Control D ([SHQVHV LQFXUUHG WRZDUGV SXEOLF XWLOLWLHV VHUYLFHV VXFK DV WHOHSKRQH DQG HOHFWULFLW\ FKDUJHV KDYH QRW EHHQ considered for related party transaction. b) Claim paid to employees against Group Medical Policies and Group Personal Accident Policies have not been considered for related party transaction. F 7UDQVDFWLRQDPRXQWFRQVLGHUDERYHDUHH[FOXGLQJWD[HV 30. 6HJPHQW,QIRUPDWLRQIRUWKH\HDUHQGHGRQst March 2018 D 5HYHQXHDQGH[SHQVHVKDYHEHHQLGHQWL¿HGWRDVHJPHQWRQWKHEDVLVRIUHODWLRQVKLSWRWKHRSHUDWLQJDFWLYLWLHV RIWKHVHJPHQW5HYHQXHDQGH[SHQVHVZKLFKUHODWHWRHQWHUSULVHDVDZKROHDQGDUHQRWDOORFDEOHWRDVHJPHQW RQUHDVRQDEOHEDVLVKDYHEHHQGLVFORVHGDV³8QDOORFDEOH´ E 6HJPHQWDVVHWVDQGVHJPHQWOLDELOLWLHVUHSUHVHQWDVVHWVDQGOLDELOLWLHVLQUHVSHFWLYHVHJPHQWV,QYHVWPHQWVWD[ related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have EHHQGLVFORVHGDV³8QDOORFDEOH´ `LQ¶ Particulars Fire Marine 0DULQH+XOO Motor -OD Motor -TP Motor (PSOR\HU Public &DUJR /LDELOLW\ /LDELOLW\ 6HJPHQW5HYHQXHV Earned Premium 768,401 53,596 544 8,429,479 8,925,737 17,355,216 90,213 88,544 632,678 176,624 573 6,911,851 7,592,925 14,504,776 89,575 73,470 Investment income 167,924 21,248 310 523,580 3,862,007 4,385,587 17,373 15,910 142,196 37,581 151 521,205 3,915,732 4,436,937 13,813 13,164 81 Reliance General Insurance Company Limited `LQ¶ Particulars Fire Marine 0DULQH+XOO Motor -OD Motor -TP Motor (PSOR\HU Public &DUJR /LDELOLW\ /LDELOLW\ Misc Income 50 (31) (14) 2,229 2,229 (835) (128) 139 130 2,127 2,127 1,742 Total 936,375 74,813 840 8,955,288 12,787,744 21,743,032 107,586 103,619 774,746 214,344 854 7,435,183 11,508,657 18,943,840 103,388 88,376 6HJPHQW([SHQVHV Claims 471,531 58,319 4,464 4,983,030 9,155,655 14,138,685 78,122 49,547 677,042 184,398 (369) 3,802,202 9,454,243 13,256,445 100,327 49,251 Commission (41,670) (41,616) 1,027 865,699 (123,570) 742,129 10,660 8,740 (256,036) (37,248) 3,880 (87,836) (98,748) (186,584) 7,467 (1,191) 3UHPLXP'H¿FLHQF\ (25,791) 0DQDJHPHQW([SHQVHV 332,422 14,832 896 2,716,249 2,953,935 5,670,184 26,093 27,962 310,195 17,795 476 2,629,903 2,811,778 5,441,681 30,683 28,592 Total 776,745 32,189 6,400 8,679,525 12,110,590 20,779,115 116,059 87,494 731,201 1,39,154 3,987 6,344,269 12,167,273 18,511,542 138,477 76,652 1HW3UR¿WORVV 159,630 42,624 (5,560) 275,763 677,154 952,917 (8,473) 16,125 43,545 75,190 (3,133) 1,090,913 (658,615) 432,298 (35,089) 11,724 8QDOORFDWHGLWHPV Investment income 3URYLVLRQ 2WKHULQFRPH ([SHQVHV 1HW3UR¿WEHIRUHWD[ ,QFRPHWD[ MAT Credit 1HWSUR¿WDIWHUWD[ $VVHWV Segment Assets 82 Annual Report 2017 - 2018 `LQ¶ Particulars Fire Marine 0DULQH+XOO Motor -OD Motor -TP Motor (PSOR\HU Public &DUJR /LDELOLW\ /LDELOLW\ 8QDOORFDWHG$VVHWV 3ROLF\KROGHU)XQG Shareholders Fund Total /LDELOLWLHV 6HJPHQW/LDELOLWLHV 2,031,714 209,032 5,619 6,493,753 45,048,912 51,542,664 214,054 195,640 1,581,608 251,895 1,056 5,006,412 38,452,608 43,459,019 161,630 147,295 8QDOORFDWHG/LDELOLWLHV 3ROLF\KROGHU)XQG Shareholders Fund Total `LQ¶ Particulars (QJLQHHULQJ $YLDWLRQ Personal +HDOWK :HDWKHU Other Total $FFLGHQW and Crop Miscellaneous Enterprise Insurance 6HJPHQW5HYHQXHV Earned Premium 202,518 1,184 300,932 6,410,643 2,992,568 292,248 28,556,607 187,244 1,114 333,685 2,999,417 1,682,808 207,524 20,889,488 Investment income 27,100 281 48,151 262,082 177,994 41,470 5,165,430 32,376 316 50,826 256,583 80,622 46,436 5,111,001 Misc Income 25 (162) 209 18 5,405 6,894 34 (140) 2 1,622 5,527 Total 229,643 1,303 349,292 6,672,743 3,170,562 3,39,123 33,728,931 219,654 1,290 384,511 3,256,000 1,763,431 2,55,582 26,006,017 6HJPHQW([SHQVHV Claims 133,514 190 2,72,107 6,878,726 2,059,638 46,522 24,191,365 65,325 105 547,525 2,735,375 1,583,401 68,372 19,267,197 Commission 22,881 (3,171) 24,783 (242,472) (1,074,492) 17,469 (575,732) (13,663) (2,570) 20,355 151,209 (1,386,259) 9,804 (1,690,836) 3UHPLXP'H¿FLHQF\ (25,791) 83 Reliance General Insurance Company Limited `LQ¶ Particulars (QJLQHHULQJ $YLDWLRQ Personal +HDOWK :HDWKHU Other Total $FFLGHQW and Crop Miscellaneous Enterprise Insurance 0DQDJHPHQW([SHQVHV 67,722 363 72,643 1,229,100 1,111,446 83,597 8,893,935 72,664 526 95,779 922,784 931,847 88,013 7,941,035 Total 224,117 (2,618) 369,533 7,865,354 2,096,592 147,588 32,509,568 124,326 (1,939) 663,659 3,809,368 1,128,988 166,190 25,491,605 1HW3UR¿WORVV 5,526 3,921 (20,241) (1,192,611) 1,073,970 191,535 1,219,363 95,328 3,229 (279,148) (553,368) 634,443 89,392 514,411 8QDOORFDWHGLWHPV Investment income 875,346 992,488 3URYLVLRQ 2WKHU income) (20,959) (9,622) ([SHQVHV 465,633 213,087 1HW3UR¿WEHIRUHWD[ 1,650,035 1,303,435 ,QFRPHWD[ 422,139 288,735 MAT Credit (422,139) (288,735) 1HWSUR¿WDIWHUWD[ 1,650,035 1,303,435 $VVHWV Segment Assets Nil Nil 8QDOORFDWHG$VVHWV 3ROLF\KROGHU)XQG 73,277,598 59,073,619 Shareholders Fund 20,195,021 17,652,044 Total 93,472,619 76,725,663 /LDELOLWLHV 6HJPHQW/LDELOLWLHV 301,316 3,058 625,084 3,509,105 2,589,689 440,099 61,667,075 283,817 2,984 588,738 2,239,360 1,245,931 454,014 50,417,348 84 Annual Report 2017 - 2018 `LQ¶ Particulars (QJLQHHULQJ $YLDWLRQ Personal +HDOWK :HDWKHU Other Total $FFLGHQW and Crop Miscellaneous Enterprise Insurance 8QDOORFDWHG/LDELOLWLHV 3ROLF\KROGHU)XQG 11,634,983 8,315,183 Shareholders Fund 20,170,561 17,993,132 Total 93,472,619 76,725,663 1RWHV D 6HJPHQW5HSRUWLQJLVPDGHDVSHUWKHPRGL¿FDWLRQSUHVFULEHGE\WKH,QVXUDQFH5HJXODWRU\DQG'HYHORSPHQW $XWKRULW\ RI ,QGLD 5HJXODWLRQV ZKHUHLQ GHWDLOV DUH WR EH JLYHQ IRU ¿UH PDULQH FDUJR PDULQH KXOO DQG WHQ classes of miscellaneous insurance. E 6LQFHWKHFRPSDQ\¶VHQWLUHEXVLQHVVLVFRQGXFWHGZLWKLQ,QGLDWKHUHDUHQRUHSRUWDEOHJHRJUDSKLFDOVHJPHQWV for the Year ended. 31. 6XPPDU\RI)LQDQFLDO5HVXOWV `LQ¶ Particulars FY 2017-18 )< )< FY 2014-15 FY 2013-14 2SHUDWLQJ5HVXOWV Gross Direct Premiums 50,690,787 39,353,496 27,915,636 27,158,321 23,888,249 Net Earned Premium 28,556,607 20,889,488 19,993,990 19,184,624 17,397,581 Income From Investment 5,165,431 5,111,001 4,187,922 4,080,149 3,387,475 Other Income 6,895 5,527 13,680 14,505 (8,720) Total Income 33,728,932 26,006,016 24,195,593 23,279,278 20,776,336 Commission (Net) including (575,732) (1,690,836) (250,385) (207,204) 396,363 %URNHUDJH 2SHUDWLQJ([SHQVHV 8,893,935 7,941,035 6,543,223 53,76,745 4,598,337 Net Incurred Claims (Including 24,191,365 19,241,407 17,900,931 18,043,042 16,015,320 3UHPLXP'H¿FLHQF\5HVHUYH &KDQJHLQXQH[SLUHGULVNUHVHUYH (3,078,852) (1,423,980) 216,357 (100,941) 1,232,033 2SHUDWLQJ3UR¿W /RVV 1,219,364 514,411 1,824 66,695 (233,684) 1RQ2SHUDWLQJ5HVXOWV Total Income under 896,305 1,002,110 1,053,613 1,001,226 932,389 6KDUHKROGHU¶V$FFRXQW 3UR¿W /RVV EHIRUHWD[ 1,650,033 1,303,436 990,820 813,901 640,827 3URYLVLRQIRUWD[ &XUUHQW7D[ LQFOXGLQJHDUOLHU 422,139 288,735 227,346 34,700 \HDUWD[ 'HIHUUHG7D[ MAT Credit (422,139) (288,735) (227,346) (34,700) 3UR¿W /RVV DIWHUWD[ 1,650,033 1,303,436 990,820 813,901 640,827 Miscellaneous 3ROLF\KROGHUV¶$FFRXQW Total Funds 68,397,795 56,308,306 42,779,909 40,286,049 29,943,368 Total Investments 68,397,795 56,308,306 42,779,909 40,286,049 29,943,368 Yield on Investments 8% 8% 9% 11% 9% 85 Reliance General Insurance Company Limited `LQ¶ Particulars FY 2017-18 )< )< FY 2014-15 FY 2013-14 6KDUHKROGHUV¶$FFRXQW Total Funds 11,590,846 10,934,351 11,033,823 10,197,214 8,483,787 Total Investments 11,590,846 10,934,351 11,033,823 10,197,214 8,483,787 Yield on Investments 8% 8% 9% 11% 9% Paid up Equity Capital 2,515,499 1,257,750 1,227,750 1,227,750 1,227,750 Net Worth* 14,051,148 12,476,805 11,173,370 10,182,550 8,476,832 Total Assets 93,472,619 76,725,663 62,930,486 56,628,581 48,878,896 Yield on total Investments 8% 8% 9% 11% 9% %DVLF(DUQLQJV3HU6KDUH `) 6.56 5.18 4.04 3.32 2.61 %RRN9DOXH3HU6KDUH `) 55.86 49.97 44.94 41.53 34.55 7RWDO 'LYLGHQG H[FOXGLQJ 62,887 GLYLGHQGWD[ Dividend Per Share (`) 0.50 1HW :RUWK 6KDUH &DSLWDO 5HVHUYH 6XUSOXV 6KDUH $SSOLFDWLRQ 0RQH\ 3HQGLQJ IRU DOORWPHQW 0LVFHOODQHRXV([SHQGLWXUH'HELW%DODQFHLQ3UR¿WDQG/RVV$FFRXQW 32. )LQDQFLDO5DWLRV Class FY Gross Direct Net Retention 1HW&RPPLVVLRQ 8QGHUZULWLQJ 3UHPLXP Ratio Ratio Balance Ratio *URZWK5DWH Fire 22% 29% 15% 23% 0.16 Marine Cargo 26% 10% 7% 11% 0.21 0DULQH+XOO 103% 1% 99% 1% 478% Motor OD 26% 79% 9% 20% 79% 0.08 Motor TP 27% 80% 17% 80% Motor Total 27% 79% 3.8% 18% 79% (PSOR\HU/LDELOLW\ 9% 95% 11% 0% 95% 8% 3XEOLF/LDELOLW\ 28% 9% 0.00 17% 21% Engineering 28% 31% 10% 2% 34% 0.34 Aviation 23% 1% 3.07 20% 2% 2.62 Personal Accident 103% 8% 33% 90% 6% +HDOWK 127% 85% 93% 5% Other Miscellaneous 78% 6% 0.51 5% 55% 4% 0.21 Weather and Crop 8% 26% 0.30 867% 15% 0.33 Total 29% 62% 41% 56% 86 Annual Report 2017 - 2018 33. ,VVXHRI%RQXV6KDUHV 7KH%RDUGRI'LUHFWRUVDWWKHPHHWLQJKHOGRQ$XJXVWth, 2017 recommended issue of bonus shares, in the proportion RI LH ERQXV HTXLW\ VKDUH RI 5V HDFK IRU HYHU\ IXOO\ SDLGXS HTXLW\ VKDUHV ZKLFK LV DSSURYHG E\ WKH shareholder on August 10th, 2017 . The record date for issue of bonus shares was August 10th, 2017. Accordingly weighted average number of shares have been change for Earning Per Share (EPS) computation. 34. (DUQLQJVSHUVKDUHLQIRUPDWLRQ Particulars For the Year ended For the Year ended March 31, 2018 March 31, 2017 3UR¿W /RVV DYDLODEOHWRHTXLW\VKDUHKROGHUV ` in ‘000) 1,303,435 Weighted Average number of equity shares outstanding during the year 251,549,920 251,549,920 %DVLF(DUQLQJ3HU6KDUH `) 5.18 Diluted Earning Per Share (`) 5.18 35. 2WKHU5DWLRV Ratio Basis For the Year ended For the Year ended March 31, 2018 March 31, 2017 Gross Direct Gross direct premium for current year divided by 3.15 Premium to Net Net Worth worth Ratio Growth Rate of Net Change in Net Worth during the year divided by 13% 12% worth net worth as at previous balance sheet date ([SHQVHVRI ([SHQVHV RI 0DQDJHPHQW RSHUDWLQJ H[SHQVHV 23% 23% Management related to insurance business plus direct to Gross Direct commission paid divided by gross direct Premium premium) ([SHQVHVRI ([SHQVHV RI 0DQDJHPHQW RSHUDWLQJ H[SHQVHV 41% Management to Net related to insurance business plus direct written premium ratio commission paid divided by Net written premium) Net Incurred Claims Net Incurred Claims divided by Net Earned 85% 92% to Net Earned Premium Premium Combined Ratio Net Incurred Claims divided by Net Earned 111% 120% 3UHPLXP SOXV H[SHQVHV RI PDQDJHPHQW (including net commission) divided by Net written premium Technical Reserves 5HVHUYH IRU XQH[SLUHG ULVNV SOXV SUHPLXP 1.93 2.25 to Net Premium GH¿FLHQF\ UHVHUYH SOXV UHVHUYH IRU RXWVWDQGLQJ Ratio FODLPV LQFOXGLQJ ,%15 DQG ,%1(5 GLYLGHG E\ net premium 2SHUDWLQJ3UR¿W 8QGHUZULWLQJSUR¿WORVVGLYLGHGE\QHWSUHPLXP 4% 2% Ratio /LTXLG$VVHWVWR /LTXLG DVVHWV VKRUW WHUP LQYHVWPHQW SOXV VKRUW 0.33 0.31 /LDELOLWLHV5DWLR WHUP ORDQ SOXV FDVK DQG EDQN EDODQFHV RI WKH (times) insurer) divided by policyholders liabilities(claims RXWVWDQGLQJSOXVUHVHUYHIRUXQH[SLUHGULVNDQG SUHPLXPGH¿FLHQF\ Net Earnings Ratio 3UR¿WDIWHUWD[GLYLGHGE\QHWSUHPLXP 5% 6% Return on net worth 3UR¿WDIWHUWD[GLYLGHGE\QHWZRUWK 12% 10% ratio Available Solvency Ratio of Available Solvency Margin (ASM) at the 1.68 Margin (ASM) to end of the year to the Required Solvency Margin Required Solvency (RSM) Margin (RSM) ratio NPA Ratio - 87 Reliance General Insurance Company Limited 1RWH 7KHDERYHUDWLRVKDYHEHHQFDOFXODWHGDVSHU,5'$,0DVWHU&LUFXODU,5'$) ,&,5) $GDWHG2FWREHU 5thDQG&RUULJHQGXPRQ0DVWHU&LUFXODU,5'$) ,&,5) $GDWHG-XO\rd, 2013. $GGLWLRQDOUDWLRVUHTXLUHGDVSHU&ODXVH RIWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD /LVWLQJ2EOLJDWLRQVDQG Disclosure Requirements) Regulations, 2015. Ratio For the Year ended For the Year ended March 31, 2018 March 31, 2017 Debt Equity Ratio 0.18 Debt Service Coverage Ratio 8.88 10.92 Interest Service Coverage Ratio 8.88 10.92 37. 'XULQJWKH\HDUWKHERDUGKDVUHYLHZHGDQGFKDQJHGEDVLVRIDOORFDWLRQRIH[SHQVHV UHIHUQRWHQRRIVFKHGXOH 7KH&RQVHTXHQWLPSDFWRIFKDQJHVLQWKHEDVLVRIDOORFDWLRQRQWKHRSHUDWLQJH[SHQVHVRQUHYHQXHDFFRXQWVLV DVXQGHU x 2SHUDWLQJSUR¿WRI¿UHDFFRXQWLVORZHUE\5VWKRXVDQG x 2SHUDWLQJSUR¿WRIPDULQHDFFRXQWLVORZHUE\5V WKRXVDQG x 2SHUDWLQJSUR¿WRIPLVFHOODQHRXVDFFRXQWLVKLJKHUE\5V WKRXVDQG 38. &RUSRUDWH6RFLDO5HVSRQVLELOLW\ &65 During the year ended 31st March 2018, in accordance with the provisions of Section 135 of the Companies Act, 2013, the Company is liable and spent an amount Rs 20,722 thousand (Previous Year – Rs 16,277 thousand) on the &RUSRUDWH6RFLDO5HVSRQVLELOLW\ &65 DFWLYLWLHVDSSURYHGE\WKH&65&RPPLWWHHRIWKH%RDUG `LQ¶ Sr. No. Particulars In cash Yet to be paid in cash Total 1 +HDOWK&DUH 20,722 20,722 39. Forward contracts entered and outstanding as on March 31, 2018 is Nil ( Previous year Nil) 40. The Company does not have any long term contracts including derivatives contracts wherein the Company is required WRPDNHSURYLVLRQWRZDUGVDQ\IRUHVHHDEOHORVVHV 41. 3XUVXDQWWR,QVXUDQFH5HJXODWRU\DQG'HYHORSPHQW$XWKRULW\RI,QGLDFLUFXODUQR,5'$) $*'/&* dated 18th0D\RQ&RUSRUDWH*RYHUQDQFH*XLGHOLQHV'HWDLOVRIDGGLWLRQDOZRUNRWKHUWKDQVWDWXWRU\DXGLWDUH GLVFORVHGEHORZ `LQ¶ 1DPHRIWKH6WDWXWRU\$XGLW)LUP Particulars For the Year ended For the Year ended March 31, 2018 March 31, 2017 +DULEKDNWL &R//3 &HUWL¿FDWLRQ:RUN 150 3DWKDN+' $VVRFLDWHV &HUWL¿FDWLRQ:RUN 365 411 6LQJKL &R &HUWL¿FDWLRQ:RUN 201 3ULFH:DWHUKRXVH&KDUWHUHG$FFRXQWDQWV//3 &HUWL¿FDWLRQ:RUN 150 88 Annual Report 2017 - 2018 42. 3ULRU\HDU¿JXUHVKDYHEHHQUHFODVVL¿HGZKHUHYHUQHFHVVDU\WRFRQ¿UPWRFXUUHQW\HDUSUHVHQWDWLRQ )RUWKH\HDUHQGHG0DUFK 5HJURXSHGLQIRUWKH\HDUHQGHG0DUFK Schedule 1HZJURXSLQJ Schedule 2OGJURXSLQJ ` In ‘000 6FKHGXOH Employee Related Payables 6FKHGXOH Sundry Creditors 355,557 6FKHGXOH Provision for doubtful Advances 6FKHGXOH Sundry Creditors 24,408 6FKHGXOH Advances and Other Assets 6FKHGXOH &DVKDQG%DQN%DODQFH 485,724 6FKHGXOH Weather Insurance Charges 6FKHGXOH 0LVFHOODQHRXV([SHQVHV 189,933 3UR¿WDQG/RVV$FFRXQW Schedule 4 (PSOR\HHVUHPXQHUDWLRQ 43,146 ZHOIDUHEHQH¿WV 'HSRVLW$GYDQFHVDQG6WDႇ 'LUHFW3UHPLXP5HFHLYHG 22,983 /RDQVRXWVWDQGLQJSUHPLXP outstanding premium (Receipts (Receipts and Payment and Payment Account) Account) $VSHURXUDXGLWUHSRUWRIHYHQGDWHDWWDFKHG )RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUV )RU3ULFH:DWHUKRXVH&KDUWHUHG$FFRXQWDQWV//3 Rajendra Chitale +$QVDUL &KDUWHUHG$FFRXQWDQWV )5111 'LUHFWRU ',1 'LUHFWRU ',1 6KDUPLOD$.DUYH 'U7KRPDV0DWKHZ &KKD\D9LUDQL Partner, Membership No. 043229 'LUHFWRU ',1 'LUHFWRU ',1 3ODFH 1HZ )RU3DWKDN+' $VVRFLDWHV +HPDQW.-DLQ 0RKDQ.KDQGHNDU Chartered Accountants (FRN. 107783W) &KLHI)LQDQFLDO2ႈFHU Company Secretary (Membership No. A8515) 0XNHVK0HKWD Partner, Membership No. 043495 3ODFH 0XPEDL 'DWH WK$SULO 89 Reliance General Insurance Company Limited NOTES ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 90 Annual Report 2017 - 2018 NOTES ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 91 Reliance General Insurance Company Limited NOTES ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 92