Annual Report 2017-18
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September 20, 2018 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Dalal Street, Plot No. C/1, G Block, Sandra Kurla Complex, Mumbai 400 001 Sandra (East), Mumbai 400 051 BSE Scrip Code: 500111 NSE Scrip Symbol: RELCAPIT AL Dear Sir(s), Sub.: Annual Report 2017-18 Pursuant to Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing Annual Report for the financial year 2017-18 as required. We hereby confirm that the Annual Report 2017-18 was approved and adopted by the members of the Company at their 32"d Annual General Meeting held on September 18, 2018, as per provisions of the Companies Act, 2013. Kindly acknowledge receipt. Thanking you. Yours faithfully, F~~C apital Limited Atul Tandon Company Secretary & Compliance Officer Encl.: As Above. Registered Office: H Block. r Floor, Dhirubhoi Ambani Knowledge City, Novi Mumbai · 400 710 E-mail: rcl.investor@relionceada com, Website: www.reliancecapital.co.in CIN: L65910MH1986PLC165645 Annual Report 2017- 18 Padma Vibhushan Shri Dhirubhai H. Ambani (28th December, 1932 - 6th July, 2002) Reliance Group - Founder and Visionary Profile Reliance Capital Limited is a constituent of the Reliance Group, one of the leading business houses in India. Reliance Capital, incorporated in 1986, is one of India’s leading private sector financial services companies, and ranks amongst the top private sector financial services and banking groups, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, pension funds, life, health and general insurance, commercial and home finance, stock broking, wealth management services, distribution of financial products, asset reconstruction, proprietary investments and other activities in financial services. Mission: Excellence in Financial Services To attain global best practices and become a world-class financial services enterprise – guided by its purpose to move towards greater degree of sophistication and maturity. To work with vigour, dedication and innovation to achieve excellence in service, quality, reliability, safety and customer care as the ultimate goal. To earn the trust and confidence of all stakeholders, exceeding their expectations and make the Company a respected household name. To consistently achieve high growth with the highest levels of productivity. To be a technology driven, efficient and financially sound organisation. To deliver ease, speed and convenience to our customers through integrated digital platforms. To be a provider of end to end financial solutions that can bring financial stability, security and opportunities to create wealth for all our stakeholders. To contribute towards community development and nation building. To be a responsible corporate citizen nurturing human values and concern for society, the environment and above all the people. To promote a work culture that fosters individual growth, team spirit and creativity to overcome challenges and attain goals. To encourage ideas, talent and value systems. To uphold the guiding principles of trust, integrity and transparency in all aspects of interactions and dealings. This Report is printed on environment friendly paper. Business mix Exchange Alternative ASSET Mutual Offshore Pension Traded Investment Fund Fund Fund MANAGEMENT Funds Funds Life General Health INSURANCE Insurance Insurance Insurance l BROKING& Stock Wealth Third Party DISTRIBUTION Broking Management Distribution COMMERCIAL SME Retail Microfinance Renewable FINANCE Loans Loans Loans Loans Reliance Capita HOME Affordable Housing Home Loan Against Construction FINANCE Loans Loans Property Finance OTHER Proprietary Institutional Asset BUSINESSES Investments Broking Reconstruction Reliance Capital Limited Board of Directors Contents Page No. Mr. Anil Dhirubhai Ambani - Chairman Letter to Shareowners ..................................................................6 Mr. Amitabh Jhunjhunwala - Vice Chairman Mr. Rajendra P. Chitale Highlights – at a glance ...............................................................8 Dr. Bidhubhusan Samal Notice of Annual General Meeting .............................................9 Mr. V. N. Kaul Ms. Chhaya Virani Directors’ Report ........................................................................ 15 Mr. Jai Anmol Ambani - Executive Director Management Discussion and Analysis ..................................... 31 Key Managerial Personnel Business Responsibility Report ................................................. 38 Mr. Amit Bapna - Chief Financial Officer Mr. Atul Tandon - Company Secretary & Corporate Governance Report .................................................. 44 Compliance Officer Auditors Auditors’ Certificate regarding compliance of conditions of Corporate Governance ........................................ 55 M/s. Pathak H.D. & Associates M/s. Price Waterhouse & Co Chartered Accountants LLP Investor Information .................................................................. 56 Registered Office Independent Auditors’ Report on the Financial Statement ... 62 st H Block, 1 Floor Balance Sheet ............................................................................ 66 Dhirubhai Ambani Knowledge City Navi Mumbai 400 710 Statement of Profit and Loss ................................................... 67 CIN : L65910MH1986PLC165645 Tel. : +91 22 3303 1000 Cash Flow Statement ................................................................ 68 Fax : +91 22 3303 6664 Notes to the Financial Statement ............................................ 70 E-mail : [email protected] Website: www.reliancecapital.co.in Independent Auditors’ Report on the Consolidated Financial Statement ................................................................. 102 Registrar and Transfer Agent Consolidated Balance Sheet .................................................... 106 Karvy Computershare Private Limited Karvy Selenium Tower - B Consolidated Statement of Profit and Loss ........................... 107 Plot No. 31 & 32, Survey No. 116/22, 115/24, 115/25 Financial District, Nanakramguda Consolidated Cash Flow Statement ........................................ 108 Hyderabad 500 032 Website: www.karvy.com Notes to the Consolidated Financial Statement .................... 110 Investor Helpdesk Statement containing salient features of the financial statement of subsidiaries/associate companies ..................... 149 Toll free no. (India) : 1800 4250 999 Tel. : +91 40 6716 1500 Form for updation of PAN and Bank details .......................... 151 Fax : +91 40 6716 1791 E-mail : [email protected] Attendance Slip and Proxy Form ............................................. 153 32nd Annual General Meeting on Tuesday, September 18, 2018 at 1:15 P.M. or soon after the conclusion of the Annual General Meeting of Reliance Power Limited convened on the same day, whichever is later, at Birla Matushri Sabhagar, 19, New Marine Lines, Mumbai 400 020 This Annual Report can be accessed at www.reliancecapital.co.in Reliance Capital Limited Letter to Shareowners My dear fellow Shareowners, It gives me great pleasure to share with you the highlights of our • Net profit of ` 1,309 crore (US$ 201 million), against Company’s performance during 2017 - 18. ` 1,086 crore in the previous year, an increase of 21 per cent Reliance Capital made significant progress during the year towards • Earnings Per Share (EPS) of ` 51.8 (US$ 0.8), against improving operational performance across its core businesses, ` 43.0 in the previous year and is fully geared to capitalise on its growth aspirations. • Total assets of ` 93,851 crore (US$ 14.4 billion), against We continue to move forward in fulfilling the vision of ` 82,209 crore in the previous year, an increase of our legendary founder and my father, Padma Vibhushan 14 per cent Shri Dhirubhai Ambani, to attain financial empowerment for millions of ordinary Indians, and, in the process, enable Reliance • Total net worth of ` 16,605 crore (US$ 2.6 billion) Capital to become one of India’s leading financial services’ These robust financial numbers have enabled us to recommend players. a dividend of ` 11 per share against ` 10.50 per share in the Reliance Capital Limited, a part of the Reliance Group, is one of previous year. India’s leading private sector financial services companies. It ranks Highest credit ratings amongst the top private sector financial services and banking groups, in terms of net worth. The Company is a constituent of Our Company’s short-term debt programme enjoys a rating MSCI Global Small Cap Index. of “A1+” by ICRA, the highest credit quality rating assigned to short-term debt instruments. Instruments rated in this category Reliance Capital has interests in asset management and carry lower credit risk in the short-term. CARE assigned the mutual funds, pension funds, life, health and general insurance, long- term debt programme a rating of “CARE AA+”. Instruments commercial and home finance, stock broking, wealth management with this rating are considered to be one of the best credit services, distribution of financial products, asset reconstruction, qualities, offering high safety for timely servicing of debt proprietary investments and other activities in financial services. obligations. Such instruments carry lower credit risk. Reliance Capital Limited, is a constituent of the Reliance Group Achievements during