Reliance Securities Limited Annual Report 2018- 2019 I I I REUANCE SECURITIES LIMITED FINANC-JAL STATEMENT AS A1"MARCH 31, 2019 Palhak I-l.1). Associates Chaiion;:d ACCOLinlJ3nts INDEPENDENT AUDITORS' REPORT TO THE MEMBERS Of RELIANCE SECURITIES UM ITEO Opinion We have audited the J(companyu,g Ind AS finanC1a1 staterrie-nts of Reliance Securities limited("tM Compan'(''),which comp;iS<! the 8..ila~ce, Sheet 11s jjt March 31. 2019, the Stateme1ll of Profit and loss finclvding Othe, Comp,ehensive Income), the Statemer'll of C,Hh Flows and the StiHt:'fl'le/'ll of changes in EquilV for the year then ended, and a summarvof ~ignific.:1nt accounting policies and other expfanatorv 10formation(he1einait-er refe"ed I() as "the Ind AS financial st;)teroents"I In o~r opm1on a:nd to the best o{ our informc1tion ,;1nd acc0tding to the explanatiOM given to vs, the aforcss\id Ind AS fu1anc1al <;t,i'ltem-ents giye the informaoon ,e-qvi1ed by the Companie, Act, 2-013("the Act'") in the 111c1Mer s-o teqt,tired and give a true and fair view 11, collformily with the Indian Actot•l'lt•ng Standards pre-icribed unde1· sect/011 13) of the Act read with th~ Compt1n1es !Indian Accounting, Standards) Rules, 20lS. as amended, ('"Ind AS"I and other accounting p;inciples gene~ally accepted in lndl;,,, of the sr<,m~ of affairs of the Company ,>S ;tt March 31, 2019; and its profit ~nd tot;al Comprehensive Income, Change in E:qu1tv and its cash Rows for the ye;,r ended on tha, date Basis tor opinion we COlldvcred our audrl of the Ind AS f?n.i,~cial st,llements in accordance with tht St.l1)ct;vds on Auditing specifi ed under Section 143(10l of the ;.'\ti, Our respot1sibilities under t,1ose St.incfords 3re fur1her dcs<ribe(I i1) lhe Auditor's Respon.sibilities for t-hc Au(lit or the Ind AS Financial StatenicntS se«i<111 of our r£>port. We: Me indepe11dent of the Company in ac<.ordance with the Code of Ethics iUut'tl by the lostllure of O,arte recl A.ccotsnt;ints or India together with the ethiCcl l requ1 remeots that ace relevant to our .ludit of the Ind AS finandal st,Hernents 1,1nder the prO\lisions o r the Act ar,d the Rule-s thereunder, and WL' h.ivt fulfilled our other eth,c-at rr:sponsll>lllties In accordance with these tcqvkemeflt.~ <ind the Code of Ethics, We believe that 1he audit evidence we h,1ve obt;1lned Is sufficient and app1op:1ate to r,ro\l'lde a basis for our opl,, 1011. IC:ey audit matters Key aud,t matters 3re those maners that, m our professional Judgment, were of most slgnifie,,.nce 1n our audit of the Ind AS flnanciat statements of the turt(!nt pc:riod. These matters were addressecl lo the context of ovr .)vd1l of tJle Ind AS financial ;ta1eme nts a~ a whole, ond 1n forming our opinion thcr~on, and we do not provide- a .sep.iNrte opinion °'" 1hese matters Ht.ad Office: ti 14·81 s, Tulsiani Chamber$. 2,2, l{Jll~lt Pol!!I Mtrrtllll • 400 021. lndla. 1al.: + 9? 22 3022 8508 rax. ~ g, 22 3022 .B509. URL: V/WW,lild.ind in Pa Lhak I-1.1). Associates,, key Audit Matter How Qur iludit ~ddressed the key audit matter M3tke1 Linked Oebeillures (MLD) The CompanY' has non-convert, ble dcbentur(.>s W<J ca;ried out following pro~cdl1res 111 rC:;pCCt lO fMa.tket Linked Debeotutes) of Rs 10,931 lakhs a-sat Market Linked Debentures : 31., March 2019. The tate of ioterest on whi<:h is • heh:f dls.cvssion with m;rnagement and obtained linked to performance of specified indices over the o.ndcr~:tanclir1g or v,1/uatiM piocess induding pe<iod of the debentures. The terms and conditions management's determination and approval of of tht MJrket Unkt d 0ebe1lt1.ires are det,;1ile<J In Nore ;1ssumptions and dat.a inputs. 19 of the Ind AS fin11,,ciaJ st.itemeots • ev.ilvate the design and h?SU:rl operntins Further. Market Linked Debentures is a l<cy number cfft-ctivcncss of conlrols. ttlalcd to tht d,lt_. cons.ide<ed in the b;d.lnce sheet and will remain an important in the valuation, related calculations and Valuation fundm~ mCdl;)n,sm fof <:ominued gt(>W"\h, Thecefore, repom p,ovlded by m.Hlil8ement's ex-iemal expert. in our view, Market Linked Ocbcntutts is 1mpo1t,11lt to che re.:iders understanding of th2 Ind AS fi;iandal mnements. As a result oi 1hese lt~ms ,ve consider accounting fo; MaM(el Unktd Deben1ures to be .-l kflV .)udiLmatte r at 31'1 March 2019. '---·-Provi.sfo------~~c-,-~~--+-------ns a nd contingent liabilities in relation to -----------l t;ix positions Refer note no. 34 of the Ind AS financial statemcrit. We hav~ involvl'd out t,)x ex.perts to g3in .in undel"\tanding of 1he cufrMt status of tht tax ('~SCS .ind The comp,:1ny ha> received variou,s demands and monrtored changes in. the dispute-s by reading external show cause uolires from the stt\!lc~ IM, dep:irtme-nt opinions received by the Company if any, where in respect of v.atious matte-I'S. relevant, 10 ~u.abllsh that the iil)( provisions had been appropn:ttely adjusted to ,enect I.he latest enernal The management have made jodgmcots rel;1ting to. developments 1he likelthood of an obfigation ,nisu1g ~n(l whethe, For legal. regulatory and t.aK maners our procedures there is a need to ,e.:ognize a provision or disdose J hlQvde<I the foUovling: ce>1H1ngent li ability. We therefore foc~cd on this art-.i as 3 ,esoh of unceflalmv and p-otentlal material • tesbog key C(lnc1ols ;ur,oundlng litigation, imp.act. regulatory and ttlx S)fQCe<h1re.s, • p~tformlng su!:>sta,Hive procedures on the underlvlos C<tfC'l.ll;itiOI\S su;:,po<tlng the provisions tecorded; • where relevant, reading external legal ,opinioos obtained bv m.in.agemen1; • discussing open matters with the litigation, ,egulatory, general counsel and tax teams; • c1n<'sSing m<milg~meot's coi,dusie>I\S 1h,ot,gh undWst.mding p1ec.cdenu se~ ir} sJmilJr cMes; 8asE!d on the evide.nce obtained, while noting the inhtrt.'nt uncertainty with suc:h legal, re-gulatory Md tilX maners, we determlned the level ol provisioning ,ind di.$¢1<>Sutc of ((Xlli08:.:f\l lf.»bihtiCS ~s. .'.ll 31 M.i,ch 2019 to be .appropriate. A.ssociates Pathak II.D. ,, Other Information 1he CompanYs Board of Directors is responSible- for the Qther information rhe other 1ntormation comprises the lnf()(mation included ir\ the ...0 1rector's Report" including Annexures to Oire<tot's Report, but does not include the Ind AS hl'ancial statements ,l nd our avdit0<'s rep<,rt thereon Ovr opinion on thl!' Ind AS fln;incial statements does not cover the othet ioformauon and wa do not express any form of assur.)/\te condusion thereon. In connection w1~ our audit of , h e In~ AS financial stati::me,m, our responsibility is 10 re.a d the 01her information Md, 11'1 doing so. con~ider whether the other information is flliJtenal:v inconsistent with the Ind AS finanaal stalcmc-fllS or O\lt knowledge obt.1ir1ed 1n thi> a udit or othttwi:;e appears to be mattflJlly misst.ited If. based on the work we hil vt" performed, we eooclude that there is a m.ite,IJI mmtat.emtnl of this oth~I' information: we are required to report that fact w e have nothing lO report In this '°egard. RcspcMlbilhles of management for the Ind AS financi.tl statements The Company's 8C>Md of Director> 1s responsible for {he matter~ stated In Secuon 13415) of the Ac.t with respect to the prepMMioo oi these Ind AS fi npnci,'ll .statemenh thilt give a rrue and faif view of the f,n;incial position, fint1n<:it11 performance, change in equity and cash ffows of the compan'( in ;m:ord.:inc.e with lhe accounting p.rmtiples generally accepted in h'ldlil, tnduding th~ lndi.-.n Accovnong Stand:1rds (Ind AS) specified under section J 33 of the Att~ read witli th~ Companies (Indian Accountiog St.)odardsJ Rule<;, 2015, as amcnde,d.This responsibility ;)ISO il'\dudes maintf:Mn<:e of adequate acoou,nlng records in (lccordance with tbe prov1~1on of the Act iol' s.ifegvatding the autlS of 1he Companv and for pre venting .iM de tecting fraud:. al'ld other irregularities: :.cfc<:ltOfl (I nd application of the .'lpprop, iate accOot'!ting policies; m.'lklng judgements and estimates. that arc reawn.ible and prudent; and des~gn, lmplement.itu)n and maintenJn~ of adequate intcrn:,I f1nanda1 control$, that were operating effo-c:tivel'( fQt ensuring tht accuracy af\cl c:omp!eteness of the accountmg records. r('lc•,.int to the prepar.ation ;)nd presentation of the Ind AS fin:,ocial statements lhM give ;,i uue and rai, view Mid ,lre free from m;iteri;il misstatement, whether dve to fr;,ud or error. In preparing the Ind AS financial ~t<ncmer.ts. management is responsible la< a~cssmg the Company's ability to conti:1Ue .is a gQing con cern, dis<:los,ng. as applicable, rlhllle,$ related to goi"8 c.oncern and using the going conccm b;,.sls of ,1 ccountint unless management eith<:-r ullend; to liquidate the Company 01' to cease operations, or has no realistic alternative but to do $0 Tho~e Board of Directors ill t also responsible for overseeing th~ Comp;)nv's financial reporting pwc~s.