You are here » Home » Companies » Company Overview » Reliance Capital Ltd

Reliance Capital Ltd.

BSE: 500111 Sector: Financials
NSE: RELCAPITAL ISIN Code: INE013A01015
BSE 15:08 | 24 May 136.75 4.85
(3.68%)
OPEN

134.90

HIGH

139.80

LOW

132.50

NSE 14:59 | 24 May 136.05 4.10
(3.11%)
OPEN

135.00

HIGH

139.90

LOW

132.20

OPEN 134.90
PREVIOUS CLOSE 131.90
VOLUME 1787373
52-Week high 487.60
52-Week low 103.75
P/E 5.67
Mkt Cap.(Rs cr) 3,456
Buy Price 136.65
Buy Qty 3252.00
Sell Price 136.80
Sell Qty 1256.00
OPEN 134.90
CLOSE 131.90
VOLUME 1787373
52-Week high 487.60
52-Week low 103.75
P/E 5.67
Mkt Cap.(Rs cr) 3,456
Buy Price 136.65
Buy Qty 3252.00
Sell Price 136.80
Sell Qty 1256.00

Reliance Capital Ltd. (RELCAPITAL) - Auditors Report

Company auditors report

ON THE STANDALONE FINANCIAL STATEMENT

To

The Members

Reliance Capital Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Reliance CapitalLimited ("the Company") which comprise the Balance Sheet as at March 31 2018the Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information (hereinreferred to as "the standalone financial statements").

Management's Responsibility for the Standalone Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements to give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with relevant rules of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting standards and matters which are required to be included in theaudit report.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financial statements are free frommaterial misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the standalone financial statements. The procedures selected dependon the auditors' judgment including the assessment of the risks of material misstatementof the standalone financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2018 and its profit and its cash flows for the year ended on that date.

Emphasis of Matter

9. We draw attention to Note No. 38(i) to the standalone financial statements whichdescribes that the Company has made an application to the Reserve Bank of India(‘RBI') for obtaining Certificate of Registration as a Core Investment Company(‘CIC') and has taken necessary measures to comply with the prudential normsapplicable to a CIC.

Our opinion is not modified in respect of this matter.

Other Matter

10. The standalone financial statements of the Company for the year ended March 312017 were audited by the then Joint Statutory Auditor M/s. B S R & Co. LLP CharteredAccountants and the present Joint Statutory Auditor M/s. Pathak H.D. &Associates Chartered Accountants who issued an unmodified opinion vide their report datedApril 27 2017.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

11. As required by ‘the Companies (Auditor's Report) Order 2016' issued by theCentral Government of India in terms of sub-section (11) of Section 143 of the Act(hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure B a statement on thematters specified in paragraphs 3 and 4 of the Order.

12. As required by Section 143 (3) of the Act we report that: (a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit; (b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; (c) The Balance Sheet the Statement of Profit and Loss andthe Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount;

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant rules ofthe Companies (Accounts) Rules 2014; (e) On the basis of the written representationsreceived from the directors as on March 31 2018 taken on record by the Board ofDirectors none of the directors is disqualified as on March 31 2018 from being appointedas a director in terms of Section 164 (2) of the Act; (f) With respect to the adequacy ofthe internal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls refer to our separate Report in Annexure A and; (g) Withrespect to the other matters to be included in the Auditors' Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the bestof our knowledge and belief and according to the information and explanations given to us:i. The Company has disclosed the impact if any of pending litigations as at March 312018 on its financial position in its standalone financial statements – Refer NoteNo. 43(a)(ii) to the standalone financial statements; ii. The Company has made provisionas at March 31 2018 as required under the applicable law or accounting standards formaterial foreseeable losses if any on long-term contracts including derivative contracts– Refer Note No. 49 to the standalone financial statements; iii. There has been nodelay in transferring amounts required to be transferred to the Investor Education andProtection Fund by the Company during the year ended March 31 2018; iv. The reporting ondisclosures relating to Specified Bank Notes is not applicable to the Company for the yearended March 31 2018 – Refer Note No. 48 to the standalone financial statements.

For Pathak H.D. & Associates For Price Waterhouse & Co
Firm Registration No.: 107783WChartered Accountants LLP
Chartered Accountants Firm Registration No.: 304026E/
E-300009
Chartered Accountants
Parimal Kumar Jha Vivek Prasad
Partner Partner
Membership No.: 124262 Membership No.: 104941
Mumbai Mumbai
April 26 2018 April 26 2018

Annexure A to the Independent Auditors' Report on the Standalone Financial Statement

Referred to in paragraph 12(f) of the Independent Auditors' Report of even date to themembers of Reliance Capital Limited ("the Company") on the standalone financialstatements for the year ended March 31 2018

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act

1. We have audited the internal financial controls over financial reporting of theCompany as of March 31 2018 in conjunction with our audit of the standalone financialstatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing deemed to be prescribed under Section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of internal financial controls and both issued by the ICAI.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of standalone financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the standalonefinancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Pathak H.D. & Associates For Price Waterhouse & Co
Firm Registration No.: 107783WChartered Accountants LLP
Chartered Accountants Firm Registration No.: 304026E/
E-300009
Chartered Accountants
Parimal Kumar Jha Vivek Prasad
Partner Partner
Membership No.: 124262 Membership No.: 104941
Mumbai Mumbai
April 26 2018 April 26 2018

Annexure B to the Independent Auditor's Report on the Standalone Financial Statement

Referred to in paragraph 11 of the Independent Auditors' Report of even date to themembers of Reliance Capital Limited ("the Company') on the standalone financialstatements as of and for the year ended March 31 2018 i. (a) The Company is maintainingproper records showing full particulars including quantitative details and situation offixed assets.

(b) The fixed assets are physically verified by the Management according to a phasedprogramme designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme a portion of the fixed assets has been physicallyverified by the Management during the year and no material discrepancies have been noticedon such verification. (c) The title deeds of immovable properties as disclosed in NoteNo. 14 on fixed assets to the standalone financial statements are held in the name of theCompany. ii. The Company is in the business of rendering services and consequently doesnot hold any inventory. Therefore the provisions of Clause 3(ii) of the said Order arenot applicable to the Company. iii. The Company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties covered inthe register maintained under Section 189 of the Act. Therefore the provisions of Clause3(iii) (iii)(a) (iii)(b) and (iii)(c) of the said Order are not applicable to theCompany.

iv. The Company has not granted any loan or provided any guarantee or security inconnection with any loan taken by parties covered under Section 185 of the Act. Thereforethe provisions of Section 185 are not applicable to the Company. The Company is registeredas a Non-Banking Financial Company with the RBI and has made application to RBI forobtaining Certificate of Registration as Core Investment Company. Thus the provision ofSection 186 except sub-section (1) of the Act is not applicable to the Company. In ouropinion and according to the information and explanations given to us during the yearthe Company has not made any investments through more than two layers of investmentcompanies as mentioned in sub section (1) of Section 186 of the Act. v. The Company hasnot accepted any deposits from the public within the meaning of directives issued by theReserve Bank of India and Sections 73 74 75 and 76 of the Act and the Rules framed thereunder to the extent notified. Therefore the provisions of Clause 3(v) of the said Orderare not applicable to the Company. vi. The Central Government of India has not specifiedthe maintenance of cost records under sub-section (1) of Section 148 of the Act for any ofthe products of the Company. Therefore the provisions of Clause 3(v) of the said Orderare not applicable to the Company. vii. (a) According to the information and explanationsgiven to us and the records of the Company examined by us in our opinion the Company isgenerally regular in depositing undisputed statutory dues in respect of provident fundincome tax and profession tax though there has been a slight delay in a few cases and isregular in depositing undisputed statutory dues including service tax value added taxcess goods and service tax with effect from July 1 2017 and other material statutorydues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income-tax service-tax value added taxgoods and service tax which have not been deposited on account of any dispute. Theparticulars of dues of sales tax as at March 31 2018 which have not been deposited onaccount of a dispute are as follows:

Name of the statute Nature of dues Amount (Rs) Period to which the amount relates Forum where the dispute is pending
Madhya Pradesh Sales Tax Act 1958 Sales Tax 430472 1996- 1997 Appellate Deputy Commissioner of the Commercial Tax Indore Division I
Gujarat Sales Tax Act 1969 Sales Tax 475916 2001- 2002 Gujarat Sales Tax Tribunal Ahmedabad

viii. According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingsto any financial institution or bank or Government or dues to debenture holders as at thebalance sheet date. ix. The Company has not raised any moneys by way of initial publicoffer or further public offer (including debt instruments). In our opinion and accordingto the information and explanations given to us the moneys raised by way of term loanshave been applied for the purposes for which they were obtained. x. During the course ofour examination of the books and records of the Company carried out in accordance withthe generally accepted auditing practices in India and according to the information andexplanations given to us we have neither come across any instance of material fraud bythe Company or on the Company by its officers or employees noticed or reported during theyear nor have we been informed of any such case by the Management.

xi. The Company has paid / provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct. xii. As the Company is not a Nidhi Company and the Nidhi

Rules 2014 are not applicable to it the provisions of Clause 3(xii) of the Order arenot applicable to the Company. xiii. The Company has entered into transactions withrelated parties in compliance with the provisions of Sections 177 and 188 of the Act. Thedetails of related party transactions have been disclosed in the standalone financialstatements as required under Accounting Standard (AS) 18 Related Party Disclosuresspecified under Section 133 of the Act read with relevant rules of the Companies(Accounts) Rules 2014. xiv. The Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the year.Accordingly the provisions of Clause 3(xiv) of the Order are not applicable to theCompany. xv. The Company has not entered into any non-cash transactions with its directorsor persons connected with him. Accordingly the provisions of Clause 3(xv) of the Orderare not applicable to the Company. xvi. According to the information and explanationsgiven to us the Company is registered as Non-Banking Financial Company under Section 45-IAof the Reserve Bank of India Act 1934. The Company has positioned itself as a CoreInvestment Company and has made an application with RBI for obtaining Certificate ofRegistration as a Core Investment Company and has taken necessary measures to comply withthe prudential norms applicable to a Core Investment Company – Refer Note No. 38(i)to the standalone financial statements.

For Pathak H.D. & Associates For Price Waterhouse & Co
Firm Registration No.: 107783W Chartered Accountants LLP
Chartered Accountants Firm Registration No.: 304026E/
E-300009
Chartered Accountants
Parimal Kumar Jha Vivek Prasad
Partner Partner
Membership No.: 124262 Membership No.: 104941
Mumbai Mumbai
April 26 2018 April 26 2018