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Reliance Nippon Life Asset Management Ltd.

BSE: 540767 Sector: Financials
NSE: RNAM ISIN Code: INE298J01013
BSE 00:00 | 24 May 226.95 -6.80
(-2.91%)
OPEN

226.50

HIGH

232.00

LOW

224.50

NSE 00:00 | 24 May 227.60 -6.90
(-2.94%)
OPEN

228.00

HIGH

231.90

LOW

224.50

OPEN 226.50
PREVIOUS CLOSE 233.75
VOLUME 233100
52-Week high 278.95
52-Week low 120.20
P/E 29.25
Mkt Cap.(Rs cr) 13,889
Buy Price 224.55
Buy Qty 500.00
Sell Price 226.95
Sell Qty 301601.00
OPEN 226.50
CLOSE 233.75
VOLUME 233100
52-Week high 278.95
52-Week low 120.20
P/E 29.25
Mkt Cap.(Rs cr) 13,889
Buy Price 224.55
Buy Qty 500.00
Sell Price 226.95
Sell Qty 301601.00

Reliance Nippon Life Asset Management Ltd. (RNAM) - Auditors Report

Company auditors report

To the Members of

Reliance Nippon Life Asset Management Limited

(Formerly known as Reliance Capital Asset Management Limited)

Report on the financial statements

We have audited the accompanying standalone financial statements of Reliance NipponLife Asset Management Limited (‘the Company') which comprise the Balance Sheet as at31 March 2018 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation.

Management's responsibility for the financial statements

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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Auditor's responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143 (10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control over financial reporting relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation of the financial statements.

We are also responsible to conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the financial statements or if such disclosures areinadequate to modify the opinion. Our conclusions are based on the audit evidenceobtained up to the date of the auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

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

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 31 March 2018 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 (‘the Order') issuedby the Central Government of India in terms of sub section (11) of section 143 of the Actwe give in the "Annexure A" a statement on the matters specified in paragraph 3and 4 of the Order to the extent applicable.

As required by Section 143 (3) of the Act we report that:

a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

b) in our opinion proper Books of Account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c) the Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the Books of Account;

d) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e) on the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act;

f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B"; and

g) with respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and

Auditors) Rules 2014 in our opinion and to the best of our information and accordingto the explanations given to us:

i. the Company has disclosed the impact of pending litigation on its financial positionin financial statement – refer note 3.23 to the financial statements;

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses – refer note 3.23 to the financialstatements;

iii. there are no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company; and

iv. the disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from 8 November 2016 to 30 December 2016 havenot been made since they do not pertain to the financial year ended 31 March 2018.However amounts as appearing in the audited financial statements for the year ended 31March 2017 have been disclosed.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Milind Ranade
Mumbai Partner
April 25 2018 Membership No: 100564

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT – MARCH 31 2018

(Referred to in our report of even date) i. (a) The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all the fixed assets are verified in a phased manner over a period of three years.In our opinion this periodicity of physical verification is reasonable having regard tothe size of the Company and the nature of its assets. No material discrepancies werenoticed on such verification.

(c) The Company does not have any immovable properties. Accordingly paragraph 3 (i) (c)of the Order is not applicable.

ii. The Company is a service company primarily rendering asset management servicesportfolio management services and advisory services. Accordingly it does not hold anyinventories. Thus paragraph 3 (ii) of the Order is not applicable.

iii. According to the information and explanation given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theAct. Thus paragraph 3(iii) of the Order is not applicable.

iv. In our opinion and according to the information and explanations given to us theCompany has not advanced any loan given any guarantee or provided any security undersection 185 of the Act to any of its directors or to any person in whom the director isinterested. The Company has complied with the provisions of section 186 of the Act withrespect to the loans and investments made. The Company has not given any guarantee orprovided any security under Section 186 of the Act.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted deposits as per the directives issued by Reserve Bank of Indiaand the provisions of Sections 73 to 76 or other relevant provisions of the Act and rulesframed there under. Thus paragraph 3(v) of the Order is not applicable to the Company.

vi. The Central Government has not prescribed the maintenance of cost records undersub- section 1 of section 148 of the Act for any of the services rendered by the Company.Accordingly paragraph 3(vi) of the Order is not applicable.

vii. (a) According to the information and explanations given to us and on the basis ofour examination of the Books of Account amounts deducted/ accrued in the Books of Accountin respect of undisputed statutory dues including provident fund income tax service taxgoods and service tax cess and other material statutory dues have generally beenregularly deposited during the year by the Company with the appropriate authorities. Asexplained to us the Company did not have any dues on account of sales tax wealth taxemployees' state insurance duty of customs duty of excise and value added tax. Accordingto the information and explanations given to us no undisputed amounts payable in respectof provident fund income tax service tax goods and service tax cess and other materialstatutory dues were in arrears as at 31 March 2018 for a period of more than six monthsfrom the date they became payable.

(b) According to the information and explanations given to us there are no dues ofprovident fund income tax service tax goods and service tax cess and other materialstatutory dues which have not been deposited by the Company on account of disputes.

viii. In our opinion and according to the information and explanations given to us theCompany has not taken any loan or borrowing from financial institution bank Governmentor debenture holders. Thus paragraph 3 (viii) of the Order is not applicable.

ix. The Company has raised money by way of Initial Public Offering (IPO) during theyear. In our opinion and according to the information given to us the money raised byway of IPO has been applied for the purposes for which it was raised (Refer note no. 3.36to the standalone financial statements). There is also unutilized IPO money as at the yearend and the same has been kept in the current account and fixed deposit with the scheduledcommercial banks. The Company has not raised any money by the way of further public offer(including debt instruments) and term loans. Accordingly the provision of clause 3 (ix)of the Order are not applicable with respect to further public offer (including debtinstruments) and term loans.

x. According to the information and explanations given to us no fraud on the Companyby its officers or employees has been noticed or reported during the year.

xi. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company as per the Act. Thus paragraph 3 (xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv. According to the information and explanation given to us the Company has not madepreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Thus paragraph 3 (xiv) of the Order is not applicable.

xv. According to the information and explanation given to us the

Company has not entered into non-cash transactions with directors or person connectedwith him. Thus paragraph 3 (xv) of the Order is not applicable.

xvi. According to the information and explanation given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.Thus paragraph 3 (xvi) of the Order is not applicable.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Milind Ranade
Mumbai Partner
April 25 2018 Membership No: 100564

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT – MARCH 31 2018

(Referred to in our report of even date)

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of RelianceNippon Life Asset Management Limited ("the Company") as of 31 March 2018 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

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 (the‘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 Companies Act 2013(the ‘Act').

Auditor's responsibility

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 issued by the ICAI and specifiedunder Section 143 (10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

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

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

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 31 March 2018 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by the ICAI.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Milind Ranade
Mumbai Partner
April 25 2018 Membership No: 100564