Notes to Accounts of Reliance Capital Ltd.

Mar 31, 2025

2.16 Provisions

Provisions are recognized when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to passage of
time is recognized as a finance cost.

2.17 Use of estimates and judgements

In preparing these financial statements,
management has made judgements, estimates
and assumptions which might have an effect
on recognition and measurement of the
reported amounts of assets, liabilities, income
and expenses. Actual results may differ from
these estimates.

The management believes that these estimates
are prudent and reasonable and are based
upon the management''s best knowledge of
current events and actions as on the reporting
date. Actual results could differ from these
estimates and differences between actual
results and estimates are recognised in the
periods in which the results/actions are known or
materialised. Revisions to accounting estimates
are recognised prospectively.

2.18 Employee-Benefits Expense

(i) Short-term Employee Benefits

The undiscounted amount of short term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognized
as an expense during the period when the
employees render the service.

(ii) Post-employment obligations

Defined contribution plans

The Company recognizes contribution payable
to provident fund scheme as an expense, when
the employee renders the related service. If the
contribution payable to the scheme for service
received before the balance sheet date exceeds
the contribution already paid, the deficit payable
to the scheme is recognized as a liability after

deducting the contribution already paid. If
the contribution already paid exceeds the
contribution due for services received before the
balance sheet date, then excess is recognized as
an asset.

Defined benefit plans

The liability or asset recognized in the balance
sheet in respect of defined benefit gratuity
plans is the present value of the defined benefit
obligation at the end of the reporting period less
the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries
using the projected unit credit method.

The present value of the defined benefit
obligation denominated in INR is determined by
discounting the estimated future cash outflows
by reference to market yields at the end of the
reporting period on government bonds that
have terms approximating to the terms of
the related obligation. The estimated future
payments which are denominated in a currency
other than INR, are discounted using market
yields determined by reference to high-quality
corporate bonds that are denominated in the
currency in which the benefits will be paid, and
that have terms approximating to the terms of
the related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan
assets. This cost is included in employee benefit
expense in the statement of profit or loss.

Re-measurement gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognized in the
period in which they occur, directly in other
comprehensive income. They are included in
retained earnings in the statement of changes in
equity and in the balance sheet.

(iii) Other long-term employee benefit obligations
Leave encashment

The liabilities for earned leave are not expected
to be settled wholly within 12 months after the end
of the period in which the employees render the
related service. They are therefore measured as
the present value of expected future payments
to be made in respect of services provided by
employees up to the end of the reporting period
using the projected unit credit method. The
benefits are discounted using the appropriate
market yields at the end of the reporting period
that have terms approximating to the terms of
the related obligation. Re-measurements as a
result of experience adjustments and changes
in actuarial assumptions are recognized in the
statement of profit or loss.

2.19 Share-based payments

Employee Stock Option Plan (ESOP) / Performance
Stock Units (PSU)

Equity settled share based payments to
employees and others providing similar
services are measured at fair value of the equity
instruments at the grant date. Details regarding
the determination of the fair value of equity
settled share based payments transactions are
set out in Note 27.

The fair value determined at the grant date of
the equity settled share based payments is
expensed on a straight line basis over the vesting
period, based on the Company''s estimate of
equity instruments that will eventually vest,
with a corresponding increase in equity. At the
end of each reporting period, the Company
revives its estimate of the number of equity
instruments expected to vest. The impact of the
revision of original estimates, if any, is recognized
in Statement of profit and loss such that the
cumulative expenses reflect the revised estimate,
with a corresponding adjustment to Share based
options outstanding account.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

Reliance Capital Asset Management Employees
Benefit Trust

The Reliance Capital Asset Management
Employees Benefit Trust is administered by the
Company. The Company treats the trust as its

extension and is consolidated in Company''s
financial statements. There are no shares
pending to be allotted in the Trust.

2.20 Earnings per share

a) Basic earnings per share

Basic earnings per share is calculated by dividing
the profit attributable to equity holders of the
Company by the weighted average number of
equity shares outstanding during the financial
year, adjusted for bonus element in equity shares
issued during the year.

b) Diluted earnings per share

Diluted earnings per share adjusts the figures
used in the determination of basic earnings
per share to take into account the after income
tax effect of interest and other financing costs
associated with dilutive potential equity shares,
and the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

2.21 Rounding of amounts

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
crore as per the requirements of Schedule III,
unless otherwise stated.

2.22 New and amended standards

There are no standards that are notified and not
yet effective as on the date.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of I 10 per share. Each holder of
equity shares is entitled to one vote per share.

I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive
any of the remaining assets of the Company, after distribution of all preferential amounts. However,
no such preferential amounts exists currently. The distribution will be in proportion to the number of
equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the
ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Plan (ESOP) / Performance based Stock Unit
(psu), including details regarding options issued, exercised and lapsed during the year and options
outstanding at the end of the reporting year is set out in note 27.

Nature and purpose of reserve:

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be
utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions
of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the general reserve is created by a transfer from one component of equity to another
and is not an item of other comprehensive income, items included in the general reserve will not be
reclassified subsequently to profit or loss.

c) Surplus in the statement of profit and loss

Surplus in the statement of profit and loss that the Company earned/incurred till date, less any
transfers to general reserve, dividends or other distributions paid to Shareholders. Surplus in the
statement of profit and loss include re-measurement loss / (gain) on defined benefit plans, net of
taxes that will not be reclassified to Statement of Profit and Loss.

d) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options
issued to employees under share based payments arrangement over the vesting period. (Refer Note.
27)

The weighted average duration of the defined benefit obligation is 08 years (previous year - 08 years)

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment

risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present
value of the liability requiring higher provision. A fall in the discount rate generally increases the mark
to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the
future salaries of members. As such, an increase in the salary of the members more than assumed
level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount
rate which is determined by reference to market yields at the end of the reporting period on
government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently,
for the plan in India, it has a relatively balanced mix of investments in government securities, and
other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the
plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement
age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the
insurance Company and a default will wipe out all the assets. Although probability of this is very less
as insurance companies have to follow regulatory guidelines.

24. SEGMENT INFORMATION

The Company is in the business of providing asset management services to the schemes of Nippon India
Mutual Fund, portfolio management service, and advisory service to the clients / schemes. The primary
segment is identified as asset management services. As such, the Company''s financial results are largely
reflective of the asset management business and accordingly there are no separate reportable segments
as per Ind AS 108 Operating Segment.

25. FAIR VALUE MEASUREMENT
a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level 1 are
measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level
2 measurements are valuations techniques with all material inputs observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level 3 measurements
are valuations not based on observable market data (that is, unobservable inputs). Management applies
judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement
uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement.
The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and
for which fair values are disclosed in the financial statements. To provide an indication about the reliability
of the inputs used in determining fair value, the Company has classified its financial instruments into the
three levels prescribed under the accounting standard. An explanation of each level follows underneath
the table.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives,
and equity securities) is based on quoted market prices at the end of the reporting period. The quoted
market price used for financial assets held by the company is the current bid price. These instruments are
included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-
the-counter derivatives) is determined using valuation techniques which maximize the use of observable
market data and rely as little as possible on entity-specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities.

There are no transfers between levels 1 and 2 during the current year and previous year.

b) Valuation technique used to determine fair value

Mutual Funds: Net Asset Value (NAV) declared by the mutual fund at which units are issued or redeemed

Debt Securities: At Amortised Cost

Alternative Investment Funds: Close ended Alternative Investment Schemes at declared NAV''s
provided by issuer fund which is arrived at based on valuation from independent valuer for unlisted
portfolio companies.

In order to assess Level 3 valuations as per Company''s investment policy, the management reviews the
performance of the investee companies.

26. FINANCIAL RISK MANAGEMENT

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk
management is carried out by a Risk department under the policies approved by the Board of
Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the
other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market
counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to
other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the
Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents
and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by
the management on an ongoing basis and is considered to be high.

2. The Company has extended loans to its subsidiary. Credit risk on the loans has been managed by
the Company. The Company uses expected credit loss model to assess the impairment loss or gain.
Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the
Company to determine incurred and expected credit losses. As the Company has a contractual right
to such receivables as well as has the control over such funds due from customers, the Company
does not estimate any credit risk in relation to such receivables. Further, management believes that
the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on
historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet
payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash
equivalents on the basis of expected cash flows. This is generally carried in accordance with practice
and limits set by the Company after giving due considerations to internal and external factors that could
impact the liquidity position of the Company. Further, since the Company has no external borrowings and
has sufficient cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s
financial assets and liabilities as at reporting date.

C. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument
that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest
rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate
risk and price risk.

i) Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities.
Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that fair value or future cash
flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free
Bonds held by the Company and loans extended by the Company to subsidiaries are at yearly fixed
rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk
Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in
market prices and related market variables including interest rate for investments in debt oriented
mutual funds and debt securities, caused by factors specific to an individual investment, its issuer
and market. The Company''s exposure to price risk arises from diversified investments in mutual funds
held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on
the Company''s investment in Mutual fund and its profit for the period. The analysis is based on the
assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant,
and that all the Company''s investments in mutual funds moved in line with the NAV.

39. The Company has used accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. Further, no instance of audit trail feature being tampered with was
noted in respect of accounting software where the audit trail has been enabled. Additionally, the audit
trail for the current financial year ended March 31, 2025 has been preserved by the Company as per
the statutory requirements for record retention. The audit trail for the previous financial year has been
preserved by the Company as per the statutory requirements for record retention, to the extent it was
enabled and recorded in the prior year.

40. The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure
is not applicable.

41. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

42. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.

43. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45. The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

46. The Company does not has any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

47. The Code on Social Security 2020, relating to employee benefits during employment and post-employment,
has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made
by the company towards Provident Fund and Gratuity. The effective date from which the changes are
applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be
assessed and accounted in period of notification of the relevant provisions.

48. During the quarter ended September 30, 2024, the Company had received a Show Cause Notice from
Securities Exchange Board of India (SEBI) alleging non-compliances of certain provisions of applicable
SEBI guidelines with respect to certain investments made by the Schemes of the Nippon India Mutual
Fund. Based on its current assessment of the said matter, management is of the view that the Company
has complied with relevant provisions of SEBI guidelines. Further, under legal advice, the Company is
engaging with the regulator on the matter. Accordingly, pending the foregoing, no provisions have been
made in these financial results for the year ended March 31, 2025.

49. The figures for the corresponding previous period have been regrouped/reclassified wherever necessary,
to make them comparable.

50. EVENTS OCCURRING AFTER THE REPORTING PERIOD

The Board of Directors have proposed final dividend of I 10.00/- per equity share of I 10/- each for the
financial year 2024-25. This is in addition to the interim dividend of I 8.00/- per equity share declared by
the Board of Directors on October 24, 2024. (Refer note 31 for details).

For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Nippon Life India Asset Management Limited

ICAI Firm Registration Number: 301003E/E300005

per Pikashoo Mutha Sundeep Sikka Ashvin Parekh

Partner Executive Director & CEO Director

Membership Number: 131658 DIN No. 02553654 DIN No. 06559989

Parag Joglekar Ajay Patel

Chief Financial Officer Manager

Valde Varghese

Mumbai Company Secretary

April 28, 2025 ACS: 24937

---

Mar 31, 2025

2.16 Provisions

Provisions are recognized when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to passage of
time is recognized as a finance cost.

2.17 Use of estimates and judgements

In preparing these financial statements,
management has made judgements, estimates
and assumptions which might have an effect
on recognition and measurement of the
reported amounts of assets, liabilities, income
and expenses. Actual results may differ from
these estimates.

The management believes that these estimates
are prudent and reasonable and are based
upon the management''s best knowledge of
current events and actions as on the reporting
date. Actual results could differ from these
estimates and differences between actual
results and estimates are recognised in the
periods in which the results/actions are known or
materialised. Revisions to accounting estimates
are recognised prospectively.

2.18 Employee-Benefits Expense

(i) Short-term Employee Benefits

The undiscounted amount of short term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognized
as an expense during the period when the
employees render the service.

(ii) Post-employment obligations

Defined contribution plans

The Company recognizes contribution payable
to provident fund scheme as an expense, when
the employee renders the related service. If the
contribution payable to the scheme for service
received before the balance sheet date exceeds
the contribution already paid, the deficit payable
to the scheme is recognized as a liability after

deducting the contribution already paid. If
the contribution already paid exceeds the
contribution due for services received before the
balance sheet date, then excess is recognized as
an asset.

Defined benefit plans

The liability or asset recognized in the balance
sheet in respect of defined benefit gratuity
plans is the present value of the defined benefit
obligation at the end of the reporting period less
the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries
using the projected unit credit method.

The present value of the defined benefit
obligation denominated in INR is determined by
discounting the estimated future cash outflows
by reference to market yields at the end of the
reporting period on government bonds that
have terms approximating to the terms of
the related obligation. The estimated future
payments which are denominated in a currency
other than INR, are discounted using market
yields determined by reference to high-quality
corporate bonds that are denominated in the
currency in which the benefits will be paid, and
that have terms approximating to the terms of
the related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan
assets. This cost is included in employee benefit
expense in the statement of profit or loss.

Re-measurement gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognized in the
period in which they occur, directly in other
comprehensive income. They are included in
retained earnings in the statement of changes in
equity and in the balance sheet.

(iii) Other long-term employee benefit obligations
Leave encashment

The liabilities for earned leave are not expected
to be settled wholly within 12 months after the end
of the period in which the employees render the
related service. They are therefore measured as
the present value of expected future payments
to be made in respect of services provided by
employees up to the end of the reporting period
using the projected unit credit method. The
benefits are discounted using the appropriate
market yields at the end of the reporting period
that have terms approximating to the terms of
the related obligation. Re-measurements as a
result of experience adjustments and changes
in actuarial assumptions are recognized in the
statement of profit or loss.

2.19 Share-based payments

Employee Stock Option Plan (ESOP) / Performance
Stock Units (PSU)

Equity settled share based payments to
employees and others providing similar
services are measured at fair value of the equity
instruments at the grant date. Details regarding
the determination of the fair value of equity
settled share based payments transactions are
set out in Note 27.

The fair value determined at the grant date of
the equity settled share based payments is
expensed on a straight line basis over the vesting
period, based on the Company''s estimate of
equity instruments that will eventually vest,
with a corresponding increase in equity. At the
end of each reporting period, the Company
revives its estimate of the number of equity
instruments expected to vest. The impact of the
revision of original estimates, if any, is recognized
in Statement of profit and loss such that the
cumulative expenses reflect the revised estimate,
with a corresponding adjustment to Share based
options outstanding account.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

Reliance Capital Asset Management Employees
Benefit Trust

The Reliance Capital Asset Management
Employees Benefit Trust is administered by the
Company. The Company treats the trust as its

extension and is consolidated in Company''s
financial statements. There are no shares
pending to be allotted in the Trust.

2.20 Earnings per share

a) Basic earnings per share

Basic earnings per share is calculated by dividing
the profit attributable to equity holders of the
Company by the weighted average number of
equity shares outstanding during the financial
year, adjusted for bonus element in equity shares
issued during the year.

b) Diluted earnings per share

Diluted earnings per share adjusts the figures
used in the determination of basic earnings
per share to take into account the after income
tax effect of interest and other financing costs
associated with dilutive potential equity shares,
and the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

2.21 Rounding of amounts

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
crore as per the requirements of Schedule III,
unless otherwise stated.

2.22 New and amended standards

There are no standards that are notified and not
yet effective as on the date.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of I 10 per share. Each holder of
equity shares is entitled to one vote per share.

I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive
any of the remaining assets of the Company, after distribution of all preferential amounts. However,
no such preferential amounts exists currently. The distribution will be in proportion to the number of
equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the
ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Plan (ESOP) / Performance based Stock Unit
(psu), including details regarding options issued, exercised and lapsed during the year and options
outstanding at the end of the reporting year is set out in note 27.

Nature and purpose of reserve:

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be
utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions
of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the general reserve is created by a transfer from one component of equity to another
and is not an item of other comprehensive income, items included in the general reserve will not be
reclassified subsequently to profit or loss.

c) Surplus in the statement of profit and loss

Surplus in the statement of profit and loss that the Company earned/incurred till date, less any
transfers to general reserve, dividends or other distributions paid to Shareholders. Surplus in the
statement of profit and loss include re-measurement loss / (gain) on defined benefit plans, net of
taxes that will not be reclassified to Statement of Profit and Loss.

d) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options
issued to employees under share based payments arrangement over the vesting period. (Refer Note.
27)

The weighted average duration of the defined benefit obligation is 08 years (previous year - 08 years)

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment

risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present
value of the liability requiring higher provision. A fall in the discount rate generally increases the mark
to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the
future salaries of members. As such, an increase in the salary of the members more than assumed
level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount
rate which is determined by reference to market yields at the end of the reporting period on
government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently,
for the plan in India, it has a relatively balanced mix of investments in government securities, and
other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the
plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement
age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the
insurance Company and a default will wipe out all the assets. Although probability of this is very less
as insurance companies have to follow regulatory guidelines.

24. SEGMENT INFORMATION

The Company is in the business of providing asset management services to the schemes of Nippon India
Mutual Fund, portfolio management service, and advisory service to the clients / schemes. The primary
segment is identified as asset management services. As such, the Company''s financial results are largely
reflective of the asset management business and accordingly there are no separate reportable segments
as per Ind AS 108 Operating Segment.

25. FAIR VALUE MEASUREMENT
a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level 1 are
measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level
2 measurements are valuations techniques with all material inputs observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level 3 measurements
are valuations not based on observable market data (that is, unobservable inputs). Management applies
judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement
uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement.
The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and
for which fair values are disclosed in the financial statements. To provide an indication about the reliability
of the inputs used in determining fair value, the Company has classified its financial instruments into the
three levels prescribed under the accounting standard. An explanation of each level follows underneath
the table.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives,
and equity securities) is based on quoted market prices at the end of the reporting period. The quoted
market price used for financial assets held by the company is the current bid price. These instruments are
included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-
the-counter derivatives) is determined using valuation techniques which maximize the use of observable
market data and rely as little as possible on entity-specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities.

There are no transfers between levels 1 and 2 during the current year and previous year.

b) Valuation technique used to determine fair value

Mutual Funds: Net Asset Value (NAV) declared by the mutual fund at which units are issued or redeemed

Debt Securities: At Amortised Cost

Alternative Investment Funds: Close ended Alternative Investment Schemes at declared NAV''s
provided by issuer fund which is arrived at based on valuation from independent valuer for unlisted
portfolio companies.

In order to assess Level 3 valuations as per Company''s investment policy, the management reviews the
performance of the investee companies.

26. FINANCIAL RISK MANAGEMENT

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk
management is carried out by a Risk department under the policies approved by the Board of
Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the
other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market
counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to
other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the
Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents
and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by
the management on an ongoing basis and is considered to be high.

2. The Company has extended loans to its subsidiary. Credit risk on the loans has been managed by
the Company. The Company uses expected credit loss model to assess the impairment loss or gain.
Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the
Company to determine incurred and expected credit losses. As the Company has a contractual right
to such receivables as well as has the control over such funds due from customers, the Company
does not estimate any credit risk in relation to such receivables. Further, management believes that
the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on
historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet
payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash
equivalents on the basis of expected cash flows. This is generally carried in accordance with practice
and limits set by the Company after giving due considerations to internal and external factors that could
impact the liquidity position of the Company. Further, since the Company has no external borrowings and
has sufficient cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s
financial assets and liabilities as at reporting date.

C. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument
that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest
rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate
risk and price risk.

i) Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities.
Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that fair value or future cash
flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free
Bonds held by the Company and loans extended by the Company to subsidiaries are at yearly fixed
rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk
Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in
market prices and related market variables including interest rate for investments in debt oriented
mutual funds and debt securities, caused by factors specific to an individual investment, its issuer
and market. The Company''s exposure to price risk arises from diversified investments in mutual funds
held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on
the Company''s investment in Mutual fund and its profit for the period. The analysis is based on the
assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant,
and that all the Company''s investments in mutual funds moved in line with the NAV.

39. The Company has used accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. Further, no instance of audit trail feature being tampered with was
noted in respect of accounting software where the audit trail has been enabled. Additionally, the audit
trail for the current financial year ended March 31, 2025 has been preserved by the Company as per
the statutory requirements for record retention. The audit trail for the previous financial year has been
preserved by the Company as per the statutory requirements for record retention, to the extent it was
enabled and recorded in the prior year.

40. The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure
is not applicable.

41. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

42. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.

43. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45. The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

46. The Company does not has any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

47. The Code on Social Security 2020, relating to employee benefits during employment and post-employment,
has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made
by the company towards Provident Fund and Gratuity. The effective date from which the changes are
applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be
assessed and accounted in period of notification of the relevant provisions.

48. During the quarter ended September 30, 2024, the Company had received a Show Cause Notice from
Securities Exchange Board of India (SEBI) alleging non-compliances of certain provisions of applicable
SEBI guidelines with respect to certain investments made by the Schemes of the Nippon India Mutual
Fund. Based on its current assessment of the said matter, management is of the view that the Company
has complied with relevant provisions of SEBI guidelines. Further, under legal advice, the Company is
engaging with the regulator on the matter. Accordingly, pending the foregoing, no provisions have been
made in these financial results for the year ended March 31, 2025.

49. The figures for the corresponding previous period have been regrouped/reclassified wherever necessary,
to make them comparable.

50. EVENTS OCCURRING AFTER THE REPORTING PERIOD

The Board of Directors have proposed final dividend of I 10.00/- per equity share of I 10/- each for the
financial year 2024-25. This is in addition to the interim dividend of I 8.00/- per equity share declared by
the Board of Directors on October 24, 2024. (Refer note 31 for details).

For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Nippon Life India Asset Management Limited

ICAI Firm Registration Number: 301003E/E300005

per Pikashoo Mutha Sundeep Sikka Ashvin Parekh

Partner Executive Director & CEO Director

Membership Number: 131658 DIN No. 02553654 DIN No. 06559989

Parag Joglekar Ajay Patel

Chief Financial Officer Manager

Valde Varghese

Mumbai Company Secretary

April 28, 2025 ACS: 24937

---

Mar 31, 2025

2.16 Provisions

Provisions are recognized when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to passage of
time is recognized as a finance cost.

2.17 Use of estimates and judgements

In preparing these financial statements,
management has made judgements, estimates
and assumptions which might have an effect
on recognition and measurement of the
reported amounts of assets, liabilities, income
and expenses. Actual results may differ from
these estimates.

The management believes that these estimates
are prudent and reasonable and are based
upon the management''s best knowledge of
current events and actions as on the reporting
date. Actual results could differ from these
estimates and differences between actual
results and estimates are recognised in the
periods in which the results/actions are known or
materialised. Revisions to accounting estimates
are recognised prospectively.

2.18 Employee-Benefits Expense

(i) Short-term Employee Benefits

The undiscounted amount of short term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognized
as an expense during the period when the
employees render the service.

(ii) Post-employment obligations

Defined contribution plans

The Company recognizes contribution payable
to provident fund scheme as an expense, when
the employee renders the related service. If the
contribution payable to the scheme for service
received before the balance sheet date exceeds
the contribution already paid, the deficit payable
to the scheme is recognized as a liability after

deducting the contribution already paid. If
the contribution already paid exceeds the
contribution due for services received before the
balance sheet date, then excess is recognized as
an asset.

Defined benefit plans

The liability or asset recognized in the balance
sheet in respect of defined benefit gratuity
plans is the present value of the defined benefit
obligation at the end of the reporting period less
the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries
using the projected unit credit method.

The present value of the defined benefit
obligation denominated in INR is determined by
discounting the estimated future cash outflows
by reference to market yields at the end of the
reporting period on government bonds that
have terms approximating to the terms of
the related obligation. The estimated future
payments which are denominated in a currency
other than INR, are discounted using market
yields determined by reference to high-quality
corporate bonds that are denominated in the
currency in which the benefits will be paid, and
that have terms approximating to the terms of
the related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan
assets. This cost is included in employee benefit
expense in the statement of profit or loss.

Re-measurement gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognized in the
period in which they occur, directly in other
comprehensive income. They are included in
retained earnings in the statement of changes in
equity and in the balance sheet.

(iii) Other long-term employee benefit obligations
Leave encashment

The liabilities for earned leave are not expected
to be settled wholly within 12 months after the end
of the period in which the employees render the
related service. They are therefore measured as
the present value of expected future payments
to be made in respect of services provided by
employees up to the end of the reporting period
using the projected unit credit method. The
benefits are discounted using the appropriate
market yields at the end of the reporting period
that have terms approximating to the terms of
the related obligation. Re-measurements as a
result of experience adjustments and changes
in actuarial assumptions are recognized in the
statement of profit or loss.

2.19 Share-based payments

Employee Stock Option Plan (ESOP) / Performance
Stock Units (PSU)

Equity settled share based payments to
employees and others providing similar
services are measured at fair value of the equity
instruments at the grant date. Details regarding
the determination of the fair value of equity
settled share based payments transactions are
set out in Note 27.

The fair value determined at the grant date of
the equity settled share based payments is
expensed on a straight line basis over the vesting
period, based on the Company''s estimate of
equity instruments that will eventually vest,
with a corresponding increase in equity. At the
end of each reporting period, the Company
revives its estimate of the number of equity
instruments expected to vest. The impact of the
revision of original estimates, if any, is recognized
in Statement of profit and loss such that the
cumulative expenses reflect the revised estimate,
with a corresponding adjustment to Share based
options outstanding account.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

Reliance Capital Asset Management Employees
Benefit Trust

The Reliance Capital Asset Management
Employees Benefit Trust is administered by the
Company. The Company treats the trust as its

extension and is consolidated in Company''s
financial statements. There are no shares
pending to be allotted in the Trust.

2.20 Earnings per share

a) Basic earnings per share

Basic earnings per share is calculated by dividing
the profit attributable to equity holders of the
Company by the weighted average number of
equity shares outstanding during the financial
year, adjusted for bonus element in equity shares
issued during the year.

b) Diluted earnings per share

Diluted earnings per share adjusts the figures
used in the determination of basic earnings
per share to take into account the after income
tax effect of interest and other financing costs
associated with dilutive potential equity shares,
and the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

2.21 Rounding of amounts

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
crore as per the requirements of Schedule III,
unless otherwise stated.

2.22 New and amended standards

There are no standards that are notified and not
yet effective as on the date.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of I 10 per share. Each holder of
equity shares is entitled to one vote per share.

I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive
any of the remaining assets of the Company, after distribution of all preferential amounts. However,
no such preferential amounts exists currently. The distribution will be in proportion to the number of
equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the
ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Plan (ESOP) / Performance based Stock Unit
(psu), including details regarding options issued, exercised and lapsed during the year and options
outstanding at the end of the reporting year is set out in note 27.

Nature and purpose of reserve:

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be
utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions
of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the general reserve is created by a transfer from one component of equity to another
and is not an item of other comprehensive income, items included in the general reserve will not be
reclassified subsequently to profit or loss.

c) Surplus in the statement of profit and loss

Surplus in the statement of profit and loss that the Company earned/incurred till date, less any
transfers to general reserve, dividends or other distributions paid to Shareholders. Surplus in the
statement of profit and loss include re-measurement loss / (gain) on defined benefit plans, net of
taxes that will not be reclassified to Statement of Profit and Loss.

d) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options
issued to employees under share based payments arrangement over the vesting period. (Refer Note.
27)

The weighted average duration of the defined benefit obligation is 08 years (previous year - 08 years)

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment

risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present
value of the liability requiring higher provision. A fall in the discount rate generally increases the mark
to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the
future salaries of members. As such, an increase in the salary of the members more than assumed
level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount
rate which is determined by reference to market yields at the end of the reporting period on
government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently,
for the plan in India, it has a relatively balanced mix of investments in government securities, and
other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the
plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement
age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the
insurance Company and a default will wipe out all the assets. Although probability of this is very less
as insurance companies have to follow regulatory guidelines.

24. SEGMENT INFORMATION

The Company is in the business of providing asset management services to the schemes of Nippon India
Mutual Fund, portfolio management service, and advisory service to the clients / schemes. The primary
segment is identified as asset management services. As such, the Company''s financial results are largely
reflective of the asset management business and accordingly there are no separate reportable segments
as per Ind AS 108 Operating Segment.

25. FAIR VALUE MEASUREMENT
a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level 1 are
measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level
2 measurements are valuations techniques with all material inputs observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level 3 measurements
are valuations not based on observable market data (that is, unobservable inputs). Management applies
judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement
uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement.
The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and
for which fair values are disclosed in the financial statements. To provide an indication about the reliability
of the inputs used in determining fair value, the Company has classified its financial instruments into the
three levels prescribed under the accounting standard. An explanation of each level follows underneath
the table.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives,
and equity securities) is based on quoted market prices at the end of the reporting period. The quoted
market price used for financial assets held by the company is the current bid price. These instruments are
included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-
the-counter derivatives) is determined using valuation techniques which maximize the use of observable
market data and rely as little as possible on entity-specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities.

There are no transfers between levels 1 and 2 during the current year and previous year.

b) Valuation technique used to determine fair value

Mutual Funds: Net Asset Value (NAV) declared by the mutual fund at which units are issued or redeemed

Debt Securities: At Amortised Cost

Alternative Investment Funds: Close ended Alternative Investment Schemes at declared NAV''s
provided by issuer fund which is arrived at based on valuation from independent valuer for unlisted
portfolio companies.

In order to assess Level 3 valuations as per Company''s investment policy, the management reviews the
performance of the investee companies.

26. FINANCIAL RISK MANAGEMENT

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk
management is carried out by a Risk department under the policies approved by the Board of
Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the
other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market
counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to
other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the
Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents
and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by
the management on an ongoing basis and is considered to be high.

2. The Company has extended loans to its subsidiary. Credit risk on the loans has been managed by
the Company. The Company uses expected credit loss model to assess the impairment loss or gain.
Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the
Company to determine incurred and expected credit losses. As the Company has a contractual right
to such receivables as well as has the control over such funds due from customers, the Company
does not estimate any credit risk in relation to such receivables. Further, management believes that
the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on
historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet
payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash
equivalents on the basis of expected cash flows. This is generally carried in accordance with practice
and limits set by the Company after giving due considerations to internal and external factors that could
impact the liquidity position of the Company. Further, since the Company has no external borrowings and
has sufficient cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s
financial assets and liabilities as at reporting date.

C. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument
that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest
rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate
risk and price risk.

i) Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities.
Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that fair value or future cash
flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free
Bonds held by the Company and loans extended by the Company to subsidiaries are at yearly fixed
rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk
Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in
market prices and related market variables including interest rate for investments in debt oriented
mutual funds and debt securities, caused by factors specific to an individual investment, its issuer
and market. The Company''s exposure to price risk arises from diversified investments in mutual funds
held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on
the Company''s investment in Mutual fund and its profit for the period. The analysis is based on the
assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant,
and that all the Company''s investments in mutual funds moved in line with the NAV.

39. The Company has used accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. Further, no instance of audit trail feature being tampered with was
noted in respect of accounting software where the audit trail has been enabled. Additionally, the audit
trail for the current financial year ended March 31, 2025 has been preserved by the Company as per
the statutory requirements for record retention. The audit trail for the previous financial year has been
preserved by the Company as per the statutory requirements for record retention, to the extent it was
enabled and recorded in the prior year.

40. The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure
is not applicable.

41. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

42. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.

43. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45. The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

46. The Company does not has any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

47. The Code on Social Security 2020, relating to employee benefits during employment and post-employment,
has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made
by the company towards Provident Fund and Gratuity. The effective date from which the changes are
applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be
assessed and accounted in period of notification of the relevant provisions.

48. During the quarter ended September 30, 2024, the Company had received a Show Cause Notice from
Securities Exchange Board of India (SEBI) alleging non-compliances of certain provisions of applicable
SEBI guidelines with respect to certain investments made by the Schemes of the Nippon India Mutual
Fund. Based on its current assessment of the said matter, management is of the view that the Company
has complied with relevant provisions of SEBI guidelines. Further, under legal advice, the Company is
engaging with the regulator on the matter. Accordingly, pending the foregoing, no provisions have been
made in these financial results for the year ended March 31, 2025.

49. The figures for the corresponding previous period have been regrouped/reclassified wherever necessary,
to make them comparable.

50. EVENTS OCCURRING AFTER THE REPORTING PERIOD

The Board of Directors have proposed final dividend of I 10.00/- per equity share of I 10/- each for the
financial year 2024-25. This is in addition to the interim dividend of I 8.00/- per equity share declared by
the Board of Directors on October 24, 2024. (Refer note 31 for details).

For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Nippon Life India Asset Management Limited

ICAI Firm Registration Number: 301003E/E300005

per Pikashoo Mutha Sundeep Sikka Ashvin Parekh

Partner Executive Director & CEO Director

Membership Number: 131658 DIN No. 02553654 DIN No. 06559989

Parag Joglekar Ajay Patel

Chief Financial Officer Manager

Valde Varghese

Mumbai Company Secretary

April 28, 2025 ACS: 24937

---

Mar 31, 2025

2.16 Provisions

Provisions are recognized when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to passage of
time is recognized as a finance cost.

2.17 Use of estimates and judgements

In preparing these financial statements,
management has made judgements, estimates
and assumptions which might have an effect
on recognition and measurement of the
reported amounts of assets, liabilities, income
and expenses. Actual results may differ from
these estimates.

The management believes that these estimates
are prudent and reasonable and are based
upon the management''s best knowledge of
current events and actions as on the reporting
date. Actual results could differ from these
estimates and differences between actual
results and estimates are recognised in the
periods in which the results/actions are known or
materialised. Revisions to accounting estimates
are recognised prospectively.

2.18 Employee-Benefits Expense

(i) Short-term Employee Benefits

The undiscounted amount of short term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognized
as an expense during the period when the
employees render the service.

(ii) Post-employment obligations

Defined contribution plans

The Company recognizes contribution payable
to provident fund scheme as an expense, when
the employee renders the related service. If the
contribution payable to the scheme for service
received before the balance sheet date exceeds
the contribution already paid, the deficit payable
to the scheme is recognized as a liability after

deducting the contribution already paid. If
the contribution already paid exceeds the
contribution due for services received before the
balance sheet date, then excess is recognized as
an asset.

Defined benefit plans

The liability or asset recognized in the balance
sheet in respect of defined benefit gratuity
plans is the present value of the defined benefit
obligation at the end of the reporting period less
the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries
using the projected unit credit method.

The present value of the defined benefit
obligation denominated in INR is determined by
discounting the estimated future cash outflows
by reference to market yields at the end of the
reporting period on government bonds that
have terms approximating to the terms of
the related obligation. The estimated future
payments which are denominated in a currency
other than INR, are discounted using market
yields determined by reference to high-quality
corporate bonds that are denominated in the
currency in which the benefits will be paid, and
that have terms approximating to the terms of
the related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan
assets. This cost is included in employee benefit
expense in the statement of profit or loss.

Re-measurement gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognized in the
period in which they occur, directly in other
comprehensive income. They are included in
retained earnings in the statement of changes in
equity and in the balance sheet.

(iii) Other long-term employee benefit obligations
Leave encashment

The liabilities for earned leave are not expected
to be settled wholly within 12 months after the end
of the period in which the employees render the
related service. They are therefore measured as
the present value of expected future payments
to be made in respect of services provided by
employees up to the end of the reporting period
using the projected unit credit method. The
benefits are discounted using the appropriate
market yields at the end of the reporting period
that have terms approximating to the terms of
the related obligation. Re-measurements as a
result of experience adjustments and changes
in actuarial assumptions are recognized in the
statement of profit or loss.

2.19 Share-based payments

Employee Stock Option Plan (ESOP) / Performance
Stock Units (PSU)

Equity settled share based payments to
employees and others providing similar
services are measured at fair value of the equity
instruments at the grant date. Details regarding
the determination of the fair value of equity
settled share based payments transactions are
set out in Note 27.

The fair value determined at the grant date of
the equity settled share based payments is
expensed on a straight line basis over the vesting
period, based on the Company''s estimate of
equity instruments that will eventually vest,
with a corresponding increase in equity. At the
end of each reporting period, the Company
revives its estimate of the number of equity
instruments expected to vest. The impact of the
revision of original estimates, if any, is recognized
in Statement of profit and loss such that the
cumulative expenses reflect the revised estimate,
with a corresponding adjustment to Share based
options outstanding account.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

Reliance Capital Asset Management Employees
Benefit Trust

The Reliance Capital Asset Management
Employees Benefit Trust is administered by the
Company. The Company treats the trust as its

extension and is consolidated in Company''s
financial statements. There are no shares
pending to be allotted in the Trust.

2.20 Earnings per share

a) Basic earnings per share

Basic earnings per share is calculated by dividing
the profit attributable to equity holders of the
Company by the weighted average number of
equity shares outstanding during the financial
year, adjusted for bonus element in equity shares
issued during the year.

b) Diluted earnings per share

Diluted earnings per share adjusts the figures
used in the determination of basic earnings
per share to take into account the after income
tax effect of interest and other financing costs
associated with dilutive potential equity shares,
and the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

2.21 Rounding of amounts

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
crore as per the requirements of Schedule III,
unless otherwise stated.

2.22 New and amended standards

There are no standards that are notified and not
yet effective as on the date.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of I 10 per share. Each holder of
equity shares is entitled to one vote per share.

I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive
any of the remaining assets of the Company, after distribution of all preferential amounts. However,
no such preferential amounts exists currently. The distribution will be in proportion to the number of
equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the
ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Plan (ESOP) / Performance based Stock Unit
(psu), including details regarding options issued, exercised and lapsed during the year and options
outstanding at the end of the reporting year is set out in note 27.

Nature and purpose of reserve:

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be
utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions
of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the general reserve is created by a transfer from one component of equity to another
and is not an item of other comprehensive income, items included in the general reserve will not be
reclassified subsequently to profit or loss.

c) Surplus in the statement of profit and loss

Surplus in the statement of profit and loss that the Company earned/incurred till date, less any
transfers to general reserve, dividends or other distributions paid to Shareholders. Surplus in the
statement of profit and loss include re-measurement loss / (gain) on defined benefit plans, net of
taxes that will not be reclassified to Statement of Profit and Loss.

d) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options
issued to employees under share based payments arrangement over the vesting period. (Refer Note.
27)

The weighted average duration of the defined benefit obligation is 08 years (previous year - 08 years)

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment

risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present
value of the liability requiring higher provision. A fall in the discount rate generally increases the mark
to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the
future salaries of members. As such, an increase in the salary of the members more than assumed
level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount
rate which is determined by reference to market yields at the end of the reporting period on
government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently,
for the plan in India, it has a relatively balanced mix of investments in government securities, and
other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the
plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement
age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the
insurance Company and a default will wipe out all the assets. Although probability of this is very less
as insurance companies have to follow regulatory guidelines.

24. SEGMENT INFORMATION

The Company is in the business of providing asset management services to the schemes of Nippon India
Mutual Fund, portfolio management service, and advisory service to the clients / schemes. The primary
segment is identified as asset management services. As such, the Company''s financial results are largely
reflective of the asset management business and accordingly there are no separate reportable segments
as per Ind AS 108 Operating Segment.

25. FAIR VALUE MEASUREMENT
a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level 1 are
measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level
2 measurements are valuations techniques with all material inputs observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level 3 measurements
are valuations not based on observable market data (that is, unobservable inputs). Management applies
judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement
uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement.
The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and
for which fair values are disclosed in the financial statements. To provide an indication about the reliability
of the inputs used in determining fair value, the Company has classified its financial instruments into the
three levels prescribed under the accounting standard. An explanation of each level follows underneath
the table.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives,
and equity securities) is based on quoted market prices at the end of the reporting period. The quoted
market price used for financial assets held by the company is the current bid price. These instruments are
included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-
the-counter derivatives) is determined using valuation techniques which maximize the use of observable
market data and rely as little as possible on entity-specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities.

There are no transfers between levels 1 and 2 during the current year and previous year.

b) Valuation technique used to determine fair value

Mutual Funds: Net Asset Value (NAV) declared by the mutual fund at which units are issued or redeemed

Debt Securities: At Amortised Cost

Alternative Investment Funds: Close ended Alternative Investment Schemes at declared NAV''s
provided by issuer fund which is arrived at based on valuation from independent valuer for unlisted
portfolio companies.

In order to assess Level 3 valuations as per Company''s investment policy, the management reviews the
performance of the investee companies.

26. FINANCIAL RISK MANAGEMENT

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk
management is carried out by a Risk department under the policies approved by the Board of
Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the
other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market
counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to
other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the
Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents
and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by
the management on an ongoing basis and is considered to be high.

2. The Company has extended loans to its subsidiary. Credit risk on the loans has been managed by
the Company. The Company uses expected credit loss model to assess the impairment loss or gain.
Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the
Company to determine incurred and expected credit losses. As the Company has a contractual right
to such receivables as well as has the control over such funds due from customers, the Company
does not estimate any credit risk in relation to such receivables. Further, management believes that
the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on
historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet
payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash
equivalents on the basis of expected cash flows. This is generally carried in accordance with practice
and limits set by the Company after giving due considerations to internal and external factors that could
impact the liquidity position of the Company. Further, since the Company has no external borrowings and
has sufficient cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s
financial assets and liabilities as at reporting date.

C. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument
that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest
rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate
risk and price risk.

i) Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities.
Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that fair value or future cash
flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free
Bonds held by the Company and loans extended by the Company to subsidiaries are at yearly fixed
rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk
Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in
market prices and related market variables including interest rate for investments in debt oriented
mutual funds and debt securities, caused by factors specific to an individual investment, its issuer
and market. The Company''s exposure to price risk arises from diversified investments in mutual funds
held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on
the Company''s investment in Mutual fund and its profit for the period. The analysis is based on the
assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant,
and that all the Company''s investments in mutual funds moved in line with the NAV.

39. The Company has used accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. Further, no instance of audit trail feature being tampered with was
noted in respect of accounting software where the audit trail has been enabled. Additionally, the audit
trail for the current financial year ended March 31, 2025 has been preserved by the Company as per
the statutory requirements for record retention. The audit trail for the previous financial year has been
preserved by the Company as per the statutory requirements for record retention, to the extent it was
enabled and recorded in the prior year.

40. The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure
is not applicable.

41. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

42. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.

43. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45. The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

46. The Company does not has any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

47. The Code on Social Security 2020, relating to employee benefits during employment and post-employment,
has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made
by the company towards Provident Fund and Gratuity. The effective date from which the changes are
applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be
assessed and accounted in period of notification of the relevant provisions.

48. During the quarter ended September 30, 2024, the Company had received a Show Cause Notice from
Securities Exchange Board of India (SEBI) alleging non-compliances of certain provisions of applicable
SEBI guidelines with respect to certain investments made by the Schemes of the Nippon India Mutual
Fund. Based on its current assessment of the said matter, management is of the view that the Company
has complied with relevant provisions of SEBI guidelines. Further, under legal advice, the Company is
engaging with the regulator on the matter. Accordingly, pending the foregoing, no provisions have been
made in these financial results for the year ended March 31, 2025.

49. The figures for the corresponding previous period have been regrouped/reclassified wherever necessary,
to make them comparable.

50. EVENTS OCCURRING AFTER THE REPORTING PERIOD

The Board of Directors have proposed final dividend of I 10.00/- per equity share of I 10/- each for the
financial year 2024-25. This is in addition to the interim dividend of I 8.00/- per equity share declared by
the Board of Directors on October 24, 2024. (Refer note 31 for details).

For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Nippon Life India Asset Management Limited

ICAI Firm Registration Number: 301003E/E300005

per Pikashoo Mutha Sundeep Sikka Ashvin Parekh

Partner Executive Director & CEO Director

Membership Number: 131658 DIN No. 02553654 DIN No. 06559989

Parag Joglekar Ajay Patel

Chief Financial Officer Manager

Valde Varghese

Mumbai Company Secretary

April 28, 2025 ACS: 24937

---

Mar 31, 2025

2.16 Provisions

Provisions are recognized when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to passage of
time is recognized as a finance cost.

2.17 Use of estimates and judgements

In preparing these financial statements,
management has made judgements, estimates
and assumptions which might have an effect
on recognition and measurement of the
reported amounts of assets, liabilities, income
and expenses. Actual results may differ from
these estimates.

The management believes that these estimates
are prudent and reasonable and are based
upon the management''s best knowledge of
current events and actions as on the reporting
date. Actual results could differ from these
estimates and differences between actual
results and estimates are recognised in the
periods in which the results/actions are known or
materialised. Revisions to accounting estimates
are recognised prospectively.

2.18 Employee-Benefits Expense

(i) Short-term Employee Benefits

The undiscounted amount of short term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognized
as an expense during the period when the
employees render the service.

(ii) Post-employment obligations

Defined contribution plans

The Company recognizes contribution payable
to provident fund scheme as an expense, when
the employee renders the related service. If the
contribution payable to the scheme for service
received before the balance sheet date exceeds
the contribution already paid, the deficit payable
to the scheme is recognized as a liability after

deducting the contribution already paid. If
the contribution already paid exceeds the
contribution due for services received before the
balance sheet date, then excess is recognized as
an asset.

Defined benefit plans

The liability or asset recognized in the balance
sheet in respect of defined benefit gratuity
plans is the present value of the defined benefit
obligation at the end of the reporting period less
the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries
using the projected unit credit method.

The present value of the defined benefit
obligation denominated in INR is determined by
discounting the estimated future cash outflows
by reference to market yields at the end of the
reporting period on government bonds that
have terms approximating to the terms of
the related obligation. The estimated future
payments which are denominated in a currency
other than INR, are discounted using market
yields determined by reference to high-quality
corporate bonds that are denominated in the
currency in which the benefits will be paid, and
that have terms approximating to the terms of
the related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan
assets. This cost is included in employee benefit
expense in the statement of profit or loss.

Re-measurement gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognized in the
period in which they occur, directly in other
comprehensive income. They are included in
retained earnings in the statement of changes in
equity and in the balance sheet.

(iii) Other long-term employee benefit obligations
Leave encashment

The liabilities for earned leave are not expected
to be settled wholly within 12 months after the end
of the period in which the employees render the
related service. They are therefore measured as
the present value of expected future payments
to be made in respect of services provided by
employees up to the end of the reporting period
using the projected unit credit method. The
benefits are discounted using the appropriate
market yields at the end of the reporting period
that have terms approximating to the terms of
the related obligation. Re-measurements as a
result of experience adjustments and changes
in actuarial assumptions are recognized in the
statement of profit or loss.

2.19 Share-based payments

Employee Stock Option Plan (ESOP) / Performance
Stock Units (PSU)

Equity settled share based payments to
employees and others providing similar
services are measured at fair value of the equity
instruments at the grant date. Details regarding
the determination of the fair value of equity
settled share based payments transactions are
set out in Note 27.

The fair value determined at the grant date of
the equity settled share based payments is
expensed on a straight line basis over the vesting
period, based on the Company''s estimate of
equity instruments that will eventually vest,
with a corresponding increase in equity. At the
end of each reporting period, the Company
revives its estimate of the number of equity
instruments expected to vest. The impact of the
revision of original estimates, if any, is recognized
in Statement of profit and loss such that the
cumulative expenses reflect the revised estimate,
with a corresponding adjustment to Share based
options outstanding account.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

Reliance Capital Asset Management Employees
Benefit Trust

The Reliance Capital Asset Management
Employees Benefit Trust is administered by the
Company. The Company treats the trust as its

extension and is consolidated in Company''s
financial statements. There are no shares
pending to be allotted in the Trust.

2.20 Earnings per share

a) Basic earnings per share

Basic earnings per share is calculated by dividing
the profit attributable to equity holders of the
Company by the weighted average number of
equity shares outstanding during the financial
year, adjusted for bonus element in equity shares
issued during the year.

b) Diluted earnings per share

Diluted earnings per share adjusts the figures
used in the determination of basic earnings
per share to take into account the after income
tax effect of interest and other financing costs
associated with dilutive potential equity shares,
and the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

2.21 Rounding of amounts

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
crore as per the requirements of Schedule III,
unless otherwise stated.

2.22 New and amended standards

There are no standards that are notified and not
yet effective as on the date.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of I 10 per share. Each holder of
equity shares is entitled to one vote per share.

I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive
any of the remaining assets of the Company, after distribution of all preferential amounts. However,
no such preferential amounts exists currently. The distribution will be in proportion to the number of
equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the
ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Plan (ESOP) / Performance based Stock Unit
(psu), including details regarding options issued, exercised and lapsed during the year and options
outstanding at the end of the reporting year is set out in note 27.

Nature and purpose of reserve:

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be
utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions
of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the general reserve is created by a transfer from one component of equity to another
and is not an item of other comprehensive income, items included in the general reserve will not be
reclassified subsequently to profit or loss.

c) Surplus in the statement of profit and loss

Surplus in the statement of profit and loss that the Company earned/incurred till date, less any
transfers to general reserve, dividends or other distributions paid to Shareholders. Surplus in the
statement of profit and loss include re-measurement loss / (gain) on defined benefit plans, net of
taxes that will not be reclassified to Statement of Profit and Loss.

d) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options
issued to employees under share based payments arrangement over the vesting period. (Refer Note.
27)

The weighted average duration of the defined benefit obligation is 08 years (previous year - 08 years)

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment

risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present
value of the liability requiring higher provision. A fall in the discount rate generally increases the mark
to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the
future salaries of members. As such, an increase in the salary of the members more than assumed
level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount
rate which is determined by reference to market yields at the end of the reporting period on
government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently,
for the plan in India, it has a relatively balanced mix of investments in government securities, and
other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the
plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement
age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the
insurance Company and a default will wipe out all the assets. Although probability of this is very less
as insurance companies have to follow regulatory guidelines.

24. SEGMENT INFORMATION

The Company is in the business of providing asset management services to the schemes of Nippon India
Mutual Fund, portfolio management service, and advisory service to the clients / schemes. The primary
segment is identified as asset management services. As such, the Company''s financial results are largely
reflective of the asset management business and accordingly there are no separate reportable segments
as per Ind AS 108 Operating Segment.

25. FAIR VALUE MEASUREMENT
a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level 1 are
measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level
2 measurements are valuations techniques with all material inputs observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level 3 measurements
are valuations not based on observable market data (that is, unobservable inputs). Management applies
judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement
uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement.
The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and
for which fair values are disclosed in the financial statements. To provide an indication about the reliability
of the inputs used in determining fair value, the Company has classified its financial instruments into the
three levels prescribed under the accounting standard. An explanation of each level follows underneath
the table.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives,
and equity securities) is based on quoted market prices at the end of the reporting period. The quoted
market price used for financial assets held by the company is the current bid price. These instruments are
included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-
the-counter derivatives) is determined using valuation techniques which maximize the use of observable
market data and rely as little as possible on entity-specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities.

There are no transfers between levels 1 and 2 during the current year and previous year.

b) Valuation technique used to determine fair value

Mutual Funds: Net Asset Value (NAV) declared by the mutual fund at which units are issued or redeemed

Debt Securities: At Amortised Cost

Alternative Investment Funds: Close ended Alternative Investment Schemes at declared NAV''s
provided by issuer fund which is arrived at based on valuation from independent valuer for unlisted
portfolio companies.

In order to assess Level 3 valuations as per Company''s investment policy, the management reviews the
performance of the investee companies.

26. FINANCIAL RISK MANAGEMENT

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk
management is carried out by a Risk department under the policies approved by the Board of
Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the
other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market
counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to
other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the
Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents
and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by
the management on an ongoing basis and is considered to be high.

2. The Company has extended loans to its subsidiary. Credit risk on the loans has been managed by
the Company. The Company uses expected credit loss model to assess the impairment loss or gain.
Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the
Company to determine incurred and expected credit losses. As the Company has a contractual right
to such receivables as well as has the control over such funds due from customers, the Company
does not estimate any credit risk in relation to such receivables. Further, management believes that
the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on
historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet
payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash
equivalents on the basis of expected cash flows. This is generally carried in accordance with practice
and limits set by the Company after giving due considerations to internal and external factors that could
impact the liquidity position of the Company. Further, since the Company has no external borrowings and
has sufficient cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s
financial assets and liabilities as at reporting date.

C. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument
that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest
rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate
risk and price risk.

i) Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities.
Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that fair value or future cash
flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free
Bonds held by the Company and loans extended by the Company to subsidiaries are at yearly fixed
rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk
Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in
market prices and related market variables including interest rate for investments in debt oriented
mutual funds and debt securities, caused by factors specific to an individual investment, its issuer
and market. The Company''s exposure to price risk arises from diversified investments in mutual funds
held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on
the Company''s investment in Mutual fund and its profit for the period. The analysis is based on the
assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant,
and that all the Company''s investments in mutual funds moved in line with the NAV.

39. The Company has used accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. Further, no instance of audit trail feature being tampered with was
noted in respect of accounting software where the audit trail has been enabled. Additionally, the audit
trail for the current financial year ended March 31, 2025 has been preserved by the Company as per
the statutory requirements for record retention. The audit trail for the previous financial year has been
preserved by the Company as per the statutory requirements for record retention, to the extent it was
enabled and recorded in the prior year.

40. The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure
is not applicable.

41. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

42. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.

43. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45. The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

46. The Company does not has any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

47. The Code on Social Security 2020, relating to employee benefits during employment and post-employment,
has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made
by the company towards Provident Fund and Gratuity. The effective date from which the changes are
applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be
assessed and accounted in period of notification of the relevant provisions.

48. During the quarter ended September 30, 2024, the Company had received a Show Cause Notice from
Securities Exchange Board of India (SEBI) alleging non-compliances of certain provisions of applicable
SEBI guidelines with respect to certain investments made by the Schemes of the Nippon India Mutual
Fund. Based on its current assessment of the said matter, management is of the view that the Company
has complied with relevant provisions of SEBI guidelines. Further, under legal advice, the Company is
engaging with the regulator on the matter. Accordingly, pending the foregoing, no provisions have been
made in these financial results for the year ended March 31, 2025.

49. The figures for the corresponding previous period have been regrouped/reclassified wherever necessary,
to make them comparable.

50. EVENTS OCCURRING AFTER THE REPORTING PERIOD

The Board of Directors have proposed final dividend of I 10.00/- per equity share of I 10/- each for the
financial year 2024-25. This is in addition to the interim dividend of I 8.00/- per equity share declared by
the Board of Directors on October 24, 2024. (Refer note 31 for details).

For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Nippon Life India Asset Management Limited

ICAI Firm Registration Number: 301003E/E300005

per Pikashoo Mutha Sundeep Sikka Ashvin Parekh

Partner Executive Director & CEO Director

Membership Number: 131658 DIN No. 02553654 DIN No. 06559989

Parag Joglekar Ajay Patel

Chief Financial Officer Manager

Valde Varghese

Mumbai Company Secretary

April 28, 2025 ACS: 24937

---

Mar 31, 2025

2.16 Provisions

Provisions are recognized when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to passage of
time is recognized as a finance cost.

2.17 Use of estimates and judgements

In preparing these financial statements,
management has made judgements, estimates
and assumptions which might have an effect
on recognition and measurement of the
reported amounts of assets, liabilities, income
and expenses. Actual results may differ from
these estimates.

The management believes that these estimates
are prudent and reasonable and are based
upon the management''s best knowledge of
current events and actions as on the reporting
date. Actual results could differ from these
estimates and differences between actual
results and estimates are recognised in the
periods in which the results/actions are known or
materialised. Revisions to accounting estimates
are recognised prospectively.

2.18 Employee-Benefits Expense

(i) Short-term Employee Benefits

The undiscounted amount of short term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognized
as an expense during the period when the
employees render the service.

(ii) Post-employment obligations

Defined contribution plans

The Company recognizes contribution payable
to provident fund scheme as an expense, when
the employee renders the related service. If the
contribution payable to the scheme for service
received before the balance sheet date exceeds
the contribution already paid, the deficit payable
to the scheme is recognized as a liability after

deducting the contribution already paid. If
the contribution already paid exceeds the
contribution due for services received before the
balance sheet date, then excess is recognized as
an asset.

Defined benefit plans

The liability or asset recognized in the balance
sheet in respect of defined benefit gratuity
plans is the present value of the defined benefit
obligation at the end of the reporting period less
the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries
using the projected unit credit method.

The present value of the defined benefit
obligation denominated in INR is determined by
discounting the estimated future cash outflows
by reference to market yields at the end of the
reporting period on government bonds that
have terms approximating to the terms of
the related obligation. The estimated future
payments which are denominated in a currency
other than INR, are discounted using market
yields determined by reference to high-quality
corporate bonds that are denominated in the
currency in which the benefits will be paid, and
that have terms approximating to the terms of
the related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan
assets. This cost is included in employee benefit
expense in the statement of profit or loss.

Re-measurement gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognized in the
period in which they occur, directly in other
comprehensive income. They are included in
retained earnings in the statement of changes in
equity and in the balance sheet.

(iii) Other long-term employee benefit obligations
Leave encashment

The liabilities for earned leave are not expected
to be settled wholly within 12 months after the end
of the period in which the employees render the
related service. They are therefore measured as
the present value of expected future payments
to be made in respect of services provided by
employees up to the end of the reporting period
using the projected unit credit method. The
benefits are discounted using the appropriate
market yields at the end of the reporting period
that have terms approximating to the terms of
the related obligation. Re-measurements as a
result of experience adjustments and changes
in actuarial assumptions are recognized in the
statement of profit or loss.

2.19 Share-based payments

Employee Stock Option Plan (ESOP) / Performance
Stock Units (PSU)

Equity settled share based payments to
employees and others providing similar
services are measured at fair value of the equity
instruments at the grant date. Details regarding
the determination of the fair value of equity
settled share based payments transactions are
set out in Note 27.

The fair value determined at the grant date of
the equity settled share based payments is
expensed on a straight line basis over the vesting
period, based on the Company''s estimate of
equity instruments that will eventually vest,
with a corresponding increase in equity. At the
end of each reporting period, the Company
revives its estimate of the number of equity
instruments expected to vest. The impact of the
revision of original estimates, if any, is recognized
in Statement of profit and loss such that the
cumulative expenses reflect the revised estimate,
with a corresponding adjustment to Share based
options outstanding account.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

Reliance Capital Asset Management Employees
Benefit Trust

The Reliance Capital Asset Management
Employees Benefit Trust is administered by the
Company. The Company treats the trust as its

extension and is consolidated in Company''s
financial statements. There are no shares
pending to be allotted in the Trust.

2.20 Earnings per share

a) Basic earnings per share

Basic earnings per share is calculated by dividing
the profit attributable to equity holders of the
Company by the weighted average number of
equity shares outstanding during the financial
year, adjusted for bonus element in equity shares
issued during the year.

b) Diluted earnings per share

Diluted earnings per share adjusts the figures
used in the determination of basic earnings
per share to take into account the after income
tax effect of interest and other financing costs
associated with dilutive potential equity shares,
and the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

2.21 Rounding of amounts

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
crore as per the requirements of Schedule III,
unless otherwise stated.

2.22 New and amended standards

There are no standards that are notified and not
yet effective as on the date.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of I 10 per share. Each holder of
equity shares is entitled to one vote per share.

I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive
any of the remaining assets of the Company, after distribution of all preferential amounts. However,
no such preferential amounts exists currently. The distribution will be in proportion to the number of
equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the
ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Plan (ESOP) / Performance based Stock Unit
(psu), including details regarding options issued, exercised and lapsed during the year and options
outstanding at the end of the reporting year is set out in note 27.

Nature and purpose of reserve:

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be
utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions
of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the general reserve is created by a transfer from one component of equity to another
and is not an item of other comprehensive income, items included in the general reserve will not be
reclassified subsequently to profit or loss.

c) Surplus in the statement of profit and loss

Surplus in the statement of profit and loss that the Company earned/incurred till date, less any
transfers to general reserve, dividends or other distributions paid to Shareholders. Surplus in the
statement of profit and loss include re-measurement loss / (gain) on defined benefit plans, net of
taxes that will not be reclassified to Statement of Profit and Loss.

d) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options
issued to employees under share based payments arrangement over the vesting period. (Refer Note.
27)

The weighted average duration of the defined benefit obligation is 08 years (previous year - 08 years)

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment

risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present
value of the liability requiring higher provision. A fall in the discount rate generally increases the mark
to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the
future salaries of members. As such, an increase in the salary of the members more than assumed
level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount
rate which is determined by reference to market yields at the end of the reporting period on
government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently,
for the plan in India, it has a relatively balanced mix of investments in government securities, and
other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the
plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement
age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the
insurance Company and a default will wipe out all the assets. Although probability of this is very less
as insurance companies have to follow regulatory guidelines.

24. SEGMENT INFORMATION

The Company is in the business of providing asset management services to the schemes of Nippon India
Mutual Fund, portfolio management service, and advisory service to the clients / schemes. The primary
segment is identified as asset management services. As such, the Company''s financial results are largely
reflective of the asset management business and accordingly there are no separate reportable segments
as per Ind AS 108 Operating Segment.

25. FAIR VALUE MEASUREMENT
a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level 1 are
measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level
2 measurements are valuations techniques with all material inputs observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level 3 measurements
are valuations not based on observable market data (that is, unobservable inputs). Management applies
judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement
uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement.
The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and
for which fair values are disclosed in the financial statements. To provide an indication about the reliability
of the inputs used in determining fair value, the Company has classified its financial instruments into the
three levels prescribed under the accounting standard. An explanation of each level follows underneath
the table.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives,
and equity securities) is based on quoted market prices at the end of the reporting period. The quoted
market price used for financial assets held by the company is the current bid price. These instruments are
included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-
the-counter derivatives) is determined using valuation techniques which maximize the use of observable
market data and rely as little as possible on entity-specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities.

There are no transfers between levels 1 and 2 during the current year and previous year.

b) Valuation technique used to determine fair value

Mutual Funds: Net Asset Value (NAV) declared by the mutual fund at which units are issued or redeemed

Debt Securities: At Amortised Cost

Alternative Investment Funds: Close ended Alternative Investment Schemes at declared NAV''s
provided by issuer fund which is arrived at based on valuation from independent valuer for unlisted
portfolio companies.

In order to assess Level 3 valuations as per Company''s investment policy, the management reviews the
performance of the investee companies.

26. FINANCIAL RISK MANAGEMENT

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk
management is carried out by a Risk department under the policies approved by the Board of
Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the
other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market
counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to
other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the
Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents
and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by
the management on an ongoing basis and is considered to be high.

2. The Company has extended loans to its subsidiary. Credit risk on the loans has been managed by
the Company. The Company uses expected credit loss model to assess the impairment loss or gain.
Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the
Company to determine incurred and expected credit losses. As the Company has a contractual right
to such receivables as well as has the control over such funds due from customers, the Company
does not estimate any credit risk in relation to such receivables. Further, management believes that
the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on
historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet
payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash
equivalents on the basis of expected cash flows. This is generally carried in accordance with practice
and limits set by the Company after giving due considerations to internal and external factors that could
impact the liquidity position of the Company. Further, since the Company has no external borrowings and
has sufficient cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s
financial assets and liabilities as at reporting date.

C. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument
that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest
rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate
risk and price risk.

i) Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities.
Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that fair value or future cash
flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free
Bonds held by the Company and loans extended by the Company to subsidiaries are at yearly fixed
rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk
Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in
market prices and related market variables including interest rate for investments in debt oriented
mutual funds and debt securities, caused by factors specific to an individual investment, its issuer
and market. The Company''s exposure to price risk arises from diversified investments in mutual funds
held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on
the Company''s investment in Mutual fund and its profit for the period. The analysis is based on the
assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant,
and that all the Company''s investments in mutual funds moved in line with the NAV.

39. The Company has used accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. Further, no instance of audit trail feature being tampered with was
noted in respect of accounting software where the audit trail has been enabled. Additionally, the audit
trail for the current financial year ended March 31, 2025 has been preserved by the Company as per
the statutory requirements for record retention. The audit trail for the previous financial year has been
preserved by the Company as per the statutory requirements for record retention, to the extent it was
enabled and recorded in the prior year.

40. The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure
is not applicable.

41. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

42. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.

43. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45. The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

46. The Company does not has any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

47. The Code on Social Security 2020, relating to employee benefits during employment and post-employment,
has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made
by the company towards Provident Fund and Gratuity. The effective date from which the changes are
applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be
assessed and accounted in period of notification of the relevant provisions.

48. During the quarter ended September 30, 2024, the Company had received a Show Cause Notice from
Securities Exchange Board of India (SEBI) alleging non-compliances of certain provisions of applicable
SEBI guidelines with respect to certain investments made by the Schemes of the Nippon India Mutual
Fund. Based on its current assessment of the said matter, management is of the view that the Company
has complied with relevant provisions of SEBI guidelines. Further, under legal advice, the Company is
engaging with the regulator on the matter. Accordingly, pending the foregoing, no provisions have been
made in these financial results for the year ended March 31, 2025.

49. The figures for the corresponding previous period have been regrouped/reclassified wherever necessary,
to make them comparable.

50. EVENTS OCCURRING AFTER THE REPORTING PERIOD

The Board of Directors have proposed final dividend of I 10.00/- per equity share of I 10/- each for the
financial year 2024-25. This is in addition to the interim dividend of I 8.00/- per equity share declared by
the Board of Directors on October 24, 2024. (Refer note 31 for details).

For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Nippon Life India Asset Management Limited

ICAI Firm Registration Number: 301003E/E300005

per Pikashoo Mutha Sundeep Sikka Ashvin Parekh

Partner Executive Director & CEO Director

Membership Number: 131658 DIN No. 02553654 DIN No. 06559989

Parag Joglekar Ajay Patel

Chief Financial Officer Manager

Valde Varghese

Mumbai Company Secretary

April 28, 2025 ACS: 24937

---

Mar 31, 2025

2.16 Provisions

Provisions are recognized when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to passage of
time is recognized as a finance cost.

2.17 Use of estimates and judgements

In preparing these financial statements,
management has made judgements, estimates
and assumptions which might have an effect
on recognition and measurement of the
reported amounts of assets, liabilities, income
and expenses. Actual results may differ from
these estimates.

The management believes that these estimates
are prudent and reasonable and are based
upon the management''s best knowledge of
current events and actions as on the reporting
date. Actual results could differ from these
estimates and differences between actual
results and estimates are recognised in the
periods in which the results/actions are known or
materialised. Revisions to accounting estimates
are recognised prospectively.

2.18 Employee-Benefits Expense

(i) Short-term Employee Benefits

The undiscounted amount of short term employee
benefits expected to be paid in exchange for the
services rendered by employees are recognized
as an expense during the period when the
employees render the service.

(ii) Post-employment obligations

Defined contribution plans

The Company recognizes contribution payable
to provident fund scheme as an expense, when
the employee renders the related service. If the
contribution payable to the scheme for service
received before the balance sheet date exceeds
the contribution already paid, the deficit payable
to the scheme is recognized as a liability after

deducting the contribution already paid. If
the contribution already paid exceeds the
contribution due for services received before the
balance sheet date, then excess is recognized as
an asset.

Defined benefit plans

The liability or asset recognized in the balance
sheet in respect of defined benefit gratuity
plans is the present value of the defined benefit
obligation at the end of the reporting period less
the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries
using the projected unit credit method.

The present value of the defined benefit
obligation denominated in INR is determined by
discounting the estimated future cash outflows
by reference to market yields at the end of the
reporting period on government bonds that
have terms approximating to the terms of
the related obligation. The estimated future
payments which are denominated in a currency
other than INR, are discounted using market
yields determined by reference to high-quality
corporate bonds that are denominated in the
currency in which the benefits will be paid, and
that have terms approximating to the terms of
the related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan
assets. This cost is included in employee benefit
expense in the statement of profit or loss.

Re-measurement gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognized in the
period in which they occur, directly in other
comprehensive income. They are included in
retained earnings in the statement of changes in
equity and in the balance sheet.

(iii) Other long-term employee benefit obligations
Leave encashment

The liabilities for earned leave are not expected
to be settled wholly within 12 months after the end
of the period in which the employees render the
related service. They are therefore measured as
the present value of expected future payments
to be made in respect of services provided by
employees up to the end of the reporting period
using the projected unit credit method. The
benefits are discounted using the appropriate
market yields at the end of the reporting period
that have terms approximating to the terms of
the related obligation. Re-measurements as a
result of experience adjustments and changes
in actuarial assumptions are recognized in the
statement of profit or loss.

2.19 Share-based payments

Employee Stock Option Plan (ESOP) / Performance
Stock Units (PSU)

Equity settled share based payments to
employees and others providing similar
services are measured at fair value of the equity
instruments at the grant date. Details regarding
the determination of the fair value of equity
settled share based payments transactions are
set out in Note 27.

The fair value determined at the grant date of
the equity settled share based payments is
expensed on a straight line basis over the vesting
period, based on the Company''s estimate of
equity instruments that will eventually vest,
with a corresponding increase in equity. At the
end of each reporting period, the Company
revives its estimate of the number of equity
instruments expected to vest. The impact of the
revision of original estimates, if any, is recognized
in Statement of profit and loss such that the
cumulative expenses reflect the revised estimate,
with a corresponding adjustment to Share based
options outstanding account.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

Reliance Capital Asset Management Employees
Benefit Trust

The Reliance Capital Asset Management
Employees Benefit Trust is administered by the
Company. The Company treats the trust as its

extension and is consolidated in Company''s
financial statements. There are no shares
pending to be allotted in the Trust.

2.20 Earnings per share

a) Basic earnings per share

Basic earnings per share is calculated by dividing
the profit attributable to equity holders of the
Company by the weighted average number of
equity shares outstanding during the financial
year, adjusted for bonus element in equity shares
issued during the year.

b) Diluted earnings per share

Diluted earnings per share adjusts the figures
used in the determination of basic earnings
per share to take into account the after income
tax effect of interest and other financing costs
associated with dilutive potential equity shares,
and the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

2.21 Rounding of amounts

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
crore as per the requirements of Schedule III,
unless otherwise stated.

2.22 New and amended standards

There are no standards that are notified and not
yet effective as on the date.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of I 10 per share. Each holder of
equity shares is entitled to one vote per share.

I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive
any of the remaining assets of the Company, after distribution of all preferential amounts. However,
no such preferential amounts exists currently. The distribution will be in proportion to the number of
equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the
ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Plan (ESOP) / Performance based Stock Unit
(psu), including details regarding options issued, exercised and lapsed during the year and options
outstanding at the end of the reporting year is set out in note 27.

Nature and purpose of reserve:

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be
utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions
of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the general reserve is created by a transfer from one component of equity to another
and is not an item of other comprehensive income, items included in the general reserve will not be
reclassified subsequently to profit or loss.

c) Surplus in the statement of profit and loss

Surplus in the statement of profit and loss that the Company earned/incurred till date, less any
transfers to general reserve, dividends or other distributions paid to Shareholders. Surplus in the
statement of profit and loss include re-measurement loss / (gain) on defined benefit plans, net of
taxes that will not be reclassified to Statement of Profit and Loss.

d) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options
issued to employees under share based payments arrangement over the vesting period. (Refer Note.
27)

The weighted average duration of the defined benefit obligation is 08 years (previous year - 08 years)

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment

risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present
value of the liability requiring higher provision. A fall in the discount rate generally increases the mark
to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the
future salaries of members. As such, an increase in the salary of the members more than assumed
level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount
rate which is determined by reference to market yields at the end of the reporting period on
government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently,
for the plan in India, it has a relatively balanced mix of investments in government securities, and
other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the
plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement
age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the
insurance Company and a default will wipe out all the assets. Although probability of this is very less
as insurance companies have to follow regulatory guidelines.

24. SEGMENT INFORMATION

The Company is in the business of providing asset management services to the schemes of Nippon India
Mutual Fund, portfolio management service, and advisory service to the clients / schemes. The primary
segment is identified as asset management services. As such, the Company''s financial results are largely
reflective of the asset management business and accordingly there are no separate reportable segments
as per Ind AS 108 Operating Segment.

25. FAIR VALUE MEASUREMENT
a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level 1 are
measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level
2 measurements are valuations techniques with all material inputs observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level 3 measurements
are valuations not based on observable market data (that is, unobservable inputs). Management applies
judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement
uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement.
The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and
for which fair values are disclosed in the financial statements. To provide an indication about the reliability
of the inputs used in determining fair value, the Company has classified its financial instruments into the
three levels prescribed under the accounting standard. An explanation of each level follows underneath
the table.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives,
and equity securities) is based on quoted market prices at the end of the reporting period. The quoted
market price used for financial assets held by the company is the current bid price. These instruments are
included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-
the-counter derivatives) is determined using valuation techniques which maximize the use of observable
market data and rely as little as possible on entity-specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities.

There are no transfers between levels 1 and 2 during the current year and previous year.

b) Valuation technique used to determine fair value

Mutual Funds: Net Asset Value (NAV) declared by the mutual fund at which units are issued or redeemed

Debt Securities: At Amortised Cost

Alternative Investment Funds: Close ended Alternative Investment Schemes at declared NAV''s
provided by issuer fund which is arrived at based on valuation from independent valuer for unlisted
portfolio companies.

In order to assess Level 3 valuations as per Company''s investment policy, the management reviews the
performance of the investee companies.

26. FINANCIAL RISK MANAGEMENT

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk
management is carried out by a Risk department under the policies approved by the Board of
Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the
other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market
counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to
other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the
Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents
and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by
the management on an ongoing basis and is considered to be high.

2. The Company has extended loans to its subsidiary. Credit risk on the loans has been managed by
the Company. The Company uses expected credit loss model to assess the impairment loss or gain.
Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the
Company to determine incurred and expected credit losses. As the Company has a contractual right
to such receivables as well as has the control over such funds due from customers, the Company
does not estimate any credit risk in relation to such receivables. Further, management believes that
the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on
historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet
payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash
equivalents on the basis of expected cash flows. This is generally carried in accordance with practice
and limits set by the Company after giving due considerations to internal and external factors that could
impact the liquidity position of the Company. Further, since the Company has no external borrowings and
has sufficient cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s
financial assets and liabilities as at reporting date.

C. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows related to financial instrument
that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest
rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate
risk and price risk.

i) Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities.
Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that fair value or future cash
flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free
Bonds held by the Company and loans extended by the Company to subsidiaries are at yearly fixed
rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk
Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in
market prices and related market variables including interest rate for investments in debt oriented
mutual funds and debt securities, caused by factors specific to an individual investment, its issuer
and market. The Company''s exposure to price risk arises from diversified investments in mutual funds
held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on
the Company''s investment in Mutual fund and its profit for the period. The analysis is based on the
assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant,
and that all the Company''s investments in mutual funds moved in line with the NAV.

39. The Company has used accounting software for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software. Further, no instance of audit trail feature being tampered with was
noted in respect of accounting software where the audit trail has been enabled. Additionally, the audit
trail for the current financial year ended March 31, 2025 has been preserved by the Company as per
the statutory requirements for record retention. The audit trail for the previous financial year has been
preserved by the Company as per the statutory requirements for record retention, to the extent it was
enabled and recorded in the prior year.

40. The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure
is not applicable.

41. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

42. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.

43. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45. The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

46. The Company does not has any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

47. The Code on Social Security 2020, relating to employee benefits during employment and post-employment,
has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made
by the company towards Provident Fund and Gratuity. The effective date from which the changes are
applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be
assessed and accounted in period of notification of the relevant provisions.

48. During the quarter ended September 30, 2024, the Company had received a Show Cause Notice from
Securities Exchange Board of India (SEBI) alleging non-compliances of certain provisions of applicable
SEBI guidelines with respect to certain investments made by the Schemes of the Nippon India Mutual
Fund. Based on its current assessment of the said matter, management is of the view that the Company
has complied with relevant provisions of SEBI guidelines. Further, under legal advice, the Company is
engaging with the regulator on the matter. Accordingly, pending the foregoing, no provisions have been
made in these financial results for the year ended March 31, 2025.

49. The figures for the corresponding previous period have been regrouped/reclassified wherever necessary,
to make them comparable.

50. EVENTS OCCURRING AFTER THE REPORTING PERIOD

The Board of Directors have proposed final dividend of I 10.00/- per equity share of I 10/- each for the
financial year 2024-25. This is in addition to the interim dividend of I 8.00/- per equity share declared by
the Board of Directors on October 24, 2024. (Refer note 31 for details).

For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Nippon Life India Asset Management Limited

ICAI Firm Registration Number: 301003E/E300005

per Pikashoo Mutha Sundeep Sikka Ashvin Parekh

Partner Executive Director & CEO Director

Membership Number: 131658 DIN No. 02553654 DIN No. 06559989

Parag Joglekar Ajay Patel

Chief Financial Officer Manager

Valde Varghese

Mumbai Company Secretary

April 28, 2025 ACS: 24937

---

Mar 31, 2024

s Provisions, contingent liabilities and contingent assets

The Company creates a provision when there is a present obligation as a result of past events and it is probable that
there will be outflow of resources and a reliable estimate of the obligation can be made of the amount of the obligation.
Contingent liabilities are not recognised but are disclosed in the notes to the standalone financial statements. A disclosure
for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not,
require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer
probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are neither recognised nor disclosed in the standalone financial statements.

t Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset
and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be
enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the
counterparty.

u Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognised in respect of
employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when
the liabilities are settled.

(ii) Post-employment obligations
Defined benefit plans
Gratuity

The Company''s gratuity benefit scheme is a defined benefit plan. The Company''s net obligation in respect of the gratuity
benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their
service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of
any plan assets, if any, is deducted.

The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the
Projected Accrued Benefit Method (same as Projected Unit Credit Method), which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final
obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining
the present value of the obligation under defined benefit plan, are based on the market yields on Government securities
as at the balance sheet date.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in other comprehensive income. They are included in retained
earnings in the statement of changes in equity and in the balance sheet.

Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss.

Defined contribution plans
Provident fund

Company''s contributions to the recognised provident fund, which is a defined contribution scheme, are charged to the
Statement of Profit and Loss.

(iii) Other long-term employee benefit obligations

Compensated absences (Leave Encashment)

Leave encashment which is a defined benefit, is accrued for based on an actuarial valuation at the balance sheet date
carried out by an independent actuary.

v Share-based payments

(i) Employee Stock Option Scheme (ESOS)

The employees of the Company and its subsidiaries are entitled for grant of stock options (equity shares), based on the
eligibility criteria set in the ESOS plan of the Company. The fair value of options granted under ESOS is recognized as
an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined
reference to the fair value of the options granted excluding the impact of any service conditions.

The total expense is recognised over the vesting period, which is the period over which all of the specified vesting
conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are
expected to vest based on the service conditions. It recognises the impact of the revision to original estimates, if any, in
profit and loss, with a corresponding adjustment to equity.

(ii) ESOS Trust

The Company''s ESOS scheme is administered through the RCAP ESOS Trust. The Company treats the trust as its
extension and shares held by RCAP ESOS Trust are treated as treasury shares and accordingly RCAP ESOS Trust has
been consolidated in the Company''s books.

w Contributed Equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.

Treasury shares are presented as a deduction from other equity and no gain or loss is recognised on the purchase, sale,
issue or cancellation of such shares.

x Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of
the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

y Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the weighted
average number of equity shares outstanding during the financial year, adjusted for bonus element in equity shares
issued during the year, if any and excluding treasury shares.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and the
weighted average number of additional equity shares that would have been outstanding assuming the conversion of all
dilutive potential equity shares.

z Rounding of amounts

All amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest lakh as per the
requirements of Schedule III, unless otherwise stated.

3. Critical estimates and judgements

As per the provisions of the Code, the fair value and liquidation value of the assets of the Company as on the insolvency
commencement date is required to be determined in accordance with Regulation 27 read with Regulation 35 of the Insolvency and
Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The Administrator of RCAP
duly appointed by the Hon''ble National Company Law Tribunal, Mumbai, is obligated to appoint 2 registered valuers to determine
such valuation and submit the report. In furtherance thereof, the Administrator had appointed 2 registered valuers who have
submitted their report. As per Ind AS 36- “Impairment of Assets”, impairment testing of assets is to be conducted on an annual
basis. Upon implementation of the Approved Resolution Plan, the Company will consider carrying out a comprehensive review of
all the assets including investments, other assets and intangible assets, liabilities and accordingly provide for impairment loss on
assets and write back of liabilities, if any.

Subject to the above, the Company makes estimates and assumptions that affect the amounts recognised in the standalone
financial statements, and the carrying amounts of assets and liabilities within the next financial year. Estimates and judgements
are continually evaluated and are based on management''s experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances. Management also makes certain judgements, apart from those
involving estimations, in the process of applying the accounting policies. Judgements that have the most significant effect on the
amounts recognised in the standalone financial statements and estimates that can cause a significant adjustment to the carrying
amount of assets and liabilities within the next financial year include the following:

3.1 Estimation of fair value of unlisted securities

The fair value of financial instruments is ascertained in accordance with IND AS 107 as per the fair value hierarchy described
in note no. 48.

3.2 Effective interest rate method

The Company recognises interest income/expense using the effective interest rate, i.e., a rate that represents the best
estimate of a constant rate of return over the expected life of the loans. The effective interest method also accounts for
the effect of potentially different interest rates at various stages and other characteristics of the product life cycle (including
prepayments and penalty interest and charges).

This estimation, by nature, requires an element of judgement regarding the expected behavior and life-cycle of the instruments,
as well expected changes to India''s base rate and other fee income/expense that are integral parts of the instrument.

3.3 Impairment of financial assets using the expected credit loss method

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The
Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the
Company''s history, existing market conditions as well as forward looking estimates at the end of each reporting period.

3.4 Current tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax
Act, 1961. Minimum Alternative Tax credit entitlement is recognised where there is convincing evidence that the same can be
realised in future.

3.5 Deferred tax

The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and suitable taxable
profits will be available in the future against which the reversal of temporary differences can be deducted. To determine the
future taxable profits, reference is made to the latest available profit forecasts. Where the temporary differences are related
to losses, relevant tax law is considered to determine the availability of the losses to offset against the future taxable profits.
Recognition therefore involves judgement regarding the future financial performance of the particular legal entity or tax group
in which the deferred tax asset has been recognised.

3.6 Estimation of fair value of investments property

The Company carries out the valuation activity to assess fair value of its Investment in land and property. Accordingly, fair
value estimates for investment in land and property is classified as level 3.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes
such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

b) Capital redemption reserve

The Capital Redemption Reserve is required to be created on buy-back of equity shares. The Company may issue fully paid up
bonus shares to its members out of the capital redemption reserve.

c) Capital reserve

The Reserve is created based on statutory requirement under the Companies Act, 2013. This is not available for distribution of
dividend but can be utilised for issuing bonus shares. Includes '' 77,237 lakh (Previous year '' 77,237 lakh ) created pursuant to
the Scheme of Amalgamation approved by High Court which shall for all regulatory and accounting purposes be considered to be
part of the owned funds / net worth of the Company.

d) Statutory reserve fund

Created pursuant to Section 45-IC of the Reserve Bank of India Act, 1934.

e) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general
reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items
included in the general reserve will not be reclassified subsequently to profit or loss. Includes '' 3,83,744 lakh (Previous year
'' 3,83,744 lakh) created pursuant to Scheme of Amalgamation.

C. The nature and volume of material transactions for the year with above related parties are as follows:

Investments

2023-24

Investments subscribed / purchased during the year during include '' 20,000 lakh to RGICL and redeemed / sold during the year
during the year include '' 1,208 lakh from RFL. Investments Balance as at March 31, 2024 includes '' 5,22,770 lakh of RGICL,
'' 5,07,695 lakh to RNLICL and '' 7,950 lakh to RARCL.

2022- 23

Investments Redeemed / Sold during the year during the year include '' 402 lakh from RFL. Investments Balance as at March 31,
2023 includes '' 5,02,974 lakh of RGICL ,'' 5,07,847 lakh to RNLICL and '' 7,950 lakh to RARCL.

Loans Given

2023- 24

Loan Returned/Adjusted during the year include '' 2,800 lakh from RCASL. Loan given Balance as at March 31, 2024 include
'' 1,34,506 lakh to RCASL. ECL provision on loan outstanding includes ''1,34,506 lakh to RCASL. Accrued Interest on loans as at
March 31,2024 includes ''19,277 lakh to RCASL. ECL provision on interest outstanding includes ''19,277 lakh to RCASL.

2022- 23

Loan Returned/Adjusted during the year include '' 1,850 lakh from RCASL, '' 2,639 lakh from RSL, '' 52,671 lakh to RCF and
'' 600 lakh from RARCL. Loan given Balance as at March 31, 2023 include '' 1,37,306 lakh to RCASL. ECL provision on loan
outstanding includes '' 1,37,306 lakh to RCASL. Accrued Interest on loans as at March 31,2023 includes '' 19,277 lakh to RCASL.
ECL provision on interest outstanding includes ''19,277 lakh to RCASL.

Advances / Margin Money

2023- 24

Advance balance as at March 31,2024 includes '' 599 lakh to RGICL, '' 413 lakh to RNLICL and '' 393 lakh to RSL. Margin Money
Receivable includes '' 8,107 lakh from RSL.

2022- 23

Advance balance as at March 31,2023 includes '' 615 lakh to RGICL, '' 415 lakh to RNLICL, '' 393 lakh to RSL and '' 757 lakh to
RHFL. Margin Money Receivable includes '' 9,578 lakh from RSL.

Debentures (Borrowings)

2023- 24

Debentures balance as at March 31 2024 includes '' 12,750 lakh to RGICL. Accrued Interest on debentures as at March 31,2024
include '' 3,041 lakh to RGICL

2022- 23

Debentures balance as at March 31 2023 includes '' 12,750 lakh to RGICL. Accrued Interest on debentures as at March 31,2023
include '' 3,041 lakh to RGICL

Income

2023- 24

Dividend Income includes '' 991 lakh from RFL, '' 147 lakh from RARCL and '' 25 lakh from RGIC. Reimbursement of Expenditure
include '' 289 lakh from RNLICL, '' 75 lakh from RGIC, and '' 113 lakh from RSL. Other operating incomes includes '' 2 lakh from
RARCL.

2022- 23

Interest & Finance Income includes '' 138 lakh from RSL and '' 75 lakh from RARCL. Dividend Income includes '' 147 lakh from
RARCL and '' 25 lakh from RGIC. Reimbursement of Expenditure include '' 289 lakh from RNLICL, '' 75 lakh from RGIC, and
'' 113 lakh from RSL. Other operating incomes includes '' 2 lakh from RARCL.

Expenditure

2023- 24

Insurance include '' 103 lakh to RGICL and '' 62 to RNLICL. Brokerage paid during the year '' 16 lakh to RSL. Employee benefit
expenses include,'' 189 lakh to Shri Atul Tandon and ''82 lakh to Shri Aman Gudral.

2022- 23

Insurance include '' 69 lakh to RGICL and '' 33 to RNLICL. Professional fee paid during the year '' 396 lakh to RSL. Brokerage
paid during the year '' 7 lakh to RSL. ECL provision on loan and interest (net) '' 17,479 lakh to RCASL, '' (60,987) lakh to RCFL
and '' (20) lakh to RARC. Employee benefit expenses include,'' 225 lakh to Shri Atul Tandon and '' 87 lakh to Shri Aman Gudral.

Contingent Liability

2023- 24

Guarantees to Banks and Financial Institutions on behalf of third parties includes '' 40,000 lakh for RHFL (ceased w.e.f. August
09, 2023).

2022-23

Guarantees to Banks and Financial Institutions on behalf of third parties includes '' 40,000 lakh for RHFL.

40 a) The Company has sold 23,23,69,188 equity shares held by it in Reliance Home Finance Limited (“RHFL”) .RHFL has ceased
to be an associate of the Company with effect from August 9, 2023.

b) The Company had earlier pledged its entire equity holding ( No of shares 25,15,49,920) in Reliance General Insurance
Company Limited (“RGICL”) in favour of IDBI Trusteeship Services Limited (“Trustee”) against dues guaranteed by the
Company. The Trustee, on November 19, 2019, invoked the pledge and held the shares of RGICL in their custody. Vide orders
dated December 4, 2019 and December 27, 2019, Insurance Regulatory and Development Authority of India (“IRDAI”), has
informed the Company that the transfer of shares was void ab initio. The said order was challenged in Securities Appellate
Tribunal, Mumbai (“SAT”) and SAT vide its order dated February 27, 2020 held that that the Trustee is holding shares as
Trustee / custodian and will not exercise any control over RGICL and cannot exercise any voting rights on shares of RGICL.
The Administrator on behalf of the Company had filed an application before the NCLT on April 27, 2022, against the Trustee
inter alia seeking direction against the Trustee to return the custody and control of the RGICL shares owned by the Company.

The NCLT by its order dated May 4, 2023 had inter alia directed the Trustee to handover the possession of 25,15,49,920
shares of RGICL to the Administrator of RCL and that the security interest created on the said shares by virtue of pledge shall
remain unaltered. Accordingly, the Trustee had handed over the said shares back to RCL with pledge created on the said
shares in favour of IDBI Trusteeship Services Limited.

During the year, the Company has further invested '' 20,000 lakh towards fresh issue of 97,56,097 fully paid up equity shares
of RGICL.

c) The Company had earlier pledged 3.35% of the equity shareholding of Nippon Life India Asset Management Limited
(“NLIAM”), comprising of 2,04,97,423 equity shares in favour of IndusInd Bank Limited (“IBL”). IBL had wrongfully invoked
the pledge, which was challenged by the Company before the Hon''ble High Court of Bombay (“Bombay High Court”). The
Bombay High Court referred the matter to the arbitration. The sole arbitrator upon hearing the Interim Applications filed by
the Company passed an interim order on April 23, 2020, wherein it stated that status quo (as ordered by Bombay High Court
pursuant to its Order dated December 11,2019) will continue and the NLIAM shares, the pledge over which was invoked by
IndusInd Bank, will remain in a separate demat account.

The sole arbitrator in the matter of Reliance Capital Limited vs IndusInd Bank Limited in relation to invocation of 2,04,97,423
shares (“Subject Shares”) of Nippon Life India Asset Management Limited on November 18, 2019, has passed Minutes of
Award on August 19, 2023 (“Effective Date”).

The Key terms of the Minutes of Award are as below:

The Parties have mutually agreed, and IBL has undertaken to transfer to the Company the following:

(i) 26,40,068 shares of NLIAM being 12.88% of the Subject Shares (“Settlement Shares”); and

(ii) '' 9,37,22,417 (“Settlement Amount”) being the dividend accrued on the Settlement Shares till the Effective Date.

The Settlement Shares and the Settlement Amount are hereinafter collectively referred to as “Settlement Consideration”

The Subject Shares less the Settlement Shares being 1,78,57,355 shares of NLIAM shall herein after be referred to as the
“Balance Subject Shares”.

Pursuant to the Consent Arbitral Award, the Company has received the Settlement Consideration. With respect to the
Balance Subject Shares, the Company has created expected credit loss (ECL) provision and written off for an amount of
'' 55,706 lakh i.e. the value of Balance Subject Shares as on Effective Date.

d) One of previous auditor of the Company''s, after resigning from the office in June 2019 submitted a report under Section
143(12) of the Companies Act, 2013 with the Ministry of Corporate Affairs for matters relating to Financial Year 2018-19. The
Company has examined the matter and also appointed legal experts, who independently carried out an in-depth examination
of the matters and issues raised therein and have concluded that there was no matter attracting the provisions of Section
143(12) of the Companies Act, 2013. The matter is under consideration with the Ministry of Corporate Affairs.

e) The Administrator of Reliance Capital Limited, duly appointed by the NCLT, is obligated to file application for avoidance
transactions in accordance with section 25(2)(j) of the Code read with Regulation 35A of the Insolvency and Bankruptcy Board
of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”). In furtherance of
the aforesaid, the Administrator had appointed a transaction auditor, BDO India LLP (“BDO or Transaction Auditor),”), to
determine if the Company has been subjected to transactions under sections 43, 45, 50 and 66 of the Code and submit
a report on the same (“BDO Report”). Estimated impact on the Company is '' 2,19,200 lakh as per the BDO report. On a
review and in consideration of the findings of the Transaction Auditor, the Administrator has filed 8 applications before the
NCLT under Section 60(5) and Section 66(2) of the Code read with the relevant CIRP Regulations in October 2022 seeking
appropriate relief. The Company has made requisite disclosures of the same under Regulation 30 of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The applications are pending
before NCLT.

43.19 Detail of group entities that are not consolidated in the CFS

Name of Entity - RBEP Entertainment Private Limited (Formerly know as Reliance Big Entertainment Private Limited): Type
of business - Internet, digital media, film production, communications, radio programming, gaming, movies, animation,
music,broadcast, and other entertainment services, Size of its assets - '' 19,982 lakh, Debt Equity ratio - NA,Profitability FY
2020- 21 - '' (3,95,588) lakh, Profitability FY 2019-20 - '' (3,95,588) lakh, Exposure - '' 38,919 lakh Corporate Guarantee, and
'' Nil Loan and interest.

Name of Entity - Reliance Media Works Financial Services Private Limited: Type of business - Lending and trading in
commodities, Size of its assets - '' 2,811 lakh, Debt Equity ratio - NA, Profitability Fy 2021-22 - '' 1,001 lakh, Profitability FY
2020-21 - ''(61,914) lakh, Exposure - '' 18,885 lakh Corporate Guarantee.

Note:

(a) Exposure is provided net of provision or fair value change.

(b) Details of those entities have not been considered whose net exposures are Nil as on March 31,2024.

(c) Debt Equity ratio is not applicable (NA) where net worth is negative or debt is zero.

(d) Financials details of Group Companies are provided as per latest available Audited Financial Statement as on March
31,2023.

43.20 The Company does not have any exposure to non financial business other than reported in serial no 1 of note no 43.19.

43.21 There are no Loans and advances to firms/companies in which directors are interested.

43.22 Investments by the loanee of the CIC in the shares (Equity and Preference) of Parent Company and Group Companies
Nil,

Exposure is provided net of provision or fair value change. Details of those entities have not been considered whose net
exposures are Nil as on March 31,2024.

b) Penalties imposed by RBI and other regulators including strictures or directions on the basis of inspection reports or
other adverse findings:

The Reserve Bank of India (RBI) vide Press Release dated November 29, 2021 in exercise of the powers conferred
under Section 45-IE (1) of the Reserve Bank of India Act, 1934 (RBI Act) superseded the Board of Directors of your
Company on November 29, 2021 and the RBI appointed Shri Nageswara Rao Y, Ex-Executive Director of Bank of
Maharashtra as the Administrator of your Company under Section 45-IE (2) of the RBI Act.

On December 02, 2021 the RBI filed the Petition before the Hon''ble National Company Law Tribunal, Mumbai Bench
(“NCLT”/”Adjudicating Authority”)under sub-Clause (i) of clause (a) of Rule 5 of the Insolvency and Bankruptcy
(Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudication Authority) Rules,
2019 (“FSP Rules”) to initiate Corporate Insolvency Resolution Process ("CIRP") against RCL read with Section 227
of Insolvency and Bankruptcy Code, 2016, read with the rules and regulations framed there under and amended from
time to time (the “Code”). Further CIRP was initiated against the Company under Section 227 read with clause (zk) of
sub section (2) of section 239 of the Code and read with rules 5 and 6 of the FSP Rules by an order dated December
06, 2021 of the NCLT. The Adjudicating Authority vide the above order, appointed the Administrator to perform all the
functions of a resolution professional to complete the CIRP of the Company as required under the provisions of the
Code and declared a moratorium.

The Administrator of Reliance Capital Limited filed an application before the NCLT under Section 30(6) of the Code
for approval of the resolution plan submitted by IndusInd International Holdings Limited (“IIHL”) as approved by the
Committee of Creditors of the Company, with the NCLT, via e-filing on July 12, 2023.

The resolution plan submitted by IIHL, for acquisition of Reliance Capital Limited on a going concern basis was approved
("Approved Resolution Plan”) by the Hon''ble NCLT by its order dated February 27, 2024 ("NCLT Approval Order”).

A Monitoring Committee (“MC") has been constituted in terms of the Approved Resolution Plan to manage the operations
of the Company on a going concern basis and MC is the decision-making committee to do all such acts, deeds, matters
and things which shall be required for implementation of the Approved Resolution Plan including but not limited to
transfer of assets or investments as articulated in the Approved Resolution Plan.

Accordingly, your Company is under implementation of Approved Resolution Plan as per the provisions of the Code
along with the Regulations and Rules thereunder.

c) If the auditor has expressed any modified opinion(s) or other reservation(s) in his audit report or limited review report in
respect of the financial results of any previous financial year or quarter which has an impact on the profit or loss of the
reportable period, with notes on :

The Auditor has not expressed any modified opinion(s) or other reservation(s) in his audit report or limited review report
in respect of the financial results of any previous financial year or quarter thereof, which has an impact on the profit or
loss for the financial year ended March 31,2024.

The company is exposed to certain risks relating to its ongoing business operations. The primary risks managed using derivative
instruments are Market linked debentures.

The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material
foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law
/ Indian Accounting Standards there are no foreseeable losses on such long term contracts (including derivative contracts) has
been made in the books of account.

48 Fair value measurement

a) Fair value hierarchy

The Company determines fair value of its financial instruments according to following hierarchy:

Level 1: Category includes financials assets and liabilities that are measured in whole or significant part by reference to
published quotes in an active market

Level 2: Category includes financials assets and liabilities that are measured using a valuation technique based on
assumptions that are supported by prices from observable current market transactions. The Company''s investment in units
of AIF funds fall under this category.

Level 3: Category includes financials assets and liabilities that are measured using valuation techniques based on non¬
market observable inputs and subsidiaries and associates carried at deemed cost. This means that fair value are determined
in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable
current market transactions in the same instrument nor are they based on available market data. The main asset classes in
this category are unlisted equity investments as well as unlisted funds.

49 Financial risk management

The Company is a Core Investment Company (CIC) and obtained the Certificate of Registration as a CIC under Core Investment
Companies (Reserve Bank) Directions, 2016. In compliance with the same Directions, the Company holds not less than 90% of
its net assets in the form of investments in equity shares, preference shares, debentures, debt or loans to group companies.

The Company is exposed to market risk, credit risk, liquidity & interest rate risk and capital management risk. In view of the
ongoing CIRP, Risk Management is being overseen by the Administrator. The major risks are summarised below:

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. The Company has quoted investments which are exposed to fluctuations in stock prices. Similarly, the Company has also
raised funds through issue of Market Linked Debentures, whose returns are linked to relevant underlying market instruments
or indices. The Company continuously monitors market exposure for both equity and debt and, in appropriate cases, also uses
various derivative instruments as a hedging mechanism to limit volatility. The unquoted Compulsorily Convertible Preference
Shares and Compulsory Convertible debentures of group companies are measured at fair value through profit or loss. The fair
values of these investments are regularly monitored.

Credit risk management

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an
obligation. Credit risk arises mainly from loans and advances, and loan commitments arising from such lending activities, but can
also arise from credit enhancement provided, such as financial guarantees, letters of credit, endorsements and acceptances. The
Company is a Middle Layer Core Investment Company (CIC) with its lending restricted to and within the Group companies.

The Company has assesses on a forward-looking basis the Expected Credit Losses (ECL) associated with its debt instruments
carried at amortized cost and FVOCI and with the exposure arising from loan commitments and financial guarantee contracts. The
Company recognizes a loss allowance for such losses at each reporting date.

Liquidity and Interest Rate Risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are
settled by delivering cash or another financial asset. While interest rate risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market interest rates.

The Company is exposed to liquidity risk and interest rate risk principally, as a result of lending and investment for periods and
interest rates which may differ from those of its funding sources. Asset liability positions are managed in compliance with the
ALM policy of the company laid down in accordance overall guidelines issued by RBI in the Asset Liability Management (ALM)
framework.

Capital Management Risk

The Reserve Bank of India (RBI) sets and monitors capital adequacy requirements for the Company from time to time. The Core
Investment Companies (Reserve Bank) Directions, 2016, stipulate that the Adjusted Net Worth of a CIC shall at no point in time
be less than 30% its risk weighted assets on balance sheet and risk adjusted value of off-balance sheet items as on date of the
last audited balance as at the end of the financial year. The Core Investment Companies (Reserve Bank) Directions, 2016, further
stipulate that the outside liabilities of a CIC shall at no point of time exceed 2.5 times its Adjusted Net Worth as on date of the last
audited balance as at the end of the financial year.

Expected credit loss measurement

Ind AS 109 “Financial Instruments” outlines a ‘three-stage'' model for impairment based on changes in credit quality since initial
recognition as summarised below,

The objective of the impairment requirements is to recognise lifetime expected credit losses for all financial instruments for which
there have been significant increases in credit risk since initial recognition - whether assessed on an individual or collective basis
- considering all reasonable and supportable information, including that which is forward-looking.

A financial instrument that is not credit-impaired on initial recognition is classified in ‘Stage 1'' and has its credit risk continuously
monitored by the Company.

If significant increases in credit risk (‘SICR'') since initial recognition is identified, the financial instrument is moved to ‘Stage 2'' but
is not yet deemed to be credit-impaired.

If the financial instrument is credit-impaired, the financial instrument is then moved to ‘Stage 3''. Financial instruments in Stage 1
have their ECL measured at an amount equal to 12 month ECLs. Instruments in Stages 2 or 3 have their ECL measured based on
expected credit losses on a lifetime basis. Purchased or originated credit-impaired financial assets are those financial assets that
are credit impaired on initial recognition. Their ECL is always measured on a lifetime basis (Stage 3).

The measurement of ECL is calculated using three main components: (i) Probability of Default (PD) (ii) Loss Given Default (LGD)
and (iii) the Exposure At Default (EAD).

The 12 month ECL is calculated by multiplying the 12 month PD, LGD and the EAD. The 12 month and lifetime PDs represent
the PD occurring over the next 12 months and the remaining maturity of the instrument respectively. The EAD represents the
expected balance at default, taking into account the repayment of principal and interest from the balance sheet date to the default
event together with any expected drawdowns of committed facilities. The LGD represents expected losses on the EAD given the
event of default, taking into account, among other attributes, the mitigating effect of collateral value at the time it is expected to be
realised and the time value of money.

• Probability of default ( PD) represents the likelihood of a borrower defaulting on its financial obligation, either over the next
12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation.

• Exposure At default (EAD) is the total amount of an asset the entity is exposed to at the time of default. EAD is defined
based on the characteristics of the asset. EAD is dependent on the outstanding exposure of an asset, sanctioned amount of
a loan and credit conversion factor for non-funded exposures.

• Loss given default (LGD) It is the part of an asset that is lost provided the asset default. The recovery rate is derived as
a ratio of discounted value of recovery cash flows (incorporating the recovery time) to total exposure amount at the time of
default. Recovery rate is calculated for each segment separately. Loss given default is computed as (1 - recovery rate) in
percentage terms.

The Company assesses when a significant increase in credit risk has occurred based on quantitative and qualitative assessments.
Exposures are considered to have resulted in a significant increase in credit risk and are moved to Stage 2 when:

i. Quantitative test: Accounts that are 30 calendar days or more past due move to Stage 2 automatically. Accounts that are 90
calendar days or more past due move to Stage 3 automatically.

ii. Qualitative test: Accounts that meet the portfolio''s ‘high risk'' criteria and are subject to closer credit monitoring. High risk
customers may not be in arrears but either through an event or an observed behavior exhibit credit distress.

iii. Reversal in Stages: Exposures will move back to Stage 2 or Stage 1 respectively, once they no longer meet the quantitative
criteria set out above. For exposures classified using the qualitative test, when they no longer meet the criteria for a significant
increase in credit risk

The measurement of ECL reflects:

• An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;

• The time value of money; and

• Reasonable and supportable information that is available without undue cost or effort at the reporting date about past events,
current conditions and forecasts of future economic conditions. The measurement of the ECL allowance is an area that
requires the use of complex models and significant assumptions about future economic conditions and credit behaviour (e.g.
the likelihood of customers defaulting and the resulting losses).

As per the provisions of the Code, the fair value and liquidation value of the assets of the Company as on the insolvency
commencement date is required to be determined in accordance with Regulation 27 read with Regulation 35 of the Insolvency
and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("CIRP Regulations”).
The Administrator of RCAP duly appointed by the Hon''ble National Company Law Tribunal, Mumbai ("NCLT Mumbai Bench”), is
obligated to appoint 2 registered valuers to determine such valuation and submit the report ("Valuation Report”). In furtherance
thereof, the Administrator had appointed 2 registered valuers who have submitted their report. As per Ind AS 36- “Impairment of
Assets”, impairment testing of assets is to be conducted on an annual basis. Upon implementation of the Approved Resolution
Plan, the Company will consider carrying out a comprehensive review of all the assets including investments, other assets and
intangible assets, liabilities and accordingly provide for impairment loss on assets and write back of liabilities, if any.

Subject to the above, impairment provisions for financial assets are based on assumptions about risk of default and expected loss
rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based
on the Company''s history, existing market conditions as well as forward looking estimates at the end of each reporting period.

The Company has adopted the Ind AS while identifying and providing for the Expected Credit Losses (ECL The Company
measures credit risk using Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD). This is similar
to the approach used for the purposes of measuring Expected Credit Loss (ECL) under Ind AS 109 “Financial Instruments”.
Company has put in place monitoring mechanisms commensurate with nature and volume of activities.

Collateral and other credit enhancements

The Company employs a range of policies and practices to mitigate credit risk. The most common of these is accepting collateral
for funds advanced. The principal collateral types for loans and advances are:

• Charges over business assets such as premises, inventory and accounts receivable; and

• Charges over financial instruments such as debt securities and equities.

Longer-term finance and lending to corporate entities are generally secured.

The Company''s policies regarding obtaining collateral have not significantly changed during the reporting period and there has
been no significant change in the overall quality of the collateral held by the Company since the prior period.

The Company closely monitors collateral held for financial assets considered to be credit-impaired, as it becomes more likely that
the Company will take possession of collateral to mitigate potential credit losses. Financial assets that are credit-impaired and
related collateral held in order to mitigate potential losses.

Write-off policy

The Company writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has

concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include
(i) ceasing enforcement activity and (ii) where the Company''s recovery method is foreclosing on collateral and the value of the
collateral is such that there is no reasonable expectation of recovering in full.

The Company may write-off financial assets that are still subject to enforcement activity. The outstanding contractual amounts of
such assets written off during the year ended March 31,2024 was '' 21,212 lakh (Previous Year '' 60,986 lakh ). The Company
still seeks to recover amounts it is legally owed in full, but which have been partially written off due to no reasonable expectation
of full recovery.

50 Analysis of financial assets and liabilities by remaining contractual maturities

Refer note no 43.2 for the maturity profile of the undiscounted cash flows of the Company''s financial assets and liabilities as at
March 31. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal
their carrying balances as the impact of discounting is not significant.

NA= Not Applicable

52 The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
other kind of funds) to or in any other person or entity, including foreign entity (“Intermediaries”), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries;

The Company has not received any funds (which are material either individually or in the aggregate) from any person or entity,
including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company
shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

53. The disclosure on the following matters required under Schedule III as amended not being relevant or applicable in case
of the Company, same are not covered:

a) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

b) No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

c) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.

d) No registration and/or satisfaction of charges are pending to be filed with ROC.

e) There are no transactions which are not recorded in the books of account which have been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961.

f) The Company does not have any relationship with struck off companies.

54 Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

There are no Micro and Small Scale Business Enterprises, to whom the Company owes dues, which are outstanding for more
than 45 days as at March 31,2024. This information as required to be disclosed under the Micro, Small and Medium Enterprises
Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available
with the Company.

55 Figures for the previous year has been regrouped / rearranged wherever necessary to make them comparable to those with the
current year

As per our report of even date attached for Reliance Capital Limited

For Gokhale & Sathe (a Company under Corporate Insolvency Resolution Process by an order

Chartered Accountants dated December 06, 2021 passed by Hon'' NCLT Mumbai)

Firm Registration No.: 103264W

Administrator Nageswara Rao Y

Rahul Joglekar Chief Financial Officer Aman Gudral

Partner

Membership Number : 129389 Company Secretary & Compliance Officer Atul Tandon

Mumbai, Mumbai,

Dated: May 30, 2024 Dated: May 30, 2024

---

Mar 31, 2023

The Company is currently undergoing Corporate Insolvency Resolution Process under the provisions of the Insolvency and Bankruptcy Code, 2016 and is under moratorium under Section 14 of the Code since December 06, 2021.

Accordingly, all its liabilities towards the NCD holders are crystallised as at as on December 06, 2021 and will be dealt in accordance with the provisions of the Code.

Further, the trustee have recalled all the NCDs and have submitted claim to the Administrator in terms of the Code and therefore the entire amount of NCDs are considered as overdue as on March 31, 2023, irrespective of the original maturity dates.

Details about the nature of the security

(i) The Secured Non-Convertible Debentures of the Company aggregating to '' 14 85 456 lakh (Previous year '' 14 85 456 lakh) as on March 31, 2023 are secured by way of first pari-passu mortgage/charge on the Company''s immovable property and on present and future book debts/business receivables of the Company as specifically mentioned in the respective Trust Deeds. The asset cover has fallen below hundred percent of the Oustanding Debentures and adequate steps are being taken by the Company as explained in note no 1.

(ii) Unsecured NCDs amounting to '' 1 40 500 lakh (Previous year '' 1 40 500 lakh) are in respect to Tier II subordinate debts.

a) Maturity profile of Term loans from banks / Financial institutions:

The Company is currently undergoing Corporate Insolvency Resolution Process under the provisions of the Insolvency and Bankruptcy Code, 2016 and is under moratorium under Section 14 of the Code since December 06, 2021.

Accordingly, all its liabilities towards the banks/ financial institutions are crystallised as at as on December 06, 2021 and will be dealt in accordance with the provisions of the Code.

Further, the banks/ financial institutions have recalled all the term loan and have submitted claim to the Administrator in terms of the Code and therefore the entire amount of banks/ financial institutions are considered as overdue as on March 31, 2023, irrespective of the original maturity dates.

b) Details about the nature of the security

(i) Term Loans from banks / financial institution includes '' 62 458 lakh (Previous year '' 62 458 lakh) are secured by way of pari passu first charge on all present and future book debts, receivables, bills, claims and loan assets of the Company and its subsidiary.

(ii) Inter Corporate Deposit includes '' 7 295 lakh (Previous year '' 7 295 lakh) are secured by way of pari passu first charge on all present and future book debts, investment, and business receivables of the Company.

*Does not include any undisputed amounts, due and outstanding, which are liable to be transferred to the Investor Education and Protection Fund created pursuant to Section 125 of the Companies Act, 2013, except '' 22 lakh which have not been transferred to Investor Education and Protection Fund (IEPF) on account of various investor legal cases and '' 286 lakh due for transfer on October 29,2022 but due technical error amount has not been transferred to IEPF.

b) Terms and rights attached to equity shares

The Company has one class of equity shares having a par value of '' 10 per share. Each shareholder is eligible for one vote per share held.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholder.

c) Shares reserved for issue under options

Information relating to the Reliance Capital Limited Employee Stock Option Scheme (ESOS), including details regrading options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note no. 32.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

b) Capital redemption reserve

The Capital Redemption Reserve is required to be created on buy-back of equity shares. The Company may issue fully paid up bonus shares to its members out of the capital redemption reserve.

c) Capital reserve

The Reserve is created based on statutory requirement under the Companies Act, 2013. This is not available for distribution of dividend but can be utilised for issuing bonus shares. Includes Rs 77 237 lakh (Previous year Rs 77 237 lakh ) created pursuant to the Scheme of Amalgamation approved by High Court which shall for all regulatory and accounting purposes be considered to be part of the owned funds / net worth of the Company.

d) Statutory reserve fund

Created pursuant to Section 45-IC of the Reserve Bank of India Act, 1934.

e) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss. Includes Rs 3 83 744 lakh (Previous year Rs 3 83 744 lakh) created pursuant to Scheme of Amalgamation.

f) Other comprehensive Income

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

g) ESOP trust reserve and Treasury shares

Profit of RCAP ESOP trust is recognised in RCAP ESOP trust reserve.

b) Contribution for corporate social responsibility (CSR)

The Company is not required to spend towards Corporate Social Responsibility (CSR) as per Section 135 of the Companies Act, 2013, since there is no average profit in the last 3 years calculated as per the provisions of the Act.

Note: The unabsorbed tax losses has been considered to the extent of amount determined and claimed in the Income Tax Returns filed with the Income Tax Authorities till Assessment Year 2022-23. The lossses for Assessment Year 2023-24 has not been included, since Income Tax Return has not been filed yet.

32 Employee share based payments

a) The Company introduced ESOP 2015 which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till five years as per Plan. Each Option entitles the holder thereof to apply for and be allotted/transferred one Equity Share of the Company upon payment of the exercise price during the exercise period.

b) Fair value of options granted

The fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The options granted for no consideration and will vest upon the completion of service condition as specified in scheme in graded manner. Vested options are exercisable for the period of five years after the vesting.

The expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any expected changes to future volatility due to publicly available information.

b) Defined benefit plans

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at retirement age.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the respective plans:

iv) Actuarial assumptions

With the objective of presenting the plan assets and plan liabilities of the defined benefits plans and post retirement medical benefits at their fair value on the balance sheet, assumptions under Ind AS 19 are set by reference to market conditions at the valuation date.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding aa other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised

34 Segment information

The Company is primarily engaged in the Finance & Investment activities and all other activities revolve around the main business of the Company. The Financial results of the Company have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015, as amended and as prescribed under Section 133 of the Companies Act, 2013, and all activities are conducted within India and as such there is reportable segment, as per the Ind AS 108 "Operating Segments". The Operating segments have been reported as under:

1. Finance- this includes the corporate lending activities

2. Investments -this includes the investment activities

3. Lease Rental -this includes the renting and leasing activities

4. Others - this includes other financial and allied services.

C. The nature and volume of material transactions for the year with above related parties are as follows:

Investments

2022-23

Investments Redeemed / Sold during the year during the year include '' 402 lakh from RFL. Investments Balance as at March 31, 2023 includes '' 5 02 974 lakh of RGICL, '' 5 07 847 lakh to RNLICL and '' 7 950 lakh to RARCL.

2021-22

Investments Redeemed / Sold during the year during the year include '' 316 lakh from RASMST. Investments Balance as at March 31, 2022 includes '' 5 02 968 lakh of RGICL, and '' 5 07 842 lakh to RNLICL, '' 7 950 lakh to RARCL '' 5 615 lakh to RHFL.

Loans Given 2022-23

Loan Returned/Adjusted during the year include '' 1 850 lakh from RCASL, '' 2 639 lakh from RSL, '' 52 671 lakh to RCF and '' 600 lakh from RARCL. Loan given Balance as at March 31, 2023 include '' 1 37 306 lakh to RCASL. ECL provision on loan outstanding includes '' 1 37 306 lakh to RCASL. Accrued Interest on loans as at March 31, 2023 includes '' 19 277 lakh to RCASL. ECL provision on interest outstanding includes '' 19 277 lakh to RCASL.

2021-22

Loan Returned/Adjusted during the year include '' 200 lakh from RSL, '' 447 lakh to RBE and '' 2 800 lakh from RARCL,. Loan given Balance as at March 31, 2022 include '' 1 39 1 56 lakh to RCASL, '' 52 671 lakh to RCFL,'' 2 639 lakh to RSL and '' 600 lakh to RARCL. ECL provision on loan outstanding includes '' 1 22 179 lakh to RCASL, '' 52 671 lakh to RCFL and '' 20 to RARCL. Accrued Interest on loans as at March 31, 2022 includes '' 19 277 lakh to RCASL and '' 8 316 lakh to RCF. ECL provision on interest outstanding includes '' 1 6 925 lakh to RCASL and '' 8 316 lakh to RCF.

Advances / Margin Money 2022-23

Advance balance as at March 31, 2023 includes '' 615 lakh to RGICL, '' 415 lakh to RNLICL, '' 393 lakh to RSL and '' 757 lakh to RHFL. Margin Money Receivable includes '' 9 578 lakh from RSL.

2021-22

Advance balance as at March 31, 2022 includes '' 648 lakh to RGICL, '' 712 lakh to RCFL, Rs 361 lakh to RNLICL, Rs 388 lakh to RSL and Rs 711 lakh to RHFL. Margin Money Receivable includes Rs 1 1 062 lakh from RSL.

Debentures (Borrowings)

2022-23

Debentures balance as at March 31 2023 includes '' 12 750 lakh to RGICL. Accrued Interest on debentures as at March 31, 2022 include '' 3 041 lakh to RGICL

2021-22

Debentures balance as at March 31 2022 includes '' 12 750 lakh to RGICL. Accrued Interest on debentures as at March 31, 2022 include '' 3 041 lakh to RGICL

Income

2022-23

Interest & Finance Income includes '' 138 lakh from RSL and '' 75 lakh from RARCL. Dividend Income includes '' 147 lakh from RARCL and '' 25 lakh from RGIC. Reimbursement of Expenditure include '' 289 lakh from RNLICL, '' 75 lakh from RGIC, and '' 113 lakh from RSL. Other operating incomes includes '' 2 lakh from RARCL.

2021-22

Interest & Finance Income includes '' 328 lakh from RSL and '' 98 lakh from RARCL. Dividend Income includes '' 147 lakh from RARCL and '' 101 lakh from RGIC. Reimbursement of Expenditure include '' 204 lakh from RNLICL, '' 86 lakh from RGIC, and '' 52 lakh from RSL. Other operating incomes includes '' 4 lakh from RARCL.

Expenditure

2022-23

Insurance include '' 69 lakh to RGICL and '' 33 to RNLICL. Professional fee paid during the year '' 396 lakh to RSL. Brokerage paid during the year '' 7 lakh to RSL. ECL provision on loan and interest (net) Rs 17 479 lakh to RCASL, Rs (60 987) lakh to RCFL and Rs (20) lakh to RARC. Employee benefit expenses include,'' 225 lakh to Shri Atul Tandon and '' 87 lakh to Shri Aman Gudral.

2021-22

Finance cost include '' 742 lakh to RGICL and '' 1,788 lakh to GCLLP. Insurance include '' 129 lakh to RGICL and '' 7 lakh to RNLICL. Brokerage expenses include '' 228 lakh to RSL. ECL provision on loan and interest (net) '' 5 lakh to RCASL. Employee benefit expenses include '' 202 lakh to Mr. Atul Tandon, '' 100 lakh to Mr. Vijesh B. Thota and '' 9 lakh to Mr. Aman Gudral.

Contingent Liability 2022-23

Guarantees to Banks and Financial Institutions on behalf of third parties includes '' 40 000 lakh for RHFL.

2021-22

Guarantees to Banks and Financial Institutions on behalf of third parties includes '' 45 000 lakh for RCFL, '' 40,000 lakh for RHFL. Guarantees from third parties include '' 1,67,300 lakh from RInfra (ceased to be related party w.e.f. November 29, 2021).

Notes :

i) Expenses incurred towards public utilities services such as communication and electricity charges have not been considered for related party transaction.

ii) The above discloses transactions entered during the period of existence of related party relationship. The balances and transactions are not disclosed before existence of related party relationship and after cessation of related party relationship.

iii) In addition to the above Director Sitting Fees of '' Nil (Previous Year '' 3 lakh) has been paid to Mr. Anil D. Ambani

iv) Professional Fee '' 96 lakh (Previous year '' 35 lakh ) paid to Mr. Nageswara Rao Y ( Administrator).

v) Zapak Digital Entertainment Private Limited(ZAPAK), Guruvas Commercials LLP(GCLLP) and RBEP Entertainment Private Limited(RBE) have been included for previous year transactions.

a) Pursuant to the admission and commencement of CIRP of the Company under Insolvency and Bankruptcy Code, 2016 (IBC) with effect from December 06, 2021, there are various claims submitted by the operational creditors, the financial creditors, employees and other creditors. The overall obligations and liabilities including obligation for interest on loans and the principal rupee amount in respect of loans shall be determined during the CIRP.

b) Claims against the Company not acknowledge as debt include income tax claims for the AY 2017-18 of '' 1 200 lakh. The company has filed for appeal and rectification request against the demand raised by income tax authorities. In past same demand has been cancelled by the higher authorities, hence the Company does not expect any liability against the same.

40 a) Reliance Commercial Finance Limited (RCFL) was engaged with its lenders for arriving at the debt resolution plan. In this regard, certain lenders of RCFL had entered into an Inter-Creditor Agreement (ICA) in accordance with the circular dated June 7, 2019 issued by the Reserve Bank of India (RBI) on Prudential Framework for Resolution of Stressed Assets. Majority of the lenders had already executed the ICA dated July 6, 2019 with Bank of Baroda acting as the Lead Lender. The ICA lenders had evaluated, voted upon and selected Authum Investment & Infrastructure Limited as the final bidder on July 15, 2021 and the same was intimated to the Stock Exchange by the Company through the media release. Authum resolution plan was shared with the Debenture Trustees to call for the Debenture Holder''s meeting and seek approval on the resolution plan.

The Company, pursuant to approval granted by the Committee of Creditors in terms of Section 29 of the Code and in pursuance of the implementation of the resolution plan of Reliance Commercial Finance Limited (RCFL) in terms of the Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions, 2019, has for a consideration of '' 100 lakh disposed off its holding of Equity shares, 12% Non-Convertible Cumulative Compulsory Redeemable Preference Shares and Inter Corporate Deposits in its wholly owned subsidiary viz. RCFL to Authum Investment and Infrastructure Limited on October 14, 2022.

Consequently, RCFL and Gulfoss Enterprises Private Limited a subsidiary of RCFL, have ceased to be subsidiaries of the Company w.e.f. October 14, 2022 and Global Wind Power Limited and Reinplast Advanced Composites Private Limited, have ceased to be associates of the Company w.e.f. October 14, 2022.

b) The Company had pledged its entire equity holding (No of shares 25 1 5 49 920) in Reliance General Insurance Company Limited (RGIC) in favour of IDBI Trusteeship Services Limited (Trustee) against dues guaranteed by the Company. The Trustee, on November 19, 2019, invoked the pledge and presently holds the shares of RGIC in their custody. Vide orders dated December 4, 2019 and December 27, 201 9, Insurance Regulatory and Development Authority of India (IRDAI), has informed the Company that the shares are being held by the Trustee in the capacity as Trustee and the shares have not been transferred.The said order was challenged in Securities Appellate Tribunal, Mumbai (SAT) and SAT vide its order dated February 27, 2020 held that that the Trustee is holding shares as Trustee / custodian and will not exercise any control over RGICL and cannot exercise any voting rights on shares of RGICL. Accordingly, RGICL continues to be a subsidiary of the Company. The Administrator on behalf of the Company has filed an application before the National Companies Law Tribunal, Mumbai on April 27, 2022, against the Trustee inter alia seeking direction against the Trustee to return the custody and control of the RGICL shares owned by the Company.

Hon''ble National Company Law Tribunal bench at Mumbai ("NCLT") by its Order dated May 4, 2023 has inter alia directed IDBI Trusteeship Services Limited to handover the possession of 25,1 5,49,920 shares (100% equity shares) of RGICL to the Administrator of Reliance Capital Limited.

c) The Company had pledged 3.35% comprising of 2,04,97,423 equity shares of Nippon Life India Asset Management Limited (NLIAML) in favour of IndusInd Bank Limited (IBL). IBL has illegally invoked the pledge, which has been challenged by the Company before the Hon''ble High Court of Bombay. The High Court has referred the matter to the arbitration who upon hearing the Interim Applications filed by the Company. Sole Arbitrator passed an interim order on April 23, 2020 wherein it stated that a status quo (as ordered by Bombay High Court vide Order dated December 11, 2019) will continue and the NLAML shares, whose pledge was invoked by IndusInd Bank, will remain in a separate demat account, where they are lying currently. Accordingly, the Company continues to consider its rights on the above referred shares.

d) The Company was prohibited from making any payment to secured or unsecured creditors and to dispose of, alienate, encumber either directly or indirectly or otherwise part with the possession, of any assets except in the ordinary course of business such as payment of salary and statutory dues, vide (a) orders dated December 3, 2019 and December 5, 2019 passed by the Hon''ble Debts Recovery Tribunal; (b) orders dated November 20, 2019 and March 15, 2021 passed by the Hon''ble Delhi High Court; and, Orders dated November 28, 2019, November 4, 2020, and March 5, 2021 passed by the Hon''ble Bombay High Court. The Administrator, on behalf of the Company has obtained orders clarifying that the above-mentioned orders will not come in the way of the Company''s CIRP.

e) One of previous auditor of the Company''s, after resigning from the office in June 2019 submitted a report under Section 143(12) of the Companies Act, 2013 with the Ministry of Corporate Affairs for matters relating to Financial Year 201819. The Company has examined the matter and also appointed legal experts, who independently carried out an in-depth examination of the matters and issues raised therein and have concluded that there was no matter attracting the provisions of Section 143(12) of the Companies Act, 2013. The matter is under consideration with the Ministry of Corporate Affairs.

f) The Administrator of Reliance Capital Limited ("RCAP" or "Company"), duly appointed by the Hon''ble National Company Law Tribunal, Mumbai ("NCLT Mumbai Bench"), is obligated to file application for avoidance transactions in accordance with section 25(2)(j) of the Insolvency and Bankruptcy Code, 2016 ("the Code") read with Regulation 35A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("CIRP Regulations"). In furtherance of the aforesaid, the Administrator had appointed a transaction auditor , BDO India LLP (BDO or Transaction Auditor), to determine if RCAP has been subjected to transactions under sections 43, 45, 50 and 66 of the Code and submit a report on the same ("BDO Report"). Estimated impact on the RCAP is INR 2,192 Crores as per the BDO report. On a review and in consideration of the findings of the Transaction Auditor, the Administrator has filed 8 applications before the NCLT Mumbai Bench under Section 60(5) and Section 66(2) of the Code read with the relevant CIRP Regulations in October 2022 seeking appropriate relief. The Company has made requisite disclosures of the same under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The applications are pending before NCLT Mumbai Bench.

(v) Stock Ratios:

(a) As of March 31, 2023, Commercial Paper outstanding: Nil

(b) As of March 31, 2023, outstanding Non-Convertible Debentures having original maturity of less than one year-Nil

(c) Other short-term liabilities, if any as a % of total public funds, total liabilities and total assets -Nil

(vi) Institutional set-up for liquidity risk management

In view of the on going CIRP liquidity risk management is being overseen by the Administrator 43.2 Maturity pattern of asset and liabilities (At Book Values)

The Company is currently undergoing Corporate Insolvency Resolution Process under the provisions of the Insolvency and Bankruptcy Code, 2016 and is under moratorium under Section 14 of the Code since December 06, 2021. Accordingly, all its liabilities are crystallised as at as on December 06, 2021 and will be dealt in accordance with the provisions of the Code.

Further, all stakeholder have recalled all the liabilities and have submitted claim to the Administrator in terms of the Code and therefore the entire amount of liabilities and assets are considered as overdue/matured as on March 31, 2023, irrespective of the original maturity dates.

i) For the exposure to real estate only loans secured by way of mortgage/hypothecation of housing properties, commercial properties and land are considered.

ii) In computing the above information, certain estimates, assumptions and adjustments have been made by the Management which have been relied upon by the auditors.

iii) The Company''s Investment in Investment Property amounting to '' 7 289 lakh (Previous year '' 7 496 lakh) has been considered as an indirect exposure to real estate sector.

43.19 Detail of group entities that are not consolidated in the CFS

Name of Entity - Nippon Life India Asset Management Limited: Type of business - Portfolio management, financial planning, mutual fund investment, and advisory services to individuals, Size of its assets - '' 3 64 41 6 lakh, Debt Equity ratio - NA, Profitability FY 2021-22 - '' 71 121 lakh , Profitability FY 2020-21 - '' 64 939 lakh, Exposure - '' 52 844 lakh Equity.

Name of Entity - RBEP Entertainment Private Limited (Formaly know as Reliance Big Entertainment Private Limited): Type of business - Internet, digital media, film production, communications, radio programming, gaming, movies, animation, music, broadcast, and other entertainment services, Size of its assets - '' 19 982 lakh, Debt Equity ratio - NA,Profitability FY 202021 - '' (3 95 588) lakh, Profitability FY 2019-20 - '' (3 95 588) lakh, Exposure - '' 38 919 lakh Corporate Guarantee, and '' Nil Loan and interest.

Name of Entity - Reliance Broadcast Network Limited: Type of business - Operates as a media and entertainment company and

provides radio and television productions, Size of its assets - '' 42 062 lakh, Debt Equity ratio - NA, Profitability FY 2021-22

- '' (1 1 907) lakh, Profitability FY 2020-21 - '' (12 705) lakh, Exposure - '' Nil Equity, '' Nil Loan and interest and '' 36 01 9 lakh Corporate Guarantee.

Name of Entity - Reliance Media Works Financial Services Private Limited: Type of business - Lending and trading in commodities, Size of its assets - '' 2 811 lakh, Debt Equity ratio - NA, Profitability FY 2021-22 - '' 1 001 lakh, Profitability FY 2020-21 -''(61 914) lakh, Exposure - '' 18 885 lakh Corporate Guarantee.

Note:

(a) Exposure is provided net of provision or fair value change.

(b) Details of those entities have not been considered whose net exposures are Nil as on March 31, 2023.

(c) Debt Equity ratio is not applicable (NA) where net worth is negative or debt is zero.

(d) Financials details of Group Companies are provided as per lastest available Audited Financial Statement as on March 31, 2022.

43.20 The Company does not have any exposure to non financial business other than reported in serial no 1 of note no 43.19.

43.21 There are no Loans and advances to firms/companies in which directors are interested.

b) Penalties imposed by RBI and other regulators including strictures or directions on the basis of inspection reports or other adverse findings:

The Reserve Bank of India (RBI) vide Press Release dated November 29, 2021 in exercise of the powers conferred under Section 45-IE (1) of the Reserve Bank of India Act, 1 934 (RBI Act) superseded the Board of Directors of your Company on November 29, 2021 and the RBI appointed Shri Nageswara Rao Y, Ex-Executive Director of Bank of Maharashtra as the Administrator of your Company under Section 45-IE (2) of the RBI Act.

On December 2, 2021, the RBI filed a Petition before the Hon''ble National Company Law Tribunal, Mumbai Bench (Hon''ble NCLT/ Adjudicating Authority) under Section 227 read with Section 239(2)(zk) of the Insolvency and Bankruptcy Code, 2016 (IBC / IBC Code / Code) read with Rules 5 and 6 of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudication Authority) Rules, 2019 (FSP Rules), to initiate CIRP against your Company. Accordingly, in terms of Rule 5(b)(i) of the FSP Rules, an interim moratorium came into effect on the date of filing of the application to initiate CIRP. Thereafter, CIRP was initiated against your Company by an Order dated December 6, 2021 of the Hon''ble NCLT. The Hon''ble NCLT, vide the said order, confirmed the appointment of the Administrator to perform the functions of an Interim Resolution Professional / Resolution Professional to complete the CIRP of your Company as required under the provisions of the Code and also announced commencement of the moratorium under Section 14 of the Code with effect from December 6, 2021. Accordingly, your Company is presently undergoing CIRP under the provisions of the Code along with the Regulations and Rules thereunder.

c) If the auditor has expressed any modified opinion(s) or other reservation(s) in his audit report or limited review report in respect of the financial results of any previous financial year or quarter which has an impact on the profit or loss of the reportable period, with notes on :

The Auditor has not expressed any modified opinion(s) or other reservation(s) in his audit report or limited review report in respect of the financial results of any previous financial year or quarter thereof, which has an impact on the profit or loss for the financial year ended March 31, 2023.

The Company enters into derivatives for risk management purposes. Derivatives held for risk management purposes include hedges that either meet the hedge accounting requirements or hedges that are economic hedges, but the company has elected not to apply hedge accounting requirements.

The table below shows the fair values of derivative financial instruments recorded as liabilities together with their notional amounts. The notional amounts indicate the value of transactions outstanding at the year end and are not indicative of either the market risk or credit risk.

The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed using derivative instruments are Market linked debentures.

The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / Indian Accounting Standards there are no foreseeable losses on such long term contracts (including derivative contracts) has been made in the books of account.

48 Fair value measurement

a) Fair value hierarchy

The Company determines fair value of its financial instruments according to following hierarchy:

Level 1: Category includes financials assets and liabilities that are measured in whole or significant part by reference to published quotes in an active market

Level 2: Category includes financials assets and liabilities that are measured using a valuation technique based on assumptions that are supported by prices from observable current market transactions. The Company''s investment in units of AIF funds fall under this category.

Level 3: Category includes financials assets and liabilities that are measured using valuation techniques based on non- market observable inputs and subsidiaries and associates carried at deemed cost. This means that fair value are determined in whole or in part using a valuation model based on assumptions that are neither supportd by prices from observable current market transactions in the same instrument nor are they based on avilable market data. The main asset classes in this category are unlisted equity investments as well as unlisted funds.

The Company is a Core Investment Company (CIC) and obtained the Certificate of Registration as a CIC under Core Investment Companies (Reserve Bank) Directions, 2016. In compliance with the same Directions, the Company holds not less than 90% of its net assets in the form of investments in equity shares, preference shares, debentures, debt or loans to group companies.

The Company is exposed to market risk, credit risk, liquidity & interest rate risk and capital management risk. In view of the ongoing CIRP Risk Management is being overseen by the Administrator. The major risks are summarised below:

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company has quoted investments which are exposed to fluctuations in stock prices. Similarly, the Company has also raised funds through issue of Market Linked Debentures, whose returns are linked to relevant underlying market instruments or indices. The Company continuously monitors market exposure for both equity and debt and, in appropriate cases, also uses various derivative instruments as a hedging mechanism to limit volatility. The unquoted Compulsorily Convertible Preference Shares and Compulsory Convertible debentures of group companies are measured at fair value through profit or loss. The fair values of these investments are regularly monitored.

Credit risk management

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Credit risk arises mainly from loans and advances, and loan commitments arising from such lending activities, but can also arise from credit enhancement provided, such as financial guarantees, letters of credit, endorsements and acceptances. The Company is a Core Investment Company (CIC) with its lending restricted to and within the Group companies.

The Company has assesses on a forward-looking basis the Expected Credit Losses (ECL) associated with its debt instruments carried at amortized cost and FVOCI and with the exposure arising from loan commitments and financial guarantee contracts. The Company recognizes a loss allowance for such losses at each reporting date.

Liquidity and Interest Rate Risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. While interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company is exposed to liquidity risk and interest rate risk principally, as a result of lending and investment for periods and interest rates which may differ from those of its funding sources. Asset liability positions are managed in compliance with the ALM policy of the company laid down in accordance overall guidelines issued by RBI in the Asset Liability Management (ALM) framework.

Capital Management Risk

The Reserve Bank of India (RBI) sets and monitors capital adequacy requirements for the Company from time to time. The Core Investment Companies (Reserve Bank) Directions, 2016, stipulate that the Adjusted Net Worth of a CIC-ND-SI shall at no point in time be less than 30% its risk weighted assets on balance sheet and risk adjusted value of off-balance sheet items as on date of the last audited balance as at the end of the financial year. The Core Investment Companies (Reserve Bank) Directions, 2016, further stipulate that the outside liabilities of a CIC-ND-SI shall at no point of time exceed 2.5 times its Adjusted Net Worth as on date of the last audited balance as at the end of the financial year.

Expected credit loss measurement

Ind AS 109 "Financial Instruments" outlines a ''three-stage'' model for impairment based on changes in credit quality since initial recognition as summarised below,

The objective of the impairment requirements is to recognise lifetime expected credit losses for all financial instruments for which there have been significant increases in credit risk since initial recognition - whether assessed on an individual or collective basis - considering all reasonable and supportable information, including that which is forward-looking.

A financial instrument that is not credit-impaired on initial recognition is classified in ''Stage 1'' and has its credit risk continuously monitored by the Company.

If significant increases in credit risk (''SICR'') since initial recognition is identified, the financial instrument is moved to ''Stage 2'' but is not yet deemed to be credit-impaired.

If the financial instrument is credit-impaired, the financial instrument is then moved to ''Stage 3''. Financial instruments in Stage 1 have their ECL measured at an amount equal to 12 month ECLs. Instruments in Stages 2 or 3 have their ECL measured based on expected credit losses on a lifetime basis. Purchased or originated credit-impaired financial assets are those financial assets that are credit impaired on initial recognition. Their ECL is always measured on a lifetime basis (Stage 3).

The measurement of ECL is calculated using three main components: (i) Probability of Default (PD) (ii) Loss Given Default (LGD) and (iii) the Exposure At Default (EAD).

The 12 month ECL is calculated by multiplying the 12 month PD, LGD and the EAD. The 12 month and lifetime PDs represent the PD occurring over the next 12 months and the remaining maturity of the instrument respectively. The EAD represents the expected balance at default, taking into account the repayment of principal and interest from the balance sheet date to the default event together with any expected drawdowns of committed facilities. The LGD represents expected losses on the EAD given the event of default, taking into account, among other attributes, the mitigating effect of collateral value at the time it is expected to be realised and the time value of money.

• Probability of default ( PD) represents the likelihood of a borrower defaulting on its financial obligation, either over the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation.

• Exposure At default (EAD) is the total amount of an asset the entity is exposed to at the time of default. EAD is defined based on the characteristics of the asset. EAD is dependent on the outstanding exposure of an asset, sanctioned amount of a loan and credit conversion factor for non-funded exposures.

• Loss given default (LGD) It is the part of an asset that is lost provided the asset default. The recovery rate is derived as a ratio of discounted value of recovery cash flows (incorporating the recovery time) to total exposure amount at the time of default. Recovery rate is calculated for each segment separately. Loss given default is computed as (1 - recovery rate) in percentage terms.

The Company assesses when a significant increase in credit risk has occurred based on quantitative and qualitative assessments. Exposures are considered to have resulted in a significant increase in credit risk and are moved to Stage 2 when:

i Quantitative test: Accounts that are 30 calendar days or more past due move to Stage 2 automatically. Accounts that are 90 calendar days or more past due move to Stage 3 automatically.

ii Qualitative test: Accounts that meet the portfolio''s ''high risk'' criteria and are subject to closer credit monitoring. High risk customers may not be in arrears but either through an event or an observed behavior exhibit credit distress.

iii Reversal in Stages: Exposures will move back to Stage 2 or Stage 1 respectively, once they no longer meet the quantitative criteria set out above. For exposures classified using the qualitative test, when they no longer meet the criteria for a significant increase in credit risk

The measurement of ECL reflects:

• An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;

• The time value of money; and

• Reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions. The measurement of the ECL allowance is an area that requires the use of complex models and significant assumptions about future economic conditions and credit behaviour (e.g. the likelihood of customers defaulting and the resulting losses).

As per the provisions of the IBC, the fair value and liquidation value of the assets of the Company as on the insolvency commencement date is required to be determined in accordance with Regulation 27 read with Regulation 35 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ("CIRP Regulations"). The Administrator of RCAP duly appointed by the Hon''ble National Company Law Tribunal, Mumbai ("NCLT Mumbai Bench"), is obligated to appoint 2 registered valuers to determine such valuation and submit the report ("Valuation Report"). In furtherance thereof, the Administrator had appointed 2 registered valuers who have submitted their report. As per Ind AS 36- "Impairment of Assets", impairment testing of assets is to be conducted on an annual basis. On completion of the CIRP, the Company will consider carrying out a comprehensive review of all the assets including investments, other assets and intangible assets, liabilities and accordingly provide for impairment loss on assets and write back of liabilities, if any.

Subject to the above, impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s history, existing market conditions as well as forward looking estimates at the end of each reporting period.

The Company has adopted the Ind AS while identifying and providing for the Expected Credit Losses (ECL The Company measures credit risk using Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD). This is similar to the approach used for the purposes of measuring Expected Credit Loss (ECL) under Ind AS 109 "Financial Instruments". Company has put in place monitoring mechanisms commensurate with nature and volume of activities.

Collateral and other credit enhancements

The Company employs a range of policies and practices to mitigate credit risk. The most common of these is accepting collateral for funds advanced. The principal collateral types for loans and advances are:

• Charges over business assets such as premises, inventory and accounts receivable; and

• Charges over financial instruments such as debt securities and equities.

Longer-term finance and lending to corporate entities are generally secured.

The Company''s policies regarding obtaining collateral have not significantly changed during the reporting period and there has been no significant change in the overall quality of the collateral held by the Company since the prior period.

The Company closely monitors collateral held for financial assets considered to be credit-impaired, as it becomes more likely that the Company will take possession of collateral to mitigate potential credit losses. Financial assets that are credit-impaired and related collateral held in order to mitigate potential losses.

Write-off policy

The Company writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include (i) ceasing enforcement activity and (ii) where the Company''s recovery method is foreclosing on collateral and the value of the collateral is such that there is no reasonable expectation of recovering in full.

The Company may write-off financial assets that are still subject to enforcement activity. The outstanding contractual amounts of such assets written off during the year ended March 31, 2023 was '' 60,986 lakh (Previous Year Nil ). The Company still seeks to recover amounts it is legally owed in full, but which have been partially written off due to no reasonable expectation of full recovery.

50 Analysis of financial assets and liabilities by remaining contractual maturities

Refer note no 43.2 for the maturity profile of the undiscounted cash flows of the Company''s financial assets and liabilities as at March 31. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

52 The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or other kind of funds) to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

The Company has not received any funds (which are material either individually or in the aggregate) from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

53 The disclosure on the following matters required under Schedule III as amended not being relevant or applicable in case of the Company, same are not covered:

a) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

b) No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami

Transactions (Prohibition) Act, 1 988 (45 of 1988) and rules made thereunder.

c) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

d) No registration and/or satisfaction of charges are pending to be filed with ROC.

e) There are no transactions which are not recorded in the books of account which have been surrendered or disclosed as

income during the year in the tax assessments under the Income Tax Act, 1961.

f) The Company does not have any relationship with struck off companies.

54 Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

There are no Micro and Small Scale Business Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2023. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

55 Figures for the previous year has been regrouped / rearranged wherever necessary to make them comparable to those with the current year

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Mar 31, 2022

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance Company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

The Company''s liability towards the scheme is accounted for on the basis of an independent actuarial valuation done at the year end. The Projected benefit obligation is calculated using Project Unit Credit Method. The valuation of the shares/ units is done considering the intrinsic value and the progression of share/unit price up to the exercise of the option. Fair Value of Phantom Stock Options was estimated on the date of grant on the assumptions of Discount Rate of 6.77% and Expected Life of 5 years.

iii) For the current year the Company has created provision of '' (4.09) crore (Previous year '' (19.60) crore).

25 Segment information

The Company is in the business of providing asset management services to the schemes of Nippon Mutual Fund and portfolio management service to clients. The primary segment is identified as asset management services. Portfolio management services does not qualify as reportable segment as per the criteria mentioned under Ind AS 108 and hence not disclosed separately.

26 Fair value measurement a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level three measurements are valuations not based on observable market data (that is, unobservable inputs). Management applies judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement. The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: The Fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

27 Financial risk management

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk management is carried out by a Risk department under the policies approved by the Board of Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be high

2. The Company has extended loans to various parties. Credit risk on the loans has been managed by the Company through external credit assessments done, if any, by domestic credit rating agencies and continuosly monitoring the credit worthiness of the Company. The Company uses expected credit loss model to assess the impairment loss or gain. Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. As the Company has a contractual right to such receivables as well as has the control over such funds due from customers, the Company does not estimate any credit risk in relation to such receivables. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried in accordance with practice and limits set by the Company after giving due considerations to internal and external factors that could impact the liquidity position of the Company. Further, since the Company has no external borrowings and has sufficent cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s financial assets and liabilities as at March 31. The amounts disclosed in the table are the contractual undiscounted cash flows.

Market Risk

Market risk is the risk of loss of Future earnings, Fair values or Future cash flows related to financial instrument that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk.

Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities. Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that Fair value or Future cash flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free Bonds held by the Company and loans extended by the Company to various parties are at fixed rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, caused by factors specific to an individual investment, its issuer and market. The Company''s exposure to price risk arises from diversified investments in mutual funds, preference shares held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on the Company''s investment in Mutual fund and profit for the period. The analysis is based on the assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant, and that all the Company''s investments in mutual funds moved in line with the NAV.

28 Employee share based payments

Employee stock option scheme (ESOS) (Equity settled)

The Company have ESOS 2017 and ESOS 2019 which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till four years as per Plan. Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company upon payment of the exercise price during the exercise period.

Fair value of options granted

The Fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The options granted for no consideration and will vest upon the completion of service condition as specified in scheme in graded manner. Vested options are exercisable for the period of five years after the vesting.

39 The Company do not have any transactions with struck off companies.

40 The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure in relation to Wilful defaulter is not appliable.

41 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

42 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

43 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

46 The Company does not has any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

The Code on Social Security 2020, relating to employee benefits during employment and post-employment, has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made by the company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in period of notification of the relevant provisions.

Events occurring after the reporting period

The Board of Directors have proposed final dividend of '' 7.50/- per equity share of '' 10/- each for the financial year 202122. This is in addition to the interim dividend of '' 3.50/- per equity share declared by the Board of Directors on October 26, 2021.

The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.

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Mar 31, 2022

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance Company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

The Company''s liability towards the scheme is accounted for on the basis of an independent actuarial valuation done at the year end. The Projected benefit obligation is calculated using Project Unit Credit Method. The valuation of the shares/ units is done considering the intrinsic value and the progression of share/unit price up to the exercise of the option. Fair Value of Phantom Stock Options was estimated on the date of grant on the assumptions of Discount Rate of 6.77% and Expected Life of 5 years.

iii) For the current year the Company has created provision of '' (4.09) crore (Previous year '' (19.60) crore).

25 Segment information

The Company is in the business of providing asset management services to the schemes of Nippon Mutual Fund and portfolio management service to clients. The primary segment is identified as asset management services. Portfolio management services does not qualify as reportable segment as per the criteria mentioned under Ind AS 108 and hence not disclosed separately.

26 Fair value measurement a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level three measurements are valuations not based on observable market data (that is, unobservable inputs). Management applies judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement. The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: The Fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

27 Financial risk management

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk management is carried out by a Risk department under the policies approved by the Board of Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be high

2. The Company has extended loans to various parties. Credit risk on the loans has been managed by the Company through external credit assessments done, if any, by domestic credit rating agencies and continuosly monitoring the credit worthiness of the Company. The Company uses expected credit loss model to assess the impairment loss or gain. Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. As the Company has a contractual right to such receivables as well as has the control over such funds due from customers, the Company does not estimate any credit risk in relation to such receivables. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried in accordance with practice and limits set by the Company after giving due considerations to internal and external factors that could impact the liquidity position of the Company. Further, since the Company has no external borrowings and has sufficent cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s financial assets and liabilities as at March 31. The amounts disclosed in the table are the contractual undiscounted cash flows.

Market Risk

Market risk is the risk of loss of Future earnings, Fair values or Future cash flows related to financial instrument that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk.

Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities. Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that Fair value or Future cash flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free Bonds held by the Company and loans extended by the Company to various parties are at fixed rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, caused by factors specific to an individual investment, its issuer and market. The Company''s exposure to price risk arises from diversified investments in mutual funds, preference shares held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on the Company''s investment in Mutual fund and profit for the period. The analysis is based on the assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant, and that all the Company''s investments in mutual funds moved in line with the NAV.

28 Employee share based payments

Employee stock option scheme (ESOS) (Equity settled)

The Company have ESOS 2017 and ESOS 2019 which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till four years as per Plan. Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company upon payment of the exercise price during the exercise period.

Fair value of options granted

The Fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The options granted for no consideration and will vest upon the completion of service condition as specified in scheme in graded manner. Vested options are exercisable for the period of five years after the vesting.

39 The Company do not have any transactions with struck off companies.

40 The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure in relation to Wilful defaulter is not appliable.

41 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

42 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

43 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

46 The Company does not has any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

The Code on Social Security 2020, relating to employee benefits during employment and post-employment, has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made by the company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in period of notification of the relevant provisions.

Events occurring after the reporting period

The Board of Directors have proposed final dividend of '' 7.50/- per equity share of '' 10/- each for the financial year 202122. This is in addition to the interim dividend of '' 3.50/- per equity share declared by the Board of Directors on October 26, 2021.

The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.

---

Mar 31, 2022

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance Company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

The Company''s liability towards the scheme is accounted for on the basis of an independent actuarial valuation done at the year end. The Projected benefit obligation is calculated using Project Unit Credit Method. The valuation of the shares/ units is done considering the intrinsic value and the progression of share/unit price up to the exercise of the option. Fair Value of Phantom Stock Options was estimated on the date of grant on the assumptions of Discount Rate of 6.77% and Expected Life of 5 years.

iii) For the current year the Company has created provision of '' (4.09) crore (Previous year '' (19.60) crore).

25 Segment information

The Company is in the business of providing asset management services to the schemes of Nippon Mutual Fund and portfolio management service to clients. The primary segment is identified as asset management services. Portfolio management services does not qualify as reportable segment as per the criteria mentioned under Ind AS 108 and hence not disclosed separately.

26 Fair value measurement a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level three measurements are valuations not based on observable market data (that is, unobservable inputs). Management applies judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement. The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: The Fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

27 Financial risk management

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk management is carried out by a Risk department under the policies approved by the Board of Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be high

2. The Company has extended loans to various parties. Credit risk on the loans has been managed by the Company through external credit assessments done, if any, by domestic credit rating agencies and continuosly monitoring the credit worthiness of the Company. The Company uses expected credit loss model to assess the impairment loss or gain. Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. As the Company has a contractual right to such receivables as well as has the control over such funds due from customers, the Company does not estimate any credit risk in relation to such receivables. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried in accordance with practice and limits set by the Company after giving due considerations to internal and external factors that could impact the liquidity position of the Company. Further, since the Company has no external borrowings and has sufficent cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s financial assets and liabilities as at March 31. The amounts disclosed in the table are the contractual undiscounted cash flows.

Market Risk

Market risk is the risk of loss of Future earnings, Fair values or Future cash flows related to financial instrument that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk.

Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities. Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that Fair value or Future cash flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free Bonds held by the Company and loans extended by the Company to various parties are at fixed rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, caused by factors specific to an individual investment, its issuer and market. The Company''s exposure to price risk arises from diversified investments in mutual funds, preference shares held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on the Company''s investment in Mutual fund and profit for the period. The analysis is based on the assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant, and that all the Company''s investments in mutual funds moved in line with the NAV.

28 Employee share based payments

Employee stock option scheme (ESOS) (Equity settled)

The Company have ESOS 2017 and ESOS 2019 which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till four years as per Plan. Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company upon payment of the exercise price during the exercise period.

Fair value of options granted

The Fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The options granted for no consideration and will vest upon the completion of service condition as specified in scheme in graded manner. Vested options are exercisable for the period of five years after the vesting.

39 The Company do not have any transactions with struck off companies.

40 The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure in relation to Wilful defaulter is not appliable.

41 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

42 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

43 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

46 The Company does not has any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

The Code on Social Security 2020, relating to employee benefits during employment and post-employment, has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made by the company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in period of notification of the relevant provisions.

Events occurring after the reporting period

The Board of Directors have proposed final dividend of '' 7.50/- per equity share of '' 10/- each for the financial year 202122. This is in addition to the interim dividend of '' 3.50/- per equity share declared by the Board of Directors on October 26, 2021.

The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.

---

Mar 31, 2022

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance Company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

The Company''s liability towards the scheme is accounted for on the basis of an independent actuarial valuation done at the year end. The Projected benefit obligation is calculated using Project Unit Credit Method. The valuation of the shares/ units is done considering the intrinsic value and the progression of share/unit price up to the exercise of the option. Fair Value of Phantom Stock Options was estimated on the date of grant on the assumptions of Discount Rate of 6.77% and Expected Life of 5 years.

iii) For the current year the Company has created provision of '' (4.09) crore (Previous year '' (19.60) crore).

25 Segment information

The Company is in the business of providing asset management services to the schemes of Nippon Mutual Fund and portfolio management service to clients. The primary segment is identified as asset management services. Portfolio management services does not qualify as reportable segment as per the criteria mentioned under Ind AS 108 and hence not disclosed separately.

26 Fair value measurement a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level three measurements are valuations not based on observable market data (that is, unobservable inputs). Management applies judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement. The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: The Fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

27 Financial risk management

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk management is carried out by a Risk department under the policies approved by the Board of Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be high

2. The Company has extended loans to various parties. Credit risk on the loans has been managed by the Company through external credit assessments done, if any, by domestic credit rating agencies and continuosly monitoring the credit worthiness of the Company. The Company uses expected credit loss model to assess the impairment loss or gain. Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. As the Company has a contractual right to such receivables as well as has the control over such funds due from customers, the Company does not estimate any credit risk in relation to such receivables. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried in accordance with practice and limits set by the Company after giving due considerations to internal and external factors that could impact the liquidity position of the Company. Further, since the Company has no external borrowings and has sufficent cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s financial assets and liabilities as at March 31. The amounts disclosed in the table are the contractual undiscounted cash flows.

Market Risk

Market risk is the risk of loss of Future earnings, Fair values or Future cash flows related to financial instrument that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk.

Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities. Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that Fair value or Future cash flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free Bonds held by the Company and loans extended by the Company to various parties are at fixed rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, caused by factors specific to an individual investment, its issuer and market. The Company''s exposure to price risk arises from diversified investments in mutual funds, preference shares held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on the Company''s investment in Mutual fund and profit for the period. The analysis is based on the assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant, and that all the Company''s investments in mutual funds moved in line with the NAV.

28 Employee share based payments

Employee stock option scheme (ESOS) (Equity settled)

The Company have ESOS 2017 and ESOS 2019 which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till four years as per Plan. Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company upon payment of the exercise price during the exercise period.

Fair value of options granted

The Fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The options granted for no consideration and will vest upon the completion of service condition as specified in scheme in graded manner. Vested options are exercisable for the period of five years after the vesting.

39 The Company do not have any transactions with struck off companies.

40 The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure in relation to Wilful defaulter is not appliable.

41 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

42 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

43 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

46 The Company does not has any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

The Code on Social Security 2020, relating to employee benefits during employment and post-employment, has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made by the company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in period of notification of the relevant provisions.

Events occurring after the reporting period

The Board of Directors have proposed final dividend of '' 7.50/- per equity share of '' 10/- each for the financial year 202122. This is in addition to the interim dividend of '' 3.50/- per equity share declared by the Board of Directors on October 26, 2021.

The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.

---

Mar 31, 2022

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance Company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

The Company''s liability towards the scheme is accounted for on the basis of an independent actuarial valuation done at the year end. The Projected benefit obligation is calculated using Project Unit Credit Method. The valuation of the shares/ units is done considering the intrinsic value and the progression of share/unit price up to the exercise of the option. Fair Value of Phantom Stock Options was estimated on the date of grant on the assumptions of Discount Rate of 6.77% and Expected Life of 5 years.

iii) For the current year the Company has created provision of '' (4.09) crore (Previous year '' (19.60) crore).

25 Segment information

The Company is in the business of providing asset management services to the schemes of Nippon Mutual Fund and portfolio management service to clients. The primary segment is identified as asset management services. Portfolio management services does not qualify as reportable segment as per the criteria mentioned under Ind AS 108 and hence not disclosed separately.

26 Fair value measurement a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level three measurements are valuations not based on observable market data (that is, unobservable inputs). Management applies judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement. The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: The Fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

27 Financial risk management

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk management is carried out by a Risk department under the policies approved by the Board of Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be high

2. The Company has extended loans to various parties. Credit risk on the loans has been managed by the Company through external credit assessments done, if any, by domestic credit rating agencies and continuosly monitoring the credit worthiness of the Company. The Company uses expected credit loss model to assess the impairment loss or gain. Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. As the Company has a contractual right to such receivables as well as has the control over such funds due from customers, the Company does not estimate any credit risk in relation to such receivables. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried in accordance with practice and limits set by the Company after giving due considerations to internal and external factors that could impact the liquidity position of the Company. Further, since the Company has no external borrowings and has sufficent cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s financial assets and liabilities as at March 31. The amounts disclosed in the table are the contractual undiscounted cash flows.

Market Risk

Market risk is the risk of loss of Future earnings, Fair values or Future cash flows related to financial instrument that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk.

Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities. Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that Fair value or Future cash flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free Bonds held by the Company and loans extended by the Company to various parties are at fixed rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, caused by factors specific to an individual investment, its issuer and market. The Company''s exposure to price risk arises from diversified investments in mutual funds, preference shares held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on the Company''s investment in Mutual fund and profit for the period. The analysis is based on the assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant, and that all the Company''s investments in mutual funds moved in line with the NAV.

28 Employee share based payments

Employee stock option scheme (ESOS) (Equity settled)

The Company have ESOS 2017 and ESOS 2019 which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till four years as per Plan. Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company upon payment of the exercise price during the exercise period.

Fair value of options granted

The Fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The options granted for no consideration and will vest upon the completion of service condition as specified in scheme in graded manner. Vested options are exercisable for the period of five years after the vesting.

39 The Company do not have any transactions with struck off companies.

40 The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure in relation to Wilful defaulter is not appliable.

41 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

42 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

43 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

46 The Company does not has any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

The Code on Social Security 2020, relating to employee benefits during employment and post-employment, has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made by the company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in period of notification of the relevant provisions.

Events occurring after the reporting period

The Board of Directors have proposed final dividend of '' 7.50/- per equity share of '' 10/- each for the financial year 202122. This is in addition to the interim dividend of '' 3.50/- per equity share declared by the Board of Directors on October 26, 2021.

The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.

---

Mar 31, 2022

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance Company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

The Company''s liability towards the scheme is accounted for on the basis of an independent actuarial valuation done at the year end. The Projected benefit obligation is calculated using Project Unit Credit Method. The valuation of the shares/ units is done considering the intrinsic value and the progression of share/unit price up to the exercise of the option. Fair Value of Phantom Stock Options was estimated on the date of grant on the assumptions of Discount Rate of 6.77% and Expected Life of 5 years.

iii) For the current year the Company has created provision of '' (4.09) crore (Previous year '' (19.60) crore).

25 Segment information

The Company is in the business of providing asset management services to the schemes of Nippon Mutual Fund and portfolio management service to clients. The primary segment is identified as asset management services. Portfolio management services does not qualify as reportable segment as per the criteria mentioned under Ind AS 108 and hence not disclosed separately.

26 Fair value measurement a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level three measurements are valuations not based on observable market data (that is, unobservable inputs). Management applies judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement. The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: The Fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

27 Financial risk management

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk management is carried out by a Risk department under the policies approved by the Board of Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be high

2. The Company has extended loans to various parties. Credit risk on the loans has been managed by the Company through external credit assessments done, if any, by domestic credit rating agencies and continuosly monitoring the credit worthiness of the Company. The Company uses expected credit loss model to assess the impairment loss or gain. Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. As the Company has a contractual right to such receivables as well as has the control over such funds due from customers, the Company does not estimate any credit risk in relation to such receivables. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried in accordance with practice and limits set by the Company after giving due considerations to internal and external factors that could impact the liquidity position of the Company. Further, since the Company has no external borrowings and has sufficent cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s financial assets and liabilities as at March 31. The amounts disclosed in the table are the contractual undiscounted cash flows.

Market Risk

Market risk is the risk of loss of Future earnings, Fair values or Future cash flows related to financial instrument that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk.

Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities. Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that Fair value or Future cash flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free Bonds held by the Company and loans extended by the Company to various parties are at fixed rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, caused by factors specific to an individual investment, its issuer and market. The Company''s exposure to price risk arises from diversified investments in mutual funds, preference shares held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on the Company''s investment in Mutual fund and profit for the period. The analysis is based on the assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant, and that all the Company''s investments in mutual funds moved in line with the NAV.

28 Employee share based payments

Employee stock option scheme (ESOS) (Equity settled)

The Company have ESOS 2017 and ESOS 2019 which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till four years as per Plan. Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company upon payment of the exercise price during the exercise period.

Fair value of options granted

The Fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The options granted for no consideration and will vest upon the completion of service condition as specified in scheme in graded manner. Vested options are exercisable for the period of five years after the vesting.

39 The Company do not have any transactions with struck off companies.

40 The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure in relation to Wilful defaulter is not appliable.

41 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

42 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

43 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

46 The Company does not has any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

The Code on Social Security 2020, relating to employee benefits during employment and post-employment, has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made by the company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in period of notification of the relevant provisions.

Events occurring after the reporting period

The Board of Directors have proposed final dividend of '' 7.50/- per equity share of '' 10/- each for the financial year 202122. This is in addition to the interim dividend of '' 3.50/- per equity share declared by the Board of Directors on October 26, 2021.

The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.

---

Mar 31, 2022

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance Company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

The Company''s liability towards the scheme is accounted for on the basis of an independent actuarial valuation done at the year end. The Projected benefit obligation is calculated using Project Unit Credit Method. The valuation of the shares/ units is done considering the intrinsic value and the progression of share/unit price up to the exercise of the option. Fair Value of Phantom Stock Options was estimated on the date of grant on the assumptions of Discount Rate of 6.77% and Expected Life of 5 years.

iii) For the current year the Company has created provision of '' (4.09) crore (Previous year '' (19.60) crore).

25 Segment information

The Company is in the business of providing asset management services to the schemes of Nippon Mutual Fund and portfolio management service to clients. The primary segment is identified as asset management services. Portfolio management services does not qualify as reportable segment as per the criteria mentioned under Ind AS 108 and hence not disclosed separately.

26 Fair value measurement a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level three measurements are valuations not based on observable market data (that is, unobservable inputs). Management applies judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement. The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: The Fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

27 Financial risk management

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk management is carried out by a Risk department under the policies approved by the Board of Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be high

2. The Company has extended loans to various parties. Credit risk on the loans has been managed by the Company through external credit assessments done, if any, by domestic credit rating agencies and continuosly monitoring the credit worthiness of the Company. The Company uses expected credit loss model to assess the impairment loss or gain. Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. As the Company has a contractual right to such receivables as well as has the control over such funds due from customers, the Company does not estimate any credit risk in relation to such receivables. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried in accordance with practice and limits set by the Company after giving due considerations to internal and external factors that could impact the liquidity position of the Company. Further, since the Company has no external borrowings and has sufficent cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s financial assets and liabilities as at March 31. The amounts disclosed in the table are the contractual undiscounted cash flows.

Market Risk

Market risk is the risk of loss of Future earnings, Fair values or Future cash flows related to financial instrument that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk.

Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities. Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that Fair value or Future cash flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free Bonds held by the Company and loans extended by the Company to various parties are at fixed rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, caused by factors specific to an individual investment, its issuer and market. The Company''s exposure to price risk arises from diversified investments in mutual funds, preference shares held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on the Company''s investment in Mutual fund and profit for the period. The analysis is based on the assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant, and that all the Company''s investments in mutual funds moved in line with the NAV.

28 Employee share based payments

Employee stock option scheme (ESOS) (Equity settled)

The Company have ESOS 2017 and ESOS 2019 which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till four years as per Plan. Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company upon payment of the exercise price during the exercise period.

Fair value of options granted

The Fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The options granted for no consideration and will vest upon the completion of service condition as specified in scheme in graded manner. Vested options are exercisable for the period of five years after the vesting.

39 The Company do not have any transactions with struck off companies.

40 The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure in relation to Wilful defaulter is not appliable.

41 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

42 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

43 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

46 The Company does not has any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

The Code on Social Security 2020, relating to employee benefits during employment and post-employment, has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made by the company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in period of notification of the relevant provisions.

Events occurring after the reporting period

The Board of Directors have proposed final dividend of '' 7.50/- per equity share of '' 10/- each for the financial year 202122. This is in addition to the interim dividend of '' 3.50/- per equity share declared by the Board of Directors on October 26, 2021.

The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.

---

Mar 31, 2022

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance Company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

The Company''s liability towards the scheme is accounted for on the basis of an independent actuarial valuation done at the year end. The Projected benefit obligation is calculated using Project Unit Credit Method. The valuation of the shares/ units is done considering the intrinsic value and the progression of share/unit price up to the exercise of the option. Fair Value of Phantom Stock Options was estimated on the date of grant on the assumptions of Discount Rate of 6.77% and Expected Life of 5 years.

iii) For the current year the Company has created provision of '' (4.09) crore (Previous year '' (19.60) crore).

25 Segment information

The Company is in the business of providing asset management services to the schemes of Nippon Mutual Fund and portfolio management service to clients. The primary segment is identified as asset management services. Portfolio management services does not qualify as reportable segment as per the criteria mentioned under Ind AS 108 and hence not disclosed separately.

26 Fair value measurement a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level three measurements are valuations not based on observable market data (that is, unobservable inputs). Management applies judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement. The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: The Fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

27 Financial risk management

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk management is carried out by a Risk department under the policies approved by the Board of Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be high

2. The Company has extended loans to various parties. Credit risk on the loans has been managed by the Company through external credit assessments done, if any, by domestic credit rating agencies and continuosly monitoring the credit worthiness of the Company. The Company uses expected credit loss model to assess the impairment loss or gain. Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. As the Company has a contractual right to such receivables as well as has the control over such funds due from customers, the Company does not estimate any credit risk in relation to such receivables. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried in accordance with practice and limits set by the Company after giving due considerations to internal and external factors that could impact the liquidity position of the Company. Further, since the Company has no external borrowings and has sufficent cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s financial assets and liabilities as at March 31. The amounts disclosed in the table are the contractual undiscounted cash flows.

Market Risk

Market risk is the risk of loss of Future earnings, Fair values or Future cash flows related to financial instrument that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk.

Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities. Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that Fair value or Future cash flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free Bonds held by the Company and loans extended by the Company to various parties are at fixed rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, caused by factors specific to an individual investment, its issuer and market. The Company''s exposure to price risk arises from diversified investments in mutual funds, preference shares held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on the Company''s investment in Mutual fund and profit for the period. The analysis is based on the assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant, and that all the Company''s investments in mutual funds moved in line with the NAV.

28 Employee share based payments

Employee stock option scheme (ESOS) (Equity settled)

The Company have ESOS 2017 and ESOS 2019 which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till four years as per Plan. Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company upon payment of the exercise price during the exercise period.

Fair value of options granted

The Fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The options granted for no consideration and will vest upon the completion of service condition as specified in scheme in graded manner. Vested options are exercisable for the period of five years after the vesting.

39 The Company do not have any transactions with struck off companies.

40 The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure in relation to Wilful defaulter is not appliable.

41 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

42 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

43 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

46 The Company does not has any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

The Code on Social Security 2020, relating to employee benefits during employment and post-employment, has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made by the company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in period of notification of the relevant provisions.

Events occurring after the reporting period

The Board of Directors have proposed final dividend of '' 7.50/- per equity share of '' 10/- each for the financial year 202122. This is in addition to the interim dividend of '' 3.50/- per equity share declared by the Board of Directors on October 26, 2021.

The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.

---

Mar 31, 2022

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance Company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

The Company''s liability towards the scheme is accounted for on the basis of an independent actuarial valuation done at the year end. The Projected benefit obligation is calculated using Project Unit Credit Method. The valuation of the shares/ units is done considering the intrinsic value and the progression of share/unit price up to the exercise of the option. Fair Value of Phantom Stock Options was estimated on the date of grant on the assumptions of Discount Rate of 6.77% and Expected Life of 5 years.

iii) For the current year the Company has created provision of '' (4.09) crore (Previous year '' (19.60) crore).

25 Segment information

The Company is in the business of providing asset management services to the schemes of Nippon Mutual Fund and portfolio management service to clients. The primary segment is identified as asset management services. Portfolio management services does not qualify as reportable segment as per the criteria mentioned under Ind AS 108 and hence not disclosed separately.

26 Fair value measurement a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level three measurements are valuations not based on observable market data (that is, unobservable inputs). Management applies judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement. The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: The Fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

27 Financial risk management

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk management is carried out by a Risk department under the policies approved by the Board of Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be high

2. The Company has extended loans to various parties. Credit risk on the loans has been managed by the Company through external credit assessments done, if any, by domestic credit rating agencies and continuosly monitoring the credit worthiness of the Company. The Company uses expected credit loss model to assess the impairment loss or gain. Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. As the Company has a contractual right to such receivables as well as has the control over such funds due from customers, the Company does not estimate any credit risk in relation to such receivables. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried in accordance with practice and limits set by the Company after giving due considerations to internal and external factors that could impact the liquidity position of the Company. Further, since the Company has no external borrowings and has sufficent cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s financial assets and liabilities as at March 31. The amounts disclosed in the table are the contractual undiscounted cash flows.

Market Risk

Market risk is the risk of loss of Future earnings, Fair values or Future cash flows related to financial instrument that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk.

Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities. Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that Fair value or Future cash flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free Bonds held by the Company and loans extended by the Company to various parties are at fixed rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, caused by factors specific to an individual investment, its issuer and market. The Company''s exposure to price risk arises from diversified investments in mutual funds, preference shares held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on the Company''s investment in Mutual fund and profit for the period. The analysis is based on the assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant, and that all the Company''s investments in mutual funds moved in line with the NAV.

28 Employee share based payments

Employee stock option scheme (ESOS) (Equity settled)

The Company have ESOS 2017 and ESOS 2019 which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till four years as per Plan. Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company upon payment of the exercise price during the exercise period.

Fair value of options granted

The Fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The options granted for no consideration and will vest upon the completion of service condition as specified in scheme in graded manner. Vested options are exercisable for the period of five years after the vesting.

39 The Company do not have any transactions with struck off companies.

40 The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure in relation to Wilful defaulter is not appliable.

41 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

42 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

43 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

46 The Company does not has any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

The Code on Social Security 2020, relating to employee benefits during employment and post-employment, has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made by the company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in period of notification of the relevant provisions.

Events occurring after the reporting period

The Board of Directors have proposed final dividend of '' 7.50/- per equity share of '' 10/- each for the financial year 202122. This is in addition to the interim dividend of '' 3.50/- per equity share declared by the Board of Directors on October 26, 2021.

The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.

---

Mar 31, 2022

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

a) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The dividend proposed by the Board of Directors is subject to the approval of Shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

b) Shares reserved for issue under options

Information relating to the Employee Stock Option Scheme (ESOS), including details regarding options issued, exercised and lapsed during the year and options outstanding at the end of the reporting period is set out in note 28.

a) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only For limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act,2013.

b) General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

c) Share based options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under share based payments arrangement over the vesting period. (Refer Note. 28)

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for India employees, which requires contributions to be made to a separately administered fund. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at separation.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the

sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

These plans typically expose the Group to actuarial risks such as: Interest rate risk, salary risk, Investment risk, Asset Liability Matching risk, Mortality risk and Concentration risk.

i) Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

ii) Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

iii) Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

iv) Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

v) Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

vi) Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance Company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

The Company''s liability towards the scheme is accounted for on the basis of an independent actuarial valuation done at the year end. The Projected benefit obligation is calculated using Project Unit Credit Method. The valuation of the shares/ units is done considering the intrinsic value and the progression of share/unit price up to the exercise of the option. Fair Value of Phantom Stock Options was estimated on the date of grant on the assumptions of Discount Rate of 6.77% and Expected Life of 5 years.

iii) For the current year the Company has created provision of '' (4.09) crore (Previous year '' (19.60) crore).

25 Segment information

The Company is in the business of providing asset management services to the schemes of Nippon Mutual Fund and portfolio management service to clients. The primary segment is identified as asset management services. Portfolio management services does not qualify as reportable segment as per the criteria mentioned under Ind AS 108 and hence not disclosed separately.

26 Fair value measurement a) Fair value hierarchy

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level three measurements are valuations not based on observable market data (that is, unobservable inputs). Management applies judgement in categorising financial instruments using the fair value hierarchy. If a fair value measurement uses observable inputs that require significant adjustment, that measurement is a Level 3 measurement. The significance of a valuation input is assessed against the fair value measurement in its entirety.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: The Fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

27 Financial risk management

The Company activities expose it to credit risk, liquidity risk and market risk. The Company''s risk management is carried out by a Risk department under the policies approved by the Board of Directors. The Risk team identifies, evaluates and highlights financial risks in close cooperation with the other departments.

A Credit risk management

Credit risk is the risk of suffering financial loss, should any of the Company''s customers, clients or market counterparties fail to fulfil their contractual obligations to the Company. The Company is also exposed to other credit risks arising from investments in debt securities. Credit risk is the one of the largest risk for the Company''s business; management therefore carefully manages its exposure to credit risk.

1. The maximum exposure to credit risk at the reporting date is primarily from Cash & Cash Equivalents and Bank Fixed Deposit. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be high

2. The Company has extended loans to various parties. Credit risk on the loans has been managed by the Company through external credit assessments done, if any, by domestic credit rating agencies and continuosly monitoring the credit worthiness of the Company. The Company uses expected credit loss model to assess the impairment loss or gain. Refer note 6 for the same.

3. Exposures to customers'' outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. As the Company has a contractual right to such receivables as well as has the control over such funds due from customers, the Company does not estimate any credit risk in relation to such receivables. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour.

B Liquidity risk and funding management

Prudent liquidity risk management implies maintaining sufficient cash and liquid investments to meet payment obligations, when due, under all circumstances.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried in accordance with practice and limits set by the Company after giving due considerations to internal and external factors that could impact the liquidity position of the Company. Further, since the Company has no external borrowings and has sufficent cash and liquid investments to meet payment obligations, there is low liquidity risk.

Analysis of financial assets and liabilities by remaining contractual maturities

The table below summarises the maturity profile of the undiscounted cash flows of the Company''s financial assets and liabilities as at March 31. The amounts disclosed in the table are the contractual undiscounted cash flows.

Market Risk

Market risk is the risk of loss of Future earnings, Fair values or Future cash flows related to financial instrument that may result from adverse changes in market rates and prices (such as foreign exchange rates, interest rates, other prices). The Company is exposed to market risk primarily related to currency risk, interest rate risk and price risk.

Foreign currency risk

The Company has insignificant amount of foreign currency denominated assets and liabilities. Accordingly, there is no significant exposure to currency risk.

ii) Interest Rate Risk

Interest rate risk is the risk where the Company is exposed to the risk that Fair value or Future cash flows of its financial instruments will fluctuate as a result of change in market interest rates. Tax Free Bonds held by the Company and loans extended by the Company to various parties are at fixed rate of coupon and accordingly the Company does not perceive any interest rate risk.

iii) Price risk Exposure

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices and related market variables including interest rate for investments in debt oriented mutual funds and debt securities, caused by factors specific to an individual investment, its issuer and market. The Company''s exposure to price risk arises from diversified investments in mutual funds, preference shares held by the Company and classified in the balance sheet at fair value through profit or loss (note 7).

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the Net Asset Value (NAV) on the Company''s investment in Mutual fund and profit for the period. The analysis is based on the assumption that the NAV increased by 5% or decreased by 5% with all other variables held constant, and that all the Company''s investments in mutual funds moved in line with the NAV.

28 Employee share based payments

Employee stock option scheme (ESOS) (Equity settled)

The Company have ESOS 2017 and ESOS 2019 which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till four years as per Plan. Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company upon payment of the exercise price during the exercise period.

Fair value of options granted

The Fair value at grant date is determined using the Black Scholes Model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The options granted for no consideration and will vest upon the completion of service condition as specified in scheme in graded manner. Vested options are exercisable for the period of five years after the vesting.

39 The Company do not have any transactions with struck off companies.

40 The Company has not borrowed any fund from bank or financial Institution or other lender hence disclosure in relation to Wilful defaulter is not appliable.

41 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

42 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

43 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

44 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

45 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

46 The Company does not has any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

The Code on Social Security 2020, relating to employee benefits during employment and post-employment, has been notified in the Official Gazette on 29th Sep 2020, which could impact the contributions made by the company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified, and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in period of notification of the relevant provisions.

Events occurring after the reporting period

The Board of Directors have proposed final dividend of '' 7.50/- per equity share of '' 10/- each for the financial year 202122. This is in addition to the interim dividend of '' 3.50/- per equity share declared by the Board of Directors on October 26, 2021.

The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.

---

Mar 31, 2018

1. BACKGROUND

Reliance Nippon Life Asset Management Limited (‘the Company’) was incorporated on 24 February 1995.

The Company’s principal activity is to act as an investment manager to Reliance Mutual Fund (‘the Fund’) and to provide Portfolio Management Services (‘PMS’) and advisory services to clients under Securities and Exchange Board of India (SEBI) Regulations. The Company is registered with SEBI under the SEBI (Mutual Funds) Regulations, 1996. The Company manages the investment portfolio of the Fund and provides various administrative services to the Fund as laid down in the Investment Management Agreement dated 12 August 1997.

During the year ended 31 March 2018, the Company completed the Initial Public Offering (IPO) through an offer for sale and fresh issue of equity shares . The equity shares of the Company were listed on National Stock exchange of India Limited and Bombay Stock exchange Limited on 6 November 2017.

Terms / rights attached to equity shares :

The Company has one class of equity shares having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after the distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Iv. Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

During the year ended March 31, 2015, the Company had issued 3,000,000 6% Non-Convertible Non-Cumulative Redeemable Preference shares of Rs.100 each amounting to Rs. 30 Crore for consideration other than cash. On 18 July 2017, the Company has redeemed the same out of free reserves.

(*) The Company does not have any outstanding dues towards small scale industrial undertakings as at March 31, 2018. The Company did not have any outstanding dues to any micro or small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 at any point during the year that were outstanding for a period of more than 45 days from the date of acceptance (as certified by the Management).

2.1 Employees Stock Option Plan (ESOP) :

(i) Pursuant to a resolution dated 8 August 2017, shareholders approved Reliance Nippon Life Asset Management Limited - Employee Stock Option Plan 2017 (‘ESOP 2017’), to provide for grant of option to eligible employees of the companies and subsidiaries. Under the scheme, 49,44,246 equity shares (taking into account the effect of bonus issuance dated 11 August 2017) have been granted to the eligible employees and each option (after it is vested) is excisable for one equity share having face value of Rs 10 each for an exercise price of Rs 204.25. Vesting of the options shall take place over a maximum period of 4 years with a minimum vesting period of 1 year from the date of grant i.e. 8 August 2017. The exercise period would be maximum of 7 years from the date of grant of options.

(i)(c) The Company has chosen to account for the Plan by the Intrinsic Value Method. The total expense recognised for the period arising from stock option plan as per Intrinsic Value Method is Rs.Nil (PY Rs. NA). The net results for the year, had the Company adopted the Fair Value Method, would have been lower by Rs. 1.43 (PY Rs. NA) and accordingly basic and diluted EPS would have been lower by Rs. 0.02 and Rs. 0.02 respectively (PY impact Rs. NA and Rs. NA).

(ii) During the year, performance linked incentive/ ex-gratia of Rs. 27.50 Crore (P.Y. 20.00 Crore) was paid from Reliance Capital Asset Management Employees Benefits Trust out of its surplus funds as per Employee Benefit Scheme, 2016.

2.2 disclosure pursuant to Accounting Standard - 15 (Revised) “ employee Benefits” :

A Defined Contribution Plans:

Contributions to fund made under “Defined Contribution Plans” are recognized as expense in the Statement of profit and loss as follows:

B Defined Benefit Plans:

i. Reconciliation of opening and closing balances of the Present Value of the Defined Benefit Obligation :

The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

vii. General Descriptions of significant defined benefits plans:

a. gratuity Plan :

Gratuity is payable to all eligible employees of the Company on superannuation, death and permanent disablement, in terms of the provisions of the Payment of Gratuity Act 1972 or as per the Company’s Scheme whichever is more beneficial.

b. Leave Plan :

Encashment of leave can be availed by the employee for the balance in the earned account as on 1 January 2009. All carry forward earned leaves are available for availment but not encashment. Leave can be encashed subject to available balance of more than 15 days.

viii. Five-year information

Amounts for the current and the previous four years are as follows:

iii. The Company’s liability towards the scheme is accounted for on the basis of an independent actuarial valuation performed at the year end. The valuation of the shares/units is performed considering the intrinsic value and the progression of share/unit price up to the exercise of the option.

Note

The Company did not have any other long-term contracts including derivative contracts for which there were any material foreseeable losses.

2.3 Related Party Disclosure:

A. List of Related Parties and their relationship:

i) Holding company

Reliance Capital Limited (upto 12 July 2017)

ii) Individual Promoter

Shri Anil D. Ambani, the person having control during the period (Up to 12 July 2017)

iii) Major investing party

Reliance Capital Limited (Ceased to be holding Company w.e.f 13 July 2017)

Nippon Life Insurance Company

iv) Subsidiaries

Reliance Asset Management (Singapore) Pte Limited Reliance Asset Management (Mauritius) Limited Reliance AIF Management Company Limited Reliance Capital Pension Fund Limited (Up to 2 July 2017)

v) Associate

Reliance Capital Pension Fund Limited (Became an associate w.e.f 3 July 2017)

vi) Subsidiaries of holding company (Up to 12 July 2017)

Reliance Capital Trustee Co. Limited Reliance General Insurance Company Limited

Reliance Nippon Life Insurance Company Limited (formerly Reliance Life Insurance Company Limited) Reliance Commercial Finance Limited (formerly Reliance Gilts Limited)

Reliance Money Precious Metals Private Limited Reliance Home Finance Limited Reliance Securities Limited Reliance Commodities Limited Reliance Financial Limited Reliance Wealth Management Limited Reliance Money Solutions Private Limited Reliance Exchangenext Limited

Reliance Corporate Advisory Services Limited (formerly Reliance Spot Exchange Infrastructure Limited) Reliance Capital AIF Trustee Company Private Limited Reliance Health Insurance Limited (w.e.f. 4 May 2017)

Reliance Infocomm Infrastructure Limited Quant Capital Private Limited Quant Broking Private Limited Quant Securities Private Limited Quant Investment Services Private Limited

B. Significant influence: (up to 12 July 2017)

Enterprise over which individual described in clause A (ii) above has control

Reliance Communications Infrastructure Limited

Reliance IDC Limited

Reliance Communications Limited

Reliance Webstore Limited

Zapak Digital Entertainment Limited

C. Key management personnel:

Sundeep Sikka (Whole Time Director) w.e.f. 22 April 2016

2.4 Deferred Tax

In compliance with the Accounting Standard on “Accounting for Taxes on Income” (AS-22) notified under Section 133 of the Act, the Company has made net deferred tax adjustment of Rs. 7.98 Crore (Previous Year - (Rs. 4.62 Crore)) as per details given below. The amount has been debited to the Statement of Profit and Loss.

2.5 Details of Loans given, investment made and guarantee given covered under section 186(4) of the Companies Act 2013:

i. Details of Investments made have been given as part of Notes 3.9A and 3.9B

ii. Loans given below:

* Maximum amount outstanding during the year is Rs. 24.35 Crore (Previous year - Rs. 12.30 Crore) as per additional disclosures pursuant to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

iii. The Company has not given any guarantee or provided any security in connection with loans to any body corporate or person.

2.6 The Company has issued bonus shares of 50 Equity shares for every one Equity share held on the record date i.e. 10 August 2017 through capitalisation of amount standing to the credit of Capital Redemption Reserve and Securities Premium account. Accordingly, the Company has issued 57,60,00,000 equity shares as bonus shares during the year ended March 31, 2018. The Earning Per Share figures for the year ended March 31, 2017 have been restated to give effect to the allotment of the bonus shares, as required by Accounting Standard (AS 20) - Earnings per share.

2.7 Corporate social responsibility (CSR)

a) Gross amount required to be spent by the company during the year was Rs. 10.18 Crore (PY Rs. 8.89 crore) as per calculation.

b) Amount spent for the year ended March 31, 2018:

2.8 Segment Reporting

The Company is in the business of providing asset management services to the fund and portfolio management service to clients. The primary segment is identified as asset management services. As such the Company’s financial statements is largely reflective of the asset management business and there is no separate reportable segment.

Pursuant to Accounting Standard (AS) 17 Segment Reporting, no segment disclosure has been made in these financial statements, as the Company has only one geographical segment and no other separate reportable business segment.

2.9 Asset Management Right:

During the FY 2015-16, the Company and Reliance Capital Trustee Company Limited had jointly entered into a Scheme Transfer Agreement with Goldman Sachs Asset Management (India) Private Limited, Board of Trustees of Goldman Sachs Mutual Fund and Goldman Sachs Asset Management, L.P to acquire the right to manage and administer the schemes of Goldman Sachs Mutual Fund, the right to assume the trusteeship of the schemes of Goldman Sachs Trustee Company (India) Private Limited and takeover of the schemes of Goldman Sachs Mutual Fund respectively. The said transaction has been approved by the relevant regulatory authorities and the Unit holders of the Schemes of Goldman Sachs Mutual Fund in the FY 2016-17. The amount paid along with the incidental expenditure incurred thereon aggregating to Rs. 250.14 Crore has been treated as Asset management Right as intangible asset. The Asset management Right will be amortized over a period of 120 months. For the year ended March 31, 2018, an amount of Rs. 25.01 Crore has been amortized. Balance life of Asset Management Right is 103 months.

2.10 Pursuant to Initial Public offering (‘IPO’), sale of 6,12,00,000 equity shares of face value of Rs. 10 each at Rs. 252 per equity share consisting of fresh issue of 2,44,80,000 equity shares and offer for sale by Reliance Capital Limited and Nippon Life Insurance Company (‘selling shareholders’) of 1,12,30,200 equity shares and 2,54,89,800 equity shares, respectively was completed.

2.11 The details of utilisation of IPO proceeds Rs. 588.85 Crore (net of IPO related expenses) are as follows:

2.12 The Company had estimated Rs. 51.26 Crore (inclusive of taxes) as IPO expenses. Of such IPO related expenses, certain expenses (such as Counsel Fees, Auditor Fees, Marketing, Printing & Stationery) aggregating to Rs. 18.20 Crore (inclusive of taxes) are directly attributable to the Company. Remaining IPO related expenses aggregating to Rs. 33.06 Crore (inclusive of taxes), have been allocated between the Company and selling shareholders in proportion to equity shares offered by them for sale. Expenses to be borne by the selling shareholder has been shared equally by both the shareholders. Selling shareholders have reimbursed Rs. 16.98 Crore to the Company. Till March 31, 2018, an amount of Rs. 51 Crore is paid against IPO related expenses and the balance will be paid in due course. As at March 31, 2018, the total expenses attributable to the Company of Rs 28.04 Crore has been adjusted against Securities Premium Account.

2.13 During the year the Company had declared and paid interim dividend of Rs. 5/- per equity share amounting to Rs. 368.29 Crore (PY: Nil) including dividend distribution tax. In addition, the Board has recommended final dividend of Rs. 1/- per equity share be paid on fully paid equity shares. The same is subject to approval of Shareholders at Annual General Meeting and has not been recorded as a liability in these financial statement in line with the Accounting Standards requirement. The total estimated equity dividend to be paid is Rs. 73.78 Crore (PY Rs. 298.10 crore) including dividend distribution tax.

2.14 Regrouping / Reclassification of Previous Year:

Expenses other than employee benefits expense, depreciation and amortization have been grouped under “Other expenses”. Previous year’s figures have been regrouped/ reclassified wherever necessary to conform current year’s classification/ disclosure. Courier charges have been clubbed with Communication. Advertisement expenses have been clubbed with Marketing expenses and has been renamed as Marketing, advertisement and publicity expenses. Further, Marketing, advertisement and publicity expenses of Rs.6.03 Crore has been reclassified to Outsourced business services. Legal and professional fees of Rs. 10.06 Crore and Rs. 9.05 Crore has been reclassified to Information Technology and Outsourced business services respectively.

2.15 The amounts reflected as “0” in the Financial statements are values with less than rupees one crore.

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Mar 31, 2018

1. BACKGROUND

Reliance Nippon Life Asset Management Limited (‘the Company’) was incorporated on 24 February 1995.

The Company’s principal activity is to act as an investment manager to Reliance Mutual Fund (‘the Fund’) and to provide Portfolio Management Services (‘PMS’) and advisory services to clients under Securities and Exchange Board of India (SEBI) Regulations. The Company is registered with SEBI under the SEBI (Mutual Funds) Regulations, 1996. The Company manages the investment portfolio of the Fund and provides various administrative services to the Fund as laid down in the Investment Management Agreement dated 12 August 1997.

During the year ended 31 March 2018, the Company completed the Initial Public Offering (IPO) through an offer for sale and fresh issue of equity shares . The equity shares of the Company were listed on National Stock exchange of India Limited and Bombay Stock exchange Limited on 6 November 2017.

Terms / rights attached to equity shares :

The Company has one class of equity shares having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after the distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Iv. Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

During the year ended March 31, 2015, the Company had issued 3,000,000 6% Non-Convertible Non-Cumulative Redeemable Preference shares of Rs.100 each amounting to Rs. 30 Crore for consideration other than cash. On 18 July 2017, the Company has redeemed the same out of free reserves.

(*) The Company does not have any outstanding dues towards small scale industrial undertakings as at March 31, 2018. The Company did not have any outstanding dues to any micro or small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 at any point during the year that were outstanding for a period of more than 45 days from the date of acceptance (as certified by the Management).

2.1 Employees Stock Option Plan (ESOP) :

(i) Pursuant to a resolution dated 8 August 2017, shareholders approved Reliance Nippon Life Asset Management Limited - Employee Stock Option Plan 2017 (‘ESOP 2017’), to provide for grant of option to eligible employees of the companies and subsidiaries. Under the scheme, 49,44,246 equity shares (taking into account the effect of bonus issuance dated 11 August 2017) have been granted to the eligible employees and each option (after it is vested) is excisable for one equity share having face value of Rs 10 each for an exercise price of Rs 204.25. Vesting of the options shall take place over a maximum period of 4 years with a minimum vesting period of 1 year from the date of grant i.e. 8 August 2017. The exercise period would be maximum of 7 years from the date of grant of options.

(i)(c) The Company has chosen to account for the Plan by the Intrinsic Value Method. The total expense recognised for the period arising from stock option plan as per Intrinsic Value Method is Rs.Nil (PY Rs. NA). The net results for the year, had the Company adopted the Fair Value Method, would have been lower by Rs. 1.43 (PY Rs. NA) and accordingly basic and diluted EPS would have been lower by Rs. 0.02 and Rs. 0.02 respectively (PY impact Rs. NA and Rs. NA).

(ii) During the year, performance linked incentive/ ex-gratia of Rs. 27.50 Crore (P.Y. 20.00 Crore) was paid from Reliance Capital Asset Management Employees Benefits Trust out of its surplus funds as per Employee Benefit Scheme, 2016.

2.2 disclosure pursuant to Accounting Standard - 15 (Revised) “ employee Benefits” :

A Defined Contribution Plans:

Contributions to fund made under “Defined Contribution Plans” are recognized as expense in the Statement of profit and loss as follows:

B Defined Benefit Plans:

i. Reconciliation of opening and closing balances of the Present Value of the Defined Benefit Obligation :

The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

vii. General Descriptions of significant defined benefits plans:

a. gratuity Plan :

Gratuity is payable to all eligible employees of the Company on superannuation, death and permanent disablement, in terms of the provisions of the Payment of Gratuity Act 1972 or as per the Company’s Scheme whichever is more beneficial.

b. Leave Plan :

Encashment of leave can be availed by the employee for the balance in the earned account as on 1 January 2009. All carry forward earned leaves are available for availment but not encashment. Leave can be encashed subject to available balance of more than 15 days.

viii. Five-year information

Amounts for the current and the previous four years are as follows:

iii. The Company’s liability towards the scheme is accounted for on the basis of an independent actuarial valuation performed at the year end. The valuation of the shares/units is performed considering the intrinsic value and the progression of share/unit price up to the exercise of the option.

Note

The Company did not have any other long-term contracts including derivative contracts for which there were any material foreseeable losses.

2.3 Related Party Disclosure:

A. List of Related Parties and their relationship:

i) Holding company

Reliance Capital Limited (upto 12 July 2017)

ii) Individual Promoter

Shri Anil D. Ambani, the person having control during the period (Up to 12 July 2017)

iii) Major investing party

Reliance Capital Limited (Ceased to be holding Company w.e.f 13 July 2017)

Nippon Life Insurance Company

iv) Subsidiaries

Reliance Asset Management (Singapore) Pte Limited Reliance Asset Management (Mauritius) Limited Reliance AIF Management Company Limited Reliance Capital Pension Fund Limited (Up to 2 July 2017)

v) Associate

Reliance Capital Pension Fund Limited (Became an associate w.e.f 3 July 2017)

vi) Subsidiaries of holding company (Up to 12 July 2017)

Reliance Capital Trustee Co. Limited Reliance General Insurance Company Limited

Reliance Nippon Life Insurance Company Limited (formerly Reliance Life Insurance Company Limited) Reliance Commercial Finance Limited (formerly Reliance Gilts Limited)

Reliance Money Precious Metals Private Limited Reliance Home Finance Limited Reliance Securities Limited Reliance Commodities Limited Reliance Financial Limited Reliance Wealth Management Limited Reliance Money Solutions Private Limited Reliance Exchangenext Limited

Reliance Corporate Advisory Services Limited (formerly Reliance Spot Exchange Infrastructure Limited) Reliance Capital AIF Trustee Company Private Limited Reliance Health Insurance Limited (w.e.f. 4 May 2017)

Reliance Infocomm Infrastructure Limited Quant Capital Private Limited Quant Broking Private Limited Quant Securities Private Limited Quant Investment Services Private Limited

B. Significant influence: (up to 12 July 2017)

Enterprise over which individual described in clause A (ii) above has control

Reliance Communications Infrastructure Limited

Reliance IDC Limited

Reliance Communications Limited

Reliance Webstore Limited

Zapak Digital Entertainment Limited

C. Key management personnel:

Sundeep Sikka (Whole Time Director) w.e.f. 22 April 2016

2.4 Deferred Tax

In compliance with the Accounting Standard on “Accounting for Taxes on Income” (AS-22) notified under Section 133 of the Act, the Company has made net deferred tax adjustment of Rs. 7.98 Crore (Previous Year - (Rs. 4.62 Crore)) as per details given below. The amount has been debited to the Statement of Profit and Loss.

2.5 Details of Loans given, investment made and guarantee given covered under section 186(4) of the Companies Act 2013:

i. Details of Investments made have been given as part of Notes 3.9A and 3.9B

ii. Loans given below:

* Maximum amount outstanding during the year is Rs. 24.35 Crore (Previous year - Rs. 12.30 Crore) as per additional disclosures pursuant to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

iii. The Company has not given any guarantee or provided any security in connection with loans to any body corporate or person.

2.6 The Company has issued bonus shares of 50 Equity shares for every one Equity share held on the record date i.e. 10 August 2017 through capitalisation of amount standing to the credit of Capital Redemption Reserve and Securities Premium account. Accordingly, the Company has issued 57,60,00,000 equity shares as bonus shares during the year ended March 31, 2018. The Earning Per Share figures for the year ended March 31, 2017 have been restated to give effect to the allotment of the bonus shares, as required by Accounting Standard (AS 20) - Earnings per share.

2.7 Corporate social responsibility (CSR)

a) Gross amount required to be spent by the company during the year was Rs. 10.18 Crore (PY Rs. 8.89 crore) as per calculation.

b) Amount spent for the year ended March 31, 2018:

2.8 Segment Reporting

The Company is in the business of providing asset management services to the fund and portfolio management service to clients. The primary segment is identified as asset management services. As such the Company’s financial statements is largely reflective of the asset management business and there is no separate reportable segment.

Pursuant to Accounting Standard (AS) 17 Segment Reporting, no segment disclosure has been made in these financial statements, as the Company has only one geographical segment and no other separate reportable business segment.

2.9 Asset Management Right:

During the FY 2015-16, the Company and Reliance Capital Trustee Company Limited had jointly entered into a Scheme Transfer Agreement with Goldman Sachs Asset Management (India) Private Limited, Board of Trustees of Goldman Sachs Mutual Fund and Goldman Sachs Asset Management, L.P to acquire the right to manage and administer the schemes of Goldman Sachs Mutual Fund, the right to assume the trusteeship of the schemes of Goldman Sachs Trustee Company (India) Private Limited and takeover of the schemes of Goldman Sachs Mutual Fund respectively. The said transaction has been approved by the relevant regulatory authorities and the Unit holders of the Schemes of Goldman Sachs Mutual Fund in the FY 2016-17. The amount paid along with the incidental expenditure incurred thereon aggregating to Rs. 250.14 Crore has been treated as Asset management Right as intangible asset. The Asset management Right will be amortized over a period of 120 months. For the year ended March 31, 2018, an amount of Rs. 25.01 Crore has been amortized. Balance life of Asset Management Right is 103 months.

2.10 Pursuant to Initial Public offering (‘IPO’), sale of 6,12,00,000 equity shares of face value of Rs. 10 each at Rs. 252 per equity share consisting of fresh issue of 2,44,80,000 equity shares and offer for sale by Reliance Capital Limited and Nippon Life Insurance Company (‘selling shareholders’) of 1,12,30,200 equity shares and 2,54,89,800 equity shares, respectively was completed.

2.11 The details of utilisation of IPO proceeds Rs. 588.85 Crore (net of IPO related expenses) are as follows:

2.12 The Company had estimated Rs. 51.26 Crore (inclusive of taxes) as IPO expenses. Of such IPO related expenses, certain expenses (such as Counsel Fees, Auditor Fees, Marketing, Printing & Stationery) aggregating to Rs. 18.20 Crore (inclusive of taxes) are directly attributable to the Company. Remaining IPO related expenses aggregating to Rs. 33.06 Crore (inclusive of taxes), have been allocated between the Company and selling shareholders in proportion to equity shares offered by them for sale. Expenses to be borne by the selling shareholder has been shared equally by both the shareholders. Selling shareholders have reimbursed Rs. 16.98 Crore to the Company. Till March 31, 2018, an amount of Rs. 51 Crore is paid against IPO related expenses and the balance will be paid in due course. As at March 31, 2018, the total expenses attributable to the Company of Rs 28.04 Crore has been adjusted against Securities Premium Account.

2.13 During the year the Company had declared and paid interim dividend of Rs. 5/- per equity share amounting to Rs. 368.29 Crore (PY: Nil) including dividend distribution tax. In addition, the Board has recommended final dividend of Rs. 1/- per equity share be paid on fully paid equity shares. The same is subject to approval of Shareholders at Annual General Meeting and has not been recorded as a liability in these financial statement in line with the Accounting Standards requirement. The total estimated equity dividend to be paid is Rs. 73.78 Crore (PY Rs. 298.10 crore) including dividend distribution tax.

2.14 Regrouping / Reclassification of Previous Year:

Expenses other than employee benefits expense, depreciation and amortization have been grouped under “Other expenses”. Previous year’s figures have been regrouped/ reclassified wherever necessary to conform current year’s classification/ disclosure. Courier charges have been clubbed with Communication. Advertisement expenses have been clubbed with Marketing expenses and has been renamed as Marketing, advertisement and publicity expenses. Further, Marketing, advertisement and publicity expenses of Rs.6.03 Crore has been reclassified to Outsourced business services. Legal and professional fees of Rs. 10.06 Crore and Rs. 9.05 Crore has been reclassified to Information Technology and Outsourced business services respectively.

2.15 The amounts reflected as “0” in the Financial statements are values with less than rupees one crore.

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Mar 31, 2018

1. BACKGROUND

Reliance Nippon Life Asset Management Limited (‘the Company’) was incorporated on 24 February 1995.

The Company’s principal activity is to act as an investment manager to Reliance Mutual Fund (‘the Fund’) and to provide Portfolio Management Services (‘PMS’) and advisory services to clients under Securities and Exchange Board of India (SEBI) Regulations. The Company is registered with SEBI under the SEBI (Mutual Funds) Regulations, 1996. The Company manages the investment portfolio of the Fund and provides various administrative services to the Fund as laid down in the Investment Management Agreement dated 12 August 1997.

During the year ended 31 March 2018, the Company completed the Initial Public Offering (IPO) through an offer for sale and fresh issue of equity shares . The equity shares of the Company were listed on National Stock exchange of India Limited and Bombay Stock exchange Limited on 6 November 2017.

Terms / rights attached to equity shares :

The Company has one class of equity shares having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after the distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Iv. Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

During the year ended March 31, 2015, the Company had issued 3,000,000 6% Non-Convertible Non-Cumulative Redeemable Preference shares of Rs.100 each amounting to Rs. 30 Crore for consideration other than cash. On 18 July 2017, the Company has redeemed the same out of free reserves.

(*) The Company does not have any outstanding dues towards small scale industrial undertakings as at March 31, 2018. The Company did not have any outstanding dues to any micro or small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 at any point during the year that were outstanding for a period of more than 45 days from the date of acceptance (as certified by the Management).

2.1 Employees Stock Option Plan (ESOP) :

(i) Pursuant to a resolution dated 8 August 2017, shareholders approved Reliance Nippon Life Asset Management Limited - Employee Stock Option Plan 2017 (‘ESOP 2017’), to provide for grant of option to eligible employees of the companies and subsidiaries. Under the scheme, 49,44,246 equity shares (taking into account the effect of bonus issuance dated 11 August 2017) have been granted to the eligible employees and each option (after it is vested) is excisable for one equity share having face value of Rs 10 each for an exercise price of Rs 204.25. Vesting of the options shall take place over a maximum period of 4 years with a minimum vesting period of 1 year from the date of grant i.e. 8 August 2017. The exercise period would be maximum of 7 years from the date of grant of options.

(i)(c) The Company has chosen to account for the Plan by the Intrinsic Value Method. The total expense recognised for the period arising from stock option plan as per Intrinsic Value Method is Rs.Nil (PY Rs. NA). The net results for the year, had the Company adopted the Fair Value Method, would have been lower by Rs. 1.43 (PY Rs. NA) and accordingly basic and diluted EPS would have been lower by Rs. 0.02 and Rs. 0.02 respectively (PY impact Rs. NA and Rs. NA).

(ii) During the year, performance linked incentive/ ex-gratia of Rs. 27.50 Crore (P.Y. 20.00 Crore) was paid from Reliance Capital Asset Management Employees Benefits Trust out of its surplus funds as per Employee Benefit Scheme, 2016.

2.2 disclosure pursuant to Accounting Standard - 15 (Revised) “ employee Benefits” :

A Defined Contribution Plans:

Contributions to fund made under “Defined Contribution Plans” are recognized as expense in the Statement of profit and loss as follows:

B Defined Benefit Plans:

i. Reconciliation of opening and closing balances of the Present Value of the Defined Benefit Obligation :

The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

vii. General Descriptions of significant defined benefits plans:

a. gratuity Plan :

Gratuity is payable to all eligible employees of the Company on superannuation, death and permanent disablement, in terms of the provisions of the Payment of Gratuity Act 1972 or as per the Company’s Scheme whichever is more beneficial.

b. Leave Plan :

Encashment of leave can be availed by the employee for the balance in the earned account as on 1 January 2009. All carry forward earned leaves are available for availment but not encashment. Leave can be encashed subject to available balance of more than 15 days.

viii. Five-year information

Amounts for the current and the previous four years are as follows:

iii. The Company’s liability towards the scheme is accounted for on the basis of an independent actuarial valuation performed at the year end. The valuation of the shares/units is performed considering the intrinsic value and the progression of share/unit price up to the exercise of the option.

Note

The Company did not have any other long-term contracts including derivative contracts for which there were any material foreseeable losses.

2.3 Related Party Disclosure:

A. List of Related Parties and their relationship:

i) Holding company

Reliance Capital Limited (upto 12 July 2017)

ii) Individual Promoter

Shri Anil D. Ambani, the person having control during the period (Up to 12 July 2017)

iii) Major investing party

Reliance Capital Limited (Ceased to be holding Company w.e.f 13 July 2017)

Nippon Life Insurance Company

iv) Subsidiaries

Reliance Asset Management (Singapore) Pte Limited Reliance Asset Management (Mauritius) Limited Reliance AIF Management Company Limited Reliance Capital Pension Fund Limited (Up to 2 July 2017)

v) Associate

Reliance Capital Pension Fund Limited (Became an associate w.e.f 3 July 2017)

vi) Subsidiaries of holding company (Up to 12 July 2017)

Reliance Capital Trustee Co. Limited Reliance General Insurance Company Limited

Reliance Nippon Life Insurance Company Limited (formerly Reliance Life Insurance Company Limited) Reliance Commercial Finance Limited (formerly Reliance Gilts Limited)

Reliance Money Precious Metals Private Limited Reliance Home Finance Limited Reliance Securities Limited Reliance Commodities Limited Reliance Financial Limited Reliance Wealth Management Limited Reliance Money Solutions Private Limited Reliance Exchangenext Limited

Reliance Corporate Advisory Services Limited (formerly Reliance Spot Exchange Infrastructure Limited) Reliance Capital AIF Trustee Company Private Limited Reliance Health Insurance Limited (w.e.f. 4 May 2017)

Reliance Infocomm Infrastructure Limited Quant Capital Private Limited Quant Broking Private Limited Quant Securities Private Limited Quant Investment Services Private Limited

B. Significant influence: (up to 12 July 2017)

Enterprise over which individual described in clause A (ii) above has control

Reliance Communications Infrastructure Limited

Reliance IDC Limited

Reliance Communications Limited

Reliance Webstore Limited

Zapak Digital Entertainment Limited

C. Key management personnel:

Sundeep Sikka (Whole Time Director) w.e.f. 22 April 2016

2.4 Deferred Tax

In compliance with the Accounting Standard on “Accounting for Taxes on Income” (AS-22) notified under Section 133 of the Act, the Company has made net deferred tax adjustment of Rs. 7.98 Crore (Previous Year - (Rs. 4.62 Crore)) as per details given below. The amount has been debited to the Statement of Profit and Loss.

2.5 Details of Loans given, investment made and guarantee given covered under section 186(4) of the Companies Act 2013:

i. Details of Investments made have been given as part of Notes 3.9A and 3.9B

ii. Loans given below:

* Maximum amount outstanding during the year is Rs. 24.35 Crore (Previous year - Rs. 12.30 Crore) as per additional disclosures pursuant to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

iii. The Company has not given any guarantee or provided any security in connection with loans to any body corporate or person.

2.6 The Company has issued bonus shares of 50 Equity shares for every one Equity share held on the record date i.e. 10 August 2017 through capitalisation of amount standing to the credit of Capital Redemption Reserve and Securities Premium account. Accordingly, the Company has issued 57,60,00,000 equity shares as bonus shares during the year ended March 31, 2018. The Earning Per Share figures for the year ended March 31, 2017 have been restated to give effect to the allotment of the bonus shares, as required by Accounting Standard (AS 20) - Earnings per share.

2.7 Corporate social responsibility (CSR)

a) Gross amount required to be spent by the company during the year was Rs. 10.18 Crore (PY Rs. 8.89 crore) as per calculation.

b) Amount spent for the year ended March 31, 2018:

2.8 Segment Reporting

The Company is in the business of providing asset management services to the fund and portfolio management service to clients. The primary segment is identified as asset management services. As such the Company’s financial statements is largely reflective of the asset management business and there is no separate reportable segment.

Pursuant to Accounting Standard (AS) 17 Segment Reporting, no segment disclosure has been made in these financial statements, as the Company has only one geographical segment and no other separate reportable business segment.

2.9 Asset Management Right:

During the FY 2015-16, the Company and Reliance Capital Trustee Company Limited had jointly entered into a Scheme Transfer Agreement with Goldman Sachs Asset Management (India) Private Limited, Board of Trustees of Goldman Sachs Mutual Fund and Goldman Sachs Asset Management, L.P to acquire the right to manage and administer the schemes of Goldman Sachs Mutual Fund, the right to assume the trusteeship of the schemes of Goldman Sachs Trustee Company (India) Private Limited and takeover of the schemes of Goldman Sachs Mutual Fund respectively. The said transaction has been approved by the relevant regulatory authorities and the Unit holders of the Schemes of Goldman Sachs Mutual Fund in the FY 2016-17. The amount paid along with the incidental expenditure incurred thereon aggregating to Rs. 250.14 Crore has been treated as Asset management Right as intangible asset. The Asset management Right will be amortized over a period of 120 months. For the year ended March 31, 2018, an amount of Rs. 25.01 Crore has been amortized. Balance life of Asset Management Right is 103 months.

2.10 Pursuant to Initial Public offering (‘IPO’), sale of 6,12,00,000 equity shares of face value of Rs. 10 each at Rs. 252 per equity share consisting of fresh issue of 2,44,80,000 equity shares and offer for sale by Reliance Capital Limited and Nippon Life Insurance Company (‘selling shareholders’) of 1,12,30,200 equity shares and 2,54,89,800 equity shares, respectively was completed.

2.11 The details of utilisation of IPO proceeds Rs. 588.85 Crore (net of IPO related expenses) are as follows:

2.12 The Company had estimated Rs. 51.26 Crore (inclusive of taxes) as IPO expenses. Of such IPO related expenses, certain expenses (such as Counsel Fees, Auditor Fees, Marketing, Printing & Stationery) aggregating to Rs. 18.20 Crore (inclusive of taxes) are directly attributable to the Company. Remaining IPO related expenses aggregating to Rs. 33.06 Crore (inclusive of taxes), have been allocated between the Company and selling shareholders in proportion to equity shares offered by them for sale. Expenses to be borne by the selling shareholder has been shared equally by both the shareholders. Selling shareholders have reimbursed Rs. 16.98 Crore to the Company. Till March 31, 2018, an amount of Rs. 51 Crore is paid against IPO related expenses and the balance will be paid in due course. As at March 31, 2018, the total expenses attributable to the Company of Rs 28.04 Crore has been adjusted against Securities Premium Account.

2.13 During the year the Company had declared and paid interim dividend of Rs. 5/- per equity share amounting to Rs. 368.29 Crore (PY: Nil) including dividend distribution tax. In addition, the Board has recommended final dividend of Rs. 1/- per equity share be paid on fully paid equity shares. The same is subject to approval of Shareholders at Annual General Meeting and has not been recorded as a liability in these financial statement in line with the Accounting Standards requirement. The total estimated equity dividend to be paid is Rs. 73.78 Crore (PY Rs. 298.10 crore) including dividend distribution tax.

2.14 Regrouping / Reclassification of Previous Year:

Expenses other than employee benefits expense, depreciation and amortization have been grouped under “Other expenses”. Previous year’s figures have been regrouped/ reclassified wherever necessary to conform current year’s classification/ disclosure. Courier charges have been clubbed with Communication. Advertisement expenses have been clubbed with Marketing expenses and has been renamed as Marketing, advertisement and publicity expenses. Further, Marketing, advertisement and publicity expenses of Rs.6.03 Crore has been reclassified to Outsourced business services. Legal and professional fees of Rs. 10.06 Crore and Rs. 9.05 Crore has been reclassified to Information Technology and Outsourced business services respectively.

2.15 The amounts reflected as “0” in the Financial statements are values with less than rupees one crore.

---

Mar 31, 2017

Notes:

* Includes provision for expenses, statutory payables, securitisation / assignment payable and other payables.

# Does not include any amounts, due and outstanding, to be transferred to the Investor Education and Protection Fund created pursuant to Section 125 of the Companies Act, 2013.

5. Pursuant to the event of merger or business combination of Yatra Online Inc. with Terrapin 3 Acquisition Corporation, the company has allotted 3023771 equity shares against conversion of 4200042 Series A, 27, 31,960 Series B & 1144946 Series C Preference share of Yatra Online Inc. subsequently these equity share are listed on New York Stock Exchange .

6. Investment in 38,85,24,405 (Previous year 38,85,24,405) equity shares of Reliance Nippon Life Insurance Company Limited and 9,000 (Previous year 9,000) equity shares of Reliance DigiTech Limited (formerly Reliance CWT India Limited) are carried at fair value i.e. at amount transferred under the Scheme of Amalgamation.

7. Pursuant to Scheme of Arrangement effective on February 7, 2017, Reliance Money Express Limited (RMEL) got merged with Reliance Securities Limited (RSL) on account which RSL issued preference shares to the extent of equity shares of RMEL.

8. The Company has been allotted Warrants without paying any consideration at the time of allotment.

9. The Company has entered into a joint venture with KGS Developers Limited in respect of real estate project development. The Company has invested Rs, 85 crore in the financial year 2008-09, current year outstanding is Rs, 69 crore and is entitled to share the Profit / Loss equally. However assets, liabilities, revenue and expenses related to the project were not included in the financial statements of the Company of the previous year as it does not meet the definition criteria of a Joint Venture under AS 27 ''''Financial Reporting of Interests in Joint Ventures". In the current year, as a part of the settlement award granted by the Arbitral Tribunal, the Company has been granted with the land of the real estate project. Accordingly, pending the transfer of land the amount has been re-classified as capex advances.

10. Investments include Rs, Nil (Previous year Rs, 67 crore) of equity shares given as collateral/pledge towards margin with brokers.

11. # Investments in Nil (Previous year 33 197) equity shares of Jindal Saw Limited amounting to Rs, Nil (Previous year Rs, 29 96 693) are given to comply with the margin requirements, thus these securities are not in the name of the Company.

In respect of balances with Scheduled Banks in Fixed deposit accounts, Rs, Nil (Previous year Rs, 42 crore) is kept as credit enhancement towards securitization / assignment transaction, Rs, 5 33 932 (Previous year Rs, 5 33 932) is kept as deposit with sales tax authority, Rs, 20 00 000 (Previous year Rs, 5 00 000) is kept as deposit with the Pension Fund Regulatory and Development Authority (PFRDA) and Rs, Nil (Previous year Rs, 32 crore) is kept as deposit with stock exchanges for margins.

1. Security clause / maturity profiles in respect to Secured Loans from banks / debentures

(i) Non convertible debentures (NCDs) are redeemable at par, in one or more installments, on various dates:

(a) NCDs amounting to Rs, 4 039 crore (Previous year Rs, 4 378 crore) are secured by way of first pari passu legal mortgage and charge over the premises situated at Avdesh House, near Pritam Nagar, Ellisbridge, Ahmedabad and additional first pari passu charge by way of hypothecation on present and future book debts / business receivables of the Company. Business receivables includes Fixed Asset, Current Assets, Investments and any other assets, against security not exceeding Rs, 4 288 crore (Previous year Rs, 4 935 crore).

(b) NCDs amounting to Rs, 9 790 crore (Previous year Rs, 4 992 crore) are secured by way of first pari passu legal mortgage and charge over the premises situated at Avdesh House, near Pritam Nagar, Ellisbridge, Ahmedabad and additional first pari passu charge by way of hypothecation on present and future book debts / business receivables of the Company (except security towards securing Outstanding Term Loan and Cash Credit Limits). Business receivables includes Current Assets and Investments, against security not exceeding Rs, 9 915 crore (Previous year Rs, 5 317 crore).

(c) Unsecured NCDs amounting to Rs, 1 423 crore (Previous year Rs, 1 423 crore) are in respect to Tier II subordinate debts.

(d) Maturity profile and Rate of interest of Non Convertible Debentures are as set out below:

# Zero coupon deep discount non convertible debentures

(ii) Term Loans from banks includes Rs, Nil (Previous year Rs, 6 939 crore) are secured by pari passu first charge on all present and future book debts, receivables, bills, claims and loan assets of the Company''s commercial finance division.

2. The Company was a partner in Reliance Capital Partners and ceased to be a partner as on March 31, 2017

a) The firm consists of following partners and their balances:

b) Profit Sharing Ratio: The profit / (loss) is distributed between the partners on the basis of the weighted average capital. The loss for the current financial year is Rs, 0.39 crore (Previous year Profit Rs, 13 crore).

3. Tax on Proposed Dividend

In view of Section 115 - O of the Income Tax Act, 1961, the Company has reduced its dividend tax liabilities to the extent dividend received / receivable from its subsidiary company viz. Reliance Nippon Life Asset Management Limited:

4. Employees Stock Option Plans

a) The Company operated two Employee Stock Option Plans; ESOS Plan A and ESOS Plan B introduced in the financial year 2009-10. All options granted under the ESOS Plan A and ESOS Plan B have been surrendered and lapsed in the previous year. The Company managed the ESOS Plan A and ESOS Plan B through a Trust. Advance of Rs, 59 crore (net of written off Rs, 64 crore) Previous Year Rs, 59 crore (net of written off Rs, 64 crore) has been granted to Trust. Out of the said advance, Trust has purchased 16 00 000 equity shares for the above purpose.

b) The Company introduced ESOP 2015 which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till five years as per Plan. Each Option entitles the holder thereof to apply for and be allotted/transferred one Equity Share of the Company upon payment of the exercise price during the exercise period.

The Company has chosen to account for the Plan by the Intrinic Value Method. The total expense recognized for the period arising from stock option plan as per Intrinic Value Method is Rs, Nil (Previous year Rs, Nil). Had the Company adopted fair value method the net results for the year would have been lower by Rs, 89 lakh (Previous year Rs, Nil) [net of tax saving Rs, 71 lakh (Previous year Rs, Nil)] and accordingly EPS (Both Basic and Diluted) would have been lower by Rs, 0.03 (Previous year Rs, 0.03).

c) Other employee benefits

Phantom Stock Option Scheme:

As a long term incentive plan to employees, the Company has initiated Phantom Stock Option Plan on October 15, 2015 which are cash settlement rights where the employees are entitled to get cash compensation based on a agreed formulae linked to market value of subsidiary company shares upon exercise of phantom stock options over notional or hypothetical shares,

Liability towards the scheme is accounted for on the basis of an independent actuarial valuation done at the year end. The valuation of the shares is done considering the Projected Unit Credit Method and the progression of share price up to the exercise of the option. Fair Value of Phantom Stock Options was estimated on the date of grant on the assumptions of Discount Rate of 6.77% and Expected Life of 4 years.

Vested Phantom Options can be exercised on continuation of employment any time upto 3 years from the date of last vesting and upon cessation of employment as per the terms of the Scheme. Settlement of Phantom Option is done in cash within 90 days from the date of exercise. For the current year the Company has created provision of Rs, 2 crore (Previous year Rs, 1 crore).

Notes:

i) The above figures are shown in rupees in crore with two decimals to be more representative.

ii) The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

iii) General Descriptions of significant defined plans:

a) Gratuity plan

Gratuity is payable to all eligible employees of the Company on superannuation, death and permanent disablement, in terms of the provisions of the Payment of Gratuity Act, 1 972 or as per the Company''s Scheme whichever is more beneficial.

b) Leave plan

Encashment of leave can be availed by the employee for balance in the earned account as on January 1, 2009. All carry forward earned leaves with a maximum limit of 10 Days, are available for a ailment but not for encashment.

5. Segment reporting

As per paragraph 4 of Accounting Standard (AS) 17, on "Segment Reporting" notified by the Companies (Accounts) Rules, 2014, where a single financial report contains both consolidated financial statements and the separate financial statements of the holding company, segment reporting needs to be presented only on the basis of consolidated financial statements. In view of this, segment information has been presented at Note No. 46 of the consolidated financial statements.

6. Related party disclosures

A. List of Related Parties and their relationship:

i) Major investing party

Reliance Inceptum Private Limited

ii) Individual Promoter

Shri Anil D. Ambani, the person having control during the year.

iii) Subsidiaries

1 Reliance Nippon Life Asset Management Limited 15 Reliance Securities Limited (RSL)

(formerly Reliance Capital Asset Management Limited)

(RNLAML)

2 Reliance Asset Management (Mauritius) Limited 16 Reliance Commodities Limited (RCoL)

(RAMML)

3 Reliance Asset Management (Singapore) Pte. Limited 17 Reliance Financial Limited (RFL)

(RAMSL)

4 Reliance Capital Asset Management (UK) Limited 18 Reliance Money Express Limited (RMEL) (RCAMUL) (dissolved w.e.f. June 14, 2016) (ceased w.e.f. February 7, 2017)

5 Reliance Capital Pension Fund Limited (RCPFL) 19 Reliance Money Precious Metals Private Limited

(RMPMPL)

6 Reliance AIF Management Company Limited (RAMCL) 20 Reliance Money Solutions Private Limited

(RMSPL)

7 Reliance Capital Trustee Co. Limited (RCTC) 21 Reliance Wealth Management Limited (RWML)

8 Reliance General Insurance Company Limited (RGICL) 22 Quant Capital Private Limited (QCPL)

9 Reliance Nippon Life Insurance Company Limited 23 Quant Capital Finance and Investments Private (formerly Reliance Life Insurance Company Limited) Limited (QCFIPL) (ceased w.e.f. July 7, 2016) (RNLICL)

10 Reliance Commercial Finance Limited (formerly Reliance 24 Quant Broking Private Limited (QBPL)

Gilts Limited) (RCFL)

11 Reliance Home Finance Limited (RHFL) 25 Quant Commodity Broking Private Limited

(QCBPL) (ceased w.e.f. August 18, 2016)

12 Reliance Exchangenext Limited (RNext) 26 Quant Investment Services Private Limited

(QISPL)

13 Reliance Corporate Advisory Services Limited (RCASL) 27 Quant Securities Private Limited (QSPL)

(formerly Reliance Spot Exchange Infrastructure Limited)

14 Reliance Capital AIF Trustee Company Private Limited (RCATCPL)

iv) Partnership firm

Reliance Capital Partners (RCP) (ceased w.e.f. March 31, 2017)

v) Associates

1 Reliance Asset Reconstruction Company Limited (RARC) 3 Indian Commodity Exchange Limited (ICEX)

2 Ammolite Holdings Limited (AHL) 4 Quant Commodity Broking Private Limited QCBPL)

(w.e.f. from August 18, 2016)

vi) Key Managerial Personnel (KMP) and KMP Relatives

1 Shri Soumen Ghosh - Executive Director & Group CEO (ceased w.e.f. March 31, 2017)

2 Shri Amit Bapna - Chief Financial Officer

3 Shri V. R. Mohan - President & Company Secretary (superannuation w.e.f. March 31, 2017)

4 Smt. Caroline Ghosh - KMP Relative (ceased w.e.f. March 31, 2017)

5 Shri Vijay Singh Bapna - KMP Relative

6 Shri Atul Tandon - Company Secretary & Compliance Officer (w.e.f. February 10, 2017)

7 Shri Jai Anmol Ambani - Executive Director (w.e.f. September 27, 2016)

D. The nature and volume of material transactions for the year with above related parties are as follows:

Debentures (Borrowings)

Debentures redeemed during the year include Rs, 167 crore (Previous year Rs, 152 crore) to RSL, Rs, 40 crore (Previous year Rs, Nil) to RGICL and Rs, 39 crore (Previous year Rs, Nil) to RFL. Debentures as at March 31 2017 includes Rs, 9 crore (Previous year Rs, 12 crore) to RSL, Rs, 225 crore (Previous year Rs, 225 crore) to RGICL and Rs, 12 crore (Previous year Rs, Nil) to RFL. Accrued Interest on debentures as at March 31, 2017 include Rs, 14 crore (Previous year Rs, 10 crore) to RGICL.

Fixed Assets

Fixed assets purchased during the year, include Rs, Nil (Previous year Rs, 48,86,889) from RCIL. Fixed assets sold during the year include Rs, Nil (Previous year Rs, 6,06,392) to RMSPL and Rs, 3,28,811 (Previous year Rs, Nil) to Shri V. R. Mohan.

Investments

Investments subscribed / purchased during the year include Rs, 2,150 crore (Previous year Rs, 51 crore) from RCFL, Rs, Nil (Previous year Rs, 66 crore) from RFL, Rs, Nil (Previous year Rs, 25 crore) from RMSPL, Rs, 1,218 crore (Previous year Rs, Nil) from RCASL, Rs, 200 crore (Previous year Rs, Nil) from RhFL, Rs, Nil (Previous year Rs, 17 crore) from RMPMPL and includes Rs, 3 crore (Previous year Rs, Nil) from NCPL. Investments redeemed / sold during the year include Rs, 113 crore (Previous year Rs, Nil) to RNLICL, Rs, 126 crore (Previous year Rs, Nil) to RHFL, '' 859 crore (Previous year '' Nil) to

RCASL and includes Rs, Nil (Previous year Rs, 632 crore) to RBEPL. Investments Balance as at March 31, 2017 includes Rs, 1,837 crore (Previous year Rs, 1,742 crore) of RGICL, Rs, 521 crore (Previous year Rs, 321 crore) to RHFL, Rs, 175 crore (Previous year Rs, 150 crore) of RSL, Rs, 200 crore (Previous year Rs, 200 crore) of QCPL, Rs, 35 crore (Previous year Rs, 13 crore) of RNext [Net of written off Rs, 69 crore (Previous year Rs, 69 crore)], Rs, 5,077 crore (Previous year Rs, 5,077 crore) of RNLICL, Rs, 247 crore (Previous year Rs, 247 crore) of RNLAM and Rs, 1,218 crore (Previous year Rs, Nil) of RCASL, Rs, 2,213 crore (Previous year Rs, 63 crore) from RCFL Rs, 180 crore (Previous year Rs, 220 crore) of RCL [Net of provision of Rs, 113 crore (Previous year Rs, 73 crore)], Rs, 49 crore (Previous year Rs, 49 crore) of RARC, Rs, Nil (Previous year Rs, Nil) of AHL [Net of Provision Rs, 29 crore (Previous year Rs, 29 crore)].

Partnership Current Accounts

Withdrawal during the year (Net) include Rs, 76 crore (Previous year Rs, 253 crore) from RCP. Profit / (Loss) of Partnership firm during the year include Loss Rs, 39,13,466 (Previous year Profit Rs, 13 crore) from RCP.Balance as at March 31, 2017 Rs, Nil (Previous year Rs, 76 crore) of RCP.

Loans Given

Loans given during the year includes Rs, 5 crore (Previous year Rs, 23 crore) to RFL, Rs, Nil (Previous year Rs, 27 crore) to RMSPL, Rs, 1,104 crore (Previous year Rs, Nil) to RCASL, Rs, 60 crore (Previous year Rs, 65 crore) to RSL; Rs, 824 crore (Previous year Rs, 2,104 crore) to RCL, Rs, 300 crore (Previous year Rs, Nil) to RCIL, Rs, 155 crore (Previous year Rs, 140 crore) to RBEPL, Rs, 377 crore (Previous year Rs, 325 crore) to RIL. Loan Returned/Adjusted during the year include Rs, 10 crore (Previous year Rs, 18 crore) from RFL, Rs, Nil (Previous year Rs, 27 crore) from RMSPL, Rs, 802 crore (Previous year Rs, Nil) from RCASL, Rs, 60 crore (Previous year Rs, 65 crore) to RSL; Rs, Nil crore (Previous year Rs, 1,999 crore) to RCL, Rs, 569 crore (Previous year Rs, 80 crore) from RBEPL and Rs, 1 crore (Previous year Rs, 325 crore) from RIL. Loans as at March 31, 2017 include Rs, Nil (Previous year Rs, 5 crore) to RFL, Rs, Nil (Previous year Rs, Nil) to RNext [Net of Provision of Rs, 7 crore (Previous year Rs, 7 crore)], Rs, 302 crore (Previous year Rs, Nil) to RCASL, Rs, 376 crore (Previous year Rs, Nil) to RIL, Rs, 824 crore (Previous year Rs, 106 crore) to RCL, Rs, 300 crore (Previous year Rs, Nil) to RCIL, Rs, 155 crore (Previous year Rs, 709 crore) to RBEPL; Rs, Nil (Previous year Rs, 44,64,047) to Shri V. R. Mohan, Rs, Nil (Previous year Rs, 1 crore) to Shri Soumen Ghosh and Rs, Nil (Previous year Rs, 47,74,487) to Smt. Caroline Ghosh. Accrued Interest on loans as at March 31, 2017 includes Rs, 4 crore (Previous year Rs, 77 crore) from RBEPL, Rs, 1 crore (Previous year Rs, Nil) to RIL and Rs, 3 crore (Previous year Rs, Nil) to RCL.

Advances

Advances as at March 31, 2017 includes Rs, 1 crore (Previous year Rs, 93 crore) to RGICL, Rs, Nil (Previous year Rs, 1 crore) to RNLICL, Rs, 2 crore (Previous year Rs, Nil) to RSL, include Rs, Nil (Previous year Rs, 1 crore) to RCL, Rs, Nil [Previous year Rs, Nil (Net of Rs, 75 crore given & refunded)] to RCIL and Rs, 5,42,1 67 (Previous year Rs, 18,06,490) to RARC.

Income

Interest & Finance Income (including Premium on Preference Shares) includes Rs, 1 crore (Previous year Rs, 1 crore) from RSL, Rs, 98,630 (Previous year Rs, 3,63,616) from RFL, Rs, 3 crore (Previous year Rs, Nil) from RCASL, Rs, Nil (Previous year Rs, 1 crore) from RMSPL; Rs, 3 crore (Previous year Rs, 24 crore) from RCL, Rs, 28 crore (Previous year Rs, 91 crore) from RBEPL Rs, Nil (Previous year Rs, 3,29,535) from Shri V. R. Mohan, Rs, Nil (Previous year Rs, 9,96,021) from Shri Soumen Ghosh, Rs, Nil (Previous year Rs, 6,62,387) from Smt. Caroline Ghosh and Rs, Nil (Previous year Rs, 1,62,534) from Shri Vijay Singh Bapna. Rent income include Rs, 9,00,000 (Previous year Rs, 9,00,000) from RCIL. Dividend Income includes Rs, 126 crore (Previous year Rs, 81 crore) from RNLAM, Rs, Nil (Previous year Rs, 46 crore) from RNLICL and Rs, 1 crore (Previous year Rs, 1 crore) from RARC. Reimbursement of Expenditure include Rs, 7 crore (Previous year Rs, 7 crore) from RGICL, Rs, 3 crore (Previous year Rs, 2 crore) from RNLAM, Rs, 2 crore (Previous year Rs, 2 crore) from RSL, Rs, 14,51,114 (Previous year Rs, 8 crore) from RHFL, Rs, 9 crore (Previous year Rs, 10 crore) from RNLICL, Rs, 4,93,380 (Previous year Rs, 11,69,618) from RCIL and Rs, 7,20,996 (Previous year Rs, Nil) from RARC. Management Fees include Rs, 6 crore (Previous year Rs, 6 crore) from RGICL, Rs, 6 crore (Previous year Rs, 6 crore) from RNLAM, Rs, 6 crore (Previous year Rs, 6 crore) from RSL, Rs, 3 crore (Previous year Rs, 3 crore) from RHFL and Rs, 6 crore (Previous year Rs, 6 crore) from RNLICL. Income transferred as per Business Transfer Agreement includes Rs, 1 crore (Previous year Rs, 1 crore) to RHFL. Other operating incomes includes Rs, 5,20,000 (Previous year Rs, 29,63,000) from RARC.

Expenditure

Finance cost includes Rs, 24 crore (Previous year Rs, 23 crore) to RGICL, Rs, 10 crore (Previous year Rs, Nil) to RFL, Rs, 52 crore (Previous year Rs, 54 crore) to RSL, and Rs, Nil (Previous year Rs, 3 crore) to RNLICL. Insurance includes Rs, 3 crore (Previous year Rs, 3 crore) to RGICL and [Rs, 22,78,1 25 (Previous year Rs, 48,17,137) to RNLICL. Rent include Rs, Nil (Previous year Rs, 1 crore) to RCL. Brokerage paid during the year Rs, 1 crore (Previous year Rs, 1 crore) to RSL. Expense transferred as per Business Transfer Agreement include Rs, 1 crore (Previous year Rs, 1 crore) to RHFL. Reimbursement of Expenditure includes Rs, Nil (Previous year Rs, 1 crore) to RGICL and Rs, 1 crore (Previous year Rs, Nil) to RSL. Provision / (Reversal) for diminution in value of investments includes Rs, Nil (Previous year reversal Rs, 69 crore) of RNext, Rs, Nil (Previous year reversal Rs, 8 crore) of RMPMPL and reversal of Rs, 3 crore (Previous year Rs, Nil) of RCFL Rs, 40 crore (Previous year Rs, Nil) of RCL. Investments written off include Rs, Nil (Previous year Rs, 69 crore) of RNext, Rs, Nil (Previous year Rs, 8 crore) of RMPMPL. Valuation Expenses include Rs, Nil (Previous year Rs, 38,57,142 ) paid to RHFL. Employee benefit expenses include Rs, 1 crore (Previous year Rs, 1 crore) to Shri V. R. Mohan, Rs, 8 crore (Previous year Rs, 8 crore) to Shri Soumen Ghosh, Rs, 3 crore (Previous year Rs, 3 crore) to Shri Amit Bapna, Rs, 9,88,038 (Previous year Rs, Nil) to Shri Atul Tandon and Rs, 1 crore (Previous year Rs, Nil) to Shri Jai Anmol Ambani.

Contingent Liability

Guarantees to Banks and Financial Institutions on behalf of third parties include Rs, 50 crore (Previous year Rs, 50 crore) for RBEPL, Rs, 550 crore (Previous year Rs, Nil) for RIL, Rs, 118 crore (Previous year Rs, Nil) to RCL and Rs, 118 crore (Previous year Rs, Nil) to RCIL.

Shares given as collateral

Shares given as collateral include Rs, Nil (Previous year Rs, 29,96,529) to RSL.

Shares given as pledge

Shares given as pledge include Rs, Nil (Previous year Rs, 67 crore) to RSL.

Notes :

i) Figures in bracket indicate previous year figures.

ii) Expenses incurred towards public utilities services such as communication and electricity charges have not been considered for related party transaction.

iii) The above discloses transactions entered during the period of existence of related party relationship. The balances and transactions are not disclosed before existence of related party relationship and after cessation of related party relationship.

iv) In regard to transactions with Reliance Commercial Finance Limited till effective date of demerger Refer note no. 38(iv).

v) Director Sitting Fee of Rs, 2,40,000 (Previous year Rs, 1,60,000) has been paid to Shri Anil D. Ambani, an individual having control.

vi) The Company has provided security amounting to Rs, 707 crore for the Listed Secured Non-Convertible Debentures of its wholly-owned subsidiary viz. Reliance Home Finance Limited by way of first pari passu hypothecation charge on all present and future book debts and business receivables of the Company (except security created / to be created towards securing term loans and cash credit limits). Business receivables includes current assets and investments.

vii) Shri Jai Anmol Ambani was paid sitting fees of Rs, 40,000 for attending the board meeting held on September 13, 2016, prior to his appointment as Executive Director w.e.f September 27, 2016.

7. Leases

The Company has given assets on Operating lease (Refer Note No. 14). Disclosure as per Accounting Standard (AS-19), on "Leases" notified by the Companies (Accounts) Rules 2014:

8 Scheme of Arrangement (Demerger) between the Company and Reliance Commercial Finance Limited

The Board of Directors of the Company at its meeting held on February 25, 201 6 has considered and approved a Scheme of Arrangement (Demerger) between the Company, and its wholly owned subsidiary viz. Reliance Commercial Finance Limited (formerly Reliance Gilts Limited). The Scheme of Arrangement under Sections 391 to 394 of the Companies Act, 1 956 (the ''Scheme'') for demerger of Commercial Finance Business of the Company to its wholly owned subsidiary viz. Reliance Commercial Finance Limited has been approved by the Hon''ble High Court of Judicature at Bombay. The Scheme has become effective on March 24, 2017 upon filing with the Registrar of Companies, Maharashtra at Mumbai with effect from April 1, 2016 i.e. Appointed Date.

Hence, in accordance with the Scheme:-

i. On Scheme becoming effective with effect from Appointed Date, the Company has transferred all the assets aggregating to Rs, 12,473 crore and liabilities aggregating to Rs, 1 2, 473 crore as appearing in the books of Company related to commercial finance business at their respective book value as on Appointed Date. The net assets taken over include:

ii There is no difference between value of assets and liabilities of the Company''s commercial finance business as transferred under Scheme, accordingly there is no capital reserve or goodwill.

iii As per the Scheme approved by the Hon''ble High Court of Judicature at Bombay with effect from the Appointed Date and up to and including the effective date, the Company shall be deemed to have been carrying on all business and activities relating to Commercial Finance Business for and on account of and in trust of Commercial Finance Business. All profits accruing to Commercial Finance Business or losses arising or incurred by the Company in relation to the Commercial Finance Business for the period commencing from the Appointed Date to the Effective Date shall, for all purposes, be treated as the profits or losses, as the case may be, of Commercial Finance Business.

iv During the period, from the Appointed Date to the Effective Date, the Company received the inter division balance amounting to Rs, 2,874 crore (average balance during the year Rs, 829 crore) on which the Company has recieved interest of Rs, 91crore from Reliance Commercial Finance Limited. During this period, the Company has also received reimbursement of expenses amounting to Rs, 2 crore and management fees amounting to Rs, 3 crore.

Accordingly, aforesaid Commercial Finance Business was considered as discontinuing operations during previous year.

9 The Board of Directors of the Company at their meeting held on October 28, 2016 has approved a Scheme of Arrangement (''Scheme'') for demerger of Real Estate Lending Business of the Company into its wholly owned subsidiary viz. Reliance Home Finance Limited (RHFL) with effect from April 1, 2017, the Appointed Date. The Scheme is subject to requisite approvals, including the sanction of National Company Law Tribunal. Upon the scheme getting approved, RHFL shall issue and allot, at par, to all equity shareholders of the Company, 1 (One) fully paid Equity Share of RHFL for every 1 (One) equity share of '' 10 each fully paid up held in the Company. RHFL will list its equity shares on the Stock Exchanges.

10 Core Investment Company (‘CIC'')

(i) On the Scheme of Demerger becoming effective on March 24, 201 7, the Company has positioned itself as a Core Investment Company (''CIC'') and in terms of the Core Investment Companies (Reserve Bank) Directions, 2016 (RBI CIC Directions) would make an application for obtaining Certificate of Registration within 3 months based on the Audited Financial Statements as of March 31, 2017.

The Company was in compliance with the RBI Directions applicable to Systemically Important Non-Banking Financial Company until March 24, 201 7 and has taken necessary measures so as to comply with the prudential norms applicable to CIC and has commenced adherence to those norms e.g. Concentration norms, Leverage ratio, Capital to Risk Assets Ratio (CRAR) etc. as of March 31, 2017. Accordingly, the Company has prepared and presented its financial statements and disclosures for the year ended March 31, 2017 as per RBI Directions applicable to CIC. The above is in line with the Company''s communications with RBI.

a) Housing loans / loans against property and construction finance granted are secured by equitable registered mortgage of property and / or undertaking to create a security and other loans and advances are secured by way of hypothecation and/or pledging of the underlying asset.

b) In case of loans & advances given in para (2) above, Provision for NPA & Doubtful Debts is '' 7 crore (Previous year '' 99 crore) (3) Break up of Leased Assets and stock on hire and other assets counting towards AFC activities

a) Companies in same group means companies under the same management as per section 370(1 B) of the Companies Act, 1956.

b) In case of unquoted investments, in the absence of market value, book value has been considered.

c) Capital contribution in Partnership Firm and unincorporated joint venture have not been considered for the purpose of companies in the same group and other related party:

d) Investments are classified between non-current and current investments (including current portion of long term investments) as required under revised Schedule III, as per Companies Act, 2013.

e) Gross Non Performing Assets and Net Non Performing Assets given above includes loans & advances and bonds & debentures.

(a) All quoted investments have been included in 1 day to 30/31 days (one month) bucket considering its liquidity. All unquoted equity shares / warrants including investment in subsidiaries have been included in ''Over 5 years''. The maturity pattern has been prepared in line with various regulations issued by RBI from time to time, best practices and based upon best estimate of the management with regard to the timing of various cash flows.

(b) The classification of Assets and Liabilities into current and non-current is carried out based on their residual maturity profile as per requirement of Schedule III to the Companies Act, 2013. The above maturity pattern of assets and liabilities has been prepared by the Company after taking into consideration guidelines for assets-liabilities management (ALM) system as per CIC directions issued by RBI, best practices and best estimate of the Assets-Liability Committee / management with regard to the timing of various cash flows, which has been relied upon by the auditors.

(c) Assets does not include Cash and Bank Balances amounting to Rs, 4 211 crore (Previous year Rs, 1 670 crore).

(iii) Business Transfer Agreement

In terms of Business Transfer Agreement (BTA) dated April 26, 2010, further amended on January 31, 2011 with its subsidiary company i.e. Reliance Home Finance Limited the Company hold loan assets of Rs, 3 crore (Previous year Rs, 5 crore) related to Reliance Home Finance Limited in the trust capacity as on March 31, 2017.

Figures in bracket indicate previous year figures.

11. Corporate Social Responsibility Expenditure

As per Section 135 of the Companies Act, 2013 the Company is under obligation to incur Rs, 13 crore (Previous year Rs, 10 crore) and has incurred the same in cash, being 2% of the average net profit during the three immediately preceding financial years, calculated in the manner as stated in the Act towards Corporate Social Responsibility through a non-profit centre engaged in the provision of health care for the purpose other than construction / acquisition of asset.

12. Remittance in foreign currency on account of dividend

The Company has paid dividend in respect of shares held by non residents on repatriation basis. This, inter-alia, includes portfolio investment, where the amount is also credited to Non Resident External Account (NRE A/c). The total amount remittable in this respect is specified below:

13. During the year, the Company had no specified bank notes or no other denomination note as defined in the MCA notification

G.S.R. 308(E) dated March 30, 2017 and there were no transaction during the period from November 8, 2016 to December 30, 2016.

14. During the year ended March 31, 2017, the Company has changed its basis for determining the provision for diminution in value of investments other than temporary on long term quoted investments. As a result of such change, the charge in the statement of profit & loss for provision for diminution in value of investments for the year ended March 31, 2017, is lower by Rs, 33 crore.

15. The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards there are no foreseeable losses on such long term contracts (including derivative contracts) has been made in the books of account.

16. In the opinion of management, all the assets other than fixed assets and noncurrent investments are approximately of the value stated if realized in the ordinary course of business.

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Mar 31, 2017

1.1 Employees Stock Options Plan (ESOP):

(i) a) Pursuant to the shareholder’s resolution date 20 September 2007 the Company had introduced Employee Stock Option Plan I-2007 under which the Company may grant options to its employees from time to time. The grant of options to the employees under the ESOP scheme was on the basis of their performance and other eligibility criteria. The plan had been attended and restated vide shareholder’s resolution stated 3 February 2011.

b) On 21 December 2007, the Company issued 200,000 equity shares at a price Rs. 2,000 per equity share to Reliance Capital Asset Management Employee Benefits Trust (‘The Trust’) pursuant to the above plan.

(ii) a) Pursuant to the shareholder’s resolution dated 3 February 2011, the company introduced Employee Stock Option Plan II – 2011 under which the Company may grant options to its employees from time to time. The grant of options to the employees under the ESOP scheme was on the basis of their performance and other eligibility criteria.

b) On 30 March 2011, the Company issued 50,000 equity shares at a price Rs. 3,009 per equity share to the Trust.

(iii) All above options were planned to be settled in cash or equity at the time of exercise and had maximum period of 7 years from the date of testing. The options existing during the year were as follows:

1.2. Disclosure pursuant to Accounting Standard – 15 (Revised) “ Employee Benefits”:

A. Defined Contribution Plans:

Amount of Rs. 63,746,646 (PY Rs. 56,145,001) is recognised as an expense for provident fund and supers nation fund included in “Employee Benefit Expense” refer note “3.18” of the statement of profit and loss.

B. Defined Benefit Plans:

i. Reconciliation of opening and closing balances of the present Value of the Defined Benefit Obligation:

ii. Changes in the fair value of Plan Assets and the reconciliation thereof.

iii. Amount Recognised in the Balance Sheet including a reconciliation of the present value of the defined obligation in (i) and the fair value of the plan assets in (ii) to the assets and liabilities recognised in the balance sheet.

iv. Amount recognised in the statement of profit & loss are as follows:

1.3. Related Party Disclosure:

A. List of Related Parties and their relationship:

i) Holding Company

Reliance Capital Limited

ii) Subsidiary of Holding Company

Reliance Asset Management (Singapore) pte, Limited

Reliance Asset Management (Mauritius) Limited

Reliance Capital Pension Fund Limited

Reliance ALF Management Company Limited

Reliance Capital Trustee Co, Limited

Reliance General Insurance Company Limited

Reliance Nippon Life Insurance Company Limited (formerly Reliance Life Insurance Company Limited)

Reliance Commercial Finance Limited (formerly Reliance Gilts Limited)

Reliance Money Precious Metals Private Limited

Reliance Home Finance Limited

Reliance Securities Limited

Reliance Commodities Limited

Reliance Financial Limited

Reliance Wealth Management Limited

Reliance Money Solutions Private Limited

Reliance Exchange next Limited

Reliance Spot Exchange Infrastructure Limited

Reliance Capital ALF Trustee Company Private Limited

Quant Capital Private Limited

Quant Broking Private Limited

Quant Securities Private Limited

Quant Investment Services Private Limited

1.4. Corporate social responsibility (CSR)

a) Gross amount required to be spent by the company during the year was Rs.88,859,500 (PY Rs. 76,722,003) as per calculation.

b) Amount spent during the year on.

1.5. Segment Reporting

The Company is in the business of providing asset management services to the fund and portfolio management service to clients. The primary segment is identified as asset management services. As such the Company’s financial statements is largely reflective of the asset management business and there is no separate reportable segment.

Pursuant to Accounting Standard (AS) 17 Segment Reporting, no segment disclosure has been made in these financial statements, as the Company has only one geographical segment and no other separate reportable business segment.

1.6. Dividend remittances in foreign currency:

The Company remits the dividend to all shareholders including non-resident shareholders in Indian Rupees (INR)

1.7. Asset Management Right:

During the previous year, the Company and Reliance Capital Trustee company Limited had jointly entered into a scheme Transfer Agreement with Goldman Sachs Asset Management (India) Private Limited, Board of Trustes of Goldman Sachs Mutual Fund and Goldman Sachs Asset Management, L P so acquire the right to manage and administer the schemes of Goldman Sachs Mutual Fund and the right to assuage the trusteeship of the schemes of Goldman sachs Trustee Company (India) Private Limited and Lakeview of the schemes of Goldman Sachs Mutual Fund respectively. The said transaction has been approved by the relevant regulatory authorities and the Unit holders of the Schemes of Goldman Sachs Mutual Fund in the Current Year. The amount paid along with the incidental expenditure incurred thereon aggregating to Rs. 2,501,379,375 has been treated as Assets Management Right as intangible asset. The Asset management Right will be amortized over a period of 120 months. For the year ended March 31, 2017, an amount of Rs. 101,425,794 has been amortized Balance life of Asset Management Rights is 115 Months.

1.8. International Subsidiaries:

During the year the UK subsidiary of the Company has been struck off by the Companies House, Register of Companies London, as per the application made by the Company in previous year. The company has written off the investment cost entirely for non recoverability which was fully provided in the previous year.

1.9. The Company has developed a system of maintenance of information and documents as required by the transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. Management is of the opinion that all relevant transactions are at arm’s length so that the aforesaid legislation will not have any impact on the financial statement, particularly on the amount of tax expense and that of provision for taxation.

1.10. Previous year’s figures have been regrouped / reclassified, wherever required.

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Mar 31, 2017

1.1 Employees Stock Options Plan (ESOP):

(i) a) Pursuant to the shareholder’s resolution date 20 September 2007 the Company had introduced Employee Stock Option Plan I-2007 under which the Company may grant options to its employees from time to time. The grant of options to the employees under the ESOP scheme was on the basis of their performance and other eligibility criteria. The plan had been attended and restated vide shareholder’s resolution stated 3 February 2011.

b) On 21 December 2007, the Company issued 200,000 equity shares at a price Rs. 2,000 per equity share to Reliance Capital Asset Management Employee Benefits Trust (‘The Trust’) pursuant to the above plan.

(ii) a) Pursuant to the shareholder’s resolution dated 3 February 2011, the company introduced Employee Stock Option Plan II – 2011 under which the Company may grant options to its employees from time to time. The grant of options to the employees under the ESOP scheme was on the basis of their performance and other eligibility criteria.

b) On 30 March 2011, the Company issued 50,000 equity shares at a price Rs. 3,009 per equity share to the Trust.

(iii) All above options were planned to be settled in cash or equity at the time of exercise and had maximum period of 7 years from the date of testing. The options existing during the year were as follows:

1.2. Disclosure pursuant to Accounting Standard – 15 (Revised) “ Employee Benefits”:

A. Defined Contribution Plans:

Amount of Rs. 63,746,646 (PY Rs. 56,145,001) is recognised as an expense for provident fund and supers nation fund included in “Employee Benefit Expense” refer note “3.18” of the statement of profit and loss.

B. Defined Benefit Plans:

i. Reconciliation of opening and closing balances of the present Value of the Defined Benefit Obligation:

ii. Changes in the fair value of Plan Assets and the reconciliation thereof.

iii. Amount Recognised in the Balance Sheet including a reconciliation of the present value of the defined obligation in (i) and the fair value of the plan assets in (ii) to the assets and liabilities recognised in the balance sheet.

iv. Amount recognised in the statement of profit & loss are as follows:

1.3. Related Party Disclosure:

A. List of Related Parties and their relationship:

i) Holding Company

Reliance Capital Limited

ii) Subsidiary of Holding Company

Reliance Asset Management (Singapore) pte, Limited

Reliance Asset Management (Mauritius) Limited

Reliance Capital Pension Fund Limited

Reliance ALF Management Company Limited

Reliance Capital Trustee Co, Limited

Reliance General Insurance Company Limited

Reliance Nippon Life Insurance Company Limited (formerly Reliance Life Insurance Company Limited)

Reliance Commercial Finance Limited (formerly Reliance Gilts Limited)

Reliance Money Precious Metals Private Limited

Reliance Home Finance Limited

Reliance Securities Limited

Reliance Commodities Limited

Reliance Financial Limited

Reliance Wealth Management Limited

Reliance Money Solutions Private Limited

Reliance Exchange next Limited

Reliance Spot Exchange Infrastructure Limited

Reliance Capital ALF Trustee Company Private Limited

Quant Capital Private Limited

Quant Broking Private Limited

Quant Securities Private Limited

Quant Investment Services Private Limited

1.4. Corporate social responsibility (CSR)

a) Gross amount required to be spent by the company during the year was Rs.88,859,500 (PY Rs. 76,722,003) as per calculation.

b) Amount spent during the year on.

1.5. Segment Reporting

The Company is in the business of providing asset management services to the fund and portfolio management service to clients. The primary segment is identified as asset management services. As such the Company’s financial statements is largely reflective of the asset management business and there is no separate reportable segment.

Pursuant to Accounting Standard (AS) 17 Segment Reporting, no segment disclosure has been made in these financial statements, as the Company has only one geographical segment and no other separate reportable business segment.

1.6. Dividend remittances in foreign currency:

The Company remits the dividend to all shareholders including non-resident shareholders in Indian Rupees (INR)

1.7. Asset Management Right:

During the previous year, the Company and Reliance Capital Trustee company Limited had jointly entered into a scheme Transfer Agreement with Goldman Sachs Asset Management (India) Private Limited, Board of Trustes of Goldman Sachs Mutual Fund and Goldman Sachs Asset Management, L P so acquire the right to manage and administer the schemes of Goldman Sachs Mutual Fund and the right to assuage the trusteeship of the schemes of Goldman sachs Trustee Company (India) Private Limited and Lakeview of the schemes of Goldman Sachs Mutual Fund respectively. The said transaction has been approved by the relevant regulatory authorities and the Unit holders of the Schemes of Goldman Sachs Mutual Fund in the Current Year. The amount paid along with the incidental expenditure incurred thereon aggregating to Rs. 2,501,379,375 has been treated as Assets Management Right as intangible asset. The Asset management Right will be amortized over a period of 120 months. For the year ended March 31, 2017, an amount of Rs. 101,425,794 has been amortized Balance life of Asset Management Rights is 115 Months.

1.8. International Subsidiaries:

During the year the UK subsidiary of the Company has been struck off by the Companies House, Register of Companies London, as per the application made by the Company in previous year. The company has written off the investment cost entirely for non recoverability which was fully provided in the previous year.

1.9. The Company has developed a system of maintenance of information and documents as required by the transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. Management is of the opinion that all relevant transactions are at arm’s length so that the aforesaid legislation will not have any impact on the financial statement, particularly on the amount of tax expense and that of provision for taxation.

1.10. Previous year’s figures have been regrouped / reclassified, wherever required.

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Mar 31, 2017

1.1 Employees Stock Options Plan (ESOP):

(i) a) Pursuant to the shareholder’s resolution date 20 September 2007 the Company had introduced Employee Stock Option Plan I-2007 under which the Company may grant options to its employees from time to time. The grant of options to the employees under the ESOP scheme was on the basis of their performance and other eligibility criteria. The plan had been attended and restated vide shareholder’s resolution stated 3 February 2011.

b) On 21 December 2007, the Company issued 200,000 equity shares at a price Rs. 2,000 per equity share to Reliance Capital Asset Management Employee Benefits Trust (‘The Trust’) pursuant to the above plan.

(ii) a) Pursuant to the shareholder’s resolution dated 3 February 2011, the company introduced Employee Stock Option Plan II – 2011 under which the Company may grant options to its employees from time to time. The grant of options to the employees under the ESOP scheme was on the basis of their performance and other eligibility criteria.

b) On 30 March 2011, the Company issued 50,000 equity shares at a price Rs. 3,009 per equity share to the Trust.

(iii) All above options were planned to be settled in cash or equity at the time of exercise and had maximum period of 7 years from the date of testing. The options existing during the year were as follows:

1.2. Disclosure pursuant to Accounting Standard – 15 (Revised) “ Employee Benefits”:

A. Defined Contribution Plans:

Amount of Rs. 63,746,646 (PY Rs. 56,145,001) is recognised as an expense for provident fund and supers nation fund included in “Employee Benefit Expense” refer note “3.18” of the statement of profit and loss.

B. Defined Benefit Plans:

i. Reconciliation of opening and closing balances of the present Value of the Defined Benefit Obligation:

ii. Changes in the fair value of Plan Assets and the reconciliation thereof.

iii. Amount Recognised in the Balance Sheet including a reconciliation of the present value of the defined obligation in (i) and the fair value of the plan assets in (ii) to the assets and liabilities recognised in the balance sheet.

iv. Amount recognised in the statement of profit & loss are as follows:

1.3. Related Party Disclosure:

A. List of Related Parties and their relationship:

i) Holding Company

Reliance Capital Limited

ii) Subsidiary of Holding Company

Reliance Asset Management (Singapore) pte, Limited

Reliance Asset Management (Mauritius) Limited

Reliance Capital Pension Fund Limited

Reliance ALF Management Company Limited

Reliance Capital Trustee Co, Limited

Reliance General Insurance Company Limited

Reliance Nippon Life Insurance Company Limited (formerly Reliance Life Insurance Company Limited)

Reliance Commercial Finance Limited (formerly Reliance Gilts Limited)

Reliance Money Precious Metals Private Limited

Reliance Home Finance Limited

Reliance Securities Limited

Reliance Commodities Limited

Reliance Financial Limited

Reliance Wealth Management Limited

Reliance Money Solutions Private Limited

Reliance Exchange next Limited

Reliance Spot Exchange Infrastructure Limited

Reliance Capital ALF Trustee Company Private Limited

Quant Capital Private Limited

Quant Broking Private Limited

Quant Securities Private Limited

Quant Investment Services Private Limited

1.4. Corporate social responsibility (CSR)

a) Gross amount required to be spent by the company during the year was Rs.88,859,500 (PY Rs. 76,722,003) as per calculation.

b) Amount spent during the year on.

1.5. Segment Reporting

The Company is in the business of providing asset management services to the fund and portfolio management service to clients. The primary segment is identified as asset management services. As such the Company’s financial statements is largely reflective of the asset management business and there is no separate reportable segment.

Pursuant to Accounting Standard (AS) 17 Segment Reporting, no segment disclosure has been made in these financial statements, as the Company has only one geographical segment and no other separate reportable business segment.

1.6. Dividend remittances in foreign currency:

The Company remits the dividend to all shareholders including non-resident shareholders in Indian Rupees (INR)

1.7. Asset Management Right:

During the previous year, the Company and Reliance Capital Trustee company Limited had jointly entered into a scheme Transfer Agreement with Goldman Sachs Asset Management (India) Private Limited, Board of Trustes of Goldman Sachs Mutual Fund and Goldman Sachs Asset Management, L P so acquire the right to manage and administer the schemes of Goldman Sachs Mutual Fund and the right to assuage the trusteeship of the schemes of Goldman sachs Trustee Company (India) Private Limited and Lakeview of the schemes of Goldman Sachs Mutual Fund respectively. The said transaction has been approved by the relevant regulatory authorities and the Unit holders of the Schemes of Goldman Sachs Mutual Fund in the Current Year. The amount paid along with the incidental expenditure incurred thereon aggregating to Rs. 2,501,379,375 has been treated as Assets Management Right as intangible asset. The Asset management Right will be amortized over a period of 120 months. For the year ended March 31, 2017, an amount of Rs. 101,425,794 has been amortized Balance life of Asset Management Rights is 115 Months.

1.8. International Subsidiaries:

During the year the UK subsidiary of the Company has been struck off by the Companies House, Register of Companies London, as per the application made by the Company in previous year. The company has written off the investment cost entirely for non recoverability which was fully provided in the previous year.

1.9. The Company has developed a system of maintenance of information and documents as required by the transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. Management is of the opinion that all relevant transactions are at arm’s length so that the aforesaid legislation will not have any impact on the financial statement, particularly on the amount of tax expense and that of provision for taxation.

1.10. Previous year’s figures have been regrouped / reclassified, wherever required.

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Mar 31, 2016

1. Security clause / maturity profiles in respect to Secured Loans from banks / debentures

(i) Non convertible debentures (NCDs) are redeemable at par, in one or more installments, on various dates:

(a) NCDs amounting to Rs, 4,378 crore (Previous year Rs, 4,686 crore) are secured by way of first pari passu legal mortgage and charge over the premises situated at Avdesh House, near Pritam Nagar, Ellis bridge, Ahmadabad and additional first pari passu charge by way of hypothecation on present and future book debts / business receivables of the Company, Business receivables includes Fixed Asset, Current Assets, Investments and any other assets, against security not exceeding Rs, 4,628 crore (Previous year Rs, 4,935 crore).

(b) NCDs amounting to Rs, 4,992 crore (Previous year Rs, 5,184 crore) are secured by way of first pari passu legal mortgage and charge over the premises situated at Avdesh House, near Pritam Nagar, Ellis bridge, Ahmadabad and additional first pari passu charge by way of hypothecation on present and future book debts / business receivables of the Company (except security towards securing Outstanding Term Loan and Cash Credit Limits). Business receivables includes Current Assets and Investments, against security not exceeding Rs, 5,317 crore (Previous year Rs, 5,509 crore).

(c) Unsecured NCDs amounting to Rs, 1,423 crore (Previous year Rs, 1,423 crore) are in respect to Tier II subordinate debts.

2. Tax on Proposed Dividend

In view of Section 115 - O of the Income Tax Act, 1961, the Company has reduced its dividend tax liabilities to the extent dividend received / receivable from its subsidiary company viz. Reliance Capital Asset Management Limited:

3. Employees Stock Option Plans

a) The Company operated two Employee Stock Option Plans; ESOS Plan A and ESOS Plan B introduced in the financial year 2009-10. All options granted under the ESOS Plan A and ESOS Plan B have been surrendered and lapsed. The Company managed the ESOS Plan A and ESOS Plan B through a Trust. Advance of Rs, 59 crore (net of written off Rs, 64 crore) Previous Year Rs, 62 crore (net of written off Rs, 64 crore) has been granted to Trust. Out of the said advance, Trust has purchased

16 00 000 equity shares for the above purpose.

b) The Company introduced ESOS 2015 which covers eligible employees of the Company and its subsidiaries. The vesting of the options is from expiry of one year till five years as per Plan. Each Option entitles the holder thereof to apply for and be allotted/transferred one Equity Share of the Company upon payment of the exercise price during the exercise period.

b) Defined benefit plans

The following tables summaries the components of the net employee benefit expenses recognized in the Statement of Profit and Loss, the fund status and amount recognized in the balance sheet for the gratuity benefit plan and leave encashment plan.

c) Other employee benefits

Phantom Stock Option Scheme:

As a long term incentive plan to employees, the Company has initiated Phantom Stock Option Plan on October 15, 2015 which are cash settlement rights where the employees are entitled to get cash compensation based on a agreed formulae linked to market value of subsidiary company shares upon exercise of phantom stock options over notional or hypothetical shares,

Liability towards the scheme is accounted for on the basis of an independent actuarial valuation done at the year end. The valuation of the shares is done considering the Project Unit Credit Method and the progression of share price up to the exercise of the option. Fair Value of Phantom Stock Options was estimated on the date of grant on the assumptions of Discount Rate of 7.72% and Expected Life of 5 years.

Vested Phantom Options can be exercised on continuation of employment any time up to 3 years from the date of last vesting and upon cessation of employment as per the terms of the Scheme. Settlement of Phantom Option is done in cash within 90 days from the date of exercise. For the current year the Company has created provision of Rs, 1 crore.

Notes:

i) The above figures are shown in rupees in crore with two decimals to be more representative.

ii) The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

iii) General Descriptions of significant defined plans:

a) Gratuity plan

Gratuity is payable to all eligible employees of the Company on superannuation, death and permanent disablement, in terms of the provisions of the Payment of Gratuity Act, 1 972 or as per the Company''s Scheme whichever is more beneficial.

b) Leave plan

Encashment of leave can be availed by the employee for balance in the earned account as on January 1, 2009. All carry forward earned leaves with a maximum limit of 10 Days, are available for a ailment but not for encashment.

4. Segment reporting

As per paragraph 4 of Accounting Standard (AS-17), on "Segment Reporting" notified by the Companies (Accounts) Rules, 2014, where a single financial report contains both consolidated financial statements and the separate financial statements of the holding company, segment reporting needs to be presented only on the basis of consolidated financial statements. In view of this, segment information has been presented at Note No. 44 of the consolidated financial statements.

5. Related party disclosures

A. List of Related Parties and their relationship:

i) Major investing party

Reliance Inceptum Private Limited

ii) Individual Promoter

Shri Anil D. Ambani, the person having control during the year.

iii) Subsidiaries

1 Reliance Capital Asset Management Limited 15 Reliance Securities Limited

2 Reliance Asset Management (Mauritius) Limited 16 Reliance Commodities Limited

3 Reliance Asset Management (Singapore) Pte. Limited 17 Reliance Financial Limited

4 Reliance Capital Asset Management (UK) Limited 18 Reliance Money Express Limited (formerly Reliance Capital Asset Management (UK) Plc)

5 Reliance Capital Pension Fund Limited 19 Reliance Money Precious Metals Private Limited

6 Reliance AIF Management Company Limited 20 Reliance Money Solutions Private Limited

7 Reliance Capital Trustee Co. Limited 21 Reliance Wealth Management Limited

8 Reliance General Insurance Company Limited 22 Quant Capital Private Limited

9 Reliance Life Insurance Company Limited 23 Quant Capital Finance and Investments Private (w.e.f. March 30, 201 6) Limited

10 Reliance Gilts Limited 24 Quant Broking Private Limited

11 Reliance Home Finance Limited 25 Quant Commodity Broking Private Limited

12 Reliance Exchange next Limited 26 Quant Investment Services Private Limited

13 Reliance Spot Exchange Infrastructure Limited 27 Quant Securities Private Limited

14 Reliance Capital AIF Trustee Company Private Limited

iv) Partnership firm

Reliance Capital Partners

v) Associates

1 Reliance Life Insurance Company Limited 3 Indian Commodity Exchange Limited (ceased w.e.f. March 30, 201 6)

2 Reliance Asset Reconstruction Company Limited 4 Ammonite Holdings Limited

vi) Key Managerial Personnel (KMP) and KMP Relatives

1 Shri Soumen Ghosh - Executive Director & Group CEO

2 Shri Amit Bapna - Chief Financial Officer

3 Shri V. R. Mohan - President & Company Secretary

4 Smt. Caroline Ghosh - KMP Relative

5 Shri Vijay Singh Bapna - KMP Relative

B. Other related parties with whom transactions have taken place during the year

Enterprise over which individual described in clause A (ii) above has control or significant influence.

1 Reliance Power Limited 6 Reliance Infocomm Infrastructure Limited

2 Reliance Communications Limited 7 Reliance Infratel Limited

3 Zapak Mobile Games Private Limited 8 Reliance IDC Limited

4 Reliance Big Entertainment Private Limited 9 Reliance Webstore Limited

5 Reliance Communications Infrastructure Limited 10 Reliance Transport & Travels Private Limited

(ceased w.e.f. November 28, 2015)

Smt. Caroline Ghosh loan Rs, 47 74 487 (Previous year Rs, 1 crore) and interest income Rs, 6 62 387 (Previous year Rs, 6 90 661)

Shri Vijay Singh Bapna interest income Rs, 1 62 534 (Previous year Rs, 5 40 423)

Notes :

i) Figures in bracket indicate previous year figures.

ii) Expenses incurred towards public utilities services such as communication and electricity charges have not been considered for related party transaction.

iii) The above discloses transactions entered during the period of existence of related party relationship. The balances and transactions are not disclosed before existence of related party relationship and after cessation of related party relationship.

iv) Director Sitting Fees of Rs, 1 60 000 (Previous year Rs, 2 60 000) has been paid to Shri Anil D. Ambani, an individual having control.

v) In accordance with Para 7 of Accounting Standard (AS-23) on Accounting for Investments in Associates in Consolidated Financial statement as per the Companies (Accounts) Rules, 2014, the Company''s stake in Sula Vineyards Private Limited though in excess of 20% of their shareholdings have not been accounted for as associates in the preparation of consolidated financial statement as the Company does not have any "Significant Influence" on these companies, as defined by Accounting Standard (AS-18) on Related Party Disclosures as per the Companies (Accounts) Rules, 2014 and hence the transaction with these parties have not been considered for Related Party Disclosures.

6. Discontinuing operations

The Board of Directors of the Company at its Meeting held on February 25, 2016 has considered and approved a Scheme of Arrangement (Demerger) between the Company, and its wholly owned subsidiary Reliance Gilts Limited. As per the Scheme the Commercial Finance Business of the Company would be demerged and transferred to Reliance Gilts Limited. The Appointed Date in respect of the Scheme is April 1, 2016. The Scheme is subject to requisite approvals, including sanction of the Hon''ble High Court of Judicature at Bombay. Accordingly, aforesaid Commercial Finance Division has been considered as discontinuing operations. Post Demerger the Company would be applying to the Reserve Bank of India for registering itself as a Core Investment Company.

a) Housing loans / loans against property and construction finance granted are secured by equitable registered mortgage of property and / or undertaking to create a security and other loans and advances are secured by way of hypothecation and/or pledging of the underlying asset.

b) In case of loans & advances given in para (2) above, Provision for NPA & Doubtful Debts is Rs, 99 crore (Previous year Rs, 103 crore)

a) Companies in same group means companies under the same management as per Section 370(1 B) of the Companies Act, 1956.

b) In case of unquoted investments, in the absence of market value book value has been considered.

c) Capital contribution in Partnership Firm and unincorporated Joint venture have not been considered for the purpose of companies in the same group and other related party.

d) Investments are classified between non-current and current investments (including current portion of long term investments) as required under Schedule III of Companies Act, 2013.

e) Gross Non-Performing Assets and Net Non Performing Assets given above includes loans & advances and bonds & debentures.

(e) The Company invests in Pass Through Certificates (PTCs) and purchases loans through the direct assignment route. In some of the securitization transactions, the Company also has invested in the assets securitized by it, which, however, is restricted to the maximum limit prescribed by RBI from time to time.

(f) During the financial year 2015, Company has entered into two agreements for assignment of receivables. As per deeds of assignment, the Company has agreed to purchase the receivables and other rights for a consideration of Rs, 100 crore. The said receivables are included in loans givens.

(g) Business Transfer Agreement

In terms of Business Transfer Agreement (BTA) dated April 26, 2010 further amended on January 31, 2011 with its subsidiary company i.e. Reliance Home Finance Limited the Company hold loan assets of Rs, 5 crore (Previous year Rs, 5 crore) related to Reliance Home Finance Limited in the trust capacity as on March 31, 2016.

Notes:

(a) All quoted investments have been included in 1 day to 30/31 days (one month) bucket considering its liquidity. All unquoted equity shares / warrants including investment in subsidiaries have been included in Over 5 years''. The maturity pattern has been prepared in line with various regulations issued by RBI from time to time, best practices and based upon best estimate of the management with regard to the timing of various cash flows.

(b) The classification of Assets and Liabilities into current and non-current is carried out based on their residual maturity profile as per requirement of Schedule III to the Companies Act, 2013. The above maturity pattern of assets and liabilities has been prepared by the Company after taking into consideration guidelines for assets-liabilities management (ALM) system in non-banking financial companies issued by RBI, best practices and best estimate of the Assets-Liability Committee / management with regard to the timing of various cash flows, which has been relied upon by the auditors.

i) For the exposure to real estate only loans secured by way of mortgage/hypothecation of housing properties, commercial properties and land are considered.

ii) In computing the above information, certain estimates, assumptions and adjustments have been made by the Management which have been relied upon by the auditors.

iii) For the exposure to capital market Company has followed capital market exposure as defined under RBI regulations.

XVI. The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards there are no foreseeable losses on such long term contracts (including derivative contracts) has been made in the books of accounts.

XVIII. Details of financing of parent company products

There is no parent company, hence no products are financed.

XIX. Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by the NBFC

There are no Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by the Company,

Moreover as per prudential norms ceiling on the investment in shares of another company shall not be applicable to a non-banking financial company in respect of investment in the equity capital of an insurance company up to the extent specifically permitted, in writing, by the Reserve Bank of India. The Company has made an application to RBI for its investments in insurance companies.

XX. Unsecured Advances

There are no advances against intangible assets.

XXI. Policy on dealing with Related Party Transactions

The policy on Related Party Transactions as approved by the Board is uploaded on the Company''s website at the link http:// www.reliancecapital.co.in/pdf/Policy_for_Related_Party_Transaction.pdf.

XXIII. Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)

There are no overseas assets other than those disclosed in investments.

XXIV. Off-balance Sheet SPVs sponsored (which are required to be consolidated as per accounting norms)

There are no off-balance Sheet SPVs sponsored by the Company which are required to be consolidated as per accounting

7. Corporate Social Responsibility Expenditure

As per Section 135 of the Companies Act, 2013 the Company is under obligation to incur '' 10 crore (Previous year '' 12 crore) and has incurred the same in cash, being 2% of the average net profit during the three immediately preceding financial years, calculated in the manner as stated in the Act towards Corporate Social Responsibility through a non-profit centre engaged in the provision of health care for the purpose other than construction / acquisition of asset.

8. In the opinion of management, all the assets other than fixed assets and noncurrent investments are approximately of the value stated if realized in the ordinary course of business.

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Mar 31, 2015

1. Background

Reliance Capital Limited (''the Company'') is registered as a Non-Banking Financial Company (''NBFC'') as defined under Section 45-IA of the Reserve Bank of India Act, 1934. The Company is principally engaged in lending and investing activities.

2. During the year, Reliance Land Private Limited and Reliance Share and Stock Brokers Private Limited ceased to be associate of the company.

3. The Company has been allotted Warrants without paying any consideration at the time of allotment.

4. The Company has entered into a joint venture with KGS Developers Limited in respect of real estate project development. The Company has invested Rs. 85 crore and is entitled to share the Profit / Loss equally. However assets, liabilities, revenue and expenses related to the project are not included in the financial statements of the Company as it does not meet the definition criteria of a Joint Venture under AS 27 ''''Financial Reporting of Interests in Joint Ventures ".

5. Investments includes Rs. 61 crore (Previous year Rs. 9 crore) of equity shares given as collateral/pledge towards margin with brokers.

6. Investments in 22,90,393 equity shares of TV18 Broadcast Limited amounting to Rs. 5 crore (Previous year Rs. Nil) and 33197 equity shares of Jindal Saw Limited amounting to Rs. 29,96,693 (Previous Year Rs. Nil) are given to comply with the margin requirements thus these securities are not held in the name of Company.

7. During the year, Nippon Life Insurance Company (NLIC), has acquired 9% equity shareholding in Reliance Capital Asset Management Limited (subsidiary of the Company).

8 Security clause / maturity profiles in respect to Secured Loans from banks / debentures

(i) Non convertible debentures (NCDs) are redeemable at par, in one or more instalments, on various dates:

(a) NCDs amounting to Rs. 4,686 crore (Previous year Rs. 5,447 crore) are secured by way of first pari passu legal mortgage and charge over the premises situated at Avdesh House, near Pritam Nagar, Ellisbridge, Ahmedabad and additional first pari passu charge by way of hypothecation on present and future book debts / business receivables of the Company. Business receivables includes Fixed Asset, Current Assets, Investments and any other assets, against security not exceeding Rs. 4,935 crore (Previous year Rs. 5,697 crore).

(b) NCDs amounting to Rs. 5,184 crore (Previous year Rs. 2,453 crore) are secured by way of first pari passu legal mortgage and charge over the premises situated at Avdesh House, near Pritam Nagar, Ellisbridge, Ahmedabad and additional first pari passu charge by way of hypothecation on present and future book debts / business receivables of the Company (except security towards securing Outstanding Term Loan and Cash Credit Limits). Business receivables includes Current Assets and Investments, against security not exceeding Rs. 5,509 crore (Previous year Rs. 2,778 crore).

(c) Unsecured NCDs amounting to Rs. 1,423 crore(Previous year Rs. 1,173 crore) are in respect to Tier II subordinate debts.

(d) Maturity profile and Rate of interest of Long Term NCDs are as set out below:

9 Tax on Proposed Dividend

In view of Section 115- O of the Income Ta x Act, 1961, the Company has reduced its dividend tax liabilities to the extent dividend received / receivable from its subsidiary company. During the year Company has received the following dividend from Reliance Capital Asset Management Limited (RCAM) :

10 Employees Stock Option Plans

The Company operates two Employee Stock Option Plans; ESOS Plan A and ESOS Plan B introduced in the financial year 2009-10, which cover eligible employees of the Company, the Holding Company and its subsidiaries. The vesting of the options is from expiry of one year and ranges till four to five years as per Plan under the respective ESOS(s). Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company of Rs. 10 each upon payment of the exercise price during the exercise period. The Company implements and manages the ESOS plan through a trust. Advance of Rs. 62 crore (net of diminution Rs. 64 crore) [Previous year Rs. 64 crore (net of diminution Rs. 64 crore)] has been granted to Trust. Out of the said advance Trust has purchased 16,00,000 (Previous year 16,00,000) Equity Shares for the above purpose. Details of scheme of Employee Stock Option Plans are as under :

-Notes:

i) The above figures are shown in rupees in crore with two decimals to be more representative.

ii) The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

iii) General Descriptions of significant defined plans:

a) Gratuity plan

Gratuity is payable to all eligible employees of the Company on superannuation, death and permanent disablement, in terms of the provisions of the Payment of Gratuity Act 1972 or as per the Company''s Scheme whichever is more beneficial.

b) Leave plan

Encashment of leave can be availed by the employee for balance in the earned account as on January 1, 2009. All carry forward earned leaves with a maximum limit of 10 Days, are available for a ailment but not for encashment.

11 Segment reporting

As per paragraph 4 of Accounting Standard (AS-17), on "Segment Reporting " notified by the Companies (Accounting Standards) Rules 2006, where a single financial report contains both consolidated financial statements and the separate financial statements of the holding company, segment reporting needs to be presented only on the basis of consolidated financial statements. In view of this, segment information has been presented at Note No. 40 of the consolidated financial statements..

12 Related party disclosures

A. List of Related Parties and their relationship:

i) Holding Company Reliance Innovators Private Limited (ceased w.e.f. March 27, 2015)

ii) Subsidiary of Holding Company*

Reliance Inceptum Private Limited (Formerly AAA Enterprises Private Limited)

*ceased w.e.f. March 27, 2015, thereafter Major Investing Party.

-Notes :

i) Figures in bracket indicate previous year figures.

ii) Expenses incurred towards public utilities services such as telephone and electricity charges have not been considered for related party transaction.

iii) The above discloses transactions entered during the period of existence of related party relationship. The balances and transactions are not disclosed before existence of related party relationship and after cessation of related party relationship.

iv) In addition to the above Director Sitting Fees of Rs. 2 60 000 (Previous year Rs. 80 000) has been paid to Shri Anil D. Ambani, an individual having control.

v) The Company has, during the previous year, sold part of its holding in unlisted equity shares of: Reliance Land Private Limited representing 45% stake (No. of shares 45 00 000, carrying value Rs. 4 crore) and Reliance Share & Stock Brokers Private Limited representing 45% stake (No. of shares 45 00 000, carrying value Rs. 4 crore).

Considering that these shares were sold to Company''s wholly owned subsidiaries and do not impact the economic interests of the Company''s shareholders, the consideration for the sale were fixed at a price equal to or slightly above their cost and not at their fair values (not ascertained) which are significantly higher.

13 Leases

The Company has given assets on Operating lease (refer Note No. 14). Disclosure as per Accounting Standard (AS-19), on "Leases " notified by the Companies (Accounting Standards) Rules 2006:

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Mar 31, 2014

1. Background

Reliance Capital Limited (''the Company'') is registered as a Non-Banking Financial Company (''NBFC'') as Defined under Section 45-IA of the Reserve Bank of India Act, 1934. The Company is principally engaged in lending and investing activities.

2. Investments includes Rs. 9 crore (Previous year Rs. 63 crore) of equity shares given as collateral towards margin with brokers.

3. The Company has been allotted Warrants without paying any consideration at the time of allotment.

4. The Company has entered into a joint venture with KGS Developers Limited in respect of real estate project development. The Company has invested Rs. 85 crore and is entitled to share the profit / Loss equally. However assets, liabilities, revenue and expenses related to the project are not included in the financial statements of the Company as it does not meet the defnition criteria of a Joint Venture under AS 27 ''''Financial Reporting of Interests in Joint Ventures".

5. Investment in 38,85,24,405 (Previous year 38,85,24,405) equity shares of Reliance Life Insurance Company Limited, 9,000 (Previous year 9,000) equity shares of Reliance CWT India Limited and 30,000 (Previous year 30,000) equity shares of Viscount Management Services Limited are carried at fair value i.e. at amount transferred under the scheme of amalgamation..

6. During the year the Company has alloted 794,478 equity shares and 236,917 preference shares of Grover Vineyards Limited as per Scheme of Amalgamation of Grover Vineyards Limited and Vallee De Vine Private Limited. After the Amalgamation, Grover Vineyards Limited has change its name to Grover Zampa Vineyards Limited.

7. During the year Reliance Venture Asset Management Private Limited, Reliance Capital (Singapore) Pte. Limited and Reliance Financial Advisory Services Limited (Formerly Reliance Investment Banking Services Limited) ceased to be subsidiaries of the Company.

8. Reliance Broadcast Network Limited got delisted from stock exchanges during the year, hence disclosed under the unquoted investments.

9. Ventura Textiles Limited has been suspended from stock exchanges during the year.

10 Security clause / maturity profles in respect to Secured Loans from banks / debentures

(i) Non convertible debentures (NCDs) are redeemable at par, in one or more installments, on various dates:

(a) NCDs amounting to Rs. 5,447 crore (Previous year Rs. 2,922 crore) are secured by way of first pari passu legal mortgage and charge over the premises situated at Avdesh House, near Pritam Nagar, Ellisbridge, Ahmedabad and additional first pari passu charge by way of hypothecation on present and future book debts / business receivables of the Company. Business receivables includes Fixed Asset, Current Assets, Investments and any other assets, against security not exceeding Rs. 5,697 crore (Previous year Rs. 2,480 crore).

(b) NCDs amounting to Rs. 2,453 crore (Previous year Rs. 3,494 crore) are secured by way of first pari passu legal mortgage and charge over the premises situated at Avdesh House, near Pritam Nagar, Ellisbridge, Ahmedabad and additional first pari passu charge by way of hypothecation on present and future book debts / business receivables of the Company (except security towards securing Outstanding Term Loan and Cash Credit Limits). Business receivables includes Current Assets and Investments, against security not exceeding Rs. 2,778 crore (Previous year Rs. 3,760 crore).

(c) The Company is in the process of creating security on the remaining NCDs amounting to Rs. Nil (Previous year Rs. 567 crore).

11 Amalgamation

Scheme of Amalgamation between Company, Reliance Equities International Private Limited (REIPL) and Emerging Money Mall Limited (EMML)

The Scheme of Amalgamation ("the Scheme") under Sections 391 to 394 of the Companies Act, 1956 between Company, REIPL and EMML has been sanctioned by the Hon''ble High Court of Judicature at Bombay vide Order dated March 22, 2013. The scheme became effective on April 17, 2013 on fling with the Registrar of Companies (RoC) with effect from March 31, 2013 i.e. Appointed Date.

REIPL was incorporated with the main object of providing broking services to institutional investors and EMML was incorporated with the main object of e-commerce. The amalgamation has been accounted for under the "Purchase method" as prescribed by Accounting Standard (AS-14) on "Accounting for Amalgamation" notifed under the Companies (Accounting Standards) Rules, 2006. The Company has carried out the accounting treatment prescribed in the Scheme as sanctioned by the Hon''ble High Court of Judicature at Bombay. The required disclosures as per paragraph 42 of Accounting Standard (AS-14) ''Accounting for Amalgamations'' as prescribed under the Companies (Accounting Standards) Rules, 2006 has been provided. Hence, in accordance with the Scheme:- (i) As entire issued, subscribed and paid up share capital of REIPL and EMML was held by the Company, no shares of the Company have been allotted in lieu or exchange of its holding in REIPL and EMML. Consequent to the Scheme the share capital of REIPL and EMML stands cancelled.

(iii) All Inter-company balances including liabilities on account of loans and advances amounting to Rs. 186 crore on Appointed Date also stand cancelled. Consequent upon the above Scheme of Amalgamation, there has been a reduction of Rs. 69 crore in the value of investments in Viscount Management Services Limited which has been debited to Capital Reserve.

(iv) Difference aggregating to Rs. 846 crore after recording both above said items being the excess arising on transfer under the Scheme of assets and liabilities has been credited to Capital Reserve. The reserve created pursuant to the Scheme shall for all regulatory and accounting purposes be considered to be part of the owned funds / net worth of the Company.

(v) In accordance with the provisions of the Scheme of Amalgamation of Reliance Commercial Finance Private Limited (RCFPL) with the Company ("the 2011 Scheme") sanctioned by the Hon''ble High Court of Judicature at Bombay vide order dated April 29,2011, an equivalent amount, equivalent to the investments written off amounting to Rs. 680 crore determined as an exceptional item by the Board of Directors of the Company, has been withdrawn from General Reserve to offset the same and credited to the Statement of profit and Loss so that there is no impact on profit before tax for the year.

Had both the Schemes not prescribed the above accounting treatment and Company has followed accounting treatment prescribed under Accounting Standard (AS - 14), the General reserve would have been higher by Rs. 680 crore and the balance in the statement of profit and loss would have been lower by Rs. 680 crore for the year ended March 31, 2013.

12 Business Transfer Agreement

In terms of Business Transfer Agreement (BTA) dated April 26, 2010 further amended on January 31, 2011 with its subsidiary company i.e. Reliance Home Finance Limited the Company hold loan assets of Rs. 8 crore (Previous year Rs. 11 crore) related to Reliance Home Finance Limited in the trust capacity as on March 31, 2014.

13 The Company is a partner in Reliance Capital Partners

a) The frm consists of following partners and their balances:

14 Employees Stock Option Plans

The Company operates two Employees Stock Option Plans; ESOS Plan A and ESOS Plan B introduced in the financial year 2009-10, which cover eligible employees of the Company, the Holding Company and its subsidiaries. The vesting of the options is from expiry of one year and ranges till four to five years as per Plan under the respective ESOS(s). Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company of Rs. 10 each upon payment of the exercise price during the exercise period. The Company implements and manages the ESOS plan through a trust. Advance of Rs. 64 crore (net of diminution Rs. 64 crore) [Previous year Rs. 64 crore (net of diminution Rs. 64 crore)] has been granted to Trust. Out of the said advance Trust has purchased 16,00,000 (Previous year 16,00,000) Equity Shares for the above purpose.

b) Defined benefit plans

The following tables summarise the components of the net employee benefit expenses recognised in the Statement of profit and Loss, the fund status and amount recognised in the balance sheet for the gratuity benefit plan and leave encashment plan.

15 Segment reporting

As per paragraph 4 of Accounting Standard (AS - 17), on "Segment Reporting" notifed by the Companies (Accounting Standards) Rules 2006, where a single financial report contains both consolidated financial statements and the separate financial statements of the holding company, segment reporting needs to be presented only on the basis of consolidated financial statements. In view of this, segment information has been presented at Note No. 41 of the consolidated financial statements.

16 Related party disclosures

A. List of Related Parties and their relationship: i) Holding Company

Reliance Innoventures Private Limited

ii) Subsidiary of Holding Company

AAA Enterprises Private Limited

iii) Individual Promoter

Shri Anil D. Ambani, the person having control during the year

iv) Subsidiaries

1 Reliance Capital Asset Management Limited

2 Reliance Capital Asset Management (UK) Plc

3 Reliance Asset Management (Malaysia) SDN BHD

4 Reliance Asset Management (Mauritius) Limited

5 Reliance Asset Management (Singapore) Pte. Limited

6 Reliance Capital Pension Fund Limited

7 Reliance AIF Management Company Limited (w.e.f. September 30, 2013)

8 Reliance Capital Trustee Co. Limited

9 Reliance General Insurance Company Limited

10 Reliance Gilts Limited

11 Reliance Home Finance Limited

12 Reliance Equity Advisors (India) Limited

13 Reliance Consultants (Mauritius) Limited

14 Reliance Alternative Investments Services Private Limited

15 Reliance Exchangenext Limited

16 Reliance Spot Exchange Infrastructure Limited

17 Indian Agri Services Private Limited

18 Reliance Securities Limited

19 Reliance Composite Insurance Broking Limited

20 Reliance Commodities Limited

21 Reliance Financial Limited

22 Reliance Financial Advisory Services Limited (formerly Reliance Investment Banking Services Limited) (ceased w.e.f. March 29, 2014)

23 Reliance Wealth Management Limited

24 Reliance Money Express Limited

25 Reliance Money Precious Metals Private Limited

26 Reliance Money Solutions Private Limited (w.e.f. December 2, 2013)

27 Reliance Venture Asset Management Private Limited (ceased w.e.f March 29, 2014)

28 Reliance Capital (Singapore) Pte Limited (ceased w.e.f March 26, 2014)

29 Reliance Capital AIF Trustee Company Private Limited (w.e.f. April 11, 2013)

30 Quant Capital Private Limited

31 Quant Broking Private Limited

32 Quant Capital Advisors Private Limited

33 Quant Securities Private Limited

34 Quant Commodity Broking Private Limited

35 Quant Commodities Private Limited

36 Quant Investments Services Private Limited

37 QOPPA Trading Private Limited (ceased w.e.f. March 26, 2014)

38 QCAP Trade Private Limited (ceased w.e.f. March 26, 2014)

39 Quant Alternative Asset Management Private Limited (ceased w.e.f. March 26, 2014)

40 Quant Capital Finance and Investments Private Limited

41 Quant Capital Securities Private Limited (w.e.f. August 22, 2013)

(ceased w.e.f. March 26, 2014)

42 QCAP Securities Private Limited (w.e.f. August 22, 2013) (ceased w.e.f. March 26, 2014)

v) Partnership frm

Reliance Capital Partners vi) Associates

1 Ammolite Holdings Limited

2 Indian Commodity Exchange Limited

3 Reliance Asset Reconstruction Company Limited

4 Reliance Land Private Limited

5 Reliance Life Insurance Company Limited

6 Reliance Share & Stock Brokers Private Limited

vii) Fellow subsidiaries

1 AAA Entertainment Private Limited

2 Big Flicks Private Limited

3 Zapak Mobile Games Private Limited (formerly Jump Games Private Limited)

4 Reliance Big Entertainment Private Limited

5 Reliance Communications Infrastructure Limited

6 Reliance Infratel Limited

7 Reliance Globalcom Limited

8 Reliance Communications Limited

9 Reliance Infocomm Infrastructure Limited

10 Reliance Webstore Limited

11 Zapak Digital Entertainment Limited

viii) Key management personnel

Shri V. R. Mohan - President & Company Secretary

B. Other related parties with whom transactions have taken place during the year

i) Enterprise over which individual described in clause A (iii) above has control Reliance Power Limited Reliance Cleangen Limited Jharkhand Integrated Power Limited

iv) In addition to the above, Commission of Rs. Nil (Previous year Rs. Nil) and Director Sitting Fees of Rs. 80 000 (Previous year Rs. 1 20 000) has been paid to Shri Anil D. Ambani, an individual having control. v) The Company has, during the year, sold part of its holding in unlisted equity shares of: Reliance Land Private Limited representing 45% stake (No. of shares 45 00 000, carrying value Rs. 4 crore) and Reliance Share & Stock Brokers Private Limited representing 45% stake (No. of shares 45 00 000, carrying value Rs. 4 crore).

Considering that these shares were sold to Company''s wholly owned subsidiaries and do not impact the economic interests of the Company''s shareholders, the consideration for the sale were fixed at a price equal to or slightly above their cost and not at their fair values (not ascertained) which are significantly higher.

17 During the previous year Nippon Life Insurance Company (NLIC) has acquired 26% equity shareholding in Reliance Capital Asset Management Company Limited (RCAM). The Company has waived its entitlement of bonus shares issued by RCAM.

18 Contingent Liabilities and Commitments (As certified by the Management)

(Rs. in crore)

Particulars March 31, 2014 March 31, 2013

Contingent Liabilities

i) Guarantees to Banks and Financial Institutions on behalf of third parties 2 416 1 281

ii) Claims against the Company not acknowledged as debt 12 20 Commitments

iii) Estimated amount of contracts remaining to be executed on capital account 85 38 (net of advances)

iv) Undrawn Committed Credit lines 678 434

v) Uncalled amount of Investments 7 56

19 In the opinion of management, all the assets other than fixed assets and non current investments are approximately of the value stated if realised in the ordinary course of business.

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Mar 31, 2013

1. Background

Reliance Capital Limited (''the Company'') is registered as a Non-Banking Financial Company (''NBFC'') as defined under Section 45-IA of the Reserve Bank of India Act, 1934. The Company is principally engaged in lending and investing activities.

2 Security clause / maturity profiles in respect to Secured Loans from banks / debentures

(i) Non convertible debentures (NCDs) are redeemable at par, in one or more installments, on various dates.

(a) NCDs amounting to Rs. Nil (Previous year Rs. 5 crore) are secured by way of first pari passu legal mortgage and charge over the premises situated at Avdesh House near Pritam Nagar, Ellisbridge, Ahmedabad and additional first pari passu charge by way of hypothecation on business receivables and loan assets of the commercial finance division, against security not exceeding Rs. Nil (Previous year Rs. 6 crore).

(b) NCDs amounting to Rs. 5,849 crore (Previous year Rs. 5,686 crore) are secured by way of first pari passu legal mortgage and charge over the premises situated at Avdesh House near Pritam Nagar, Ellisbridge, Ahmedabad and additional first pari passu charge by way of hypothecation on present and future book debts / business receivables of the Company. Business receivables includes Fixed Asset, Current Assets, Investments and any other assets, against security not exceeding Rs. 6,341 crore (Previous year Rs. 6,111 crore).

(c) The Company is in the process of creating security on the remaining NCDs amounting to Rs. 567 crore (Previous year Rs. 75 crore).

(d) Maturity profile and Rate of interest of Long Term NCDs are as set out below:

3 Amalgamation

I Scheme of Amalgamation between Company, Reliance Equities International Private Limited (REIPL) and Emerging Money Mall Limited (EMML)

The Scheme of Amalgamation ("the Scheme") under Sections 391 to 394 of the Companies Act, 1956 between Company, REIPL and EMML has been sanctioned by the Hon''ble High Court of Judicature at Bombay vide Order dated March 22, 2013. The scheme became effective on April 17, 2013 on filing with the Registrar of Companies (RoC) with effect from March 31, 2013 i.e. Appointed Date.

REIPL was incorporated with the main object of providing broking services to institutional investors and EMML was incorporated with the main object of e-commerce. The amalgamation has been accounted for under the "Purchase method" as prescribed by Accounting Standard (AS-14) on "Accounting for Amalgamation" notified under the Companies (Accounting Standards) Rules, 2006. The Company has carried out the accounting treatment prescribed in the Scheme as sanctioned by the Hon''ble High Court of Judicature at Bombay. The required disclosures as per paragraph 42 of Accounting Standard (AS-14) ''Accounting for Amalgamations'' as prescribed under the Companies (Accounting Standards) Rules, 2006 has been provided.

Hence, in accordance with the Scheme:-

(i) As entire issued, subscribed and paid up share capital of REIPL and EMML was held by the Company, no shares of the Company have been allotted in lieu or exchange of its holding in REIPL and EMML. Consequent to the Scheme the share capital of REIPL and EMML stands cancelled.

(ii) On Scheme becoming effective with effect from Appointed Date, the Company has written off its cancelled investments amounting to Rs. 680 crore in REIPL and EMML to the Statement of Profit and Loss of the Company for the year and recorded all the assets aggregating to Rs. 1,103 crore and liabilities aggregating to Rs. 188 crore as appearing in the books of REIPL and EMML at their respective fair value as decided by the Board of Directors of the Company. The net assets taken over include:

(iii) All Inter-company balances including liabilities on account of loans and advances amounting to Rs. 186 crore on Appointed Date also stand cancelled. Consequent upon the above Scheme of Amalgamation, there has been a reduction of Rs. 69 crore in the value of investments in Viscount Management Services Limited which has been debited to Capital Reserve.

(iv) Difference aggregating to Rs. 846 crore after recording both above said items being the excess arising on transfer under the Scheme of assets and liabilities has been credited to Capital Reserve. The reserve created pursuant to the Scheme shall for all regulatory and accounting purposes be considered to be part of the owned funds / net worth of the Company

(v) In accordance with the provisions of the Scheme of Amalgamation of Reliance Commercial Finance Private Limited (RCFPL) with the Company ("the 2011 Scheme") sanctioned by the Hon''ble High Court of Judicature at Bombay vide order dated April 29,201 1, an equivalent amount, equivalent to the investments written off amounting to Rs. 680 crore determined as an exceptional item by the Board of Directors of the Company, has been withdrawn from General Reserve to offset the same and credited to the Statement of Profit and Loss so that there is no impact on profit before tax for the year.

Had both the Schemes not prescribed the above accounting treatment and Company has followed accounting treatment prescribed under Accounting Standard (AS - 14), the General reserve would have been higher by Rs. 680 crore and the balance in the statement of profit and loss would have been lower by Rs.680 crore.

II Scheme of Amalgamation between Company and Viscount Management Services (Alpha) Limited (VMSAL)

The Scheme of Amalgamation ("the Scheme") under Sections 391 to 394 of the Companies Act, 1956 between Company and VMSAL was sanctioned by the Hon''ble High Court of Judicature at Bombay vide Order dated January 20, 201 2. The scheme became effective on March 12, 2012 on filing with the Registrar of Companies (RoC) with effect from October 1, 2011 i.e. Appointed Date.

VMSAL was incorporated with the main object of business consultancy service. The amalgamation has been accounted for under the "Purchase method" as prescribed by Accounting Standard (AS-14) on "Accounting for Amalgamation" notified under the Companies (Accounting Standards) Rules, 2006. The Company has carried out the accounting treatment prescribed in the Scheme as sanctioned by the Hon''ble High Court of Judicature at Bombay. The required disclosures as per paragraph 42 of Accounting Standard (AS-14) ''Accounting for Amalgamations'' as prescribed under the Companies (Accounting Standards) Rules, 2006 has been provided.

Hence, in accordance with the Scheme:-

(i) Before Scheme becomes effective the entire issued, subscribed and paid up share capital was held by the Company No shares of the Company have been allotted in lieu or exchange of its holding in VMSAL and share capital of VMSAL stands cancelled.

(ii) On Scheme becoming effective with effect from Appointed Date, the Company has recorded all the assets aggregating to Rs. 5,839 crore and liabilities aggregating to Rs. 1,385 crore as appearing in the books of VMSAL at their respective fair value as decided by the Board of Directors of the Company. The net assets taken over include:

(iii) All inter-company balances including liabilities on account of debentures and inter-company investments amounting to Rs. 1,385 crore on appointed date stands cancelled. The excess amount of investments amounting to Rs. 679 crore has been debited to general reserve toward inter-company investments cancellation.

(iv) Difference aggregating to Rs. 3,774 crore after recording both above said items being the excess arising on transfer of assets and liabilities has been credited to General Reserve.

(v) Difference in accounting method between the Company and VMSAL amounitng to Rs. 62 crore has been credited to General Reserve pursuant to the Scheme.

Had the Scheme not prescribed the above accounting treatments, the difference of Rs. 3,837 crore would have been credited to Capital Reserve instead of General Reserve and General Reserve would have been lower by equivalent amount.

III In accordance with the provisions of the Scheme of Amalgamation of Reliance Commercial Finance Private Limited (RCFPL) with the Company ("the Scheme") sanctioned by the Hon''ble High Court of Judicature at Bombay vide order dated April 29, 201 1, the loss on sale of long term investments amounting to Rs. 149 crore determined as an exceptional item by the Board of Directors of the Company has been debited in the statement of profit and loss for the previous year ended March 31, 2012. As per the Scheme and legal opinion obtained by the Company equivalent amount has been withdrawn from General Reserve to adjust the same, which has been disclosed accordingly. Had such losses not been met from General Reserve, the Company would have reflected a profit before tax of Rs. 472 crore and Profit after tax for the year would have been Rs. 370 crore.

4 Business Transfer Agreement

In terms of Business Transfer Agreement (BTA) dated April 26, 2010 further amended on January 31, 2011 with its subsidiary company i.e. Reliance Home Finance Limited, the Company hold loan assets of Rs. 11 crore (Previous year Rs. 42 crore) related to Reliance Home Finance Limited in a trust capacity as on March 31, 2013.

5 Employee Stock Option Plans

The Company operates two Employee Stock Option Plans; ESOS Plan A and ESOS Plan B introduced in the financial year 2009-10, which cover eligible employees of the Company, the Holding Company and its subsidiaries. The vesting of the options is from expiry of one year and ranges till four to five years as per Plan under the respective ESOS(s). Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company of Rs. 10 each upon payment of the exercise price during the exercise period. The Company implements and manages the ESOS plan through a trust. Advance of Rs. 64 crore (net of diminution Rs. 64 crore) [Previous year Rs. 130 crore (net of diminution Rs. Nil)] has been granted to Trust. Out of the said advance Trust has purchased 16,00,000 (Previous year 16,00,000) Equity Shares for the above purpose.

6 Segment reporting

As per paragraph 4 of Accounting Standard (AS-17), on "Segment Reporting" notified by the Companies (Accounting Standards) Rules 2006, where a single financial report contains both consolidated financial statements and the separate financial statements of the holding company, segment reporting needs to be presented only on the basis of consolidated financial statements. In view of this, segment information has been presented at Note No. 40 of the consolidated financial statements.

7 Related party disclosures

A. List of Related Parties and their relationship:

i) Holding Company

Reliance Innoventures Private Limited

ii) Subsidiary of Holding Company

AAA Enterprises Private Limited

iii) Individual Promoter

Shri Anil D. Ambani, the person having control during the year

iv) Subsidiaries

Reliance Capital Asset Management Limited

Reliance Capital Asset Management (UK) Plc

Reliance Asset Management (Malaysia) SDN BHD

Reliance Asset Management (Mauritius) Limited

Reliance Asset Management (Singapore) Pte. Limited

Reliance Capital Pension Fund Limited

Reliance Capital Trustee Company Limited

Reliance General Insurance Company Limited

Reliance Gilts Limited

Reliance Home Finance Limited

Reliance Equity Advisors (India) Limited

Reliance Consultants (Mauritius) Limited

Reliance Exchangenext Limited

Reliance Spot Exchange Infrastructure Limited

Indian Agri Services Private Limited (w.e.f April 30, 2012)

Reliance Securities Limited

Reliance Wealth Management Limited

Reliance Financial Limited

Reliance Money Precious Metals Private Limited

Reliance Commodities Limited

Reliance Investment Banking Services Limited

Reliance Money Express Limited

Reliance Composite Insurance Broking Limited

Reliance Alternative Investments Services Private Limited

Reliance Capital (Singapore) Pte Limited

Reliance Venture Asset Management Private Limited

Reliance Equities International Private Limited

(merged with the company w.e.f. March 31, 2013)

Emerging Money Mall Limited (w.e.f. February 20, 2013)

(merged with the company w.e.f. March 31, 2013)

QOPPA Trading Private Limited

Quant Broking Private Limited

Quant Capital Advisors Private Limited

Quant Capital Finance And Investments Private Limited

Quant Capital Private Limited

Quant Commodities Private Limited

Quant Commodity Broking Private Limited

Quant Investments Services Private Limited

Quant Securities Private Limited

QCAP Trade Private Limited

Quant Alternative Asset Management Private Limited (w.e.f. October 12, 2012)

v) Partnership firm

Reliance Capital Partners

Reliance Capital Infrastructure Partners (dissolved w.e.f. December 31, 2012)

vi) Associates

Ammolite Holdings Limited

Indian Commodity Exchange Limited

Reliance Asset Reconstruction Company Limited

Reliance Land Private Limited

Reliance Life Insurance Company Limited

Reliance Share & Stock Brokers Private Limited

vii) Fellow subsidiaries

AAA Entertainment Private Limited

Big Flicks Private Limited

Jump Games Private Limited

Reliance Big Entertainment Private Limited

Reliance Communications Infrastructure Limited

Reliance Communications Limited

Reliance Infocomm Infrastructure Private Limited

Reliance Webstore Limited

Zapak Digital Entertainment Limited

viii) Key management personnel

Shri V. R. Mohan - President & Company Secretary

B. Other related parties with whom transactions have taken place during the year:

i) Enterprise over which individual described in clause A (iii) above has control Reliance Power Limited

8 During the year Nippon Life Insurance Company (NLIC) has acquired 26% equity shareholding in Reliance Capital Asset Management Company Limited (RCAM). The Company has waived its entitlement of bonus shares issued by RCAM.

9 The gold loans outstanding as at March 31, 2013 as a percentage of total assets is at 0.22% (previous year 0.19%).

10 During the year, the Company reported to Reserve Bank of India (RBI) fraud in disbursal of commercial vehicle loans amounting to Rs. 6 crore, as on March 31, 2013, Rs. 2 crore was recovered and write-off / provision was made for the balance amount of Rs. 4 crore.

11 Contingent Liabilities and Commitments (As Certified by the Management)

(Rs. in crore)

Particulars March 31, 2013 March 31, 2012

Contingent Liabilities

i) Guarantees to Banks and Financial Institutions on behalf of third parties 1 281 983

ii) Claims against the Company not acknowledge as debt 20 22

Commitments

iii) Estimated amount of contracts remaining to be executed on capital account (net 38 81 of advances)

iv) Undrawn Committed Credit lines 434 253

v) Uncalled amount of Investments 56 79

12 In the opinion of management, all the assets other than fixed assets and non current investments are approximately of the value stated if realised in the ordinary course of business.

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Mar 31, 2012

1 Background

Reliance Capital Limited ('the Company') is registered as a Non-Banking Financial Company ('NBFC') as defned under Section 45-IA of the Reserve Bank of India Act, 1934. The Company is principally engaged in lending and investing activities.

2 The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, Schedule VI to the Companies Act, 1956. Consequent to the notifcation of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 have been prepared as per Revised Schedule VI. Accordingly, the previous year's fgures have also been reclassifed to conform to this year's classifcation. The adoption of the Revised Schedule VI for the previous year's fgures does not impact recognition and measurement principles followed for preparation of financial statements.

The figures for current year includes fgures of Viscount Management Services (Alpha) Limited (VMSAL) which is amalgamated with the Company with effect from October 1, 2011 i.e. the Appointed Date and therefore to that extent not strictly comparable to that of Previous year's Figures.

3 Amalagamation

I Scheme of Amalgamation between Company and Viscount Management Services (Alpha) Limited (VMSAL)

The Scheme of Amalgamation ("the Scheme") under Sections 391 to 394 of the Companies Act, 1956 between Company and Viscount Management Services (Alpha) Limited (VMSAL) has been sanctioned by the Hon'ble High Court of judicature at Bombay vide Order dated January 20, 2012. The scheme has become effective on March 12, 2012 on fling with the Registrar of Companies (RoC) with effect from October 1, 2011 i.e. Appointed Date.

VMSAL was incorporated with the main object of business consultancy service. The amalgamation has been accounted for under the "Purchase method" as prescribed by Accounting Standard (AS-14) on "Accounting for Amalgamation" notifed under the Companies (Accounting Standards) Rules, 2006. The Company has carried out the accounting treatment prescribed in the Scheme as sanctioned by the Hon'ble High Court of Judicature at Bombay. The required disclosures as per paragraph 42 of Accounting Standard 14 (AS-14) 'Accounting for Amalgamations' as prescribed under the Companies (Accounting Standards) Rules, 2006 has been provided.

Hence, in accordance with the Scheme:- (i) Before Scheme becomes effective the entire issued, subscribed and paid up share capital was held by the Company.

No shares of the Company have been allotted in lieu or exchange of its holding in VMSAL and share capital of VMSAL stand cancelled.

(ii) On Scheme becoming effective with effect from Appointed Date, the Company has recorded all the assets aggregating to Rs. 5,839 crore and liabilities aggregating to Rs. 1,385 crore as appearing in the books of VMSAL at their respective fair value as decided by the Board of Directors of the Company. The net assets taken over include:

(iii) All Inter-company balances including liabilities on account of debentures and inter- company investments amounting to Rs. 1,385 crore on appointed date stand cancelled. The excess amount of investments amounting to Rs. 679 crore has been debited to general reserve toward inter- company investments cancellation.

(iv) Difference aggregating to Rs. 3,774 crore after recording both above said items being the excess arising on transfer of assets and liabilities has been credited to General Reserve.

(v) Difference in accounting method between the Company and VMSAL amounting to Rs. 62 crore has been credited to General Reserve pursuant to the Scheme.

Had the Scheme not prescribed the above accounting treatments, the difference of Rs. 3,837 crore would have been credited to Capital Reserve instead of General Reserve and General Reserve would have been lower by equivalent amount.

II During the year, Nippon Life Insurance Company (NLIC) has acquired 26 per cent equity shareholding in Reliance Life Insurance Company Limited, in terms of share subscription & share purchase agreement entered into between the Company, Viscount Management Services (Alpha) Limited (VMSAL), Viscount management Services Limited (VMSA), Reliance Life Insurance Company Limited (RLIC) and Nippon Life Insurance Company (NLIC).

III During the previous year, pursuant to the Scheme of Amalgamation ("the Scheme") under Sections 391 to 394 of the Companies Act, 1956 sanctioned by the Hon'ble High Court of judicature at Bombay vide order dated April 29, 2011, fled with the Registrar of Companies on May 18, 2011, Reliance Commercial Finance Pvt. Ltd., wholly owned subsidiary of the Company, was amalgamated into the Company with effect from April 1, 2010 i.e., the Appointed Date and in accordance with the provisions of the said Scheme:

a) The Company has written off Rs. 329 crore in the Statement of profit and loss and an equivalent amount is withdrawn from general reserve. The Company has recorded all necessary accounting effects in the previous year, along with the requisite disclosure in the notes to the accounts and created General Reserve amounting to Rs. 1,04,484.

b) During the year, the loss on sale of long term investments amounting to Rs. 149 crore determined as an exceptional item by the Board of Directors of the Company, has been debited in the Statement of profit and Loss for the year ended March 31, 2012. As per the Scheme and legal opinion obtained by the Company an equivalent amount has been withdrawn from General Reserve to adjust the same and credited to the Statement of profit and Loss, which has been disclosed accordingly and is in compliance with Revised Schedule VI of the Companies Act, 1956. Had such losses not been met from General Reserve, the Company would have refected a profit before tax of Rs. 472 crore and profit after tax for the year would have been Rs. 370 crore.

4 Business Transfer Agreement

In terms of Business Transfer Agreement (BTA) dated April 26, 2010 further amended on January 31, 2011 with its subsidiary company i.e. Reliance Home Finance Limited the Company hold loan assets of Rs. 42 crore (Previous year Rs. 135 crore), and liabilities Rs. Nil (Previous year Rs. 1 crore), related to Reliance Home Finance Limited in a trust capacity as on March 31, 2012 .

5 Employee Stock Option Plans

The Company operates two Employee Stock Option Plans; ESOS Plan A and ESOS Plan B introduced in the financial year 2009-10, which cover eligible employees of the Company, the Holding Company and its subsidiaries. The vesting of the options is from expiry of one year and ranges till four to five years as per Plan under the respective ESOS(s). Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company of Rs. 10 each upon payment of the exercise price during the exercise period. The Company implements and manages the ESOS plan through a trust. Advance of Rs. 130 crore (Previous year Rs. 130 crore) has been granted to Trust. Out of the said advance Trust has purchased 16,00,000 (Previous year 16,00,000) Equity Shares for the above purpose till March 31, 2012.

6 Segment reporting:

As per paragraph 4 of Accounting Standard (AS) 17, on "Segment Reporting" notifed by the Companies (Accounting Standards) Rules 2006, where a single financial report contains both consolidated financial statements and the separate financial statements of the holding company, segment reporting needs to be presented only on the basis of consolidated financial statements. In view of this, segment information has been presented at Note No. 38 of the consolidated financial statements.

(Rs. in crore)

Fellow Partnership Particulars Subsidiaries Assoc -iates Total Subsi -diaries Firm

Contingent Liability

a) Guarantees to Banks and Financial

i) Reliance Money Express Limited - - - - -

(40) (-) (-) (-) (40)

ii) Ammolite Holdings Limited - - 77 - 77

(-) (-) (80) (-) (80)

Key Managerial Personnel

a) Shri V. R. Mohan

- Employee beneft expenses Rs. 68 54 397 (Previous year Rs. 42 00 000)

- Loan given balance as at March 31, 2012 Rs. 4 49 751 (Previous year Rs. 4 64 151)

Enterprise over which individual described in clause A (iii) above has control

Reliance Power Limited

- Commercial Paper subscribed & redeemed Rs. 224 crore (Previous year Nil)

- Investment balance as at March 31, 2012 Rs. 3 crore Notes :

i) Figures in bracket indicate previous year fgures.

ii) Expenses incurred towards public utilities services such as telephone and electricity charges have not been considered for related party transaction.

iii) The above disclosed transactions entered during the period of existence of related party relationship. The balances and transactions are not disclosed before existence of related party relationship and after cessation of related party relationship.

iv) In addition to the above, Commission of Rs. Nil (Previous year Rs. 6 crore) and Director sitting fees of Rs. 1,00,000 (Previous year Rs. 80,000) has been paid to Shri Anil D. Ambani, an individual having control.

v) Investments in Unilazer Media Limited though in excess of 20%, the investment has been made with an intention to sell in near future. In terms of the provisions of Accounting Standard (AS) 18 on "Related Party Disclosures" as per Companies (Accounting Standard) Rules 2006 on aforesaid Company, the company does not exercise any "significant Infuence" hence the transactions with these parties as not considered for related party disclosures.

vi) Pursuant to the Scheme of Amalgamation ("the Scheme") between Company and Viscount Management Services (Alpha) Limited (VMSAL) [Refer Note No. 29 (I) (a) (iii)] entire issued, subscribed and paid up share capital of VMSAL was held by the Company and was cancelled. Therefore, for the purpose of above disclosures the same has not been considered.

7 Contingent Liabilities and Commitments (As certified by the Management)

(Rs. in crore)

Particulars March 31, 2012 March 31, 2011

Contingent Liabilities

i) Guarantees to Banks and Financial Institutions on behalf of Third parties 983 1 142

ii) Claims against the Company not acknowledged as debt 22 13

Commitments

iii) Estimated amount of contracts remaining to be executed on capital account 81 71 (net of advances)

iv) Undrawn Committed Credit lines 253 421

v) Uncalled amount of Investments 79 355

8 In the opinion of management, all the assets other than fixed assets and non current investments are approximately of the value stated if realised in the ordinary course of business.

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Mar 31, 2011

A. Background

Reliance Capital Limited. ('the Company') is registered as a Non-Banking Financial Company ('NBFC') as defined under Section 45-IA of the Reserve Bank of India Act, 1934. The Company is principally engaged in lending and investment activities.

1. a) Previous Year's figures have been reworked, regrouped and reclassified wherever necessary.

b) The figures for the current year includes figures of Reliance Commercial Finance Pvt. Ltd. (Formerly Reliance Consumer Finance Pvt. Ltd.) (RCFPL) which is amalgamated with the Company with effect from April 1, 2010 and therefore to that extent not comparable to the Previous Year's figures.

2. a) Pursuant to the Scheme of Amalgamation ("the Scheme") under Sections 391 to 394 of the Companies Act, 1956 as sanctioned by the Hon'ble High Court of judicature at Bombay vide Order dated April 29, 2011 and fled with the Registrar of Companies (RoC) Maharashtra on May 18, 2011, Reliance Commercial Finance Pvt. Ltd. (RCFPL) - (wholly owned subsidiary of the Company whose core business was commercial finance business) has been amalgamated with the Company with effect from April 1, 2010 i.e., the Appointed Date.

b) The Amalgamation has been accounted for under the "Purchase Method" as prescribed by Accounting Standard (AS) 14 "Accounting for Amalgamation" prescribed by Companies (Accounting Standards) Rules, 2006.

c) In accordance with the said Scheme : i) All the assets, debts, liabilities, duties and obligations of RCFPL have been vested in the Company with effect from

April 1, 2010 and have been recorded at their respective book values under the purchase method of accounting for Amalgamation. All Intercompany balances and transactions during the year has been cancelled. There were no difference in the accounting policies of RCFPL and the Company.

ii) In accordance with the said Scheme, any excess / (shortfall) arising on transfer of assets over liabilities have been credited / (debited) to the General Reserve.

iv) As per Scheme of Amalgamation, investments in the shares of RCFPL of Rs. 329 crore is written off in the profit & Loss Account and an equivalent amount is withdrawn from the General Reserve. Had the scheme not provided for the treatment the difference of Rs. 0.01 crore would have been credited to Capital Reserve and General Reserve would have been lower by Rs. 0.01 crore.

b) The Company invests in Pass Through certificates (PTCs) and purchases loans through the direct assignment route. In some of the securitisation transactions, the Company also has invested in the assets securitised by it, which, however, is restricted to the maximum limit prescribed by RBI from time to time.

c) During the year, Company has entered into an agreement with Reliance Home Finance Pvt. Ltd., a subsidiary of the Company (Previous Year with AU Financiers (India) Pvt. Ltd.) for loan assignment. As per deed of assignment, for loans aggregating to Rs. 492.88 crore (Previous Year Rs. 8.16 crore), the Company has been assigned the right for future receivables along with a power of attorney authorising the Company, inter-alia, to obtain possession of the assets in case of default. The above loans are secured against hypothecation of underlying assets.

3. The Company had entered into business transfer agreements (BTA) on April 26, 2010 with its subsidiaries i.e. Reliance Home Finance Pvt. Ltd. (RHFPL) and Reliance Commercial Finance Pvt. Ltd. (RCFPL) to transfer the business of Commercial Finance Division (RCF) at book value, such that the entire economic risk and reward of the RCF segment passes to the purchasers from the commencement of business on the value date i.e. April 1, 2010.

4. Owing to the amalgamation of Reliance Commercial Finance Pvt. Ltd. (Formerly Reliance Consumer Finance Pvt. Ltd.) wholly owned subsidiary, with the Company with effect from April 1, 2010, the business transfer agreements (BTA) entered on April 26. 2010 stand cancelled.

The Company has amended the BTA with Reliance Home Finance Pvt. Ltd. on January 31, 2011. As per the amended BTA with RHFPL :

a) The Company holds loan assets of Rs. 134.88 crore and liabilities of Rs. 1.14 crore of RHFPL in the capacity of trustee as on March 31, 2011.

b) During the year, the Company has transferred the following assets, income and expenses : i) unamortized DSA Commission of Rs. 1.91 crore ii) interest & other income of Rs. 46.68 crore iii) interest & other expenses of Rs. 31.25 crore iv) DSA commission expenses of Rs. 1.87 crore

5. The Company operates two Employee Stock Option Plans; ESOS Plan A and ESOS Plan B introduced in the financial year 2009- 10, which cover eligible employees of the Holding Company, the Company and its subsidiaries. The vesting of the options is from expiry of one year and ranges till four to five years as per Plan under the respective ESOS(s). Each Option entitles the holder thereof to apply for and be allotted / transferred one Equity Share of the Company of Rs. 10 each upon payment of the exercise price during the exercise period. The Company implements and manages the ESOS plan through a trust. Advance of Rs. 130.41 crore (Previous Year Rs. 96.41crore) has been granted to Trust. Out of the said advance, Trust has purchased 16,00,000 (Previous Year 11,00,000) Equity Shares on account of ESOS upto March 31, 2011.

The Company has chosen to account for the Plan by the Intrinsic Value Method. The total expense recognised for the period arising from stock option plan as per Intrinsic Value Method is Rs. Nil (Previous Year Rs. Nil). Had the company adopted fair value method the net results for the year would have been lower by Rs. 14.20 crore (Previous Year Rs. 2.53 crore) [net of tax saving Rs. 14.20 crore (Previous Year Rs. 2.11 crore) and accordingly EPS (both Basic and Diluted) would have been lower by Rs. 0.57 (Previous Year Rs. 0.09).

6. Micro, small and medium enterprises :

During the current year, the management has carried out the process of identification of enterprises, which have provided goods and services to the Company and which qualify under the definition of medium and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Based on the inputs received on above, there have been no reporting cases of delays in payments to micro and small enterprises or of interest payments due to delays in such payments.

7. The Company is a partner in the following firms: i) Reliance Capital Partners:

a) The firm consists of following partners:

i) Reliance Capital Limited ii) Reliance Land Pvt. Ltd.

b) profit sharing ratio:

The profit is distributed between the partners on the basis of the weighted average capital.

c) The profit of Rs. 39.58 crore is considered as profit of the current financial year (Previous Year Loss of Rs. 1.04 crore). ii) Reliance Capital Infrastructure Partners:

a) The firm consists of following partners:

i) Reliance Capital Limited ii) Reliance Infocomm Infrastructure Pvt. Ltd. iii) Reliance Infraprojects Ltd.

b) profit sharing ratio:

The profit is distributed between the partners on the basis of the weighted average capital.

c) The firm has not commenced operations as at March 31, 2011 and there has been no contribution of capital upto March 31, 2011.

8. Tax on Proposed Dividend

As on April 27, 2011, the Reliance Capital Assets Management Ltd. (RCAM), a subsidiary of the Company has proposed dividend of Rs. 161.40 crore (Dividend distribution tax thereon Rs. 26.18 crore) which is subsequently approved by its shareholders in their general meeting held on May 23, 2011. As on May 26, 2011 the Company has received dividend of Rs. 149.99 crore from RCAM. In view of Section 115- O of the Income Tax Act, 1961, the Company has reduced its dividend tax liabilities to that extent.

9. Segment reporting:

As per paragraph 4 of Accounting Standard -17 (AS-17), on "Segment Reporting" notified by the Companies (Accounting Standard) Rules 2006, where a single financial report contains both consolidated financial statements and the separate financial statements of the holding company, segment reporting needs to be presented only on the basis of consolidated financial statements. In view of this, segment information has been presented at Note No. 17 of the abridged consolidated financial statements.

10. Related party disclosures: (A) List of Related Parties: i) Holding Company

Reliance Innoventures Pvt. Ltd. ii) Individual Promoter

Shri Anil D. Ambani, the person having control during the year

11. a) Accrued Premium / Interest on Investments includes Rs. 61.08 crore due from Associates (Previous Year Rs. 24.95 crore).

b) Accrued Premium / Interest on Investments amounting to Rs. 126.36 crore are due within 1 Year. (Previous Year Rs. 45.31 crore).

12. In the financial year 2008-09, the Company has entered into a joint venture with KGS Developers Ltd. in respect of real estate project development. The Company has invested Rs. 85 crore and is entitled to share the profit / Loss equally.

13. Contingent Liabilities and Commitments (As certified by the Management)

(Rs. in crore)

Particulars March 31, 2011 March 31, 2010

Contingent Liabilities

i) Guarantees to Banks and Financial Institutions on behalf of subsidiaries and 1,142.48 235.00 Associates

ii) Claims against the Company not acknowledged as debt 12.71 11.95 Commitments

iii) Estimated amount of contracts remaining to be executed on capital account 70.58 27.11 (net of advances)

iv) Uncalled amount of Investments 354.68 371.66

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Mar 31, 2010

A. Background

Reliance Capital Limited. (the Company) is registered as a Non-Banking Financial Company (NBFC) as defined under section 45-IA of the Reserve Bank of India Act, 1934. The Company is principally engaged in lending and investing activities.

1 Previous years figures have been reworked, regrouped and reclassified wherever necessary.

2 During the year the Company has entered into a agreement with AU Financiers (India) Pvt. Ltd. for loan assignment. As per deed of assignment, for loans aggregating to Rs.8.16 crore (Previous year Rs.Nil) the Company has been assigned the right to future receivables along with a power of attorney authorizing the Company, inter-alia, to obtain possession of the property in case of default. The above loans are secured against hypothecation of underlying assets.

3 During the year, the company has sold the assets amounting to Rs.4.05 crore (Previous Year Rs.Nil) at cost. The same has been been accquired in accordance with the requirement of RBI Circular: DBOD.NO.BP.BC.16/21.04.048/05-06 dated July 13, 2005 on Guidelines on Puchase / Sale of Non Performing Assets.

4 Subsequent to the Balance sheet date, on April 26, 2010, the Company entered into business transfer agreement with its subsidiaries i.e. Reliance Home Finance Private Limited (RHFPL) and Reliance Consumer Finance Private Limited (RCFPL) (together referred to as the purchasers) to transfer the business of Consumer Finance Division (RCF) segment at book value such that the entire economic risk and reward of the RCF segment passes to the purchasers from the commencement of business on the value date i.e. April 1, 2010. Pursuant to the provisions of Section 293(1)(a) and Section 192A of the Act, the Company is in the process of obtaining shareholders approval.

As per the business transfer agreement entered into with the purchasers, the Company has agreed to hold in trust for the benefit of the purchasers any part of the assets and liabilities that has not been transferred to the purchasers on the value date.

The assets and liabilities transferred to the purchasers as at April 1, 2010 are as follows : Total Assets Rs.6,239.83 crore Total Liabilities Rs.5,986.75 crore

5 During the year the Company has introduced Employee Stock Option Plan, under which it has granted 7,96,900 options (3,99,900 options under Plan A and 3,97,000 options under Plan B) to the eligible employees of the Company as well as employees of its Subsidiary Companies on the basis of their performance and other eligibility criteria. ESOS Plans are administered through an ESOS Trust. The vesting of the options is on the expiry of one year and so on from the date of grant as per Plan under the respective ESOS(s). In respect of Options granted, the accounting value of Options (based on market price of the share on the date of the grant of the option) is accounted as deferred employee compensation, which is amortised on a straight line basis over the vesting period. Each Option entitles the holder thereof to apply for and be allotted/ transferred one Equity Share of the Company of Rs.10 each upon payment of the exercise price during the exercise period. The Company has established a Trust for the implementation and management of ESOS for the benefit of its present and future employees. Advance of Rs.96.41 crore (Previous year Rs.Nil) has been granted to the Trust. Rs.96.40 (Previous year Rs.Nil) has been utilised by the Trust for purchasing 11,00,000 (Previous year Nil) Equity Shares during the period upto March 31, 2010.

6 Micro, small and medium enterprises

During the current year, the management has carried out the process of identification of enterprises, which have provided goods and services to the Company and which qualify under the definition of medium and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Based on the inputs received on above, there have been no reporting cases of delays in payments to micro and small enterprises or of interest payments due to delays in such payments.

7 The Company is a partner in the following firms i) Reliance Capital Partners

a) The firm consists of following partners i) Reliance Capital Limited

ii) Reliance Land Pvt. Ltd. iii) Shri Surendra Pipara

b) Profit Sharing Ratio:

The profit is distributed between the partners on the basis of the weighted average capital .

The Loss of Rs.1.04 crore is considered as Loss of the current financial year (Previous Year Loss of Rs.4.40 crore).

ii) Reliance Capital Infrastructure Partners:

a) The firm consists of following partners: i) Reliance Capital Limited

ii) Reliance Infocomm Infrastructure Pvt. Ltd.

iii) Reliance Infraprojects Ltd.

b) Profit Sharing Ratio:

The profit is distributed between the partners on the basis of the weighted average capital.

The firm has not commenced operations during the year ended March 31, 2010 and there has been no contribution of capital upto March 31, 2010.

8. Employee benefits

a) Defined Contribution Plan

Amount of Rs.4.22 crore (Previous Year : Rs.5.61 crore) is recognised as expense and included in "Employee costs" referred to in Schedule L in the Profit and Loss Account.

b) Defined Benefit Plan

The following tables summarise the components of the net employee benefit expenses recognised in the Profit and Loss account, the fund status and amount recognised in the balance sheet for the gratuity benefit plan and leave encashment plan.

9. Segment reporting:

As per paragraph 4 of Accounting Standard (AS-17), on "Segment Reporting" notified by the Companies (Accounting Standard) Rules 2006, where a single financial report contains both consolidated financial statements and the separate financial statements of the holding company, segment reporting needs to be presented only on the basis of consolidated financial statements. In view of this, segment information has been presented at Note No.15 of Schedule O of the consolidated financial statements.

10. Related party disclosures:

i) Holding Company

Reliance Innoventures Pvt. Ltd. (Holding Company w.e.f. June 26, 2009)

AAA Enterprises Pvt. Ltd. (Ceased to be Holding Company w.e.f. June 26, 2009)

ii) Individual Promoter

Shri Anil D. Ambani, the person having control during the year.

iii) Subsidiaries

Reliance Capital Asset Management Ltd.

Reliance Capital Trustee Company Ltd.

Reliance General Insurance Company Ltd.

Reliance Gilts Ltd.

Reliance Capital Research Pvt. Ltd.

Reliance Money Express Ltd.

Medybiz Pvt. Ltd.

Net Logistics Pvt. Ltd.

Reliance Venture Asset Management Pvt. Ltd. (formerly Reliance Technology Ventures Pvt. Ltd.)

Reliance Capital Markets Pvt. Ltd.

Reliance Asset Management (Mauritius) Ltd.

Reliance Asset Management (Malaysia) SDN BHD w.e.f. April 19, 2009.

Reliance Asset Management (Singapore) Pte. Ltd.

Reliance Capital Asset Management (UK) Plc.

Reliance Equity Advisors (India) Ltd.

Reliance Consultants (Mauritius) Ltd.

Reliance Equities International Pvt. Ltd.

Reliance Home Finance Pvt. Ltd.

Reliance Capital Services Pvt. Ltd.

Reliance Capital (Singapore) Pte. Ltd.

Reliance Consumer Finance Pvt. Ltd.

Reliance Securities Ltd.

Reliance Commodities Ltd.

Reliance Financial Ltd.

Reliance Alternative Investments Services Pvt. Ltd.

Reliance Prime International Ltd.

Reliance Capital Pension Fund Ltd.

iv) Partnership firm

Reliance Capital Partners

Reliance Capital Infrastructure Partners

v) Associates

Reliance Land Pvt. Ltd.

Reliance Share & Stock Brokers Pvt. Ltd.

Ammolite Holdings Ltd.

Reliance Asset Reconstruction Co. Ltd.

vi) Fellow subsidiaries

Reliance Communications Ltd.

Reliance Communications Infrastructure Ltd.

Reliance Telecom Ltd.

Matrix Innovations Ltd.

Reliance Natural Resources Ltd.

Reliance WiMax Ltd.

Reliance Webstore Ltd.

Reliance Infocomm Infrastructure Pvt. Ltd.

vii) Key management personnel

Shri V. R. Mohan - Company Secretary & Manager

11 a) Accrued Premium / Interest on Investments includes Rs.24.95 crore due from Associates (Previous Year Rs.2.90 crore) b) Accrued Premium / Interest on Investments amounting to Rs.45.31 crore are due within 1 Year. (Previous Year Rs.Nil)

12 In the financial year 2008-09, the Company has entered into a joint venture with KGS Developers Ltd in respect of certain real estate project devlopment, The Company has invested Rs.85 crore and is entitled to share the Profit / Loss equally. The joint venture has not commenced operations during the year ended March 31, 2010.

13. Contingent Liabilities and Commitments (As Certified by the Management)

(Rs. in crore) As at As at March 31, 2010 March 31, 2009

Contingent Liabilities

i) Guarantees to Banks and Financial Institutions 235.00 366.43 on behalf of Subsidiaries and Associates.

ii) Claims against the Company not acknowledged as debt 11.95 0.09 Commitments

iii) Estimated amount of contracts remaining to be executed on capital account (net of advances) 27.11 23.09

iv) Uncalled amount on Investment 371.66 265.17

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Mar 31, 2000

No Informations available.

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Mar 31, 2000

No Informations available.

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Mar 31, 1999

No Information Available.

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Mar 31, 1999

No Information Available.

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Mar 31, 1996

1. a. Payment to Auditors Rs. As Auditors 35,000 Tax Audit fees 10,000 Certification Fees 10,000

2. Expenditure in Foreign currency Travel: Rs. 1,33,025

3. Balance Sheet Abstract and Company's General Business Profile

1. Registration Details Registration No. 24780 State Code 04 Balance Sheet date 31 03 96 Date Month Year

ii. Capital raised during the year (Amount in Rs. Thousands) Private Placement (Promoter's Contribution) 60007

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Mar 31, 1996

1. a. Payment to Auditors Rs. As Auditors 35,000 Tax Audit fees 10,000 Certification Fees 10,000

2. Expenditure in Foreign currency Travel: Rs. 1,33,025

3. Balance Sheet Abstract and Company's General Business Profile

1. Registration Details Registration No. 24780 State Code 04 Balance Sheet date 31 03 96 Date Month Year

ii. Capital raised during the year (Amount in Rs. Thousands) Private Placement (Promoter's Contribution) 60007