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NOTES TO ACCOUNTS

Reliance Capital Ltd.

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Market Cap. (₹) 339.89 Cr. P/BV -0.35 Book Value (₹) -38.08
52 Week High/Low (₹) 264/12 FV/ML 10/1 P/E(X) 0.00
Bookclosure 18/09/2018 EPS (₹) 0.00 Div Yield (%) 78.07
Year End :2018-03 

1 Background

Reliance Capital Limited (‘the Company’) is registered as Non-Banking Financial Company (NBFC) as defined under Section 45-IA of the Reserve Bank of India Act, 1 934 (RBI). The Company has positioned itself as a Core Investment Company (‘CIC’) in terms of the Core Investment Companies (Reserve Bank) Directions, 201 6 (RBI CIC Directions). As a CIC, the Company is primarily a holding company, holding investments in its subsidiaries, associates and other group companies. The Company’s subsidiaries and associates are engaged in a wide array of businesses in the financial service sector.

2 Previous year figures has been regrouped / reclassified wherever necessary.

(a) The Company has one class of equity shares having a par value of Rs.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.

The Board of Directors have recommended a dividend of 110 per cent [Rs.1 1 (Previous year Rs.1 0.50) per equity share] for the year subject to the approval of the members of the Company at the ensuing Annual General Meeting. In terms of revised Accounting Standard (AS) 4 ‘Contingencies and Events Occurring After the Balance Sheet Date’ as notified by the Ministry of Corporate Affairs through Amendments to the Companies (Accounting Standards) Amendment Rules, 201 6 dated March 30, 2016, the Company has not accounted for proposed dividend as a liability as at March 31, 2018. Accordingly, the proposed dividend of Rs.278 crore and tax thereon Rs.52 crore (net of dividend distribution tax set-off receivable from subsidiaries) are not recognised as liability in the financial statements for the year ended March 31, 2018.

(b) As on March 31, 2018, 1 1,58,71 1 equity shares (Previous year 14,76,167 equity shares) are held by custodian against which depository receipts have been issued.

c) For employee stock options scheme refer Note No. 31.

3 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.3,549 crore (Previous year Rs.4,039 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.3,799 crore (Previous year Rs.4,289 crore).

(b) NCDs amounting to Rs.14,778 crore (Previous year Rs.9,790 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.15,503 crore (Previous year Rs.9,915 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 NCDs are as set out below:

4 Tax on proposed dividend

In view of Section 11 5-O of the Income Tax Act, 1 961, the Company has reduced its dividend tax liabilities to the extent dividend received from its subsidiary company:

5 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 earlier year. The Company managed the ESOS Plan A and ESOS Plan B through a Trust. Advance of Rs.57 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 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. Details of ESOS 2015:

* In terms of the provisions of the ESOS, exercise price of Rs.396 has been adjusted to Rs.296, on account of corporate action for demerger of Real Estate Lending Business of the Company, in line with the difference in the volume weighted average price of the Equity Shares of the Company on the National Stock Exchange of India Limited on pre and post demerger date.

The fair value of the options granted was estimated on the date of grant using the Black Scholes Model with the following assumptions:

c) The Company introduced ESOS 2017 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.

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.5 crore (Previous year Rs.25 lakh) [net of tax saving Rs.4 crore (Previous year Rs.20 lakh)] and accordingly EPS (both Basic and Diluted) would have been lower by 0.1 6 (Previous year Nil).

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.3 crore (Previous year Rs.2 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 availment but not for encashment.

6 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.

7 Related party disclosures

A. List of Related Parties and their relationship:

i) Major investing party Reliance Inceptum Private Limited

ii) Individual Promoter

Mr. Anil D. Ambani, the person having control upto October 3, 2017 and significant influence w.e.f. October 3, 2017.

iii) Subsidiaries

1 Reliance Capital Pension Fund Limited (RCPFL)

2 Reliance Capital Trustee Co. Limited (RCTC)

3 Reliance Capital AIF Trustee Company Private Limited (RCATCPL)

4 Reliance General Insurance Company Limited (RGICL)

5 Reliance Nippon Life Insurance Company Limited (RNLICL)

6 Reliance Health Insurance Limited (RHIL)

7 Reliance Home Finance Limited (RHFL)

8 Reliance Exchangenext Limited (RNext)

9 Reliance Corporate Advisory Services Limited (RCASL)

10 Reliance Securities Limited (RSL)

11 Reliance Commercial Finance Limited (RCFL)

12 Reliance Commodities Limited (RCoL)

# (ceased w.e.f. July 3 201 7)

13 Reliance Financial Limited (RFL)

14 Reliance Money Precious Metals Private Limited (RMPMPL)

15 Reliance Money Solutions Private Limited (RMSPL)

16 Reliance Wealth Management Limited (RWML)

17 Quant Capital Private Limited (QCPL)

18 Quant Broking Private Limited (QBPL)

19 Quant Investment Services Private Limited (QISPL)

20 Quant Securities Private Limited (QSPL)

21 Reliance Nippon Life Asset Management Limited (RNLAML)#

22 Reliance Asset Management (Mauritius) Limited (RAMML)#

23 Reliance Asset Management (Singapore) Pte. Limited (RAMSL)#

24 Reliance AIF Management Company Limited (RAMCL)#

iv) Associates

1 Reliance Nippon Life Asset Management Limited (RNLAML) (w.e.f. July 3, 2017)

2 Reliance Asset Reconstruction Company Limited (RARCL)

3 Indian Commodity Exchange Limited (ICEX)

4 Ammolite Holdings Limited (AHL)

5 Quant Commodity Broking Private Limited (QCBPL) (ceased w.e.f. November 29, 201 7)

v) Key Managerial Personnel

1 Mr. Jai Anmol Ambani - Executive Director

2 Mr. Amit Bapna - Chief Financial Officer

3 Mr. Atul Tandon - Company Secretary & Compliance Officer

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

1 Reliance Communications Limited (RCL)

2 Reliance Big Entertainment Private Limited (RBEPL)

3 Reliance Communications Infrastructure Limited (RCIL)

4 Reliance Realty Limited (RRL)

5 Reliance Infratel Limited (RIL)

6 Globalcom IDC Limited (GIDC)

7 Reliance Webstore Limited (RWL)

8 Nationwide Communication Private Limited (NCPL)

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.1 90 crore (Previous year Rs.1 67 crore) to RSL, Rs.60 crore (Previous year Rs.40 crore) to RGICL and Rs.52 crore (Previous year Rs.39 crore) to RFL. Debentures balance as at March 31, 201 8 includes Rs.4 crore (Previous year Rs.9 crore) to RSL, Rs.1 96 crore (Previous year Rs.225 crore) to RGICL, Rs.1 6 crore (Previous year Rs.1 2 crore) to RFL and Rs.5 crore (Previous year Rs. Nil) to RCoL. Accrued Interest on debentures as at March 31, 201 8 include Rs.10 crore (Previous year Rs.14 crore) to RGICL.

Fixed Assets

Fixed assets sold during the year include Rs.67,206 (Previous year Rs. Nil) to RSL and Rs. Nil (Previous year Rs.3,28,811) to Mr. V. R. Mohan.

Investments

Investments Subscribed / Purchased during the year include Rs.400 crore (Previous year Rs.2,1 50 crore) from RCFL, Rs.1 6 crore (Previous year Rs. Nil) from RFL, Rs.1 60 crore (Previous year Rs. Nil) from RSL, Rs. Nil (Previous year Rs.1,21 8 crore) from RCASL, Rs.373 crore (Previous year Rs.200 crore) from RHFL, Rs.5 crore (Previous year Rs. Nil) from RNLAML and includes Rs.2 crore (Previous year Rs.3 crore) from NCPL. Investments Redeemed / Sold during the year include Rs. Nil (Previous year Rs.113 crore) to RNLICL, Rs. Nil (Previous year Rs.126 crore) to RHFL, Rs. Nil (Previous year Rs.859 crore) to RCASL and includes Rs.150 crore (Previous year Rs. Nil) to RSL. Investments balance as at March 31, 2018 includes Rs.1,837 crore (Previous year Rs.1,837 crore) of RGICL, Rs.894 crore (Previous year Rs.521 crore) to RHFL, Rs.1 85 crore (Previous year Rs.1 75 crore) of RSL, Rs.200 crore (Previous year Rs.200 crore) of QCPL, Rs.35 crore (Previous year Rs.35 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.216 crore (Previous year Rs.247 crore) of RNLAM and Rs.1,218 crore (Previous year Rs.1,218 crore) of RCASL, Rs.2,613 crore (Previous year Rs.2,21 3 crore) from RCFL, Rs.64 crore (Previous year Rs.1 80 crore) of RCL [Net of provision of Rs.228 crore (Previous year Rs.113 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. Nil (Previous year Rs.76 crore) from RCP. Profit / (loss) of Partnership firm during the year include Rs. Nil (Previous year loss Rs.39,1 3,466) from RCP.

Loans Given

Loans given during the year includes Rs. Nil (Previous year Rs.5 crore) to RFL, Rs.11 crore (Previous year Rs. Nil) to RNext, Rs.33 crore (Previous year Rs.1,104) to RCASL, Rs.20 crore (Previous year Rs.60 crore) to RSL, Rs. Nil (Previous year Rs.824 crore) to RCL, Rs.1 00 crore (Previous year Rs.300 crore) to RCIL, Rs.28 crore (Previous year Rs.1 55 crore) to RBEPL, Rs. Nil (Previous year Rs.377 crore) to RIL. Loan Returned / Adjusted during the year include Rs. Nil (Previous year Rs.10 crore) from RFL, Rs.1 07 crore (Previous year Rs. Nil) from RCFL, Rs.335 crore (Previous year Rs.802 crore) from RCASL, Rs.20 crore (Previous year Rs.60 crore) to RSL, Rs.600 crore (Previous year Rs. Nil) to RCL, Rs.1 2 crore (Previous year Rs.569 crore) from RBEPL and Rs. Nil (Previous year Rs.1 crore) from RIL. Loan given balance as at March 31, 2018 include Rs.6 crore (Previous year Rs. Nil) to RNext [Net of provision of Rs. Nil (Previous year Rs.6 crore)], Rs. Nil (Previous year ‘302 crore) to RCASL, Rs.376 crore (Previous year Rs.376 crore) to RIL, Rs.224 crore (Previous year Rs.824 crore) to RCL, Rs.400 crore (Previous year Rs.300 crore) to RCIL, Rs.1 71 crore (Previous year Rs.1 55 crore) to RBEPL, Accrued Interest on loans as at March 31, 201 8 includes Rs.21 crore (Previous year Rs.4 crore) from RBEPL, Rs.51 crore (Previous year Rs.1 crore) to RIL, Rs.50 crore (Previous year Rs.10 27 397) to RCIL and Rs.51 crore (Previous year Rs.3 crore) to RCL.

Advances

Advance balance as at March 31, 201 8 includes Rs.28,44,523 (Previous year Rs.1 crore) to RGICL, Rs.2 crore (Previous year Rs.2 crore) to RSL and Rs.1,72,222 (Previous year Rs.5,42,167) to RARC.

Income

Interest & Finance Income includes Rs.4,36,986 (Previous year Rs.1 crore) from RSL, Rs.45,99,507 (Previous year Rs. Nil) from RNext, Rs.9 crore (Previous year Rs.3 crore) from RCASL, Rs.1 3 crore (Previous year Rs. Nil) from RCFL, Rs.48 crore (Previous year Rs.3 crore) from RCL, Rs.22 crore (Previous year Rs.28 crore) from RBEPL, Rs.49 crore (Previous year Rs.1 crore) from RIL and Rs.50 crore (Previous year Rs.1 0,27,397) from RCIL. Rent income include Rs.2,25,000 (Previous year Rs.9,00,000) from RCIL. Dividend Income includes Rs.258 crore (Previous year Rs.1 26 crore) from RNLAM, Rs.6 crore (Previous year Rs. Nil) from RGICL, Rs.6 crore (Previous year Rs. Nil) from RCFL, Rs.6 crore (Previous year Rs. Nil) from RHFL and Rs.1 crore (Previous year Rs.1 crore) from RARC. Reimbursement of expenditure include Rs.4 crore (Previous year Rs.7 crore) from RGICL, Rs.3 crore (Previous year Rs.3 crore) from RNLAM, Rs.2 crore (Previous year Rs.2 crore) from RSL, Rs.2 crore (Previous year Rs.14,51,114) from rHfL, Rs.3 crore (Previous year Rs. Nil) from RCFL, Rs.5 crore (Previous year Rs.9 crore) from RNLICL, Rs.3,85,81 9 (Previous year Rs.4,93,380) from RCIL and Rs.2,53,845 (Previous year Rs.7,20,996) 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 RCFL, Rs.6 crore (Previous year Rs.6 crore) from RSL, Rs.6 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. Nil (Previous year Rs.1 crore) to RHFL. Other operating incomes includes Rs.4,00,000 (Previous year Rs.5,20,000) from RARC.

Expenditure

Finance cost paid include Rs.20 crore (Previous year Rs.24 crore) to RGICL, Rs.9 crore (Previous year Rs.10 crore) to RFL and Rs.36 crore (Previous year Rs.52 crore) to RSL. Insurance include Rs.1 crore (Previous year Rs.3 crore) to RGICL and Rs.15,40,000 (Previous year Rs.22,78,125) to RNLICL. Brokerage paid during the year Rs.1 crore (Previous year Rs.1 crore) to RSL. Expense transferred as per Business Transfer Agreement include Rs. Nil (Previous year Rs.1 crore) to RHFL. Reimbursement of expenditure include Rs.3,54,000 (Previous year Rs. Nil) to RCFL, Rs. Nil (Previous year Rs.1 crore) to RSL and Rs.8 crore (Previous year Rs. Nil) to RNLAML. Provision / (Reversal) for diminution in value of investments include reversal of Rs. Nil (Previous year Rs.3 crore) of RCFL, Rs.116 crore (Previous year Rs.40 crore) of RCL. Investments written off include Rs.17 crore (Previous year Rs. Nil) of RMPMPL. Employee benefit expenses include Rs.1 crore (Previous year Rs.1 crore) to Mr. Jai Anmol Ambani, Rs.3 crore (Previous year Rs.3 crore) to Mr. Amit Bapna and Rs.1 crore (Previous year Rs.9,88,038) to Mr. Atul Tandon.

Contingent Liability

Guarantees to Banks and Financial Institutions on behalf of third parties include Rs.200 crore (Previous year Rs. Nil) for RCFL, Rs.50 crore (Previous year Rs.50 crore) for RBEPL, Rs.433 crore (Previous year Rs.550 crore) for RIL, Rs. Nil (Previous year Rs.118 crore) to RCL and Rs. Nil (Previous year Rs.118 crore) to RCIL.

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(Refer note no. 42).

iv) In regard to transactions with Reliance Home Finance Limited (Previous year Reliance Commercial Finance Limited) till effective date of demerger Refer note no. 37.

v) In addition to the above Director sitting fees of Rs.2,80,000 (Previous year Rs.2,40,000) has been paid to Mr. Anil D. Ambani, an individual having control upto October 3, 201 7 and significant influence w.e.f. October 3, 201 7.

vi) The Company has provided security amounting to Rs.707 crore for the Listed Secured Non-Convertible Debentures of its 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) Mr. 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.

viii) The Company hold investment Rs.3 crore (Previous year Rs.3 crore) of Reliance Power Limited.

8 Leases

The Company has given assets on operating lease (Refer Note No. 14). Disclosure as per Accounting Standard (AS-1 9) on “Leases” notified by the Companies (Accounts) Rules, 2014:

9 a) Scheme of Arrangement (Demerger) between the Company and Reliance Home Finance Limited

The Board of Directors of the Company at their meeting held on October 28, 201 6 had 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, 201 7, the Appointed Date. The Scheme of Arrangement under Sections 391 to 394 of the Companies Act, 1956 (the ‘Scheme’) for demerger of Real Estate Lending Business of the Company to its wholly owned subsidiary viz. Reliance Home Finance Limited has been sanctioned by the National Company Law Tribunal, Mumbai Bench. The Scheme has become effective on September 5, 201 7 on filing with the Registrar of Companies, Maharashtra at Mumbai with effect from April 1, 2017 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.663 crore and liabilities aggregating to Rs.590 crore as appearing in the books of Company related to real estate lending business at their respective book value as on Appointed Date. The net assets Demerged are as under:

ii The Assets and Liabilities of Rs.663 crore and Rs.590 crore, respectively, were transferred as on the Appointed Date and the excess of net assets transferred have been debited to capital reserve account.

iii As per the Scheme approved by the National Company Law Tribunal, Mumbai Bench with effect from the Appointed Date and upto and including the effective date, the Company shall be deemed to have been carrying on all business and activities relating to Real Estate Lending Business for and on account of and in trust of real estate lending business. All profits accruing to Real Estate Lending Business or losses arising or incurred by the Company in relation to the Real Estate Lending 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 real estate lending business.

iv During the period from the Appointed Date to the Effective Date, the Company received the inter division balance amounting to Rs.515 crore (average balance during the year Rs.251 crore) on which the Company has received interest of Rs.12 crore from Reliance Home Finance Limited.

b) 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 had considered and approved a Scheme of Arrangement (Demerger) between the Company and its wholly owned subsidiary viz. Reliance Commercial Finance 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, 201 7 upon filing with the Registrar of Companies, Maharashtra at Mumbai with effect from April 1, 201 6 i.e. Appointed Date. During the pervious 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 received interest of Rs.91 crore from Reliance Commercial Finance Limited. During the previous period, the Company has also received reimbursement of expenses amounting to Rs.2 crore and management fees amounting to Rs.3 crore.

10 Core Investment Company (‘CIC’)

(i) The Company, in terms of Para 5 of Chapter III of Master Direction - Core Investment Companies (Reserve Bank) Directions, 201 6, made an application to the Reserve Bank of India for registering itself as Systemically Important Core Investment Company (CIC-ND-SI). The Company is awaiting Certificate of Registration (‘CoR’) as CIC-ND-SI and continues to position itself as CIC-ND-SI and complies with the prudential norms applicable to CIC-ND-SI.

(ii) Compliance Ratios :

(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.2,982 crore (Previous year Rs.4,211 crore).

Notes:

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.

11 In the opinion of management, based on security value, borrowers resolution plans and / or letters of comfort 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.

12 Corporate Social Responsibility Expenditure

As per Section 135 of the Act, the Company is under obligation to incur Rs.13 crore (Previous year Rs.13 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.

13 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:

14 During the current & previous 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, 201 7 and there were no transaction during the period from November 8, 2016 to December 30, 2016.

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 has been made in the books of account and there are no foreseeable losses on such long-term contracts (including derivative contracts).

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