Reliance Nippon Life Asset Management Limited A Reliance Capital Company Reliance Centre, 7th Floor South Wing, Off Western Express Highway, Santacruz (East), Mumbai - 400 055. An Open Ended Index Exchange Traded Fund Abridged Annual Report 2017-2018 Reliance Mutual Fund (A Trust under the Indian Trust Act, 1882) SPONSOR Reliance Capital Limited (Incorporated under the Companies Act, 1956) Regd. Office : H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai - 400 710. Tel.: +9122 3303 1000, Fax: +9122 3303 6664 Nippon Life Insurance Company (Co-sponsor) Regd. Office: 3-5-12, Imabashi, Chuo-ku, Osaka 541-8501, Japan. TRUSTEE Reliance Capital Trustee Co. Limited [CIN - U65910MH1995PLC220528] (Incorporated under the Companies Act, 1956) Regd. Office : Reliance Centre, 7th Floor South Wing, Off Western Express Highway, Santacruz (East), Mumbai - 400 055. Tel No. - 022-33031000. Fax: 022-33037662 Website : www.reliancemutual.com DIRECTORS OF RELIANCE CAPITAL TRUSTEE CO. LIMITED Mr. A. N. Shanbhag Mr. P. P. Vora Mr. S. Santhanakrishnan CA Uttam Prakash Agarwal Mr. Arvind Mayaram* Mr. T.S.Vijayan @ (*June 28, 2017 till April 25, 2018) (@ Appointed on June 29, 2018) INVESTMENT MANAGER Reliance Nippon Life Asset Management Limited (RNAM) [CIN - L65910MH1995PLC220793] (Incorporated under the Companies Act, 1956) Regd. Office : Reliance Centre, 7th Floor South Wing, Off Western Express Highway, Santacruz (East), Mumbai - 400 055. Tel No. - 022-33031000. Fax: 022-33037662 Website : www.reliancemutual.com DIRECTORS OF RELIANCE NIPPON LIFE ASSET MANAGEMENT LIMITED Mr. S. C. Tripathi Mr. Kanu Doshi Ms. Ameeta Chatterjee Mr. Jai Anmol Anil Ambani# General Ved Prakash Malik (Retd.) (#Appointed on April 25, 2018) AUDITOR Haribhakti & Co. LLP Chartered Accountants 705, Leela Business Park, Andheri Kurla Road, Andheri (E), Mumbai 400 059, INDIA Mr. Sundeep Sikka Mr. Akira Shibata# Mr. Minoru Kimura# CUSTODIAN Deutsche Bank A.G. Deutsche Bank House, Hazarimal Somani Marg, Fort, Mumbai 400 001, INDIA Citibank NA First International Financial Centre, 11th Floor, Plot Nos. C 54 and C55, G Block, Bandra Kurla Complex, Bandra East, Mumbai 400051. REGISTRAR Karvy Computershare Private Limited Karvy Selenium Tower B Plot no 31 and 32, Gachibowli, Financial District, Nanakramguda Serilingampally Mandal Hyderabad 500032 Ph : 040-67162222, 33211000 INTERNAL AUDITOR for Financial Year 2017-18 Deloitte Haskins & Sells LLP Indiabulls Finance Centre, Tower 3, 27th-32nd Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai - 400 013, Maharashtra, India. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Trustee Report 1. Scheme Performance, Future Outlook and Operations of the Scheme Compounded Annualised Returns Name of the Scheme / Date of as on 31.03.2018 (in %) Benchmarks Inception Since 1 year 3 years 5 years Inception 28-Mar-14-0.81 4.96 NA 12.62 Nifty CPSE (TRI) -0.77 4.99 NA 9.11 Past Performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. The scheme dosen t offer any Plans / options. Returns less than 1 year are calculated on absolute basis and more than or equal one year are calculated on compounded annualised basis. TRI - Total Returns Index reflects the returns on the index arising from (a) constituent stock price movements and (b) dividend receipts from constituent index stocks, thereby showing a true picture of returns. In line with SEBI Circular no. SEBI/HO/IMD/DF3/CIR/P/2018/04 dated Jan 4, 2018, w.e.f. Feb 1, 2018 the performance of the Equity Scheme is Benchmarked to the Total Return Variant of the Index. This is a passively managed exchange traded fund, listed on NSE & BSE and invests in stocks of Nifty CPSE Index in the same proportion as the underlying Index. It provides an opportunity to investors for passively investing in a well-expanded portfolio of large CPSE companies, as approximately represented by Nifty CPSE Index. Future Outlook - The Indian Mutual Fund industry is one of the fastest growing industries in the financial services sector with 41 AMCs currently operating in the country. The industry quarterly AAUM has changed with an absolute growth rate of 26% over last year with Rs. 23,05,212 crore of quarterly average assets as on March 31, 2018. Your Company intends to aggressively pursue growth opportunities in the mutual fund industry both domestic and international and therefore be the most preferred investment choice for investors. Your Company expects that an emerging market like India would experience a sustained higher growth rate. Given the country s high household savings rate along with the current low levels of investments by retail investors where only less than 4% of the household savings is channeled into capital markets, your Company believes that the Mutual Fund Industry is still in a nascent stage and has a huge opportunity for growth and expansion. Being one of the large players in the Industry, your Company will continue investing in growing the market size, achieving product innovation, educating the investors, increasing the distribution reach, enhancing customer service infrastructure with aggressive expansion strategies. 2. Brief background of Sponsors, Trust, Trustee Co. and AMC. a. Reliance Capital Limited (RCL) [Sponsor] RCL is sponsor & settler of Reliance Mutual Fund (RMF). RCL is registered as Non-Banking Financial Company (NBFC) as defined under Section 45- IA of the Reserve Bank of India Act, 1934 and has made an application to Reserve Bank of India for registering itself as Systemically Important Core Investment Company (CIC-ND-SI). RCL has interests in asset management and mutual funds, life, health and general insurance, commercial and home finance, stock broking, wealth management services, distribution of financial products, asset reconstruction, proprietary investments and other activities in financial services. b. Nippon Life Insurance Company (NLI) [Co-Sponsor] NLI is co-sponsor of RMF. NLI is Japan s leading private life insurer and offers a wide range of financial products, including individual and group life and annuity policies through various distribution channels, mainly using face-to-face sales channels for its traditional insurance products. It primarily operates in Japan, North America, Europe and Asia, and is headquartered in Osaka, Japan. NLI conducts asset management operations in Asia, through its subsidiary Nissay Asset Management Corporation ( Nissay ), which manages assets globally. As sponsors, RCL and NLI are responsible for discharging its functions and responsibilities towards RMF in accordance with the Securities and Exchange Board of India (Mutual Fund) Regulations, 1996. c. Reliance Mutual Fund [Trust] Reliance Mutual Fund (RMF or Trust) was initially set up as a Trust in accordance with the provisions of the Indian Trust Act, 1882 by RCL acting as its Settlor/ Sponsor. The Trust came into being vide Trust Deed dated April 25, 1995 (the Original Trust Deed ), which was duly registered under the Indian Registration Act, 1908. The Original Trust Deed has also been subsequently amended from time to time. In order to consolidate all amendments to the Original Trust Deed, an Amended and Restated Trust Deed was executed on March 15, 2011 (the Amended and Restated Trust Deed ), which was then duly registered under the Indian Registration Act, 1908. The Amended and Restated Trust Deed was further amended vide the Amendment to Trust Deed dated July 14, 2016, which was also duly registered under the Indian Registration Act, 1908 whereby Nippon Life Insurance Company has been added as Co-sponsor to RMF. d. Reliance Capital Trustee Co Limited [Trustee] Reliance Capital Trustee Co. Limited (RCTC) is an unlisted Public Limited Company incorporated under the Companies Act, 1956 on March 01, 1995, having its registered and Corporate Office at Reliance Centre, 7th Floor (South Wing), Off Western Express Highway, Santacruz (East), Mumbai - 400055. RCTC is a subsidiary of RCL. RCTC has been appointed as the Trustee of RMF vide Trust Deed dated April 25, 1995 and which Trust Deed has been amended from time to time. As Trustee to RMF, RCTC is discharging its duties and carrying out its responsibilities in terms of the applicable SEBI Regulations and as more particularly provided in the Trust Deed. e. Reliance Nippon Life Asset Management Limited [Asset Manager] Reliance Nippon Life Asset Management Limited (RNAM) is a listed Public Limited Company incorporated under the Companies Act, 1956 on February 24, 1995, having its registered and Corporate Office at Reliance Centre, 7th Floor (South Wing), Off Western Express Highway, Santacruz (East), Mumbai - 400055. RNAM is a subsidiary of RCL. RNAM has been appointed as an Asset Manager of Reliance Mutual Fund by the Trustee i.e. RCTC, vide Investment Management Agreement (IMA) dated May 12, 1995. The IMA has been executed between RCTC and RNAM and has since been amended on August 12, 1997, on January 20, 2004 and then on February 17, 2011. 3. Investment Objective of the Scheme The investment objective of the Scheme is to provide returns that, before expenses, closely correspond to the total returns of the Securities as represented by the Nifty CPSE Index, by investing in the Securities which are constituents of the Nifty CPSE Index in the same proportion as in the Index. However the performance of the Scheme may differ from that of underlying index due to tracking error. There can be no assurance or guarantee that the investment objective of the Scheme would be achieved. 4. Significant Accounting Policies: Accounting policies followed by Reliance Mutual Fund are in accordance with Securities Exchange Board of India (Mutual Funds) Regulations, 1996. 5. Unclaimed Dividend & Redemptions: Unclaimed Dividend Unclaimed Redemption No. of investors Amount (Rs) No. of investors Amount (Rs.) 192 1,824 6. Details of Investor Complaints: The Statement on Status of Redressal of Complaints received against Reliance Mutual Fund during the financial year 2017-18 is annexed as Annexure A and forms part of the Trustee Report. 7. Role of Mutual Funds In Corporate Governance Of Public Listed Companies: In terms of the circular no. SEBI/ IMD/ CIR No. 18/198647/ 2010 dated March 15, 2010, circular no. CIR/IMD/DF/05/2014 dated March 24, 2014 & SEBI/ HO/IMD/DF2/CIR/P/2016/68 dated August 10, 2016 issued by SEBI, Reliance Nippon Life Asset Management Limited ( RNAM ) has framed a Voting Policy and relevant procedures ( Voting Policy ) for the purposes of exercising the voting rights in respect of shares held by the Schemes of Reliance Mutual Fund. This Voting Policy has also been adopted & approved by the Board of Directors of Reliance Capital Trustee Co. Limited. As required in terms of the regulatory requirements, RNAM has voted on all material resolutions, keeping in view the interests of the investors. For the financial year 2017-18, the Voting Policy along with the details of proxy votes exercised at the meetings of the investee companies and the required certificate from the Scrutinizer have been appropriately disclosed on RNAM s website i.e. www.reliancemutual.com. In case any investor desires to have a physical copy of the Voting Policy and other relevant details, then the same will be available at request at the corporate office of the Company at Reliance Centre, 7th Floor South Wing, Off Western Express Highway, Santacruz (East), Mumbai - 400 055. Tel No. - 022-33031000. 8. Statutory Information: a. The Sponsors are not responsible or liable for any loss resulting from the operation of the Schemes of the Fund beyond their initial contribution (to the extent contributed) of Rs. 1 Lakh for setting up the Fund, and such other accretions / additions to the same. b. The price and redemption value of the units, and income from them, can go up as well as down with fluctuations in the market value of its underlying investments. c. Full Annual Report shall be disclosed on the website (www.reliancemutual. com) and shall be available for inspection at the Head Office of the mutual fund. Present and prospective unit holder can obtain copy of the trust deed, the full Annual Report of the Fund / AMC at a price. d. The copy of abridged summary of the Annual Report can be obtained by unitholder on request made through any mode without any cost. For and on behalf of Reliance Capital Trustee Co. Limited Place: Mumbai A.N. Shanbhag P.P. Vora Date: June 29, 2018 Director Director Abridged Annual Report 2017-2018 2
Annexure to Trustee Report Redressal of Complaints received against Mutual Funds (MFs) during 2017-2018 Name of the Mutual Fund : Reliance Mutual Fund Total Number of Folios : 8172431 (as on 31 st March, 2018) Annexure - A Complaint code Type of complaint# (a) No. of complaints pending at the beginning of the year (b) No of complaints received during the year Resolved Action on (a) and (b) Non Actionable* Within 30 days 30-60 days 60-180 days Beyond 180 days 0-3 months 3-6 months 6-9 months I A Non receipt of Dividend on Units 0 3 3 0 0 0 0 0 0 0 0 I B Interest on delayed payment of 0 0 0 0 0 0 0 0 0 0 0 Dividend I C Non receipt of Redemption 0 59 51 5 0 0 0 3 0 0 0 Proceeds I D Interest on delayed payment of 0 18 17 1 0 0 0 0 0 0 0 Redemption II A Non receipt of Statement of 0 4 3 1 0 0 0 0 0 0 0 Account/Unit Certificate II B Discrepancy in Statement of 0 184 183 0 0 0 0 1 0 0 0 Account II C Data corrections in Investor 0 0 0 0 0 0 0 0 0 0 0 details II D Non receipt of Annual Report/ 0 0 0 0 0 0 0 0 0 0 0 Abridged Summary III A Wrong switch between Schemes 0 49 49 0 0 0 0 0 0 0 0 III B Unauthorized switch between 0 0 0 0 0 0 0 0 0 0 0 Schemes III C Deviation from Scheme attributes 0 0 0 0 0 0 0 0 0 0 0 III D Wrong or excess charges/load 0 1 1 0 0 0 0 0 0 0 0 III E Non updation of changes viz. 1 50 49 0 0 0 0 1 0 0 1 address, PAN, bank details, nomination, etc IV Others Others** 0 91 86 5 0 0 0 0 0 0 0 V SIP Related 1 358 343 10 3 1 0 2 0 0 0 VI Purchase related 8 327 321 3 1 0 0 9 1 0 0 VII Online Transaction Related 1 29 29 1 0 0 0 0 0 0 0 Total 11 1173 1135 26 4 1 0 16 1 0 1 Particulars Count Total Complaints Received During 2017-2018 1173 Total Number of Folios 8172431 Percentage Complaints Against Folios 1.435% # including against its authorized persons / distributors / employees etc * Non actionable means the Compliant that are incomplete / outside the scope of the Mutual Fund ** If others include a type of complaint which is more than 10% of overall complaint, provide that reason separately Classification of Complaints TYPE OF COMPLAINT TYPE I Delay/Non-receipt of money TYPE III Service related I A Dividend on Units III A Wrong switch between Schemes I B Interest on delayed payment of Dividend III B Unauthorized switch between Schemes I C Redemption Proceeds III C Deviation from Scheme attributes I D Interest on delayed payment of Redemption III D Wrong or excess charges/load TYPE II Statement of Account/Unit Certificate/Annual Report III E Non updation of changes viz. address, PAN, bank details, nomination, etc II A Non receipt of Statement of Account/Unit Certificate TYPE IV Others II B Discrepancy in Statement of Account II C Data corrections in Investor details II D Non receipt of Annual Report/Abridged Summary Pending 9-12 months Abridged Annual Report 2017-2018 3
INDEPENDENT AUDITORS REPORT To The Trustees of Reliance Mutual Fund Report on the Financial Statements We have audited the accompanying financial statements of the ( the Scheme ), which comprises the Balance Sheet as at March 31, 2018, the Revenue Account, the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Financial Statements The Managements of Reliance Capital Trustee Co. Limited and Reliance Nippon Life Asset Management Limited (the Investment Manager ) are responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flow of the Scheme in accordance with the accounting principles generally accepted in India, including accounting policies and standards as specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto ( the Regulations ). This responsibility also includes the maintenance of adequate accounting records for safeguarding the assets of the Scheme and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial controls and ensuring their operating effectiveness and the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Schemes internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements. Opinion In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Regulations and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Scheme as at March 31, 2018, its Deficit and its cash flow for the year then ended. Report on Other Legal and Regulatory Requirements As required under the Regulations, we report that: 1. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit; 2. The Balance Sheet, Revenue Account and Cash Flow Statement dealt with by this Report are in agreement with the books of account of the Scheme; 3. In our opinion, the Balance Sheet, Revenue Account and Cash Flow Statement dealt with by this report have been prepared in accordance with the accounting policies and standards as specified in the Ninth Schedule of the Regulations. 4. The methods used to value non traded securities, as determined by Reliance Nippon Life Asset Management Limited and as approved by the Trustee of Reliance Mutual Fund are in good faith and in accordance with the guidelines for valuation of securities for mutual funds as mentioned in the Eighth Schedule of the Regulations issued by the Securities and Exchange Board of India, and are fair and reasonable. For HARIBHAKTI & CO. LLP Chartered Accountants ICAI Firm Registration No.103523W/W100048 PURUSHOTTAM NYATI (Partner) Membership No. 118970 Place: Mumbai Date: 29 th June, 2018 Abridged Annual Report 2017-2018 4
Abridged Balance Sheet as at March 31, 2018 LIABILITIES As at 31.03.2018 Rupees in Lakhs As at 31.03.2017 1 Unit Capital 166,861.23 273,151.23 2 Reserves & Surplus 301,709.85 500,101.78 2.1 Unit Premium Reserves 134,206.51 257,861.46 2.2 Unrealised Appreciation Reserve 15,728.05 65,945.08 2.3 Other Reserves 151,775.29 176,295.24 3 Loans & Borrowings 4 Current Liabilities & Provisions 6,571.53 49,530.74 4.1 Provision for doubtful Income/ Deposits 4.2 Other Current Liabilities & Provisions 6,571.53 49,530.74 TOTAL 475,142.61 822,783.75 ASSETS 1 Investments 1.1 Listed Securities: 467,809.69 766,639.63 1.1.1 Equity Shares 467,809.69 766,639.63 1.1.2 Preference Shares 1.1.3 Equity Linked Debentures 1.1.4 Other Debentures & Bonds 1.1.5 Securitised Debt securities 1.1.6 Derivatives 1.1.7 Others (ETF) 1.2 Securities Awaited Listing: 1.2.1 Equity Shares 1.2.2 Preference Shares 1.2.3 Equity Linked Debentures 1.2.4 Other Debentures & Bonds 1.2.5 Securitised Debt securities 1.3 Unlisted Securities 1.3.1 Equity Shares 1.3.2 Preference Shares 1.3.3 Equity Linked Debentures 1.3.4 Other Debentures & Bonds 1.3.5 Securitised Debt securities 1.4 Government Securities 1.5 Treasury Bills 1.6 Commercial Paper 1.7 Certificate of Deposits 1.8 Bill Rediscounting 1.9 Units of Domestic Mutual Fund 1.10 Foreign Securities Total Investments 467,809.69 766,639.63 2 Deposits 3 Other Current Assets 7,332.92 56,144.12 3.1 Cash & Bank Balance 2.61 4,187.39 3.2 CBLO/ Reverse Repo Lending 5,843.93 4,903.64 3.3 Others 1,486.38 47,053.09 4 Deferred Revenue Expenditure (to the extent not written off) TOTAL 475,142.61 822,783.75 Notes to Accounts - Annexure I Abridged Revenue Account for the Year Ended March 31, 2018 1 INCOME Year ended 31.03.2018 Rupees in Lakhs Year ended 31.03.2017 1.1 Dividend 20,468.19 26,176.17 1.2 Interest 125.78 2,977.75 1.3 Realised Gain / (Loss) on Foreign Exchange Transactions 1.4 Realised Gains / (Losses) on Interscheme sale of investments 1.5 Realised Gains / (Losses) on External sale / redemption of investments 1.6 Realised Gains / (Losses) on Derivative Transactions 30,020.79 49,905.70 1.7 Other Income 0.01 0.38 2 EXPENSES ( A ) 50,614.77 79,060.00 2.1 Management fees 254.82 585.86 2.2 Service Tax /GST on Management Fees 43.55 87.26 2.3 Transfer agents fees and expenses - 34.17 2.4 Custodian fees - 5.77 2.5 Trusteeship fees - 12.01 2.6 Commission to Agents 2.7 Marketing & Distribution expenses - 5.02 2.8 Audit fees - 2.22 2.9 Investor education expense 113.26 60.56 2.10 Other operating expenses - 19.24 2.11 Deferred Revenue Expenses written off 3 NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD (A -B = C) 4 Change in Unrealised Depreciation in value of investments (D) 5 NET GAINS / (LOSSES) FOR THE YEAR / PERIOD (E = C-D) 6 Change in unrealised appreciation in the value of investments (F) 7 NET SURPLUS / (DEFICIT) FOR THE YEAR / PERIOD (E + F = G) 7.1 Add: Balance transfer from Unrealised Appreciation Reserve 7.2 Less: Balance transfer to Unrealised Appreciation Reserve ( B ) 411.63 812.11 50,203.14 78,247.89 - (14,961.01) 50,203.14 93,208.90 (50,217.02) 65,945.08 (13.88) 159,153.98 65,945.08-15,728.05 65,945.08 7.3 Add / (Less): Equalisation (74,723.10) (9,426.00) 7.4 Net Gain/(Loss) Brought Forward From Previous Year 176,295.24 92,512.34 8 Total 151,775.29 176,295.24 9 Dividend appropriation 9.1 Income Distributed during the year / period 9.2 Tax on income distributed during the year / period 10 Retained Surplus / (Deficit) carried forward to Balance sheet Notes to Accounts - Annexure I 151,775.29 176,295.24 Abridged Annual Report 2017-2018 5
Notes to Accounts - Annexure I to the Abridged Balance Sheet and Revenue Account for the Year Ended March 31, 2018. 1 Investments:- 1.1. All the investments are held in the name of the Scheme, (except for Government Securities and Treasury Bills which are held in the name of the fund) as per clause 7 of the Seventh Schedule under Regulation 44(1) of SEBI (Mutual Funds) Regulations, 1996. 1.2. Open Position of derivatives (outstanding market value & % to Net Assets as of the Year end): NIL (as at March 31, 2017 was Nil) For details on derivative positions please refer to Annexure III. 1.3. Investments in Associates and Group Companies : NIL (as at March 31, 2017 was Nil) 1.4. Detail of Securities Borrowed and / or Lent by the scheme. Security Name Type Quantity As on 31st March 2018 As on 31st March 2017 Coal India Limited Security Lending 300,000 32,830 Indian Oil Corporation Limited Security Lending - 205,262 Power Finance Corporation Limited Security Lending - 28,931 Rural Electrification Corporation Limited Security Lending - 100,000 GAIL (India) Limited Security Lending - 6,782 Bharat Electronics Limited Security Lending 32,450-1.5 Non Performing Assets as at March 31, 2018 is Nil (as at March 31, 2017 was Nil). 1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial Year and percentage to net assets. Scheme Name 2017-2018 2016-2017 Aggregate Unrealised Gain / (Loss) (Rs. In lakhs) % of Net Assets Aggregate Unrealised Gain / (Loss) (Rs. In lakhs) % of Net Assets 15,728.05 3.36% 65,945.08 8.53% 1.7. Aggregate Value of Purchase and Sale with Percentage to average assets. Scheme Name Amount (Rs in lakhs.) 2017-2018 2016-2017 Purchases Sales Purchases Sales % to average Net Assets Amount (Rs in lakhs.) % to average Net Assets Amount (Rs in lakhs.) % to average Net Assets Amount (Rs in lakhs.) % to average Net Assets 44,866.48 7.92% 323,500.19 57.12% 910,687.69 300.78% 466,171.06 153.97% 1.8. Non-Traded securities in the portfolio : NIL (as at March 31, 2017 was Nil) 2 Details of Transaction with Associates under regulation 25(8). Brokerage paid to associates/related parties/group companies of Sponsor/AMC : NIL (as at March 31, 2017 was Nil) Commission Paid to associates/related parties/group companies of Sponsor/AMC :NIL (as at March 31, 2017 was Nil) 3 Large Holdings in the Scheme (i.e. in excess of 25% of the net assets). Scheme Name As on 31st March 2018 As on 31st March 2017 4 Unit Capital movement during the year ended / period ended : Refer ANNEXURE II. 5 Expenses other than management fee is inclusive of service tax /GST where applicable. No of investor % of total holding No of investor % of total holding 1 31.97% 6 Other Income : Other Income includes exit load income (net of Service Tax /GST) and miscellaneous income (if any). 7 Details of Credit Default Swap as follows- NIL 1. No. of transactions during the year - NIL (Previous Year- NIL) 2. Amount of protection bought during the year - NIL (Previous Year- NIL) 3. No. of transactions where credit event payment was received during the year: a. Pertaining to current years transactions. - NIL (Previous Year- NIL) b. Pertaining to previous year (s) transactions- NIL (Previous Year- NIL) 4. Outstanding transactions as on year end: a. No. of transactions - NIL (Previous Year- NIL) Abridged Annual Report 2017-2018 6
b. Amount of protection - NIL (Previous Year- NIL) 5. Net income/ expense in respect of CDS transactions during year-to-date: a. Premium Paid - NIL (Previous Year- NIL) b. Credit event payments received (net of value of derivable obligations)- NIL (Previous Year- NIL) 8 Prior Year Comparatives: The figures of the previous period have been regrouped / rearranged, wherever applicable, to conform to current year s presentation. 9 Contingent Liability as at March 31, 2018 is Nil (as at March 31, 2017 was Nil). Abridged Annual Report 2017-2018 7
Key Statistics for the year ended March 31, 2018 1. NAV per unit (Rs.): Year ended 31.03.2018 Year ended 31.03.2017 Open 28.3086 19.7108 High 31.4011 28.4630 Low 25.9945 19.0997 End 28.0815 28.3086 2. Closing Assets Under Management (Rs. in Lakhs) End 468,571.09 773,253.02 Average (AAuM) 566,313.25 302,776.66 3. Gross income as % of AAuM 1 8.94% 26.11% 4. Expense Ratio: a. Total Expense as % of AAuM 0.07% 0.27% b. Management Fee as % of AAuM 0.04% 0.19% 5. Net Income as a percentage of AAuM 2 8.86% 25.84% 6. Portfolio turnover ratio 3 0.08 1.54 7. Total Dividend per unit distributed during the year / period (plan wise) 8. Returns: a. Last One Year Scheme -0.81% 43.62% Benchmark -0.77% 37.66% Benchmark Name b. Since Inception Nifty CPSE Scheme 12.62% 17.43% Benchmark 9.11% 8.54% Benchmark Name Nifty CPSE 1. Gross income = amount against (A) in the Revenue account i.e. Income. 2. Net income = amount against (C) in the Revenue account i.e. NET REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD 3. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year/period. 4. AAuM=Average daily net assets. 5. In line with SEBI Circular no. SEBI/HO/IMD/DF3/CIR/P/2018/04 dated Jan 4, 2018, w.e.f. Feb 1, 2018 the performance of the benchmark for the current year are calculated as per Total Return Variant of the Index. For and on behalf of Reliance Nippon Life Asset Management Limited Kanu Doshi Director Sundeep Sikka Executive Director & Chief Executive Officer Payal Wadhwa Kaipunjal Senior Fund Manager Place : Mumbai Date : June 29, 2018 For and on behalf of Reliance Capital Trustee Co. Limited A.N. Shanbhag Director P.P. Vora Director Manish Gunwani CIO-Equity Investments Abridged Annual Report 2017-2018 8
ANNEXURE II Unit Capital movement during the year ended 31st March 2018 Scheme/Plan Name Unit Capital (Opening Balance) Add : Subscription during Initial Offer period /FFO Add : Subscription during the year / period Less : Redemption during the year / period Unit Capital (Closing Balance) Units Amount (Rs.) Units Amount (Rs.) Units Amount (Rs.) Units Amount (Rs.) Units Amount (Rs.) (Face Value of Rs. 10 Each) 2017-2018 2,731,512,272 27,315,122,720 48,400,000 484,000,000 1,111,300,000 11,113,000,000 1,668,612,272 16,686,122,720 Total 2,731,512,272 27,315,122,720 48,400,000 484,000,000 1,111,300,000 11,113,000,000 1,668,612,272 16,686,122,720 2016-2017 972,420,323 9,724,203,230 3,310,616,197 33,106,161,970 30,700,000 307,000,000 1,582,224,248 15,822,242,480 2,731,512,272 27,315,122,720 Total 972,420,323 9,724,203,230 3,310,616,197 33,106,161,970 30,700,000 307,000,000 1,582,224,248 15,822,242,480 2,731,512,272 27,315,122,720 Abridged Annual Report 2017-2018 9
ANNEXURE III Derivatives Disclosure A. Hedging Positions through Futures as on March 31, 2018: NIL. Total %age of existing assets hedged through futures : NIL. For the Year ended March 31, 2018 following details specified for hedging transactions through futures which have been squared off/expired : NIL. B. Other than Hedging Position through Futures as on March 31, 2018 : NIL. Total exposure due to futures (non hedging positions) as a %age of net assets : NIL. For the Year ended March 31, 2018 following details specified for non-hedging transactions through futures which have been squared off/expired : NIL. C. Hedging Position through Put Options as on March 31, 2018 : NIL. Total % age of existing assets hedged through Put Options : NIL. For the Year ended March 31, 2018 following details specified for hedging transactions through options which have already been exercised/expired : NIL. D. Other than Hedging Position through Options as on March 31, 2018 : NIL. Total Exposure through options as a %age of net assets : NIL. For the Year ended March 31, 2018 following details specified with regard to non-hedging transactions through options which have already been exercised/ expired : NIL. E. Hedging Positions through swaps as on March 31, 2018 : NIL. Note on derivatives: The disclosure with respect to Investments in derivatives have been made on the basis of SEBI Circular on Abridged Scheme-wise Annual Report Format and periodic disclosures to the unitholders vide reference IMD/CIR No.8/132968/2008 dated July 24, 2008 and Review of norms for investment and disclosure by Mutual Funds in derivatives vide reference Cir/ IMD/ DF/ 11/ 2010 dated August 18, 2010. Abridged Annual Report 2017-2018 10
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