Reliance Nippon Life Asset Management Limited (formerly Reliance Capital Asset Management Limited) A Reliance Capital Company Reliance Centre, 7th Floor South Wing, Off Western Express Highway, Santacruz (East), Mumbai - 400 055. Abridged Annual Report 2016-2017 An open-ended Equity Growth Scheme 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, Koparkhairane, Navi Mumbai - 400 710. Tel.: +9122 3032 7000, Fax: +9122 3032 7202 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* (*Appointed on June 28, 2017) INVESTMENT MANAGER Reliance Nippon Life Asset Management Limited (RNAM) (formerly Reliance Capital Asset Management Limited) [CIN - U65910MH1995PLC220793] (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 (formerly Reliance Capital Asset Management Limited) Mr. V. N. Kaul* Mr. S. C. Tripathi Mr. Kanu Doshi Ms. Ameeta Chatterjee Mr. Kazuhide Toda Mr. Takayuki Murai$ Mr. Sundeep Sikka (*Appointed on June 7, 2017) ($Appointed on April 22, 2017) AUDITOR Haribhakti & Co. LLP Chartered Accountants 705, Leela Business Park, Andheri Kurla Road, Andheri (E), Mumbai 400 059, INDIA General Ved Prakash Malik (Retd.) 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 2016-17 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 Name of the Scheme / Benchmarks - Direct - Growth Date of Inception Compounded Annualised Returns as on 31.03.2017 (in %) Since 1 year 3 years 5 years Inception 1-Jan-13 34.00 24.82 NA 17.60 S&P BSE 100 21.17 12.27 NA 11.29 - Growth 8-Oct-95 32.97 23.90 17.41 23.71 (Regular Plan) S&P BSE 100 21.17 12.27 12.29 11.30 Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment All the returns are of Growth Plan - Growth Option. Returns less than 1 year are on absolute basis and more than or equal one year are on compounded annualised basis. Calculation assume that all payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV. The Fund was launched on October 8, 1995, and focuses on companies in the mid-cap segment, while having some exposure to large-cap stocks. The Fund has a well established track record of over 20 years and has outperformed the benchmark consistently for all the time periods under consideration since inception. 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 16% over last year with Rs. 18,29,534 crore of quarterly average assets as on March 31, 2017. 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 3% 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 a RBI registered Non-Banking Finance Company (NBFC) and has its business interests in Asset Management, Life Insurance, General Insurance, Private Equity, Proprietary Investments, Stock Broking and other activities in the financial services sector. 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) has been 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. 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, 7 th 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 (formerly Reliance Capital Asset Management Limited) [Asset Manager] Reliance Nippon Life Asset Management Limited (RNAM) is an unlisted 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 primary investment objective of the scheme is to achieve long term growth of capital by investing in equity and equity related securities through a research based investment approach. However, there can be no assurance that the investment objective of the Scheme will be realized, as actual market movements may be at variance with anticipated trends. 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.) 9,459 26,198,042 1,484 33,426,947 6. Details of Investor Complaints: The Statement on Status of Redressal of Complaints received against Reliance Mutual Fund during the financial year 2016-17 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 March15, 2010 & circular no. CIR/IMD/DF/05/2014 dated March 24, 2014 issued by SEBI, Reliance Nippon Life Asset Management Limited ( RNAM ) (formerly Reliance Capital Asset Management Limited) 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 2016-17, the Voting Policy along with the details of proxy votes exercised at the meetings of the investee companies and the required certificate from the Auditor 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. For and on behalf of Reliance Capital Trustee Co. Limited Place: Mumbai A.N. Shanbhag P.P. Vora Date: June 28, 2017 Director Director Abridged Annual Report 2016-2017 2
Annexure to Trustee Report Redressal of Complaints received during 2016-2017 Name of the Mutual Fund : Reliance Mutual Fund Total Number of Folios : 6846156 (as on 31 st March, 2017) 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 Within 30 days 30-60 days Resolved 60-180 days Action on (a) and (b) Beyond 180 days Non Actionable* I A Non receipt of Dividend on Units 1 10 10 1 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 1 41 40 1 1 0 0 0 0 0 0 Proceeds I D Interest on delayed payment of 0 5 5 0 0 0 0 0 0 0 0 Redemption II A Non receipt of Statement of 0 3 3 0 0 0 0 0 0 0 0 Account/Unit Certificate II B Discrepancy in Statement of 0 148 148 0 0 0 0 0 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 1 23 22 0 1 1 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 0 0 0 0 0 0 0 0 0 0 III E Non updation of changes viz. 1 57 57 0 0 0 0 0 0 1 0 address, PAN, bank details, nomination, etc IV Others Others** 5 81 83 2 0 0 0 1 0 0 0 V SIP Related 9 711 666 47 6 0 0 1 0 0 0 VI Purchase related 1 180 168 3 3 0 0 7 0 0 0 VII Online Transaction Related 2 50 48 3 0 0 0 1 0 0 0 Total 21 1309 1250 57 11 1 0 10 0 1 0 Particulars Count Total Complaints Received During 2016-2017 1309 Total Number of Folios 6846156 Percentage Complaints Against Folios 0.019% ** If others include a type of complaint which is more than 10% of overall complaint, provide that reason separately. # including against its authorized persons/ distributors/ employees. etc. *Non actionable means the complaint that are incomplete / outside the scope of the mutual fund. 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 0-3 months 3-6 months Pending 6-9 months 9-12 months II B II C Discrepancy in Statement of Account Data corrections in Investor details II D Non receipt of Annual Report/Abridged Summary Abridged Annual Report 2016-2017 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 Reliance Growth Fund ( the Scheme ), which comprises the Balance Sheet as at March 31, 2017, 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 (Formerly Reliance Capital 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 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 control that were operating effectively for ensuring 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 control 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 Scheme 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, 2017, its Surplus 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 (Formerly Reliance Capital 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: 28 th June, 2017 Abridged Annual Report 2016-2017 4
Abridged Balance Sheet as at March 31, 2017 LIABILITIES Rupees in Lakhs RELIANCE GROWTH FUND As At 31.03.2017 As At 31.03.2016 1 Unit Capital 27,614.16 28,701.23 2 Reserves and Surplus 584,437.45 460,485.65 2.1 Unit Premium Reserves 24,907.33 32,756.29 2.2 Unrealised Appreciation Reserve 220,415.46 127,157.92 2.3 Other Reserves 339,114.66 300,571.44 3 Loans & Borrowings - - 4 Current Liabilities & Provisions 3,729.73 3,820.53 4.1 Provision for doubtful Income/ Deposits - - 4.2 Other Current Liabilities & Provisions 3,729.73 3,820.53 ASSETS 1 Investments TOTAL 615,781.34 493,007.41 1.1 Listed Securities: 589,886.74 448,297.96 1.1.1 Equity Shares 589,886.74 448,297.96 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 - - 1.2 Securities Awaited Listing: - 13,195.67 1.2.1 Equity Shares - 13,195.67 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 4,996.31 21,682.45 1.7 Certificate of Deposits - - 1.8 Bill Rediscounting - - 1.9 Units of Domestic Mutual Fund 8,502.56-1.10 Foreign Securities - - TOTAL INVESTMENTS 603,385.61 483,176.08 2 Deposits 5.86 5.82 3 Other Current Assets 12,389.87 9,825.51 3.1 Cash & Bank Balance 5,487.25 2,861.40 3.2 CBLO/ Reverse Repo Lending 1,405.33 275.76 3.3 Others 5,497.29 6,688.35 4 Deferred Revenue Expenditure (to the extent not written off) Notes to Accounts - Annexure I - - TOTAL 615,781.34 493,007.41 Abridged Revenue Account for the Year Ended March 31, 2017 1 INCOME Rupees in Lakhs RELIANCE GROWTH FUND Year Ended 31.03.2017 Year Ended 31.03.2016 1.1 Dividend 5,383.86 7,827.60 1.2 Interest 1,644.39 1,294.86 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 - - (1.14) 4.82 67,339.45 97,264.26 1,876.75 1,465.41 1.7 Other Income 121.39 181.74 2 EXPENSES (A) 76,364.70 108,038.69 2.1 Management fees 7,478.52 7,414.05 2.2 Service tax on Management fees 1,116.50 1,029.65 2.3 Transfer agents fees and expenses - - 2.4 Custodian fees - - 2.5 Trusteeship fees 1.95 2.16 2.6 Commission to Agents 3,667.98 3,422.28 2.7 Marketing & Distribution expenses 11.48 14.42 2.8 Audit fees 2.50 2.82 2.9 Investor education expense 111.01 107.26 2.10 Other operating expenses 1.48 2.46 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) 12,391.42 11,995.10 63,973.28 96,043.59 (11.13) - 63,962.15 96,043.59 93,257.54 (145,419.34) 157,219.69 (49,375.75) 127,157.92 272,577.26 220,415.46 127,157.92 7.3 Add / (Less): Equalisation (10,118.14) (951.36) 7.4 Net Gain/(Loss) Brought Forward From Previous Year 300,571.44 218,723.51 8 Total 354,415.45 313,815.74 9 Dividend appropriation 15,300.79 13,244.30 9.1 Income Distributed during the year / period 15,300.79 13,244.30 9.2 Tax on income distributed during the year / period 10 Retained Surplus / (Deficit) carried forward to Balance sheet Notes to Accounts - Annexure I - - 339,114.66 300,571.44 Abridged Annual Report 2016-2017 5
Notes to Accounts - Annexure I to the Abridged Balance Sheet and Revenue Account for the Year Ended March 31, 2017. 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): Scheme Name 2016-2017 2015-2016 Long Positions Short Positions Long Positions Short Positions Market Value % to net assets Market Value % to net assets Market Value % to net assets Market Value % to net assets RELIANCE GROWTH FUND Futures 2,289.08 0.37% - 2,963.45 0.61% - - Options - - - - - - - - For details on derivative positions please refer to Annexure III 1.3. Investments in Associates and Group Companies. Scheme Name Issuer Instrument 2016-2017 2015-2016 Amount Aggregate Investments by all Schemes Amount Aggregate Investments by all Schemes Reliance Communications Limited Equity 2,455.90 10,697.94 2,496.14 11,696.75 Reliance Power Limited Equity 360.75 40,087.09 370.50 34,302.88 1.4. Detail of Securities Borrowed and / or Lent by the scheme. Security Name Type Quantity As on 31st March 2017 As on 31st March 2016 Bharat Forge Limited Security Lending - 475,000 1.5. Non Performing Assets as at March 31, 2017 is Nil (as at March 31, 2016 was Nil) 1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial Year and percentage to net assets. Scheme Name 2016-2017 2015-2016 Aggregate Unrealised Gain / (Loss) % of Net Assets Aggregate Unrealised Gain / (Loss) % of Net Assets RELIANCE GROWTH FUND 220,404.33 36.01% 127,157.92 25.99% 1.7. Aggregate Value of Purchase and Sale with Percentage to average assets. Scheme Name 2016-2017 2015-2016 Amount (Rs in lakhs.) 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 RELIANCE GROWTH FUND 626,741.00 112.92% 679,116.22 122.35% 418,346.67 78.00% 434,801.62 81.07% 1.8. Non-Traded securities in the portfolio. Scheme Name 2016-2017 2015-2016 Amount % to Net Assets Amount % to Net Assets Equity 0.00 0.00% 0.00 0.00% Debt - - - - Money market 4,996.31 0.82% 21,682.45 4.43% 2 Details of Transaction with Associates under regulation 25(8). Brokerage paid to associates/related parties/group companies of Sponsor/AMC Name of associate/related parties/ group companies of Sponsor/AMC Reliance Securities Limited Nature of Association/Nature of relation Associate Period covered Value of transaction (in Rs. Cr. & % of total value of transaction of the fund ) Brokerage (Rs Cr & % of total brokerage paid by the fund) 2016-2017 80.07 1.53% 0.08 1.67% 2015-2016 49.33 1.19% 0.05 1.33% Abridged Annual Report 2016-2017 6
Commission Paid to associates/related parties/group companies of Sponsor/AMC Name of associate/related parties/ group companies of sponsor/amc Nature of Association/Nature of relation Period covered Business given (Rs. Cr. & % of total business received by the fund) Commission paid (Rs Cr& % of total commission paid by the fund) Quant Capital Advisors Private Limited Associate 2016-2017 - - 0.00 0.00% 2015-2016 - - 0.00 0.00% Reliance Money Solutions Private Ltd Associate 2016-2017 0.19 0.03% 0.00 0.01% 2015-2016 0.33 0.05% 0.00 0.01% Reliance Securities Limited Associate 2016-2017 0.83 0.11% 0.09 0.23% 2015-2016 0.75 0.10% 0.09 0.24% Reliance Wealth Management Limited Associate 2016-2017 - 0.00% 0.00 0.00% 2015-2016 0.13 0.02% 0.00 0.00% Reliance Webstore Limited Associate 2016-2017 0.05 0.01% - - Alpesh Dhirendra Kapadia Aradhana Syntex Pvt Ltd Future Wealth Girish Gurunath Joshi Rahul Gupta Ortem Securities Ltd Shilpa Kinjel Sheth Surangi Desai Employee's Relative is Agent of Reliance Mutual Fund Employee and his Relatives are Agents of Reliance Mutual Fund Employee's Relative is Agent of Reliance Mutual Fund Employee's Relative is Agent of Reliance Mutual Fund Employee's Relative is Agent of Reliance Mutual Fund Employee and his Relatives are Agents of Reliance Mutual Fund Employee's Relative is Agent of Reliance Mutual Fund Employee's Relative is Agent of Reliance Mutual Fund 2015-2016 0.05 0.01% - - 2016-2017 0.03 0.00% 0.00 0.01% 2015-2016 0.03 0.00% 0.00 0.01% 2016-2017 0.01 0.00% 0.00 0.00% 2015-2016 0.01 0.00% 0.00 0.00% 2016-2017 0.03 0.00% 0.00 0.00% 2015-2016 0.03 0.00% 0.00 0.00% 2016-2017 - - 0.00 0.00% 2015-2016 - - 0.00 0.00% 2016-2017 0.01 0.00% 0.00 0.00% 2015-2016 - - - - 2016-2017 - - - - 2015-2016 - - 0.00 0.00% 2016-2017 - - 0.00 0.00% 2015-2016 - - 0.00 0.00% 2016-2017 - - 0.00 0.00% 2015-2016 - - 0.00 0.00% 3 There are no Unit Holders holding over 25% of the Net Asset Value of the Scheme as at March 31, 2017 and as at March 31, 2016. 4 Unit Capital movement during the year ended / period ended : Refer ANNEXURE II. 5 Prior Year Comparatives: The figures of the previous period have been regrouped / rearranged, wherever applicable, to conform to current year s presentation. 6 Contingent Liability as at March 31, 2017 is Nil (as at March 31, 2016 was Nil). 7 Expenses other than management fee is inclusive of service tax where applicable. 8 Other Income : Other Income includes exit load income (net of Service Tax) and miscellaneous income (if any). 9 Details of Credit Default Swap as follows- 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) 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) Abridged Annual Report 2016-2017 7
Key Statistics for the year ended March 31, 2017 RELIANCE GROWTH FUND Year Ended March 31, 2017 Year Ended March 31, 2016 1. NAV per unit (Rs.): Growth Plan Open 728.4152 802.2024 High 968.5825 868.0161 Low 719.7403 666.1748 End 968.5825 728.4152 Bonus Plan Open 121.1777 133.4085 High 161.1279 144.3971 Low 119.7344 110.8246 End 161.1279 121.1777 Dividend Plan Open 53.8048 65.4242 High 69.4142 70.8194 Low 53.1641 52.5985 End 64.1687 53.8048 Institutional Dividend Plan Open 482.3605 586.1645 High 623.4528 634.9259 Low 476.6339 471.5230 End 579.4505 482.3605 Direct Plan-Growth Plan Open 744.3530 813.7906 High 997.4687 882.7641 Low 735.6464 680.0977 End 997.4687 744.3530 Direct Plan-Bonus Plan Open 123.6684 135.1967 High 165.7118 146.6504 Low 122.2220 112.9952 End 165.7118 123.6684 Direct Plan-Dividend Plan Open 63.6743 75.7598 High 82.7321 82.1750 Low 62.9300 62.2176 End 77.9437 63.6743 2. Closing Assets Under Management (Rs. in Lakhs) End 612,051.61 489,186.88 Average (AAuM) 555,040.44 536,324.64 3. Gross income as % of AAuM 1 13.76% 20.14% 4. Expense Ratio: a. Total Expense as % of AAuM (plan wise) Other than Direct Plan 2.26% 2.26% Institutional Plan# 2.06% 2.06% Direct Plan 1.50% 1.56% b. Management Fee as % of AAuM (plan wise) Other than Direct Plan 1.35% 1.38% Institutional Plan# 1.33% 1.37% Direct Plan 1.28% 1.35% RELIANCE GROWTH FUND Year Ended March 31, 2017 Year Ended March 31, 2016 5. Net Income as a percentage of AAuM 2 11.53% 17.91% 6. Portfolio turnover ratio 3 1.13 0.78 7. Total Dividend per unit distributed during the year (plan wise) Dividend Plan 7.00 5.50 Direct Plan-Dividend Plan 7.00 5.50 Institutional Dividend Plan 60.00 50.00 8. Returns: a. Last One Year Growth Plan (Regular Plan) 32.97% -9.17% Institutional Growth Plan NA NA Direct Plan-Growth Plan 34.00% -8.51% Benchmark (S&P BSE 100 ) 21.17% -8.94% b. Since Inception Growth Plan (Regular Plan) 23.71% 23.28% Institutional Growth Plan NA NA Direct Plan-Growth Plan 17.60% 12.97% Benchmark (S&P BSE 100 ) Growth Plan (Regular Plan) 11.30% 10.84% Institutional Growth Plan NA NA Direct Plan-Growth Plan 11.29% 8.41% # Kindly refer addendum no.63 dated 28/09/2012 for detail about descontinued plan. 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 For and on behalf of Reliance Nippon Life Asset Management Limited (Formerly Reliance Capital Asset Management Limited) Kanu Doshi Director Sundeep Sikka Executive Director & Chief Executive Officer Sunil Singhania Fund Manager / CIO-Equity Investments Place : Mumbai Date : June 28, 2017 For and on behalf of Reliance Capital Trustee Co. Limited A.N. Shanbhag Director P.P. Vora Director Abridged Annual Report 2016-2017 8
ANNEXURE II Unit Capital movement during the year ended 31st March 2017 Scheme/Plan Name Unit Capital (Opening Balance) Add : Subscription during Initial Offer period 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.) RELIANCE GROWTH FUND (Face Value of Rs. 10 Each) 2016-2017 Growth Plan 47,284,053 472,840,525 - - 5,302,310 53,023,104 7,456,984 74,569,842 45,129,379 451,293,788 Bonus Plan 2,145,374 21,453,745 - - - - 152,195 1,521,946 1,993,180 19,931,798 Dividend Plan 232,129,924 2,321,299,242 - - 28,859,477 288,594,770 41,289,718 412,897,184 219,699,683 2,196,996,827 Institutional Dividend Plan 29,322 293,218 - - - - - - 29,322 293,218 Direct Plan-Growth Plan 2,006,291 20,062,909 - - 1,262,515 12,625,147 732,781 7,327,815 2,536,024 25,360,242 Direct Plan-Bonus Plan 23,763 237,633 - - - - 6,066 60,656 17,698 176,977 Direct Plan-Dividend Plan 3,393,537 33,935,368 - - 6,184,294 61,842,940 2,841,565 28,415,653 6,736,265 67,362,655 Total 287,012,264 2,870,122,641 - - 41,608,596 416,085,961 52,479,310 524,793,097 276,141,550 2,761,415,505 2015-2016 Growth Plan 47,968,963 479,689,628 - - 5,619,837 56,198,375 6,304,748 63,047,477 47,284,053 472,840,525 Bonus Plan 2,522,146 25,221,460 - - 11,403 114,029 388,174 3,881,745 2,145,374 21,453,745 Dividend Plan 235,740,829 2,357,408,294 - - 40,128,573 401,285,732 43,739,478 437,394,784 232,129,924 2,321,299,242 Institutional Dividend Plan 29,322 293,218 - - - - - - 29,322 293,218 Direct Plan-Growth Plan 1,571,900 15,719,000 - - 737,694 7,376,944 303,303 3,033,034 2,006,291 20,062,909 Direct Plan-Bonus Plan 27,218 272,176 - - 7,285 72,851 10,739 107,395 23,763 237,633 Direct Plan-Dividend Plan 2,391,511 23,915,108 - - 2,908,264 29,082,644 1,906,238 19,062,384 3,393,537 33,935,368 Total 290,251,888 2,902,518,885 - - 49,413,058 494,130,575 52,652,682 526,526,819 287,012,264 2,870,122,641 Abridged Annual Report 2016-2017 9
Annexure III Derivatives Disclosure A. Hedging Positions through Futures as on March 31, 2017: NIL. Total %age of existing assets hedged through futures : NIL. For the Year ended March 31, 2017 following details specified for hedging transactions through futures which have been squared off/expired: Scheme Name Total Number of contract where future were bought Total Number of contract where future were sold Gross Notional Value of contracts where futures were bought ( In Rs.) Gross Notional Value of contracts where futures were sold ( In Rs.) Net Profit/Loss value on all contracts combined ( In Rs.) RELIANCE GROWTH FUND 1,119 1,119 726,683,128 717,958,696 (8,724,433) B. Other than Hedging Position through Futures as on March 31, 2017 : Scheme Name Underlying Long / Short Futures Price when purchased ( In Rs.) Current price of the contract ( In Rs.) Margin maintained (In Rs. Lakhs) RELIANCE GROWTH FUND Canara Bank Long 303.56 303.15 117.25 RELIANCE GROWTH FUND HDFC Bank Limited Long 1,450.89 1,440.60 169.96 Total exposure due to futures (non hedging positions) as a %age of net assets : Scheme Name % RELIANCE GROWTH FUND 0.37% For the Year ended March 31, 2017 following details specified for non-hedging transactions through futures which have been squared off/expired: Scheme Name Total Number of contract where future were bought Total Number of contract where future were sold Gross Notional Value of contracts where futures were bought ( In Rs.) Gross Notional Value of contracts where futures were sold ( In Rs.) Net Profit/Loss Value on all contracts combined ( In Rs.) RELIANCE GROWTH FUND 8,599 8,954 5,391,491,604 5,650,232,644 199,544,781 C. Hedging Position through Put Options as on March 31, 2017 : NIL. Total % age of existing assets hedged through Put Options : NIL. For the Year ended March 31, 2017 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, 2017: NIL. Total Exposure through options as a %age of net assets: NIL. For the Year ended March 31, 2017 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, 2017 : 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 2016-2017 10
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