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 2015-2016 An Open Ended Pharma Sector 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) Corporate Office : Regd. Office : Reliance Centre, 7th Floor South Wing, H Block, 1st Floor, Off Western Express Highway, Dhirubhai Ambani Knowledge City, Santacruz (East), Koparkhairane, Mumbai - 400 055. Navi Mumbai - 400 710. 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 INVESTMENT MANAGER Reliance Nippon Life Asset Management Limited (RNLAM) (formerly Reliance Capital Asset Management Limited) [CIN - U65910MH1995PLC220793] (Incorporated under the Companies Act, 1956) Corporate 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 Regd. Office : H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai - 400 710. DIRECTORS OF RELIANCE NIPPON LIFE ASSET MANAGEMENT LIMITED (formerly Reliance Capital Asset Management Limited) Mr. Soumen Ghosh Mr. Kanu Doshi Mr. S. C. Tripathi Ms. Ameeta Chatterjee Mr. Kazuhide Toda* Mr. Tomonao Gotoda* Mr. Sundeep Sikka* General Ved Prakash Malik (Retd.)* (*appointed on the Board of RNLAM w.e.f April 22, 2016) AUDITOR Haribhakti & Co. LLP Chartered Accountants 705, Leela Business Park, Andheri Kurla Road, Andheri (E), Mumbai 400 059, INDIA CUSTODIAN Deutsche Bank A.G. Deutsche Bank House, Hazarimal Somani Marg, Fort, Mumbai 400 001, INDIA REGISTRAR Karvy Computershare Private Limited Karvy Selenium Tower B, Plot number 31 & 32, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad 500032, India. Ph : 040-3321500 Fax : 040-67162220 INTERNAL AUDITOR for Financial Year 2015-16 Price Waterhouse 252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai 400 028 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 Date of Inception Compounded Annualised Returns as on 31.03.2016 (in %) Since 1 year 3 years 5 years Inception - Direct - 1-Jan-13-3.75 27.04 NA 22.55 Growth S&P BSE HealthCare -12.32 23.58 NA 20.96 - Growth 5-Jun-04-4.60 26.07 19.56 24.32 S&P BSE HealthCare -12.32 23.58 20.23 17.57 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 attempts to generate consistent returns by investing in all important segments of the pharmaceutical industry. The fund has outperformed the benchmark since inception. Future Outlook - The Indian Mutual Fund industry is one of the fastest growing industries in the financial services sector with 43 AMCs currently operating in the country. The industry quarterly AAUM has changed with an absolute growth rate of 16% over last year with ` 13,53,443 crore of quarterly average assets as on March 31, 2016. 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 [Sponsor] RCL is sponsor & settler of 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 banking and financial services sector. b. Nippon Life Insurance Company [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 the Fund in accordance with the Securities and Exchange Board of India (Mutual Fund) Regulations, 1996. c. Reliance Mutual Fund [Trust] Reliance Mutual Fund (RMF) 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 and also submitted with the Securities & Exchange Board of India (SEBI). 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 February 24, 1995, having its registered office at H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai 400710 and its 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 (formerly Reliance Capital Asset Management Limited) [Asset Manager] Reliance Nippon Life Asset Management Limited (RNLAM) is an unlisted Public Limited Company incorporated under the Companies Act, 1956 on February 24, 1995, having its registered office at H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Koparkhairane, Navi Mumbai 400710 and its Corporate Office at Reliance Centre, 7th Floor (South Wing), Off Western Express Highway, Santacruz (East), Mumbai - 400055. RNLAM is a subsidiary of RCL. RNLAM 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 RNLAM 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 seek to generate consistent returns by investing in equity and equity related securities or fixed income securities of Pharma and other associated companies. 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 Redemption Unclaimed Dividend No. of investors Amount (Rs) No. of investors Amount (Rs.) 67 13,71,418 536 27,45,216 6. Details of Investor Complaints: The Statement on Status of Redressal of Complaints received against Reliance Mutual Fund during the financial year 2015-16 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 ( RNLAM ) (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, RNLAM has voted on all material resolutions, keeping in view the interests of the investors. For the financial year 2015-16, 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 RNLAM 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 27, 2016 Director Director Abridged Annual Report 2015-2016 2
Annexure to Trustee Report Redressal of Complaints received during 2015-2016 Name of the Mutual Fund : Reliance Mutual Fund Total Number of Folios : 5913659 (as on 31 st March, 2016) 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 0 16 15 0 0 0 0 1 0 0 0 I B Interest on delayed payment of 0 8 8 0 0 0 0 0 0 0 0 Dividend I C Non receipt of Redemption 1 46 45 1 0 0 0 1 0 0 0 Proceeds I D Interest on delayed payment of 0 6 6 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 2 528 530 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 0 27 26 0 0 0 0 0 1 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 79 79 0 0 0 0 1 0 0 0 address, PAN, bank details, nomination, etc IV Others ** 0 131 122 2 0 0 0 7 0 0 0 V SIP Related 9 344 331 11 2 0 0 9 0 0 0 VI Purchase related 3 266 268 0 0 0 0 1 0 0 0 Total 16 1454 1433 14 2 0 0 20 1 0 0 Particulars Count Total Complaints Received During 2015-2016 1454 Total Number of Folios 5913659 Percentage Complaints Against Folios 0.02 ** 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 II B Discrepancy in Statement of Account II C Data corrections in Investor details II D Non receipt of Annual Report/Abridged Summary 0-3 months 3-6 months Pending 6-9 months 9-12 months Abridged Annual Report 2015-2016 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 Pharma Fund ( the Scheme ), which comprises the Balance Sheet as at March 31, 2016, 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 Trustee of Reliance Mutual Fund and Reliance Nippon Life Asset Management Limited (Formerly Reliance Capital Asset Management Limited), the Scheme 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 the accounting policies 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 design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements of the Scheme 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 as applicable in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) In the case of balance sheet, of the state of affairs of the Scheme as at March 31, 2016; b) In the case of revenue account of the deficit as applicable of the Scheme, for the year ended on that date; and c) In the case of the cash flow statement, of the cash flow of the Scheme for the year ended on that date. 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 CHETAN DESAI (Partner) Membership No. 017000 Place: Mumbai Date: 27 th June, 2016 Abridged Annual Report 2015-2016 4
Abridged Balance Sheet as at March 31, 2016 Rupees in Lakhs RELIANCE PHARMA FUND As at 31.03.2016 As at 31.03.2015 LIABILITIES 1 Unit Capital 13,726.20 11,777.15 2 Reserves & Surplus 1,27,148.94 1,14,477.11 2.1 Unit Premium Reserves 40,119.63 24,315.06 2.2 Unrealised Appreciation Reserve 39,980.21 59,650.80 2.3 Other Reserves 47,049.10 30,511.25 3 Loans & Borrowings - - 4 Current Liabilities & Provisions 995.63 277.42 4.1 Provision for doubtful Income/ - - Deposits 4.2 Other Current Liabilities & Provisions 995.63 277.42 TOTAL 1,41,870.77 1,26,531.68 ASSETS 1 Investments 1.1. Listed Securities: 1,38,926.69 1,24,702.53 1.1.1 Equity Shares 1,38,926.69 1,24,702.53 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 1,987.88-1.8 Bill Rediscounting - - 1.9 Units of Domestic Mutual Fund - - 1.10 Foreign Securities - - 1.11 Others (Gold) - - Total Investments 1,40,914.57 1,24,702.53 2 Deposits 3.23 2.07 3 Other Current Assets 952.97 1,827.08 3.1 Cash & Bank Balance 108.02 181.01 3.2 CBLO/ Reverse Repo Lending 721.44 1,465.64 3.3 Others 123.51 180.43 4 Deferred Revenue Expenditure - - (to the extent not written off) TOTAL 1,41,870.77 1,26,531.68 Notes to Accounts - Annexure I Abridged Revenue Account for the Year Ended March 31, 2016 Rupees in Lakhs RELIANCE PHARMA FUND Year ended 31.03.2016 Year ended 31.03.2015 1 INCOME 1.1 Dividend 1,182.07 702.13 1.2 Interest 254.46 94.81 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 13,819.63 12,641.98 sale / redemption of investments 1.6 Realised Gains / (Losses) on 6.67 - Derivative Transactions 1.7 Other Income 48.77 57.07 ( A ) 15,311.60 13,495.99 2 EXPENSES 2.1 Management fees 2,119.40 1,642.45 2.2 Service tax on Management fees 295.72 203.01 2.3 Transfer agents fees and expenses - - 2.4 Custodian fees - - 2.5 Trusteeship fees 0.57 0.47 2.6 Commission to Agents 1,063.93 675.85 2.7 Marketing & Distribution expenses 1.90 2.14 2.8 Audit fees 0.74 0.57 2.9 Investor education expense 27.98 20.37 2.10 Other operating expenses 0.74 0.57 2.11 Deferred Revenue Expenses written - - off ( B ) 3,510.98 2,545.43 3 NET REALISED GAINS / (LOSSES) FOR 11,800.62 10,950.56 THE YEAR / PERIOD (A -B = C) 4 Change in Unrealised Depreciation in value - - of investments (D) 5 NET GAINS / (LOSSES) FOR THE YEAR / 11,800.62 10,950.56 PERIOD (E = C+D) 6 Change in unrealised appreciation in the (19,670.60) 33,856.80 value of investments (F) 7 NET SURPLUS / (DEFICIT) FOR THE YEAR / PERIOD (E + F = G) (7,869.98) 44,807.36 7.1 Add: Balance transfer from 59,650.80 25,794.00 Unrealised Appreciation Reserve 7.2 Less: Balance transfer to Unrealised 39,980,21 59,650.80 Appreciation Reserve 7.3 Add / (Less): Equalisation 8,660.20 1,113.25 7.4 Net Gain/(Loss) Brought Forward From Previous Year 30,511.25 22,182.49 8 Total 50,972.06 34,246.30 9 Dividend appropriation 3,922.96 3,735.05 9.1 Income Distributed during the year 3,922.96 3,735.05 / period 9.2 Tax on income distributed during the year / period - - 10 Retained Surplus / (Deficit) carried forward to Balance sheet 47,049.10 30,511.25 Notes to Accounts - Annexure I Abridged Annual Report 2015-2016 5
Notes to Accounts - Annexure I to the Abridged Balance Sheet and Revenue Account for the Year ended March 31, 2016 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 For details on derivative positions please refer to Annexure III 1.3. Investments in Associates and Group Companies: NIL 1.4. There are NIL Open position of Securities Borrowed and / or Lent by the scheme. 1.5. There are no NPA s as on March 31, 2016. 1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial Year / Period and percentage to net assets- Scheme Name 2015-2016 2014-2015 Aggregate Unrealised Gain % of Net Assets Aggregate Unrealised Gain % of Net Assets RELIANCE PHARMA FUND / (Loss) (Rs. In lakhs) / (Loss) (Rs. In lakhs) 39,980.21 28.38% 59,650.80 47.25% 1.7. Aggregate Value of Purchase and Sale with Percentage to average assets. Scheme Name 2015-2016 2014-2015 Purchases Sales Purchases Sales Amount (Rs. in Lakhs) % 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 PHARMA FUND 73,969.88 52.87% 51,922.68 37.11% 26,304.93 25.83% 29,476.75 28.95% 1.8. Non-Traded securities in the portfolio: RELIANCE PHARMA FUND 2015-2016 2014-2015 Amount (Rs. In lakhs) % to Net Assets Amount (Rs. In lakhs) % to Net Assets Equity - - - - Debt - - - - Money Market 1,987.88 1.41% - - 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 Nature of Association/ Nature of relation 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) Reliance Securities Limited Associate 2015-2016 9.80 1.14% 0.01 1.11% 2014-2015 12.86 2.42% 0.01 2.18% Commission Paid to associates/related parties/group companies of Sponsor/AMC Name of associate/related parties/ group companies of sponsor/amc Indusind Bank Limited ** Quant Capital Advisors Private Limited Reliance Money Solutions Private Ltd Reliance Securities Limited Reliance Wealth Management Limited Alpesh Dhirendra Kapadia Aradhana Syntex Pvt Ltd Future Wealth Girish Gurunath Joshi Ortem Securities Ltd Nature of Association/ Nature of relation Associate Associate Associate Associate Associate 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 and his Relatives are Agents of Reliance Mutual Fund Period covered Business given (Rs. Cr. & % of total business received by the fund) Commission paid ( Rs Cr& % of total commission paid by the fund) 2015-2016 - - - - 2014-2015 0.47 0.19% 0.01 0.13% 2015-2016 - - 0.01 0.11% 2014-2015 0.60 0.00% 0.04 0.51% 2015-2016 0.29 0.06% 0.00 0.02% 2014-2015 0.32 0.11% 0.00 0.00% 2015-2016 0.23 0.05% 0.01 0.09% 2014-2015 0.83 0.27% 0.01 0.17% 2015-2016 0.15 0.03% 0.00 0.03% 2014-2015 - - - - 2015-2016 0.04 0.01% 0.00 0.00% 2014-2015 0.00 0.00% 0.00 0.00% 2015-2016 - - 0.00 0.00% 2014-2015 - - - 0.00% 2015-2016 0.03 0.01% 0.00 0.00% 2014-2015 0.01 0.00% - - 2015-2016 - - 0.00 0.00% 2014-2015 0.00 0.00% 0.00 0.00% 2015-2016 - - 0.00 0.00% 2014-2015 - - 0.00 0.00% ** - Commission paid to Indusind Bank Ltd. is considered only till 13 February 2015, since w.e.f. 14 February 2015, Indusind Bank Ltd. ceases to be a group/ associate company Abridged Annual Report 2015-2016 6
3 Large Holdings in the Scheme (i.e. in excess of 25% of the net assets) as on March 31, 2016 : NIL 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 - 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 2015-2016 7
Key Statistics for the year ended March 31, 2016 RELIANCE PHARMA FUND Year ended 31.03.2016 Year ended 31.03.2015 1. NAV per unit (Rs.): Growth Plan Open 137.5943 87.5625 High 157.2431 137.8922 Low 127.1685 84.0047 End 131.2447 137.5943 Bonus Plan Open 137.5943 87.5625 High 157.2431 137.8922 Low 127.1685 84.0047 End 131.2447 137.5943 Dividend Plan Open 71.4146 50.1734 High 81.6132 75.0685 Low 60.4787 48.1347 End 61.4270 71.4146 Direct Plan-Growth Plan Open 139.8269 88.3587 High 160.5703 140.1125 Low 129.4189 84.8417 End 134.5740 139.8269 Direct Plan-Dividend Plan Open 79.9324 55.1951 High 91.8340 83.0883 Low 69.1760 52.9999 End 70.2646 79.9324 Direct Plan-Bonus Plan Open 139.8269 88.3587 High 160.5703 140.1125 Low 129.4189 84.8417 End 134.5740 139.8269 2. Closing Assets Under Management (Rs. in Lakhs) End 1,40,875.14 1,26,254.27 Average (AAuM) 1,39,903.32 1,01,825.89 3. Gross income as % of AAuM 1 10.94% 13.25% 4. Expense Ratio: a. Total Expense as % of AAuM Other than Direct Plan 2.58% 2.54% Direct Plan 1.66% 1.83% b. Management Fee as % of AAuM Other than Direct Plan 1.52% 1.61% Direct Plan 1.43% 1.61% 5. Net Income as a percentage of AAuM 2 8.43% 10.75% 6. Portfolio turnover ratio 3 0.37 0.26 7. Total Dividend per unit distributed during the year / period (plan wise) Dividend Plan 7.00 7.00 Direct Plan-Dividend Plan 7.00 7.00 RELIANCE PHARMA FUND Year ended 31.03.2016 Year ended 31.03.2015 8. Returns: a. Last One Year Growth Plan -4.60% 57.22% Direct Plan-Growth Plan -3.75% 58.33% Benchmark -12.32% 70.74% Benchmark Name S&P BSE-HC b. Since Inception Growth Plan 24.32% 27.42% Direct Plan-Growth Plan 22.55% 36.33% Benchmark Name S&P BSE-HC Growth Plan 17.57% 20.77% Direct Plan-Growth Plan 20.96% 39.68% 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 Chief Executive Officer & Executive Director Sailesh Raj Bhan Fund Manager Sunil Singhania CIO-Equity Investments Place : Mumbai Date : June 27, 2016 For and on behalf of Reliance Capital Trustee Co. Limited A.N. Shanbhag Director P.P. Vora Director Abridged Annual Report 2015-2016 8
ANNEXURE II Unit Capital movement during the year / period ended 31st March 2016 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 PHARMA FUND (Face Value of Rs. 10 Each) 2015-2016 Growth Plan 5,79,05,432 57,90,54,322 - - 2,52,36,445 25,23,64,451 1,12,74,310 11,27,43,105 7,18,67,567 71,86,75,668 Bonus Plan 5,24,413 52,44,128 - - 9,239 92,394 49,390 4,93,895 4,84,263 48,42,628 Dividend Plan 5,31,33,962 53,13,39,620 - - 1,28,69,415 12,86,94,146 1,19,29,450 11,92,94,498 5,40,73,927 54,07,39,269 Direct Plan-Growth Plan 48,41,346 4,84,13,455 - - 43,27,196 4,32,71,956 13,25,837 1,32,58,371 78,42,704 7,84,27,041 Direct Plan-Bonus Plan 84,734 8,47,337 - - 7,715 77,151 24,658 2,46,580 67,791 6,77,908 Direct Plan-Dividend Plan 12,81,578 1,28,15,780 - - 20,86,210 2,08,62,095 4,42,003 44,20,030 29,25,785 2,92,57,846 Total 11,77,71,464 1,17,77,14,644 - - 4,45,36,219 44,53,62,194 2,50,45,648 25,04,56,478 13,72,62,036 1,37,26,20,359 2014-2015 Growth Plan 5,59,24,598 55,92,45,984 - - 1,94,59,453 19,45,94,531 1,74,78,619 17,47,86,193 5,79,05,432 57,90,54,322 Bonus Plan 5,12,118 51,21,183 - - 63,189 6,31,887 50,894 5,08,942 5,24,413 52,44,128 Dividend Plan 5,73,19,441 57,31,94,410 - - 92,66,554 9,26,65,544 1,34,52,033 13,45,20,333 5,31,33,962 53,13,39,620 Direct Plan-Growth Plan 33,85,101 3,38,51,013 - - 29,59,087 2,95,90,871 15,02,843 1,50,28,429 48,41,346 4,84,13,455 Direct Plan-Bonus Plan 58,543 5,85,426 - - 55,961 5,59,615 29,770 2,97,704 84,734 8,47,337 Direct Plan-Dividend Plan 7,55,847 75,58,473 - - 8,53,081 85,30,810 3,27,350 32,73,503 12,81,578 1,28,15,780 Total 11,79,55,649 1,17,95,56,489 - - 3,26,57,326 32,65,73,258 3,28,41,510 32,84,15,103 11,77,71,464 1,17,77,14,644 Abridged Annual Report 2015-2016 9
ANNEXURE III Derivatives Disclosure A. Hedging Positions through Futures as on March 31, 2016 : NIL Total %age of existing assets hedged through futures: NIL For the Period ended March 31, 2016 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, 2016: NIL Total exposure due to futures (non hedging positions) as a %age of net assets : NIL For the period ended March 31, 2016 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 PHARMA 360 360 8,17,48,890 8,24,40,000 6,91,110 FUND C. Hedging Position through Put Options as on March 31, 2016 : NIL Total % age of existing assets hedged through Put Options : NIL For the period ended March 31, 2016 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, 2016: NIL Total Exposure through options as a %age of net assets: NIL For the period ended March 31, 2016 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, 2016 - 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 2015-2016 10
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