My dear fellow Shareowners,

It gives me great pleasure to share with you the highlights of our Company's performance during 2017 - 18. Reliance Capital made significant progress during the year towards improving operational performance across its core businesses, and is fully geared to capitalise on its growth aspirations. We continue to move forward in fulfilling the vision of our legendary founder and my father, Padma Vibhushan Shri Dhirubhai Ambani, to attain financial empowerment for millions of ordinary Indians, and, in the process, enable Reliance Capital to become one of India's leading financial services' players. Reliance Capital Limited, a part of the Reliance Group, is one of India's leading private sector financial services companies. It ranks amongst the top private sector financial services and banking groups, in terms of net worth. The Company is a constituent of MSCI Global Small Cap Index.

Reliance Capital has interests in asset management and mutual funds, pension 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. Reliance Capital Limited, is a constituent of the Reliance Group which is a prominent business house, widely recognized in India and abroad as one of the leading creators of projects of national importance - in infrastructure, power generation, transmission & distribution, financial services, defence manufacturing, entertainment and telecommunications, amongst others. The Reliance Group has the largest investor base in India with over 15.5 million retail investors. Reliance Group has over 75,000 employees and serves over 200 million customers. The Reliance Group has assets under management of over Rs 4.5 lakh crore and also manages Government of India's Employees' Provident Fund Organisation (EPFO), Pension Fund Regulatory and Development Authority (PFRDA) and Coal Mines Provident Fund Organisation (CMPFO) funds.

Currently, the Reliance Group has assets worth Rs 3,50,000 crore, net worth of Rs 70,000 crore and cash flows of over Rs 21,000 crore.

Performance Review

The key financial highlights on a consolidated basis are:

Total income of Rs 19,898 crore (US$ 3.1 billion), against Rs 17,640 crore in the previous year, an increase of 13 per cent

Net profit of Rs 1,309 crore (US$ 201 million), against Rs 1,086 crore in the previous year, an increase of 21 per cent

Earnings Per Share (EPS) of Rs 51.8 (US$ 0.8), against Rs 43.0 in the previous year

Total assets of Rs 93,851 crore (US$ 14.4 billion), against Rs 82,209 crore in the previous year, an increase of 14 per cent

Total net worth of Rs 16,605 crore (US$ 2.6 billion) These robust financial numbers have enabled us to recommend a dividend of Rs 11 per share against Rs 10.50 per share in the previous year.

Highest credit ratings

Our Company's short-term debt programme enjoys a rating of "A1+" by ICRA, the highest credit quality rating assigned to short-term debt instruments. Instruments rated in this category carry lower credit risk in the short-term. CARE assigned the long- term debt programme a rating of "CARE AA+". Instruments with this rating are considered to be one of the best credit qualities, offering high safety for timely servicing of debt obligations. Such instruments carry lower credit risk.

Achievements during the year across key operating businesses Reliance Nippon Life Asset Management managed over

Rs 3,96,370 crore (US$ 61 billion) across its mutual funds, pension funds, managed accounts and hedge funds, an increase of 13 per cent. The income from operations rose by 26 per cent to Rs 1,815 crore (US$ 279 million), while, profit before tax was at Rs 726 crore (US$ 112 million) as against Rs 581 crore in the previous year, an increase of 25 per cent. Reliance Commercial Finance is amongst the leading SME lenders in the Indian non-banking finance space, with a focus on transforming itself into a diversified and new-age finance solutions provider, both in the commercial and consumer finance space. Reliance Commercial Finance offers a wide range of products which include SME Loans, Microfinance, Loans Against Property, Infrastructure Finance, Agriculture Loans, Supply Chain Finance, Two-wheeler Financing and Used Car Loans. Disbursements rose to Rs 10,061 crore (US$ 1.6 billion), while the Assets Under Management stood at Rs 16,475 crore (US$ 2.5 billion) as on March 31, 2018. This loan book is spread across 51,400 customers from top 39 Indian cities.

Reliance Home Finance (RHF) provides a wide range of solutions like Home Loans including Affordable Housing

Loans, Loans against Property (LAP) and Construction finance. RHF also provides property services that help customers find their dream homes / properties. The Assets Under Management increased by 47 per cent to

Rs 16,379 crore (US$ 2.5 billion) as on March 31, 2018. The total income increased by 46 per cent to Rs 1,671 crore (US$ 257 million). The business achieved a profit before tax of

Rs 272 crore (US$ 42 million) as against Rs 138 crore, for the year ended March 31, 2018, an increase of 97 per cent.

Reliance General Insurance (RGI) is amongst the leading private sector general insurance companies in India with a market share of 7.7 per cent. RGI's gross written premium for the year, increased by 28 per cent to Rs 5,122 crore (US$ 788 million). The profit before tax was at Rs 165 crore (US$ 25 million) as against a profit of Rs 130 crore in the previous year, an increase of 27 per cent.

Reliance Nippon Life Insurance (RNLI) is amongst the leading private sector life insurers with a market share of 1.5 per cent in the private sector. RNLI's total premium was

Rs 4,042 crore (US$ 622 million) in the year. Renewal premium for the year rose by 6 per cent to Rs 3,154 crore (US$ 485 million). RNLI's New Business Achieved Profit (NBAP) margin was at 37.7 per cent for the year. The total funds under management stood at Rs 19,096 crore (US$ 2.9 billion), an increase of 11 per cent. The Embedded Value rose by 6 per cent to

Rs 3,220 crore (US$ 495 million).

The broking business consists of Reliance Securities, one of the leading retail broking houses in India, provides a varied customer base with access to equities, equity options and wealth management solutions. We had nearly 9,57,550 broking accounts as on March 31, 2018. The average daily equity broking turnover was approx. Rs 5,335 crore (US$ 821 million). In wealth management, the AUM rose by 47 per cent to over Rs 6,060 crore (US$ 932 million) as on March 31, 2018. The distribution business is a comprehensive financial services and solutions provider, assisting customers with access to mutual funds, insurance products and other financial products having a distribution network of approx. 100 branches and 1,300 customer touch points across India. The business achieved revenues of Rs 350 crore (US$ 54 million) for the year ended March 31, 2018. The profit before tax rose to Rs 49 crore (US$ 8 million) for the year ended March 31, 2018.

Future Strategy

Transformational initiatives being undertaken by

Government – JAM (Jan Dhan, Aadhaar, Mobile) Yojana, the constitution of India Stack, Start-Up India and GST – and an unrelenting focus on financial inclusion - are redefining financial services in the country.

We at Reliance Capital have been investing in technology, analytics and distribution to take advantage of an increasingly digital and formalising economy and provide simple and easily accessible solutions to the millions of, hitherto underserved, Indians.

Over the coming years, we will accelerate our investments in emerging technologies, big-data analytics and AI/ML, and deeper digitisation to offer a comprehensive and competitive suite of solutions across the life-style needs of the common person.

We will also leverage the digitising economy to enhance our distribution network, with a mix of physical and digital architecture, such that our products are available across the country, including semi-urban and rural India.

We believe that these initiatives will further strengthen our position as a leader in providing innovative and comprehensive financial solutions in the country.

Corporate Governance

Reliance Capital has always maintained the highest governance standards and practices by adopting, as is the norm for all constituent companies of the Group, the "Reliance Group - Corporate Governance Policies and Code of Conduct". These Policies and Code prescribe a set of systems, processes and principles, which conform to the highest international standards and are reviewed periodically to ensure their continuing relevance, effectiveness and responsiveness to the needs of investors, both local and global, and all other stakeholders.

Social Commitments

The Company continued to contribute actively to community welfare activities and took up several initiatives and measures related to education and healthcare.

Our Commitment

Our founder, the legendary Padma Vibhushan Shri Dhirubhai Ambani, gave us a simple mantra: to aspire to the highest global standards of quality, efficiency, operational performance and customer care. We remain committed to upholding that vision. Dhirubhai exhorted us to think big. With your continued support, we will think bigger. Indeed not just bigger but better, creating ever greater value for all our stakeholders.