Reliance Home Fin Chairman Speech

My dear fellow Shareowners,

I am happy to share that our Company has completed 10 years.

Financial Year 2017-18 has been an iconic year for us. Let me share with you the highlights of the Company''s performance.

The Company made significant progress during the year towards improving operational performance across its core segments, and is fully geared to capitalise on its growth aspirations. We continue to move forward in fulfilling the vision of our legendary founder, Padma Vibhushan Shri Dhirubhai Ambani, to make sure that every Indian who desires a home can own it and, we, at Reliance Home Finance act as enablers.

While the world economy grew by 3.2 per cent and 3.7 per cent, respectively, in 2016 and 2017, the Indian economy expanded by a sharper 7.1 per cent and 6.7 per cent, respectively, making it the fastest growing large economy in the world.

While the housing finance companies have been able to grow at a faster pace, owing to their focus on niche segments such as self-employed and affordable housing segments which have huge growth potential, the initiatives and economic reforms taken by the Government such as implementation of Goods and Services Tax (GST), Jan Dhan Yojana, Demonetization, etc. have been very positive for financial services sector; particularly for the housing finance sector.

Owing to the growing housing finance sector, the government''s initiatives like "Pradhan Mantri Awas Yojana (PMAY) and Housing For All" by 2022; better access to the capital markets, your Company''s equity shares were successfully listed on BSE and NSE with effect from September 22, 2017. The existing shareholders of Reliance Capital Limited ("Reliance Capital"), the Company''s holding company; were given one free share of RHF for every share held by them in Reliance Capital.

Today, your Company is reckoned amongst India''s leading housing finance companies serving over 45,000 customers and has a clear focus on creating value by expanding the book size along with a robust growth in the net worth, and superior asset quality. Over the period, we have developed our expertise in Home Loans including Affordable Housing Loans, Loan against Property (LAP) and Construction Finance product segments.

Reliance Home Finance Limited, is a constituent of the Reliance Group which is a prominent business house, widely recognised 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 are:

- Assets Under Management increased to Rs, 16,379 croreagainst Rs, 11,174 crore in the previous year, an increase of 47 per cent

- Total income of Rs, 1,671 crore against Rs, 1,145 crore in the previous year, an increase of 46 per cent

- Net profit of Rs, 181 crore against Rs, 173 crore in the previous year

- Total assets of Rs, 15,684 crore against Rs, 1 1,347 crore in the previous year, an increase of 38 per cent

- Total net worth of Rs, 1,744 crore as against Rs, 1,032 crore in the previous year, an increase of 69 per cent

Considering the strong performance of your Company, the Board has recommended a dividend of Rs, 1 per share in the first year of Listing,

Highest credit ratings

Our Company''s short-term debt programme has been assigned a rating of "A1 " both by ICRA and Brickwork, the highest credit quality rating assigned by the respective agencies to short-term debt instruments (Instruments rated in this category carry lower credit risk in the short term). CARE and Brickwork ratings assigned our long - term debt programme a rating of "CARE AA " and "BWR AA " (Instruments with this rating offer investors a high degree of safety for timely servicing of debt obligations).

Corporate Governance

Reliance Home Finance 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 greater value for all our stakeholders.

Ravindra Sudhalkar

Executive Director & CEO