annual report - reliance agri products distribution limited

8/8/2019 Annual Report - Reliance Agri Products Distribution Limited

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RELIANCE AGRI PRODUCTS DISTRIBUTION LIMITED

Annual Report2009 - 2010


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1Reliance Agri Products Distribution Limited

Directors Report

Dear Members,

Your Directors are pleased to present the Third Annual Report

and the Audited Accounts for the year ended on March 31,

2010.

Financial Results

The financial performance of the Company for the year ended

on March 31, 2010 is summarized below:

(Amount in Rupees)

2009-2010 2008-2009

Gross Profit/(Loss) beforeDepreciation, Interest and Tax (7 92 16 711) (11 03 55 439)

Less: Interest - -

Depreciation 31 12 377 8 32 986

Profit/(Loss) before Tax (8 23 29 088) (11 11 88 425)

Less: Provision for

Fringe Benefit Tax - 10 74 848

Deferred Tax (2 99 34 690) (3 43 40 528)

Profit/(Loss) after Tax (5 23 94 398) (7 79 22 745)

Balance brought forward (7 82 63 549) (3 40 804)

from Previous Year

Balance carried to (13 06 57 947) (7 82 63 549)

Balance Sheet

Operational and Financial Review

The Company through its wholesale distribution outlets and

agri-business centres sources staples, fruits, vegetables and

other agricultural produce. The Company also provides services

for procurement of agricultural products.

The Company has incurred a loss of Rs. 5 23 94 398 for the

financial year ended March 31, 2010. With the optimisation

of resources and further scaling up of operations, the Company

is confident of posting better results in the future.

Dividend

Your Directors have not recommended any dividend on Equity

Shares for the year under review.

Directors

Pursuant to the provisions of Section 260 of the Companies

Act, 1956 and the Articles of Association, Shri Pankaj Pawar

and Shri Ramesh Damani was appointed as Additional

Directors on the Board with effect from March 31, 2010 and

April 22, 2010 respectively. Shri Pankaj Pawar and Shri

Ramesh Damani shall hold office upto the date of the ensuing

Annual General Meeting. The Company has received notices

in writing under Section 257 of the Companies Act, 1956 from

a member proposing the candidature of Shri Pankaj Pawar andShri Ramesh Damani for the office of Director, liable to retire

by rotation. Your Directors recommend their appointment as

Directors of the Company.

Shri Srinivasan Chakravarthy and Shri Sanjeev Kumar Asthana

resigned from the office of Director of the Company with

effect from March 31, 2010 and April 22, 2010 respectively.

The Board wishes to place on record the valuable contribution

made by them during their tenure as Director of the Company.

In accordance with the provisions of the Companies Act, 1956,

Shri C. R. Srinath retires by rotation and being eligible, offers

himself for reappointment at the ensuing Annual General

Meeting.

Directors' Responsibility Statement

Pursuant to the requirement under Section 217(2AA) of the

Companies Act, 1956 with respect to Directors' Responsibility

Statement, it is hereby confirmed that:

(i) in the preparation of the accounts for the year ended 31st

March, 2010, the applicable accounting standards have

been followed and there are no material departures from

the same;

(ii) the Directors have selected such accounting policies and

applied them consistently and made judgments and

estimates that are reasonable and prudent so as to give atrue and fair view of the state of affairs of the Company

at the end of the financial year and of the loss of the

Company for the period under review;

(iii) the Directors have taken proper and sufficient care for

the maintenance of adequate accounting records in


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2 Reliance Agri Products Distribution Limited

accordance with the provisions of the Companies Act,1956 for safeguarding the assets of the Company and for

preventing and detecting fraud and other irregularities;

(iv) the Directors have prepared the accounts for the year

ended 31st March, 2010 on a 'going concern' basis.

Auditors

During the year, Messers S. R. Batliboi & Co., Chartered

Accountants, resigned as joint statutory auditors of the

Company. Messrs Chaturvedi & Shah, Chartered Accountants,

continue as statutory auditor of the company. Messrs

Chaturvedi & Shah, Chartered Accountants, Statutory Auditors

of the Company, hold office until the conclusion of the ensuing

Annual General Meeting of the Company and are eligible forre appointment.

The Company has received letter from them to the effect that

their re-appointment, if made, would be within the prescribed

limits under Section 224(1B) of the Companies Act, 1956 and

that they are not disqualified for such re-appointment within

the meaning of Section 226 of the Companies Act, 1956.

Particulars of Employees

As required under the provisions of Section 217(2A) of the

Companies Act, 1956, read with the Companies (Particulars

of Employees) Rules, 1975, as amended, the names and other

particulars of the employees are set out in the Annexure to

this Report.

Conservation of Energy, Technology Absorption and

Foreign Exchange Earnings and Outgo

The particulars relating to conservation of energy, technology

absorption and foreign exchange earnings and outgo, required

to be furnished pursuant to Section 217(1)(e) of the Companies

Act, 1956, read with Companies (Disclosures of Particulars

in the Report of Board of Directors) Rules, 1988, are as under:

i. Part A and B of the Rules, pertaining to conservation of

energy and technology absorption, are not applicable to

the Company.

ii. Foreign Exchange Earnings and Outgo:

Foreign Exchange Earned : Rs. Nil

Foreign Exchange Used : Rs. 98 727

Acknowledgement

Your Directors would like to express their grateful appreciation

for assistance and cooperation received from Reliance IndustriesLimited, Reliance Retail Limited, Banks, Government

Authorities, Customers, Vendors, Employees and Members

during the year under review.

For and on behalf of the Board of Directors

C. R. Srinath

Director

Pankaj Pawar

Director

Place: Mumbai

Date: April 22, 2010


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Auditors Report

To the Members ofRELIANCE AGRI PRODUCTS DISTRIBUTION LIMITED

We have audited the attached Balance Sheet of RELIANCE

AGRI PRODUCTS DISTRIBUTION LIMITED (the

Company) as at March 31, 2010, the Profit and Loss Account

and also the Cash Flow Statement for the year ended on that

date. These financial statements are the responsibility of the

Companys management. Our responsibility is to express an

opinion on these financial statements based on our audit.

1. We have conducted our audit in accordance with the

Auditing Standards generally accepted in India. Those

standards require that we plan and perform the audit to

obtain reasonable assurance about whether the financial

statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting

the amounts and disclosures in the financial statements.

An audit also includes assessing the accounting principles

used and significant estimates made by the management,

as well as evaluating the overall financial statement

presentation. We believe that our audit provides a

reasonable basis for our opinion.

2. As required by the Companies (Auditors Report) Order

2003 (as amended) issued by the Central Government of

India in terms of sub-section (4A) of section 227 of the

Companies Act, 1956, we enclose in the Annexure a

statement on the matters specified in paragraphs 4 and 5

of the said Order.

3. Further to our comments in the Annexure referred to

above, we report that:

a) We have obtained all the information and

explanations, which to the best of our knowledge and

belief were necessary for the purposes of our audit;

b) In our opinion, proper books of account as required

by law have been kept by the Company so far as

appears from our examination of those books;

c) The Balance Sheet, the Profit and Loss Account and

Cash Flow Statement dealt with by this report are

in agreement with the books of account;

d) In our opinion, the Balance Sheet, Profit and Loss

Account and Cash Flow statement dealt with by this

report comply with the mandatory Accounting

Standards referred to in sub-section (3C) of section

211 of the Companies Act, 1956;

e) On the basis of written representations received fromthe Directors as on March 31, 2010 and taken on

record by the Board of Directors, we report that

none of the Directors is disqualified as on March 31,

2010 from being appointed as a director in terms of

clause (g) of sub-section (1) of section 274 of the

Companies Act, 1956;

f) In our opinion and to the best of our information

and according to the explanations given to us, the

said accounts give the information required by the

Companies Act, 1956, in the manner so required, and

give a true and fair view in conformity with the

accounting principles generally accepted in India:

(i) in the case of the Balance Sheet, of the state ofaffairs of the Company as at March 31, 2010;

(ii) in the case of the Profit and Loss Account, of

the loss for the year ended on that date; and

(iii) in the case of the Cash Flow Statement, of the

cash flows for the year ended on that date.

ForChaturvedi & Shah

Firm Registration No: 101720W

Chartered Accountants

Jignesh Mehta

Partner

Membership No.: 102749

Place: Mumbai

Date : April 22, 2010


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Annexure referred to in Paragraph 2 of our report of even dateRe: Reliance Agri Porducts Distribution Limited (the Company)

1. a) The Company has main ta ined proper recordsshowing full particulars, including quantitative details

and situation of fixed assets.

b) Fixed assets have been physically verified by the

management in a phased periodical manner as per

regular programme of verification, which in our

opinion is reasonable, having regard to the size of

the Company and nature of its assets. As informed,

no material discrepancies were noticed on such

physical verification.

c) There are no substantial disposals of fixed assets

during the year.

2. In respect of its inventories:

a) The inventory has been physically verified during

the year by the management. In our opinion, the

frequency of verification is reasonable.

b) The procedures of physical verification of inventories

followed by the management are reasonable and

adequate in relation to the size of the Company and

the nature of its business.

c) The Company has maintained proper records of

inventory. As explained to us, there were no material

discrepancies noticed on physical verification of

inventory.

3. The Company has neither granted nor taken any loan,

secured or unsecured to/from companies, firms and other

parties covered in the Register maintained under Section

301 of the Companies Act, 1956.Therefore, the provisions

of clause (iii) (b), (c), (d), (f), (g) of the Companies

(Auditors Report) Order 2003, (as amended) are not

applicable to the Company.

4. In our opinion and according to the information and

explanations given to us, there is an adequate internal

control system commensurate with the size of the

Company and the nature of its business, for the purchase

of inventory and fixed assets and for the sale of goods

and services. During the course of our audit, no major

weakness has been noticed in the internal control system

in respect of these areas.

5. According to information and explanation given to us, we

are of the opinion that there are no contracts or

arrangements referred to in section 301 of the Companies

Act. 1956 that needs to be entered into the registermaintained under section 301. Therefore, the provisions

of clause (v) (b) of the Companies (Auditors Report)

Order 2003, (as amended) is not applicable to the

Company.

6. The Company has not accepted any deposit from the

public.

7. In our opinion, the Company has an internal audit system

commensurate with the size and nature of its business.

8. To the best of our knowledge and as explained, the Central

Government has not prescribed the maintenance of cost

records under Section 209 (1) (d) of the Companies Act,

1956.

9. In respect of statutory dues:

a) According to the records of the Company, the

Company is regular in depositing with appropriate

authorities undisputed statutory dues including

provident fund, investor education and protection

fund, employees state insurance, income-tax, sales-

tax, wealth-tax, service tax, customs duty, cess and

other statutory dues applicable to it. According to

the information and explanations given to us, no

undisputed amounts payable in respect of provident

fund, investor education and protection fund,

employees state insurance, income-tax, wealth-tax,

service tax, sales-tax, customs duty, cess and otherundisputed statutory dues were outstanding, as at

March 31, 2010 for a period of more than six months

from the date they became payable.

b) According to the information and explanation given

to us, there are no dues of sales tax, income tax,

wealth tax, service tax, custom duty, excise duty and

cess which have not been deposited on account of

any dispute.

10. The Company has been registered for a period of less than

five years and hence we are not required to comment on

whether or not the accumulated losses at the end of the

financial year is fifty per cent or more of its net worth

and whether it has incurred cash losses in such financial

year and in the immediately preceding financial year.

11. The company has not raised loans from Financial

Institutions or Banks or by issue of Debentures and hence

Clause 4 (xi) of the Companies (Auditors Report) Order


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Annexure referred to in Paragraph 2 of our report of even dateRe: Reliance Agri Porducts Distribution Limited (the Company)

2003, (as amended) are not applicable to the Company.

12. In our opinion and according to the explanations given to

us and based on the information available, no loans and

advances have been granted on the basis of security by

way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund or a nidhi/

mutual benefit fund/ society. Therefore, the provisions of

clause 4(xiii) of the Companies (Auditors Report) Order

2003, (as amended) are not applicable to the Company.

14. In our opinion, the Company is not dealing or trading in

shares, securities, debentures and other investments and

therefore the provisions of clause (xiv) of the Companies

(Auditors Report) Order 2003, (as amended) are notapplicable.

15. According to information and explanation given to us the

Company has not given any guarantee for loans taken by

others from bank or financial institutions. Therefore, the

provisions of Clause (xv) of Companies (Auditors

Report) Order 2003, (as amended) are not applicable.

16. The term loans raised by the company were applied for

the purpose for which loans were obtained.

17. According to the information and explanations given to

us and on an overall examination of the balance sheet of

the Company, we report that no funds raised on short-

term basis have been used for long-term investment.

18. The Company has not made any preferential allotmentof shares to parties and companies covered under Register

maintained under section 301 of the Companies Act, 1956.

19. The Company did not have any outstanding debenture

during the year.

20. The Company has not raised any monies by way of public

issue during the year.

21. Based upon the audit procedures performed for the

purpose of reporting the true and fair view of the financial

statements and as per the information and explanations

given by the management, we have not come across any

instance of material fraud on or by the Company, noted

or reported during the course of our audit.

ForChaturvedi & Shah

Firm Registration No : 101720W

Chartered Accountants

Jignesh Mehta

Partner

Membership No.: 102749

Place: Mumbai

Date : April 22, 2010


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In RupeesSchedule As at As at

31st March, 2010 31st March, 2009

SOURCES OF FUNDS

Shareholders Funds

Share Capital A 5 00 000 5 00 000

Loan Funds

Unsecured Loans B 33 87 69 586 19 87 49 933

TOTAL 33 92 69 586 19 92 49 933

APPLICATION OF FUNDS

Fixed Assets C

Gross Block 2 99 39 561 3 60 81 301

Less: Depreciation 28 20 558 8 32 986

Net Block 2 71 19 003 3 52 48 315Capital Work-in-Progress 5 29 53 360 2 46 47 546

8 00 72 363 5 98 95 861

Deferred Tax Assets 6 44 50 705 3 45 16 015

Current Assets, Loans and Advances

Current Assets D

Inventories 4 92 94 628 4 63 80 252

Sundry Debtors 2 78 12 609 3 53 20 311

Cash and Bank Balances 92 28 456 1 58 32 609

8 63 35 693 9 75 33 172

Loans and Advances E 2 52 74 947 2 45 17 685

11 16 10 640 12 20 50 857

Less :

Current Liabilities and Provisions F

Current Liabilities 4 61 85 617 8 89 56 549

Provisions 13 41 252 65 27 000

4 75 26 869 9 54 83 549

Net Current Assets 6 40 83 771 2 65 67 308

Miscellaneous Expenditure G 4 800 7 200

(To the extent not written off or adjusted)

Profit and Loss Account 13 06 57 947 7 82 63 549

TOTAL 33 92 69 586 19 92 49 933

Significant Accounting Policies K

Notes on Accounts L

Reliance Agri Products Distribution LimitedBalance Sheet as at 31st March, 2010

As per our Report of even date For and on behalf of the Board

ForChaturvedi & Shah C. R. Srinath

Chartered Accountants Director

Jignesh Mehta Pankaj Pawar

Partner Director

Membership No: 102749

Mumbai

Dated : 22nd April, 2010


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In Rupees

Schedule 2009-10 2008-09

INCOME

Turnover 74 53 97 488 46 51 45 610

Other Income H 2 58 148 35 024

Variation in Stocks I 19 41 351 4 49 15 339

74 75 96 987 51 00 95 973

EXPENDITURE

Purchases 73 11 47 386 52 09 87 849

Operating and Other Expenses J 9 56 66 312 9 94 63 563

Depreciation 31 12 377 8 32 986

82 99 26 075 62 12 84 398

Profit/ (Loss) before Tax (8 23 29 088) (11 11 88 425)

Provision for Fringe Benefit Tax - 10 74 848

Provision for Deferred Tax (2 99 34 690) (3 43 40 528)

Profit/ (Loss) after Tax (5 23 94 398) (7 79 22 745)

Add: Balance brought forward from Previous Year (7 82 63 549) ( 3 40 804)

Balance carried to Balance Sheet (13 06 57 947) (7 82 63 549)

Basic and Diluted Earnings per Share of face value

of Rs 10 each (in Rupees) (1,047.89) (1,558.45)

[Refer Note 9, Schedule L]

Significant Accounting Policies K

Notes on Accounts L

Reliance Agri Products Distribution LimitedProfit and Loss Account for the year ended 31st March, 2010





Partner Director


MumbaiDated : 22nd April, 2010


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In Rupees2009-10 2008-09

A: CASH FLOW FROM OPERATING ACTIVITIES

Net Profit/(Loss) before tax as per Profit and Loss Account (8 23 29 088) (11 11 88 425)

Adjusted for:

Miscellaneous Expenditure written off 2 400 2 400

(Profit)/ Loss on sale/ Discarding of Assets (net) 27 54 497 -

Depreciation 31 12 377 8 32 986

Interest Income ( 5 221) ( 35 024)

58 64 053 8 00 362

Operating Profit before Working Capital Changes (7 64 65 035) (11 03 88 063)

Adjusted for:

Trade and Other Receivables 70 24 797 (5 53 39 687)

Inventories ( 29 14 376) (4 51 74 598)

Trade Payables (4 11 25 647) 9 02 62 451

(3 70 15 226) (1 02 51 834)

Cash Generated from Operations (11 34 80 261) (12 06 39 897)

Taxes Paid ( 2 70 069) ( 41 252)

Net Cash used in Operating Activities (11 37 50 330) (12 06 81 149)

B: CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (4 04 36 609) (6 07 28 848)

Sale/ Decapitalization of Fixed Assets 75 62 199 -

Interest Income 933 35 024

Net Cash used in Investing Activities (3 28 73 477) (6 06 93 824)

C: CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from Long Term Borrowings 91 49 80 941 31 64 80 810

Repayment of Long Term Borrowings (77 49 61 288) (12 03 31 059)

Net Cash from Financing Activities 14 00 19 653 19 61 49 751

Net Increase/(Decrease) in Cash and Cash Equivalents ( 66 04 154) 1 47 74 778

Opening Balance of Cash and Cash Equivalents 1 58 32 609 10 57 831

Closing Balance of Cash and Cash Equivalents 92 28 455 1 58 32 609

Reliance Agri Products Distribution LimitedCash Flow Statement for the year 2009-10





Partner Director


Mumbai



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In Rupees

SCHEDULE A As at As at


SHARE CAPITAL

Authorised

1 00 000 Equity Shares of Rs. 10 each 10 00 000 10 00 000

(1000 00)

TOTAL 10 00 000 10 00 000

Issued, Subscribed and Paid-up

Fully Paid-up

50 000 Equity Shares of Rs. 10 each 5 00 000 5 00 000

(50 000)

TOTAL 5 00 000 5 00 000

Note:

All the above 50 000 (Previous Year 50 000) Equity shares of Rs.10 each fully paid-up are held by Reliance Retail Limited, the

holding company along with its nominees.

In Rupees

SCHEDULE B As at As at


UNSECURED LOANS

Long Term Loan

From holding company 33 87 69 586 19 87 49 933

TOTAL 33 87 69 586 19 87 49 933

Schedules forming part of the Balance Sheet


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SCHEDULE

C

FIXEDASSETS

InRupee

s

Description

GrossBlock

Depreciation

NetBlock

Asat

Additions

Deductions/

As

at

Upto

Forthe

Deductions/

Upto

Asat

Asat

1stApril,2009

Adjustments

31stMar

ch,

2010

31stMarch

,2009

year

Adjustments

31stMarch,

2010

31stMarch,

2010

31stMarch

,2009

PlantandMachinery

1368861

354670

320484

1403047

95168

268910

66926

297152

1105895

1273693

ElectricalInstallations

9380429

1094924

3405951

7069402

124206

478034

197782

404458

6664944

9256223

Equipments

14580141

1921558

4138067

12363632

244710

919361

318039

846032

11517600

14335431

FurnitureandFixtures

2932515

1334507

1186774

3080248

51512

262286

93279

220519

2859729

2881003

LeaseholdImprovements

7819355

594102

2390225

6023232

317390

1183786

448779

1052397

4970835

7501965

Total

36081301

5299761

11441501

29939561

832986

3112377

1124805

2820558

27119003

35248315

Previousyear

-

39013816

2932515

36081301

-

832986

-

832986

35248315

-

CapitalWork-in-Progress

52953358

24647544

Notes:

CapitalWork-in-Progressincludes:

i)

Rs.1347106(PreviousyearRs.1350042)onaccountofAdvanceagainstProjectContracts.

ii)

Rs.36141218(PreviousyearRs.13952986)onaccountof

ProjectDevelopmentExpenditure.

iii)Rs.14965034(PreviousyearRs.8477674)onaccountofc

onstructionmaterialsatsite.


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In Rupees

SCHEDULE D As at As at


CURRENT ASSETS

INVENTORIES

Stores and Packing Materials 12 32 283 2 59 259

Traded Goods 4 80 62 345 4 61 20 993

4 92 94 628 4 63 80 252

SUNDRY DEBTORS (1)

(Unsecured and Considered Good)

Over six months 55 21 856

Others 2 22 90 753 3 53 20 311

2 78 12 609 3 53 20 311

CASH AND BANK BALANCES

Cash in Hand 59 00 514 1 07 75 313

Balance with Scheduled Banks

In Current Accounts 32 54 942 50 47 296

In Fixed Deposit Accounts 73 000 10 000

92 28 456 1 58 32 609

TOTAL 8 63 35 693 9 75 33 172

Note:

(1) Includes Rs 38 75 213 (Previous Year Rs 36 25 96) receivable from Reliance Food Processing Solutions Limited, a company

under the same management.


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In Rupees

SCHEDULE E As at As at31st March, 2010 31st March, 2009

LOANS AND ADVANCESUNSECURED - (Considered good unless otherwise stated)

Advance Income Tax (net of Provision) 6 65 931 3 95 862

Advances Recoverable in Cash or in kind or for value to be received (1) 64 99 074 48 86 434

Deposits 1 43 55 531 1 55 70 503

Balance with Service Tax/ Sales Tax Authorities, etc. 37 54 411 36 64 886

TOTAL 2 52 74 947 2 45 17 685

(1) Includes Rs.18 75 773 (Previous Year Rs. Nil) receivable from Reliance Fresh Limited, a company under the same management.

Maximum balance receivable during the year Rs. 18 75 773 (Previous Year Rs.Nil).

In Rupees

SCHEDULE F As at As at31st March, 2010 31st March, 2009

CURRENT LIABILITIES AND PROVISIONS

Current Liabilities

Sundry Creditors

- Micro enterprises and Small enterprises (1) - -

- Others(2) 4 61 85 617 8 89 56 549

TOTAL 4 61 85 617 8 89 56 549

ProvisionsProvision for Leave Encashment/ Gratuity 13 41 252 65 27 000

4 75 26 869 9 54 83 549

Note:

(1) The Company has not received the required information from Suppliers regarding their status under the Micro, Small andMedium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end togetherwith interest paid/ payable as required under the said Act have not been made.

(2) Includes Rs 36 96 431 (Previous Year Rs 1 05 27 464) for capital expenditure.

In Rupees

SCHEDULE G As at As at31st March, 2010 31st March, 2009

MISCELLANEOUS EXPENDITURE(to the extent not written off or adjusted)

Issue Expenses

As per last Balance Sheet 7 200 9 600

Less : Written - off during the year 2 400 2 400

TOTAL 4 800 7 200


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In RupeesSCHEDULE H 2009-2010 2008-2009

OTHER INCOME

Interest

From Others 5 221 22 195

Miscellaneous Income 2 52 927 12 829

TOTAL 2 58 148 35 024

In Rupees

SCHEDULE I

2009-10 2008-09

VARIATION IN STOCKS

STOCK-IN-TRADE (at close)

Traded Goods 4 80 62 345 4 61 20 994

STOCK-IN-TRADE (at commencement)

Traded Goods 4 61 20 994 12 05 655

TOTAL 19 41 351 4 49 15 339

In Rupees

SCHEDULE J 2009-2010 2008-2009

OPERATING AND OTHER EXPENSES

PAYMENT TO AND PROVISIONS

FOR EMPLOYEES

Salaries, Wages and Bonus 76 98 429 2 94 28 633

Contribution to Provident Fund, Gratuity Fund,

Superannuation Fund, Employees State Insurance Scheme,

Pension Scheme,Labour Welfare Fund etc. 3 55 445 19 48 029

Employee Welfare and other amenities 10 41 425 27 40 738

90 95 299 3 41 17 400

SALES AND DISTRIBUTION EXPENSES

Samples, Sales Promotion and Advertisement Expenses 13 56 448 23 21 395

Store Running Expenses 2 68 48 304 91 27 474

Brokerage, Discount and Commission 63 639 31 92 680

Warehousing and Distribution Expenses 41 00 818 25 74 898

Sales Tax 2 196 16 375

3 23 71 405 1 72 32 822

Schedules forming part of the Profit and Loss Account


15/24


In RupeesSCHEDULE J (Contd.) 2009-2010 2008-2009

OPERATING AND ESTABLISHMENT EXPENSES

Stores and Packing Materials 21 07 773 30 15 104

Machinery Repairs 32 400 12 922

Building Repairs and Maintenance 12 99 251 3 68 294

Other Repairs 11 52 680 39 58 507

Rent including Lease Rentals 3 21 74 907 2 98 73 880

Insurance 1 56 616 81 484

Rates and Taxes 2 92 842 9 47 953

Travelling and Conveyance Expenses 6 86 810 59 42 623

Payment to Auditors 99 270 35 432

Professional Fees 3 53 208 3 14 415

Loss on Sale/ Discarding of Assets 27 54 497 -

Security Expenses 57 62 902 -

Electricity Expenses 41 60 247 13 75 033

Telephone Expenses 24 57 065 11 66 561

Printing and Stationery 3 87 416 7 58 664

Hire Charges 29 637 2 59 919

General Expenses 2 89 687 150

5 41 97 208 4 81 10 941

Miscellaneous Expenditure written off 2 400 2 400

TOTAL 9 56 66 312 9 94 63 563

Schedules forming part of the Profit and Loss Account


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SCHEDULE KSIGNIFICANT ACCOUNTING POLICIES

1 Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting

principles in India, Companies (Accounting Standards) Rules 2006 and the provisions of the Companies Act, 1956.

2 Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of

the assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the

reporting period. Difference between the actual results and estimates are recognised in the period in which the results are

known/ materialised.

3 Own Fixed Assets

Fixed Assets are stated at cost net of CENVAT/ Value Added Tax less accumulated depreciation and impairment loss, if any.

All costs attributable to Fixed Assets are Capitalised. Improvement cost on Lease premises up to the date of commercial

operation is capitalised as Leasehold Improvements.

4 Lease Rentals

Operating lease rentals are expensed with reference to lease terms and other considerations.

5 Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV

to the Companies Act, 1956 over their useful life except, leasehold improvements are amortized over the lower of estimated

useful life or lease period; signages and access control system are depreciated over the estimated useful life of five years.

6 Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged

to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in

prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

7 Foreign Currency Transactions

a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of the transaction

or that approximates the actual rate at the date of the transactions.

b) Monetary items denominated in foreign currencies at the year end are restated at year end rates.

c) Non monetary foreign currency items are carried at cost.

d) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the

Profit and Loss Account except in case of long term liabilites, where they relate to acquisition of fixed assets in which

case they are adjusted to the carrying cost of such assets.

8 Inventories

Items of Inventories are measured at lower of cost and net realizable value, after providing for obsolescence, if any. Cost of

Inventory comprises of all cost of purchase and other cost incurred in bringing them to the respective present locations andconditions. Cost is determined by Weighted Average Basis.

9 Turnover

Turnover includes sale of goods and service, service tax, adjusted for discounts (net) and Value Added Tax (VAT), if any.


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SCHEDULE K (Contd.)10 Employee Benefits

i) Short term employee benefits are recognised as an expense at the undiscounted amount in the Profit and Loss Account

of the year in which the related service is rendered.

ii) Post employment and other long term employee benefits are recognised as an expense in the Profit and Loss Account

for the year in which the employee has rendered services. The expense is recognised at the present value of the amounts

payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and

other long term benefits are charged to the Profit and Loss Account.

11 Miscellaneous Expenditure

Preliminary and issue expenses incurred are amortized over a period of 5 years.

12 Provision for Current Tax and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-taxAct, 1961.Deferred tax resulting from timing difference between taxable and accounting income is accounted for using the

tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognised

and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

13 Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a

result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised

but are disclosed in the notes.Contingent Assets are neither recognised nor disclosed in the financial statements.

SCHEDULE L

NOTES ON ACCOUNTS

1 The previous years figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and otherdisclosures for the preceding year are included as an integral part of the current year financial statements and are to be read inrelation to the amounts and other disclosures relating to the current year.

2 The Company in the process of setting up various facilities for conducting its business. The expenditure incurred during theimplementation period for bringing the project in the condition of its intended use, is treated as Project DevelopmentExpenditure pending capitalisation and included in Capital Work-in-Progress. Capitalisation is done in the ratio of phasedimplementation. Necessary details as per part II of Schedule VI to the Companies Act, 1956 have been disclosed below:

Project Development Expenditure Account (included under Capital Work-in-Progress):

In Rupees

2009-10 2008-09

Opening Balance 1 39 52 985 -

Add:

(i) Payments to and Provisions for Employees

- Salaries, Wages and Bonus 1 42 89 498 1 40 78 477

- Contribution to Provident Fund, Gratuity Fund,

Superannuation Fund, Pension Scheme etc. 8 11 121 10 61 534

- Employee Welfare and other amenities 11 31 718 12 30 562

1 62 32 337



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SCHEDULE L (Contd.)In Rupees

2009-10 2008-09

(ii) Repairs and Maintenance:

- Machinery 44 961 -

- Building 2 34 542 16 682

- Other 16 04 051 12 52 230

18 83 554 -

(iii) Rent including lease rental 13 33 977 20 98 968

(iv) Insurance 4 20 027 43 839

(v) Rates and Taxes 65 289 57 187

(vi) Travelling and Conveyance Expenses 6 83 616 27 23 863

(vii) Legal and Professional Fees 7 40 086 1 32 017

(viii) Security Expenses 6 22 761 -

(ix) Electricity Expenses 13 908 834

(x) Telephone Expenses 2 76 172 -

(xi) Printing and Stationery 38 395 -

(xii) Hire Charges 30 544 -

(xiii) General Expenses 1 93 910 38 11 335

2 25 34 576 2 65 07 528

Less:

Capitalised during the year 3 46 343 1 25 54 543

Closing Balance 3 61 41 218 1 39 52 985

3 Turnover Includes Income from Services of Rs 20 67 677 (Previous Year Rs. Nil).

4 The Company is mainly engaged in Organised Retail in India. All the activities of the Company revolve around this main

business. Accordingly, the Company has only one identifiable segment reportable under Accounting Standard 17 Segment

Reporting, notified in the Companies (Accounting Standards) Rules 2006.

5 As per Accounting Standard 15 Employee Benefits, notified in the Companies (Accounting Standards) Rules 2006, thedisclosures of employee benefits as defined in the Accounting Standard are given below:

Defined Contribution Plan In Rupees

Contribution to Defined Contribution Plan, recognised are charged off/ capitalised for the year are as under:

2009-10 2008-09

Employers Contribution to Provident Fund 8 23 490 12 02 034

Employers Contribution to Pension Scheme 3 41 454 6 33 863



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SCHEDULE L (Contd.)Defined Benefit Plan

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, whichrecognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unitseparately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

The Company operates post retirement benefit plans as follows:

I) Reconciliation of opening and closing balances of Defined Benefit obligation In Rupees

Gratuity Leave Encashment(Unfunded) (Unfunded)

2009-10 2008-09 2009-10 2008-09

Defined Benefit obligation at beginning of the year 9 65 000 - 55 62 000 -

Current Service Cost 2 22 682 9 65 000 1 68 492 55 62 000

Interest Cost 72 375 - - -

Actuarial (gain)/ loss ( 4 27 506) - ( 19 83 248) 7 50 723

Benefits paid - - ( 32 38 543) (7 50 723)

Defined Benefit obligation at year end 8 32 551 9 65 000 5 08 701 55 62 000

II) Reconciliation of fair value of assets and obligations

In Rupees

Gratuity Leave Encashment

(Unfunded) (Unfunded)

2009-10 2008-09 2009-10 2008-09

Fair value of plan assets - - - -

Present value of obligation 8 32 551 9 65 000 5 08 701 55 62 000

Amount recognised in Balance Sheet 8 32 551 9 65 000 5 08 701 55 62 000

III) Expenses recognized during the year

In Rupees

Gratuity Leave Encashment(Unfunded) (Unfunded)

2009-10 2008-09 2009-10 2008-09

Current Service Cost 2 22 682 9 65 000 1 68 492 55 62 000

Interest Cost on benefit obligation 72 375 -

Actuarial (gain)/ loss recognised in the year ( 4 27 506) - ( 19 83 248) 7 50 723

Past service Cost - - - -

Net benefit expense/ (Income) ( 1 32 449) 9 65 000 ( 18 14 756) 63 12 723

Actual return on plan asset - - - -



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IV) Actuarial assumptions In Rupees

Gratuity Leave Encashment

(Unfunded) (Unfunded)

2009-10 2008-09 2009-10 2008-09

Discount rate (per annum) 7.50% 8.00% 7.50% 8.00%

Rate of escalation in salary (per annum) 6.00% 4.00% 6.00% 4.00%

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion

and other relevant factors including supply and demand in the employment market. The above information is certified by

the actuary.

6 Payment to Auditors (excluding Service Tax, wherever applicable): In Rupees

2009-10 2008-09

(i) Audit Fees 75 000 24 000

(ii) Tax Audit Fees 15 000 4 800

90 000 28 800

7 The Deferred Tax Assets (net) comprises of the following: In Rupees

As at As at31st March, 2010 31st March, 2009

(i) Deferred Tax Assets

- Disallowance under the Income Tax Act 1961 - 20 16 843

- Carried forward loss 8 00 50 057 4 09 58 709

(ii) Deferred Tax Liability -

- Disallowance under the Income Tax Act 1961 2 68 751 -

- Related to Fixed Assets 1 53 30 601 84 59 537

6 44 50 705 3 45 16 015

Note: The virtual certainty is based on agreements

8 General description of lease terms:

(i) Lease rentals are charged on the basis of agreed terms.

(ii) Assets are taken on lease over a period of 1 to 20 years.

9 Earnings Per Share (EPS)

2009-10 2008-09

(i) Net Profit/ (Loss) after tax as per Profit and Loss Account (In Rupees) (5 23 94 398) (7 79 22 745)

(ii) Weighted Average number of equity shares used as denominator for calculating EPS 50 000 50 000

(iii) Basic and Diluted Earnings/ (Loss) per share of face value of Rs. 10 each (Rupees) (1,047.89) (1,558.45)

SCHEDULE L (Contd.)



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10 Additional Information (to the extent applicable):

In Rupees

As at As at


a Capital Commitments:

Estimated amount of contracts remaining to be executed on capital accounts

(net of advances) and not provided for 8 38 085 53 01 607

b Outstanding guarantees furnished to Banks and Financial Institutions

including in respect of Letter of Credit 91 24 500 1 07 85 000

11 Value of Imports on CIF basis in respect of: In Rupees

2009-10 2008-09

Capital goods 98 727 91 65 253

12 Value of Stores and Packing Materials Consumed

2009-10 2008-09

% of % of

In Rupees Consumption In Rupees Consumption

Indigenous 21 07 773 100% 30 15 104 100%

13 Information as required under para 3, 4 and 4A to 4D of part II of schedule VI of Companies Act, 1956 are given to the

extent applicable.

14 As per Accounting Standard 18 Related Party Disclosures, notified in the Companies (Accounting Standards) Rules 2006,

the disclosures of transactions with the related parties as defined in the Accounting Standard are given below :

(i) List of related parties with whom transactions have taken palace and relationships :

Sr No Name of the Related Party Relationship

1 Reliance Industries Limited Ultimate Holding Company

2 Reliance Retail Limited Holding Company

3 Reliance Dairy Foods Limited }

4 Reliance Food Processing Solutions Limited }

5 Reliance Fresh Limited } Fellow Subsidiaries

6 Reliance Supply Chain Solutions Limited }

7 Reliance Wellness Limited }

8 Strategic Manpower Solutions Limited }

SCHEDULE L (Contd.)



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(ii) Transactions during the year with related parties (excluding reimbursements):

In Rupees

Sr Nature of Transactions Holding Fellow Total

No Company Subsidiaries

1 Unsecured loan taken/ (repaid) 14 00 19 653 - 14 00 19 653

19 61 49 751 - 19 61 49 751

2 Loan and Advances - 18 75 773 18 75 773

- - -

3 Turnover - 1 82 02 737 1 82 02 737

28 79 277 3 83 38 418 4 12 17 695

4 Purchases - 43 16 03 038 43 16 03 038

19 84 977 27 04 14 874 27 23 99 851

5 Expenditure

- Store Running Expenses - 55 33 367 55 33 367

67 303 26 19 581 26 86 884

- Warehousing and Distributions Expenses - 16 57 713 16 57 713

- - -

Balance as at 31st March, 2010

6 Share Captial 5 00 000 - 5 00 000

5 00 000 - 5 00 000

7 Unsecured loan 33 87 69 586 - 33 87 69 586

19 87 49 933 - 19 87 49 933

8 Loans and advance - 18 75 773 18 75 773

- - -

9 Sundry Debtors - 38 75 213 38 75 213

82 094 2 80 501 3 62 595

10 Sundry Creditors - 99 70 157 99 70 157- 4 17 93 822 4 17 93 822

11 Financial Guarantees taken 91 24 500 - 91 24 500

1 07 85 000 - 1 07 85 000

Note: Figures in Italics represents previous years amount.

SCHEDULE L (Contd.)



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Disclosure in respect of material Related Party Transactions during the year:

1 Loan taken includes Rs. 14 00 19 653 (Previous Year Rs. 19 61 49 751) from Reliance Retail Limited.

2 Turnover include to Reliance Fresh Limited Rs. 83 83 753 (Previous Year Rs. 1 48 02 015) and Reliance Food Processing

Solutions Limited Rs. 98 08 581 (Previous Year Rs. 2 35 36 403).

3 Purchase from Reliance Fresh Limited Rs. 11 24 25 580 (Previous Year Rs. 7 83 42 453) and Reliance Food Processing

Solutions Limited Rs. 30 11 22 636 (Previous Year Rs. 19 20 72 421).

4 Includes Store Running Charges to Strategic Manpower Solution Limited Rs. 55 33 367 (Previous Year Rs. 26 19 581)

and Warehousing and Distribution expenses to Reliance Supply Chain Solution Limited Rs. 16 57 713 (Previous Year

Rs Nil).

15 Quantitative Details In Rupees

Sr. Category Opening Stock Purchases Sales Closing Stock

Qty Amount Qty Amount Qty Amount Qty Amount

1 Agri Products - 4 61 20 994 - 73 11 47 386 - 74 33 29 811 - 4 80 62 345

- 12 05 655 - 52 09 87 849 - 46 51 45 610 - 4 61 20 994

* In view of the heterogeneous nature and non uniform units of measurement of items purchased and sold, details have been

furnished to the extent practicable and giving meaningful information.

SCHEDULE L (Contd.)





Partner Director


Mumbai




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I. Registration Details:

Registration No. U 5 2 I 0 0 M H 2 0 0 7 P L C 1 7 5 5 3 0

Balance Sheet Date: 3 1 - 0 3 - 2 0 1 0 State Code 1 1

II. Capital raised during the year: (Amount in Rs. Thousands)

Public Issue: N I L Rights Issue: N I L

Bonus Issue: N I L Private Placement: N I L

III. Capital raised during the year: (Amount in Rs. Thousands)

Total Liabilities: 3 8 6 7 9 7 Total Assets: 3 8 6 7 9 7

Sources of Funds:

Paid up Capital: 5 0 0 Net Fixed Assets: 8 0 0 7 2

Reserves and Surplus: N I L Investments: N I L

Secured Loans: N I L Deferred Tax Assets: 6 4 4 5 1

Unsecured Loans: 3 3 8 7 7 0 Current Assets: 1 1 1 6 1 1

Current Liabilities: 4 7 5 2 7 Miscellaneous Expenditure: 5

Accumulated Losses 1 3 0 6 5 8

IV. Performance of the Company: (Amount in Rs. Thousands)

Net Turnover: 7 4 5 3 9 7 Total Expenditure: 8 2 9 9 2 6

Profit / (-) Loss before tax: ( 8 2 3 2 9 ) Profit / (-) Loss after tax: ( 5 2 3 9 4 )

Earnings per Share in Rs: ( 1 0 4 7 . 8 9 ) Dividend Rate: N I L

V. Generic Names of principal products of the Company:

Item Code number N A

Product Description N A

Additinal information as required under Part IV of Schedule VI to the Companies Act, 1956

Balance Sheet Abstract and Companys General Business Profile

annual report - reliance agri products distribution limited

Documents