Escolar Documentos
Profissional Documentos
Cultura Documentos
2009 - 2010
Directors’ Report
Your Directors are pleased to present the Third Annual Report Your Directors have not recommended any dividend on Equity
and the Audited Accounts for the year ended on March 31, Shares for the year under review.
2010.
Directors
Financial Results
Pursuant to the provisions of Section 260 of the Companies
The financial performance of the Company for the year ended Act, 1956 and the Articles of Association, Shri Pankaj Pawar
on March 31, 2010 is summarized below: and Shri Ramesh Damani was appointed as Additional
Directors on the Board with effect from March 31, 2010 and
(Amount in Rupees) April 22, 2010 respectively. Shri Pankaj Pawar and Shri
Ramesh Damani shall hold office upto the date of the ensuing
2009-2010 2008-2009 Annual General Meeting. The Company has received notices
in writing under Section 257 of the Companies Act, 1956 from
Gross Profit/(Loss) before a member proposing the candidature of Shri Pankaj Pawar and
Depreciation, Interest and Tax (7 92 16 711) (11 03 55 439) Shri Ramesh Damani for the office of Director, liable to retire
by rotation. Your Directors recommend their appointment as
Directors of the Company.
Less: Interest - -
Shri Srinivasan Chakravarthy and Shri Sanjeev Kumar Asthana
Depreciation 31 12 377 8 32 986
resigned from the office of Director of the Company with
effect from March 31, 2010 and April 22, 2010 respectively.
Profit/(Loss) before Tax (8 23 29 088) (11 11 88 425)
The Board wishes to place on record the valuable contribution
made by them during their tenure as Director of the Company.
Less: Provision for
In accordance with the provisions of the Companies Act, 1956,
Fringe Benefit Tax - 10 74 848 Shri C. R. Srinath retires by rotation and being eligible, offers
himself for reappointment at the ensuing Annual General
Deferred Tax (2 99 34 690) (3 43 40 528) Meeting.
Balance brought forward (7 82 63 549) (3 40 804) Pursuant to the requirement under Section 217(2AA) of the
from Previous Year Companies Act, 1956 with respect to Directors' Responsibility
Statement, it is hereby confirmed that:
Balance carried to (13 06 57 947) (7 82 63 549)
Balance Sheet (i) in the preparation of the accounts for the year ended 31st
March, 2010, the applicable accounting standards have
Operational and Financial Review been followed and there are no material departures from
the same;
The Company through its wholesale distribution outlets and
agri-business centres sources staples, fruits, vegetables and (ii) the Directors have selected such accounting policies and
other agricultural produce. The Company also provides services applied them consistently and made judgments and
for procurement of agricultural products. estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company
The Company has incurred a loss of Rs. 5 23 94 398 for the at the end of the financial year and of the loss of the
financial year ended March 31, 2010. With the optimisation Company for the period under review;
of resources and further scaling up of operations, the Company
is confident of posting better results in the future. (iii) the Directors have taken proper and sufficient care for
the maintenance of adequate accounting records in
2 Reliance Agri Products Distribution Limited
accordance with the provisions of the Companies Act, in the Report of Board of Directors) Rules, 1988, are as under:
1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; i. Part A and B of the Rules, pertaining to conservation of
energy and technology absorption, are not applicable to
(iv) the Directors have prepared the accounts for the year the Company.
ended 31st March, 2010 on a 'going concern' basis.
ii. Foreign Exchange Earnings and Outgo:
Auditors
Foreign Exchange Earned : Rs. Nil
During the year, Messers S. R. Batliboi & Co., Chartered
Accountants, resigned as joint statutory auditors of the Foreign Exchange Used : Rs. 98 727
Company. Messrs Chaturvedi & Shah, Chartered Accountants,
continue as statutory auditor of the company. Messrs Acknowledgement
Chaturvedi & Shah, Chartered Accountants, Statutory Auditors
of the Company, hold office until the conclusion of the ensuing Your Directors would like to express their grateful appreciation
Annual General Meeting of the Company and are eligible for for assistance and cooperation received from Reliance Industries
re appointment. Limited, Reliance Retail Limited, Banks, Government
Authorities, Customers, Vendors, Employees and Members
The Company has received letter from them to the effect that during the year under review.
their re-appointment, if made, would be within the prescribed
limits under Section 224(1B) of the Companies Act, 1956 and For and on behalf of the Board of Directors
that they are not disqualified for such re-appointment within
the meaning of Section 226 of the Companies Act, 1956.
C. R. Srinath
Particulars of Employees Director
Auditors’ Report
2. As required by the Companies (Auditor’s Report) Order For Chaturvedi & Shah
2003 (as amended) issued by the Central Government of Firm Registration No: 101720W
India in terms of sub-section (4A) of section 227 of the Chartered Accountants
Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5
of the said Order.
Jignesh Mehta
3. Further to our comments in the Annexure referred to
Partner
above, we report that:
Membership No.: 102749
1. a) The Company has maintained proper records Act. 1956 that needs to be entered into the register
showing full particulars, including quantitative details maintained under section 301. Therefore, the provisions
and situation of fixed assets. of clause (v) (b) of the Companies (Auditor’s Report)
Order 2003, (as amended) is not applicable to the
b) Fixed assets have been physically verified by the Company.
management in a phased periodical manner as per
regular programme of verification, which in our 6. The Company has not accepted any deposit from the
opinion is reasonable, having regard to the size of public.
the Company and nature of its assets. As informed,
no material discrepancies were noticed on such 7. In our opinion, the Company has an internal audit system
physical verification. commensurate with the size and nature of its business.
c) There are no substantial disposals of fixed assets 8. To the best of our knowledge and as explained, the Central
during the year. Government has not prescribed the maintenance of cost
records under Section 209 (1) (d) of the Companies Act,
2. In respect of its inventories: 1956.
a) The inventory has been physically verified during 9. In respect of statutory dues:
the year by the management. In our opinion, the
frequency of verification is reasonable. a) According to the records of the Company, the
Company is regular in depositing with appropriate
b) The procedures of physical verification of inventories authorities undisputed statutory dues including
followed by the management are reasonable and provident fund, investor education and protection
adequate in relation to the size of the Company and fund, employees’ state insurance, income-tax, sales-
the nature of its business. tax, wealth-tax, service tax, customs duty, cess and
other statutory dues applicable to it. According to
c) The Company has maintained proper records of the information and explanations given to us, no
inventory. As explained to us, there were no material undisputed amounts payable in respect of provident
discrepancies noticed on physical verification of fund, investor education and protection fund,
inventory. employees’ state insurance, income-tax, wealth-tax,
service tax, sales-tax, customs duty, cess and other
3. The Company has neither granted nor taken any loan, undisputed statutory dues were outstanding, as at
secured or unsecured to/from companies, firms and other March 31, 2010 for a period of more than six months
parties covered in the Register maintained under Section from the date they became payable.
301 of the Companies Act, 1956.Therefore, the provisions
of clause (iii) (b), (c), (d), (f), (g) of the Companies b) According to the information and explanation given
(Auditor’s Report) Order 2003, (as amended) are not to us, there are no dues of sales tax, income tax,
applicable to the Company. wealth tax, service tax, custom duty, excise duty and
cess which have not been deposited on account of
4. In our opinion and according to the information and any dispute.
explanations given to us, there is an adequate internal
control system commensurate with the size of the 10. The Company has been registered for a period of less than
Company and the nature of its business, for the purchase five years and hence we are not required to comment on
of inventory and fixed assets and for the sale of goods whether or not the accumulated losses at the end of the
and services. During the course of our audit, no major financial year is fifty per cent or more of its net worth
weakness has been noticed in the internal control system and whether it has incurred cash losses in such financial
in respect of these areas. year and in the immediately preceding financial year.
5. According to information and explanation given to us, we 11. The company has not raised loans from Financial
are of the opinion that there are no contracts or Institutions or Banks or by issue of Debentures and hence
arrangements referred to in section 301 of the Companies Clause 4 (xi) of the Companies (Auditor’s Report) Order
Reliance Agri Products Distribution Limited 5
2003, (as amended) are not applicable to the Company. 18. The Company has not made any preferential allotment
of shares to parties and companies covered under Register
12. In our opinion and according to the explanations given to maintained under section 301 of the Companies Act, 1956.
us and based on the information available, no loans and
advances have been granted on the basis of security by 19. The Company did not have any outstanding debenture
way of pledge of shares, debentures and other securities. during the year.
13. In our opinion, the Company is not a chit fund or a nidhi/ 20. The Company has not raised any monies by way of public
mutual benefit fund/ society. Therefore, the provisions of issue during the year.
clause 4(xiii) of the Companies (Auditor’s Report) Order
2003, (as amended) are not applicable to the Company. 21. Based upon the audit procedures performed for the
purpose of reporting the true and fair view of the financial
14. In our opinion, the Company is not dealing or trading in statements and as per the information and explanations
shares, securities, debentures and other investments and given by the management, we have not come across any
therefore the provisions of clause (xiv) of the Companies instance of material fraud on or by the Company, noted
(Auditor’s Report) Order 2003, (as amended) are not or reported during the course of our audit.
applicable.
For Chaturvedi & Shah
15. According to information and explanation given to us the Firm Registration No : 101720W
Company has not given any guarantee for loans taken by Chartered Accountants
others from bank or financial institutions. Therefore, the
provisions of Clause (xv) of Companies (Auditor’s
Report) Order 2003, (as amended) are not applicable.
Jignesh Mehta
16. The term loans raised by the company were applied for Partner
the purpose for which loans were obtained. Membership No.: 102749
In Rupees
Schedule 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 48 315
Capital 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
As per our Report of even date For and on behalf of the Board
Mumbai
Dated : 22nd April, 2010
Reliance Agri Products Distribution Limited 7
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
As per our Report of even date For and on behalf of the Board
Mumbai
Dated : 22nd April, 2010
8 Reliance Agri Products Distribution Limited
In Rupees
2009-10 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
As per our Report of even date For and on behalf of the Board
Mumbai
Dated : 22nd April, 2010
Reliance Agri Products Distribution Limited 9
In Rupees
SCHEDULE A As at As at
31st March, 2010 31st March, 2009
SHARE CAPITAL
Authorised
Fully Paid-up
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
31st March, 2010 31st March, 2009
UNSECURED LOANS
SCHEDULE C
Plant and Machinery 13 68 861 3 54 670 3 20 484 14 03 047 95 168 2 68 910 66 926 2 97 152 11 05 895 12 73 693
Electrical Installations 93 80 429 10 94 924 34 05 951 70 69 402 1 24 206 4 78 034 1 97 782 4 04 458 66 64 944 92 56 223
Equipments 1 45 80 141 19 21 558 41 38 067 1 23 63 632 2 44 710 9 19 361 3 18 039 8 46 032 1 15 17 600 1 43 35 431
Furniture and Fixtures 29 32 515 13 34 507 11 86 774 30 80 248 51 512 2 62 286 93 279 2 20 519 28 59 729 28 81 003
Leasehold Improvements 78 19 355 5 94 102 23 90 225 60 23 232 3 17 390 11 83 786 4 48 779 10 52 397 49 70 835 75 01 965
Total 3 60 81 301 52 99 761 1 14 41 501 2 99 39 561 8 32 986 31 12 377 11 24 805 28 20 558 2 71 19 003 3 52 48 315
Notes:
i) Rs. 13 47 106 (Previous year Rs.13 50 042) on account of Advance against Project Contracts.
ii) Rs. 3 61 41 218 (Previous year Rs.1 39 52 986) on account of Project Development Expenditure.
iii) Rs. 1 49 65 034 (Previous year Rs.84 77 674) on account of construction materials at site.
Reliance Agri Products Distribution Limited 11
In Rupees
SCHEDULE D As at As at
31st March, 2010 31st March, 2009
CURRENT ASSETS
INVENTORIES
4 92 94 628 4 63 80 252
2 78 12 609 3 53 20 311
92 28 456 1 58 32 609
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.
12 Reliance Agri Products Distribution Limited
In Rupees
SCHEDULE E As at As at
31st March, 2010 31st March, 2009
LOANS AND ADVANCES
UNSECURED - (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 at
31st 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
Provisions
Provision 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 and
Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together
with 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 at
31st 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
Reliance Agri Products Distribution Limited 13
In Rupees
SCHEDULE 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, Employee’s 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
14 Reliance Agri Products Distribution Limited
In Rupees
SCHEDULE J (Contd.) 2009-2010 2008-2009
OPERATING AND ESTABLISHMENT EXPENSES
5 41 97 208 4 81 10 941
SCHEDULE K
SIGNIFICANT 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 and
conditions. 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.
16 Reliance Agri Products Distribution Limited
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-tax
Act, 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 year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other
disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in
relation 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 the
implementation period for bringing the project in the condition of its intended use, is treated as “Project Development
Expenditure” pending capitalisation and included in Capital Work-in-Progress. Capitalisation is done in the ratio of phased
implementation. 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
Reliance Agri Products Distribution Limited 17
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, the
disclosures 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
Employer’s Contribution to Provident Fund 8 23 490 12 02 034
Employer’s Contribution to Pension Scheme 3 41 454 6 33 863
18 Reliance Agri Products Distribution Limited
SCHEDULE L (Contd.)
Defined Benefit Plan
The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which
recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit
separately 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
SCHEDULE L (Contd.)
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
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)
20 Reliance Agri Products Distribution Limited
SCHEDULE L (Contd.)
10 Additional Information (to the extent applicable):
In Rupees
As at As at
31st March, 2010 31st March, 2009
a Capital Commitments:
2009-10 2008-09
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 :
SCHEDULE L (Contd.)
(ii) Transactions during the year with related parties (excluding reimbursements):
In Rupees
5 Expenditure
SCHEDULE L (Contd.)
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).
* 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.
As per our Report of even date For and on behalf of the Board
Mumbai
Dated : 22nd April, 2010
Reliance Agri Products Distribution Limited 23
Additinal information as required under Part IV of Schedule VI to the Companies Act, 1956
Balance Sheet Abstract and Company’s General Business Profile
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
Sources of Funds:
Accumulated Losses 1 3 0 6 5 8
Profit / (-) Loss before tax: ( 8 2 3 2 9 ) Profit / (-) Loss after tax: ( 5 2 3 9 4 )
Product Description N A