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Annual Report

2009 - 2010

RELIANCE AGRI PRODUCTS DISTRIBUTION LIMITED


Reliance Agri Products Distribution Limited 1

Directors’ Report

Dear Members, Dividend

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.

Profit/(Loss) after Tax (5 23 94 398) (7 79 22 745) Directors' Responsibility Statement

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

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


Companies Act, 1956, read with the Companies (Particulars Pankaj Pawar
of Employees) Rules, 1975, as amended, the names and other Director
particulars of the employees are set out in the Annexure to
this Report.
Place: Mumbai
Date: April 22, 2010
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
Reliance Agri Products Distribution Limited 3

Auditors’ Report

To the Members of e) On the basis of written representations received from


RELIANCE AGRI PRODUCTS DISTRIBUTION LIMITED the Directors as on March 31, 2010 and taken on
record by the Board of Directors, we report that
We have audited the attached Balance Sheet of RELIANCE none of the Directors is disqualified as on March 31,
AGRI PRODUCTS DISTRIBUTION LIMITED (‘the 2010 from being appointed as a director in terms of
Company’) as at March 31, 2010, the Profit and Loss Account clause (g) of sub-section (1) of section 274 of the
and also the Cash Flow Statement for the year ended on that Companies Act, 1956;
date. These financial statements are the responsibility of the
Company’s management. Our responsibility is to express an f) In our opinion and to the best of our information
opinion on these financial statements based on our audit. and according to the explanations given to us, the
said accounts give the information required by the
1. We have conducted our audit in accordance with the Companies Act, 1956, in the manner so required, and
Auditing Standards generally accepted in India. Those give a true and fair view in conformity with the
standards require that we plan and perform the audit to accounting principles generally accepted in India:
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit (i) in the case of the Balance Sheet, of the state of
includes examining, on a test basis, evidence supporting affairs of the Company as at March 31, 2010;
the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles (ii) in the case of the Profit and Loss Account, of
used and significant estimates made by the management, the loss for the year ended on that date; and
as well as evaluating the overall financial statement
presentation. We believe that our audit provides a (iii) in the case of the Cash Flow Statement, of the
reasonable basis for our opinion. cash flows for the year ended on that date.

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

a) We have obtained all the information and


Place: Mumbai
explanations, which to the best of our knowledge and
Date : April 22, 2010
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;
4 Reliance Agri Products Distribution Limited

Annexure referred to in Paragraph 2 of our report of even date


Re: Reliance Agri Porducts Distribution Limited (‘the Company’)

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

Annexure referred to in Paragraph 2 of our report of even date


Re: Reliance Agri Porducts Distribution Limited (‘the Company’)

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

17. According to the information and explanations given to Place: Mumbai


us and on an overall examination of the balance sheet of Date : April 22, 2010
the Company, we report that no funds raised on short-
term basis have been used for long-term investment.
6 Reliance Agri Products Distribution Limited

Reliance Agri Products Distribution Limited


Balance Sheet as at 31st March, 2010

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

For Chaturvedi & Shah C. R. Srinath


Chartered Accountants Director

Jignesh Mehta Pankaj Pawar


Partner Director
Membership No: 102749

Mumbai
Dated : 22nd April, 2010
Reliance Agri Products Distribution Limited 7

Reliance Agri Products Distribution Limited


Profit and Loss Account for the year ended 31st March, 2010

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

For Chaturvedi & Shah C. R. Srinath


Chartered Accountants Director

Jignesh Mehta Pankaj Pawar


Partner Director
Membership No: 102749

Mumbai
Dated : 22nd April, 2010
8 Reliance Agri Products Distribution Limited

Reliance Agri Products Distribution Limited


Cash Flow Statement for the year 2009-10

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

For Chaturvedi & Shah C. R. Srinath


Chartered Accountants Director

Jignesh Mehta Pankaj Pawar


Partner Director
Membership No: 102749

Mumbai
Dated : 22nd April, 2010
Reliance Agri Products Distribution Limited 9

Schedules forming part of the Balance Sheet

In Rupees

SCHEDULE A As at As at
31st March, 2010 31st March, 2009

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
31st March, 2010 31st March, 2009

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


10

SCHEDULE C

FIXED ASSETS In Rupees

Description Gross Block Depreciation Net Block

As at Additions Deductions/ As at Upto For the Deductions/ Upto As at As at


1st April, 2009 Adjustments 31st March, 2010 31st March, 2009 year Adjustments 31st March, 2010 31st March, 2010 31st March, 2009

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

Previous year - 3 90 13 816 29 32 515 3 60 81 301 - 8 32 986 - 8 32 986 3 52 48 315 -


Reliance Agri Products Distribution Limited

Capital Work-in-Progress 5 29 53 358 2 46 47 544

Notes:

Capital Work-in-Progress includes:


Schedules forming part of the Balance Sheet

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

Schedules forming part of the Balance Sheet

In Rupees

SCHEDULE D As at As at
31st March, 2010 31st March, 2009

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.
12 Reliance Agri Products Distribution Limited

Schedules forming part of the Balance Sheet

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

Schedules forming part of the Profit and Loss Account

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

Schedules forming part of the Profit and Loss Account

In Rupees
SCHEDULE 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


Reliance Agri Products Distribution Limited 15

Schedules forming part of the Balance Sheet

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

Schedules forming part of the Balance Sheet

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

Schedules forming part of the Balance Sheet

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

Schedules forming part of the Balance Sheet

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

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 - - - -
Reliance Agri Products Distribution Limited 19

Schedules forming part of the Balance Sheet

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

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


As at As at
31st 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)
20 Reliance Agri Products Distribution Limited

Schedules forming part of the Balance Sheet

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:

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 }


Reliance Agri Products Distribution Limited 21

Schedules forming part of the Balance Sheet

SCHEDULE L (Contd.)
(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 year’s amount.


22 Reliance Agri Products Distribution Limited

Schedules forming part of the Balance Sheet

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).

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.

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

For Chaturvedi & Shah C. R. Srinath


Chartered Accountants Director

Jignesh Mehta Pankaj Pawar


Partner Director
Membership No: 102749

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

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