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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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3Reliance Agri Products Distribution Limited
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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4 Reliance Agri Products Distribution Limited
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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5Reliance Agri Products Distribution Limited
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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6 Reliance Agri Products Distribution Limited
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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7Reliance Agri Products Distribution Limited
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
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
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
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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9Reliance Agri Products Distribution Limited
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
Schedules forming part of the Balance Sheet
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Schedules forming part of the Balance Sheet
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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1Reliance Agri Products Distribution Limited
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.
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12 Reliance Agri Products Distribution Limited
Schedules forming part of the Balance Sheet
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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13Reliance Agri Products Distribution Limited
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
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14 Reliance Agri Products Distribution Limited
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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Schedules forming part of the Balance Sheet
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
Schedules forming part of the Balance Sheet
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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
Schedules forming part of the Balance Sheet
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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 - - - -
Schedules forming part of the Balance Sheet
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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.)
Schedules forming part of the Balance Sheet
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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 }
SCHEDULE L (Contd.)
Schedules forming part of the Balance Sheet
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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.)
Schedules forming part of the Balance Sheet
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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.)
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
Schedules forming part of the Balance Sheet
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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