12 reliance dairy foods limited

7/31/2019 12 Reliance Dairy Foods Limited

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RELIANCE DAIRY FOODS LIMITED

Annual Report2009 - 2010


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1Reliance Dairy Foods Limited

Directors Report

Dear Members,Your Directors are pleased to present the Fourth Annual Report

and the Audited Accounts for the year ended March 31, 2010.

Financial Results:

The performance of the Company for the financial year ended

March 31, 2010 is summarized below:

(Rupees in Lakh)

2009-2010 2008-2009

Profit/(Loss) before (386.31) (434.47)

Depreciation, Interest & Tax

Less: Interest 3.36 0.62

Depreciation 228.66 181.71

Profit/(Loss) before Tax (618.33) (616.80)

Less: Provision for Taxation

Fringe Benefit Tax - 10.14

Deferred Tax (203.04) (176.89)

Profit/(Loss) after Tax (415.29) (450.05)

Add: Balance brought

forward from previous year (763.39) (313.34)

Balance carried to (1,178.68) (763.39)

Balance Sheet

Operational Review:

The Company strengthened its presence in the milk retailing

business by launching Dairy Pure brand that are sold through

general milk retailers alongwith Reliance Fresh stores. The

Company presently operates in Andhra Pradesh, Haryana,

Tamil Nadu, Maharashtra, Delhi, Punjab, and Rajasthan and

is confident to further grow with the extension of product

portfolio.

The Company has incurred a loss of Rs. 415.29 Lakh 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

was appointed as an Additional Director on the Board with

effect from March 31, 2010. He shall hold office upto the date

of the ensuing Annual General Meeting. The Company hasreceived a notice under Section 257 of the Companies Act, 1956

from a member proposing the candidature of Shri Pankaj Pawar

for the office of Director, liable to retire by rotation.

Shri Gunender Kapur resigned from the office of Director of

the Company with effect from March 31, 2010. The Board

wishes to place on record the valuable contribution made by

him during his tenure as Director of the Company.

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 ResponsibilityStatement, it is hereby confirmed that:

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

March 31, 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 a

true 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 year under review;

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

the maintenance of adequate accounting records in

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 March 31, 2010 on a going concern basis.

Auditors:

During the year, Messrs 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, Mumbai

hold office until the conclusion of the ensuing Annual General

Meeting of the Company and are eligible for re 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.


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2 Reliance Dairy Foods Limited

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 1 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 ofenergy and technology absorption, are not applicable to

the Company.

ii. Foreign Exchange Earnings and Outgo:

Foreign Exchange Earned - Nil

Foreign Exchange Used - Rs. 189.18 Lakhs

Acknowledgement:

Your Directors would like to express their grateful appreciation

for assistance and cooperation received from Holding Company,

Customers, Suppliers, Banks, Government Authorities and

Employees during the year under review.

For and on behalf of the Board of Directors

Pankaj Pawar CR Srinath

Director Director

Place: Mumbai

Date: April 22, 2010


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Auditors Report

To the Members ofRELIANCE DAIRY FOODS LIMITED

We have audited the attached Balance Sheet of RELIANCE

DAIRY FOODS LIMITED 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

present 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.

For Chaturvedi & Shah

Firm Registration No: 101720W

Chartered Accountants

Amit Chaturvedi

Partner

Membership No.: 103141

Place: Mumbai

Date : April 22, 2010


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Annexure to referred to in paragraph 2 of our report of even dateRe: Reliance Dairy Foods Limited (the Company)

1. a) The Company ha s m aintaine d p rope r r ec or dsshowing 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 also 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 register

maintained under section 301. Therefore, the provisionsof 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 other

undisputed statutory dues were outstanding, as at

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

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

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


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Annexure to referred to in paragraph 2 of our report of even dateRe: Reliance Dairy Foods Limited (the Company)

us and based on the information available, no loans andadvances 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 not

applicable.

15. According to information and explanation given to us theCompany 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.

For Chaturvedi & Shah

Firm Registration No. : 101720W

Chartered Accountants

Amit Chaturvedi

Partner

Membership No.: 103141

Place: Mumbai

Date : April 22, 2010


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(Rs. in lakh)Schedule As at As at

31st March, 2010 31st March, 2009

SOURCES OF FUNDS

Shareholders Funds

Share Capital A 5.00 5.00

Loan Funds

Unsecured Loans B 8,970.87 6,484.08

TOTAL 8,975.87 6,489.08

APPLICATION OF FUNDS

Fixed Assets C

Gross Block 2,570.18 2,121.96

Less: Depreciation 454.00 225.34

Net Block 2,116.18 1,896.62

Capital Work-in-Progress 1,582.81 863.77

3,698.99 2,760.39

Deferred Tax Assets 528.83 325.79

Current Assets, Loans and Advances

Current Assets D

Inventories 4,976.53 3,913.95

Sundry Debtors 1,002.99 532.69

Cash and Bank Balances 342.28 141.78

6,321.80 4,588.42

Loans and Advances E 658.91 548.13

6,980.71 5,136.55

Less :

Current Liabilities and Provisions F

Current Liabilities 3,368.56 2,410.49

Provisions 42.78 86.55

3,411.34 2,497.04

Net Current Assets 3,569.37 2,639.51

Profit and Loss Account 1,178.68 763.39

TOTAL 8,975.87 6,489.08

Significant Accounting Policies K

Notes on Accounts L

Reliance Dairy Foods LimitedBalance Sheet as at 31st March, 2010

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

For Chaturvedi & Shah C.R.Srinath

Chartered Accountants Director

Amit Chaturvedi Pankaj Pawar

Partner Director

Membership No. 103141

Mumbai

Dated: 22nd April, 2010


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(Rs. in lakh)

Schedule 2009-10 2008-09

INCOME

Turnover 29,349.25 17,804.99

Other Income G 2.84 0.16

Variation in Stocks H 996.86 2,393.03

30,348.95 20,198.18

EXPENDITURE

Purchases 942.11 527.86

Manufacturing and Other Expenses I 29,793.15 20,104.79

Interest and Finance charges J 3.36 0.62


30,967.28 20,814.98

Profit/ (Loss) before Tax (618.33) (616.80)

Provision for Fringe Benefit Tax - 10.14

Provision for Deferred Tax (203.04) (176.89)

Profit/ (Loss) after Tax (415.29) (450.05)

Add: Balance brought forward from Previous Year (763.39) (313.34)

Balance carried to Balance Sheet (1,178.68) (763.39)

Basic and Diluted Earnings per Share of face valueof Rs 10 each (in Rupees) (830.58) (900.10)

(Refer Note 6, Schedule L)

Significant Accounting Policies K

Notes on Accounts L

Reliance Dairy Foods LimitedProfit and Loss Account for the year ended 31st March, 2010





Partner Director


Mumbai



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(Rs. in lakh)2009-10 2008-09

A: CASH FLOW FROM OPERATING ACTIVITIES:

Net Profit/ (Loss) before tax as per Profit and Loss Account (618.33) (616.80)

Adjusted for:


Dividend Income - (0.09)

Interest Income (2.84) (0.06)

Interest and Finance Charges 3.36 0.62

229.18 182.18

Operating Profit before Working Capital Changes (389.15) (434.62)

Adjusted for:

Trade and Other Receivables (580.29) (229.73)

Inventories (1,062.58) (2,690.22)

Trade Payables 874.25 (129.04)

(768.62) (3,048.99)

Cash Generated from Operations (1,157.77) (3,483.61)

Taxes Paid (0.79) (10.67)

Net Cash used in Operating Activities (1,158.56) (3,494.28)

B: CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (1,127.21) (1,379.00)

Purchase of Investments - (0.09)

Sale of Investments - 21.29

Interest Income 2.84 0.06

Dividend Income - 0.09

Net Cash from used in Investing Activities (1,124.37) (1,357.65)

C: CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from Long Term Borrowings 27,271.26 13,681.60

Repayment of Long Term Borrowings (24,784.47) (8,780.26)

Interest Paid (3.36) (0.62)

Net Cash from Financing Activities 2,483.43 4,900.72

Net Increase/ (Decrease) in Cash and Cash Equivalents 200.50 48.79

Opening Balance of Cash and Cash Equivalents 141.78 92.99

Closing Balance of Cash and Cash Equivalents 342.28 141.78

Reliance Dairy Foods LimitedCash Flow Statement for the year 2009-10





Partner Director


Mumbai



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SCHEDULE A

SHARE CAPITAL (Rs. in lakh)

As at As at


Authorised:

50 000 Equity Shares of Rs. 10 each 5.00 5.00

(50 000)

TOTAL 5.00 5.00

Issued, Subscribed and Paid-up:

Fully Paid-up

50 000 Equity Shares of Rs. 10 each 5.00 5.00

(50 000)

TOTAL 5.00 5.00

Note:

All the above 50 000 (Previous year 50 000) Equity Shares of Rs. 10 each are held by Reliance Retail Limited, the holding

company along with its nominees.

Schedules forming part of the Balance Sheet

(Rs. in lakh)

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

UNSECURED LOANS

Long Term Loan

From holding company 8,970.87 6,484.08

TOTAL 8,970.87 6,484.08


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(Rs. in lakh)SCHEDULE D As at As at


CURRENT ASSETS

INVENTORIES

Stores and Packing Materials 158.58 118.12

Raw Materials 383.78 358.52

Finished Goods/ Traded Goods 4,434.17 3,437.31

4,976.53 3,913.95

SUNDRY DEBTORS (Unsecured and Considered Good) (1)

Over six months 9.14 -

Others 993.85 532.69

1,002.99 532.69

CASH AND BANK BALANCES

Cash in Hand - 0.49

Balance with Scheduled Banks

In Current Accounts 342.18 141.19

In Fixed Deposit Accounts 0.10 0.10

342.28 141.78

TOTAL 6,321.80 4,588.42

Note:

(1) Includes Rs. 505.23 lakh (Previous Year Rs. 230.39 lakh) receivable from the following companies under same management:

a Reliance Agri Product Distribution Limited

b Reliance Fresh Limited

c Reliance Hypermart Limited

d Retail Concepts & Services ( India) Limited


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(Rs. in lakh)

SCHEDULE E As at As at


LOANS AND ADVANCES

Unsecured - (Considered good unless otherwise stated)

Advance Income Tax (net of Provision) 1.48 0.69

Advances Recoverable in Cash or in kind or for value to be received 639.46 529.26

Deposits 0.62 3.69

Balance with Service Tax/ Sales Tax Authorities, etc. 17.35 14.49

TOTAL 658.91 548.13

(Rs. in lakh)

SCHEDULE F As at As at


CURRENT LIABILITIES AND PROVISIONS

Current Liabilities

Sundry Creditors

- Micro enterprises and Small enterprises(1) - -

- Others(2) 3,368.56 2,410.49

3,368.56 2,410.49

Provisions

Provision for Leave Encashment/ Gratuity 42.78 86.55

TOTAL 3,411.34 2,497.04

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 togetherwith interest paid/ payable as required under the said Act have not been made.

(2) Includes Rs.45.60 lakh (Previous year Rs. 5.55 lakh) for capital expenditure.


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(Rs. in lakh)SCHEDULE G 2009-10 2008-09

OTHER INCOME

Dividend

From Current Investments - 0.09

Interest

From Others 2.84 0.07

TOTAL 2.84 0.16

(Rs. in lakh)

SCHEDULE H 2009-10 2008-09

VARIATION IN STOCKS

STOCK-IN-TRADE (at close)


STOCK-IN-TRADE (at commencement)


TOTAL 996.86 2,393.03

(Rs. in lakh)

SCHEDULE I 2009-10 2008-09

MANUFACTURING AND OTHER EXPENSES

RAW MATERIAL CONSUMED 25,063.82 16,608.02

MANUFACTURING EXPENDITURE

Stores and Packing Materials 653.48 481.05

Processing Charges 1,524.30 975.27

Machinery Repairs and Maintenance 21.54 9.12

Building Repairs and Maintenance 0.16 11.87

2,199.48 1,477.31

PAYMENT TO AND PROVISIONS

FOR EMPLOYEES

Salaries, Wages and Bonus 379.24 537.04

Contribution to Provident Fund, Gratuity Fund,

Superannuation Fund, Employees State Insurance Scheme,

Pension Scheme,Labour Welfare Fund etc. 27.15 28.14

Employee Welfare and other amenities 20.84 42.29

427.23 607.47SALES AND DISTRIBUTION EXPENSES

Samples, Sales Promotion and Advertisement Expenses 374.44 216.63

Store Running Expenses 204.84 92.90

Warehousing and Distribution Expenses 1,274.15 759.36

Sales Tax 5.19 -

1,858.62 1,068.89

Schedules forming part of the Profit and Loss Account


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SCHEDULE I (Contd.)

(Rs. in lakh)

2009-10 2008-09

OPERATING AND ESTABLISHMENT EXPENSES

Other Repairs 34.77 36.43

Rent 23.19 56.94

Insurance 7.97 5.32

Rates and Taxes 14.36 6.86

Travelling and Conveyance Expenses 46.18 69.50

Payment to Auditors 3.68 5.61

Professional Fees 48.86 88.27

Exchange Differences (Net) 4.52 (0.23)

Security Expenses - 3.07

Electricity Expenses 0.22 2.10

Telephone Expenses 11.58 17.92

Printing and Stationery 26.99 20.99

Hire Charges 4.03 9.00

General Expenses 17.65 21.32

244.00 343.10

TOTAL 29,793.15 20,104.79

(Rs. in lakh)

SCHEDULE J 2009-10 2008-09

INTEREST AND FINANCE CHARGES

Others 3.36 0.62

TOTAL 3.36 0.62

Schedules forming part of the Profit and Loss Account


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SCHEDULE KSIGNIFICANT ACCOUNTING POLICIES

1 Basis of Preparation of Financial Statements

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

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

2 Use of Estimates

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

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

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

materialised.

3 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.

4 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 amortised over the lower of estimated useful

life or lease period.

5 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.

6 Investments

Current investments are carried at the lower of cost and quoted/ fair value, computed category wise.

7 Inventories

Items of Inventories are measured at lower of cost and net realisable 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 location and

conditions. Costs are determined on weighted average basis.

8 Turnover

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

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

10 Provision for Current 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 realised in future.



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11 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 regrouped, rearranged and reclassified wherever necessary. Accordingly, 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 is mainly engaged in Organised Retail in India. All other activities of the Company revolve around with this

main business. Accordingly, the Company has only one identifiable segment reportable under Accounting Standard 17 onSegment Reporting, notified in the Companies (Accounting Standards) Rules 2006.

3 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 (Rs. in lakh)

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

2009-10 2008-09

Employers Contribution to Provident Fund 13.69 17.65

Employers Contribution to Pension Scheme 5.19 7.19

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 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

(Rs. in lakh)

Gratuity (Unfunded) Leave Encashment

(Unfunded)

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

Defined Benefit obligation at beginning of the year 15.35 18.88 71.20 44.13

Current Service Cost 5.95 5.62 4.17 13.94

Interest Cost 1.15 1.51 3.59 3.19

Actuarial (gain)/ loss (1.29) (10.66) (10.63) 18.43

Benefits paid - - (46.71) (8.49)

Defined Benefit obligation at year end 21.16 15.35 21.62 71.20

SCHEDULE K (Contd.)



18/23


II) Reconciliation of fair value of assets and obligations

(Rs. in lakh)


(Unfunded)

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

Fair value of plan assets - - - -

Present value of obligation 21.16 15.35 21.62 71.20

Amount recognised in Balance Sheet 21.16 15.35 21.62 71.20

III) Expenses recognized during the year

(Rs. in lakh)


(Unfunded)

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

Current Service Cost 5.95 5.62 4.17 13.94

Interest Cost on benefit obligation 1.15 1.51 3.59 3.19

Past service Cost - - - -

Actuarial (gain)/ loss recognized in the year (1.29) (10.66) (10.63) 18.43

Net benefit expense/ (Income) 5.81 (3.53) (2.87) (35.56)

Actual return on plan asset - - - -

IV) Expenses recognized during the year

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%

Expected rate of return on assets (per annum) - 8.00% - 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.

4 Payment to Auditors (excluding Service Tax, wherever applicable): (Rs. in lakh)

2009-10 2008-09

(i) Audit Fees 2.50 3.00

(ii) Tax Audit Fees 0.50 0.60

3.00 3.60

SCHEDULE L (Contd.)



19/23


5 The Deferred Tax Assets (net) comprise of the following: (Rs. in lakh)

As at As at


(i) Deferred Tax Assets

- Disallowance under the Income Tax Act, 1961 22.03 20.69

- Carried forward loss 777.37 453.32

(ii) Deferred Tax Liability

- Related to Fixed Assets 270.57 148.22

528.83 325.79

Note: The virtual certainty is based on Agreements

6 Earnings Per Share (EPS)

2009-10 2008-09

(i) Net Profit/ (Loss) after tax as per profit and loss account (Rs. in lakh) (415.29) (450.05)

(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) (830.58) (900.10)

7. Additional Information (to the extent applicable): (Rs. in lakh)

As at As at


(i) Capital Commitments:

Estimated amount of contracts remaining to be executed on capital

accounts (net of advances) and not provided for 471.22 -

(ii) Contingent Liabilities

Outstanding guarantees furnished to Banks and Financial Institutions

including in respect of Letters of Credit 9.15 10.15

(Rs. in lakh)

8 Expenditure in Foreign Currency: 2009-10 2008-09

Travelling and Conveyance Expenses 0.37 -

9 Value of Imports on CIF basis in respect of: (Rs. in lakh)

2009-10 2008-09

Capital goods 188.81 230.75

SCHEDULE L (Contd.)



20/23


10 Value of Stores and Packing Materials Consumed

2009-10 2008-09

Rs. in lakh % of Rs. in lakh % of

Consumption Consumption

Indigenous 653.48 100% 481.05 100%

11 Value of Raw Materials Consumed

2009-10 2008-09

Rs. in lakh % of Rs. in lakh % of

Consumption Consumption

Indigenous 25,063.82 100% 16,608.02 100%

12 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 Accounting Standard are given below :

(i) List of related parties with whom transactions have taken place 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 Agri Products Distribution Limited

4 Reliance Fresh Limited

5 Reliance Hypermart Limited

6 Reliance Infosolutions Private Limited Fellow Subsidiaries

7 Reliance Supply Chain Solutions Limited

8 Reliancedigital Retail Limited

9 Retail Concepts & Services ( India) Limited

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

(Rs. in lakh)

Sr Nature of Transactions Holding Fellow Total

No (excluding reimbursements) Company Subsidiaries

1 Unsecured Loans taken/ (repaid) 2,486.80 - 2,486.80

4,901.34 - 4,901.34

2 Turnover - 5,378.87 5,378.87

8.98 4,776.30 4,785.28

3 Purchases 34.04 26.25 60.29

- - -

4 Expenditure

- Professional Fees - 1.63 1.63

- 20.60 20.60

SCHEDULE L (Contd.)



21/23


SCHEDULE L (Contd.)(Rs. in lakh)

Sr Nature of Transactions Holding Fellow Total

No Company Subsidiaries

Balance as at 31st March, 2010

5 Unsecured Loan 8,970.87 - 8,970.87

6,484.06 - 6,484.06

6 Sundry Debtors - 505.23 505.23

14.78 215.61 230.39

7 Sundry Creditors - - -

- 0.07 0.07

8 Financial Gurantees taken 9.15 - 9.1510.15 - 10.15

Note: Figures in Italics represents previous years amount.

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

1 Unsecured Loan taken includes Rs. 2,486.80 lakh (Previous Year Rs. 4,901.34 lakh) from Reliance Retail Limited.

2 Turnover includes to Reliance Retail Limited Rs. Nil (Previous Year 8.98 lakh); Reliance Fresh Limited Rs. 5,138.92

lakh (Previous Year 4,703.67 lakh); Reliance Hypermart Limited Rs. 86.49 lakh (Previous Year 34.87 lakh); Reliance

Food Processing Solutions Limited Rs. Nil (Previous Year Rs. 33.42 lakh) and Retail Concepts & Service (India) Limited

Rs. 0.03 lakh (Previous Year Rs. 4.35 lakh).

3 Purchases from Reliance Fresh Limited Rs. 18.73 lakh (Previous Year Rs. Nil) and Reliancedigital Retail Limited

Rs. 6.51 lakh (Previous Year Rs. Nil)

4 Professional fees include to Reliance Infosolutions Private Limited Rs. 1.62 lakh (Previous Year Rs. Nil) and to Reliance

Supply Chain Solutions Limited Rs.Nil (Previous Year Rs.20.60 lakh).

13 Quantitative Details

A Raw Material Consumed In lakh

Particulars Unit Qty Amount

1 SMP Kg. 19.19 2,370.91

10.46 1,100.33

2 FAT Kg. 68.02 11,747.60

167.69 8,051.19

3 SNF Kg. 94.47 10,945.31

223.34 7,456.50

Total 181.68 25,063.82

401.49 16,608.02




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SCHEDULE L (Contd.)B Finished Goods/ Traded Goods (Rs. in lakh)

Particulars Opening Stock Produced Purchased Sale Closing Stock

Qty * Amount Qty * Qty * Amount Qty * Amount Qty * Amount

Dairy Products 3,437.31 942.11 29,349.25 4,434.17

1,044.28 599.03 17,804.99 3,437.31

Total 3,437.31 942.11 29,349.25 4,434.17

1,044.28 599.03 17,804.99 3,437.31


* In view of the heterogeneous nature and non-uniform units of measurement of items produced, purchased and sold,

details have been furnished to the extent practicable and giving meaningful information.

14 Information as required under para 3, 4 and 4A to 4D of part II of schedule VI of Companies Act, 1956 are given to theextent applicable.





Partner Director


Mumbai




23/23


I. Registration Details:

Registration No. U 1 5 4 1 9 M H 2 0 0 6 P L C 1 6 5 8 2 6

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

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

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

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

Share Application Money: N I L

III. Position of mobilisation and deployment of funds (Rupees in Thousands):

Total Liabilities: 1 2 3 8 7 2 1 Total Assets: 1 2 3 8 7 2 1

Sources of Funds: Application of Funds:

Paid up Capital: 5 0 0 Fixed Assets: 3 6 9 8 9 9

Share Application Money: N I L Investments: N I L

Reserves and Surplus: N I L Deferred Tax Assets: 5 2 8 8 3

Secured Loans: N I L Current Assets: 6 9 8 0 7 1

Unsecured Loans: 8 9 7 0 8 7 Miscellaneous Expenditure: N I L

Current Liabilities: 3 4 1 1 3 4 Accumulated Losses 1 1 7 8 6 8

IV. Performance of the Company (Rupees in Thousands):

Turnover: 2 9 3 4 9 2 5 Total Expenditure: 3 0 9 6 7 2 8

Profit/Loss Before Tax: ( 6 1 8 3 3 ) Profit/Loss After tax: ( 4 1 5 2 9 )

Earnings per Share in Rs:

- Basic ( 8 3 0 . 5 8 ) Dividend Rate: N I L

- Diluted ( 8 3 0 . 5 8 )

V. Generic Names of principal products of the Company:

Item Code number N A

Product Description N A

Additional information as required under part IV of the Schedule VI to the Companies Act, 1956

Balance Sheet Abstract and Companys General Business Profile:

12 reliance dairy foods limited

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