6 Reliance Retail Limited

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RELIANCE RETAIL LIMITED

Annual Report2009 - 2010


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1Reliance Retail Limited

Directors Report

Dear Members,Your Directors are pleased to present the 12th 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

31st March, 2010 is summarised below:

(Rs. in lakhs)

Year ended Year ended

31-03-2010 31-03-2009

Net Turnover 27608.17 58407.52

Other Income & variation in stock 5762.04 2998.39

Gross Profit/(Loss) before Interest

and Depreciation (198.85) (1765.45)

Less: Interest 325.37 363.80

Depreciation 175.86 297.41

Profit/(Loss) before tax (700.08) (2426.66)

Provision for fringe benefit tax (220.06)

Provision for deferred tax 2522.42 622.18

Profit/(Loss) after tax 1822.34 (2024.54)

OVERVIEW OF OPERATIONS

The Company (RRL) through its wholly-owned subsidiaries,

operates multiple store formats, including Reliance Fresh, a

neighborhood concept, Reliance Mart, an all under one roofhypermarket concept, Reliance Super, a mini-mart concept,

Reliance Digital, a consumer durables & information technology

concept, Reliance Trends, an apparel & accessories concept,

Reliance Wellness, a health, wellness & beauty concept, iStore

by Reliance Digital, an exclusive Apple products concept,

Reliance Footprint, a footwear concept, Reliance Jewels, a

Jewellery concept, Reliance TimeOut, a books, music &

entertainment concept, Reliance AutoZone, an automotive

products & services concept and Reliance Living, a homeware,

furniture, modular kitchens, furnishings concept.

During the year, RRL continued to fulfill its commitment of

enriching Indian consumers shopping experience, and providing

quality merchandise at an attractive value proposition. More

than 3 years into operation, RRL has now expanded its presence

in more than 85 cities across 14 states in India. RRL forged

ahead with its expansion plans and rolled out stores across the

country. RRLs footprint now spans a network of more than

1,000 stores.

RRL also rapidly expanded the stores network it operates

through strategic partnerships with world-class companies such

as Marks and Spencer & Pearl Europe. RRL also entered into an

exclusive distribution arrangement with Asics Corporation Japanto market Asics brands of shoes and accessories in India. Diesel

Fashion India Reliance Private Limited, the Companys Joint

venture with Diesel, launched its first store in India in Mumbai

to an impressive response. In the coming year, RRL will also

open its stores in partnership with Office Depot and Hamleys.

Through Reliance One, RRLs loyalty membership program,

RRL enjoys the patronage of over 5.5 million customers.

In the coming year, RRL will continue on its mission to delight

the customers every visit. RRL will continue to provide

unprecedented value to customers across all its formats and

stores.

The Company has made a profit after tax of Rs. 1822.34 lakhs

on a turnover of Rs. 27608.17 lakhs for the financial year ended

on March 31, 2010. As the Company and its subsidiariescontinue to expand and grow, reaching out to customers in new

cities and towns, your directors are confident of a robust

performance of the Company and its subsidiaries in the coming

years.

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, Mr. Gwyn Sundhagul

was appointed as an Additional Director of the Company, with

effect from 22nd January, 2010 and he shall hold office upto the

date of the ensuing Annual General Meeting. Your Directorsrecommend his appointment as a Director of the Company

liable to retire by rotation.

In terms of the Articles of Association of the Company, Shri

Mukesh D. Ambani retires by rotation and being eligible, offers

himself for re-appointment 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 that there are no material departuresfrom 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 March 31, 2010 and of the profit of the Company for

the year ended on that date.


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2 Reliance Retail Limited

(iii) the Directors have taken proper and sufficient care forthe 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;

and

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

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

AUDITORS

During the year, M/s. S.R. Batliboi & Co., Chartered

Accountants, resigned as Joint Statutory Auditors of the

Company. To fill this vacancy, M/s. S.V. Ghatalia & Associates,

Chartered Accountants, were appointed as Joint Statutory

Auditors of the company.

M/s. Chaturvedi & Shah, Chartered Accountants and M/s. S.V.

Ghatalia & Associates Chartered Accountants, Statutory

Auditors of the Company, hold office until the conclusion of

the ensuing Annual General Meeting of the Company and are

eligible for re-appointment. The Company has received letters

from them to the effect that their appointment/re-appointment

if made, would be within the prescribed limits u/s 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.

AUDIT COMMITTEE:

The Audit Committee of the Board comprises of three Directors,

namely Shri Mukesh D. Ambani, Shri Manoj H Modi and Shri

Dipak C Jain. Shri Mukesh D. Ambani is the Chairman of theCommittee.

The role and functions of the Audit Committee are in conformity

with the requirements of Section 292A of the Companies Act,

1956.

SUBSIDIARY COMPANIES

The Company has applied to the Ministry of Corporate Affairs

(MCA) for granting approval that the requirement to attach

various documents in respect of subsidiary companies, as set

out in sub-section (1) of Section 212 of the Companies Act,

1956, shall not apply to the Company. The approval from

MCA is awaited. The Company shall be complying with the

Order of the MCA and if approved, these documents relating to

the subsidiary companies will not be attached to the balancesheet of the Company. The Consolidated Financial Statements

presented by the Company include the financial results of its

subsidiary companies.

CONSOLIDATED FINANCIAL STATEMENTS

In accordance with the Accounting Standard AS-21 on

Consolidated Financial Statements read with Accounting

Standard AS-23 on Accounting for Investments in Associates,the audited Consolidated Financial Statements are provided in

the Annual Report.

PERSONNEL

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

Companies Act, 1956, read with theCompanies (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

Particulars relating to conservation of energy, technology

absorption and foreign exchange earnings and outgo, required tobe 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 :

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

conservation of energy and technology absorption, are

not applicable to the Company.

ii. Foreign exchange earnings & outgo during the year under

review:

(Rs. In Lakh)

Total Foreign Exchange earned: Nil

Total Foreign Exchange outgo: 1163.96 lacs

ACKNOWLEDGEMENT

The Directors acknowledge the full support and cooperation

received from the holding company, Reliance Industries Limited,

Government authorities, banks, customers, vendors and

members for their valuable support and assistance.

The Directors also place on record their appreciation of the

tremendous commitment and excellent work done by all the

executives and staff of the Company during the year under

review.

For and on behalf of the Board of Directors

Mukesh D. Ambani

Chairman

Mumbai

23rd April, 2010


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Auditors Report

The Members of,RELIANCE RETAIL LIMITED

We have audited the attached Balance Sheet of RELIANCE

RETAIL LIMITED (the Company) as at March 31, 2010, the

Profit and Loss Account and the Cash Flow Statement for

the year ended on that date annexed thereto. 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 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, 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, the Profit and Loss

Account and the 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 stateof affairs of the Company as at March 31, 2010;

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

the profit 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 For S.V.Ghatalia & Associates

Firm Registration FirmRegistration

Number : 101720W Number: 103162W

Chartered Accountants Chartered Accountants

Rajesh D. Chaturvedi per Sudhir Soni

Partner Partner

Membership No.: 45882 Membership No.: 41870

Place: Mumbai Place: Mumbai

Date: April 23, 2010 Date: April 23, 2010


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Annexure referred to in paragraph 2 of our report of even dateRe: Reliance Retail 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 inventory

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 income tax, sales-tax,

wealth tax, service tax, customs duty and cess which

have not been deposited on account of any dispute.

10. The Companys accumulated losses at the end of the

financial year are less than fifty per cent of its net worth.

The Company has incurred cash loss in the current

financial year and also in the preceding financial year.

11. Based on our audit procedures and as per the information

and explanations given by the management, we are of the

opinion that the Company has not defaulted in repayment

of dues to banks. The Company has not borrowed any

funds from financial institutions or debenture holders

during the year under audit.


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

12. In our opinion and according to the explanations given tous 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. The Company has maintained proper records of

transactions and contracts in respect of dealing and trading

in other investments and timely entries have been made

therein. All the investments have been held by the

Company in its own name.

15. According to the information and explanations given to

us, the Company has given guarantee for loans taken by

others from bank or financial institutions, the terms and

conditions whereof in our opinion are not prima-facie

prejudicial to the interest of the Company.

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 allotment

of 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 debenturesduring 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.


Firm Registration FirmRegistration

Number : 101720W Number: 103162W


Rajesh D. Chaturvedi per Sudhir Soni

Partner Partner

Membership No.: 45882 Membership No.: 41870

Place: Mumbai Place: Mumbai

Date: April 23, 2010 Date: April 23, 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 573,000.00 405,100.00

Loan Funds

Secured Loans B 2,150.73 4,437.10

TOTAL 575,150.73 409,537.10

APPLICATION OF FUNDS

Fixed Assets C

Gross Block 6,909.58 2,750.31

Less: Depreciation 358.68 292.52

Net Block 6,550.90 2,457.79

Capital Work-in-Progress 6,367.21 10,766.68

12,918.11 13,224.47

Investments D 17,609.63 11,827.63

Deferred Tax Assets 3,750.10 1,227.68

Current Assets, Loans and Advances

Current Assets E

Inventories 19,167.40 13,776.18

Sundry Debtors 978.62 3,566.15

Cash and Bank Balances 3,058.86 7,329.86

23,204.88 24,672.19

Loans and Advances F 540,993.36 482,999.26

564,198.24 507,671.45

Less :

Current Liabilities and Provisions GCurrent Liabilities 24,439.14 125,858.98

Provisions 311.28 1,852.57

24,750.42 127,711.55

Net Current Assets 539,447.82 379,959.90

Miscellaneous Expenditure H 49.88 ` 99.89

(To the extent not written off or adjusted)

Profit and Loss Account 1,375.19 3,197.53

TOTAL 575,150.73 409,537.10

Significant Accounting Policies M

Notes on Accounts N

Reliance Retail LimitedBalance Sheet as at 31st March, 2010

As per our Report of even date



Rajesh D. Chaturvedi per Sudhir SoniPartner Partner

Membership No. 45882 Membership No. 41870

Mumbai

Dated : 23rd April 2010

For and on behalf of the Board

Mukesh D. Ambani Chairman

Manoj H. Modi Director

Prof. Dipak C. Jain Director

K. R. Raja Manager

K. Sridhar Asst. Company Secretary


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

INCOME

Turnover 29,071.90 62,231.36

Less: Service Tax Recovered 1,463.73 3,823.84

27,608.17 58,407.52

Other Income I 370.82 815.61

Variation in Stocks J 5,391.22 2,182.78

33,370.21 61,405.91

EXPENDITURE

Purchases 19,905.51 31,771.05

Operating and Other Expenses K 13,663.55 31,400.31

Interest and Finance charges L 325.37 363.80


34,070.29 63,832.57

Profit/ (Loss) before Tax (700.08) (2,426.66)

Provision for Fringe Benefit Tax - 220.06

Provision for Deferred Tax (2,522.42) (622.18)

Profit/ (Loss) after Tax 1,822.34 (2,024.54)

Add: Balance brought forward from Previous Year (3,197.53) (1,172.99)

Balance carried to Balance Sheet (1,375.19) (3,197.53)

Basic and Diluted Earnings per Share of face value

of Rs 10 each (in Rupees) 0.04 (0.05)

(Refer Note 11, Schedule N)

Significant Accounting Policies M

Notes on Accounts N

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






Mumbai






K. R. Raja Manager



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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 (700.08) (2,426.66)

Adjusted for:

Miscellaneous Expenditure written off 50.01 50.01

(Profit)/ Loss on sale/ Discarding of Assets (net) 97.68 175.87


Effect of Exchange Rate Change (207.23) 80.37

Dividend Income (10.79) (20.22)

Interest Income (344.23) (636.75)

Interest and Finance Charges 325.37 363.80

86.67 310.49

Operating Profit before Working Capital Changes (613.41) (2,116.17)

Adjusted for:

Trade and Other Receivables 5,020.33 398,801.47

Inventories (5,391.22) (2,182.31)

Trade Payables (102,968.34) 53,407.57

(103,339.23) 450,026.73

Cash Generated from Operations (103,952.64) 447,910.56

Taxes Paid (748.49) (235.09)

Net Cash from/ (used in) Operating Activities (104,701.13) 447,675.47

B: CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (40.00) (9,206.50)

Sale of Fixed Assets 290.42 1,576.80

Purchase of Investments (61,692.80) (70,838.35)

Sale of Investments 55,910.79 61,220.59

Loans to Subsidiaries (59,715.29) (428,854.61)

Dividend Income 10.79 20.22

Interest Income 381.11 636.75

Net Cash used in Investing Activities (64,854.98) (445,445.10)

Reliance Retail LimitedCash Flow Statement for the year 2009-10


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Reliance Retail LimitedCash Flow Statement for the year 2009-10

(Rs. in lakh)

2009-10 2008-09

C: CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from Issue of Share Capital 167,900.00 -

Proceeds from Long Term Borrowings 113.41 -

Repayment of Long Term Borrowings (573.96) (236.15)

Short Term Loans (1,825.82) (2,663.23)

Interest Paid (328.52) (363.80)

Net Cash from/ (used in) Financing Activities 165,285.11 (3,263.18)

Net Increase/ (Decrease) in Cash and Cash Equivalents (4,271.00) (1,032.81)

Opening Balance of Cash and Cash Equivalents 7,329.86 8,362.67

Closing Balance of Cash and Cash Equivalents 3,058.86 7,329.86






MumbaiDated : 23rd April 2010





K. R. Raja Manager



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SCHEDULE A

SHARE CAPITAL (Rs. in lakh)

As at As at


Authorised:

15,000,000,000 Equity Shares of Rs. 10 each 1,500,000.00 1,500,000.00

(15,000,000,000)

TOTAL 1,500,000.00 1,500,000.00

Issued, Subscribed, Called-up and Paid-up

Fully Paid-up

3,900,000,000 Equity Shares of Rs. 10 each fully paid-up 390,000.00 339,000.00

(3,390,000,000)

Partly Paid-up

6,100,000,000 Equity Shares of Rs.10 each partly paid-up of Rs.3 each 183,000.00 66,100.00

(6,610,000,000) (Previous Year partly paid-up of Re.1 each)

TOTAL 573,000.00 405,100.00

Notes:

1 Out of the above, Reliance Industries Limited, the holding company, holds 3,390,000,000 (Previous Year 3,390,000,000) fully

paid-up Equity Shares and 6,100,000,000 (Previous Year 6,100,000,000) partly paid-up Equity Shares.

2 The Company is authorised to issue up to forty nine crore Restricted Stock Units (RSUs) to eligible employees (including

employees of Reliance Industries Limited, the holding company) under Reliance Retail Restricted Stock Unit Plan 2007. The

RSUs vest on different dates over a period of sixteen years from the date of grant of RSUs as per the scheme announced and

upon vesting, the employees are entitled to one equity share of Rs. 10 each for every RSU. As on March 31, 2010, RSUs in force

total to five crore eleven lakh thirty six thousand three hundred ninety seven.

SCHEDULE B

SECURED LOANS (Rs. in lakh)

As at As at


Term Loans from Banks:

Rupee Loans (1) 346.63 807.18

Working Capital Loans from Banks:

Rupee Loans (2) 1,804.10 3,629.92

TOTAL 2,150.73 4,437.10

Notes:(1) Loans are secured by hypothecation of vehicles.

(2) Loans are secured by way of lien on all term deposits.

Schedules forming part of the Balance Sheet


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SCHEDULE

C

FIXEDASSETS

(Rs.inlakh

)

Description

GrossBlock

Depreciation

NetBlock

Asat

Additions

Deductions/

As

at

Upto

FortheYear

Deductions/

Upto

Asat

Asat

1stApril,2009

Adjustments

31stMar

ch,

2010

31stMarch,

2009

Adjustments

31stMarch,

2010

31stMarch,

2010

31stMarch,

2009

OWNASSETS:

FreeholdLand

-

1,4

07.2

6

-

1,4

07.2

6

-

-

-

-

1,4

07.2

6

-

PlantandMachinery

21.3

2

0.4

9

-

21.8

1

4.5

6

2.9

6

-

7.5

2

14.2

9

16.76

ElectricalInstallations

51.6

9

-

-

51.6

9

4.9

8

3.0

1

-

7.9

9

43.7

0

46.71

Equipments

274.4

4

6.8

2

-

281.2

6

66.8

8

20.7

4

-

87.6

2

193.6

4

207.56

FurnitureandFixtures

43.4

7

-

-

43.4

7

13.2

5

4.0

4

-

17.2

9

26.1

8

30.22

Vehicles

1,1

95.4

7

99.0

2

497.8

0

796.6

9

174.5

7

109.4

2

109.7

0

174.2

9

622.4

0

1,0

20.90

LeaseholdImprovements

153.4

9

-

-

153.4

9

17.8

1

14.0

1

-

31.8

2

121.6

7

135.68

Sub-Total

1,7

39.8

8

1,5

13.5

9

497.8

0

2,7

55.6

7

282.0

5

154.1

8

109.7

0

326.5

3

2,4

29.1

4

1,4

57.8

3

LeasedAssets:

LeaseholdLand

1,0

10.4

3

3,1

42.6

5

-

4,1

53.0

8

10.4

7

21.6

7

-

32.1

4

4,1

20.9

4

999.96

Sub-Total

1,0

10.4

3

3,1

42.6

5

-

4,1

53.0

8

10.4

7

21.6

7

-

32.1

4

4,1

20.9

4

999.9

6

IntangibleAssets:

Software

-

0.8

3

-

0.8

3

-

0.0

1

-

0.0

1

0.8

2

-

Sub-Total

-

0.8

3

-

0.8

3

-

0.0

1

-

0.0

1

0.8

2

-

Total

2,7

50.3

1

4,6

57.0

7

497.8

0

6,9

09.5

8

292.5

2

175.8

6

109.7

0

358.6

8

6,5

50.9

0

2,4

57.7

9

Previousyear

3,8

88.9

1

816.8

8

1,9

55.4

8

2,7

50.3

1

197.9

2

297.4

1

202.8

1

292.5

2

2,4

57.7

9

3,6

90.99

CapitalWork-in-Progress

6,3

67.2

1

10,7

66.68

Notes:

CapitalWork-in-Progressincludes:

i)Rs.4713.0

1lakh(Pr

eviousyearRs.9328.1

6lakh)onaccountof

AdvanceagainstProjectContracts.

ii)Rs.402.6

0lakh(PreviousyearRs.402.6

lakh)onaccountofProjectDevelopmentExpenditure.

iii)Rs.14.3

5lakh(Pre

viousyearRs.122.1

9lakh)onaccountofCapitalInventory.


13/35



SCHEDULE DINVESTMENTS (Rs. in lakh)

As at As at


LONG TERM INVESTMENTS

Trade Investments

In Equity Shares - Unquoted, Fully paid-up

280,000 Reliance Utilities and Power Private Limited (Class A Shares 2.80 2 .80

(280,000) of Re.1 each)

100,000 Reliance Utilities Private Limited (Class A Shares of Re.1 each) 1.00 1.00

(100,000)

3.80 3.80

Other Investments

In Equity Shares of Subsidiary Companies - Unquoted, Fully paid-up *

50,000 Reliance Agri Products Distribution Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Autozone Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Brands Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Dairy Foods Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Digital Media Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Food Processing Solutions Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Footprint Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Fresh Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance-GrandOptical Private Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Home Store Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Hypermart Limited of Rs.10 each 5.00 5.00

(50,000)50,000 Reliance Infrastructure Management Services Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Integrated Agri Solutions Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Lifestyle Holdings Limited of Rs.10 each 5.00 5.00

(50,000)


14/35



50,000 Reliance Nutritional Food Processors Limited of Rs.10 each 5.00 1.00

(10,000)

50,000 Reliance One Enterprises Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance People Serve Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Personal Electronics Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Replay Gaming Limited of Rs.10 each 5.00 1.00

(10,000)

2,020,000 Reliance Retail Finance Limited of Rs.10 each 202.00 202.00

(2,020,000)

4,000,000 Reliance Retail Insurance Broking Limited of Rs.10 each 400.00 200.00

(2,000,000)

50,000 Reliance Review Cinema Limited of Rs.10 each 5.00 1.00

(10,000)

1,010,000 Reliance Supply Chain Solutions Limited of Rs.10 each 101.00 101.00

(1,010,000)

50,000 Reliance Trade Services Centre Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Trends Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Universal Ventures Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliance Wellness Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Reliancedigital Retail Limited of Rs.10 each 5.00 5.00

(50,000)

50,000 Strategic Manpower Solutions Limited of Rs.10 each 5.00 5.00

(50,000)

833.00 621.00

SCHEDULE D (Contd.)

(Rs. in lakh)

As at As at



15/35


Investments in Joint Venture Companies - Unquoted, Fully paid-up *

1,462,650 Marks and Spencer Reliance India Private Limited of Rs.10 each 523.66 327.66

(1,217,650)

55,394,500 Marks and Spencer Reliance India Private Limited of Rs.5 each 9,940.17 6,216.17

(46,084,500)

11,000,000 Reliance-GrandVision India Supply Private Limited of Rs.10 each 1,100.00 700.00

(7,000,000)

20,500,000 Reliance Vision Express Private Limited of Rs.10 each 2,050.00 800.00

(8,000,000)

21,060,000 Reliance Vornado Development Private Limited of Rs.10 each 2,106.00 2,106.00

(21,060,000)

10,530,000 Reliance Vornado Management Private Limited of Rs.10 each 1,053.00 1,053.00

(10,530,000)

16,772.83 11,202.83

TOTAL 17,609.63 11,827.63

AGGREGATE VALUE OF

Unquoted Investments - Book Value 17,609.63 11,827.63

Movement in Investments

Investments Purchased and Sold during the year

Face Value Nos. Costin Rupees (in lakh) Rs. in lakh

Mutual Fund Units

ICICI Prudential Liquid Super Institutional Plan -Daily Dividend 10 3,860 38,608.46

ICICI Prudential Liquid Super Institutional Plan -Daily Dividend 100 173 17,302.33

Note:

*Investment in company under the same management


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

As at As at



16/35



SCHEDULE ECURRENT ASSETS (Rs. in lakh)

As at As at


INVENTORIES

Traded Goods 19,167.40 13,776.18

SUNDRY DEBTORS (Unsecured and Considered Good) (1)

Over six months 37.35 -

Others 941.27 3,566.15

978.62 3,566.15

CASH AND BANK BALANCESCash in Hand 81.82 83.92

Balance with Scheduled Banks

In Current Accounts 665.79 3,021.14

In Fixed Deposit Accounts 2,311.25 4,224.80

3,058.86 7,329.86

TOTAL 23,204.88 24,672.19

Note:

(1) Includes Rs. 820.68 lakh (Previous Year Rs.3110.00 lakh) receivable from the following companies under the same management.

a Reliance Fresh Limited

b Reliance Hypermart Limited

c Reliance Trends Limited

d Reliance Wellness Limited


17/35



SCHEDULE FLOANS AND ADVANCES

(Rs. in lakh)

As at As at


UNSECURED - (Considered good unless otherwise stated)

Loans to Subsidiary Companies 532,136.90 472,421.61

Advance Income Tax (net of Provision) 2,132.84 1,384.35

Advances Recoverable in Cash or in kind or for value to be received (1) 2,133.82 3,230.55

Deposits 3,411.44 4,026.96Balance with Service Tax/ Sales Tax Authorities, etc. 1,178.36 1,935.79

TOTAL 540,993.36 482,999.26

Note:

(1) Includes Rs. 14.68 lakh (Previous Year Rs.20.00 lakh) receivable from the following companies under the same management.

Maximum balance outstanding during the year Rs. 64.66 lakh (Previous Year Rs. 20.00 lakh)

a Reliance Autozone Limited

b Reliance Food Processing Solutions Limited

c Reliance Footprint Limited

d Reliance Hypermart Limited

e Reliance Universal Ventures Limited

f Reliancedigital Retail Limited


18/35



SCHEDULE G(Rs. in lakh)

As at As at


CURRENT LIABILITIES AND PROVISIONS

Current Liabilities

Sundry Creditors

- Micro enterprises and Small enterprises(1) - -

- Others(2) 24,435.99 125,858.98

Interest accrued but not due on loans 3.15 -

24,439.14 125,858.98

ProvisionsProvision for Leave Encashment/ Superannuation/ Gratuity 311.28 1,852.57

TOTAL 24,750.42 127,711.55

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. 5.33 lakh (Previous Year Rs. 613.19 lakh) payable to Subsidiaries and Rs. 624.85 lakh (Previous Year Rs. 423.21

lakh) for capital expenditure.

SCHEDULE H

MISCELLANEOUS EXPENDITURE

(to the extent not written off or adjusted)(Rs. in lakh)

As at As at


Issue Expenses

As per last Balance Sheet 99.89 149.90

Less : Written - off during the year 50.01 50.01

TOTAL 49.88 99.89


19/35


Schedules forming part of the Profit and Loss Account

SCHEDULE I

OTHER INCOME

(Rs. in lakh)

2009-10 2008-09

Dividend

From Current Investments 10.79 20.22

Interest

From Others 344.23 636.75

[Tax Deducted at Source Rs. 67.67 lakh (Previous Year Rs. 60.81 lakh)]

Profit on Sale of Assets 0.05 1.93

Miscellaneous Income 15.75 156.71

TOTAL 370.82 815.61

SCHEDULE J

VARIATION IN STOCKS (Rs. in lakh)

2009-10 2008-09

STOCK-IN-TRADE (at close)

Traded Goods 19,167.40 13,776.18

STOCK-IN-TRADE (at commencement)

Traded Goods 13,776.18 11,593.40

TOTAL 5,391.22 2,182.78

SCHEDULE K

OPERATING AND OTHER EXPENSES

(Rs. in lakh)

2009-10 2008-09

PAYMENT TO AND PROVISIONS

FOR EMPLOYEES

Salaries, Wages and Bonus 2,662.66 10,601.42

Contribution to Provident Fund, Gratuity Fund, 249.25 767.20

Superannuation Fund, Employees State Insurance Scheme,

Pension Scheme,Labour Welfare Fund etc.Employee Welfare and other amenities 341.62 839.07

3,253.53 12,207.69


20/35


Schedules forming part of the Profit and Loss Account

SALES AND DISTRIBUTION EXPENSES

Samples, Sales Promotion and Advertisement Expenses 337.25 57.01

Store Running Expenses 4,661.74 7,728.87

Brokerage, Discount and Commission - 8.94

Warehousing and Distribution Expenses 72.62 132.70

5,071.61 7,927.52

OPERATING AND ESTABLISHMENT EXPENSES

Stores and Packing Materials 84.42 1,056.52

Machinery Repairs 5.92 2.96Building Repairs 279.60 286.20

Other Repairs 349.45 878.05

Rent including Lease Rentals 2,455.89 3,575.14

Insurance 84.01 238.94

Rates and Taxes 37.13 113.88

Travelling and Conveyance Expenses 315.47 1,243.56

Payment to Auditors 84.32 58.50

Professional Fees 1,504.57 1,817.87

Loss on Sale/ Discarding of Assets 97.73 177.80

Exchange Differences (Net) (954.07) 250.75

Security Expenses 275.46 381.68

Electricity Expenses 189.07 220.27

Telephone Expenses 59.06 258.48

Printing and Stationery 24.06 101.40

Hire Charges 205.95 522.44

General Expenses 190.06 30.45

Charity and Donation 0.30 0.20

5,288.40 11,215.09

Miscellaneous Expenditure written off 50.01 50.01

TOTAL 13,663.55 31,400.31

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

2009-10 2008-09

SCHEDULE L

INTEREST AND FINANCE CHARGES(Rs. in lakh)

2009-10 2008-09

Fixed Loans 315.39 343.06

Others 9.98 20.74

325.37 363.80


21/35



SCHEDULE MSIGNIFICANT ACCCOUNTING 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 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. Allcosts, 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 Impairment of Assets

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

when 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 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; fire alarm system, signage and access control system are depreciated over the estimated useful life of five

years; baskets are depreciated over the estimated useful life of three years and Software amortised over a period of 5 years.

7 Intangible Assets

Intangible Assets are stated at cost of acquisition less accumulated amortisation.

8 Foreign Currency Transactions

i) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction

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

ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are

covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is

recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

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

iv) 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 liabilities, where they relate to acquisition of fixed assets, in which case they

are adjusted to the carrying cost of such assets.

9 Investments

Current Investments are carried at lower of cost and quoted/ fair value, computed category wise. Long Term Investments are

stated at cost. Provision for diminution in the value of Long Term Investments is made only if such a decline is other than

temporary.


22/35



10 Inventories

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

inventories comprises of cost of purchase and other costs incurred in bringing them to their respective present location and

condition. Costs are determined on weighted average basis.

11 Turnover

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

12 Employee Benefits

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

the year in which the related service is rendered.

ii) Post employment and other long term employee benefits are recognised in the Profit and Loss Account in the year in which

the employee has rendered services. The amount charged off is recognised at the present value of the amount payabledetermined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long

term benefits are charged to Profit and Loss Account.

iii) In respect of employees stock options, the excess of fair price on the date of grant over the exercise price is recognised as

deferred compensation cost amortised over the vesting period.

13 Miscellaneous Expenditure

Preliminary and Issue expenses incurred are amortised over a period of 5 years.

14 Financial Derivatives and Commodity Hedging Transactions

In respect of derivative contracts, premium paid, gains/ losses on settlement and provision for losses on restatement are

recognised along with the underlying transactions and charged to Profit and Loss Account, except in case where the related

underlying physical transactions is held as inventory, in which case, they are adjusted to the carrying cost of inventory.

15 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 differences 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.

16 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 M (Contd.)


23/35


SCHEDULE NNOTES ON ACCOUNTS

1 The previous years figures have been reworked, 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 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. The 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):

(Rs. in lakh)

2009-10 2008-09

Opening Balance 402.60 1,845.69

Less:

Transferred to Subsidiary under slump sale - 1,443.09

Closing Balance 402.60 402.60

3 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.

4 Additional Information (to the extent applicable):

(Rs. in lakh)

As at As at


a Capital Commitments

Estimated amount of contracts remaining to be executedon capital accounts (net of advances) and not provided for

(a) In respect of Joint Ventures 160.65 -

(b) In respect of Others - 1 031.73

b Contingent Liabilities

(i) Outstanding guarantees furnished to Banks including

in respect of Letters of credit

(a) In respect of Joint Ventures 3.65 -

(b) In respect of Others 1 310.21 1 047.38

(ii) Guarantees to Banks against credit facilities extended to third parties

(a) In respect of Joint Ventures - -

(b) In respect of Others 1 960.00 -

(iii) Claims against the Company/ disputed liabilities not acknowledged as debts(a) In respect of Joint Ventures 1.15 -

(b) In respect of Others 1 141.01 -

5 Turnover includes Income from Services of Rs. 12,145.64 lakh (Previous Year Rs.27,739.06 lakh).

6 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:



24/35



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 242.56 527.40

Employers Contribution to Superannuation Fund 42.57 75.79

Employers Contribution to Pension Scheme 36.07 94.55

The Companys Provident Fund is exempted under Section 17 of Employees Provident Fund and Miscellaneous Provisions

Act, 1952. Conditions for grant of exemptions stipulates that employer shall make good deficiency, if any, in the interest rate

declared by trust vis-a-vis statutory rate.

Defined Benefit Plan

The employees gratuity fund scheme managed by a Trust is a defined benefit plan and the Plan assets are invested with Life

Insurance Corporation. The present value of obligation is determined based on actuarial valuation using the Projected UnitCredit 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.

I. Reconciliation of opening and closing balances of Defined Benefit obligation (Rs. in lakh)

Gratuity Leave Encashment

(Funded) (Unfunded)

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

Defined Benefit obligation at beginning of the year 312.65 494.36 1 541.83 1 486.62

Current Service Cost 68.44 101.11 50.22 267.29

Interest Cost 19.76 39.42 79.68 109.08

Contribution by the plan participants - - - -

Actuarial (gain)/ loss ( 164.26) ( 318.96) ( 401.79) ( 75.01)

Benefits paid ( 14.41) ( 3.28) ( 958.66) ( 246.15)

Defined Benefit obligation at year end 222.18 312.65 311.28 1 541.83

II. Reconciliation of opening and closing balances of fair value of plan assets

(Rs. in lakh)

Gratuity

(Funded)

2009-10 2008-09

Fair value of plan assets at beginning of the year 551.16 494.36

Expected return on plan assets 52.43 39.55

Actuarial gain/ (loss) - 17.25

Employer contribution(Refund) 7.25 3.28

Benefits Paid ( 14.41) ( 3.28)

Fair value of plan assets at year end 596.43 551.16

SCHEDULE N (Contd.)


25/35



III. Reconciliation of fair value of assets and obligations(Rs. in lakh)

Gratuity Leave Encashment(Funded) (Unfunded)

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

Fair value of plan assets 596.43 551.16 - -

Present value of obligation 222.18 312.65 311.28 1 541.83

Amount recognised in Balance Sheet 374.25 238.51 311.28 1 541.83

IV. Expenses recognized during the year (Rs. in lakh)


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

Current Service Cost 68.44 101.11 50.22 267.29

Interest Cost on benefit obligation 19.76 39.42 79.68 109.08

Actuarial (gain)/ loss recognized in the year (164.26) (318.96) (401.79) (75.01)

Expected return on plan assets (52.43) (39.55) - -

Past Service Cost - - - -

Net benefit expense/ (Income) (128.49) (217.98) (271.89) 301.36

Actual return on plan asset 52.43 39.55 - -

V. Actuarial assumptions


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

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

Expected rate of return on plan assets (per annum) 8.00% 8.00% Ni l 8.00%

Rate of escalation in salary (per annum) 6% 4% 6% 4%

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotionand other relevant factors including supply and demand in the employment market. The above information is certified bythe actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition ofplan assets held, assessed risks, historical results of return on plan assets and the Companys policy for plan assetsmanagement.

7 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 79.10 64.18- Carried forward loss 2 159.62 30 613.42

- Related to Fixed Assets 1 511.38 -

(ii) Deferred Tax Liability

- Related to Fixed Assets - 29 449.92

3,750.10 1,227.68

Note : The virtual certainty is based on agreements.

SCHEDULE N (Contd.)


26/35



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

2009-10 2008-09

(i) Audit Fees 50.00 45.00

(ii) Tax Audit Fees 10.25 9.00

(iii) Fees For Certification and Consultation Work 7.50 4.50

(iv) Expenses Reimbursed 5.89 -

73.64 58.50

9 General description of Lease terms :

a Lease rentals are charged on the basis of agreed terms.

b Assets are taken on lease over a period of 1 to 30 years.

10 Managerial Remuneration (Rs. in lakh)

2009-10 2008-09

(i) Salaries 40.36 34.41

(ii) Perquisites and Allowances 0.38 1.48

(iii) Leave salary/ Encashment 5.30 -

(iv) Contribution to Provident Fund 4.74 4.74

(v) Gratuity 1.90 1.90

52.68 42.53

11 Earnings Per Share (EPS)

2009-10 2008-09

(i) Net Profit after tax as per Profit and Loss Account (Rs. in lakh) 1,822.34 (2,024.54)

(ii) Weighted Average number of Equity Shares used as denominator 4 05 56 00 000 40 10 00 000

for calculating EPS

(iii) Basic and Diluted Earnings/ (Loss) per share of face value 0.04 (0.05)of Rs. 10 each (Rupees)

12 Financial and Derivative InstrumentsDerivative contracts entered into by the Company and outstanding as on 31st March, 2010

i) For Hedging Currency Related Risks:

Nominal amounts of Forward contracts entered into by the Company and outstanding as at 31st March, 2010 amount toRs. 9,025.63 lakh (Previous Year Rs.2,070.11 lakh).

ii) For Hedging Commodity Related Risks:

Forward contract for hedging the price risk of gold entered into by the Company and outstanding as at 31st March, 2010amount to Rs. 9,274.28 lakh for 571.84 kg (Previous Year Rs.7,649.88 lakh for 525.06 kg).

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

2009-10 2008-09

a Traded Goods - 3 88.66

b Capital goods - 2 14.42

SCHEDULE N (Contd.)


27/35



14 Expenditure in Foreign Currency: (Rs. in lakh)

2009-10 2008-09

a Professional Fees 11 48.17 2.77

b Other matters 15.79 2.71

11 63.96 5.48

15 Value of Stores and Packing Materials Consumed

2009-10 2008-09

Rs. in lakh % of Consumption Rs. in lakhs % of Consumption

Indigenous 84.42 100% 10 56.52 100%

16 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.

17 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 :

a) List of related parties with whom transactions have taken place and relationships:

Sr Name of the Related Party Relationship

No

1 Reliance Industries Limited Holding Company

2 Reliance Agri Products Distribution Limited }

3 Reliance Autozone Limited }

4 Reliance Brands Limited }

5 Reliance Dairy Foods Limited }

6 Reliance Digital Media Limited }

7 Reliance F&B Services Limited }

8 Reliance Financial Distribution and Advisory Services Limited }

9 Reliance Food Processing Solutions Limited }

10 Reliance Footprint Limited }

11 Reliance Fresh Limited }

12 Reliance Gems and Jewels Limited }

13 Reliance-GrandOptical Private Limited } Subsidiary Companies

14 Reliance Home Store Limited }

15 Reliance Hypermart Limited }

16 Reliance Infrastructure Management Services Limited }

17 Reliance Integrated Agri Solutions Limited }

18 Reliance Leisures Limited }

19 Reliance Lifestyle Holdings Limited }

20 Reliance Loyalty & Analytics Limited }

21 Reliance Nutritional Food Processors Limited }

22 Reliance One Enterprises Limited }

SCHEDULE N (Contd.)


28/35



Sr Name of the Related Party Relationship

No

23 Reliance People Serve Limited }

24 Reliance Personal Electronics Limited }

25 Reliance Petro Marketing Limited }

26 Reliance Replay Gaming Limited }

27 Reliance Retail Finance Limited }

28 Reliance Retail Insurance Broking Limited }

29 Reliance Retail Securities and Broking Company Limited }

30 Reliance Retail Travel & Forex Services Limited }

31 Reliance Review Cinema Limited }

32 Reliance Supply Chain Solutions Limited }

33 Reliance Trade Services Centre Limited }

34 Reliance Trends Limited } Subsidiary Companies

35 Reliance Universal Ventures Limited }

36 Reliance Vantage Retail Limited }

37 Reliance Wellness Limited }

38 Reliancedigital Retail Limited }

39 RESQ Limited }

40 Retail Concept & Services ( India) Limited }

41 Delight Proteins Limited }

42 LPG Infrastructure (India) Limited }

43 Strategic Manpower Solutions Limited }

44 Reliance Corporate IT Park Limited } Fellow Subsidiary

45 Reliance Vornado Development Private Limited }

46 Reliance Vornado Management Private Limited }

47 Reliance-GrandVision India Supply Private Limited } Joint Venture Companies

48 Reliance-Vision Express Private Limited }

49 Marks and Spencer Reliance India Private Limited }

50 eOfficeplanet India Private Limited Associate

51 Mr.Raghu Pillai Key Managerial Personnel

SCHEDULE N (Contd.)


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

(Rs. in lakh)

Sr Nature of Transactions Holding Subsidiaries Fellow Joint Key TotalNo Company Subsidiaries Venture and Managerial

Associate PersonnelCompanies

1 Additional Share Capital 1220 00.00 - - - - 1220 00.00

- - - - - -

2 Purchase of Investments - 2 12.00 - 55 70.00 - 57 82.00

- 1 16.50 - 112 02.83 - 113 19.33

3 Sale/ redemption during the year - - - - - -

- 5.00 - - - 5.00

4 Loans and Advances given/ (returned) ( 64.66) 597 15.29 - ( 20.00) - 596 30.63

64.66 4203 55.60 - 7 57.40 - 4211 77.66

5 Turnover 119 63.39 7 31.04 - - - 126 94.43

274 90.84 180 74.19 10.50 40.00 - 456 15.53

6 Purchases 39 46.19 52.75 - - - 39 98.94

1 25.07 19 18.42 - - - 20 43.49

7 Expenditure- Store Running Expenses - 45 66.83 - - - 45 66.83

- 70 74.09 - - - 70 74.09

- Rent - - - - - -

- - 1.53 - - 1.53

- Professional Fees - - - 6.62 - 6.62

- - 1.80 - - 1.80

- Printing and Stationery - - - 3.23 - 3.23

- - - - - -

8 Payment to Key Managerial Personnel - - - - 52.68 52.68

- - - - 42.53 42.53

Balance as at 31st March, 2010

9 Share Capital 5220 00.00 - - - - 5220 00.00

4000 00.00 - - - - 4000 00.00

10 Investments - 8 33.00 - 167 72.83 - 176 05.83

- 6 21.00 - 112 02.83 - 118 23.83

11 Loans and Advances - 5321 51.59 - - - 5321 51.59

64.66 4724 21.61 - 20.00 - 4725 06.27

12 Sundry Debtors - 8 20.68 - - - 8 20.68- 33 69.45 11.71 44.81 - 34 25.97

13 Sundry Creditors 191 98.53 5.33 41.37 .62 - 192 45.85

1180 10.24 6 13.19 1.84 - - 1186 25.27

14 Financial Guarantees given - 12 31.01 - 3.65 - 12 34.66

- 8 55.67 - - - 8 55.67

Note : Figures in italics represent previous years amount.

SCHEDULE N (Contd.)


30/35



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

a Additional Investment in Share Capital includes the receipt of call money against the partly paid shares from RelianceIndustries Limited to the extent of Rs.122,000.00 lakh (Previous Year Nil).

b Purchase of Investment includes subscription to the Equity Shares of Reliance Retail Insurance Broking Limited Rs.200lakh (Previous Year Nil), Marks and Spencer Reliance India Private Limited Rs.3920.00 lakh (Previous Year Rs.6543.83lakh) and Reliance Vision Express Private Limited Rs.1250.00 lakh (Previous Year Rs.800.00 lakh).

c Loans and Advances given/ (returned) include to Reliance Fresh Limited Rs.32,455.52 lakh (Previous Year Rs.1,55,975.00lakh), Reliance Trends Limited Rs.7810.49 lakh (Previous Year Rs.Nil), Reliancedigital Retail Limited Rs.5738.38 lakh(Previous Year Rs.Nil), Reliance Lifestyle Holdings Limited Rs.5609.14 lakh (Previous Year Rs.Nil) and Reliance HypermartLimited Rs.612.33 lakh (Previous Year Rs.1,37,586 lakh).

d Turnover includes to Reliance Industries Limited. Rs. 11,963.39 lakh (Previous Year Rs.27,490.84 lakh), Reliance DairyFoods Limited Rs.34.04 lakh (Previous Year Nil), Reliance Fresh Limited Rs. 20.47 Lakh (Previous Year Rs.7,227.72 lakh),Reliance Hypermart Limited Rs. 605.64 lakh (Previous Year Rs.5,465.28 lakh), Reliance Trends Limited Rs. 25.56 lakh

(Previous Year Rs.2995.88 lakh) and Reliance Leisures Limited Rs.24.51 lakh (Previous Year Nil).e Purchases include from Reliance Industries Limited. Rs. 3,946.19 lakh (Previous Year Rs.125.07 lakh) and Reliance Hypermart

Limited. Rs. 46.59 lakh (Previous Year Rs.Nil).

f Store Running Expenses includes Strategic Manpower Solutions Limited Rs.4456.52 lakh (Previous Year Rs.6874.09 lakh).

g Professional Fees consists of Reliance Vornado Development Private Limited Rs.6.62 lakh (Previous Year Rs.Nil).

h Printing and Stationery from eOffice Planet India Private Limited Rs.3.23 lakh (Previous Year Rs.Nil).

i Payment to Key Managerial Personnel consists of payment of Rs.52.68 lakh (Previous Year Rs.42.53 lakh) to Shri RaghuPillai.

18 Loans and advances in the nature of Loans given to Subsidiaries/ Joint Venture:

(Rs. in lakh)

Name of the Company As at As at Maximum Balances31st M arch, 2010 31st March, 2 009 during the year

1 Reliance Agri Products Distribution Limited 3,387.70 1,987.50 3,415.33

2 Reliance Autozone Limited 2,478.57 1,422.93 2,478.57

3 Reliance Brands Limited 3,683.14 1,966.96 3,736.99

4 Reliance Dairy Foods Limited 8,970.87 6,484.06 14,219.10

5 Reliance Digital Media Limited 811.34 253.90 811.34

6 Reliance F&B Services Limited 30.56 29.86 30.56

7 Reliance Financial Distribution and 1,170.64 1,057.06 1,170.64Advisory Services Limited

8 Reliance Food Processing Solutions Limited 31,594.98 28,972.67 35,814.32

9 Reliance Footprint Limited 6,616.53 5,298.16 6,726.43

10 Reliance Fresh Limited 210,028.95 177,573.42 212,839.10

11 Reliance Gems and Jewels Limited 133.14 98.65 158.29

12 Reliance Home Store Limited 7,110.80 5,456.10 9,111.19

13 Reliance Hypermart Limited 144,203.38 143,591.05 144,678.85

14 Reliance Infrastructure Management Services Limited - 17.32 17.6015 Reliance Integrated Agri Solutions Limited 2,750.54 2,559.87 2,775.40

16 Reliance Leisures Limited 1,909.96 1,830.71 1,909.96

17 Reliance Lifestyle Holdings Limited 17,635.08 12,025.94 17,685.83

18 Reliance Loyalty & Analytics Limited 106.54 88.21 106.54

19 Reliance Nutritional Food Processors Limited 118.50 122.00 124.00

20 Reliance One Enterprises Limited 92.10 25.00 92.10

SCHEDULE N (Contd.)


31/35



21 Reliance People Serve Limited 37.53 83.46 291.70

22 Reliance Personal Electronics Limited 114.98 95.95 132.91

23 Reliance Retail Finance Limited - 369.49 438.55

24 Reliance Retail Insurance Broking Limited 110.71 376.94 428.45

25 Reliance Retail Securities & Broking Company Limited 45.71 40.92 45.71

26 Reliance Retail Travel & Forex Services Limited 22.44 22.59 24.18

27 Reliance Review Cinema Limited 11.12 10.65 19.51

28 Reliance Supply Chain Solutions Limited 26,825.40 26,958.05 34,444.72

29 Reliance Trade Services Centre Limited 979.20 841.78 980.2330 Reliance Trends Limited 16,517.52 8,707.03 17,575.78

31 Reliance Universal Ventures Limited 3,899.91 3,656.50 4,909.31

32 Reliance Vantage Limited 12,590.04 8,834.02 12,590.04

33 Reliance Wellness Retail Limited 6,853.10 7,314.68 18,673.94

34 Reliancedigital Retail Limited 20,423.89 14,685.50 22,025.46

35 Reliance-GrandOptical Private Limited 1.00 1.00 1.00

36 RESQ Limited - 8.34 9.90

37 Retail Concepts & Services (India) Limited - 6,958.37 6,958.37

38 Delight Proteins Limited 480.00 379.38 514.27

39 Strategic Manpower Solutions Limited 391.05 2,215.57 7,662.86

532,136.90 472,421.61 585,629.03

Notes:

(a) Loans and Advances, shown above, to Subsidiaries fall under the category of Loans and Advances in nature of Loans

where there is no repayment schedule and are re-payable on demand.

(b) All the above loans and advances are interest free.

(c) Loans to employees as per Companys policy are not considered.

(d) All the above loans and advances are to the company under the same management.

19 The details of Joint Ventures are as follows:

Name of the Joint Ventures Country of Proportion of

Incorporation ownership interest

Marks and Spencer Reliance India Private Limited India 49%

Reliance Vornado Development Private Limited India 50%

Reliance Vornado Management Private Limited India 50%

Reliance-Grand Vision India Supply Private Limited India 50%

Reliance-Vision Express Private Limited India 50%

Supreme Tradelinks Private Limited (wholly owned India 49%

subsidiary of Marks and Spencer Reliance India Private Limited)

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

Name of the Company As at As at Maximum Balances

31st M arch, 2010 31st March, 2 009 during the year


32/35



20 In respect of jointly controlled entities, the Companys share of assets, liabilities, income and expenditure are as follows:

(Rs. in lakh)

Particulars As at As at


(i) Assets

Long Term Assets 3,395.31 1033.93

Investment 3,038.75 -

Current Assets 8,200.80 9192.31

(ii) Liabilities

Current Liabilities and Provisions 3,900.78 2886.72

(iii) Income 8,414.96 719.14

(iv) Expenses 10,191.42 1474.72

21 Quantitative Details :

Sr. Category Opening Stock Purchases Sales Closing Stock

UOM Qty Rs. in Qty Rs. in Qty Rs. in Qty Rs. in

lakh lakh lakh lakh

1 Gold (including in Kg 782.08 11303.71 891.66 16037.12 758.45 13028.03 915.29 15285.61

Studded Jewellery)

2 Diamond/ Precious Stones in (1) 2472.47 3868.39 3898.23 3881.79

Studded Jewellery and Others

Total 13776.18 19905.51 16926.26 19167.40

Note :(1) In view of the large number of heterogeneous nature of items purchased and sold, the quantitative information have been

furnished to the extent practicable and giving meaningful information.

(2) During the previous year, The Ministry of Corporate Affairs, Government of India vide its Order No.46/86/2009-CL-III dated

21/05/2009 issued under Section 211(4) of the Companies Act, 1956 has exempted the Company from the disclosure of

quantitative details in the Profit and Loss Account under paras 3(i)(a) and 3(ii)(b) of Para II, Schedule VI to the Companies Act,

1956. Hence previous years figures are not disclosed.

SCHEDULE N (Contd.)






Mumbai






K. R. Raja Manager



33/35


I. Registration Details:

Registration No. U 1 7 1 2 0 M H 1 9 9 8 P L C 1 1 4 0 1 0

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

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

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

Bonus Issue: N I L Private Placement: 1 6 7 9 0 0 0 0

Share Application Money: N I L (including for party paid-up Shares)

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

Total Liabilities: 5 9 9 9 0 1 1 5 Total Assets: 5 9 9 9 0 1 1 5

Sources of Funds: Application of Funds:

Paid up Capital: 5 7 3 0 0 0 0 0 Net Fixed Assets: 1 2 9 1 8 1 1

Share Application Money: N I L Investments: 1 7 6 0 9 6 3

Reserves and Surplus: N I L Deferred Tax Assets: 3 7 5 0 1 0

Secured Loans: 2 1 5 0 7 3 Current Assets 5 6 4 1 9 8 2 4

Unsecured Loans: N I L Miscellaneous Expenditure: 4 9 8 8

Current Liabilities 2 4 7 5 0 4 2 Profit and Loss Account: 1 3 7 5 1 9

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

Net Turnover: 2 7 6 0 8 1 7 Total Expenditure: 3 4 0 7 0 2 9

Profit / (-) Loss before tax: ( 7 0 0 0 8 ) Profit / (-) Loss after tax: 1 8 2 2 3 4

Earnings per Share in Rs:

- Basic 0 . 0 4 Dividend Rate: N I L

- Diluted 0 . 0 4

V. Generic Names of principal services of the company:

Item Code Number : N A

Product Description N A

Additional Information as required under Part IV of Schedule VI to the Companies Act, 1956

Balance Sheet Abstract and Companys General Business Profile:


34/35


35/35


29

RelianceTradeServices

Rupees

5.0

0

(993.2

2)

2

.89

2.8

9

-

4.8

0

(62.7

2)

-

(62.7

2)

-

INDIA

CentreLimited

30

RelianceOneEnterpris

esLimited

Rupees

5.0

0

(4.1

0)

95

.59

95.5

9

-

-

(0.2

6)

-

(0.2

6)

-

INDIA

31

Reliance-GrandOptical

Rupees

5.0

0

(1.1

0)

5

.13

5.1

3

-

-

(0.3

3)

-

(0.3

3)

-

INDIA

PrivateLimited

32

RelianceDigitalMedia

Limited

Rupees

5.0

0

(146.9

3)

895

.87

895.8

7

-

1,8

98.8

2

(73.9

9)

(27.9

0)

(46.0

9)

-

INDIA

33

RelianceLoyalty&An

alyticsLimited

Rupees

5.0

0

(874.3

3)

49

.69

49.6

9

-

96.5

1

(230.4

9)

-

(230.4

9)

-

INDIA

34

RelianceRetailSecuritiesand

Rupees

5.0

0

(115.0

2)

3

.92

3.9

2

-

17.8

5

(19.7

1)

-

(19.7

1)

-

INDIA

BrokingCompanyLim

ited

35

ReliancePeopleServeLimited

Rupees

5.0

0

(106.5

3)

228

.43

228.4

3

-

562.9

3

(30.7

2)

(16.1

1)

(14.6

1)

-

INDIA

36

RelianceInfrastructure

Rupees

5.0

0

(1.4

1)

3

.77

3.7

7

-

-

(0.3

6)

-

(0.3

6)

-

INDIA

ManagementServicesLimited

37

ReliancePersonalElec

tronicsLimited

Rupees

5.0

0

(82.4

4)

39

.04

39.0

4

-

6.9

9

(24.7

3)

-

(24.7

3)

-

INDIA

38

RelianceNutritionalFo

od

Rupees

5.0

0

(5.0

5)

121

.22

121.2

2

-

-

(4.4

2)

-

(4.4

2)

-

INDIA

ProcessorsLimited

39

RelianceReviewCinem

aLimited

Rupees

5.0

0

(13.3

0)

31

.86

31.8

6

0.9

5

98.0

6

(14.5

8)

(6.6

1)

(7.9

7)

-

INDIA

40

RelianceReplayGamingLimited

Rupees

5.0

0

(1.9

2)

13

.72

13.7

2

-

60.7

1

(0.6

0)

(0.9

4)

0.3

4

-

INDIA

41

ReliancePetroMarketingLimited

Rupees

410.6

0

10,6

24.9

4

15,852

.59

15,8

52.5

9

4.1

6

46,8

37.3

9

25.7

2

16.2

1

9.5

1

-

INDIA

42

LPGInfrastructure(Ind

ia)Limited

Rupees

5.0

0

663.0

8

10,104

.27

10,1

04.2

7

0.3

0

20,4

32.5

3

199.2

1

83.9

2

115.2

9

-

INDIA

FinancialInformatio

nofSubsidiaryCompanies

(Rs.inlakh

)

Sr.

NameofSubsidiaryCompany

Reporting

Capital

Reserves

Total

Total

Investments

Turnover/

ProfitBefore

Provision

ProfitAfter

Proposed

Country

No.

Currency

As

sets

Liabilities

TotalIncome

Taxation

forTaxation

Taxation

Dividend

6 Reliance Retail Limited

Documents