Annual Report

2009 - 2010

RELIANCE TRENDS LIMITED

 Reliance Trends Limited 1

Directors’ Report

Dear Members, Directors

Your Directors are pleased to present the Fourth Annual Report In accordance with the provisions of the Companies Act, 1956,
and the Audited Accounts for the year ended on March 31, Shri Raghu Pillai retires by rotation and being eligible, offers
2010. himself for reappointment at the ensuing Annual General
Meeting.
Financial Results
Directors’ Responsibility Statement
The financial performance of the Company for the year ended
on March 31, 2010 is summarized below: Pursuant to the requirement under Section 217(2AA) of the
Companies Act, 1956 with respect to Directors’ Responsibility
(Rupees in Lakh) Statement, it is hereby confirmed that:
2009-2010 2008-2009 (i) in the preparation of the accounts for the year ended 31st
March, 2010, the applicable accounting standards have
Gross Profit/(Loss) before
been followed and there are no material departures from
Depreciation, Interest and Tax 207.15 (251.13)
the same;
Less: Interest 7.77 0.18 (ii) the Directors have selected such accounting policies and
Depreciation 411.23 120.31 applied them consistently and made judgments and
Profit/(Loss) before Tax (211.85) (371.62) estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company at
Less: Provision for the end of the financial year and of the loss of the Company
Fringe Benefit Tax - 34.50 for the year under review;
Deferred Tax (73.01) (114.45)
(iii) the Directors have taken proper and sufficient care for the
Profit/(Loss) after Tax (138.84) (291.67) maintenance of adequate accounting records in accordance
with the provisions of the Companies Act, 1956 for
Balance brought forward safeguarding the assets of the Company and for preventing
from Previous Year (310.40) (18.73) and detecting fraud and other irregularities;
Balance carried to Balance Sheet (449.24) (310.40) (iv) the Directors have prepared the accounts for the year ended
Operational and Financial Review 31st March, 2010 on a ‘going concern’ basis.

During the year under review, the Company has maintained its
growth by expanding its retail presence in new cities and towns
in India. The Company’s Reliance Trends stores offer wide
collection covering more than 100 International and Indian brands
including private label products at affordable prices for men,
women and kids. The latest fashion and high quality products
coupled with incredible price offering has been well received
and appreciated by its customers. Apart from ready-to-wear
garments, the stores also cater to consumers who prefer to shop
for fabric and tailor their clothes. The Company has plans to
expand aggressively, thereby strengthening its foothold over
the Indian Apparel Industry.
The Company has incurred a loss of Rs. 138.84 Lakh for the
financial year ended March 31, 2010. With the optimisation of
resources and further scaling up of retail store 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.
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, 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 letter from them to the effect that
their re-appointment, if made, would be within the prescribed
limits under Section 224(1B) of the Companies Act, 1956 and
that they are not disqualified for such re-appointment within
the meaning of Section 226 of the Companies Act, 1956.
Particulars of Employees
As required under the provisions of Section 217(2A) of the
Companies Act, 1956, read with the Companies (Particulars of
Employees) Rules, 1975, as amended, the names and other
particulars of the employees are set out in the Annexure to this
Report.
2 Reliance Trends Limited

Conservation of Energy, Technology Absorption and

Foreign Exchange Earnings and Outgo
The particulars relating to conservation of energy, technology
absorption and foreign exchange earnings and outgo, required to
be furnished pursuant to Section 217(1)(e) of the Companies
Act, 1956, read with Companies (Disclosures of Particulars in
the Report of Board of Directors) Rules, 1988, are as under:
i. Part A and B of the Rules, pertaining to conservation of
energy and technology absorption, are not applicable to
the Company.
ii. Foreign Exchange Earnings and Outgo:
Foreign Exchange Earned : Rs. 92.45 Lakh
Foreign Exchange Used : Rs. 38.61 Lakh
Acknowledgement
Your Directors would like to express their grateful appreciation
for assistance and cooperation received from Reliance Industries
Limited, Reliance Retail Limited, Banks, Government
Authorities, Customers, Vendors, Employees and Members
during the year under review.

For and on behalf of the Board of Directors

Arun Sirdeshmukh Madhavan Ganesan

Director Director

Place: Mumbai
Date: April 20, 2010
 Reliance Trends Limited 3

Auditors Report

To the Members of, f) In our opinion and to the best of our information and
RELIANCE TRENDS LIMITED according to the explanations given to us, the said
accounts give the information required by the
We have audited the attached Balance Sheet of RELIANCE
Companies Act, 1956, in the manner so required, and
TRENDS LIMITED as at March 31, 2010, the Profit and Loss
present a true and fair view in conformity with the
Account and also the Cash Flow Statement for the year ended
accounting principles generally accepted in India:
on that date. These financial statements are the responsibility
of the Company’s management. Our responsibility is to express (i) in the case of the Balance Sheet, of the state of
an opinion on these financial statements based on our audit. affairs of the Company as at March 31, 2010;
1. We have conducted our audit in accordance with the Auditing (ii) in the case of the Profit and Loss Account, of the
Standards generally accepted in India. Those standards loss for the year ended on that date; and
require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements (iii) in the case of the Cash Flow Statement, of the
are free of material misstatement. An audit includes cash flows for the year ended on that date.
examining, on a test basis, evidence supporting the amounts For Chaturvedi & Shah
and disclosures in the financial statements. An audit also Chartered Accountants
includes assessing the accounting principles used and Firm Registration No. 101720W
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.
Amit Chaturvedi
2. As required by the Companies (Auditor’s Report) Order Partner
2003 (as amended) issued by the Central Government of Membership No.: 103141
India in terms of sub-section (4A) of section 227 of the
Companies Act, 1956, we enclose in the Annexure a Place : Mumbai
statement on the matters specified in paragraphs 4 and 5 Date : April 20, 2010
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
the 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 from
the 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;
4 Reliance Trends Limited
Annexure referred to in paragraph 2 of our report of even date
Re: Reliance Trends Limited (‘the Company’)
1. a) The Company has maintained proper records showing
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
(Auditor’s 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 fixed assets
and for the sale of 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 provisions of
clause (v) (b) of the Companies (Auditor’s 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 according to the
information and explanation provided to us, 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 months
from the date they became payable.
b) According to the information and explanation given
to us, there are no dues of sales tax, income tax, wealth
tax, service tax, custom duty, excise duty and cess
which have not been deposited on account of any
dispute.
10. The Company has been registered for a period of less than
five years and hence we are not required to comment on
whether or not the accumulated losses at the end of the
financial year is fifty per cent or more of its net worth and
whether it has incurred cash losses in such financial year
and in the immediately preceding financial year.
11. Based on our audit procedures and according to the
information and explanations given to us, 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.
12. In our opinion and according to the explanations given to
us and based on the information available, no loans and
advances have been granted on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Therefore, the provisions of
clause 4(xiii) of the Companies (Auditor’s 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
(Auditor’s Report) Order 2003, (as amended) are not
applicable.
 Reliance Trends Limited 5

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

Re: Reliance Trends Limited (‘the Company’)

15. According to information and explanation given to us the

Company has not given any guarantee for loans taken by
others from bank or financial institutions. Therefore, the
provisions of Clause (xv) of paragraph 4 the Order is 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 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 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

Chartered Accountants
Firm Registration No. 101720W

Amit Chaturvedi
Partner
Membership No.: 103141

Place : Mumbai
Date : April 20, 2010
6 Reliance Trends Limited

Reliance Trends Limited

Balance Sheet as at 31st March, 2010

(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
Secured Loans B 46.39 84.95
Unsecured Loans C 16,517.52 8,707.01
16,563.91 8,791.96
TOTAL 16,568.91 8,796.96
APPLICATION OF FUNDS
Fixed Assets D
Gross Block 7,367.39 4,520.86
Less: Depreciation 529.98 120.31
Net Block 6,837.41 4,400.55
Capital Work-in-Progress 6,788.21 6,510.77
13,625.62 10,911.32
Investments E 0.98 0.98
Deferred Tax Assets 191.65 118.64
Current Assets, Loans and Advances
Current Assets F
Inventories 6,371.90 3,319.83
Sundry Debtors 531.53 1,047.78
Cash and Bank Balances 48.12 22.02
Other Current Assets 0.08 -
6,951.63 4,389.63
Loans and Advances G 1,660.60 1,426.07
8,612.23 5,815.70
Less :
Current Liabilities and Provisions H
Current Liabilities 6,188.09 8,115.08
Provisions 122.76 245.07
6,310.85 8,360.15
Net Current Assets 2,301.38 (2,544.45)
Miscellaneous Expenditure I 0.04 0.07
(To the extent not written off or adjusted)
Profit and Loss Account 449.24 310.40
TOTAL 16,568.91 8,796.96
Significant Accounting Policies N
Notes on Accounts O

As per our Report of even date For and on behalf of the Board
For Chaturvedi & Shah Arun Sirdeshmukh
Chartered Accountants Director

Amit Chaturvedi Madhavan Ganesan

Partner Director
Membership No: 103141
Mumbai
Dated : 20th April, 2010
 Reliance Trends Limited 7

Reliance Trends Limited

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

(Rs. in lakh)
Schedule 2009-10 2008-09
INCOME
Turnover 18,421.20 17,238.77
Less: Service Tax Recovered 1.27 138.75
18,419.93 17,100.02
Other Income J 104.99 28.65
Variation in Stocks K 3,045.52 3,229.38
21,570.44 20,358.05
EXPENDITURE
Purchases 15,910.30 16,355.44
Operating and Other Expenses L 5,452.99 4,253.74
Interest and Finance charges M 7.77 0.18
Depreciation 411.23 120.31
21,782.29 20,729.67
Profit/ (Loss) before Tax (211.85) (371.62)
Provision for Fringe Benefit Tax - 34.50
Provision for Deferred Tax (73.01) (114.45)
Profit/ (Loss) after Tax (138.84) (291.67)
Add: Balance brought forward from Previous Year (310.40) (18.73)
Balance carried to Balance Sheet (449.24) (310.40)
Basic and Diluted Earnings per Share of face value
of Rs 10 each (in Rupees) (277.68) (583.33)
[Refer Note 8, Schedule “O”]
Significant Accounting Policies N
Notes on Accounts O

As per our Report of even date For and on behalf of the Board
For Chaturvedi & Shah Arun Sirdeshmukh
Chartered Accountants Director

Amit Chaturvedi Madhavan Ganesan

Partner Director
Membership No: 103141
Mumbai
Dated : 20th April, 2010
8 Reliance Trends Limited

Reliance Trends Limited

Cash Flow Statement for the year 2009-10

(Rs. in lakh)
2009-10 2008-09
A: CASH FLOW FROM OPERATING ACTIVITIES
Net Profit/ (Loss) before tax as per Profit and Loss Account (211.85) (371.62)
Adjusted for:
Miscellaneous Expenditure written off 0.03 0.03
(Profit)/ Loss on sale/ Discarding of Assets (net) 3.78 -
Depreciation 411.23 120.31
Effect of Exchange Rate Change 7.72 -
Interest Income (10.66) (2.55)
Interest and Finance Charges 7.77 -
419.87 117.79
Operating Profit before Working Capital Changes 208.02 (253.83)
Adjusted for:
Trade and Other Receivables 285.90 (2,337.48)
Inventories (3,052.07) (3,250.35)
Trade Payables (2,573.49) 7,617.50
(5,339.66) 2,029.67
Cash Generated from Operations (5,131.64) 1,775.84
Taxes Paid (4.83) (34.50)
Net Cash from/ (used in) Operating Activities (5,136.47) 1,741.34
B: CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets (2,628.65) (8,879.34)
Sale/ Decapitalisation of Fixed Assets 16.46 -
Purchase of Investments - (0.98)
Interest Income 10.58 2.55
Net Cash used in Investing Activities (2,601.61) (8,877.77)
C: CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Long Term Borrowings 23,399.19 9,856.26
Repayment of Long Term Borrowings (15,627.24) (2,734.22)
Interest Paid (7.77) -
Net Cash from Financing Activities 7,764.18 7,122.04
Net Increase/ (Decrease) in Cash and Cash Equivalents 26.10 (14.39)
Opening Balance of Cash and Cash Equivalents 22.02 36.41
Closing Balance of Cash and Cash Equivalents 48.12 22.02

As per our Report of even date For and on behalf of the Board
For Chaturvedi & Shah Arun Sirdeshmukh
Chartered Accountants Director

Amit Chaturvedi Madhavan Ganesan

Partner Director
Membership No: 103141
Mumbai
Dated : 20th April, 2010
 Reliance Trends Limited 9

Schedules forming part of the Balance Sheet

(Rs. in lakh)
SCHEDULE A As at As at
31st March, 2010 31st March, 2009

SHARE CAPITAL

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.

(Rs. in lakh)
SCHEDULE B As at As at
31st March, 2010 31st March, 2009

SECURED LOANS
Term Loans from Banks
Rupee Loans * 46.39 84.95
TOTAL 46.39 84.95

* Loans are secured by hypothecation of vehicles

(Rs. in lakh)
SCHEDULE C As at As at
31st March, 2010 31st March, 2009
UNSECURED LOANS
Long Term Loans
From holding Company 16,517.52 8,707.01

TOTAL 16,517.52 8,707.01

 10

SCHEDULE D

FIXED ASSETS (Rs. in lakh)

Description Gross Block Depreciation Net Block

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

1st April, 2009 Adjustments 31st March, 2010 31st March, 2009 Adjustments 31st March, 2010 31st March, 2010 31st March, 2009
Building - 2.63 - 2.63 - 2.63 - 2.63 - -
Plant and Machinery 104.29 111.65 - 215.94 3.18 30.47 - 33.65 182.29 101.11
Electrical Installations 805.22 845.64 - 1,650.86 14.26 67.88 - 82.14 1,568.72 790.96
Equipments 1,971.00 626.71 8.05 2,589.66 51.86 141.60 0.35 193.11 2,396.55 1,919.14
Reliance Trends Limited

Furniture and 821.90 675.26 - 1,497.16 37.45 87.36 - 124.81 1,372.35 784.45
Fixtures
Vehicles 105.81 2.47 13.75 94.53 - 10.19 1.21 8.98 85.55 105.81
Leasehold 712.64 603.97 - 1,316.61 13.56 71.10 - 84.66 1,231.95 699.08
Improvements

Total 4,520.86 2,868.33 21.80 7,367.39 120.31 411.23 1.56 529.98 6,837.41 4,400.55

Previous year 0.21 5,340.95 820.30 4,520.86 - 120.31 - 120.31 4,400.55 0.21

Capital Work-in-Progress 6,788.21 6,510.77

Schedules forming part of the Balance Sheet

Notes :
Capital Work-in-Progress includes:
i) Rs. 296.14 lakh (Previous Year Rs. 328.43 lakh) on account of Advance against Project Contracts.
ii) Rs. 5,290.36lakh (Previous Year Rs. 4138.16 lakh) on account of Project Development Expenditure.
iii) Rs. 388.63 lakh (Previous Year Rs.207.98 lakh) on account of construction materials at site.
 Reliance Trends Limited 11

Schedules forming part of the Balance Sheet

(Rs. in lakh)
SCHEDULE E As at As at
31st March, 2010 31st March, 2009
INVESTMENTS

LONG TERM INVESTMENTS

Government and other Securities -Unquoted
6 years National Savings Certificates 0.98 0.98
(Pledged with Rajasthan VAT Authorities)
TOTAL 0.98 0.98

Aggregate Value of Book value Book value

Unquoted Investments 0.98 0.98

(Rs. in lakh)
SCHEDULE F As at As at
31st March, 2010 31st March, 2009
CURRENT ASSETS

INVENTORIES

Stores and Packing Materials 27.52 20.97

Traded Goods 6,344.38 3,298.86
6,371.90 3,319.83
(1)
SUNDRY DEBTORS ( Unsecured and Considered Good)
Others 531.53 1,047.78
CASH AND BANK BALANCES
Cash in Hand 25.31 10.88
Balance with Scheduled Banks
In Current Accounts 22.71 11.14
In Fixed Deposit Accounts 0.10 -
48.12 22.02
OTHER CURRENT ASSETS
Interest Accrued on Investments 0.08 -
TOTAL 6,951.63 4,389.63

(1)
Includes Rs 453.27 lakh (Previous Year Rs 968.87 lakh) recievable from the following companies under the same management.
(a) Reliance Hypermart Limited
(b) Reliancedigital Retail Limited
12 Reliance Trends Limited

Schedules forming part of the Balance Sheet

(Rs. in lakh)

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

LOANS AND ADVANCES

UNSECURED - (Considered good unless otherwise stated)

Advance Income Tax (net of Provision) 56.47 52.07
Advances Recoverable in Cash or in kind or for value to be received (1) 111.40 623.39
Deposits 1,244.51 597.30
Balance with Service Tax/ Sales Tax Authorities, etc. 248.22 153.31
TOTAL 1,660.60 1,426.07

(1)
Includes Rs. 14.94 lakh (Previous Year Rs. Nil) recievable from the following companies under the same management.Maximum
balance receivable during the year Rs.14.94 lakh (Previous Year Rs. Nil)
(a) Reliance Hypermart Limited
(b) Reliance Retail Limited

(Rs. in lakh)
SCHEDULE H As at As at
31st March, 2010 31st March, 2009
CURRENT LIABILITIES AND PROVISIONS
Current Liabilities
Sundry Creditors
- Micro enterprises and Small enterprises (1) - -
- Others (2) 6,188.09 8,115.08
6,188.09 8,115.08
Provisions
Provision for Fringe Benefit Tax (Net of Advance Tax) - 0.43
Provision for Leave Encashment/ Gratuity 122.76 244.64
122.76 245.07
6,310.85 8,360.15
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. 533.96 lakh (Previous year Rs.16.84 lakh) for capital expenditure.
 Reliance Trends Limited 13

Schedules forming part of the Balance Sheet

(Rs. in lakh)

SCHEDULE I As at As at
31st March, 2010 31st March, 2009
MISCELLANEOUS EXPENDITURE
(to the extent not written off or adjusted)
Preliminary Expenses
As per last Balance Sheet 0.07 0.10
Less : Written - off during the year 0.03 0.03
TOTAL 0.04 0.07

Schedules forming part of the Profit and Loss Account

(Rs. in lakh)

SCHEDULE J 2009-10 2008-09

OTHER INCOME

Interest

From Others 10.66 2.55

Miscellaneous Income 94.33 26.10

TOTAL 104.99 28.65

(Rs. in lakh)

SCHEDULE K 2009-10 2008-09

VARIATION IN STOCKS

STOCK-IN-TRADE (at close)

Traded Goods 6,344.38 3,298.86
STOCK-IN-TRADE (at commencement)
Traded Goods 3,298.86 69.48
TOTAL 3,045.52 3,229.38
14 Reliance Trends Limited

Schedules forming part of the Profit and Loss Account

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

OPERATING AND OTHER EXPENSES

PAYMENT TO AND PROVISIONS
FOR EMPLOYEES
Salaries, Wages and Bonus 678.55 475.60
Contribution to Provident Fund, Gratuity Fund,
Superannuation Fund, Employee’s State Insurance Scheme,
Pension Scheme,Labour Welfare Fund etc. 69.18 22.63
Employee Welfare and other amenities 44.15 33.73
791.88 531.96
SALES AND DISTRIBUTION EXPENSES
Samples, Sales Promotion and Advertisement Expenses 866.99 840.63
Store Running Expenses 559.72 337.46
Brokerage, Discount and Commission 4.19 0.08
Warehousing and Distribution Expenses 444.38 829.80
Sales Tax 1.24 2.30
1,876.52 2,010.27
OPERATING AND ESTABLISHMENT EXPENSES
Stores and Packing Materials 186.71 180.25
Machinery Repairs 22.01 7.67
Building Repairs and Maintenance 86.40 164.91
Other Repairs 33.35 21.77
Rent including Lease Rentals 1,441.12 710.23
Insurance 6.36 3.11
Rates and Taxes 99.22 15.19
Travelling and Conveyance Expenses 26.85 63.56
Payment to Auditors 0.42 0.36
Professional Fees 10.47 25.28
Loss on Sale/ Discarding of Assets 3.78 -
Exchange Differences (Net) 6.78 3.30
Security Expenses 107.45 93.11
Electricity Expenses 659.22 354.02
Telephone Expenses 20.48 16.79
Printing and Stationery 10.91 13.54
Hire Charges 5.95 4.18
General Expenses 57.08 34.21
2,784.56 1,711.48
Miscellaneous expenditure written off 0.03 0.03
TOTAL 5,452.99 4,253.74

(Rs. in lakh)
SCHEDULE M 2009-10 2008-09
INTEREST & FINANCE CHARGES
Fixed Loans 7.62 -
Others 0.15 0.18
TOTAL 7.77 0.18
 Reliance Trends Limited 15

Schedules forming part of the Balance Sheet

SCHEDULE N
SIGNIFICANT ACCOUNTING POLICIES
1. Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting
principles in India, Companies (Accounting Standards) Rules 2006 and the provisions of the Companies Act,1956.
2 Use of Estimates
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of the
assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the
reporting period. Difference between the actual results and estimates are recognized in the period in which the results are
known/ materialised.
3 Own Fixed Assets
Fixed Assets are stated at cost net of CENVAT/ Value Added Tax less accumulated depreciation and impairment loss, if any. All
Costs attributable to Fixed Assets are capitalised. Improvement cost on Lease premises up to the date of commercial operation
is capitalised as “Leasehold Improvements”.
4 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; 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.
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 Lease Rentals
Operating lease: Rentals are expensed with reference to lease terms and other considerations.
7 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 transaction.
ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates.
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.
8 Investments
Current Investments are carried at the 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.
9 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
condition. Costs are determined on weighted average basis.
10 Turnover
Turnover includes sale of goods, services and service tax, adjusted for discounts (net) and Value Added Tax (VAT) if any.
16 Reliance Trends Limited

Schedules forming part of the Balance Sheet

SCHEDULE N (Contd.)
11 Employee Benefits
i) Short term employee benefits are recognised as an expense at the undiscounted amount in the Profit And Loss account of
the year in which the related service is rendered.
ii) Post employment and other long term employee benefits are recognised as an expense in the Profit and Loss Account for
the year in which the employee has rendered services. The expense is recognised at the present value of the amounts
payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and
other long term benefits are charged to the Profit and Loss Account.
12 Miscelleaneous Expenditures
Preliminary and Issue related expenses incurred are amortised over a period of 5 years .
13 Provision for Current Tax and Deferred Tax
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act,
1961.Deferred tax resulting from “timing difference” between taxable and accounting income is accounted for using the tax rates
and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried
forward only to the extent that there is a virtual certainty that the asset will be realised in future.
14 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.
 Reliance Trends Limited 17

Schedules forming part of the Balance Sheet

SCHEDULE O

NOTES ON ACCOUNTS
1 The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other
disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in
relation to the amounts and other disclosures relating to the current year.
2 The Company 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. 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 4,138.16 1,385.13
Add:
(i) Payments to and Provisions for Employees
- Salaries, Wages and Bonus 1,288.74 1,980.44
- Contribution to Provident Fund, Gratuity Fund, 62.44 93.08
Superannuation Fund, Pension Scheme etc.
- Employee Welfare and other amenities 58.75 104.88
1,409.93
(ii) Repairs and Maintenance:
- Machinery 9.02 6.68
- Building 41.74 43.91
- Other 60.73 85.14
111.49
(iii) Rent including Lease Rentals 34.49 67.61
(iv) Insurance 13.01 10.31
(v) Rates and Taxes 20.93 39.32
(vi) Travelling and Conveyance Expenses 47.49 282.04
(vii) Professional Fees 17.40 96.19
(viii) Electricity Expenses 32.96 61.83
(ix) Telephone Expenses 22.04 45.20
(x) Printing and Stationery 6.65 25.19
(xi) Hire Charges 4.00 0.99
(xii) General Expenses 18.94 174.05
1,739.33 3,116.86
Less:
Capitalised during the year 587.13 363.83
Closing Balance 5,290.36 4,138.16
18 Reliance Trends Limited

Schedules forming part of the Balance Sheet

SCHEDULE O (Contd.)
3 Turnover Includes Income from Services for Rs 13.60 lakh (Previous year Rs 1234.80 lakh)
4 The Company is mainly engaged in ‘Organised Retail’ in India. All the activities of the Company revolve around this main
business. Accordingly, the Company has only one identifiable segment reportable under Accounting Standard 17 “Segment
Reporting”, notified in the Companies (Accounting Standards) Rules 2006.
5 As per Accounting Standard 15 “Employee Benefits”, notified in the Companies (Accounting Standards) Rules 2006, the
disclosures of employee benefits as defined in the Accounting Standard are given below:
Defined Contribution Plan (Rs. in lakh)
Contribution to Defined Contribution Plan, recognised are charged off/ capitalised for the year are as under:

2009-10 2008-09
Employer’s Contribution to Provident Fund 72.79 86.36
Employer’s Contribution to Pension Scheme 15.85 17.91
Defined Benefit Plan
The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which
recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.The obligation for leave encashment is recognised in the same manner as gratuity.
I. Reconciliation of opening and closing balances of Defined Benefit obligation
(Rs. in lakh)
Gratuity Leave Encashment
(Unfunded) (Unfunded)
2009-10 2008-09 2009-10 2008-09

Defined Benefit obligation at beginning of the year 37.00 54.15 208.06 120.48
Current Service Cost 24.94 18.37 17.34 55.06
Interest Cost 2.78 4.33 11.70 9.12
Contribution by the plan participants - - - -
Actuarial (gain)/ loss 5.72 (39.85) (80.66) 36.36
Benefits paid - - (104.12) ( 12.96)
Defined Benefit obligation at year end 70.44 37.00 52.32 208.06

II. Reconciliation of fair value of assets and obligations

(Rs. in lakh)
Gratuity Leave Encashment
(Unfunded) (Unfunded)
2009-10 2008-09 2009-10 2008-09

Fair value of plan assets as on 31st March, 2010 - - - -

Present value of benefit obligation as on 31st March ,2010 70.44 37.00 52.32 208.06
Amount recognised in Balance Sheet 70.44 37.00 52.32 208.06
 Reliance Trends Limited 19

Schedules forming part of the Balance Sheet

SCHEDULE O (Contd.)
III. Expenses recognized during the year
(Rs. in lakh)
Gratuity Leave Encashment
(Unfunded) (Unfunded)
2009-10 2008-09 2009-10 2008-09

Current Service Cost 24.94 18.37 17.34 55.06

Interest Cost on benefit obligation 2.78 4.33 11.70 9.12
Actuarial (gain)/ loss recognized in the year 5.72 ( 39.85) (80.66) 36.36
Past service cost - - - -
Net benefit expense /( income) 33.44 ( 17.15) (51.62) 100.54
Actual return on plan asset - - - -
IV. Actuarial assumptions
Gratuity Leave Encashment
(Unfunded) (Unfunded)
2009-10 2008-09 2009-10 2008-09
Discount rate (per annum) 7.50% 8.00% 7.50% 8.00%
Rate of escalation in salary (per annum) 6.00% 6.50% 6.00% 8.00%
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority,
promotion and other relevant factors including supply and demand in the employment market. The above information is
certified by the actuary.
6 Payment to Auditors (excluding Service Tax, wherever applicable):
(Rs. in lakh)
2009-10 2008-09
(i) Audit Fees 0.30 0.30
(ii) Tax Audit Fees 0.06 0.06
0.36 0.36
7 The Deferred Tax Assets (net) comprises of the following:
(Rs. in lakh)
As at As at
31st March, 2010 31st March, 2009
(i) Deferred Tax Assets
- Disallowance under the Income Tax Act 1961 36.04 58.40
- Carried forward loss 2,417.91 1517.42
(ii) Deferred Tax Liability
- Related to Fixed Assets 2,262.30 1457.17
191.65 118.64
Note: The virtual certainity is based on agreeements
20 Reliance Trends Limited

Schedules forming part of the Balance Sheet

SCHEDULE O (Contd.)
8 Earnings Per Share (EPS)
2009-10 2008-09
(i) Net Profit/ (Loss) after tax as per Profit And Loss account (Rs. in lakh) (138.84) (291.67)
(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) (277.68) (583.33)
9 General description of lease terms:
(i) Lease rentals are charged on the basis of agreed terms.
(ii) Assets are taken on lease over a period of 8 to 15 years .
10 Additional Information (to the extent applicable):
(Rs. in lakh)
As at As at
31st March, 2010 31st March, 2009
(i) Capital Commitments:
Estimated amount of contracts remaining to be executed on 457.15 119.84
capital accounts (net of advances) and not provided for.
(ii) Contingent Liabilities
Outstanding guarantees furnished to Banks and 35.15 5.15
Financial Institutions including in respect of Letters of Credit.
11 Value of Imports on CIF basis in respect of:
(Rs. in lakh)
2009-10 2008-09
(i) Traded Goods - 22.32
(ii) Capital goods 33.60 907.74

(Rs. in lakh)
12 Expenditure in Foreign Currency: 2009-10 2008-09
Other matters 5.01 -
13 Value of Exports on FOB Basis in respect of (Rs. in lakh)
2009-10 2008-09
Traded Goods 92.45 46.40
14 Value of Stores and Packing Materials Consumed
2009-10 2008-09
% of % of
Rs. in lakh Consumption Rs. in lakh Consumption
Indigenous 186.71 100% 180.25 100%
 Reliance Trends Limited 21

Schedules forming part of the Balance Sheet

SCHEDULE O (Contd.)

15 The Ministry of C\orporate Affairs, Government of India vide its order No 46/57/2010 - CL-III dated 21-02-2010 issued under
Section 211(4) of the Companies Act,1956 has exempted the Company from disclosure of quantitative details in the Profit and
Loss Account under paras 3(i) (a) and 3(ii) (b) of Part II, Schedule VI to the Companies Act ,1956.
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 the extent
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 :
(i) List of related parties with whom transactions have taken place and relationships:
Sr Name of the Related Party Relationship
No
1 Reliance Industries Limited Ultimate Holding Company
2 Reliance Retail Limited Holding Company
3 Reliance Corporate IT Park Limited }
4 Reliance Digital Media Limited }
5 Reliance Financials Distribution and Advisory Services Limited }
6 Reliance Footprint Limited }
7 Reliance Fresh Limited }
8 Reliance Hypermart Limited }
9 Reliance Infosolutions Private Limited } Fellow Subsidiaries
10 Reliance Leisures Limited }
11 Reliance People Serve Limited }
12 Reliance Supply Chain Solutions Limited }
13 Reliancedigital Retail Limited }
14 Retail Concepts & Services (India) Limited }
15 Strategic Manpower Solutions Limited }

(ii) Transactions during the year with related parties (excluding reimbursements):
(Rs. in lakh)
SrNo Nature of Transactions Ultimate Holding Fellow Total
Holding Company Subsidiaries
Company
1 Unsecured Loan taken/ (repaid) - 7,810.49 - 7,810.49
- 7,037.09 - 7,037.09
2 Turnover 94.21 1.29 3,788.62 3,884.12
- 765.24 7,209.90 7,975.14
3 Purchases 172.36 25.55 675.73 873.64
- 2,995.88 1,059.19 4,055.07
4 Expenditure
- Store Running Expenses - - 443.60 443.60
- - 719.79 719.79
- Warehousing and Distribution expenses - - 210.47 210.47
22 Reliance Trends Limited

Schedules forming part of the Balance Sheet

SCHEDULE O (Contd.)
- - 310.73 310.73
Balance as at 31st March, 2010
5 Share Capital - 5.00 - 5.00
- 5.00 - 5.00
6 Unsecured Loan - 16,517.52 - 16,517.52
- 8,707.03 - 8,707.03
7 Loans and Advances - 10.21 4.73 14.94
- - - -
8 Sundry Debtors - - 453.27 453.27
- 197.02 771.85 968.87
9 Sundry Creditors 17.39 5.03 41.00 63.42
- 3,110.02 200.14 3,310.16
10 Financial Guarantees taken - 35.15 - 35.15
- 5.15 - 5.15
Note: Figures in italics represents previous year’s amount.
Disclosure in respect of material Related Party transactions during the year:
(i) Unsecured Loan taken includes Rs 7810.49 lakh (Previous Year Rs 7037.09 lakh) from Reliance Retail Limited.
(ii) Turnover includes transactions of Rs. 94.21 lakh (Previous Year Rs. Nil) with Reliance Industries Limited, Rs. 1.29 lakh
(Previous Year Rs. 765.24 lakh) with Reliance Retail Limited, Rs. Nil (Previous Year Rs.5.83 lakh) with Retail Concepts
and Services ( India) Limited, Rs. 293.11 lakh (Previous Year Rs.1697.13 lakh) with Reliance Fresh Limited, Rs. 3457.64
lakh (Previous Year Rs.5485.40 lakh) with Reliance Hypermart Limited, Rs 17.66 lakh (Previous Year Rs. 10.04 lakh) with
Reliance Footprint Limited, Rs.10.55 lakh (Previous Year Rs. 3.23 lakh) with Reliance Leisures Limited.
(iii) Purchases include Rs. 172.36 lakh (Previous Year Rs. Nil), Rs 25.55 lakh (Previous Year Rs.2995.88 lakh) from Reliance
Retail Limited, Rs. 87.82 lakh (Previous Year Rs.3.34 lakh) from Reliance Fresh Limited, Rs. 0.30 lakh (Previous Year
Rs. 1.62 lakh) from Reliance Digital Retail Limited, Rs. 377.91 lakh (Previous Year Rs. 969.12 lakh) from Reliance
Hypermart Limited, Rs. 162.92 lakh (Previous Year Rs 63.37 lakh) from Reliance Leisures Limited and Rs. Nil (Previous
Year Rs 4.81 lakh) from Reliance Supply Chain Solution Limited.
(iv) Store Running Expenses includes Rs. 443.60 lakh (Previous Year Rs. 310.73 lakh) to Strategic Manpower Solutions
Limited
(v) Warehousing and Distribution Expenses Rs. 210.47 lakh (Previous Year Rs. 719.79 lakh) to Reliance Supply Chain
Solution Limited.

As per our Report of even date For and on behalf of the Board
For Chaturvedi & Shah Arun Sirdeshmukh
Chartered Accountants Director

Amit Chaturvedi Madhavan Ganesan

Partner Director
Membership No: 103141
Mumbai
Dated : 20th April, 2010
 Reliance Trends Limited 23

Additional Information as required under Part IV of Schedule VI to the Companies Act, 1956
Balance Sheet Abstract and Company’s General Business Profile:
I. Registration Details:

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

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

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

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

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

Share Application Money: N I L

III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands):

Total Liabilities: 2 2 8 7 9 7 6 Total Assets: 2 2 8 7 9 7 6

Sources of Funds: Application of Funds:

Paid up Capital: 5 0 0 Net Fixed Assets: 1 3 6 2 5 6 2

Share Application Money N I L Investment: 9 8

Reserves and Surplus: N I L Deferred Tax Assets: 1 9 1 6 5

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

Unsecured Loans: 1 6 5 1 7 5 2 Miscellaneous Expenditure: 4

Current Liabilities: 6 3 1 0 8 5 Accumulated Losses: 4 4 9 2 4

IV. Performance of the Company (Amount in Rs. Thousands):

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

Profit / (-) Loss before tax: ( 2 1 1 8 5 ) Profit / (-) Loss after tax: ( 1 3 8 8 4 )

Earnings per Share in Rs:

- Basic ( 2 7 7 . 6 8 ) Dividend Rate: N I L

- Diluted ( 2 7 7 . 6 8 )

V. Generic Names of principal services of the company:

Item Code number N A

Product Description N A

Item Code number N A

Product Description N A