Your Directors are pleased to present the Third Annual Report and the Audited Accounts for the year ended March 31, 2010.
(Rs. in Lakh)
The financial performance of the Company for the financial year ended March 31, 2010 is summarized below:
Profit / (Loss) before Depreciation, Interest and Tax
Less: Interest Depreciation
Profit / (Loss) before Tax
Less: Provision for Fringe Benefit Tax Deferred Tax
Profit / (Loss) after Tax
Add: Balance brought forward from Previous Year
Balance carried to Balance Sheet
The Company operates ‘Reliancedigital’ stores which offer a wide variety of consumer durable and information technology products at competitive prices at world-class shopping environment. The ‘iStore by Reliancedigital’ is an established Apple destination store in India which provides unique consumer experience and wide range of Apple products, accessories and software. RESQ Limited, the wholly-owned subsidiary of the Company through its robust service network provides excellent pre-sale and post-sale services to the products sold by the Company.
The Company has incurred a loss of Rs. 603.88 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.
Your Directors have not recommended any dividend on Equity Shares for the year under review.
The audited statements of accounts of the subidiary of the Company, together with the Reports of the Board of Directors
Reliancedigital Retail Limited
and Auditors for the year ended 31st March, 2010 are attached as required under Section 212 of the Companies Act, 1956.
Shri Ajay Baijal 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:
in the preparation of the accounts for the year ended March 31, 2010, the applicable accounting standards have been followed and there are no material departures from the same;
the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the loss of the Company for the year under review;
the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
the Directors have prepared the accounts for the year ended 31st March, 2010 on a ‘going concern’ basis.
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 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: In terms of the provisions of Section 217(2A) of the Companies