reliance infosolutions private limited balance sheet

8/12/2019 RELIANCE INFOSOLUTIONS PRIVATE LIMITED Balance Sheet

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RELIANCE INFOSOLUTIONS PRIVATE LIMITED

Annual Report2009 - 2010


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1Reliance Infosolutions Private Limited

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

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

Operational and Financial Review:

The Company continued to see growth in its business areas

during the financial year 2009-2010. The customer centric

approach of the Company, while addressing the IT requirements

of its clients has sought higher customers satisfaction and gave

long term association with the Clients.

Financial Results:

The financial performance of the Company for the financial

year ended March 31, 2010 is summarized below:

(in Rs.)Particulars 2009-2010 2008-2009

Profit before Interest and 57 04 08 646 56 57 16 692

Depreciation

Less: Interest 15 96 40 973 18 61 82 643

Depreciation 40 66 37 124 37 49 36 630

Profit before taxation 41 30 549 45 97 419

Less: Provision for taxation

Current Tax 6 38 170 3 88 769

Minimum Alternative

Tax Credit (6 38 170) (3 88 769)

Deferred Tax 38 48 881 (50 45 599)

Fringe Benefit Tax - 11 66 095

Profit after tax 2 81 668 84 76 923

Add: Balance in Profit and

Loss account 1 12 01 983 27 25 060

Amount available for

appropriations 1 14 83 651 1 12 01 983

Dividend:

Your Directors have not recommended any dividend on Equity

Shares for the year under review.

Authorised Capital:

Pursuant to your approval at last Annual General Meeting theAuthorised Share Capital of the Company has increased from

Rs. 1,00,000/- (Rupees One Lac) divided into 10,000 (Ten

Thousand) Equity Shares of Rs.10/ each to Rs. 5,00,000/-

Directors Report

(Rupees Five Lac) divided into 50,000 (Fifty Thousand) EquityShares of Rs.10/ each.

Directors:

Pursuant to the provisions of Section 260 of the Companies

Act, 1956 and the Articles of Association Shri K. Sethuraman

was appointed as an Additional Director on the Board with

effect from October 15, 2009. He shall hold office upto the date

of the ensuing Annual General Meeting. The Company has

received a notice in writing under Section 257 of the Companies

Act, 1956 from a member proposing the candidature of Shri K.

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

Shri Ashishkumar Chauhan had resigned from the office of

Director of the Company with effect from October 17, 2009.

The Board wishes to place on record the valuable contribution

made by him during his tenure as Director of the Company.

Shri Jyotindra Thacker 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;

(ii) the Directors have selected such accounting policies and

applied them consistently and made judgments andestimates 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 profit of the

Company for the year under review;

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

maintenance of adequate accounting records in accordance

with the provisions of the Companies Act, 1956 for

safeguarding the assets of the Company and for preventing

and detecting fraud and other irregularities;

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

31stMarch, 2010 on a going concern basis.

Auditors:

M/s. Chaturvedi & Shah, Chartered Accountants (RegistrationNo.- 101720W), 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.


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2 Reliance Infosolutions Private Limited

The Company has received a letter from them to the effect thattheir 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.

The Notes on Accounts referred in the Auditors Report are self

explanatory and do not call for any further comments.

Particulars of Employees:

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 andForeign 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. 7 15 73 145

Foreign Exchange Used - Rs. 92 54 543

Acknowledgement:

Your Directors would like to express their grateful appreciation

for assistance and cooperation received from Customers,

Vendors, Employees and Members during the year under review.

For and on behalf of the Board of Directors

L V Merchant Jyotindra Thacker

(Director) (Director)

Place: Mumbai

Date: April 16, 2010


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Auditors Report

To the Members ofRELIANCE INFOSOLUTIONS PRIVATE LIMITED.

We have audited the attached Balance Sheet of RELIANCE

INFOSOLUTIONS PRIVATE LIMITED, as at March 31, 2010,

the Profit and Loss Account and 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 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 audit includes

examining, on a test basis, evidence supporting the amountsand 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 by the Companies (Auditors Report)

(Amendment) Order 2004 (together the Order) 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 in

paragraph 2 above, we report that:

a. We have obtained all the information and explanations

which to the best of our knowledge and belief were

necessary for the purposes of our audit;

b. In our opinion, proper books of account, as required

by law, have been kept by the Company, so far as

appears from our examination of those books;

c. The Balance Sheet, the Profit and Loss Account and

Cash Flow Statement dealt with by this report are in

agreement with the books of account;

d. In our opinion the Balance Sheet, Profit and Lossaccount and Cash Flow Statement dealt with by this

report are in compliance with the applicable

Accounting Standards referred to in section 211(3C)

of the Companies Act, 1956;

e. On the basis of written representation 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;

f. In our opinion and to the best of our information and

according to the explanations given to us, the said

accounts read together with the Significant AccountingPolicies and other notes thereon give the information

required by the Companies Act, 1956, in the manner

so required and give a true and fair view in conformity

with the accounting principles generally accepted in

India:

(i) in the case of the Balance Sheet, of the state of

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 Cash Flow Statement, of the

Cash Flows for the year ended on that date.

For CHATURVEDI & SHAH

Registration No.:- 101720W

Chartered Accountants

Jignesh Mehta

Partner

Membership No. 102749

Place: Mumbai

Dated: April 16, 2010


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1) In respect of its fixed assets:

a. The Company has maintained proper records showing

full particulars including quantitative details and

situation of fixed assets on the basis of available

information.

b. As explained to us, all the fixed assets have been

physically verified by the management during the year

in a phased periodical manner, which in our opinion is

reasonable, having regard to the size of the company

and the nature of its assets. No material discrepancies

were notice on such physical verification.

c. In our opinion, the company has not disposed off

substantial part of its fixed assets during the year andthe going concern status of the Company is not

affected.

2) In respect of its inventories:

As the company had no inventories during the year and the

company has not carried out any manufacturing and/or

trading activity, clause (ii) of paragraph 4 of the order is

not applicable to the company.

3) The Company has not granted any loans, secured or

unsecured, to companies, firms or other parties as listed in

the register maintained under section 301 of the companies

Act, 1956. Therefore, the provisions of clause (iii) (B) to

(iii) (d) of paragraph 4 of the Order are not applicable tothe Company

4) The company has not taken any loans, secured or

unsecured, from companies, firms or other parties as listed

in the register maintained under section 301 of the

companies Act, 1956. Therefore, the provisions of clause

(iii) (f) to (iii) (g) of paragraph 4 of the Order are not

applicable to the Company.

5) In our opinion and according to information and

explanations given to us, there are adequate internal control

procedures commensurate with the size of Company and

the nature of its business for the purchase of fixed assets

and also sale of services. During the course of our audit, we

have not observed any continuing failure to correct major

weakness in internal controls in respect of these areas.

6) According to information and explanation given to us there

are no contracts or arrangements referred to Section 301 of

the Act during the year that need to be entered in the register

maintained under that section of the Companies Act, 1956.

Annexure to Auditors Report(Referred to in Paragraph 2 of our report of even date)

Accordingly, clause (v) of paragraph 4 of the Order is notapplicable to the company for the current year.

7) According to information and explanation given to us, the

Company has not the accepted any deposits from the

public. Therefore, the directives issued by the Reserved

Bank of India and the provision of Section 58A and 58AA

or any other relevant provision of the Companies Act,

1956 and the Companies ( Acceptance of Deposit ) Rules

1975 are not applicable to the Company.

8) In our opinion, the company has an internal audit system

commensurate with the size & nature of its business.

9) The Central Government has not prescribed maintenance

of cost records under section 209(1) (d) of the CompaniesAct, 1956.

10) In respect of statutory dues:

a) According to the records of the company, undisputed

statutory dues including Provident Fund, investor

education and protection fund, employees state

insurance, income-tax, Sales Tax, Wealth tax, service

tax, customs duty, Excise duty, Cess and any other

statutory dues have been generally regularly deposited

with the appropriate authorities. According to the

information and explanations given to us, no

undisputed amounts payable in respect of the aforesaid

dues were outstanding as at 31st March, 2010 for a

period of more than six months from the date ofbecoming payable.

b) According to the information and explanations given

to us, there is no dues in respect of Income Tax, Wealth

Tax, Sales Tax, Service Tax, Customs Duty, Excise

Duty and cess, which has not been deposited on

account of any dispute.

11) The Company has no accumulated losses and has not

incurred any cash losses during the financial year covered

by our audit and in the immediately preceding financial

year.

12) The company has not raised loans from Financial

Institutions or Banks or by issue of debentures and hence

clause (xi) of paragraph 4 of the Order requiring comment

on repayment of the dues to them is not applicable.

13) In our opinion and according to the expiations given to us

and based on the information available, no loans and

advances have been granted by the company on the basis


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of security by way of pledge of shares, debentures andother securities.

14) In our opinion, the company is not a chit fund or a Nidhi/

mutual benefit fund/society. Therefore, the provisions of

clause (xiii) of paragraph 4 of the Order are not applicable

to the Company.

15) In our opinion and according to the explanations given to

us and based on the information available the company is

not dealings in or trading in shares, securities, debentures

and other investments. Therefore, the provisions of clause

(xiv) of the Order are not applicable to the Company.

16) According to the information and explanations given to us

the company has not given any guarantees for loans takenby others from banks or Financial Institutions. Therefore

the provisions of clause (xv) of the Order are not applicable

to the Company.

17) According to the information and explanations given to us,

and an overall examination of Balance Sheet of the company,

we are of the opinion that there are no term loans raised by

the company.

18) According to the information and explanations given to us

and on an overall examination of the Balance Sheet of the

company, we are the opinion that there are no funds raised

on short-term basis that has been used for long-term

investment.

19) The Company has not made any preferential allotment ofshares to parties and companies covered in the register

maintained under Section 301 of the Companies Act, 1956.

20) The Company has not issued any secured debentures during

the period covered by our audit.

21) The Company has not raised any monies by way of public

issue during the year. Therefore the Provision of Clause

(xx) of the order is not applicable to the company.

22) According to the information and explanations furnished

by the management, which has been relied upon by us,

there were no frauds on or by the company statements to

be materially misstated.

For CHATURVEDI & SHAH

Registration No.:- 101720W


Jignesh Mehta

Partner

Membership No. 102749

Place: Mumbai

Dated: April 16, 2010


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Schedule As at As at31st March, 2010 31st March, 2009

Rs. Rs. Rs. Rs.

SOURCES OF FUNDS

Shareholders Funds

Share Capital 1 1 00 000 1 00 000

Reserves & Surplus

- Surplus in Profit & Loss Account 1 14 83 651 1 12 01 983

1 15 83 651 1 13 01 983

Deferred Tax Liability 92 08 005 53 59 124

Total 2 07 91 656 1 66 61 107

Application of Funds

Fixed Assets :

Gross Block 2 2 51 78 78 760 2 49 79 69 232

Less : Depreciation 93 93 70 127 53 41 31 925

Net Block 1 57 85 08 633 1 96 38 37 307

Capital Work-in-Progress 63 21 303 88 01 535

1 58 48 29 936 1 97 26 38 842

Current Assets, Loans and Advances :

Current Assets

Sundry Debtors 3 8 51 86 347 25 84 61 636

Cash and Bank Balances 4 1 30 30 485 4 16 58 841

9 82 16 832 30 01 20 477

Loans and Advances 5 61 07 06 975 42 63 18 584

70 89 23 807 72 64 39 061

Less : Current Liabilities and Provisions : 6Current Liabilities 2 22 56 73 297 2 59 51 38 490

Provisions 4 72 88 790 8 72 79 762

2 27 29 62 087 2 68 24 18 252

Net Current Assets (1 56 40 38 280) (1 95 59 79 191)

Miscellaneous Expenditure 1 456 2 917

Less: Written off during the year 1 456 - 1 461 1 456

Total 2 07 91 656 1 66 61 107

Significant Accounting Policies and Notes on Accounts 11

Reliance Infosolutions Private LimitedBalance Sheet as at 31st March, 2010

As per our attached report of even date

ForChaturvedi & Shah For and on behalf of Board of Directors


Jignesh Mehta Jyotindra Thacker L. V. Merchant

Partner Director Director

Mumbai

Dated : April 16, 2010


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Schedule 2009-2010 2008-2009Rs. Rs. Rs. Rs.

Income

Income from Operations (net) 1 93 19 60 146 2 42 04 59 372

Other Income 7 1 27 53 742 4 99 954

1 94 47 13 888 2 42 09 59 326

Expenditure

Payments to and provisions for Employees 8 80 00 43 722 1 28 35 99 327

Operating and Other Expenses 9 57 42 61 520 57 16 43 307

Interest and Finance Charges 10 15 96 40 973 18 61 82 643

Depreciation 40 66 37 124 37 49 36 630

1 94 05 83 339 2 41 63 61 907Profit before Tax 41 30 549 45 97 419

Provision for Taxation :

Current Tax 6 38 170 3 88 769

Minimum Alternative Tax Credit (6 38 170) (3 88 769)

- -

Provision for Deferred Tax 38 48 881 (50 45 599)

Provision for Fringe Benefit Tax - 11 66 095

38 48 881 (38 79 504)

Profit after Tax 2 81 668 84 76 923

Balance brought forward from last year 1 12 01 983 27 25 060

Balance carried to Balance Sheet 1 14 83 651 1 12 01 983

Basic and Diluted Earnings per Share of face value 28.17 847.69

of Rs. 10 each (in Rupees)

(Refer Note II (3) of Schedule 11)

Significant Accounting Policies 11

and Notes on Accounts

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






Mumbai



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2009-2010 2008-2009Rs. Rs Rs. Rs.

A. CASH FLOW FROM OPERATING ACTIVITIES :

Net Profit before tax as per Profit and Loss Account 41 30 549 45 97 419

Adjusted for:

Miscellaneous Expenditure written off 1 456 1 461

Depreciation 40 66 37 124 37 49 36 630

Interest and Finance Charges 15 96 40 973 18 61 82 643

(Profit) / Loss on Sale of Fixed Assets (net) 1 27 412 1 44 278

Interest Income (1 26 97 897) -

55 37 09 068 56 12 65 012

Operating (Loss) / Profit before working capital changes 55 78 39 617 56 58 62 431

Adjusted for:

Trade and Other Receivables (1 15 45 463) 24 59 97 874Trade and Other Payables 72 02 746 10 25 56 293

(43 42 717) 34 85 54 167

Cash Generated from Operations 55 34 96 900 91 44 16 597

Taxes paid (1 09 43 215) (5 30 33 779)

Net Cash from Operating Activities 54 25 53 685 86 13 82 819

B. CASH FLOW FROM INVESTING ACTIVITIES :

Purchase of Fixed Assets (2 20 39 191) (56 52 39 274)

Sale of Fixed Assets 30 83 562 16 32 482

Sale of Investments - 1 00 000

Movement in Loans to Body Corporate 1 96 00 000 (9 91 00 000)

Interest Income 50 60 379 -

Net Cash Used in Investing Activities 57 04 750 (66 26 06 792)

C. CASH FLOW FROM FINANCING ACTIVITIES :

Interest on loan - (2 22 28 096)

Loan repaid - (12 15 00 000)

Interest & Finance Charges (15 96 40 973) (17 49 55 764)

Movement in Leased Liability (41 72 45 818) 15 37 62 213

Net Cash from Financing Activities (57 68 86 791) (16 49 21 647)

Net Increase / (Decrease) in Cash and Cash Equivalents (A+B+C) (2 86 28 356) 3 38 54 380

Opening Balance of Cash and Cash Equivalents 4 16 58 841 78 04 461

Closing Balance of Cash and Cash Equivalents 1 30 30 485 4 16 58 841

Cash Flow Statement for the year ended 31st March, 2010






Mumbai



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Schedule 1 : Share CapitalAs at As at

31st March, 2010 31st March, 2009

Rs. Rs. Rs. Rs.

Schedule 1 : Share Capital

Authorised :

50 000 Equity Shares of Rs.10/- each 5 00 000 1 00 000

(10 000)

5 00 000 1 00 000

Issued, Subscribed and Paid up :

10 000 Equity Shares of Rs.10/- each fully paid up 1 00 000 1 00 000

(10 000)

(All the above shares are held by holding company Reliance

Global Management Services Limited along with its nominees)

1 00 000 1 00 000

Schedules forming part of the Balance Sheet as at 31st March, 2010

Schedule 3 : Sundry Debtors

As at As at


Rs. Rs. Rs. Rs.

(Unsecured and Considered Good)

Debts outstanding for a period exceeding six months - -

Others Debts 8 51 86 347 25 84 61 636

Total 8 51 86 347 25 84 61 636

Schedule 2 : Fixed Assets

(Amt. in Rs.)

Descr ipt ion Gross Block Deprec iat io n Net Block

As at Additions Deduction/ As at For the Upto As at As at

1/Apr/09 Adjustments 31/Mar/10 year 31/Mar/10 31/Mar/10 31/Mar/09

Tangible Assets

Computers, Servers & Others 17 27 01 791 79 47 624 18 06 49 415 2 84 10 218 6 93 64 164 11 12 85 251 13 17 47 845

Vehicles 4 24 32 769 1 08 93 776 45 70 541 4 87 56 004 80 28 397 1 89 29 038 2 98 26 966 3 01 42 384

Furniture and Fixtures 4 97 773 4 97 773 69 931 1 81 401 3 16 372 3 86 303

Electrical Installation 1 49 54 381 45 59 526 1 95 13 907 24 43 152 29 75 946 1 65 37 961 1 44 21 587Leased Assets :

Computer Equipments 2 26 73 82 518 39 354 2 26 73 43 164 36 75 47 530 84 77 81 682 1 41 95 61 482 1 78 71 39 189

Intangible Assets

Software * 11 18 497 - 11 18 497 1 37 896 1 37 896 9 80 601 -

Total 2 49 79 69 232 2 45 19 423 46 09 896 2 51 78 78 760 40 66 37 124 93 93 70 127 1 57 85 08 633 1 96 38 37 308

Previous Year 1 93 31 87 494 56 72 23 298 24 41 560 2 49 79 69 232 37 49 36 630 53 41 31 925 1 96 38 37 307 1 77 33 27 399

Capital Work-in-Progress 63 21 303 88 01 535

* Other than internally generated


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Schedule 4 : Cash and Bank BalancesAs at As at


Balances with Scheduled Banks :

- Current Accounts 1 30 30 485 4 16 58 841

Total 1 30 30 485 4 16 58 841

Schedule 5 : Loans and Advances

As at As at


(Unsecured, Considered Good)

Advances recoverable in cash or in kind or for value to be received 37 07 00 504 17 82 42 234

Advance Income Tax 13 39 75 296 12 30 83 345

Deposits 40 32 000 40 32 000

MAT Credit Entitlement 22 19 175 15 81 005

Loan to Body Corporate 9 97 80 000 11 93 80 000

Total 61 07 06 975 42 63 18 584

Schedule 6 : Current Liabilities and Provisions

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

Current Liabilities :

Sundry Creditors - Micro, Small and Medium Enterprises @ - -

Sundry Creditors - Others 10 12 81 909 82 13 867

Other Current Liabilities 75 92 82 565 80 45 69 982

Liability for Leased Assets 1 36 51 08 823 1 78 23 54 641

2 22 56 73 297 2 59 51 38 490

Provisions :

Provision for Income Tax 1 47 39 336 1 41 52 430

Provision for Superannuation / Gratuity/Leave Encashment 3 25 49 454 7 31 27 3324 72 88 790 8 72 79 762

Total 2 27 29 62 087 2 68 24 18 252

@ The Company has not received intimation from vendors regarding their status under the Micro, Small and Medium Enterprises

Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid /

payable under this Act have not been given.

Schedules forming part of the Balance Sheet as at 31st March, 2010


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2009-2010 2008-2009Rs. Rs.

Schedule 7 : Other Income

Interest Received 1 26 97 897 4 73 710

(Tax deducted at source Rs. 12 35 545 ; Previous Year Rs. Nil)

Profit on Sale of Fixed Assets 55 845 26 244

Total 1 27 53 742 4 99 954

Schedule 8 : Payments to and provisions for Employees

2009-2010 2008-2009Rs. Rs.

Salaries, wages and allowances 65 29 18 575 97 15 59 822

Contribution to Provident Fund, Gratuity Fund, 7 06 81 596 28 01 89 756Superannuation Fund, Pension Scheme etc.

Employees Welfare and other amenities 7 64 43 551 3 18 49 749

Total 80 00 43 722 1 28 35 99 327

Schedule 9 : Operating and Other Expenses

2009-2010 2008-2009Rs. Rs.

Conveyance and Travelling Expenses 15 48 333 19 22 749

Electricity Expenses 2 06 749 46 76 440

Insurance Expenses 7 34 796 8 17 990

Telephone & Connectivity Expenses 13 29 27 754 11 70 39 276

Professional Fees 24 83 77 174 18 58 11 325

Rent for office premises 1 20 000 84 24 000

Infrastructure Support Services 10 76 00 000 23 79 39 000

Repairs and Maintenance 5 48 64 667 1 18 55 936

Payment to Auditors 1 75 000 1 50 000

Exchange Differences (Net) 34 29 759 (5 06 203)

Preliminary Expenditure written off 1 456 1 461

Loss on Sale of Fixed Assets 1 83 257 1 70 522

Donation - 4 722

General Expenses 2 40 92 575 33 36 089

Total 57 42 61 520 57 16 43 307

Schedule 10 : Interest and Finance Charges

2009-2010 2008-2009Rs. Rs.

Interest on Unsecured Loans - 1 12 26 879

Lease Finance Charges 15 95 54 617 17 49 55 764

Others 86 356 -

Total 15 96 40 973 18 61 82 643

Schedules forming part of the Profit and Loss Account for the year ended on31st March, 2010


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SCHEDULE 11SIGNIFICANT 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 and the provisions of the Companies Act, 1956.

2 Use of Estimates:

The preparation of the 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

reported period. Differences between the actual results and estimates are recognised in the period in which the results are

known/ materialised.

3 Own Fixed Assets:

Fixed assets are stated at cost net of cenvat /value added tax less accumulated depreciation and impairment loss, if any. Allcosts, including financing cost till commencement of commercial production, net charges on foreign exchange contracts and

adjustments arising from exchange rate variations attributable to the fixed assets are capitalised.

4 Leased Assets:

Finance Lease: The lower of the fair value of the assets and present value of the minimum lease rentals is capitalised as fixed

assets with coressponding amount shown as lease liability. The principal component in the lease rental is adjusted against

the lease liability and the interest component is charged to profit and loss account.

5 Depreciation:

Depreciation on Computer equipment (leasehold assets & other assets) has been provided on Straight Line Method (SLM)

while depreciation on furniture, office equipment and vehicles provided on Written Down Value (WDV) method at the rate

and in the manner prescribed in schedule XIV to the Companies Act,1956 on pro-rata basis.

6 Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is chargedto the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in

prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

7 Investment:

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.

8 Revenue Recognition:

Revenue is recognised only when no significant uncertainty as to measurability or collectability exists.

9 Miscellaneous Expenditure( to the extent not written off or adjusted):

Expenditure carried forward under this head is being amortised as follows:

Preliminary expenses: -The expenses are written off 1/5thevery year.

10 Foreign Currency Transactions:

i) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on 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 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.

Significant Accounting Policies and Notes on Accounts for the year ended on31st March, 2010


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iv) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the

profit & loss account except in case of long term liabilities, where they relate to acquisition of fixed assets in which case

there are adjusted to the carrying cost of such assets.

11 Provision, Contingent Liability 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.

12 Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income- tax

Act, 1961.

Deferred tax resulting from timing difference between taxable and accounting income is accounted for using the tax rates

and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognised andcarried forward only to the extent that there is a virtual certainty that the assets will be realised in future.

13 Employee Retirement Benefit:

i) Short term employee benefit are recognised as an expenses 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 expenses in profit and losses account of

the year in which the related service is rendered. The expenses is recognised at the present value of the amount payable

determined using actuarial valuation technique as per Life Insurance Corporation. Actuarial gains and losses in respect

of post employment and other long term benefit are charged to the profit and loss account.

II Notes on Balance Sheet and Profit and Loss Account :

1 The previous years figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and

other disclosures for the preceeding 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 Payment to Auditors : Amount (Rs.) Amount (Rs.)

2009-2010 2008-2009

a) Audit Fees 1 45 000 1 20 000

b) Tax Audit Fees 30 000 30 000

Total 1 75 000 1 50 000

3 Earning Per Share (EPS) : Amount (Rs.) Amount (Rs.)

2009-2010 2008-2009

a) Net Profit after tax (Rs.) 2 81 668 84 76 923

b) Weighted average number of

- Equity shares

- Basic and Diluted 10 000 10 000

c) Nominal value of equity share (Rs.) 10 10

d) Basic and diluted ( EPS ) (Rs.) 28.17 847.69

SCHEDULE 11 (Contd.)


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4 Fixed assets acquired on finance lease:

(Amt. in Rs.)

Total Minimum Future Interest Present Value

Lease Payments on Outstanding of Minimum

Outstanding Lease Payments Lease Payments

As at 31st As at 31st As at 31st As at 31st As at 31st As at 31st

March, 2010 March, 2009 March, 2010 March, 2009 March, 2010 March, 2009

Within one year 57 86 02 800 57 81 43 260 11 56 74 791 15 93 87 538 46 29 28 009 41 87 55 722

Later than one year not

later than five years 99 47 48 123 1 57 15 12 765 9 25 67 309 20 79 13 844 90 21 80 814 1 36 35 98 919

Later than five years - - - - - -Total 1 57 33 50 923 2 14 96 56 025 20 82 42 100 36 73 01 382 1 36 51 08 823 1 78 23 54 641

General Description of Lease Terms:

i) Lease rental are charged on the basis of agreed terms.

ii) Assets taken on lease are fixed non-cancellable period of 5 years.

5 Related Party disclosures:

As per the Accounting Standard 18 as notified by Companies (Accounting Standards) Rules, 2006, the disclosure of transactions

with the related parties as defined in the Accounting Standard are given below:

(i) List of related parties where control exists and related parties with whom transactions have taken place and relationships :

Sr No Name of Related Parties Relationship

1 Reliance Industries Limited Ultimate Holding Company

2 Reliance Global Management Services Limited Holding Company

3 Gapoil Tanzania Limited

4 GAPCO Kenya Limited

5 GAPCO Rwanda SARL

6 GAPCO Tanzania Limited

7 GAPCO Uganda Limited

8 Reliance Autozone Limited

9 Reliance Brands Limited

10 Reliance Corporate IT Park Limited Fellow Subsidiary

11 Reliance Dairy Foods Limited

12 Reliance F & B Services Limited

13 Reliance Financial Distribution and Advisory Services Limited14 Reliance Food Processing Solutions Limited

15 Reliance Footprint Limited

16 Reliance Fresh Limited

17 Reliance Homestores Limited



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Sr No Name of Related Parties Relationship

18 Reliance Hypermart Limited

19 Reliance Integrated Agrisolutions Limited

20 Reliance Lifestyle Holdings Limited

21 Reliance People Serve Limited

22 Reliance Retail Finance Limited

23 Reliance Retail Insurance Broking Limited

24 Reliance Retail Limited

25 Reliance Retail Travel & Forex Services Limited

26 Reliance Supply Chain Solutions Limited Fellow Subsidiary

27 Reliance Trade Services Limited

28 Reliance Trends Limited

29 Reliance Universal Ventures Limited

30 Reliance Wellness Limited

31 Reliancedigital Retail Limited

32 RESQ Limited

33 Retail Concept Services (India) Limited

34 Strategic Manpower Solutions Limited

(ii) Transactions during the year with related parties :

S No Nature of Transactions Ultimate Fellow Total

(Excluding reimbursements) Holding Subsidiary

A) Sundry Debtors

Balances as at 31st March, 2010 - 6 49 38 136 6 49 38 136

- (6 41 04 670) (6 41 04 670)

B) Other Current Liabi lities

Balance as at 31st March, 2010 59 25 53 653 - 59 25 53 653

( 42 27 27 729) - ( 42 27 27 729)

C) Liability for Leased Assets

Balance as at 31st March, 2010 69 01 70 216 - 69 01 70 216

D) Income from Operations 48 00 00 000 9 49 78 560 57 49 78 560

(5 45 30 030) (5 71 175) (5 51 01 205)

E) Operating and Other Expenses

Infrastructure Support Services - - -

- (4 38 298) (4 38 298)

F) Lease Finance charges 8 14 48 430 - 8 14 48 430

G) Purchase of Fixed Assets - 1 42 607 1 42 607



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Disclosure in respect of Material Related Party Transactions during the year

(1) Sundry Debtors balances include Gapoil Tanzania Limited Rs. 1 62 44 640 (Previous Year Rs. 1 01 90 000), Gapco

Kenya Limited Rs. 1 68 04 800 (Previous Year Rs. 85 59 600) , Gapco Rwanda Sarl Rs. 61 61 760 (Previous Year Rs.

Nil), Gapco Uganda Limited Rs. 95 22 720 (Previous Year Rs. Nil), Gapco Tanzania Limited Rs. 1 62 44 640 (Previous

Year Rs. Nil).

(2) Other Current Liabilities include Reliance Industries Limited Rs. 59 25 53 653 (Previous Year Rs. 42 27 27 729)

(3) Liability For Lease Assets include Reliance Industries Limited Rs. 69 01 70 216.

(4) Income from operations includes Reliance Industries Limited - Rs.48 00 00 000. (Previous Year - Rs. 29 84 869 );

Motech Software Private Limited Rs. Nil (Previous Year Rs. 5 15 41 161) ; Gapoil Tanzania Limited Rs. 1 62 44 640

(Previous Year Rs. 1 01 90 000), Gapco Kenya Limited Rs. 1 68 04 800 (Previous Year Rs. 23 451) , Gapco Rwanda

Sarl Rs. 61 61 760 (Previous Year Rs. Nil), Gapco Uganda Limited Rs. 95 22 720 (Previous Year Rs. Nil), Gapco

Tanzania Limited Rs. 1 62 44 640 (Previous Year Rs. 27 918).

(5) Operating and other Expenses include Reliance Corporate IT Park Limited Rs. Nil (Previous Year Rs. 4 38 298)

(6) Lease Finance charges include Reliance Industries Limited Rs. 8 14 48 430 (Previous Year Rs. Nil)

(7) Purchase of fixed Assets includes Reliancedigital Retail Limited Rs. 1 42 607 (Previous Year Rs. Nil)

6 Taxes on Income as per Accounting Standard (AS) 22

The Deferred Tax Assets/Liability comprises of the following:

Amount (Rs.) Amount (Rs.)

2009-2010 2008-2009

Deferred Tax Liability :

Related to Fixed Assets 4 46 59 019 2 70 30 494

Total Deferred Tax Liabilities (A) 4 46 59 019 2 70 30 494

Deferred Tax Asset:

Unabsorbed Depreciation / Business Losses

(carried forward under Income Tax Act, 1961) 3 54 51 014 2 16 71 370

Total Deferred Tax Assets (B) 3 54 51 014 2 16 71 370

Deferred Tax Liabilities Net (A-B) 92 08 005 53 59 124

7 The principal business of the Company is providing information technology services. All other activities of the Company

revolve around / are connected with its principal business. Accordingly, there is no separate reportable segment as defined

by the Accounting Standard 17 Segment Reporting notified by Companies (Accounting Standards) Rules, 2006.

8 As the company is not a manufacturing company, information in respect of manufacturing activities required under Para 3

and 4 of Part II of Schedule VI of the Companies Act, 1956 are not given.

9 Value of Imports on CIF basis in respect of Capital Goods Rs.7 63 600 (Previous Year Rs. Nil)

10 Earning in Foreign Exchange


2009-2010 2008-2009

Income from Operations (net) 7 15 73 145 2 15 84 600



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11 Expenditure in Foreign Currency


2009-2010 2008-2009

Travelling Expenses 2 97 756 6 18 530

Professional Fees - 1 29 40 074

Repairs and Maintenance 89 56 787 -

92 54 543 1 35 58 604

12 As per AS - 15 Employee Benefits (Rev. 2005), the disclosures of Employee benefits as defined in the Accounting

Standard are given below:-

Defined Contribution Plan

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


2009-2010 2008-2009

Employers Contribution to Provident Fund 2 41 14 107 3 18 18 351

Employers Contribution to Superannuation Fund 57 91 909 65 10 357

Employers Contribution to Pension Scheme 72 87 419 1 17 35 017

Employers Contribution to Leave Encashment Scheme 2 68 74 365 22 58 68 495

Defined Benefit Plan

The employees gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is

determined based on actuarial valuation, as per Life Insurance Corporation, using the Projected Unit Credit Method, which

recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unitseparately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

I Reconciliation of opening and closing balances of Defined Benefit obligation

(Funded) (Funded)


2009-2010 2008-2009

Defined Benefit obligation at beginning of the year 4 73 35 334 4 59 29 929

Current Service Cost 40 15 252 58 00 682

Interest cost 37 86 827 36 74 394

Actuarial (gain) / loss on obligations 41 79 055 (20 82 461)

Benefits paid (94 28 225) (59 87 210)

Settlement Cost - -

Defined Benefit obligation at end of the year 4 98 88 243 4 73 35 334



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

Gratuity Gratuity

(Funded) (Funded)


2009-2010 2008-2009

Fair value of plan assets at the beginning of the year 4 43 68 467 69 55 969

Expected return on plan assets 40 91 046 36 17 786

Actuarial (gain) / loss - -

Employer Contribution 29 66 867 3 89 73 960

Other Transfers 22 14 999 8 07 962

Benefits Paid (94 28 225) (59 87 210)

Settlement Cost - -

Fair value of plan assets at the end of the year 4 42 13 154 4 43 68 467

III Reconciliation of fair value of assets and obligations

Gratuity Gratuity

(Funded) (Funded)


2009-2010 2008-2009

Fair value of plan assets at end of year 4 42 13 154 4 43 68 467

Present Value of obligation 4 98 88 243 4 73 35 334

Amount recognised in Balance Sheet 56 75 089 29 66 867(Actual rate of return = Estimated rate of return as ARD falls on 31st March)

IV Expenses recognised during the year

(Under the haed Payments to and provisions for employees:-Refer schedule-12)

Gratuity Gratuity

(Funded) (Funded)


2009-2010 2008-2009

Current Service Cost 40 15 252 58 00 682

Interest Cost 37 86 827 36 74 394

Expected return on plan assets ( 40 91 046) ( 36 17 786)

Actuarial (gain) / loss 41 79 055 ( 20 82 461)

Other Transfers (22 14 999) (8 07 962)

Net Cost 56 75 089 29 66 867



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VI Actuarial Assumptions

Gratuity Gratuity

(Funded) (Funded)

2009-2010 2008-2009

Mortality Table (Life Insurance Corporation) 1994-96 1994-96

(Ultimate) (Ultimate)

Discount Rate (per annum) 8% 8%

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

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.The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition

of plan assets held, assessed risks, historical results of return on plan assets and the Companys policy for plan assets

management.

13 Foreign currency exposure that are not hedged by derivative instruments or forward contracts as at March 31, 2010 amount

to Rs. 7 15 73 145 (Previous Year Rs. 1 87 49 600)







Mumbai



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I. Registration Details:

Registration No: U 7 2 2 0 0 M H 2 0 0 5 P T C 1 5 4 4 5 6

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

II. Capital raised during the year at face value (Amount in Rs. Thousands)

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

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

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

Total Liabilities: 2 2 9 3 7 5 4 Total Assets: 2 2 9 3 7 5 4

Sources of Funds:

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

Reserves & Surplus: 1 1 4 8 4 Capital Work-in-Progress: 6 3 2 1

Unsecured Loan: N I L Current Assets: 7 0 8 9 2 4

Deferred Tax Liability: 9 2 0 8 Misc. Expenditure: N I L

Current Liabilities & 2 2 7 2 9 6 2

Provision

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

Turnover: 1 9 3 1 9 6 0 Total Expenditure: 1 9 4 0 5 8 3

+ - + -

Profit/Loss Before Tax: 4 1 3 1 Profit/Loss After tax: 2 8 2

Earning per share in Rs: 2 8 . 1 7 Dividend rate %: N I L

V. Generic Names of Three Principal Products / Services of Company (as per monetary terms)

Item Code No. (ITC Code): N A

Product Description: IT Support Services

Item Code No. (ITC Code): 8 5 2 4 9 0 0 9

Product Description: Computer Software

Balance Sheet Abstract and Companys General Business Profile

reliance infosolutions private limited balance sheet

Documents