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Notes to Accounts of REI Six Ten Retail Ltd.

Mar 31, 2015

1) CORPORATE INFORMATION

REI Six Ten Retail Limited (RSTRL) was incorporated in March 2007 as Retail chain. The first SixTen stores were set up as part of REI Agro Limited. The business of retail was demerged into RSTRL since August 2007. The Company initially set up stores in the 'Company Owned Company Operated' (COCO) model. However, with a view to increase the efficiency, the company franchised all its stores and the logistics were also being handled by Master Franchisees. Since 1st January,2014 the Company has discontinued with its retail franchisee model and only operates wholesale 'Cash and Carry1 model.

2. Rights, Preferences and restrictions attached to equity shares:

The company has only one class of equity shares having a par value of Rs.2 per share. Each share holder of equity shares is entitled to one vote per share. The dividend proposed if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General meeting except in case of Interim Dividend.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per records of the company, including Register of members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

*Based on the information available with the company there are no dues payable to Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act 2006.This has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

3. SEGMENT REPORTING:

The Company is engaged in only one segment ' Retail Business'.

4. During the year there is no Deferred Tax Liability due to accumulated depreciation computed in accordance with the Income Tax Act,1961 and Deferred Tax Asset has not been recognized in absence of convincing evidence and virtual certainty of Income and also in view of prudent accounting policy.

5. Short Term Borrowing from a Bank (as Stated in Note 7 above) is payable on demand for which sanction letter stating the terms & conditions is yet to be obtained.

6. Loan to a body corporate (as Stated in Note 15 above) has been given for which terms & conditions are yet to be finalised.

7. RELATED PARTY DISCLOSURES:

In accordance with Accounting Standard 18 on Related Party Disclosure issued by the Institute of Chartered Accountants of India, are given below :

(I) List of Related Parties :

a) Name of the Companies where control exists (either individually or with others)

i. REI Agro Limited

ii. Aspective Vanijya Pvt. Ltd.

iii. Jagadhatri Tracon Pvt. Ltd.

iv. REI Steel & Timber Pvt. Ltd.

v. Snehapusph Barter Pvt. Ltd.

vi. Shree Krishna Gyanodaya Flour Mills Pvt. Ltd.

vii. Subhchintak Vancom Pvt Ltd.

viii. Dr. ING N.K.Gupta Technical Consultants Pvt. Ltd.

b) Key Management Personnel :

Mr. Sandip Jhunjhunwala - Managing Director

c) Director's Relatives: -

i. Mr. Kailash Chandra Jhunjhunwala

ii. Mrs. Koushalya Devi Jhunjhunwala

iii. Mr.Sanjay Jhunjhunwala

iv. Mrs. Sangita Jhunjhunwala

v. Mrs. Suruchi Jhunjhunwala

vi. Mr. Shreyans Jhunjhunwala

8. CONTINGENT LIABILITIES

No Liability has been recognized in the Financial Statements against the suits filed by the creditor & others amounting to Rs. 68,051,391/- (68,051,391/-) . The management does not foresee any material liability in other cases and such amount could not be ascertained with concrete evidences.

9. Previous year's figures have been regrouped/re-arranged wherever considered necessary.






Mar 31, 2014

1) SHARE CAPITAL a) Rights,Preferences and restrictions attached to equity shares:

The company has only one class of equity shares having a par value of Rs. 2 per share. Each share holder of equity shares is entitled to one vote per share. The dividend proposed if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General meeting except in case of Interim Dividend.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

b) As per records of the company, including Register of members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

2) TRADE PAYABLE

*Based on the information available with the company there are no dues payable to Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act 2006.This has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

3) FIXED ASSETS

1) Impairment of Assets has been done on the basis of value of assets existing up to 31.03.2013 and depreciation has been provided on SLM after considering the Impairment. The impairment of assets is reviewed at the end of every year.

2) Earlier Depreciation wrongly claimed on Gross Assets before impairment, now reversed and shown in quarterly/Half yearly results as exceptional Items.

4) SEGMENT REPORTING

As the company business activities fall within a single primary segment viz. trading business.(mainly foodproducts),the disclosure requirements of accounting Standard(As-17)"Segment Reporting" notified under the Companies Act,1956 read with general circular 08/2014 dated April,04,2014 issued by the Ministry of Corporate affairs are not applicable.

5) RELATED PARTY DISCLOSURES

In accordance with Accounting Standard 18 on Related Party Disclosure issued by the Institute of Chartered Accountants of India, are given below (where transaction exists)

(I) List of Related Parties

a) Name of the Companies where control exists (either individually or with others)

i. REI Agro Limited

ii. Aspective Vanijya Pvt. Ltd.

iii. Jagadhatri Tracon Pvt. Ltd.

iv REI Steel & Timber Pvt. Ltd.

v. Snehapusph Barter Pvt. Ltd.

vi. Shree Krishna Gyanodaya Flour Mills Pvt. Ltd.

vii. Subhchintak Vancom Pvt Ltd.

viii. Dr. ING N.K.Gupta Technical Consultants Pvt. Ltd.

b) Key Management Personnel

Mr. Sandip Jhunjhunwala - Managing Director

c) Director''s Relatives

i. Mr. Kailash Chandra Jhunjhunwala

ii. Mrs. Koushalya Devi Jhunjhunwala

iii. Mr.Sanjay Jhunjhunwala

iv Mrs. Sangita Jhunjhunwala

v. Mrs. Suruchi Jhunjhunwala

vi. Mr. Shreyans Jhunjhunwala

6) CONTINGENT LIABILITIES

No Liability has been recognized in the books against the suits filed by the creditor & others amounting to Rs. 68,051,391/- (68,051,391/-) as the management does not foresee any material liability in such cases and such amount could not be ascertained with concrete evidences.

7) Previous year''s figures have been regrouped/re-arranged wherever considered necessary.


Mar 31, 2013

1) CORPORATE INFORMATION

REI Six Ten Retail Limited (RSTRL) was incorporated in August 2007 as Retail chain. The first 6Ten stores were set up as part of REI Agro Limited. The business of retail was demerged into RSTRL since August 2007. The company initially set up stores in the ''company owned company operated'' (COCO) model. However, with a view to increase the efficiency, the company franchised all its stores. Similarly logistics are now being handled by Master Franchisees.

2.1 Notes to Employee Benefits Expenses

a) Gratuity expenses includes provision reversed for the year ended March 31, 2013 Rs. (5,16,050/-) {P.Y Rs. 5,18,642/-}

b) Leave Encashment includes provision reversed for the year ended March 31, 2013 Rs. (16,807/-) {P.Y Rs. 36,154/-}

c) Disclosures pursuant to Accounting Standard-15 (Revised) ''Employees Benefits'':

i) Defined Contribution Plans

In accordance with the Accounting Standard 15 on Employee Benefits issued by The Institute of Chartered Accountants of India, the company makes payment of its contribution to Recognized Provident Fund Commissioner (RPFC).

ii) Defined Benefit Plans

In keeping with the company Gratuity scheme (Defined Benefit Plan) eligible employees are entitled to gratuity benefits at one and half month''s eligible salary for each completed year of service on Retirement / Death / Termination. Vesting occurs upon completion of 5 years of service subject to the payment of Gratuity Act, 1972. The present value of obligation is determined based on actuarial valuation using the ''Projected Unit Credit Method''. Obligation for the leave encashment is recognized in the same manner as Gratuity. Following are the further particulars with respect to Gratuity & Leave Encashment.

3) SEGMENT REPORTING:

The company is engaged in Retail business which constitutes single business segment. The company''s operation is only in India. In view of this Primary and Secondary reporting disclosures for business and geographical segment as envisaged in Accounting Standard – 17 issued by ''ICAI'' are not applicable to the company.

4) RELATED PARTY DISCLOSURES:

In accordance with Accounting Standard 18 on Related Party Disclosure issued by the Institute of Chartered Accountants of India, are given below (where transaction exists):

(I) List of Related Parties :

a) Name of the Companies where control exists (either individually or with others) i. REI Agro Limited

ii. Aspective Vanijya Pvt. Ltd.

iii. Jagadhatri Tracon Pvt. Ltd.

iv. REI Steel & Timber Pvt. Ltd.

v. Snehapusph Barter Pvt. Ltd.

vi. Shree Krishna Gyanodaya Flour Mills Pvt. Ltd.

vii. Subh Chintak Vancom Pvt Ltd.

viii. Dr. ING N.K.Gupta Technical Consultants Pvt. Ltd.

b) Key Management Personnel :

Mr. Sandip Jhunjhunwala - Managing Director

c) Director''s Relatives :

i. Mr. Kailash Chandra Jhunjhunwala

ii. Mrs. Koushalya Devi Jhunjhunwala

iii. Mr. Sanjay Jhunjhunwala

iv. Mrs. Sangita Jhunjhunwala

v. Mrs. Suruchi Jhunjhunwala

vi. Mr. Shreyans Jhunjhunwala

5) CONTINGENT LIABILITIES

No Liability has been recognised in the books against the suits filed by the creditor & others amounting to Rs. 68,051,391/- as the management does not foresee any material liability in such cases and such amount could not be ascertained with concrete evidences.

6) Previous year''s figures have been re-grouped/re-arranged wherever considered necessary.


Mar 31, 2012

1) CORPORATE INFORMATION

REI Six Ten Retail Limited (RSTRL) was incorporated in August 2007 as Retail chain and today it is a leading name in small store format in the neighborhood convenience stores space. The first 6 Ten stores were set up as part of REI Agro Limited. The business of retail was demerged into RSTRL since August 2007. The company initially set up stores in the ,company owned company operated, (COCO) model. However, with a view to increase the efficiency, the company franchised all its stores. Similarly logistics are now being handled by Master Franchisees. With this the company could achieve remarkable presence in a short period.

2.1 Notes to Employee Benefits Expenses

a) Gratuity expenses includes provision reversed for the year ended March 31, 2012 Rs. (-) 5,18,642 (P.Y Rs. 1,65,331)

b) Leave Encashment includes provision made for the year ended March 31, 2012 Rs. 36,154 (P.Y Rs. (-) 4,36,026)

c) Disclosures pursuant to Accounting Standard-15 (Revised) ,Employees Benefits,:

i) Defined Contribution Plans

In accordance with the Accounting Standard 15 on Employee Benefits issued by The Institute of Chartered Accountants of India, the company makes payment of its contribution to Recognized Provident Fund Commissioner (RPFC).

ii) Defined Benefit Plans

In keeping with the company Gratuity scheme (Defined Benefit Plan) eligible employees are entitled to gratuity benefits at one and half month,s eligible salary for each completed year of service on Retirement/Death/Termination. Vesting occurs upon completion of 5 years of service subject to the payment of Gratuity Act, 1972. The present value of obligation is determined based on actuarial valuation using the ,Projected Unit Credit Method,. Obligation for the leave encashment is recognized in the same manner as Gratuity. Following are the further particulars with respect to Gratuity & Leave Encashment.

The principal assumption used in the calculation are the (1) Discount Rate (2) Salary increase. The Discount rate is based upon the market yields available on government bonds at the accounting date with a term that matches that of the liabilities and the salary increase take account of inflation, seniority, promotion and other relevant factors.

3) SEGMENT REPORTING:

The company is engaged in Retail business which constitutes single business segment. The company,s operation is only in India. In view of this Primary and Secondary reporting disclosures for business and geographical segment as envisaged in Accounting Standard - 17 issued by ,ICAI, are not applicable to the company.

4) RELATED PARTY DISCLOSURES:

In accordance with Accounting Standard 18 on Related Party Disclosure issued by the Institute of Chartered Accountants of India, are given below (where transaction exists):

(I) List of Related Parties :

a) Name of the Companies where control exists (either individually or with others) i. REI Agro Limited

ii. Aspective Vanijya Pvt. Ltd.

iii. Jagadhatri Tracon Pvt. Ltd.

iv. REI Steel & Timber Pvt. Ltd.

v. Snehapusph Barter Pvt. Ltd.

vi. Shree Krishna Gyanodaya Flour Mills Pvt. Ltd.

vii. Subh Chintak Vancom Pvt Ltd.

viii. Dr. ING N.K.Gupta Technical Consultants Pvt. Ltd.

b) Key Management Personnel :

Mr. Sandip Jhunjhunwala - Managing Director

c) Director,s Relatives: -

i. Mr. Kailash Chandra Jhunjhunwala

ii. Mrs. Koushalya Devi Jhunjhunwala

iii. Mr. Sanjay Jhunjhunwala

iv. Mrs. Sangita Jhunjhunwala

v. Mrs. Suruchi Jhunjhunwala

vi. Mr. Shreyans Jhunjhunwala

5) CONTINGENT LIABILITIES

No Liability has been recognised in the books against the suits fled by the creditor & others as the management does not foresee any material liability in such cases and such amount could not be ascertained with concrete evidences. Previous year,s figures have been regrouped/re-arranged wherever considered necessary.


Mar 31, 2011

1) Fully Convertible Debentures:

The company has issued 27,00,000 , Zero % fully Convertible Debentures of Rs. 100/- each on Preferential basis to other than Promoters and is convertible into 13,95,002 Equity Share of Rs 21- each on conversion. The Equity Share of Rs 2/-has been allotted as above at a price of Rs 193.55 (Including Security Premium of Rs 191.55) on 26th April 2011,

2) Disclosure underthe Micro, Small & Medium Enterprises Development Act 2006:

Based on the information available with the company there are no dues payable to Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act 2006.

This information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

3) Disclosures pursuant to Accounting Standard-15 (Revised) 'Employees Benefits':

a) Defined Contribution Plans

In accordance with the Accounting Standard 15 on employee benefits issued by The Institute of Chartered Accountants of India, employer- established provident fund trust are treated as defined benefits plans.

b) Defined Benefit Plans

In keeping with the company Gratuity scheme (Defined Benefit Plan) eligible employees are entitled to gratuity benefits at one and half month's eligible salary for each completed year of service on Retirement / Death / Termination. Vesting occurs upon completion of 5 years of service subject to the payment of Gratuity Act, 1972. The present value of obligation is determined based on actuarial valuation using the 'projected unit credit method'. Obligation for the leave encashment is recognized in the same manner as Gratuity. Following are the further particulars with respect to Gratuity & Leave Encashment.

The Principal assumptions used in the calculation are the (1) Discount Rate, (2) Salary increase. The Discount rate is based upon the market yields available on Government Bonds at the accounting date with a term that matches that of the liabilities and the salary increase take account of inflation, seniority, promotion and other relevant factors.

Note: - With the change in Company's policy gradually from own retail outlets to Franchise Outlets, number of employees has significantly varying resulting in change in Provision during the year for Gratuity and Leave Encashment Rs 1.65 lacs and Rs (-)4.36 lacs {Previous year Rs (-)32.14 lacs and (-) Rs 32.94 lacs respectively.

4) The company is engaged in Retail business which constitutes single business segment. The company's operation is only in India. In view of this Primary and Secondary reporting disclosures for business and geographical segment as envisaged in Accounting Standard -17 issued by 'ICAI' are not applicable to the company.

7) Related party disclosures:

In accordance with Accounting Standard 18 on Related Party Disclosure issued by the Institute of Chartered Accountants of India, are given below (where transaction exists):

(I) List of related parties:

a) Name of the Companies where control exists (either individually or with others) i. REIAgro Limited

ii. AspectiveVanijya Pvt. Ltd.

iii. JagadhatriTraconPvt. Ltd.

iv. REI Steel & Timber Pvt. Ltd.

v. Snehpusph Barter Pvt. Ltd.

vi. Shree Krishna Gyanodaya Flour Mills Pvt. Ltd.

vii. SubhchintakVancomPvtLtd.

viii. Dr. ING N.K.Gupta Technical Consultants Pvt. Ltd.

b) Key Management Personnel:-

Mr. Sandip Jhunjhunwala Managing Director

c) Director's Relatives: -

d) i. Mr. Kailash Chandra Jhunjhunwala

ii. Mrs. Koushalya Devi Jhunjhunwala

iii. Mr.SanjayJhunjhunwala

iv. Mrs. Sangita Jhunjhunwala

v. Mrs. Suruchi Jhunjhunwala


Mar 31, 2010

1) Share Capital:

Authorized Share Capital of the Company has since been increased to Rs. 50,00,00,000 divided into 25,00,00,000 equity shares of Rs.2 each.

2) Fully Convertible Debentures:

The company has issued 27,00,000, Zero % Fully Convertible Debentures of Rs 100/- each on Preferential basis to other than Promoters and is convertible into 13,95,002 Equity Shares of Rs 2/- each on conversion.

3) Impairment of Fixed Assets:

During the year impairment loss on Fixed Assets (Gross - Rs. 489.88 Lacs, net of deferred taxes Rs. 323.37 Lacs) relates to various items of Fixed Assets that have been brought down to their recoverable values upon evaluation of future economic benefits from their use.

4) Disclosure under the Micro, Small & Medium Enterprises Development Act 2006:

Based on the information available with the company there is no dues payable to Micro, Small and Medium Enterprises as defined in Micro, Small and Medium Enterprises Development Act 2006.

5) Disclosures pursuant to Accounting Standard-15 (Revised) Employees Benefits:

a) Defined Contribution Plans

In accordance with the Accounting Standard 15 on employee benefits issued by The Institute of Chartered Accountants of India, employer- established provident fund trust are treated as defined benefits plans.

b) Defined Benefit Plans

In keeping with the company Gratuity scheme (Defined Benefit Plan) eligible employees are entitled to gratuity benefits at one and half months eligible salary for each completed year of service on Retirement / Death / Termination. Vesting occurs upon completion of 5 years of service subject to the payment of Gratuity Act, 1972. The present value of obligation is determined based on actuarial valuation using the projected unit credit method. Obligation for the leave encashment is recognised in the same manner as Gratuity.

6) The company is engaged in Retail business which constitutes single business segment. The companys operation is only in India. In view of this Primary and Secondary reporting disclosures for business and geographical segment as envisaged in Accounting Standard - 17 issued by ICAI are not applicable to the company.

7) Related party disclosures:

In accordance with Accounting Standard 18 on Related Party Disclosure issued by the Institute of Chartered Accountants of India, are given below (where transaction exists):

(I) List of related parties with whom transaction have taken place during the year:

a) Name of the Companies where control exists (either individually or with others)

i. REI Agro Limited

ii. Aspective Vanijya Pvt. Ltd.

iii. Jagadhatri Tracon Pvt. Ltd.

iv. REI Steel & Timber Pvt. Ltd.

v. Snehpusph Barter Pvt. Ltd.

vi. Subhchintak Vancom Pvt. Ltd.

vii. Shree Krishna Gyanodaya Flour Mills Pvt. Ltd.

viii. Dr. ING N.K.Gupta Technical Consultants Pvt. Ltd.

b) Key Management Personnel: -

Mr. Sandip Jhunjhunwala Managing Director

c) Directors Relatives: -

i. Mr. Kailash Chandra Jhunjhunwala

ii. Mrs. Koushalya Devi Jhunjhunwala

iii. Mr.Sanjay Jhunjhunwala

iv. Mrs. Sangita Jhunjhunwala

v. Mrs. Suruchi Jhunjhunwala

8 ) Previous years figures have been regrouped/re-arranged wherever considered necessary.

 
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