Mar 31, 2018
1. General information
The Standard Mills Company Limited was incorporated in India in the year 1892 under the Indian Companies Act, 1882. In line with the diverse nature of its business, it had changed its name from Standard Mills Company Limited to Standard Industries Limited, (the âCompany'') in october 1989. The Company is engaged in the business of trading in Textiles and Chemicals. real Estate division comprises of assets which are in excess of business needs, which the Company would liquidate based on market conditions.
2.1 Impairment losses recognised in the year
There are no impairment losses recognised during the year.
2.2 Assets pledged as security
Buildings with a carrying amount of Rs. 6.87 Lakhs (as at March 31, 2017: Rs.7.09 Lakhs and as at April 1, 2016: Rs.7.30 Lakhs) included in the block of buildings have been pledged to secure borrowings of the Company (see note 20). The Company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
3.1 Fair value of the Companyâs investment properties
The fair value of the Company''s investment properties as at March 31, 2018, March 31, 2017, and april 1, 2016 have been arrived at on the basis of a valuation carried out as on the respective dates by K.C. Gandhi & Co., independent valuers not related to the Company. K.C. Gandhi & Co. are registered with the authority which governs the valuers in India, and they have appropriate qualifications and recent experience in the valuation of properties in the relevant locations. The fair value was derived using the market comparable approach based on recent market prices with few adjustments being made to the market observable data.
The fair value of the Company''s investment properties situated at surat as at March 31, 2018, March 31, 2017, and april 1, 2016 have been arrived at on the basis of a valuation carried out as on the respective dates by sai Consultants, independent valuers not related to the Company. sai Consultants. are registered with the authority which governs the valuers in India, and they have appropriate qualifications and recent experience in the valuation of properties in the relevant locations. The fair value was derived using the market comparable approach based on recent market prices with few adjustments being made to the market observable data.
3.2 Assets pledged as security
Buildings with a carrying amount of Rs.68.71 Lakhs (as at March 31, 2017: Rs.70.85 Lakhs and as at April 1, 2016: Rs.72.99 Lakhs) included in the investment property have been pledged to secure borrowings of the Company (see note 20). The Company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
4.1 The Company has provided loan to its subsidiary, Standard Salt Works Limited. This loan is initially measured at fair value and subsequently at amortised cost. The difference between the market rate of interest and the rate of interest of the loan is the benefit provided by the Company to its subsidiary. This benefit is recognised as deemed investment in the books of the Company.
The cost of inventories recognised as an expense during the year was Rs.984.36 Lakhs (for the year ended March 31, 2017: Rs.686.21 Lakhs).
The cost of inventories recognised as an expense includes Rs.25.68 Lakhs (during 2016-2017: Rs. Nil) in respect of write-downs of inventory to net realisable value.
The mode of valuation of inventories has been stated in note 3.14.
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. as the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
Retained earnings represents the amount that can be distributed by the Company as dividends considering the requirements of the Companies Act, 2013.
On September, 2017, a dividend of Rs.0.75 per share (total dividend Rs.482.47 Lakhs and tax on dividend paid Rs.98.24 Lakhs) was paid to holders of fully paid equity shares. In July 2016, the dividend paid was '' 0.75 per share (total dividend Rs.482.47 Lakhs and tax on dividend paid Rs.98.24 Lakhs).
In respect of the year ended March 31, 2018, The Board of directors of the Company has declared an Interim dividend of Rs.0.75 per equity share of Rs.5/- each for the year ended March 31, 2018.
Further the Board of director has proposed a Final dividend of Rs.0.25 per equity share of Rs.5/- each for the year ended March 31, 2018 which is subject to the shareholders'' approval and declaration at the ensuing Annual General Meeting. Both aggregate to Rs.1.00 for the year ended March 31, 2018 (Previous Year Rs.0.75 per equity share of Rs.5/- each)
4.2 There are no breach of contractual terms of the borrowing during the year ended March 31, 2018, March 31, 2017 and April 1, 2016.
4.3 Reconciliation of liabilities arising from financing activities
The table below details changes in the Company''s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Company''s consolidated of cash flows as cash flows from financing activities.
5 Segment information
5.1 Products and services from which reportable segments derive their revenues Information reported to the chief operating decision maker (CoDM) for the purposes of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided, and in respect of the âreal estate'' and âtrading'' operations. The directors of the Company have chosen to organise the Company around differences in products and services. No operating segments have been aggregated in arriving at the reportable segments of the Company.
specifically, the Company''s reportable segments under lnd as 108 are as follows:
- Real estate
- Trading
The accounting policies of the reportable segments are the same as the Company''s accounting policies described in note 3. Segment profit represents the profit before tax earned by each segment without allocation of unallocated expenses and income. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.
5.2 Information about geographical areas
The Company presently caters to only domestic market i.e. India and hence there is no revenue from external customers outside India nor any of its non-current asset is located outside India.
5.3 Information about major customers
Included in revenue arising from direct sales of trading goods of Rs.668.05 Lakhs (year ended 31 March, 2017: Rs.326.05 Lakhs) which arose from sales to its five (two) major customers which accounts for 66.83 percent (year ended 31 March, 2017: 44.22 percent) of the total revenue from trading operation. The entire revenue of real estate operation is from a single customer. No other single trading customer contributed 10% or more to the Company''s revenue for year ended 31 March, 2018 and year ended 31 March, 2017.
5.4 diluted Earnings Per Share
The diluted earnings per share has been computed by dividing the Net profit after tax available for equity shareholders by the weighted average number of equity shares, after giving the effect of the dilutive potential ordinary shares for the respective periods.
6. Employee benefits
i) defined Contribution Plan
The Company''s contribution to Provident fund and other funds aggregating during the period ended 31 March, 2018 is Rs.16.52 Lakhs (and during the year ended 31 March 2017: 17.47 Lakhs) has been recognised in the statement of profit or loss under the head employee benefits expense.
ii) Defined Benefit Plans:
Gratuity
The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for employees, which requires contribution to be made to a separately administered fund.
The fund is managed by a trust which is governed by the board of trustees. The board of trustees are responsible for the administration of the plan assets and for the definition of the investment strategy.
During the year, the Company has changed the benefit scheme in line with Payment of Gratuity act, 1972 by increasing monetary ceiling from Rs.10 lakhs to Rs.20 lakhs, for those employees who are getting benefit as per Payment of Gratuity act, 1972. Change in liability ( if any) due to this scheme change is recognised as past service cost.
A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is done as guided by rule 103 of Income Tax Rules, 1962.
Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:
(1) Salary Risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. as such, an increase in the salary of the members more than assumed level will increase the plan''s liability.
(2) Interest rate Risk:
A fall in the discount rate which is linked to the G.sec. Rate will increase the present value of the liability requiring higher provision. a fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.
(3) Investment Risk:
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.
(4) Asset Liability Matching Risk:
The plan faces the ALM risk as to the matching cash flow. since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.
(5) Mortality Risk:
since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
Sensitivity Analysis
The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The following table summarizes the impact on the reported defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 1%.
i) The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
ii) Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.
iii) There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
The Company expects to contribute Rs. Nil (as at 31st March, 2017: Rs. Nil and as at 1st April, 2016: Rs. Nil) to the gratuity trust during the next financial year.
7. Leases Operating Lease
i) The Company has entered into operating lease arrangements for commercial premises at various locations. Amount of lease rentals (excluding service tax and GST) in respect of cancellable operating leases recognised in the statement of profit and loss is Rs.97.20 Lakhs ( for the year ended March 31, 2017: 97.20 Lakhs)
8 Financial instruments
8.1 Capital management
The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Company consists of net debt offset by cash and bank balances and total equity of the Company.
8.2 Financial risk management objectives
The Company monitors and manages the financial risks to the operations of the Company. These risks include market risk, credit risk, interest risk and liquidity risk.
A. Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties, as a means of mitigating the risk of financial loss from defaults. The Company uses its own trading records to rate its major customers. The Company''s exposure to financial loss from defaults are continuously monitored.
Trade receivables consist of a large number of customers, spread across various geographical areas. ongoing credit evaluation is performed on the financial condition of accounts receivable.
B. Liquidity risk
Liquidity risk refers to insufficiency of funds to meet the financial obligations. Liquidity Risk Management implies maintenance of sufficient cash to meet obligations when due.
The Company continuously monitoring forecast and actual cash flows, and by assessing the maturity profiles of financial assets and liabilities.
The above table details the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The contractual maturity is based on the earliest date on which the Company may be required to pay.
C. Market risk
The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of currency risk and interest rate risk. In the normal course of business and in accordance with our policies, we manage these risks through a variety of strategies.
i) Currency risk
The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is domiciled in India and has its revenues and other transactions in its functional currency i.e. I NR. Accordingly the Company is not exposed to any currency risk.
ii) Interest rate risk
The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company has borrowed funds with both fixed and floating interest rate.
Notes:
(i) The above claims are pending before various Authorities/court. The Company is confident that the cases will be successfully contested.
(ii) These represent demands raised by Income-tax department on various matters for which disputes are pending before various Appellate authorities. The Company is confident that all these cases can be successfully contested.
(iii) There are no capital commitments
9. The Company has entered into a Memorandum of Understanding dated september 1, 2016 with Feat Properties Private Limited (FPPL) to transfer and assign all its leasehold rights in 62.25 acres of Company''s leasehold property situated at Plot No.4, Trans-Thane Creek Industrial Area in the Villages of Ghansoli and savali, Taluka/Dist - Thane (âPropertyâ) for a consideration of Rs.3,550,000,000 (Rupees Three hundred and fifty five crores only) receivable in installments. This transfer, assignment and consideration is subject to various conditions precedent getting satisfied (including approval of MIDC) and other terms and conditions specified in the aforesaid Memorandum of Understanding. Accordingly, FPPL has paid advance of Rs.6,500 lakhs till March 31, 2018.
10. During the year, in terms of the agreement/understanding entered with a buyer, the Company has assigned all its rights and interest concerning entitlement of Transferable Development Right (TDR) with respect to its land situated at Sewree, which the Company is entitled to in terms of Notification dated 16.11.2016 under the Development Control Regulations of Greater Mumbai 1991. Considering acknowledgement on the part of the buyer and views of expert , the management has concluded that, pending only certain formalities for entitlement and assignment, there is no uncertainty in respect of its entitlement of TDR and passing of significant risks and rewards in respect the same and its consequential assignment in favour of the buyer. Accordingly the Company has recognised assignment of TDR entitlement in the financial statements of the current year and profit arising therefrom, amounting to Rs.3503.13 lakhs, has been disclosed under schedule 26 as âother incomeâ.
11. During the previous year, the unsecured loan of Rs.5370.00 Lakhs (including accrued interest of Rs.1,249.18 lakhs and business advance of Rs.159.45 Lakhs) given to Standard Salt Works Limited (SSWL) has been converted into equity shares. Consequently, the total investment in SSWL as at March 31, 2017 aggregates Rs.5,969.82 lakhs. The net worth of SSWL as at March 31, 2017 post aforesaid conversion has become positive. Further, in view of the long-term strategic nature of the investment in leasehold rights to salt pans and the growth prospects of the subsidiary which is engaged in the manufacture of salt from the significant leased salt pans that it is holding, no provision for diminution in the value of the investment is considered necessary at this stage.
Notes to reconciliation
a) Under previous GAAP long term investments were measured at cost less diminution in value which is other than temporary and current investments were measured at lower of cost or fair value. Under Ind AS, these financial assets have been classified as FVTPL on the date of transition. The fair value changes are recognised in profit or loss. The net effect of these changes is an increase in total equity as at March 31, 2017 of Rs.95.06 Lakhs (Rs. 37.32 Lakhs as at April 1, 2016), increase in total profit for the year ended March 31, 2017 of Rs.57.74 Lakhs.
b) Under Previous GAAP the Company accounted for loan given to subsidiary at transaction value. Under Ind AS, the Company has recognised this loan initially at fair value and subsequently at amortised cost using effective interest rate (EIR).
This has resulted to an impact on equity as on 31st March, 2017 of Rs.506.30 Lakhs and on 1st April, 2016 of Rs.293.97 Lakhs.
c) Under Previous GAAP the Company accounted for long term borrowings at transaction value. Under Ind AS, the Company has recognised these long term borrowings initial at fair value less transaction cost and subsequently measured at amortised cost using effective interest rate (EIR). This has resulted to an impact on equity as on 31st March, 2017 of Rs.7.09 Lakhs and on 1st April, 2016 of Rs.25.89 Lakhs.
d) Under previous GAAP dividends on equity shares recommended by the board of directors after the end of the reporting period but before the financial statements were approved by shareholders were recognised in the financial statements as a liability. Under Ind AS, such dividends are recognised when declared by the members in a general meeting.
The net effect of this change is an increase in total equity as at March 31, 2017 of Rs. Nil (Rs. 580.70 Lakhs as at April 1, 2016). As proposed dividend of F.Y 2015-16 has been paid in F.Y 2016-17 and proposed dividend of F.Y 2016-17 has been pushed to current year and therefore the net impact as at March 31, 2017 is Nil.
Mar 31, 2015
Note 1.
Additional information to the financial statements and disclosure under
Accounting Standards (contd.)
(m) The Company owns a piece of freehold land at sewree, Mumbai
admeasuring 5413.92 sq. mtrs., which was part of the land on which the
Company operated a cotton textile mill in earlier years. under the
development Plan of the brihanmumbai Municipal Corporation (bMC), the
said piece of land was under reservation as a recreation ground (rG)
under the development Control regulations for Greater Mumbai, 1991
(dCr). under the provisions of Maharashtra regional and Town Planning
act, 1966, in lieu of the aforesaid reservation, the Company, at its
discretion would be entitled to either the market value of the land or
to Transferable development rights (Tdr) benefits among other benefits.
as per the notification no. TPb.432001/2174/Cr-227/01/ud-11 dated June
14, 2006, issued by the Government of Maharashtra, it was clarified that
in case of land belonging to cotton textile mills, the development of
the mill land would be governed by dCr rule 58(10). as per the said
rule, development of land, such as the aforesaid, need to be done in
the following manner:
a. 40% of the plot area can be developed by the owner of the plot;
b. 33% of the plot area needs to be earmarked for recreation ground,
for which the floor space Index (fsI) of such earmarked plot area will
be available to the owner, and
c. 27% of the plot area needs to be handed over to the Maharashtra
housing and area development authorities (Mhada) in lieu of Tdr to be
issued to the owner.
Accordingly, the Company has applied for compensatory fsI in accordance
with the aforesaid dCr rule.
subsequently, pending disposal of the Company's application, dCr rule
58(10) was again modified vide notification no.
TPb.4307/214/Cr-41/2007/ud-11 dated May 2, 2009, clarifying that
reserved lands of textile mills need to be handed over to the bMC in
lieu of issue of only Tdr for the entire land to the owners. The
Company, however is pursuing its earlier application with the
authorities, as it had made its application before the modification to
the rule as aforesaid.
The Company, in any case is entitled for a minimum Tdr relating to 27%
of the plot area in both the aforesaid scenarios.
During the earlier year, the Company entered into a Memorandum of
understanding (Mou) dated March 26, 2012 with stan Plaza Limited (sPL),
a wholly owned subsidiary, whereby the Company agreed to transfer the
16825 sq.ft. of Tdr relating to 27% of the plot area, as aforesaid, to
sPL for a consideration of Rs. 403.80 lakhs as per valuation done by
expert valuers. as per the terms of the Mou, the Company, within three
months of the date of the Mou, is required to obtain the development
rights Certificate (drC), the title document for the Tdr, from the
authorities and endorse the same in the name of sPL, failing which the
Mou will stand cancelled. The validity of the said Mou was mutually
extended from time to time, the latest extension was upto June 30,
2014.
However, in-spite of the Company following-up on it's application for
fsI under the dCr regulation, the Company was unable to obtain the drC
from the authorities. due to the continuing uncertainty in the matter,
the Company and sPL decided to terminate the Mou and accordingly, a
deed of cancellation dated March 18, 2014 was executed by the Company
and sPL.
Consequently, during the previous year, the Company has reversed the
sale of Tdr aggregating to Rs. 403.80 lakhs in the statement of Profit and
Loss.
(n) The Company has an investment in a wholly owned subsidiary, namely,
standard salt Works Limited (ssWL) aggregating to Rs. 60.78 lakhs
(Previous year Rs. 60.78 lakhs). The Company has given unsecured loans
aggregating to Rs. 4058.22 lakhs as at the year-end to ssWL. out of which
loan of Rs. 3961.37 lakhs (Previous year Rs. 3961.37 lakhs) is interest
bearing and loan of Rs. 96.85 lakhs (Previous year Rs. 111.25 lakhs) is
interest free. as per the latest available balance sheet of ssWL, as at
March 31, 2015, its net worth has been eroded.
however, in view of the long-term strategic nature of the investment
and the future growth prospects of ssWL, inter alia, considering
substantial increase planned by ssWL in the production of salt from
salt Pans and the expected improvement in economic conditions with
respect to usage thereof, no provision for diminution in the value of
the investment and for the unsecured loans is considered necessary at
this stage.
(a) during the year, pursuant to the notification of schedule II to the
Companies act, 2013 with effect from April 1, 2014, the Company has
revised the estimated useful life of assets to generally align the
useful life with those specified in schedule II. further, pursuant to
the transition provisions prescribed in schedule II to the Companies
act, 2013, the Company has fully depreciated the carrying value of
assets, net of residual value, where the remaining useful life of the
asset was determined to be NIL as on April 1, 2014, and has adjusted an
amount of Rs. 21.32 lakhs against the opening surplus balance in the
statement of Profit and Loss under reserves and surplus.
As a result, the depreciation expense in the statement of Profit and
Loss for the year is higher by Rs. 58.65 lakhs consequent to the change
in the useful life of the assets and loss for the year higher by the
like amount.
(b) "other Current Liabilities" (note 7) includes amount aggregating to
Rs. 14.28 lakhs (Previous year Rs. 14.28 lakhs) relating to the refund of
Income-tax received by the Company for assessment year 2005-06.
however, the Company has preferred appeals against the same which are
pending with the Income-tax authorities. hence, the appropriate
accounting treatment for the aforesaid will be given in the accounts on
disposal of the said appeals.
(c) The figures of the previous year have been regrouped wherever
necessary to correspond with those of current year.
Mar 31, 2014
Note 1:
corporate Information
standard Mills Company Limited was incorporated in the year 1892 under
the Indian Companies act, 1882. In line with the diverse nature of its
business, it had changed its name from standard Mills Company Limited
to sTandard IndusTrIes LIMITed, (''the Company'') in october 1989. The
Company was engaged in the business of manufacturing textiles,
chemicals and garments. With a change in focus, the Company further
diversifed into real estate business. Presently, the Company is in the
business of real estate and Trading in Textiles and Chemicals.
(a) Related Party Disclosure:
(i) names of related parties where control exists:
Name of the related party Relationship standard salt Works Limited
subsidiary stan Plaza Limited subsidiary
Mafatlal enterprises Limited subsidiary
(ii) related parties with whom transactions have taken place:
shanudeep Private Limited enterprise over which key management
personnel and their relatives are able to exercise significant infuence.
Name of the related party Relationship
Mr. Pradeep r. Mafatlal Key Management Personnel
Mrs. divya P. Mafatlal Key Management Personnel
Mr. d. h. Parekh Key Management Personnel
As at As at
March 31, March 31,
2014 2013
Rs. in Lakhs Rs. in Lakhs
Note 25:
Additional information to the financial statements and disclosure
under Accounting Standards
(a) Contingent Liabilities in respect of:
(i) Claims against the Company not acknowledged as debts
1. ESIC claims in respect of
contractor''s workers 19.22 19.22
2. Claims in respect of labour matters
124.37 124.37
The above claims are pending before
various authorities/court. The Company
is confdent that the cases will be
successfully contested.
(ii) uncalled liability on shares
partly paid held as investments in
subsidiary company. 32.74 32.74
(iii) excise duty, etc.
represents demands raised by excise
authorities in the matter of disputes
relating to classifcation of ICL fabrics,
captive consumption of yarn and various
other matters for which appeals are
pending before various appellate authorities.
The Company is confdent that the cases
will be successfully contested. 553.77 553.77
(iv) Guarantees given by bank on behalf
of Company to Government authority . 105.23 105.23
(v) The Government of Maharashtra vide
notifcation No.ELd-2000/ Cr-1022
(ii) NRG-1 dated april 1, 2000 and
No.ELd-2001/ Cr-1069/ NRG-1 dated
april 4, 2001 had sought to charge
electricity duty on the power generated
by Captive Power Plant (CPP). The
Companies having CPP had petitioned the
hon''ble high Court at Mumbai against
the said notifcation contesting the
aforesaid levy of duty. The hon''ble
high Court vide order dated february 23,
2010 quashed and set aside the aforesaid
notifcation. accordingly, the Company
during the year 2009/2010, has written
back the provision for the said duty
provided in earlier years aggregating
to Rs. 1375.74 lakhs.
The Government of Maharashtra has
fled a special Leave Petition (sLP) in
the hon''ble supreme Court of India against
the aforesaid order of the hon''ble high
Court at Mumbai. The Company is confdent
of success in this sLP when heard 1375.74 1375.74
(vi) disputed demands of Income Tax
These represent demands raised by Income-tax
department on various matters for which
disputes are pending before various
appellate authorities. The Company is
confdent that all these cases can be
successfully contested. 154.41 --
(vii) The Company had disputed the claim
for rent,mesne profit and related interest
claimed by the owner of the premises which
were used by the Company in earlier years.
on the application of the Company, the
hon''able high Court of Judicature at bombay
granted a stay against the unfavorable order
of the small Causes Court and directed the
Company to deposit an amount of Rs.1153.26
lakhs pending resolution of the related Writ
Petition fled by the Company, which the
Company has deposited. out of the above the
Company has already provided for amounts
aggregating Rs. 635.39 lakhs and the balance
amount of Rs. 517.87 lakhs has not been
provided as the Company is hopeful of
succeeding in its Petition. 1364.17 1364.17
(m) The Company owns a piece of freehold land at sewree, Mumbai
admeasuring 5413.92 sq. mtrs., which was part of the land on which the
Company operated a cotton textile mill in earlier years. under the
development Plan of the brihanmumbai Municipal Corporation (bMC), the
said piece of land was under reservation as a recreation ground (rG)
under the development Control regulations for Greater Mumbai, 1991
(dCr). under the provisions of Maharashtra regional and Town Planning
act, 1966, in lieu of the aforesaid reservation, the Company, at its
discretion would be entitled to either the market value of the land or
to Transferable development rights (Tdr) benefits among other benefits as
per the notifcation no. TPb.432001/2174/Cr-227/01/ud-11 dated June 14,
2006, issued by the Government of Maharashtra, it was clarifed that in
case of land belonging to cotton textile mills, the development of the
mill land would be governed by dCr rule 58(10). as per the said rule,
development of land, such as the aforesaid, need to be done in the
following manner:
a. 40% of the plot area can be developed by the owner of the plot;
b. 33% of the plot area needs to be earmarked for recreation ground,
for which the floor space Index (fsI) of such earmarked plot area will
be available to the owner, and
c. 27% of the plot area needs to be handed over to the Maharashtra
housing and area development authorities (Mhada) in lieu of Tdr to be
issued to the owner. accordingly, the Company has applied for
compensatory fsI in accordance with the aforesaid dCr rule.
subsequently, pending disposal of the Company''s application, dCr rule
58(10) was again modifed vide notifcation no.
TPb.4307/214/Cr-41/2007/ud-11 dated May 2, 2009, clarifying that
reserved lands of textile mills need to be handed over to the bMC in
lieu of issue of only Tdr for the entire land to the owners. The
Company, however is pursuing its earlier application with the
authorities, as it had made its application before the modification to
the rule as aforesaid.
The Company, in any case is entitled for a minimum Tdr relating to 27%
of the plot area in both the aforesaid scenarios. during the earlier
year, the Company entered into a Memorandum of understanding (Mou)
dated March 26, 2012 with stan Plaza Limited (sPL), a wholly owned
subsidiary, whereby the Company agreed to transfer the 16825 sq. ft. of
Tdr relating to 27% of the plot area, as aforesaid, to sPL for a
consideration of Rs. 403.80 lakhs as per valuation done by expert
valuers. as per the terms of the Mou, the Company, within three months
of the date of the Mou, is required to obtain the development rights
Certifcate (drC), the title document for the Tdr, from the authorities
and endorse the same in the name of sPL, failing which the Mou will
stand cancelled. The validity of the said Mou was mutually extended
from time to time, the latest extension is upto June 30, 2014.
however, in-spite of the Company following-up on it''s application for
fsI under the dCr regulation, the Company was unable to obtain the drC
from the authorities. due to the continuing uncertainty in the matter,
the Company and sPL decided to terminate the Mou and accordingly, a
deed of cancellation dated March 18, 2014 was executed by the Company
and sPL. Consequently, the Company has reversed the sale of Tdr
aggregating to Rs. 403.80 lakhs in the statement of profit and Loss.
(n) The Company has an investment in a wholly owned subsidiary, namely,
standard salt Works Limited (ssWL) aggregating to Rs. 60.78 lakhs
(Previous year Rs. 60.78 lakhs). The Company has given unsecured loans
aggregating to Rs. 4072.62 lakhs as at the year-end to ssWL. out of which
loan of Rs. 3961.37 lakhs (Previous year Rs. 782.50 lakhs) is interest
bearing and loan of Rs. 111.25 lakhs (Previous year Rs. 50.16 lakhs) is
interest free. as per the latest available balance sheet of ssWL, as at
March 31, 2014, its net worth has been eroded. however, in view of the
long-term strategic nature of the investment and the future growth
prospects of the subsidiary, no provision for diminution in the value
of the investment and for the unsecured loans is considered necessary
at this stage.
(o) The Company had received a letter from the Ministry of Company
affairs for getting its cost accounts for the year ended March 31, 2007
relating to its chemical products, audited by a specified cost auditor.
however, since the operations at the Chemical Plant have been closed,
the Company has applied to the said Ministry to withdraw the Cost audit
order for which the reply from the Ministry is awaited.
(q) "other Current Liabilities" (note 7) includes amount aggregating to
Rs. 14.28 lakhs (Previous year Rs. 14.28 lakhs) relating to the refund of
Income-tax received by the Company for various assessment years.
however, the Company has preferred appeals against the same which are
pending with the Income-tax authorities. hence, the appropriate
accounting treatment for the aforesaid will be given in the accounts on
disposal of the said appeals.
(r) The figures of the previous year have been regrouped wherever necessary
to correspond with those of current year.
Mar 31, 2013
Note 1:
corporate Information
standard Mills Company Limited was incorporated in the year 1892 under
the Indian Companies act, 1882. In line with the diversity of its
business, it had changed its name from standard Mills Company Limited
to sTandard IndusTrIes LIMITed, (Âthe Company'') in october 1989. The
Company was engaged in the business of manufacturing textiles,
chemicals and garments. With a change in focus, the Company diversifed
to real estate business. Presently, the Company is in the business of
real estate and Trading in Textiles and Chemicals.
Mar 31, 2012
Note1:
Corporate Information:
Standard Mills Company Limited was incorporated in the year 1892 under
the Indian Companies Act, 1882. In line with the diversity of its
business, it had changed its name from Standard Mills Company Limited
to STANDARD INDUSTRIES LIMITED in October 1989. The Company was engaged
in the business of manufacturing textiles, chemicals and garments. With
a change in focus, the company diversified to Real Estate Business.
Presently, the Company is in the business of Real Estate and Trading in
Textiles and Chemicals.
Notes:
(1) Certain Fixed Assets of the Company i.e. land, buildings, plant and
machinery as on 31.12.1984 have been revalued by external valuers on
the basis of their replacement prices as on 31.12.1985 and related
factors. This had resulted in increase in the net value of the said
assets by Rs. 5187.34 lakhs (Gross Rs. 10985.11 lakhs less accumulated
depreciation Rs. 5797.77 lakhs), which had been transferred to
Revaluation Reserve. During Previous year, the Company had transferred
the leasehold land to property under development. Appropriate
adjustments to the balance in Revaluation Reserve as a result on this
transfer, had been made in the Previous year. [Refer Note 25(t)].
(2) Buildings include Rs. 1147.83 lakhs (Previous year Rs. 482.60 lakhs)
being the original cost of ownership flats. The Company holds 135
Shares (Previous year 125 Shares) of the aggregate face value of Rs.0.07
lakh, (Previous year f 0.06 lakh) in Co-operative Societies under the
bye-laws of Societies. The shares in respect of certain flats are yet
to be received.
Note: Miscellaneous expenses include fees, subscription and general
charges, etc.
(a) Contingent Liabilities in respect of:
(i) Claims against the Company not acknowledged as
debts
1. ESIC claims in respect of contractor's
workers 19.22 68.71
2. Claims in respect of labour matters 12.74 51.50
3. Disputed rent 1,364.17 1,364.17
The above claims are pending before various
authorities/ court. The Company is confident
that the cases will be successfully contested.
(ii) Uncalled liability on Shares partly paid
held as Investments in subsidiary company . 32.74 32.74
(iii) Excise Duty, etc.
Represents demands raised by Excise authorities
in the matter of disputes relating to
classification of ICL fabrics, captive
consumption of yarn and various other matters
for which appeals are pending before various
appellate authorites. the Company is confident
that the cases will be successfully contested 553.77 424.88
(iv)Guarantees given by Bank on behalf of
Company to Government authority 105.23 705.23
(b) The Company has not received any intimation from the suppliers
regarding their status under Micro, Small and Medium Enterprises
Development Act, 2006 and hence the disclosure required under the Act
have been given accordingly in Note 6.
(c) Segment Information:
Information about primary business segments.
The Company's primary business segments are as follows:
(i) Real Estate
(ii) Trading
Notes:
1. Figures shown in bracket pertains to previous year.
2. There are no provisions for doubtful debts or written back during
the year for debts due from or due to related parties.
(d) The Company owns a piece of freehold land at Sewree, Mumbai
admeasuring 5413.92 sq.mtrs., which was part of the land on which the
Company operated a cotton textile mill in earlier years. Under the
Development Plan of the Brihanmumbai Municipal Corporation (BMC), the
said piece of land was under reservation as a recreation ground (RG)
under the Development Control Regulations for Greater Mumbai, 1991
(DCR). Under the provisions of Maharashtra Regional and Town Planning
Act, 1966, in lieu of the aforesaid reservation, the Company, at its
discretion would be entitled to either the market value of the land or
to Transferable Development Rights (TDR) benefits among other benefits.
As per the Notification No. TPB.432001 /2174/CR-227/01/UD-11 dated 14th
June, 2006, issued by the Government of Maharashtra, it was clarified
that in case of land belonging to cotton textile mills, the development
of the mill land would be governed by DCR Rule 58(10). As per the said
Rule, development of land, such as the aforesaid, need to be done in
the following manner:
a. 40% of the plot area can be developed by the Owner of the plot;
b. 33% of the plot area needs to be earmarked for recreation ground,
for which the Floor Space Index (FSI) of such earmarked plot area will
be available to the Owner, and
c. 27% of the plot area needs to be handed over to the Maharashtra
Housing and Area Development Authorities (MHADA) in lieu of TDR to be
issued to the Owner.
Accordingly, the Company has applied for compensatory FSI in accordance
with the aforesaid DCR Rule.
Subsequently, pending disposal of the Company's application, DCR Rule
58(10) was again modified vide Notification No.
TPB.4307/214/CR-41/2007/UD-11 dated 2nd May, 2009, clarifying that
reserved lands of textile mills need to be handed over to the BMC in
lieu of issue of only TDR for the entire land to the owners. The
Company, however is pursuing its earlier application with the
authorities, as it had made its application before the modification to
the Rule as aforesaid.
The Company, in any case is entitled for a minimum TDR relating to 27%
of the plot area in both the aforesaid scenarios.
During the year, the Company entered into a Memorandum of Understanding
(MOU) dated 26th March, 2012 with Stan Plaza Limited (SPL), a wholly
owned subsidiary, whereby the Company agreed to transfer the 16825
Sq.ft. of TDR relating to 27% of the plot area, as aforesaid, to SPL
for a consideration of Rs. 403.80 lakhs as per Valuation done by expert
Valuers. As per the terms of the MOU, the Company, within three months
of the date of the MOU, is required to obtain the Development Rights
Certificate (DRC), the title document for the TDR, from the authorities
and endorse the same in the name of SPL, failing which the MOU will
stand cancelled.
Accordingly, the Company, during the year, has accounted for the said
consideration by credit to the Profit and Loss Account, which is
disclosed in Note 20 (II) - 'Other Operating Income'.
(e) The Company has an investment in a wholly owned subsidiary, namely,
Standard Salt Works Limited (SSWL) aggregating to Rs. 60.78 lakhs
(Previous year Rs. 60.78 lakhs). The Company has given unsecured loans
aggregating to Rs. 953.48 lakhs as at the year-end to SSWL. Out of which
loan of Rs. 782.50 lakhs (Previous year Rs. 782.50 lakhs) is interest
bearing and loan of Rs. 170.98 lakhs (Previous Year Rs. 197.02 lakhs) is
interest free. As per the latest available balance sheet of SSWL, as at
31st March, 2012, its net worth has been eroded. However, in view of
the long-term strategic nature of the investment and the future growth
prospects of the subsidiary, no provision for diminution in the value
of the investment and for the unsecured loans is considered necessary
at this stage.
(f) The Company had received a letter from the Ministry of Company
Affairs for getting its cost accounts for the year ended 31st March,
2007 relating to its chemical products, audited by a specified cost
auditor. However, since the operations at the Chemical Plant have been
closed, the Company has applied to the said Ministry to withdraw the
Cost Audit Order for which the reply from the Ministry is awaited.
(g) The Company had entered into a Lease Agreement dated 1 st April,
1967 with Maharashtra Industrial Development Corporation (MIDC) for a
term of 100 years, calculated from 1st August, 1965, in respect of land
admeasuring 92.25 acres located at Plot No.4, in Trans-Thane Creek
Industrial Area in the villages of Ghansoli and Savali, Taluke Thane,
District Thane.
Out of the above, the Company, in an earlier year, has transferred and
assigned all its rights, title and interest in respect of land
admeasuring 30 acres to a party for consideration.
The Company had decided to develop the balance land admeasuring 62.25
acres commercially for which the Company was examining various
proposals for development. Consequently, the amount representing the
net asset value (cost less accumulated amortization) of the said 62.25
acres aggregating to Rs. 2209.68 lakhs, being the lower of cost and fair
value (as per valuation report), had been transferred from fixed assets
to Property under Development in the previous year in-line with the
aforesaid new focus in the business of the Company. The balance amount
in the Revaluation Reserve pertaining to the aforesaid land had been
accordingly adjusted in the previous year.
During the year, the Company has entered into a Term Sheet with a party
for development of the aforesaid balance Leasehold land on the
following terms and conditions:
The Company will receive:
(i) aggregate sum of Rs. 13000 lakhs spread over a period of five years;
and
(ii) 20% constructed IT space/area in the development.
The Company is in the process of entering into a Definitive Agreement
for development of the aforesaid land and has received an advance of Rs.
1100 lakhs on this account.
(g) "Other Current Liabilities" (Note 7) include Rs.14.28 lakhs and Rs.
38.70 lakhs relating to the refund of income-tax for Assessment Year
2005-06 and 2009-10 respectively received by the Company. However, the
Company has preferred appeals against the same which are pending with
the Income-tax Authorities. Hence, the appropriate accounting treatment
for the aforesaid will be given in the accounts on disposal of the said
appeals.
(h) The figures of the previous year have been regrouped wherever
necessary to correspond with those of current year in-line with the
Revised Schedule VI.
Mar 31, 2011
A1. Depreciation:
(i) Depreciation is provided on Straight Line basis at the rates and in
the manner specified in Schedule XIV to the Companies Act, 1956.
(ii) The difference of Rs. 5.58 Lakhs (Previous year Rs. 5.47 lakhs)
between depreciation provided for the year on revalued cost of assets
and that calculated on original cost/written down value of assets
(revalued) for the year has been withdrawn from Revaluation Reserve
Account and credited to Profit and Loss Account.
Previous year
from 1.4.2009
to 31.3.2010
Rs. Rs.
in lakhs in lakhs
A2. Contingent Liabilities in
respect of:
1. Claims against the Company not
acknowledged as debts
a. ESIC Claims in respect of
Contractors workers 68.11 68.11
b. Claims in respect of Labour matters 51.50 36.37
c. Arrears of Water charges à 45.06
d. Disputed Rent 1364.17 1364.17
The above claims are pending before
various authorities/ court. The Company
is confident that the cases will be
successfully contested.
2. uncalled Liability on shares
partly paid held as Investments 32.74 32.74
3. Excise Duty:
Represents demands raised by Excise
authorities in the matter of disputes
relating to classification of ICL
fabrics, captive consumption of yarn and
various other matters for which appeals
are pending before various appellate
authorites. The Company is confident
that the cases will be successfully
contested 424.88 347.25
4. Guarantees given by Bank on behalf
of Company 105.23 105.23
5. The Government of Maharashtra vide
Notification No. ELD-2000/CR-1022(H)
NRG-1 dated 1st April, 2000 and No.
ELD-2001/CR-1069/NRG-1 dated 4th April,
2001 had sought to charge electricity
duty on the power generated by Captive
Power Plant (CPP). The Companies having
CPP had petitioned the Honble High
Court at Mumbai against the said
Notification contesting the aforesaid
levy of duty. During the previous year,
the Honble High Court vide Order dated
23.02.2010 quashed and set aside the
aforesaid Notification. Accordingly,
the Company has written back the
provision for the said duty provided
in earlier years aggregating to
Rs. 1375.74 lakhs. The Government of
Maharashtra has filed a Special Leave
Petition (SLP) in the Honble Supreme
Court of India against the aforesaid
Order of the Honble High Court
at Mumbai. The Company
is confident of success in this SLP
when heard 1375.74 1375.74
B7. The Company has not received any intimation from the suppliers
regarding their status under Micro, Small and Medium Enterprises
Development Act, 2006 and hence the disclosure required under the Act
have been given accordingly in Schedule 10.
B9. RELATED PARTY DISCLOSURE:
(a) Names of related parties where control exists:
Name of the related party Relationship
Standard Salt Works Limited Subsidiary
Stan Plaza Limited Subsidiary
Mafatlal Enterprises Limited Subsidiary
(b) Related parties with whom transactions have taken place:
Name of the related party Relationship
Shanudeep Private Limited Enterprise over which key
management personnel and
their relatives are able to
exercise significant
influence
Mr. Pradeep R. Mafatlal Key Management Personnel
Mrs. Divya R Mafatlal Key Management Personnel
Mr. K. J. Pardiwalla Key Management Personnel
NOTES:
1. Figures shown in bracket pertains to previous year.
2. There are no provisions for doubtful debts or written back during
the year for debts due from or due to related parties.
B14. The Company has received an amount aggregating to Nil (Previous
year Rs. 18.67 lakhs) on account of sale of Transferable Development
Rights (TDR) on Nil (Previous year 119.63 sq. metres) out of total
1659.63 sq. metres of land, generated consequent to surrender of land
at Sewree, Mumbai to Maharashtra Housing and Area Development Authority
(MHADA) as per various Agreements/MOUs which has been disclosed in
Schedule 12 - "Other Income".
B15. The Company has an investment in a wholly owned subsidiary,
namely, Standard Salt Works Limited (SSWL) aggregating to Rs. 60.78
lakhs (Previous year Rs. 60.78 lakhs). During the year, the Company
gave amounts aggregating to Rs. 782.50 lakhs as unsecured loan. The
balance outstanding of such loan, which is interest bearing and
business advances given to SSWL over a period of time, which are
converted to interest free unsecured loans during the year, aggregate
to Rs. 979.52 lakhs as at the year-end. As per the latest available
balance sheet of SSWL, as at 31st March, 2011, its net worth has been
eroded. However, in view of the long-term strategic nature of the
investment and the future growth prospects of the subsidiary, no
provision for diminution in the value of the investment and for the
unsecured loans is considered necessary at this stage.
B16. The Company has received a letter from the Ministry of Company
Affairs for getting its cost accounts for the year ended 31st March,
2007 relating to its chemical products, audited by a specified cost
auditor. However, since the operations at the Chemical Plant have been
closed, the Company has applied to the said Ministry to withdraw the
Cost Audit Order for which the reply from the Ministry is awaited.
B17. The Company had entered into a Lease Agreement dated 1 st April,
1967 with Maharashtra Industrial Development Corporation (MIDC) for a
term of 100 years, calculated from 1st August, 1965, in respect of land
admeasuring 92.25 acres located at Plot No. 4, in Trans-Thane Creek
Industrial Area in the villages of Ghansoli and Savali, Taluke Thane,
District Thane.
Out of the above, the Company, in an earlier year, has transferred and
assigned all its rights, title and interest in respect of land
admeasuring 30 acres to a party for consideration.
The Company has decided to develop the balance land admeasuring 62.25
acres commercially for which various proposals for development are
under consideration. Consequently, the amount representing the net
asset value (cost less accumulated amortization) of the said 62.25
acres aggregating to Rs. 2209.68 lakhs, being the lower of cost and
fair value (as per valuation report), has been transferred from fixed
assets to Property under Development (Stock-in-Trade) in-line with the
aforesaid new focus in the business of the Company. The balance amount
in the Revaluation Reserve pertaining to the aforesaid land has been
accordingly adjusted.
B19. The figures of previous year have been regrouped wherever
necessary to correspond with those of current year.
Mar 31, 2010
B1. RELATED PARTY DISCLOSURE:
(a) Names of related parties where control exists:
Name of the related party Relationship
Standard Salt Works Limited Subsidiary
Stan Plaza Limited Subsidiary
Mafatlal Enterprises Limited Subsidiary
(b) Related parties with whom transactions have taken place:
Name of the related party Relationship
Shanudeep Private Limited
Enterprise over which key
Shailaja Enterprises Pvt. Ltd.
Management personnel and their Sandeep Chemicals Private Limited
relatives are able to exercise significant influence
Anudeep Enterprises Pvt. Ltd.
Mr. Pradeep R. Mafatlal Key Management Personnel
Mrs. Divya R Mafatlal Key Management Personnel
Mr. K. J. Pardiwalla Key Management Personnel
B2. Consequent to the Memorandum of Settlement (MOS) dated 18th
October, 2006 entered into between the Company and its employees of the
Chemical Plant situated at Navi Mumbai and the Scheme announced by the
Company for employees at the Head Office, the Company agreed to pay
amounts aggregating to Rs. 3673.00 lakhs to the said employees in the
nature of Voluntary Retirement under the said MOS/Scheme over an agreed
period, which were considered as Termination Benefits in accordance
with Accounting Standard 15 on Employee Benefits. During the previous
period, the Company, having regard to the change in its business focus
decided to write-off the balance unamortized amount of such payments
aggregating to Rs. 2295.63 lakhs as at 30th September, 2007 and similar
payments made during the previous period Rs. 5.67 lakhs both
aggregating to Rs. 2301.30 lakhs to the Profit and Loss Account.
B3. The Company has executed Deed of Assignment dated 24th April, 2008
with a party in respect of 30 acres of leasehold land on which its
Chemical Plant was situated, within the larger property admeasuring
92.25 acres and has received Consideration of Rs. 23000.00 lakhs for
the same during the previous period. Accordingly, the Company had
accounted for profit on such assignment of Rs. 18999.72 lakhs net of
related expenses in the said previous period.
B4. The Company and its wholly owned subsidiary, Stan Plaza Limited
had entered into an Agreement for Sale dated 26th September, 2007 by
which the Company had agreed to sell the Building known as "Stanrose
Apartment" for a lumpsum consideration of Rs. 6852.00 lakhs.
Subsequently, the Company and Stan Plaza Limited have decided to cancel
the said Agreement vide Deed of Cancellation dated 25th February, 2008.
Accordingly, an amount of Rs. 6775.14 lakhs, being gain (profit)
accounted in earlier period, had been reversed during the previous
period.
B5. The Company has received an amount aggregating to Rs. 18.67 lakhs
(Previous period 309.68 lakhs) on account of sale of Transferable
Development Rights (TDR) on 119.63 Sq. meters (Previous period 1540 sq.
metres) out of total 1659.63 sq. metres of land, generated consequent
to surrender of land at Sewree, Mumbai to Maharashtra Housing and Area
Development Authority (MHADA) as per various Agreements/MOUs. which has
been disclosed in Schedule 11 - "Other Income".
B6. The Company has an investment in a wholly owned subsidiary,
namely, Standard Salt Works Limited aggregating to Rs. 60.78 lakhs
(Previous period Rs. 60.78 lakhs) and has also given advances to the
said subsidiary aggregating to Rs. 156.70 lakhs (Previous period Rs.
121.64 lakhs). As per the latest available balance sheet of the
subsidiary, as at 31st March, 2010, its net worth has been eroded.
However, in view of the long-term strategic nature of the investment
and the future growth prospects of the subsidiary, no provision for
diminution in the value of the investment and for the advances is
considered necessary at this stage.
B7. The Company has received a letter from the Ministry of Company
Affairs for getting its cost accounts for the year ended 31st March,
2007 relating to its chemical products, audited by a specified cost
auditor. However, since the operations at the Chemical Plant have been
closed, the Company has written to the said Ministry to withdraw the
Cost Audit Order for which the reply from the Ministry is awaited.
B8. Figures of the current financial year in the Profit and Loss
Account are for a period of twelve months whereas, the corresponding
figures of the previous period are for a period of eighteen months and
hence are not strictly comparable.
B9. The figures of previous period have been regrouped wherever
necessary to correspond with those of current year.