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Notes to Accounts of Standard Industries Ltd.

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, (‘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 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, 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.

 
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