2009-2010
Rupees Rupees in
in crores Crores
(1) Contingent liabilities not provided for
(a) Income-tax matters in respect of earlier
years under dispute (including interest of
Rs. 5.86 crores) [31.03.2010. Rs.5.77
crores] as follows: 41.18 37.10
(i) Decided in Company''s favour by appellate
authorities and department in further appeal 5.11 5.11
(ii) Pending in appeal - matters decided
against the Company 36.07 31.99
(b) Sales Tax, Service Tax and Excise Duties 14.12 1.47
(c) Customs duty 0.25 0.37
(d) Other claims against the Company not
acknowledged as debts (with interest thereon) . 6.99 4.38
In respect of items (a) to (d) above, future cash outfl ows in respect
of contingent liabilities are determinable only on receipt of judgments
pending at various forums/authorities.
(e) Counter indemnity for an amount of Rs. 96.22 crores (31.3.2010
Rs.81.45 crores) issued in favour of banks which in turn have
guaranteed loans granted by other banks abroad to PT Five Star Textile,
Indonesia, (PTFS), a joint venture company as under:- (i) Rs. 84.16
crores (31.3.2010 Rs. 71.05 crores) in favour of IDBI Bank Limited
against guarantees issued to Punjab National Bank International London
for loans granted to PTFS.
(ii) Rs. 12.06 crores (31.3.2010 Rs. Nil) in favour of IDBI Bank
Limited against guarantees issued to Punjab National Bank International
London for loans granted to PTFS.
(iii) Rs. Nil (31.3.2010 Rs. 10.40 crores) in favour of State Bank of
India, against guarantees issued to State Bank of India, Indonesia for
loans granted to PTFS.
Item No. (i) secured by fi rst Mortgage/charge over part of the land of
the Company at Spring Mills at Mumbai admeasuring 46,442.13 square
metres and buildings and structures thereon.
Item No. (ii) is secured by fixed deposit of Rs. 12.51 crores
earmarked in favour of IDBI Bank Limited.
As confi rmed by PTFS, the Company has a pari passu charge on PTFS''s
assets, which would cover the aforesaid indemnity amount.
(f) Bills discounting 41.44 25.89
(g) In accordance with the EPCG Scheme, the company had during 2006-07
and 2007-08 imported capital goods duty free, subject to condition that
the Company will fulfi ll, in future, a specifi ed amount of export
obligation within eight years. Amount of duty saved on import of the
above goods aggregate Rs 29.78 crores (31.03.2010 Rs. 29.78 crores)
against which export obligation of Rs 238.26 crores (31.03.2010 Rs.
238.26 crores) needs to be fulfi lled. The company has made an
application to the Government for modification of the export
obligation. If the Company fails to meet the required export
obligation, the company will be required to pay the import duty saved
together with interest thereon.
(h) Export obligation under Advance Licence Scheme Rs. 2.81 crores
(31.03.2010 Rs. 2.81 crores) and duty saved thereon Rs. 0.71 crore
(31.03.2010 Rs. 0.71 crore).
(2) Capital Commitments
Estimated amount of contracts to be executed on capital account and not
provided for as at 31st March, 2011 Rs 7.72 crores (31.3.2010 Rs.6.05
crores)
(3) Share Capital
Under orders from the Special Court (Trial of Offences relating to
Transactions in Securities) Act, 1992, - the allotment against 928
(2009- 10- 928) warrants carrying rights of conversion into equity
shares of the Company has been kept in abeyance in accordance with
section 206A of the Companies Act, 1956, till such time as the title of
the bonafi de owner is certifi ed by the concerned Stock Exchanges.
(4) The Shareholders of the company had approved on 24th March 2010
through postal ballot issue of 39,57,000 Warrants with an option to
subscribe equivalent number of shares of Rs.10 each comprising
19,30,000 Warrants to be exercised on or before 31st March, 2011 and
further 20,27,000 Warrants to be exercised on or after 1st April, 2011
but not later than 18 months from the date of issue of the Warrants to
Promoter(s)/Promoter Group in accordance with the applicable SEBI
Regulations. Perman Project Supports Ltd. (PPSL), a company in the
Promoter Group had on 19th July, 2010 accepted the above offer and paid
an amount of Rs. 52.22 crores, representing 25% of the issue price of
Rs. 527.83 per share fixed in accordance with the pricing of equity
shares given in SEBI Regulations. PPSL exercised option of conversion
of 19,30,000 warrants into equity shares on 28th March, 2011 and paid
the subscription money of Rs. 76.40 crores towards the balance amount
payable after adjusting the initial payment of 25% of the issue price.
The Company has on 29th March, 2011 allotted to PPSL 19,30,000 equity
shares of Rs. 10/- each at a premium of Rs. 517.83 per share.
(5) Borrowing costs capitalised during the year as incidental
expenditure relating to construction/development is Rs.1.04 crores
(2009-2010 Rs.5.25 crores).
(6) During the year 2000-2001, pursuant to the scheme of amalgamation
between Scal Investments Limited (SIL) and the Company, sanctioned by
the jurisdictional court on 20th April, 2001, the assets, liabilities
and reserves of SIL had been transferred to and vested in the Company
with effect from 1st October, 2000. The Company is taking necessary
steps for securing transfer of some of the assets and liabilities in
the name of the Company.
(7) The Company has during the year ended 31st March, 2011 converted a
part of the freehold land under real estate development from fixed
assets to stock in trade at market value and the difference between the
market value and cost amounting to Rs. 853.96 crores (2009-2010
Rs.50.76 crores) has been credited to Revaluation Reserve. Further,
pursuant to an Agreement for sale, the Company has sold a part of the
proposed residential tower being constructed on such land and in
accordance with the accounting policy consistently followed by the
Company, recognised the revenue arising on sale of the undivided
interest in underlying freehold land amounting to Rs. 70.57 Crores
(2009-10 Rs. 256.29 Crores) in the Profit & Loss Account, with a
corresponding release from revaluation reserve.
(8) Debtors and creditors balances are subject to confi rmation and
consequent reconciliation, if any.
(9) Advances recoverable in cash or in kind or for value to be received
(a) Advances recoverable in cash or in kind or value to be received
includes an amount of Rs. 0.02 crores recoverable from Mr.Ness Wadia
towards excess remuneration paid for the year 2010-11, since recovered.
(b) Advances recoverable in cash or in kind or for value to be received
include Rs. 0.71 crore on account of remuneration recoverable from Mr.
M.K.Singh, Executive Director, whose services were terminated on 6th
July, 2008 consequent to detection of irregular conduct. A suit has
been fi led by the company in the High Court of Judicature of Mumbai
alleging fraudulent misconduct. The matter is pending before the Court.
(10) Deposit with a joint venture company
Deposit of Rs.15.22 crores (2009-2010 Rs.15.22 crores) with a joint
venture company is a shareholders'' deposit with PT. Five Star Textile
Indonesia (PTFS). This deposit, originally denominated in U.S. $, was
w.e.f. 1st April 2003 converted to Indian rupees, as approved by the
Board of Directors of the Company and by the Board of Commissioner''s of
PTFS. This deposit was earlier repayable by PTFS after it cleared, in
full, the term loan availed by it from a consortium of Indian
nationalised banks, which was to be effected in installments spread out
between 1996 and 2010. During the year 2000-2001, PTFS has prepaid the
aforesaid term loan by raising funds through other borrowings subject
to annual review and the aforesaid deposit is now repayable by PTFS
after these borrowings are eventually repaid or by the year 2015 (RBI
has extended the tenure by 5 years from 2010), whichever is earlier.
(11) Current Liabilities
There are no amounts due to the suppliers covered under Micro, Small
and Medium Enterprises Development Act, 2006; this information takes
into account only those suppliers who have responded to the enquiries
made by the Company for this purpose.
(12) Foreign Currency Transactions
(i) Exchange differences charged to the Profit and loss account
includes loss on cancellation of forward exchange contracts Rs. 3.84
crores (net) {2009-2010 Rs. 13.02 crores].
(ii) The year-end foreign currency exposures that have not been hedged
by a derivative instrument or otherwise are given below:
(a) Amounts receivable in foreign currency – USD 2,649,836, EURO
205,112, GBP 97,688 (2009-10 USD 2,340,157, EURO 340,093, GBP 114,108)
(b) Amounts payable in foreign currency – USD 48,008, EURO 11,058, GBP
1,965 (2009-10 USD 33,255, EURO 9137, CHF 2091)
(iii) The Company has adopted the principles of hedge accounting as set
out in Accounting Standard 30, ''Financial Instruments: Recognition and
Measurement'', issued by The Institute of Chartered Accountants of
India. Accordingly, the foreign exchange (gain)/ loss of Rs. (0.01)
crores (2009-10 Rs. 5.48 crores) as on 31st March, 2011 on forward
foreign exchange contracts entered into to hedge fi rm commitments and
highly probable forecast transactions, which qualify for hedge
accounting, has been accounted under Hedging Reserve to be ultimately
recognised in the Profit and loss account when the forecasted
transactions arise.
(iv) Figures in brackets are the corresponding fi gures in respect of
the previous year.
(iii) The lease agreements are for a period of four years for vehicles
and for a period of one to nine years for retail shops including
further periods for which the Company has the option to continue the
lease of retail shop with the condition of increase in rent.
(13) Related party disclosures
(a) Names of related parties and nature of relationship:
Subsidiary Company: BDS Urban Infrastructure Private Limited (From 23rd
July, 2010 to 11th March, 2011)
Bombay Dyeing Real Estate Company Limited (erstwhile White Horse Real
Estate Private Limited) up to 16th March, 2010 Associate Companies:
Archway Investment Company Limited
Pentafil Textile Dealers Limited
Scal Services Limited
Bombay Dyeing Real Estate Company Limited (erstwhile White Horse Real
Estate Private Limited) w.e.f. 17th March, 2010 Joint Venture Companies
: PT. Five Star Textile Indonesia Proline India Limited
L&T Bombay Developers Private Limited (Upto 29th July, 2010) Key
Management Personnel: Mr. Ness N. Wadia - Joint Managing Director
Mr. Durgesh Mehta (Joint Managing Director & CFO) w.e.f. 1st April,
2010
Mr. P.V. Kuppuswamy - Joint Managing Director (Upto 31st March, 2010).
Entity over which Key Management Personnel exercise significant infl
uence: KPH Dream Cricket Private Limited
(14) Previous year''s figures have been regrouped where necessary.
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