Stanley Lifestyles Limited has issued a corrigendum regarding penalties imposed on its wholly-owned subsidiary, Stanley OEM Sofas Limited, by the Regional Director South East Region, Ministry of Corporate Affairs, Hyderabad. The penalties are related to non-compliance with Section 188 and Section 405 of the Companies Act, 2013.
The initial penalty was levied due to the company entering into related party transactions without obtaining the necessary prior approval. The Regional Director has issued an order against Stanley OEM Sofas Limited, imposing monetary penalties on the following officers:
- Mrs. Shubha Sunil (Director) – ₹5,00,000
- Mr. Sunil Suresh (Director) – ₹5,00,000
The total penalty for this contravention amounted to ₹10,00,000. Mr. Ananthakrishnan Viswanath (Ex Director), who served as a Non-Executive Director from December 30, 2015, and ceased from the Board on March 20, 2024, was found not to be involved in the day-to-day management and was unaware of the related party transactions. Consequently, the penalty levied on him was set aside.
The company had engaged in related party transactions without obtaining the prior approval of the Board/Shareholders, thereby contravening Section 188 of the Companies Act, 2013, and the applicable rules. The company stated that there is no material impact on the financial, operational, or other activities due to this order, with the financial impact limited to the penalties imposed on the officers.
In a separate order, the Regional Director also imposed penalties under Section 405 of the Companies Act, 2013, for failure to disclose MSME dues. The penalties were levied on:
- Stanley OEM Sofas Limited (SOSL) - ₹40,000
- Mrs. Shubha Sunil (Director) – ₹40,000
- Mr. Sunil Suresh (Director) – ₹40,000
The total penalty for non-disclosure of MSME dues amounted to ₹1,20,000. The company allegedly failed to disclose the amount payable to MSMEs as of March 31, 2021, along with related details such as accrued interest, in its financial statements for FY 2019-20 and 2020-21. Additionally, the Company is alleged to have furnished incomplete information, attracting potential penalties under Section 405(4) of the Act.
The orders were received on September 4, 2025, but were handed over to the Head Office on September 8, 2025, due to an inadvertent lapse. The company has taken steps to ensure such instances do not recur.
The orders were received on September 4, 2025, but were handed over to the Head Office on September 8, 2025, due to an inadvertent lapse. The company has taken steps to ensure such instances do not recur.
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