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Notes to Accounts of Omnitex Industries (India) Ltd.

Mar 31, 2015

Note : 1

2014-15 2013-14

A. Contingent Liabilities not provided for in respect of:

Liability in respect of a award of the Labour Court which has been 192,000 192,000 deposited in court pending disposal of the case

B. Corporate guarantees given by the Company to ICICI Bank Ltd., for NIL 210,000,000 securing credit facilities given by the said bank to the Joint Venture Company namely Strata Geosystems (India) Private Limited.

C. The Joint Commissioner, Central Excise & Customs, Daman NIL 1,754,486 vide order dated 10th (interest not January, 2008 ordered the quantifiable) Company to pay a demand of Rs. 8,77,243/- on account of cenvat credit availed on certain fixed assets which were disposed off during 2005-06. The Joint Commissioner has also ordered the Company to pay interest thereon. The Joint Commissioner has also levied penalty of Rs. 8,77,243/- on the Company. The Company had disputed the above and an appeal was filed against the above order, which has been disposed off in favour of the Company during 2008-09. The Department went in appeal against the above after the time-limit and the appeal was admitted in the past. The honourable acting Chief Justice Mr. Vijay Manohar Sahai and Honourable Mr. Justice R.P Dholaria of the High Court of Gujarat, vide order dated 12th January 2015, have dismissed the appeal (preferred by the department) for want of territorial jurisdiction.

Note : 2

The Joint Venture Company, viz. Strata Geosystems (India) Private Limited has secured in the past credit facilities with ICICI Bank Limited to the tune of Rs. 21 Crores. The Company had then issued corporate guarantees of Rs. 21.00 Crores during 2011-12 to ICICI Bank Ltd to secure the above credit facilities sanctioned to the Joint Venture Company referred above . The said guarantees are within the limit of Rs. 50 Crores approved by the shareholders of the Company under section 180(1)(C) of the Companies Act, 2013 on September 11, 2014. The above guarantees were also secured by deposit of title deeds of Unit No 317 & 319 at Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai.

During 2014-15, post payment of entire outstanding, by Strata Geosystems (India) Private Limited, to ICICI Bank Limited, ICICI Bank limited has released the Corporate Guarantee vide their letter dated 23rd January 2015. Further ICICI Bank Limited has also released charge on Unit No 317 & 319 of Tantia Jogani Industrial Premises, J R Boricha Marg, Lower Parel, Mumbai. Company has since filed the necessary forms with Registrar of Companies and obtained satisfaction of Charge.

Note : 3

Apart from the limited trading activities, the management has also leased out part of the Mumbai office premises at Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai - 11.

Note : 4

Related Party Transactions

a. List of Related Parties and Nature of Relationship

List of related parties Related Entity Nature of Relationship

Mr. Amit R Dalmia Creative Global Chairman Services Pvt. Ltd., Director

Viaton Energy Pvt. Ltd., Director

Viaton Infrastructures Pvt. Ltd., Director

Encompass Design India Director Pvt Ltd., and Member

Talenttube Entertainment Pvt. Ltd., Director

21 Trends India Pvt. Ltd., Member

Mr. Narendra Kumar Dalmia Strata Geosystems (India) Director Managing Director Pvt Ltd., and Member

Saanwaria Polyesters Director Pvt Ltd.., and Member

Mr. Ashok M Bhawnani Strata Geosystems (India) Director Director Pvt Ltd and Member

Sun-N-Sand Hotels Pvt. Ltd., Director

Ms. Geeta Pardiwalla Nicetrends Jewels Director Director Pvt. Ltd.,

Mr. Durgaprasad S Sabnis Lex Firmus Proprietor Director Unisource Legal Associates Partner

Mr. J Ramakrishnan Director Strata Geosystems GM Finance (India) Pvt. Ltd. & Taxation

Strata Geosystems (India) Strata Geosystems Joint Pvt. Ltd. (India) Pvt. Ltd. Venture Company

Note : 5

Segment Reporting:

The operation of the Company represents only one business segment, viz. 'Trading in Textiles'. Accordingly, all earnings, assets and liabilities relate to this activity only and there is no separate Segment.

Note : 6

The Company has a 29.50% equity interest in a Jointly Controlled Entity- M/s. Strata Geosystems (India) Private Limited. ("Strata"). The Company has made an investment into Strata's Equity Capital and will from time to time commit other resources, as may be necessary, based on Strata's business plan.

In accordance with the requirements of Accounting Standard on Financial Reporting of Interest in Joint Ventures (AS-27) notified by the Companies (Accounts) Rules, 2014, the interest in the jointly controlled entity has been accounted for as an Investment in accordance with Accounting Standard (AS) 13, Accounting for Investments and has been reflected under investments - Note 1.7 to the Balance Sheet.

In compliance with Accounting Standard 27 - 'Financial Reporting of Interests in Joint Venture' - AS(27), notified by the Companies ( Accounts ) Rules, 2014 the Company has interest in the following jointly controlled entity.


Mar 31, 2014

NOTE 1.1: CONTINGENT LIABILITIES AND COMMITMENTS (Refer Note 3.2)

Contingent liabilities and commitments As At As At (to the extent not provided for) 31st March 2014 31st March 2013

(a) Contingent Liabilities (refer note 3.2)

(i) Claims against the company not acknowledged as debt - -

(ii) Guarantees 210,000,000 210,000,000

(iii) Other money for which the company is contingently liable 1,946,486 1,946,486

211,946,486 211,946,486

(b) Commitments - -

Total 211,946,486 211,946,486

1. A. Contingent Liabilities not provided for in respect of:

Liability in respect of a award of the Labour Court which has been 192,000 192,000 deposited in court pending disposal of the case

B. Corporate guarantees given by the Company to ICICI Bank Ltd., for 210,000,000 210,000,000 securing credit facilities given by the said bank to the Joint Venture

Company namely Strata Geosystems (India) Private Limited. ( Refer Note 2 below )

C. The Joint Commissioner, Central Excise & Customs, Daman 1,754,486 1,754,486 vide order dated 10th January, 2008 ordered the Company to pay (interest not (interest not a demand of Rs. 8,77,243/- on account of cenvat credit availed on quantifable) quantifable) certain fixed assets which were disposed off during 2005-06.

The Joint Commissioner has also ordered the Company to pay interest thereon. The Joint Commissioner has also levied penalty of Rs. 8,77,243/- on the Company. The Company had disputed the above and an appeal was fled against the above order, which has been disposed off in favour of the Company during 2008-09. The Department went in appeal against the above after the time-limit and the appeal has now been admitted

2. The Joint Venture Company, viz. Strata Geosystems (India) Private Limited has secured credit facilities with ICICI Bank Limited to the tune of Rs. 21 Crores. The Company has issued corporate guarantees of Rs. 21.00 Crores during 2011-12 to ICICI Bank Ltd to secure the above credit facilities sanctioned to the Joint Venture Company referred above . The said guarantees are within the limit of Rs. 25 Crores approved by the shareholders of the Company under section 372-A of the Companies Act, 1956 vide postal ballot notice dated May 26, 2008. The above guarantees are secured by deposit of title deeds of Unit No 317 & 319 at Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai.

The above facilities are also secured by the personal guarantee of one of the erstwhile Directors of the Company.

3. Apart from the limited trading activities, the management has also leased out part of the Mumbai office premises at Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai – 11.

4. Segment Reporting:

The operation of the Company represents only one business segment, viz. ''Trading in Fabrics''. Accordingly, all earnings, assets and liabilities relate to this activity only and there is no separate Segment.

5. The Company has a 29.50% equity interest in a Jointly Controlled Entity- M/s. Strata Geosystems (India) Private Limited. ("Strata"). The Company has made an investment into Strata''s Equity Capital and will from time to time commit other resources, as may be necessary, based on Strata''s business plan.

In accordance with the requirements of Accounting Standard on Financial Reporting of Interest in Joint Ventures (AS-27) notifed by the Companies (Accounting Standards) Rules, 2006, the interest in the jointly controlled entity has been accounted for as an Investment in accordance with Accounting Standard (AS) 13, Accounting for Investments and has been refected under investments – Note 1.7 to the Balance Sheet.

In compliance with Accounting Standard 27 – ''Financial Reporting of Interests in Joint Venture'' – AS(27), notifed by the Companies ( Accounting Standards ) Rules, 2006 the Company has interest in the following jointly controlled entity.

6. The figures of the previous year have been regrouped / reclassified, wherever necessary, to conform to the current year''s presentation.


Mar 31, 2013

1. The Joint Venture Company, viz. Strata Geosystems (India) Private Limited has secured credit facilities with ICICI Bank Limited to the tune of Rs. 21 Crores. The Company has issued corporate guarantees of Rs. 21.00 Crores during 2011-12 to ICICI Bank Ltd to secure the above credit facilities sanctioned to the Joint Venture Company referred above . The said guarantees are within the limit of Rs. 25 Crores approved by the shareholders of the Company under section 372-A of the Companies Act, 1956 vide postal ballot notice dated May 26, 2008. The above guarantees are secured by deposit of title deeds of Unit No 317,318 & 319 at Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai.

The above facilities are also secured by the personal guarantee of one of the erstwhile Directors of the Company.

2. Apart from the limited trading activities, the management has also leased out part of the Mumbai office premises at Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai - 11.

3. Segment Reporting:

The operation of the Company represents only one business segment, viz. ''Trading in Fabrics''. Accordingly, all earnings, assets and liabilities relate to this activity only and there is no separate Segment.

4. The Company has a 29.50% equity interest in a Jointly Controlled Entity- M/s. Strata Geosystems (India) Private Limited. ("Strata"). The Company has made an investment into Strata''s Equity Capital and will from time to time commit other resources, as may be necessary, based on Strata''s business plan.

In accordance with the requirements of Accounting Standard on Financial Reporting of Interest in Joint Ventures (AS-27) notified by the Companies (Accounting Standards) Rules, 2006, the interest in the jointly controlled entity has been accounted for as an Investment in accordance with Accounting Standard (AS) 13, Accounting for Investments and has been reflected under investments - Note 1.9

5. Earning Per Share

Earning per share is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. The numbers used in calculating basic and diluted earning per equity share are as stated below:

6. The figures of the previous year have been regrouped / reclassified, wherever necessary, to conform to the current year''s presentation.


Mar 31, 2012

NOTE 1.1 A

Disclosure pursuant to Note no. 6(A)(e) of Part I of Schedule VI to the Companies Act, 1956 Rights, Preferences and restrictions attached to shares

The Company has only one class of Equity Shares, having par value of Rs. 10/- per share. Each Shareholder is eligible for one vote per share held.

Dividend if proposed by the Board of Directors will be subject to the approval of the Shareholders in the ensuing Annual General Meeting except in case of Interim Dividend.

In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Note : Deferred Tax Liability has been reviewed and restated since no depreciation has been claimed in Income-Tax on certain Leased out Fixed Assets. Company has recongnised Deferred Tax Assets on unabsorbed depreciation to the extent of Deferred Tax Liability.

NOTE 1.2: CONTINGENT LIABILITIES AND COMMITMENTS (Refer Note 3.2)

Disclosure pursuant to Note no. 6 (T) of Part I of Schedule VI to the Companies Act, 1956

Contingent liabilities and commitments As At As At (to the extent not provided for) 31st March 2012 31st March 2011

(a) Contingent Liabilities

(i) Claims against the company not acknowledged as debt - -

(ii) Guarantees 210,000,000 127,500,000

(iii) Other money for which the company is contingently liable 1,946,486 1,946,486

211,946,486 129,446,486

(b) Commitments _ _

Total 211,946,486 129,446,486

3. The Company had issued corporate guarantees upto an aggregate value of Rs. 12.75 Crores to Bank of India for securing credit facilities granted by the said bank to the Joint Venture Company, viz. Strata Geosystems (India) Private Limited. The said guarantees are within the limit of Rs. 25 Crores approved by the shareholders of the Company under section 372-A of the Companies Act, 1956 vide postal ballot notice dated May 26, 2008. The above guarantees were secured by deposit of title deeds of Unit No 317,318 & 319 at Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai. The above guarantees were annulled upon repayment by the Joint Venture Company, of all the outstanding to Bank of India and cessation of credit facilities with the said bank.

The Joint Venture Company, viz. Strata Geosystems (India) Private Limited has since secured credit facilities with ICICI Bank Limited to the tune of Rs. 21 Crores. The Company has issued corporate guarantees of Rs. 21.00 Crores during 2011-12 to ICICI Bank Ltd to secure the above enhanced credit facilities sanctioned to the Joint Venture Company referred above . The said guarantees are within the limit of Rs. 25 Crores approved by the shareholders of the Company under section 372-A of the Companies Act, 1956 vide postal ballot notice dated May 26, 2008. The above guarantees are secured by deposit of title deeds of Unit No 317,318 & 319 at Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai.

The above facilities are also secured by the personal guarantee of one of the erstwhile Directors of the company.

4. Apart from the limited trading activities, the management has also leased out part of the Mumbai office premises at Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai - 11.

5. Segment Reporting:

The operation of the Company represents only one business segment, viz. 'Trading in Fabrics'. Accordingly, all earnings, assets and liabilities relate to this activity only and there is no separate Segment.

6. The Company has a 29.50% equity interest in a Jointly Controlled Entity- M/s. Strata Geosystems (India) Private Limited. ("Strata"). The Company has made an investment into Strata's Equity Capital and will from time to time commit other resources, as may be necessary, based on Strata's business plan.

In accordance with the requirements of Accounting Standard on Financial Reporting of Interest in Joint Ventures (AS-27) notified by the Companies (Accounting Standards) Rules, 2006, the interest in the jointly controlled entity has been accounted for as an Investment in accordance with Accounting Standard (AS) 13, Accounting for Investments and has been reflected under investments - Note 1.9

7. The figures of the previous year have been regrouped / reclassified, wherever necessary, to conform to the current year's presentation.


Mar 31, 2011

Previous Year Rupees Rupees

1. A. Contingent Liabilities not provided for in respect of: Liability in respect of a award of the Labour Court Silvassa 192,000 192,000 which has been deposited in court pending disposal of the case

2. The Company had issued corporate guarantees upto an aggregate value of Rs. 10 Crores during the year 2008-09 to Bank of India for securing credit facilities granted by the said bank to the Joint Venture Company, viz. Strata Geosystems (India) Private Limited, in which a director of the company was a director at the relevant time. The said guarantees are within the limit of Rs. 25 Crores approved by the shareholders of the Company under section 372-A of the Companies Act, 1956 vide postal ballot notice dated May 26, 2008. Before issue of the above guarantees, the Company has made an application to the Central Government for approval under section 295 of the Act which requires prior approval. The Central Government has intimated its approval to the Company wide approval letter dated August 05, 2009.The above guarantees were secured by deposit of title deeds of land and building situated at plot no 126, Piparia Industrial Estate, Piparia Silvassa and also of unit no 317, Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai – 11 of the Company. Subsequent to the sale of Silvassa land and building and purchase of Units 318 and 319 at Tantia Jogani Industrial Premises, Mumbai the above guarantees are secured by deposit of title deeds of Unit No 317,318 & 319 at Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai. The Company has issued a further guarantee of Rs. 2.75 Crores during 2009-10 to Bank of India to secure the enhanced credit facilities sanctioned to the Joint Venture Company referred above . The said guarantee is within the limit of Rs. 25 Crores approved by the shareholders of the Company under section 372-A of the Companies Act, 1956 vide postal ballot notice dated May 26, 2008.

The above guarantees are also secured by the personal guarantee of Mr. Ashok M. Bhawnani the erstwhile Chairman and Managing Director of the Company.

3. Apart from the limited trading activities, the management has also leased out part of the Mumbai office premises at Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai – 11.

4. Related Party Transactions

a. List of Related Parties and Nature of Relationship

List of related parties Nature of Relationship

Amit R. Dalmia, Saanwaria Polyester Pvt. Ltd. Director

Chairman Creative Global Services Pvt. Ltd. Director

Viaton Energy Pvt. Ltd. Director

Viaton Infrastructure Pvt. Ltd. Director

Encompass Designs Pvt. Ltd. Director

Company Strata Geosystems (India) Pvt. Ltd. Joint Venture Company

5. Taxation:

a. Provision for current tax has been made in accordance with Section 115JB of the Income-Tax Act and applicable MAT Credit has been recognized.

c. The Deferred Tax Liability (Net) for the year comes to Rs. 448,172 {Previous year Deferred Tax Liability (Net) Rs. 2,004,805}.

6. Segment Reporting:

The operation of the Company represents only one business segment, viz. 'Trading in Fabrics'. Accordingly, all earnings, assets and liabilities relate to this activity only and there is no separate Segment.

7. The Company has a 33.88% equity interest in a Jointly Controlled Entity- M/s. Strata Geosystems (India) Private Limited. ("Strata"). The Company has made an investment into Strata's Equity Capital and will from time to time commit other resources, as may be necessary, based on Strata's business plan.

In accordance with the requirements of Accounting Standard on Financial Reporting of Interest in Joint Ventures (AS-27) notified by the Companies (Accounting Standards) Rules, 2006, the interest in the jointly controlled entity has been accounted for as an Investment in accordance with Accounting Standard (AS) 13, Accounting for Investments and has been reflected under investments – Schedule 4

8. Disclosure as required by Accounting Standard 19, "Leases" (AS-19), notified by the Companies (Accounting Standards) Rules, 2006 are given below:

a. Where the Company is a lessor:

i. Licence Fee of Rs. 1,455,000/- (Previous Year Rs. 1,440,129/-) received from temporary user is recognized in the Profit and Loss Account.

ii. The future minimum lease receipts under non-cancelable operating lease-not later than one year Rs. NIL, (Previous year Rs. NIL).

iii. Initial direct costs are recognized as expenses in the year in which it is incurred.

9. The figures of the previous year have been regrouped / reclassified, wherever necessary, to confirm to the current year's presentation.


Mar 31, 2010

1. The Company had issued corporate guarantees upto an aggregate value of Rs. 10 Crores during the year 2008-09 to Bank of India for securing credit facilities granted by the said bank to the Joint Venture Company, viz. Strata Geosystems (India) Private Limited, in which a director of the company was a director at the relevant time. The said guarantees are within the limit of Rs. 25 Crores approved by the shareholders of the Company under section 372-A of the Companies Act, 1956 vide postal ballot notice dated May 26, 2008. Before issue of the above guarantees, the Company has made an application to The Central Government for approval under section 295 of the Act which requires prior approval. The Central Government has intimated its approval to the Company. The above guarantees were secured by deposit of title deeds of land and building situated at plot no 126, Piparia Industrial Estate, Piparia Silvassa and also of unit no 317, Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai - 11 of the Company. Subsequent to the sale of Silvassa land and building and purchase of Units 318 and 319 at Tantia Jogani Industrial Premises, Mumbai the above guarantees are secured by deposit of title deeds of Unit No 317,318 & 319 at Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai.

The above guarantees are also secured by the personal guarantee of Mr. Ashok M. Bhawnani the erstwhile Chairman and Managing Director of the Company.

2. The Company has issued a further guarantee of Rs. 2.75 Crores during the year to Bank of India to secure the enhanced credit facilities sanctioned to the Joint Venture Company referred to in note(2) above . The said guarantee is within the limit of Rs. 25 Crores approved by the shareholders of the Company under section 372-A of the Companies Act, 1956 vide postal ballot notice dated May 26, 2008.

3. Fixed Assets being Land & Building, Plant & Machinery, Electrical Installations, Furniture & Fixtures and Office Equipments at Silvassa which were held for sale have been sold during the year. The disposal was approved by the shareholders of the Company vide resolution passed in terms of Postal Ballot Notice dated February 9, 2008. Since the said assets except the building block were not in use, no depreciation was provided in respect of these assets upto the date of sale.

4. Apart from the limited trading activities, the management has also leased out part of the Mumbai office premises at Tantia Jogani Industrial Premises, J. R. Boricha Marg, Lower Parel, Mumbai -11.

5. Miscellaneous Expense include Rs. Nil/- (Previous year Rs. 20,000/-) being compounding fees paid in terms of CLB order dated March 31, 2009.

6. Taxation:

a. Provision for current tax has been made in accordance with Section 115JB. of the Income-Tax Act and applicable MAT Credit has been recognized.

7. Segment Reporting:

The operation of the Company represents only one business segment, viz. Trading in Fabrics. Accord- ingly, all earnings, assets and liabilities relate to this activity only and there is no separate Segment.

8. The Company has a 33.88% equity interest in a Jointly Controlled Entity- M/s. Strata Geosystems (In- dia) Private Limited. ("Strata"). The Company has made an investment into Stratas Equity Capital and will from time to time commit other resources, as may be necessary, based on Stratas business plan.

9. Disclosure as required by Accounting Standard 19, "Leases" (AS-19), notified by the Companies (Ac- counting Standards) Rules, 2006 are given below: a. Where the Company is a lessee:

i. Lease payments are recognized in the statement of Profit and Loss Account under "Rent, Rate & Taxes" in Schedule 11.

10. The figures of the previous year have been regrouped / reclassified, wherever necessary, to conform to the current years presentation.