Notes to Accounts of Omnitex Industries (India) Ltd.

Mar 31, 2025

14. Provisions

• The Company recognizes a provision when there is a present legal or constructive obligation as result of a past
event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the
obligation.

• Provisions are measured at the present value of management''s best estimate of the expenditure required to settle
the present obligation at the end of the reporting period.

15. Contingent Liabilities and Contingent Assets

• A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation
that the likelihood of outflow of resources is remote, no provision or disclosure is made.

• Contingent Assets are neither recognized nor disclosed in the financial statements.

16. Earnings Per share
Basic Earnings per Share

Basic earnings per share is calculated by dividing:

The profit attributable to owners of the Company by the weighted average number of equity shares outstanding during
the financial year, adjusted for bonus elements in equity shares issued during the year.

Diluted Earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.

17. New Standards / Amendments notified but not yet effective:

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended 31^st March 2025, MCA has not
notified any new standards or amendments to the existing standards which are applicable to the Company.

18. Rounding of Amounts

All amounts disclosed in the financial statements and notes have been disclosed in Rupees in Lakhs rounded off to two
decimals as per the requirement of Schedule III, unless otherwise stated.

4. 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.

5. Financial risk management

Company''s activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risk which
the entity is exposed to and how the entity manages the risk and its impact on the financial statements

(i) Credit Risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss
to the Company. The credit risk arises from trade receivables, security deposits, cash and cash equivalents and
deposits with banks.

Trade receivables

The company supplies yarn / fabric to customers. Concentrations of credit risk with respect to trade receivables
are limited as majority credit sales are made to high credit worthy entities. All trade receivables are reviewed and
assessed for default on regular basis. Our historical experience of collecting receivables, supported by the level of
default, is that credit risk is low.

For trade receivables, except for specifically identified cases, Company follows a simplified approach where
provision is made as per the ageing buckets which are designed based on historical facts and patterns.

(ii) Liquidity Risk

Liquidity risk is the risk that the Company will find it difficult in meeting its obligations associated with its financial
liabilities in time. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities
and the availability of funding through an adequate amount of committed credit facilities to meet obligations when
due and to close out market positions. Management monitors rolling forecasts of the Company''s liquidity position
and cash and cash equivalents on the basis of expected cash flows. The tables below analyses the Company''s
financial liabilities into relevant maturity groupings based on their contractual maturities.

‘(iii) Market Risk

Foreign Exchange Risk

Company is not exposed to foreign exchange risk presently.

Interest Rate Risk:

The Company''s investments in fixed deposits with banks are for short durations, and therefore do not expose the
Company to significant interest rates risk.

Investment Risk

The Company''s investment in mutual funds is spread across various quality liquid and arbitrage funds and the
management is monitoring their performance on a regular basis and therefore, the risk on this account if any is
limited.

6. Earnings per Share

Earnings 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 earnings per
equity share are as stated below:

7. OTHER STATUTORY INFORMATION: (to the extent applicable)

(i) The Company has not obtained any term loan from banks or any other lender. The Company has not borrowed
from banks or financial institutions on the basis of security of current assets.

(ii) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the
related parties, either severally or jointly with any other person.

(iii) The Company has not been declared a willful defaulter by any bank or other lender.

(iv) The Company does not have any Benami property, where any proceedings has been initiated or pending against
the Company for holding any benami property.

(v) The Company does not have any transaction with struck off companies.

(vi) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

(vii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(viii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (intermediaries) with the understanding that the intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ix) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding party (Ultimate beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(x) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such
as, search or survey or any other relevant provision of the Income Tax Act, 1961).

(xi) The Company is not covered under Section 135 of the Companies Act, 2013 with regard to CSR activities.

8 Financial instruments

A Accounting classification and fair values:

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value
hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities
not measured at fair value if the carrying amount is a reasonable approximation of fair value
Fair value hierarchy

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices in an active market. This
included listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which
are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are
valued using the closing NAV.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

B Measurement of fair values

Valuation techniques and significant unobservable inputs

The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current

transaction between willing parties. The following methods and assumptions were used to estimate the fair value.

1 The Company has not disclosed the fair value of financial instruments such as trade receivables, trade payables,
etc. because their carrying amounts are a reasonable approximation of fair value.

2. Fair values are determined in whole or in part using a valuation model based on assumptions that are neither
supported by prices from observable current market transactions in the same instrument nor are they based on
available market data. Financial instruments such as unlisted equity shares, loans are included in this hierarchy.

3. The management considers that the carrying amount of financial liabilities carried as amortised cost approximates
their fair value

(*) Average = (opening closing)/2.

(**) Reasons for variation.

(i) The current ratio has improved due to increase in cash and cash equivalents during the year on disposal of shares
of Strata Geosystems (India) Private Limited.

(ii) The Company has not borrowed any funds and debts was Rs. NIL in both the years

(iii) Return on Equity has decreased as there was no dividend income and there was no sale of investment property as
was the case in the previous year. Profit on sale of shares of Strata Geosystems (India) Private Limited has been
routed through OCI.

(iv) The Company did not have any inventory at the end of the financial year or previous year

(v) Trade receivable ratio with revenue from operations increased due to an increase in the amount of sales while
receivable at the end of the financial year is NIL.

(vi) Trade payable ratio is not applicable since there were no trade payables at the end of financial year or previous
year.

(vii) Net profit ratio and return on capital employed decreased due to profit on sale of shares being shown in OCI.

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

As per our report of even date For and on behalf of Board of Directors

JMT & Associates

Chartered Accountants Narendra Dalmia Ashok M Bhawnani

Firm Registration No. 104167W Managing Director (DIN 00071559) Director (DIN 00058344)

Amar Bafna Kusshal Ambbala Chaitanya Kulkarni

Partner - Membership No. 048639 Chief Financial Officer Company Secretary

Place: Mumbai Place: Mumbai

Date: 17^th April 2025 Date: 17^th April 2025

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Mar 31, 2024

4. 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.

5. Financial risk management

Company''s activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and its impact on the financial statements

(i) Credit Risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Company. The credit risk arises from trade receivables, security deposits, cash and cash equivalents and deposits with banks.

Trade receivables

The company supplies yarn / fabric to customers. Concentrations of credit risk with respect to trade receivables are limited as majority credit sales are made to high credit worthy entities. All trade receivables are reviewed and assessed for default on regular basis. Our historical experience of collecting receivables, supported by the level of default, is that credit risk is low.

For trade receivables, except for specifically identified cases, Company follows a simplified approach where provision is made as per the ageing buckets which are designed based on historical facts and patterns.

(ii) Liquidity Risk

Liquidity risk is the risk that the Company will find it difficult in meeting its obligations associated with its financial liabilities in time. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The tables below analyses the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities.

‘(iii) Market Risk

Foreign Exchange Risk

Company is not exposed to foreign exchange risk presently.

Interest Rate Risk:

The Company''s investments in fixed deposits with banks are for short durations, and therefore do not expose the Company to significant interest rates risk.

6. Disclosure as required by Indian Accounting Standard 40, “Investment Property”

1) Accounting Policy for measurement of Investment Property

o Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property.

o Investment property is measured initially at its cost, including related transaction costs and borrowing costs where applicable. Subsequent expenditure is capitalized to the asset''s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. o Investment properties are depreciated using the straight line method over their estimated useful lives which is 60 years.

o Fair valuation is based on projected rent capitalization method, which is Rs. Nil (previous year Rs. 793.80 Lakhs). The fair value measurement is categorized in Level 3 fair value hierarchy. This property has been sold during the year. Refer Note 1.11.1

3) Depreciation Method used: Straight Line Method

4) Useful remaining life of the asset: 23 years

5) Contractual obligations for repairs, maintenance or enhancements: Nil

6) The Investment Properties have been sold during the year. Refer Note 1.11.1 for further details.

7. Earnings per Share

Earnings 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 earnings per equity share are as stated below:

8. OTHER STATUTORY INFORMATION: (to the extent applicable)

(i) The Company has not obtained any term loan from banks or any other lender. The Company has not borrowed from banks or financial institutions on the basis of security of current assets.

(ii) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties, either severally or jointly with any other person.

(iii) The Company has not been declared a willful defaulter by any bank or other lender.

(iv) The Company does not have any Benami property, where any proceedings has been initiated or pending against the Company for holding any benami property.

(v) The Company does not have any transaction with struck off companies.

(vi) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(vii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(viii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding that the intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ix) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding party (Ultimate beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(x) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provision of the Income Tax Act, 1961).

(xi) The Company is not covered under Section 135 of the Companies Act, 2013 with regard to CSR activities.

9 Financial instruments

A Accounting classification and fair values:

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value Fair value hierarchy

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices in an active market. This included listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

B Measurement of fair values

Valuation techniques and significant unobservable inputs

The Fair Value of financial assets included is the amount at which the instrument could be exchanged in a current

transaction between willing parties. The following methods and assumptions were used to estimate the fair value.

1. The equity investments included in the level 3 of the fair value hierarchy have been valued using the cost approach to arrive a their fair value. Cost of unquoted equity instruments (refer Note 1.12) has been considered as an appropirte estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.

2 The Company has not disclosed the fair value of financial instruments such as trade receivables, trade payables, etc. because their carrying amounts are a reasonable approximation of fair value.

3. Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. Financial instruments such as unlisted equity shares, loans are included in this hierarchy.

4. The management considers that the carrying amount of financial liabilities carried as amortised cost approximates their fair value

(*) Average = (opening closing)/2.

(**) Reasons for variation.

(i) The current ratio has improved due to increase in cash and cash equivalents during the year on disposal of investment property and dividend received.

(ii) The Company has not borrowed any funds and debts was Rs. NIL in both the years

(iii) Return on Equity has improved in view of increase in net profit after tax for the year on account of profit on sale of investment property and receipt of dividend income on shares.

(iv) The Company did not have any inventory at the end of the financial year or previous year

(v) Trade receivable ratio with revenue from operations increased due to increase in the amount of trade receivable at the end of the financial year.

(vi) Trade payable ratio is not applicable since there were no trade payables at the end of financial year or previous year.

(vii) Net profit ratio and return on capital employed increased due to increase in net profit after tax for the financial year as compared to net loss in the previous year.

(viii) Return on investment was on account of dividend income on shares and capital gain on mutual fund.

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

year''s presentation.

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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.

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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.

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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.

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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.

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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.

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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.