Omnitech Infosolutions

1 Contingent Liabilities                    Rupees In Lakhs
                                            2009        2008
 
 i.  Contingent Liability Outstanding 
 guarantees given by banks in favor
 of                                         34.24    25.54
 various government authorities and others 
 ii.  Capital Commitments
 Estimated amount of contracts remaining      -     325.00
 To be executed on capital account and Not provided for
 (net of advances)
 
 2.  Income Tax Authorities have made demand of Income Tax amounting to
 Rs. 288 Lakhs for the Financial Year 2005-06, which the Company has
 disputed and is in appeal before Commissioner of Income Tax (Appeal) -
 VII.  An amount of Rs. 60 Lakhs has been paid against the demand as
 above
 
 3.  Change in Method of Accounting
 
 Till the year ended 31st March, 2008, the company was providing
 depreciation on software @ 16.21 % on Straight Line method as specified
 under Schedule XIV to the Companies Act, 1956 However in line with
 Accounting Standard 26 (Accounting for Intangibles) of ICAI, from the
 year 2008-2009, value of software purchased is depreciated over its
 useful life retrospectively. As a result,
 
 4.  Dues to Micro, Small and Medium Enterprises
 
 The Company has not received any memorandum (as required to be filed by
 the Suppliers with the notified authorities under the Micro, Small and
 Medium Enterprises Development Act, 20061 claiming their status as on
 31st March 2009 as micro, small or medium Enterprises. Consequently the
 amount paid/payable to these parties during the year is nil.
 
 5.  Related Party Disclosures
 
 i.  List of Parties where control exists, irrespective of transactions
 
 a.  Subsidiary Companies
 
 1.  Omnitech Technologies Inc., USA;
 
 2.  Omnitech TSB Co. Limited, Japan
 
 b.  Associates/Joint Ventures
 
 1.  DRC Gulf W.L.L, Bahrain
 
 2.  Omni Gulf Technologies W.L.L., Bahrain
 
 c.  Key Management Personnel
 
 1.  Mr. Atul Hemani - Managing Director
 
 2.  Mr. Avinash Pitale - Executive Director
 
 3.  Mr. Devarshi Buch - Executive Director
 
 d.  Relatives of Key Management Personnel
 
 1.  Mrs. Amisha A. Hemani 6.  Mr. Maganlal Hemani
 
 2.  Mrs. Vanita Hemani 7.  Ms. Sheetal Pitale
 
 3.  Mr. Nirav Hemani 8.  Mr. Nitish Pitale
 
 4.  Ms. Vidhi Hemani 9.  Mrs. Shubhangi Pitale
 
 5.  Mr. Bharat Hemani 10.  Mrs. Beejal D. Buch
 
 e.  Enterprises owned or significantly influenced by Key Management
 Personnel or their relatives
 
 1.  Omnitech Technologies Limited, India
 
 2.  Wintel Computers Private Limited
 
 3.  Atul Hemani HUF
 
 4.  Avinash Pitale HUF
 
 5.  Omnitech Employees Wetfare Trust
 
 f.  Fellow Subsidiary Companies
 
 1.  Arham Technologies Co. Ltd.
 
 6- Status of Deployment of Funds raised in IPO
 
 7.  Remittance of Dividend in Foreign Currency
 
 During the year, the Company has not remitted any amount in foreign
 currencies on account of dividends and does not have information as to
 the extent to which remittances, if any, in foreign currencies on
 account of dividends have been made by/on behalf of non-resident
 shareholders. The particulars of dividends payable to
 
 8.  Retirement Benefits
 
 The employees gratuity fund scheme is managed by Life Insurance
 Corporation of India. The said scheme is a defined benefit scheme. The
 present obligation is based upon actuarial valuation using the
 projected unit credit
 
 9.  Impairment of Assets
 
 In accordance with Accounting Standard 28 issued by ICAI, the Company
 has made a provision of Rs. 6.10 Lakhs for impairment against Fixed
 Assets during the year ended on 31st March 2009.
 
 10.  Equity Share Warrants
 
 During the Financialyear ended on 31st March 2009, the Company allotted
 1,325,000 warrants convertible into one Equity Share for each warrant
 to the following persons including some of the Promoters at a price of
 Rs. 165.51 each in accordance with the SEBI (DIP) Guidelines and other
 applicable laws and Special Resolution passed by Shareholders at their
 Annual General Meeting held on 13th June 2008 :
 
 11.  Sale of Investment made in DRC Gulf WLL
 
 During the Financial Year ended on 31st March 2009, the Company sold
 its investment in DRC Gulf WLL., Bahrain. This was due to lack of
 required profitability in that business.
 
 12.  Derivative Instruments
 
 The Company uses Forward Contracts to hedge against its Foreign
 Exchange Exposure. The Company does not enter into any derivative
 instruments for Trading or Speculative purposes. As on 31st March 2009,
 there are no outstanding Forward Contracts.
 
 13.  Segmental Reporting
 
 The Company is mainly engaged in the business of Information Technology
 and Information Technology enabled services. Considering the nature of
 business and financial reporting of the Company, the Company has only
 one segment viz. Information Technology.
 
 The Company operates in Local and Export geographically of which export
 sales have amounted to Rs. 5,212.95 Lakhs. But due to nature of
 business, the assets/liabilities and expenses thereof cannot be
 bifurcated separately.
 
 14.  Investment in Mutual Funds
 
 During the year the Company invested the surplus funds for short
 periods in the following Liquid/Cash Mutual Fund Schemes: