1 Contingent Liabilities in respect of :               (Rs. Crore)
 
 Sr. No. Particulars                        Current Year  Previous Year
 
 A Customs duty on shortfall in export 
 obligation in accordance with EXIM               Amount         Amount
 Policy                                    Unascertained  Unascertained
 (The company is hopeful of meeting the 
 export obligation within the
 stipulated period)
 
 B Pending Litigation                               0.05          0.05
 
 C Guarantees given by banks on behalf 
 of the Company                                    24.69         43.96
 
 D Corporate Guarantees given to bank for 
 loans taken by Subsidiary                        213.35        212.79
 Companies
 
 E Bills discounted                               242.94         71.47
 
 F Taxation Matters :
 
 a) During the year, the Company received 
 Income Tax demand mainly                          5.91             - 
 on account of alleged short deposition 
 of TDS amounts for four years arising 
 from wrong TAN numbers mentioned while 
 uploading the TDS return and certain 
 payments not considered by the Tax 
 authorities, although duly paid by the 
 company. The Company has filed an appeal 
 with the Commissioner of Income Tax (A) 
 and also made application for rectification 
 u/s 154 providing details of amounts paid 
 to the bank and is hopeful of a favourable 
 order.
 
 b) Demands of Works Contract Tax not 
 acknowledged as debts and not                      0.59              - 
 provided for. The company has initiated 
 proceedings against such demand and is 
 hopeful of favourable decision.
 
 G Guarantee provided to New City of 
 Bombay Mfg. Mills Limited (Joint                  18.00              - 
 Venture company) for loan given to Grabal 
 Alok Impex Limited and another company
 
 2 Related Party Disclosure
 
 A.  Name and transaction / balances with related party.
 
 1.  Name of related parties and nature of relationship
 
 As per Accounting Standard 18 (AS-18) Related Party Disclosures,
 Company''s related parties disclosed as below:
 
 I Associate Companies
 
 Grabal Alok (UK) Ltd. (Formerly known as Hamsard 2353 Limited) 
 
 Alspun Infrastructure Ltd.  
 
 Ashford Infotech Private Limited 
 
 Nirvan Builders Private Limited 
 
 Next Creation Holdings LLC
 
 II Entities under common control
 
 Alok Denims (India) Private Limited 
 
 Alok Finance Private Limited 
 
 Alok Knit Exports Limited 
 
 Alok Textile Traders 
 
 Ashok B. Jiwrajka (HUF) 
 
 Ashok Realtors Private Limited 
 
 Buds Clothing Co.  
 
 D. Surendra & Co.  
 
 Dilip B. Jiwrajka (HUF) 
 
 Grabal Alok Impex Limited 
 
 Grabal Alok International Limited
 
 Gogri Properties Private Limited
 
 Green Park Enterprises
 
 Jiwrajka Associates Private Limited
 
 Jiwrajka Investment Private Limited
 
 Niraj Realtors & Shares Private Limited
 
 Nirvan Exports
 
 Nirvan Holdings Private Limited
 
 Pramatex Enterprises
 
 Pramita Creation Private Limited
 
 Surendra B. Jiwrajka (HUF)
 
 Trumphant Victory Holdings Limited.
 
 III Subsidiaries
 
 Alok Inc.
 
 Alok Industries International Ltd.
 
 Alok Retail (India) Limited (Formerly known as Alok Homes &
 
 Apparel Private Limited)
 
 Alok Land Holdings Private Limited
 
 Alok Aurangabad Infratex Private Limited
 
 Alok H&A Limited
 
 Alok International, Inc.
 
 Alok European Retail, s.r.o.  Mileta, a.s.
 
 Alok Infrastructure Limited
 
 Alok Apparels Private Limited
 
 Alok New City Infratex Private Limited
 
 Alok Realtors Private Limited
 
 Alok HB Hotels Private Limited
 
 Alok HB Properties Private Limited
 
 Springdale Information and Technologies
 
 Private Limited
 
 Kesham Developers & Infotech Private Limited
 
 IV Joint Venture
 
 Aurangabad Textiles & Apparel Parks Limited 
 
 New City Of Bombay Mfg.  Mills Limited
 
 V Key Management Personnel
 
 
 Ashok B. Jiwrajka
 
 Chandrakumar Bubna
 
 Directors
 
 Dilip B. Jiwrajka
 
 Surendra B. Jiwrajka
 
 VI Relatives of Key Management Personnel
 
 Alok A. Jiwrajka
 
 Suryaprakash Bubna
 
 c.  Joint Venture
 
 In compliance with the Accounting Standard 27 on ''Financial Reporting
 of interest in Joint Ventures'' as notified by the (Companies Accounting
 Standards) Rules, 2006, the Company has interests in the following
 jointly controlled entities, which are incorporated in India.
 
 3 Employee Stock Option Scheme (ESOS)
 
 During the year, the shareholders of the Company approved the Employee
 Stock Option Scheme vide postal ballot, in accordance with the
 Securities and Exchange Board of India (ESOP & ESPS) Guidelines, 1999.
 Such scheme provides for grant of options to the eligible employees and
 /or directors of the Company and / or its subsidiaries. The Company is
 yet to grant any options under the scheme at the balance sheet date.
 
 4 Employee benefit plans:
 
 i) Defined contribution plans:
 
 Amounts recognized as expenses towards contributions to provident fund,
 superannuation and other similar funds by the Company are Rs. 8.08
 Crore (Previous Year Rs. 6.31 crore) for the year ended 31 March 2011.
 
 ii) Defined benefit plans:
 
 a) Gratuity Plan: The Company makes annual contribution to the
 Employee''s Group Gratuity Assurance Scheme, administered by the Life
 Insurance Corporation of India (''LIC''), a funded defined benefit plan
 for qualifying employees. The scheme provides for lump sum payment to
 vested employees at retirement, death while in employment or on
 termination of employment of an amount equivalent to fifteen days
 salary payable for each completed year of service or part thereof in
 excess of six months. Vesting occurs on completion of five years of
 service.
 
 b) Compensated absences: Employees'' entitlement to compensated absences
 in future periods based on unavailed leave as at balance sheet date, as
 per the policy of the Company, is expected to be a long term benefit
 and is actuarially valued.
 
 The following table sets out the status of the gratuity plan for the
 year ended 31 March 2011 as required under AS 15 (Revised)
 
 5 Segment Reporting
 
 a) Primary Segment: Geographical Segment
 
 The company, considering its high level of international operations and
 present internal financial reporting based on geographical location of
 customer, has identified geographical segment as primary segment.
 
 The geographic segment consists of:
 
 a) Domestic (Sales to Customers located in India)
 
 b) International (Sales to Customers located outside India)
 
 Revenue directly attributable to segments is reported based on items
 that are individually identifiable to that segment. The company
 believes that it is not practical to allocate segment expenses, segment
 results, fixed assets used in the company''s business or liabilities
 contracted since the resources/services/assets are used interchangeably
 within the segments. Accordingly, no disclosure relating to same is
 made
 
 b) Secondary Segment: Business Segment
 
 The company is operating in a single business i.e. Textile and as such
 all business activities revolve around this segment. Hence, there is no
 separate secondary segment to be reported considering the requirement
 of AS 17 on Segment Reporting
 
 6 Provision for Income Tax of Rs. 120.57 crore (previous year Rs.
 63.56 crore) has been computed on the basis of Minimum Alternate Tax
 (MAT) in accordance with Section 115JB of the Income Tax Act, 1961, in
 view of deductions available to the company. Considering the future
 profitability and taxable positions in the subsequent years, the
 company has recognized ''MAT credit entitlement'' amounting to Rs. 42.25
 crore (Previous year Rs. 34.26 crore), aggregating to Rs.110.39 crore
 (previous year Rs. 68.14 crore), as an asset by crediting the Profit
 and Loss Account for an equivalent amount and disclosed under ''Loans
 and Advances'' (Schedule 11) in accordance with the Guidance Note on
 Accounting for credit available in respect of Minimum Alternate Tax
 under the Income Tax Act, 1961 issued by The Institute of Chartered
 Accountants of India.
 
 7 Grabal Alok (UK) Ltd, an associate Company, (Grabal Alok UK) has
 entered into a JPY/USD foreign currency derivative entailing monthly
 settlement up to October 2012 with a ''knock-out'' feature at a
 stipulated JPY/USD mark. Vide a Novation agreement, the Company has
 taken over the obligation to meet the liability which may arise from
 this derivative. Based on an assessment considering a forecast model,
 Grabal Alok UK has quantified the probable outgo at GBP 2.151 million
 in it''s audited accounts. The Company has accordingly made a provision
 for an amount of Rs. 15.47 crore (GBP 2.151 mio) against it''s
 obligation.
 
 8 The Company had invested Rs. 79.15 crore in 1% cumulative redeemable
 preference shares of Alok Industries International Ltd (Alok BVI),
 its wholly owned subsidiary in an earlier year, which were redeemed
 during the year. Alok BVI has investments in step down subsidiaries, an
 associate company and others (investee companies). As of the year end
 an amount of Rs. 62.28 crore is due to the Company from Alok BVI. Based
 on an objective assessment of expected cash flow from investee
 companies, Alok BVI considers the provision for diminution made in the
 books as adequate. Accordingly, the Company has considered such advance
 as good of recovery.
 
 9 During the previous year, the Company invested in a newly formed
 company, Triumphant Victory Holding Limited (TVHL) in the British
 Virgin Islands, as a strategic long term investment. TVHL has availed
 of a short term loan facility from Axis Bank-DIFC-Dubai Branch for
 investment in Alok Industries International Limited by way of
 Compulsory Convertible Debentures with put option on the Company at the
 end of due date. The said put option was backed by a lien on fixed
 deposit of Nil (Previous Year Rs. 444.00 crore) of the Company held by
 Axis Bank, New Delhi.
 
 10 a) The Company, during the year based on the Announcement of The
 Institute of Chartered Accountants of India Accounting for
 Derivatives along with the principles of prudence as enunciated in
 Accounting Standard 1 (AS-1) Disclosure of Accounting Polices has
 accounted for derivative forward contracts at fair values.
 
 On that basis, changes in the fair value / (loss) of the derivative
 instruments as at 31 March 2011 aggregating to Rs. 72.96 Crore
 (previous year Rs. 23.95 Crore) has been accounted for by the Company.
 The charge on account of derivative losses has been computed on the
 basis of MTM values based on the report of counter parties. Net gain is
 fair values have been ignored.
 
 b) Derivative contracts entered into by the company and outstanding as
 on 31 March 2011 for hedging currency and interest rate related risks
 
 11 During the year Deutsche Bank, Singapore Branch has subscribed to
 unsecured floating rate compulsory convertible bonds issued by Alok
 Industries International Limited (ALOK BVI), a company incorporated in
 British Virgin Islands (a wholly owned subsidiary) and Grabal Alok (UK)
 Ltd (GAUK) a company incorporated in the united kingdom (associate) of
 the company, of USD 56.5 million each, with a green shoe option of USD
 25 million. These bonds are secured by subservient charge on current
 and movable assets of the company which was created by executing a Deed
 of Hypothecation on 28 October 2010 in favour of AXIS Trustee Services
 Limited, Mumbai, India.
 
 12 In line with the notification dated 31 March 2009 issued by the
 Ministry of Corporate Affairs, amending Accounting Standard (AS) 11 –
 ''E ffect of changes in Foreign Exchange Rates'', the Company has chosen
 to exercise the option under paragraph 46 inserted in the Standard by
 the notification.
 
 i) Added to fixed assets/ capital work-in-progress Rs. 23.48 crore
 (Previous year Rs. 75.00 crore) being exchange difference on long term
 monetary items relatable to acquisition of fixed assets.
 
 ii) Carried forward Rs. (0.22) crore (previous year Rs. 0.17 crore) in
 the ''Foreign Currency Monetary Item Translation Difference Account''
 being the amount remaining to be amortised as at 31 March 2011.
 
 13 The amounts in balance Sheet, Profit and Loss account and cash flow
 statement are rounded off to the nearest lakh and denominated in crore
 of rupees. The figures of the previous year have been reclassified /
 regrouped wherever necessary to correspond with those of the current
 year.