Arvind

The Directors are pleased to present the Annual Report along with the
 Audited Financial Statements for the period from 1st April, 2007 to
 31st March, 2008.
 
 1.  FINANCIAL RESULTS
 
 Highlights of Financial Results for the year areas under:
 
                                                          Rs. in crores
                                                      2007- 08    2006-07
 
 Turnover & Other Income                               2271.27    1847.99
 Profit before Depreciation,
 Interests Taxation                                     297.65     321.33
 Less: Interest and Finance costs                       131.40     150.26
 Gross Profit after Interest & Finance
 costs but before Depreciation & Taxation                16625     171.07
 Less: Deprecation/Impairment                            13664     143.36
 Net Profit before Taxation for the year                  2961      27.71
 Add: Non Recurring/ Extra Ordinary Items (Net)           0.00      94.29
 Profit after Extraordinary Items                         2961     122.00
 Less: Current Tax                                        3.10      11.61
 Less: Deferred Tax                                       0.00       0.00
 Less: Fringe Benefit Tax                                 2.25       2.44
 Add: MAT Credit Entitlement                              3.10      11.61
 Net Profit for the year                                 27.36     119.56
 Balance of Profit brought forward                      435.00     321.17
 Less : Transfer to Capital
 Redemption Reserve                                      13.20      9.90
 Less: Transfer to Debenture
 Redemption Reserve                                       0.00      2.25
 Less: Provision for Leave Encashment                     1.34      0.00
 Balance available for appropriation                    437.82    428.58
 Your Directors appropriate the same as under:
 Preference Dividend paid                                  248      3,14
 Tax on Interim Dividend                                  0.42      9.44
 Proposed Dividend on Equity shares                       0.00      0,00
 Tax on proposed Dividend                                 0.00      0.00
 Additional Dividend on Equity Shares                     0,00      0.00
 Taxon Additional Dividend                                0.00      0.00
 Balance carried forward to next year                   434.92    425.00
 Total                                                  434.92    425.00
 
 2.  OPERATIONS
 
 Your directors are pleased to Inform you that the company has been able
 steer through financial year 2007-08 , which was another challenging
 year. The company continues to operate the denim capacities at lower
 utilization level and has In fact shut down one of the manufacturing
 units and also had to face the rapidly rlsingenergy cost as the gas
 supply agreement ended in November 2007. The impact of the factors is
 visible in the results. Even though the turnover went up by 23%, the
 operational earnings increased merely by 7%.
 
 The company has registered a Net Profit after Extra-ordinary Items of
 Rs. 27 Crores compared to 120 Crores in the previous financial year, a
 drop of 77%.
 
 A detailed analysis of the financial results is given in the Management
 Discussion and Analysis Report which forms part of this report.
 
 The company during the year laid out the strategy of transforming
 itself from being a fabrics and apparel solutions company to a
 diversified business group with focus on branded apparels aid
 retailing. Over the last eight decades, ability of your company to
 understand change and willingness to evolve has helped it to change the
 face of fashion itself. Today, as we enter an exciting new world of
 opportunities, your company has gone through a new phase in its
 evolution to address the aspirations of its stakeholders. To reflect
 the new focus the company has changed its name from The Arvind Mills
 Limited to Arvind Limitedand launched a new brand ident3fy.
 
 3.  DIVIDENDS
 
 Dividend aggregating to Rs. 2.48 crores on 66,00,000 6% Redeemable
 Cumulative Non-Convertible Preference Shares of Rs. 100/-each has been
 paid by the Company as interim dividend or the year 2007-08. Your
 Directors recommend that the interim dividend be-fully adjusted as
 final dividend for the year ended on 31st March, 2008.
 
 Keeping in mind the need to conserve resources,your Directors do not
 recommend any dividend on Equity Shares for the year.
 
 4.  FINANCE
 
 During the year, your company has repaid the installments of Term Loans
 amounting to Rs. 165 crores falling due during the current year. The
 Company has also made fresh borrowings of Rs. 81 Crores for funding
 capital expenditure and other requirements. Long Term Debt including
 lease of the company stands to Rs. 1172 crores as on 31st March, 2008.
 
 5.  SUBSIDIARIES
 
 A detalled discussion on subsidiary companies and their performance
 during the year Is contained In the Management Discussion and Analysis
 Report which forms part of this Report.
 
 Pursuant to Accounting Standard AS 21 issued by the Institute of
 Chartered Accountants of India the Company has prepared Consolidated
 Financial Statements of the Company and its subsidiaries are included
 in the Annual Report,
 
 In view of the closure of business and disposal of the business
 undertaking, the accounts of Arvind Overseas (Mauritius) Limited,
 Arvind Spinning Limited and Lifestyle Fabrics Limited, have not been
 prepared on the going on concern basis. Aakar Foundatlonwear Limited
 and Arvind Textile Mills Limited have net commenced their businesses,
 Hence, the accounts of these subsidiary companies have not been
 consolidated with accounts of the company as per the provisions of the
 Accounting Standard 21 relating to consolidation of accounts.
 
 6.  DIRECTORS
 
 Your Directors note with deep regret the sad demise of Mr. Arvind N.
 Lalbhai, Chairman of the Company on 3rd August, 2007 who had been a
 Chairman for 34years, a Managing Director for 28 years and a Director
 for 34 years. Your Directors place on record their deep sense of
 appreciation for the valuable services rendered by him to the Company
 during the tenure of his office.
 
 Industrial Development Bank of India (IDBI) nominated Mr.
 G.M.Yadwadkar as its Nominee Director on the Board of the Company in
 place of Mr. V.K.Pandit with effect from 25th October, 2007. The Board
 places on record its appreciation for the valuable services rendered by
 Mr. V.K.Pandit during his tenure as Director.
 
 Mr. Munesh Khanna was appointed as an additional Director of the
 Company on 27th October, 2007. He hold office only upto the date of
 this Annual General Meeting pursuant to the provisions of Section 260
 of the Companies Act, 1956. The Company has received a notice from a
 member of the Company intending to propose him as a Director on the
 Board.
 
 Atthe ensuing Annual General Meeting, Mr Sanjay S. Lalbhai and Mr.
 Jayesh K. Shah, Directors of the Company, retire by rotation and being
 eligible seek re-appointment.
 
 7.  CORPORATE GOVERNANCE
 
 Your Company is committed to the tenets of good Corporate Governance
 and has taken adequate steps to ensure that the requirements of
 Corporate Governance as laid down in Clause 49 of the Listing Agreement
 are complied with.
 
 A separate report on Corporate Governance and a Management Discussion
 and Analysis Report are being published as a part of the Annual Report
 of the Company.
 
 The Auditors of the Company have certified that conditions of Corporate
 Governance as stipulated under Clause 49 of the Listing Agreement are
 complied by the Company and their Certificate is annexed to the Report
 on Corporate Governance.
 
 8.  RESPONSIBILITY STATEMENT
 
 The Directors confirm that:
 
 1.  in the preparation of the annual accounts, the applicable
 accounting standards have been followed. There are no material
 departures from the applicable accounting standards;
 
 2, such accounting policies have been selected and applied consistently
 and such Judgements and estimates have been made as art reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the Company at the end of the financial year ended on 31st March, seel
 and of the profit of the Company for that period;
 
 3.  proper and sufficient care has been taken for the maintenance of
 adequate accounting records in accordance with the provisions of the
 Companies Act, 1956 for safeguarding the assets of the Company and for
 preventing and detecting fraud and other irregularities; and
 
 4.  the statements of accounts for the year ended on 31st March, 2008
 have been prepared on a going concern basis.
 
 9.  FIXED DEPOSITS
 
 The Company did not accept any deposits during the year. Out of the
 unclaimed fixed deposits of Rs. 0.02 crores, the Company has repaid
 deposits of Rs. 0.001 crores during the year and the balance deposits
 of Rs. 0.02 crores involving 17 depositors are still lying unclaimed
 with the Company.
 
 10.  INFORMATION REGARDING CONSERVATION OF ENERGY ETC.  AND EMPLOYEES
 
 Information required under Section 217(i)(e)ofthe Companies Act, 1956
 read with Rule 2 of the Companies (Disclosure of Particuars in the
 Report of Board of Directors) Rules, 1988 and under Section 217(2A) of
 the Companies Act, 1956 read with Companies (Particulars of Employees)
 Rules, 1975, as amended from time to time, forms part of this report.
 However, as per the provision; of Section 219 (i)(b) (iv), the report
 and accounts are being sent to all shareholders of the Company
 excluding the information relating to conservation of energy,
 technology absorption and foreign exchange earning and outgo, and the
 statement of particulars of employees. Any shareholder interested in
 obtaining such particulars may inspect the same at the Registered
 Office of the Company or write to the Secretary for a copy.
 
 n.  AUDITORS
 
 The Auditors, Sorab S. Engineer & Co., retire and offer themselves for
 re-appointment. It is proposed that Sorab S. Engineer & Co., be
 re-appointed as auditors of the Company. You are requested to appoint
 the auditors and fix their remuneration.
 
 12.  ACKNOWLEDGEMENT
 
 Your Directors are sincerely thankful to the Financial Institutions,
 Commercial Banks; Overseas Banks for the faith reposed in the Company
 and for their continued support. Your Directors also pace on record
 their deepsense of appreciation for the services rendered by the
 employees of the company,
 
                                              By Order of the Board
 
 Place : Ahmedabad                              SANJAY S, LALBHAI
 Date  : 10th May, 2008                  Chairman and Managing Director