2009-2010
 
                                                   Rupees    Rupees in
 
                                                in crores       Crores
 
 (1) Contingent liabilities not provided for
 
 (a) Income-tax matters in respect of earlier 
 years under dispute (including interest of 
 Rs. 5.86 crores) [31.03.2010. Rs.5.77 
 crores] as follows:                                41.18        37.10
 
 (i) Decided in Company''s favour by appellate 
 authorities and department in further appeal        5.11         5.11
 
 (ii) Pending in appeal - matters decided 
 against the Company                                36.07        31.99
 
 (b) Sales Tax, Service Tax and Excise Duties       14.12         1.47
 
 (c) Customs duty                                    0.25         0.37
 
 (d) Other claims against the Company not 
 acknowledged as debts (with interest thereon) .     6.99         4.38
 
 In respect of items (a) to (d) above, future cash outfl ows in respect
 of contingent liabilities are determinable only on receipt of judgments
 pending at various forums/authorities.
 
 (e) Counter indemnity for an amount of Rs. 96.22 crores (31.3.2010
 Rs.81.45 crores) issued in favour of banks which in turn have
 guaranteed loans granted by other banks abroad to PT Five Star Textile,
 Indonesia, (PTFS), a joint venture company as under:- (i) Rs. 84.16
 crores (31.3.2010 Rs. 71.05 crores) in favour of IDBI Bank Limited
 against guarantees issued to Punjab National Bank International London
 for loans granted to PTFS.  
 
 (ii) Rs. 12.06 crores (31.3.2010 Rs. Nil) in favour of IDBI Bank
 Limited against guarantees issued to Punjab National Bank International
 London for loans granted to PTFS.  
 
 (iii) Rs. Nil (31.3.2010 Rs. 10.40 crores) in favour of State Bank of
 India, against guarantees issued to State Bank of India, Indonesia for
 loans granted to PTFS.
 
 Item No. (i) secured by fi rst Mortgage/charge over part of the land of
 the Company at Spring Mills at Mumbai admeasuring 46,442.13 square
 metres and buildings and structures thereon.
 
 Item No. (ii) is secured by fixed deposit of Rs. 12.51 crores
 earmarked in favour of IDBI Bank Limited.
 
 As confi rmed by PTFS, the Company has a pari passu charge on PTFS''s
 assets, which would cover the aforesaid indemnity amount.
 
 (f) Bills discounting 41.44 25.89
 
 (g) In accordance with the EPCG Scheme, the company had during 2006-07
 and 2007-08 imported capital goods duty free, subject to condition that
 the Company will fulfi ll, in future, a specifi ed amount of export
 obligation within eight years. Amount of duty saved on import of the
 above goods aggregate Rs 29.78 crores (31.03.2010 Rs. 29.78 crores)
 against which export obligation of Rs 238.26 crores (31.03.2010 Rs.
 238.26 crores) needs to be fulfi lled. The company has made an
 application to the Government for modification of the export
 obligation. If the Company fails to meet the required export
 obligation, the company will be required to pay the import duty saved
 together with interest thereon.
 
 (h) Export obligation under Advance Licence Scheme Rs. 2.81 crores
 (31.03.2010 Rs. 2.81 crores) and duty saved thereon Rs. 0.71 crore
 (31.03.2010 Rs. 0.71 crore).
 
 (2) Capital Commitments
 
 Estimated amount of contracts to be executed on capital account and not
 provided for as at 31st March, 2011 Rs 7.72 crores (31.3.2010 Rs.6.05
 crores)
 
 (3) Share Capital
 
 Under orders from the Special Court (Trial of Offences relating to
 Transactions in Securities) Act, 1992, - the allotment against 928
 (2009- 10- 928) warrants carrying rights of conversion into equity
 shares of the Company has been kept in abeyance in accordance with
 section 206A of the Companies Act, 1956, till such time as the title of
 the bonafi de owner is certifi ed by the concerned Stock Exchanges.
 
 (4) The Shareholders of the company had approved on 24th March 2010
 through postal ballot issue of 39,57,000 Warrants with an option to
 subscribe equivalent number of shares of Rs.10 each comprising
 19,30,000 Warrants to be exercised on or before 31st March, 2011 and
 further 20,27,000 Warrants to be exercised on or after 1st April, 2011
 but not later than 18 months from the date of issue of the Warrants to
 Promoter(s)/Promoter Group in accordance with the applicable SEBI
 Regulations. Perman Project Supports Ltd. (PPSL), a company in the
 Promoter Group had on 19th July, 2010 accepted the above offer and paid
 an amount of Rs. 52.22 crores, representing 25% of the issue price of
 Rs. 527.83 per share fixed in accordance with the pricing of equity
 shares given in SEBI Regulations. PPSL exercised option of conversion
 of 19,30,000 warrants into equity shares on 28th March, 2011 and paid
 the subscription money of Rs. 76.40 crores towards the balance amount
 payable after adjusting the initial payment of 25% of the issue price.
 The Company has on 29th March, 2011 allotted to PPSL 19,30,000 equity
 shares of Rs. 10/- each at a premium of Rs.  517.83 per share.
 
 (5) Borrowing costs capitalised during the year as incidental
 expenditure relating to construction/development is Rs.1.04 crores
 (2009-2010 Rs.5.25 crores).
 
 (6) During the year 2000-2001, pursuant to the scheme of amalgamation
 between Scal Investments Limited (SIL) and the Company, sanctioned by
 the jurisdictional court on 20th April, 2001, the assets, liabilities
 and reserves of SIL had been transferred to and vested in the Company
 with effect from 1st October, 2000. The Company is taking necessary
 steps for securing transfer of some of the assets and liabilities in
 the name of the Company.
 
 (7) The Company has during the year ended 31st March, 2011 converted a
 part of the freehold land under real estate development from fixed
 assets to stock in trade at market value and the difference between the
 market value and cost amounting to Rs. 853.96 crores (2009-2010
 Rs.50.76 crores) has been credited to Revaluation Reserve. Further,
 pursuant to an Agreement for sale, the Company has sold a part of the
 proposed residential tower being constructed on such land and in
 accordance with the accounting policy consistently followed by the
 Company, recognised the revenue arising on sale of the undivided
 interest in underlying freehold land amounting to Rs. 70.57 Crores
 (2009-10 Rs. 256.29 Crores) in the Profit & Loss Account, with a
 corresponding release from revaluation reserve.
 
 (8) Debtors and creditors balances are subject to confi rmation and
 consequent reconciliation, if any.
 
 (9) Advances recoverable in cash or in kind or for value to be received
 
 (a) Advances recoverable in cash or in kind or value to be received
 includes an amount of Rs. 0.02 crores recoverable from Mr.Ness Wadia
 towards excess remuneration paid for the year 2010-11, since recovered.
 
 (b) Advances recoverable in cash or in kind or for value to be received
 include Rs. 0.71 crore on account of remuneration recoverable from Mr.
 M.K.Singh, Executive Director, whose services were terminated on 6th
 July, 2008 consequent to detection of irregular conduct. A suit has
 been fi led by the company in the High Court of Judicature of Mumbai
 alleging fraudulent misconduct. The matter is pending before the Court.
 
 (10) Deposit with a joint venture company
 
 Deposit of Rs.15.22 crores (2009-2010 Rs.15.22 crores) with a joint
 venture company is a shareholders'' deposit with PT. Five Star Textile
 Indonesia (PTFS). This deposit, originally denominated in U.S. $, was
 w.e.f. 1st April 2003 converted to Indian rupees, as approved by the
 Board of Directors of the Company and by the Board of Commissioner''s of
 PTFS. This deposit was earlier repayable by PTFS after it cleared, in
 full, the term loan availed by it from a consortium of Indian
 nationalised banks, which was to be effected in installments spread out
 between 1996 and 2010. During the year 2000-2001, PTFS has prepaid the
 aforesaid term loan by raising funds through other borrowings subject
 to annual review and the aforesaid deposit is now repayable by PTFS
 after these borrowings are eventually repaid or by the year 2015 (RBI
 has extended the tenure by 5 years from 2010), whichever is earlier.
 
 (11) Current Liabilities
 
 There are no amounts due to the suppliers covered under Micro, Small
 and Medium Enterprises Development Act, 2006; this information takes
 into account only those suppliers who have responded to the enquiries
 made by the Company for this purpose.
 
 (12) Foreign Currency Transactions
 
 (i) Exchange differences charged to the Profit and loss account
 includes loss on cancellation of forward exchange contracts Rs. 3.84
 crores (net) {2009-2010 Rs. 13.02 crores].
 
 (ii) The year-end foreign currency exposures that have not been hedged
 by a derivative instrument or otherwise are given below:
 
 (a) Amounts receivable in foreign currency – USD 2,649,836, EURO
 205,112, GBP 97,688 (2009-10 USD 2,340,157, EURO 340,093, GBP 114,108)
 
 (b) Amounts payable in foreign currency – USD 48,008, EURO 11,058, GBP
 1,965 (2009-10 USD 33,255, EURO 9137, CHF 2091)
 
 (iii) The Company has adopted the principles of hedge accounting as set
 out in Accounting Standard 30, ''Financial Instruments: Recognition and
 Measurement'', issued by The Institute of Chartered Accountants of
 India. Accordingly, the foreign exchange (gain)/ loss of Rs. (0.01)
 crores (2009-10 Rs. 5.48 crores) as on 31st March, 2011 on forward
 foreign exchange contracts entered into to hedge fi rm commitments and
 highly probable forecast transactions, which qualify for hedge
 accounting, has been accounted under Hedging Reserve to be ultimately
 recognised in the Profit and loss account when the forecasted
 transactions arise.
 
 (iv) Figures in brackets are the corresponding fi gures in respect of
 the previous year.
 
 (iii) The lease agreements are for a period of four years for vehicles
 and for a period of one to nine years for retail shops including
 further periods for which the Company has the option to continue the
 lease of retail shop with the condition of increase in rent.
 
 (13) Related party disclosures
 
 (a) Names of related parties and nature of relationship:
 
 Subsidiary Company: BDS Urban Infrastructure Private Limited (From 23rd
 July, 2010 to 11th March, 2011)
 
 Bombay Dyeing Real Estate Company Limited (erstwhile White Horse Real
 Estate Private Limited) up to 16th March, 2010 Associate Companies: 
 Archway Investment Company Limited
 
 Pentafil Textile Dealers Limited
 
 Scal Services Limited
 
 Bombay Dyeing Real Estate Company Limited (erstwhile White Horse Real
 Estate Private Limited) w.e.f. 17th March, 2010 Joint Venture Companies
 : PT. Five Star Textile Indonesia Proline India Limited
 L&T Bombay Developers Private Limited (Upto 29th July, 2010) Key
 Management Personnel: Mr. Ness N. Wadia - Joint Managing Director
 
 Mr. Durgesh Mehta (Joint Managing Director & CFO) w.e.f. 1st April,
 2010
 
 Mr. P.V. Kuppuswamy - Joint Managing Director (Upto 31st March, 2010).
 Entity over which Key Management Personnel exercise significant infl
 uence: KPH Dream Cricket Private Limited
 
 (14) Previous year''s figures have been regrouped where necessary.