Dear Members,
 
 The Directors are pleased to present the Eighth Annual Report and the
 Audited Accounts for the year ended March 31, 2011.
 
 Financial Results (Consolidated)                    (Rs. in lakhs)
 
 Particulars                            Year ended       Year ended
                                     March 31,2011   March 31, 2010
 
 Sales                                    1,08,188         1,07,239
  
 Profit Before Tax                         (8,812)            (388)
 
 Less:  Provision for Tax                      336              206
 
        Extraordinary Items                  (531)                -
 
 Profit after Tax                          (9,007)            (182)
 
 Balance Brought Forward from 
 last year                                  17,976           18,158
 
 Amount available for Appropriation          8,969           17,976
 
 Appropriations:
 
 Proposed Dividend                               -                -
 
 Balance carried Forward                     8,969           17,976
 
 
 Review of Operations
 
 Gokaldas Exports, on a consolidated basis, has reported a total sales
 of Rs.1,08,188 lacs in 2010-11 as against Rs.1,07,239 lacs in 2009-10
 representing a growth of 1% over 2009-10.
 
 The demand situation in the global apparel industry has not improved
 significantly during the year. Economic conditions across our major
 markets in Europe and USA continue to be relatively uncertain,
 affecting consumer confidence. Global retailers are hence cautious in
 placing orders. High volatility in raw material prices has been an
 additional cause of concern during the financial year. Consumers are
 looking for “value for money” products and global companies are
 stressing on controlling costs and reducing inventories.
 
 There has been a decline in garments export from India to the tune of
 6.2% in 2010, which reflects the weak global demand.
 
 Our Company has been able to show nominal growth in sales turnover in
 these difficult trading conditions. This has been achieved through
 initiatives of new customer acquisition and shift to higher value
 products. Besides, we adopted renewed focus on enhancing our business
 with Indian retailers.
 
 In addition to the market situation, some of the other environmental
 factors which have affected our financial performance have been
 volatile cotton prices, surge in wage rates and other operating costs
 driven by domestic inflation, reduction in export benefits and currency
 appreciation. The impact of these factors is discussed in the following
 sections.
 
 The increase in raw material cost, labour costs and other operating
 expenses have not resulted in increased product prices due to overall
 depressed demand situation, adversely affecting our margins.
 
 This unprecedented escalation in cotton prices have resulted in a
 commensurate increase in fabric prices.
 
 Appreciating Rupee has been another key factor affecting profitability
 of all exporters. The Rupee-US Dollar parity has moved in favor of the
 Rupee by 4.6% between June 2010 and March 2011. Trend of Re-USD and
 Re-Euro for past two years is given alongside.
 
 There have also been certain changes in the exports incentives given by
 the Government of India during the year.  Pursuant to this, there has
 been reduction in export benefits for the Apparel Industry. This change
 has hurt the competitiveness of the exporters in the industry vis-…-vis
 other countries.
 
 Our efforts on working capital management have been fruitful during the
 year. We have achieved a reduction of Rs. 2,832 lacs in Secured Loans,
 which has come down from Rs. 34,489 lacs as of March 31, 2010 to Rs.
 31,657 lacs as of March31, 2011. Inventory holding period has also been
 reduced by 22% from 207 days in 2009-10 to 161 days in 2010-11
 Similarly, Sundry Debtors have also come down by 13%.
 
 In April 2010, there was a fire incident in one of our warehouses
 against which we had lodged an insurance claim for Rs. 3,764 lacs. The
 Insurance Company settled this claim for Rs. 3,233 lacs, resulting in a
 one - time loss of Rs. 531 lacs in 2010-11.
 
 For the year 2011-12, we have undertaken certain key measures to
 improve our performance. Some of these are – focus on increasing share
 with existing customers and realizing better value, new customer
 acquisition, improving manufacturing efficiencies and sustaining the
 focus on tighter financial management. These initiatives along with
 improved productivity measures will help us post better results in the
 coming year.
 
 Dividend
 
 No dividend has been recommended by the Directors for the year.
 
 Subsidiary Companies
 
 As required under Accounting Standard 21, Consolidated Financial
 Statements incorporate the results of the following subsidiary
 companies.
 
 List of Subsidiaries
 
 All Colour Garments Private Limited, Deejay Trading Private Limited,
 Glamourwear Apparels Private Limited, Madhin Trading Private Limited,
 Magenta Trading Private Limited, Rafter Trading Private Limited, Rajdin
 Apparels Private Limited, Reflexion Trading Private Limited, Rishikesh
 Apparels Private Limited, Seven Hills Clothing Private Limited, SNS
 Clothing Private Limited, Vignesh Apparels Private Limited and Robot
 Systems Private Limited
 
 In terms of the specific approval granted by the Central Government
 under Section 212(8) of the Companies Act, 1956, and in terms of the
 general permission granted by the Central Government to all companies
 vide General Circular No. 3/2011 dated February 21, 2011, the Audited
 Financial Statements along with the reports of the Board of Directors
 and the Auditors pertaining to the above subsidiaries have not been
 attached to this Report. The Financial Statements of the said
 subsidiaries will be kept for inspection by any investor at the
 registered office of your Company and that of the subsidiary companies.
 
 Investors who want to have a copy of the above may write to the Company
 Secretary at the registered office.
 
 Fixed Deposits
 
 During the year under review, the Company has neither accepted nor
 renewed any deposits from public within the meaning of Sections 58A and
 58AA of the Companies Act, 1956 read with the Companies (Acceptance of
 Deposits) Rules, 1975.
 
 Corporate Governance
 
 Your Company is committed to maintaining the highest standards of
 Corporate Governance. Your Directors adhere to the standards set out by
 the Securities and Exchange Board of India''s (SEBI) Corporate
 Governance practices and accordingly have implemented all the
 stipulations prescribed. Your Company''s Corporate Governance Compliance
 Certificate dated July 27, 2011 in line with Clause 49 of the Stock
 Exchange Listing Agreement is given along with the Corporate Governance
 Report.
 
 Management Discussion and Analysis
 
 Management Discussion and Analysis Report is given separately, forming
 part of this Annual Report and is in accordance with the requirements
 laid out in Clause 49 of the Listing Agreement with Stock Exchanges.
 
 ESOP''s
 
 GEL ESOP Scheme 2010 was approved by the shareholders at the previous
 annual general meeting. Stock options are yet to be granted.
 
 Listing
 
 The equity shares of the Company are listed on the Bombay Stock
 Exchange (BSE) and National Stock Exchange (NSE). The company has paid
 the listing fees to the respective stock exchanges till date. The
 Company''s shares are tradable compulsorily in the dematerialized form
 and the Company has entered into an agreement with National Securities
 Depository Limited (NSDL) and Central Depository Services India Limited
 (CDSL) for trading in electronic form.
 
 Directors
 
 Mr Madanlal J Hinduja, Executive Chairman, stepped down from the Board
 on January 15, 2011. Mr Rajendra J Hinduja, Managing Director and Mr
 Dinesh J Hinduja, Executive Director, also stepped down from the Board
 effective March 31, 2011.
 
 Mr Gautam Chakravarti was appointed as Additional Director effective
 February 3, 2011 and as Whole-time Director & Chief Executive Officer
 effective April 1, 2011. Brief profile of Mr Gautam Chakravarti and the
 remuneration payable to him is detailed in the notice convening the
 Annual General Meeting.
 
 Mr Richard B Saldanha was appointed as Additional Director effective
 April 1, 2011 and as Non-Executive Chairman of the Board effective May
 25, 2011.
 
 Mr Arun K Thiagarajan, Mr J H Mehta and Mr Rangachary N retire by
 rotation at the ensuing Annual General Meeting and being eligible offer
 themselves for re-appointment. The detailed profile of the Directors is
 mentioned in the notice of the ensuring Annual General Meeting.
 
 Auditors
 
 The Company''s Joint Auditors, M/s S.R.  Batliboi & Co., Chartered
 Accountants and M/s Girish Murthy & Kumar Chartered Accountants hold
 office upto the conclusion of the ensuing Annual General Meeting. The
 Company has received the requisite certificate from them pursuant to
 Section 224(1B) of the Companies Act, 1956, confirming their
 eligibility for re-appointment as Auditors of the Company.
 
 Particulars of Employees
 
 In accordance with the provisions of Section 217(2A) read with
 Companies (Particulars of Employees), Rules, 1975, the names and other
 particulars of employees are set out in the Annexure to the Directors''
 Report. However, as per the provisions of Section 219(1) (b) (iv) of
 the Companies Act, 1956, the Directors'' Report is being sent to all
 members of the Company excluding the aforesaid information about the
 employees. Any Member interested in obtaining such particulars may
 write to the Company Secretary at the Registered / Corporate Office of
 the Company and the same shall be provided by the Company.
 
 Directors'' Responsibility Statement
 
 Pursuant to the requirement under Section 217 (2AA) of the Companies
 Act, 1956 with respect to the Directors Responsibility Statement, the
 Whole- time Management state that:
 
 I) In the preparation of the annual accounts for the year ended March
 31, 2011, the applicable accounting standards have been followed along
 with proper explanation relating to material departures, if any;
 
 II) They have selected such accounting policies and applied them
 consistently and made judgments and estimates that are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the Company and of its profits for the year ended March 31, 2011;
 
 III) They have taken proper and sufficient care towards the maintenance
 of adequate accounting records in accordance with the provisions of
 this Act, to safeguard the assets of the Company and to prevent and
 detect fraud and other irregularities;
 
 IV) They have prepared the financial statements for the year ended
 March 31, 2011 on a going concern basis.
 
 Conservation of Energy, Technology Absorption, Foreign Exchange
 Earnings and Outgo
 
 In pursuance of the provisions of section 217(1)(e) of the Companies
 Act, 1956 read with Rule 2 of the Companies (Disclosure of particulars
 in the Report of Board of Directors) Rules, 1988, the particulars
 relating to conservation of energy, technology absorption and foreign
 exchange earnings and outgo is given below
 
 A.  Conservation of Energy
 
 The operations of the Company are not energy intensive. However,
 wherever possible the Company strives to curtail the consumption of
 energy on continued basis.
 
 B.  Technology absorption, adaptations and innovation
 
 Not Applicable
 
 C.  Foreign Exchange Earnings and Outgo
 
 Foreign Exchange
 
     earned : Rs 89,880 lacs 
 
     Out go : Rs 17,964 lacs
 
 Acknowledgments and Appreciation
 
 Your Directors take this opportunity to thank the customers,
 shareholders, suppliers, bankers, business partners/associates,
 financial institutions and Central and State Governments for their
 consistent support and encouragement to the Company. I am sure you will
 join our Directors in conveying our sincere appreciation to all
 employees of the Company for their hard work and commitment.
 
                                            On behalf of the Board of
                                                            Directors
 
                                                   Gautam Chakravarti 
                                                       Director & CEO
 Bangalore 
 July 27, 2011