1.
 
                                                As at        As at
                                           31st March,  31st March, 
                                                 2011         2010
                                               (Rs in       (Rs in 
                                                Lacs)        lacs)
 
 b) Contingent Liabilities :
 
 (i) Guarantees issued by banks              1,316.07     1,108.84
 
 (ii) Letters of Credit                         76.05       526.68
 
 (ii) Bills discounted with banks 
 (since realized)                            3,512.80       989.77 
 
 (iv) Claims against the Company not 
 acknowledged as debts
 
 - Income Tax & Wealth Tax                     140.49        48.66
 
 - Sales Tax / VAT                               5.99         3.99
 
 - Excise & Service Tax                      2,769.16     2,205.70
 
 - Other claims                                620.00       736.91 
 
 (v) Corporate guarantee to Bank on 
 behalf of subsidiaries of the Company      45,192.84    63,298.69 
 
 (vi) Premium on redemption of Foreign 
 Currency Convertible Bonds                         -     5,134.80
 
 2. In Accordance with the Scheme of Arrangement duly approved by Hon''ble
 High Court of Gujarat vide its order dated 30th November 2009, the
 Company has taken following effects in the current financial statements
 :- 
 
 a) Gains realised /(premium) paid on account of buyback/redemption
 and cancellation of 2,900 (Previous year 3,900) Foreign Currency
 Convertible Bonds (FCCBs) of USD 10,000 each at discount /(premium)
 amounting to (Rs 926.81 Lacs) (Previous year Rs 2357.36 Lacs) has been
 transferred to Business Development Reserve Account in accordance with
 the Scheme.
 
 b) In accordance with the aforesaid Scheme, goodwill arising on
 amalgamation or acquisition or consolidation of financials statements
 of subsidiaries and which requires amortisation or impairment, any
 unrealizable assets whether fixed or current or tangible or intangible
 of the company, any diminution/write off in the value of the
 investments in its subsidiaries; whether in India or overseas, interest
 and other financial charges paid or payable on borrowings for
 subsidiaries by the company or by its subsidiaries or borrowings
 guaranteed by the company, mark to market adjustment on derivative
 instruments, currency swaps expenses, all the expenses / costs incurred
 in carrying out and implementing this Scheme, Integration expenses like
 plant shifting / shutting down, expenses arising on voluntary
 retirement offered to the employees of acquired companies, expenses for
 suit for bankruptcy including costs associated with existing projects /
 subsidiaries / divisions in part and / or whole by the Transferee
 Company and any additional depreciation on account of any upward
 revaluation of assets are to be charged to Business Development Reserve
 Account.
 
 Accordingly Rs 2654.45 Lacs (previous year Rs 4,242.70 Lacs) has been
 charged to Business Development Reserve on account of diminution in the
 value investments in and loans & advances to and receivables from
 subsidiaries. Any further impairment arising out of such diminution
 shall be accounted for in subsequent years upon reasonable certainty
 that the same is non realisable and shall be charged to Business
 Development Reserve until such reserves exists. Further additional
 depreciation arising out of revaluation amounting to Rs 1936.95 Lacs
 (Previous year Rs 1,936.95 Lacs) has been charged to the Business
 Development Reserve.
 
 c) As per the Scheme, a sum of Rs 18,475.11 Lacs (Previous year Rs
 16,622.24 Lacs) pertaining to receivables from subsidiaries have been
 written off and adjusted against General Reserve.
 
 d) As per the Scheme, the Profit and Loss Account Balance as appearing
 in the Balance Sheet of the Company as on 31st March 2010 shall be in
 part or full, without any further act, instrument or deed, stand
 re-organised and be appropriated to the General Reserve, as may be
 considered appropriate by the management in the interest of the
 company. Accordingly Rs 17,500.00 Lacs (Previous year Rs 15,000 Lacs)
 has been transferred from Profit and Loss Balance to General Reserve
 Account.
 
 3. Provision for taxation includes Rs 10.00 Lacs (previous year Rs 12.00
 Lacs) for Wealth Tax .
 
 4. The following changes have taken place during the year with regard to
 Subsidiary Companies
 
 b) Textile & Design Limited UK, subsidiary of the company which had
 filed for administration during 2008-09 is under Liquidation since 28th
 September, 2009.
 
 5. Unquoted investments in subsidiary companies are of long term
 strategic value in the opinion of the management. Except for as
 adjusted in the financial statements, the current diminution in the
 value of these investments is temporary in nature considering the
 inherent value and nature of investee''s business proposal and hence no
 provision is required.
 
 6. Rosebys Interiors India Limited, a subsidiary, was incorporated with
 a view to separately set up home textiles retail segment and with an
 the intention to divest ownership and control in the near future. Hence
 such investment is classified as a current investment.  Management is
 actively looking at divestment opportunity and has accordingly engaged
 a Merchant Banking Firm to achieve its objective of divestment.
 
 8. The value of closing stock of Finished Goods includes excise duty not
 paid Rs 75.16 Lacs (previous year Rs 36.65 Lacs). The value of Lignite
 at mines includes excise duty, royalty & clean energy cess of Rs 19.60
 Lacs (previous year Rs 0.74 Lacs) on the closing stock. The Value of
 Salt at Salt Fields includes Cess & Royalty of Rs 15.11 Lacs (previous
 year Rs 38.95 Lacs) on Closing Stock. This has however, no impact on
 the profit for the year.
 
 9. Prior Period Item of Rs 64.29 Lacs is on account of reversal of
 Excess provision for Wealth Tax and expenses.
 
 10. Loans & Advances includes Rs 7,524.94 Lacs (previous year Rs 7348.08
 Lacs) paid as advance for purchase of materials and services
 outstanding for more than six months and considered good.
 
 11. As per Accounting Standard-15 Employee Benefits, the disclosures
 of Employee Benefits as defined in the Accounting Standard are given
 below :
 
 The Company''s Provident Fund is exempted under section 17 of Employees''
 Provident Fund and Miscellaneous Provision Act, 1952.  Conditions for
 grant of exemption stipulate that the employer shall make good,
 deficiency if any, in the interest rate declared by the trust vis-à-vis
 statutory rate.
 
 Defined Benefit Plan
 
 Gratuity (Funded)
 
 The employees'' gratuity fund scheme managed by a Trust is a defined
 benefit plan. The present value of the obligation is determined based
 on actuarial valuation using the Projected Unit Credit Method, which
 recognises each year of service as giving rise to additional unit of
 employee benefit entitlement and measures each unit separately to build
 up the final obligation.
 
 Leave Encashment (Unfunded)
 
 The Company recognises the leave encashment expenses in the Profit &
 Loss Account based on actuarial valuation.
 
 12. a. Related Party Transactions Subsidiaries :
 
 Colwell & Salmon Communications Inc.
 
 Indian Britain B.V.
 
 Indian England N.V.
 
 Indian Wales N.V.
 
 GHCL Inc.
 
 GHCL International Inc.
 
 Dan River Properties LLC
 
 Grace Home Fashions LLC
 
 GHCL Rosebys Limited
 
 Textile & Design Limited
 
 Rosebys UK Limited
 
 S C GHCL Upsom SA
 
 Rosebys Interiors India Limited
 
 Fabient Textile Limited
 
 Rosebys International Limited
 
 Teliforce Holding India Limited
 
 Old Apparel Inc (Dissolved as at 7th April 2010)
 
 Old Apparel Properties Inc. (Dissolved as at 7th April 2010)
 
 Textile & Design (No.3) (Dissolved as at 22nd June 2010)
 
 Dan River Inc. (Dissolved as at 10th September 2010)
 
 Dan River International Limited (Dissolved as at 10th September 2010)
 
 Dan River Factory Stores Inc. (Dissolved as at 10th September 2010)
 
 The Bibb Company LLC (Dissolved as at 10th September 2010)
 
 Fabient Global Limited (Dissolved as at 31st December 2010)
 
 
 b. Key Management Personnel:
 
 Mr. R. S. Jalan, Managing Director
 
 Mr. Tej Malhotra, Sr. Executive Director - Operations
 
 Mr. Raman Chopra, Executive Director - Finance
 
 
 c. Relative of Key Management Personnel:
 
 Mrs. Bharti Chopra, w/o Mr. Raman Chopra
 
 13. Deferred Revenue Expenditure
 
 Deferred Revenue Expenditure comprises of carrying amount as per
 Accounting Standard - 26 on Intangible Assets issued by The Institute
 of Chartered Accountants of India.
 
 Voluntary Retirement Scheme Expenses
 
 Compensation under the Company''s voluntary retirement scheme
 paid/provided is being written off equally over a period of three
 years.
 
 14. Intangible Assets
 
 Intangible Asset, meeting the definition as per the provisions of
 Accounting Standard - 26 Intangible Assets issued by The Institute of
 Chartered Accountants of India, comprises of :
 
 a. Salt Pans
 
 Expenditure on the development of salt pans is being written off over a
 period of five years.
 
 b. Software
 
 Expenditure on purchased software, ERP System and IT related expenses
 is being written off over a period of three years.
 
 15. Impairment of Assets
 
 In pursuance of Accounting Standard - 28 - Impairment of Assets issued
 by the Institute of Chartered Accountants of India, the Company has
 reviewed its carrying cost of assets with value in use (determined
 based on future earnings) / net selling price (determined based on
 valuation). Based on such review, management has provided for an
 appropriate impairment of assets.
 
 16. Category-wise quantitative data about derivative instruments that
 are outstanding are disclosed as per the requirement of Accounting
 Standard - 30 issued by the Institute of Chartered Accountants of
 India.
 
 b) The Company entered the derivative instruments to hedge the foreign
 currency risk of fluctuation and protect interest rate risk and not for
 speculation purposes. Mark to Market profit on outstanding derivatives
 instruments as on 31st March 2011 stood Rs 151.62.  lacs (Previous Year
 loss Rs 511.34 lacs) arising from hedging transactions by the company
 for its foreign currency related exposures.  The company has not taken
 credit for the profit on mark to market basis during the year.Since the
 same would considered on maturity of the contracts.
 
 17. The shareholders in their Extra Ordinary General Meeting held on
 19th March, 2008 had approved the Employees Stock Option Scheme (ESOS
 2008). Accordingly, the Employees Stock Option granted pursuant to ESOS
 2006 (Series - 1) had been cancelled and equivalent number of options
 were granted by the compensation committee meeting held on 24th March,
 2008. Under ESOS 2008 the compensation committee has assured a minimum
 price appreciation guarantee @ 20% on the Exercise Price i.e. Rs 76.95
 per share i.e.  the latest available closing price prior to the date of
 grant of options i.e. 24th March, 2008. Company has made a appropriate
 provison for a same during the year.
 
 As per SEBI (ESOS & ESPS) Guidelines 1999 the Employees Stock Option
 Scheme is administered by the registered Trust named GHCL Employees
 Stock Option Trust (ESOS Trust). The Company had advanced interest free
 loan of Rs 6,403.20 Lacs (Previous year 6,430.10 Lacs) to the Trust for
 the purpose of purchased of shares from the open market for allotment
 of shares to the eligible employees upon exercising their option.
 
 The current market value of the shares held by ESOS Trust is lower than
 the cost of acquisition of these shares by Rs 5,395 Lacs which is on
 account of market volatility. The impact of fall in market value, if
 any would be appropriately considered by the company in its profit and
 loss account at the time of exercise of Options by the eligible
 employees. As per ESOS scheme, 15, 65,000 option have been vested with
 the eliglible empolyees March 24th 2010. However none of the employees
 has exercised the option during the year ended 31 March 2011.
 
 The total number of shares purchased by ESOS Trust was 4,995,386
 shares. Of these, 1,579,922 shares were illegally sold by a party
 against which ESOS trust has initiated legal proceedings and has got a
 favorable award from the Court. Additionally, ESOS Trust had
 taken a loan of Rs 1,057.00 Lacs from various companies and had created
 a third-party pledge of 2,068,000 shares on behalf of these lender
 companies. The lender companies could not fulfill their obligations
 toward the aforesaid third parties and consequently the pledge was
 invoked by these parties. ESOS trust got a favorable arbitration award
 against the lender companies whereby the lender companies would restore
 2,068,000 shares in favour of ESOS Trust upon ESOS trust repaying their
 loan of Rs 967.00 Lacs.
 
 The details as per regulation 12 of SEBI (ESOS & ESPS) Guidelines 1999
 are as follows:
 
 Particulars                   Details
 
 a) No of Options granted      16,55,000 (Each option is equivalent 
                               to one equity share on exercise of 
                               option)
 
 b) Pricing Formula            Rs 76.95 (Market Price i.e. the latest 
                               available closing price prior to the 
                               date of grant of options)
 
 c) Options Vested             15,65,000 (Vesting period is two years 
                               from the date of grant i.e. March 24, 
                               2008 to March 24, 2010)
 
 d) Options Exercised          Nil
 
 e) Total Number of shares 
 arising as a result of 
 exercise of options           Nil
 
 f) Option Lapsed              Nil
 
 g) Variation of Terms of 
 Options                       Nil 
 
 h) Money realized by 
 exercise of options           Nil
 
 i) Total Number of Options    16,55,000
 
 j) Number of options 
 lapsed for 5 employees 
 left/retired during/earlier   90,000 year
 
 k) Total Number of Options 
 in force as at 31st March, 
 2011                          1,565,000
 
 l) Number of employees to 
 whom options are granted      33
 
 (i) Senior Managerial person at the time of grant of option
 
 Name                  No. of      Name              No. of
                      Options                       Options
                      Granted                       Granted
 
 Mr. R.S. Jalan       200,000      Mr. BRD           75,000
                                   Krishnamoorthy
 
 Mr. Tej Malhotra     125,000      Mr. R S Pandey    75,000
 
 Mr. Raman Chopra     100,000      Mr. N N Radia     75,000
 
 Mr. Sunil Bhatnagar  100,000      Mr. M             75,000
                                   Sivabalasubra
                                   maniun
   
 Mr. K V Rajendran    100,000      Mr. Neeraj Jalan  75,000
 
 Mr. Nikhil Sen        75,000
 
 (ii) Any other employee who receives a grant in     None
 any one year of options amounting to 5% or more 
 of option granted during that year
 
 (iii) Identified employees who where granted        None
 options, during any one year, equal to or 
 exceeding 1% of the issued capital (excluding
 outstanding warrants and conversions) of the 
 Company at the time of grant.
 
 m) Diluted Earning Per Share (EPS) pursuant         Not Applicable
 to issue of shares on  exercise of option 
 calculated in accordance with Accounting
 Standard (AS) 20 Earning Per Share
 
 n) Where the Company has calculated the             Not Applicable
 employee compensation cost using the 
 intrinsic value of the stock options, 
 the difference between the employee 
 compensation cost so computed and the
 employee compensation cost that shall have 
 been recognized if it had used the fair value 
 of the options, shall be disclosed. The impact 
 of this difference on profits and on EPS of 
 the company shall also be disclosed.
 
 o) Weighted Average exercise prices and weighted    Not Applicable 
 average fair values of options shall be disclosed 
 separately for options whose exercise price 
 either equals or exceeds or is less than the
 market price of the stock.
 
 p) A description of the method and significant      Options are
 assumptions used during                             granted                   
 the year to estimate the fair values of options,    at Market
 including the following weighted average            price
 information :
 
 Risk - Free interest Rate                           Not Applicable
 
 Expected Life                                       Not Applicable
 
 Expected Volatility                                 Not Applicable
 
 Expected Dividends                                  Not Applicable
 
 The price of the underlying share in the 
 market at the time of grant                         Rs 76.95 per  
 of option                                           share
 
 18. Subsequent to the Balance Sheet date, GHCL Upsom, Romania, a step
 down subsidiary of the Company, the plant of which was lying closed
 since January 2010 due to impending gas issues, has been put under
 administration on 8th June, 2011. The Company is in dialogue with
 Bankers and government agencies to work out a feasible re-organisation
 plan.
 
 19 Previous year figures have been regrouped and reclassified wherever
 necessary.