1.  Contingent Liabilities
 
 (a) Corporate Guarantee given by the company to UCO Bank, Hong Kong for
 securing trade finance limits to its step down subsidiary Norwest
 Industries Ltd, Hong Kong for HKD 280 million equivalent to
 Rs.1,626,800,000 & GBP 30 Million equivalent to Rs.2,157,900,000
 (Previous Year: HK$ 200 million equivalent to Rs.1,160,000,000 & GBP 19
 Million equivalent to Rs.1,289,530,000).
 
 (b) Corporate Guarantee given by the company to HSBC Limited, Indonesia
 for securing credit facilities to its step down subsidiary PT Norwest
 Industry, Indonesia for USD 2,500,000/- equivalent to Rs.111,625,000
 (Previous Year: USD 2,500,000/- equivalent to Rs.112,575,000).
 
 (c) Corporate Guarantee given by the company to THE CIT GROUP /
 COMMERCIAL SERVICES INC, New York for working capital and letter of
 credit facilities to its wholly owned subsidiary M/s House of Pearl
 Fashions (US) Ltd for USD 400,000 equivalent to Rs.17,860,000 (Previous
 Year: USD 400,000 equivalent to Rs.18,012,000).
 
 (d) Corporate Guarantee given by the company to HSBC for HKD 300
 Million, equivalent to Rs.1,743,000,000 for securing credit facilities
 to its step down subsidiaries Norwest Industries Ltd., Simple Approach
 Ltd. and Zamira Fashion Ltd(Previous Year:- HKD 300 Million, equivalent
 to Rs.1,740,000,000 ).
 
 (e) Corporate Guarantee given by the company to Standard Chartered
 Bank, Hong Kong for USD 16,928,000 equivalent to Rs.755,835,200 for
 securing credit facilities to its step down subsidiary Norwest
 Industries Ltd(Previous Year :USD 16,928,000 equivalent to
 Rs.762,267,840).
 
 (f) Corporate guarantee given by the company to HSBC, Bangladesh for
 BDT 889,760,000 equivalent to Rs.542,753,600 for securing various
 credit facilities to its subsidiary Norp Knit Industries Ltd (Previous
 Year: BDT 293,700,000 equivalent to Rs.193,842,000).
 
 (g) Corporate Guarantee given by the company to THE CIT GROUP /
 COMMERCIAL SERVICES INC, New York for credit facilities to its
 subsidiary Depa International Inc.  merged with House of Pearl Fashions
 (US) Ltd, a wholly owned subsidiary for USD 1,000,000 equivalent to
 Rs.44,650,000 (Previous Year: USD 6,000,000 equivalent to
 Rs. 270,180,000).  
 
 (h) Corporate Guarantee given by the company to BNP Paribas, for letter
 of credit facility to its subsidiary Norwest Industries Ltd. for USD
 6,250,000 equivalent to Rs.279,062,500 (Previous Year: USD 4,750,000
 equivalent to Rs.213,892,500).
 
 (i) Corporate Guarantee given by the company to Canara Bank, HK Branch,
 for securing various credit facilities to its subsidiary Norwest
 Industries Ltd. for USD 3,000,000 equivalent to Rs.133,950,000
 (Previous Year: USD 3,000,000 equivalent to Rs.135,090,000).
 
 (j) Corporate Guarantee given by the company to Bank of Baroda,
 Hongkong, for securing credit facilities to its step down subsidiary
 Simple Approach Ltd. for USD 4,000,000 equivalent to Rs.178,600,000
 (Previous Year: Nil ).
 
 (k) Corporate Guarantee given by the company to Bank of Baroda,
 Hongkong, for securing credit facilities to its step down subsidiary
 Norwest Industries Ltd. for USD 5,000,000 equivalent to Rs.223,250,000
 (Previous Year: Nil ).
 
 (l) Corporate Guarantee given by the company to Bank of India,
 Hongkong, for securing credit facilities to its step down subsidiary
 Simple Approach Ltd. for USD 2,500,000 equivalent to Rs.111,625,000
 (Previous Year: Nil).
 
 (m) Corporate Guarantee given by the company to Intesa Sanpaolo S.p.A,
 Hongkong, Branch for securing credit facilities to its step down
 subsidiary Norwest Industries Ltd. for USD 18,000,000 equivalent to
 Rs.803,700,000 (Previous Year: Nil)
 
 (n) Corporate Guarantee given by the company to Intesa Sanpaolo S.p.A,
 Hongkong, Branch for securing credit facilities to its step down
 subsidiary Simple Approach Ltd. for USD 3,000,000 equivalent to
 Rs.133,950,000 (Previous Year: Nil ).
 
 (o) Corporate Guarantee given by the company to Intesa Sanpaolo S.p.A,
 Hongkong, Branch for securing credit facilities to its step down
 subsidiary Zamira Fashion Ltd. for USD 3,000,000 equivalent to
 Rs.133,950,000 (Previous Year: Nil).
 
 (p) Corporate Guarantee given by the company to Intesa Sanpaolo S.p.A,
 Hongkong, Branch for securing credit facilities to its step down
 subsidiary Nor Lanka Manufactruing Ltd. for USD 6,000,000 equivalent to
 Rs.267,900,000 (Previous Year: Nil).
 
 (q) Corporate Guarantee given by the company to ICICI Bank Limited, New
 Delhi for Rs.100,000,000/- for derivative limits to its subsidiary
 Pearl Global Limited (Previous Year: Rs.100,000,000/-).
 
 (r) Corporate guarantee given by the company to HSBC for
 Rs.200,000,000/- for Import documentary credits and import deferred
 payment credits to its subsidiary Pearl Global Limited. (Previous Year:
 Rs.200,000,000/-).
 
 (s) Corporate Guarantee given by the company to Development Credit Bank
 for USD 10,000,000/- equivalent to Rs.446,500,000 for derivatives/FX
 Forward Contact to its subsidiary Pearl Global Limited (Previous Year:
 USD 10,000,000/- equivalent to Rs.  450,300,000) .
 
 (t) Corporate Guarantee given by the company to UCO Bank for
 Rs.50,000,000/- for Term Loan facilities to its Subsidiary Pearl Global
 Limited( Previous Year: Rs. 50,000,000/- both for Term loan and working
 capital facilities).
 
 (u) Corporate Guarantee given by the company to UCO Bank for
 Rs.415,000,000/- for Working Capital Credit facilities to its
 Subsidiary M/s Pearl Global Limited.( Previous Year: Rs. 415,000,000/-
 both for Term loan and working capital facilities).
 
 (v) Corporate Guarantee given by the company to Standard Chartered Bank
 for Rs.960,000,000/- for securing Fund and Non Fund Based credit
 facilities to its subsidiary Pearl Global Ltd (Previous Year:
 Rs.556,750,000/-).
 
 (w) Corporate Guarantee given by the company to Standard Chartered Bank
 to secure derivative limits sanctioned to its subsidiary Pearl Global
 Ltd. for Rs.300,000,000/- (Previous Year: Rs.300,000,000/-).
 
 (x) Corporate Guarantee given by the company to Ye s Bank for
 Rs.80,000,000/- for working capital facility to its subsidiary Pearl
 Global Ltd (Previous Year: Rs.130,000,000/-).
 
 (y) Corporate Guarantee given by the company to Ye s Bank for
 Rs.132,500,000/- for Term Loan and Corporate Loan to its subsidiary
 Pearl Global Ltd. (Previous Year: Rs.132,500,000/-).
 
 (z) Corporate Guarantee given by the company to Ye s Bank for
 Rs.100,000,000/- for Corporate Loan –II, to its subsidiary Pearl Global
 Ltd. (Previous Year: Nil).
 
 (aa) Corporate Guarantee given by the company to DhanLaxmi Bank
 Limited, New Delhi for Rs.55,000,000/- for derivative limits to its
 subsidiary Pearl Global Limited (Previous Year: Rs. Nil ).
 
 2.  a) Vehicle loans are secured against hypothecation of respective
 vehicles.
 
 b) Term loan from Axis bank is secured by equitable mortgage on
 property situated at plot no. 21/13-x, block-A, Naraina Industrial
 Area, Phase-II, New Delhi owned by promoter directors of the company
 and personal guarantee by the promoter directors.
 
 4.  Capital Commitments
 
 Estimated amount of contracts remaining to be executed on capital
 account (Net of advances) Rs. NIL/- (Previous Year Rs. NIL)
 
 9.  Employee Benefits
 
 The Company has adopted Accounting Standard 15 (revised 2005) ''Employee
 Benefits'' as issued by the Companies (Accounting Standards) Rules,2006.
 The Company has classified the various benefits provided to employees
 as under:-
 
 (i) Defined Contribution Plan
 
 The company makes contribution towards provident fund to a defined
 contribution retirement benefit plan for qualifying employees. The
 provident fund plan is operated by the Regional Provident Fund
 Commissioner and the company is required to contribute a specified
 percentage of payroll cost to the retirement benefit schemes to fund
 the benefits.  The company recognized Rs. 1,041,262 (Previous Year:
 Rs348,569) for provident fund contributions in the profit and loss
 account and Rs. Nil (Previous Year: Rs. 252,250) debited under the head
 Capital work-in-progress towards the implementation cost of SAP. The
 contributions payable to these plans by the company are at rates
 specified in the rules of the schemes.
 
 (ii) Defined Benefit Plan
 
 The present value of obligation is determine based on actuarial
 valuation using the Projected Unit Credit Method, which recognizes each
 period of service as giving rise to additional unit of employee benefit
 entitlement and measures each unit separately to build up the final
 obligations.  The obligation for leave encashment is recognized in the
 same manner as gratuity.
 
 10.  Related Party Disclosure
 
 (1) Related party disclosure as required under Accounting Standard-18
 as issued by the Companies (Accounting Standards) Rules 2006 is given
 below:
 
 a) Subsidiary Companies:
 
 Domestic
 
 Pearl Global Limited India
 
 Lerros Fashions India Ltd.  India
 
 Overseas
 
 Norp Knit Industries Limited Bangladesh
 
 House of Pearl Fashions (US) Limited, USA
 
 Multinational Textile Group Limited Mauritius
 
 Global Textiles Group Limited Mauritius
 
 Pacific Supply Chain Limited UK
 
 Zamira Fashions ( Europe) Limited UK
 
 Poeticgem Limited UK
 
 Pacific Logistics Limited UK
 
 FX Imports Company Limited UK
 
 Magic Global Fashion Ltd.  UK
 
 Poetic Knitwear Limited UK
 
 Norwest Industries Limited Hong Kong
 
 Zamira Fashion Limited Hong Kong
 
 FX Import Hongkong Ltd.  Hong Kong
 
 PG Group Limited (formerly known as Pearl Ges Ltd.) Hong Kong
 
 Pearl GES Home Group Limited Hong Kong
 
 Pearl Global Fareast Limited Hong Kong
 
 Simple Approach Limited Hong Kong
 
 Poeticgem (Canada) Limited Canada
 
 PT Norwest Industry Indonesia
 
 Pearl GES Home Group SPA, Chile
 
 Nor Delhi Manufacturing Limited (formerly known as Magic Global Fahions
 Ltd.) Hong Kong
 
 Nor Lanka Manufacturing Limited (formerly known as Poetic Hongkong)
 Hong Kong
 
 Grand Pearl Trading Limited China
 
 b) Associates: Domestic
 
 Hopp Fashions India
 
 Pearl Wears India
 
 Vastras India
 
 Little People Education Society India
 
 Pearl Retail Solutions Pvt Ltd India
 
 Deepak Seth & Sons (HUF) India
 
 Pearl Apparels Limited India
 
 Vau Apparels Pvt Ltd India
 
 Nim International Commerce Pvt. Ltd.  India
 
 Overseas
 
 Pallas Holdings Limited Mauritius
 
 SACB Holdings Limited Mauritius
 
 JSM Trading (FZE.) Dubai
 
 Lerros Moden GMBH Germany
 
 Premier Pearl Garment Joint Stock Co. Ltd.  Vietnam
 
 Superb Mind Holdings Limited Mauritius
 
 Grupo Extremo SUR S.A.  Chille
 
 Fru Holdings Ltd.  Mauritius
 
 NAFS UK
 
 c) key Management Personnel
 
 Mr. Deepak Seth Chairman
 
 Mr. Pallak Seth Vice Chairman
 
 Mr. Pulkit Seth Managing Director
 
 (II) The Following transactions were carried out with related parties
 in the ordinary course of business.
 
 15.  In view of the management, the current assets, loans and advances
 have a value on realization in the ordinary courses of business at
 least equal to the amount, at which they are stated in the Balance
 Sheet as at 31st March, 2011.
 
 16.  The company has not dealt in any derivative financial instrument
 during the year.
 
 17.  There is no reportable segment of the company in view of the
 Accounting Standard -17 ''Segment Reporting'' as issued by the Companies
 (Accounting Standards) Rules,2006.
 
 19.  During the current financial year company has disposed off entire
 investment in its subsidiary Nor Pearl Knitwear Ltd, for a total
 consideration of Rs.1034.45 Lacs as per RBI approval. This has resulted
 extra ordinary loss of Rs.292,383,045/- due to written off loans & loss
 on investment after adjusting the sales consideration of Rs.1034.45
 Lacs during the current reported year.
 
 20.  Previous year figures have been regrouped/ recasted wherever
 necessary.