1 Contingent liabilities 
 
                                                   ( Rs. in Lacs)
 
                                                 As at
                                      31st March, 2011            As at
                                                       31st March, 2010
 
 A.  Contingent liabilities not provided for : 
 
 i) Excise & Custom Duties, Sales Tax and 
 Other demands disputed by the Company.         230.75         230.30 
 
 ii) Claims not acknowledged by the Company      69.38          53.45 
 
 iii) Default Deferred Payment Guarantee 
 provided to :- 
 
 Exim Bank for securing the loans given by 
 them to RSWM International B. V.
 Netherlands.
 
 -  Outstanding Loan (Refer note No.6)             NIL       1,620.89
 
 iv) Default Deferred Payment Guarantee for 
 securing the loan taken by CTL
 Exim Bank, ICICI, IDBI, Canara Bank, SBI 
 and SBOM
 
 -  Outstanding Loan                           1047.73        2182.94
 
 {Maximum amount for which Company may be 
 liable during next 12 Months – 
 Rs 289.96 lac}
 
 v) Un-expired Letters of Credit, for which 
 counter guarantee given by the Company        4185.72         413.79
 
 vi) Counter guarantees given by the 
 Company in respect of Guarantees given by
 the Company''s Bankers.                         942.26         964.78
 
 vii) The Company has provided Guarantee in 
 favour of International Finance
 Corporation with M/s. HEG Limited on 
 Joint and several basis
 on behalf of M/s. AD Hydro Power Limited.      600.00         600.00
 
 B.  Obligations and commitments outstanding :
 
 i) Estimated value of contracts remaining to 
 be executed on Capital Account
 and not provided for                         24582.23         832.14
 
 ii)   Bills Discounted with Banks            11737.16       7,935.50
 
 C.  The export obligations against EPCG licenses have been timely
 fulfilled by the Company. The future additional export obligations
 against EPCG licences are of Rs.231.16 lac (Previous Year Rs.11,490
 lac) and are to be fulfilled within the specified period.
 
 D. The Rajasthan Government had imposed surcharge on shortfall in
 meeting Renewable Energy Obligation on the power produced from Captive
 Power plants vide their Notification dated 23.3.2007 on which stay has
 been granted by the Hon''ble High Court. The same has been challenged in
 the Hon''ble High Court of Rajasthan through Rajasthan Textiles Mills
 Association.  On the basis of opinion of the consultant that the said
 notification and amended notifications to date on RE Surcharge are
 violative of the Article 19 (1) (g) of the Constitution so far as these
 relate to Captive Power Plants, the Management does not foresee any
 possible liability on this account and hence no provision of liability
 to date Rs.2402.48 lac (Previous Year Rs.1,634.95 lac) has been made in
 the Book of Accounts.
 
 2.  Jodhpur Bench of Hon Rajasthan High Court, which had earlier in its
 interim order stayed payment of Entry Tax on the grounds of
 constitutional validity, has vide order dated 21/01/2011 modified its
 earlier order following the judgement dated 12/01/2011 of The Hon''ble
 Supreme Court of India in the case of Binani Cement Ltd''s Special Leave
 Petition and directed the Company to pay 50% of the assessed Entry Tax
 and provide solvent guarantee for the balance assessed and non-assessed
 Tax and interest thereon till the date of payment. Accordingly the
 Company has paid Rs.192.16 Lac on 01/03/2011 being 50% of assessed
 Entry Tax and provided solvent guarantee to the State Government for
 the balance amount as on 31.03.2011 of Rs.957.75 Lacs (Previous Year
 808.33) including interest of Rs.270.64 lac.
 
 3.  The Company hedges its export realisations through Foreign Exchange
 Derivative & Hedge Contracts in the normal course of business so as to
 reduce the risk of exchange fluctuations. No Foreign Exchange
 Derivative & Hedge Contracts are taken /used for trading or speculative
 purpose. Pursuant to the announcement on Accounting for Derivatives
 issued by the Institute of Chartered Accountants of India on 29th
 March, 2008 and as per Companies Accounting Policy, the Company has
 accounted for gains aggregating Rs.16.74 lac (Previous year Rs.37.78
 lac loss) during the current year, computed on mark to market basis on
 the Foreign Exchange Derivative & Hedge Contracts outstanding as on
 31st March, 2011.
 
 4.  Under the Technology Up-gradation Fund Scheme (TUFS) established by
 Government of India for Textiles, the Company has incurred an
 expenditure of Rs.95218.02 lac on various projects. The interest
 subsidy accrued for the year under this scheme is Rs.3453.83 lac
 (Previous Year Rs.3740.45 lac) which has been credited to Profit & Loss
 Account.
 
 5.  The capital subsidy under TUFS is accounted adopting Deferred
 Income Approach and is recognised in Profit & Loss Statement on a
 systematic and rational basis over useful life of the assets. A sum of
 Rs.432.67 lac up to date is therefore considered as deferred income,
 out of which, a sum of Rs.86.51 lac (including Rs.39.69 lac of prior
 period to match with the revised useful life of the Denim Plant) has
 been recognised against depreciation during the year (up to year
 Rs.175.99 lac).
 
 6.  The Company had a wholly owned overseas subsidiary viz RSWM
 International BV, incorporated as a Special Purpose Vehicle (SPV) in
 the year 2007 with an investment in the equity of Rs.277.30 lac.
 Further, loans of Rs.779.96 lac were advanced by the Company up to
 30.09.2010 in normal course of business. As authorised by Company''s
 Memorandum of Association, the Company had also given a Perpetual &
 Irrevocable Default Payment Guarantee to SPV''s lendor viz Exim Bank of
 India, against a term loan of USD3.80 million granted to RSWM
 International BV. The said SPV, RSWM International BV had made a
 strategic investment in the 50% equity of RSWM SISA, Spain with whom
 the Company had entered into the JV Agreement on 13th April, 2007.
 
 Business with JV RSWM SISA was discontinued due to continued losses on
 09.06.2009. Company''s SPV RSWM International BV exited out of JV by
 selling its share to JV Partner in RSWM SISA on 23.11.2009.
 Consequently RSWM International BV was left with no Business activity
 and it applied for liquidation of Company.
 
 Exim Bank devolved bank guarantee given by the Company for the balance
 amount of loan outstanding as on 28.10.2010 amounting to Rs.1,442,05
 lac, which as a normal business activity, was honoured by the Company
 on 29.10.2010. The same being a trading loss incidental to Company''s
 business has been charged off during the year.
 
 Further, in line with scheme of arrangement by RSWM International BV
 with its creditors, RSWM International BV remitted Euro 230,000
 equivalent to Rs.139.79 lac to the Company in full and final settlement
 of loans due and balance amount of Rs.640.17 lac being irrecoverable
 has been written off as normal trading loss.
 
 On approval of Liquidation of RSWM International BV by appropriate
 authority on 04.02.2011, the Company received Euro 3,419.19 equivalent
 to Rs.2.13 lac against equity share capital held by it. Consequently,
 investment loss on liquidation of RSWM International, amounting to
 Rs.275.17 lac also has been written off this year as normal business
 practice.
 
 Consequently provision of Rs.571.82 lac for doubtful loans and advances
 and Rs.277.30 lac for diminution in the value of investment made in
 previous year have been written back as no longer required.
 
 7. The loans & advances, debtors and other current assets are reviewed
 annually and their value in the ordinary course of business will not be
 less than the amount at which they are stated in the Balance Sheet as
 assessed by the Management, However, balance confirmation from parties
 are under process.
 
 8. In view of legal opinion and various reliefs available under Income
 Tax Act, 1961, provision for taxation has been considered adequate.
 
 9. Adjustment relating to previous year includes Expenses Rs.4.38 lac
 and Income Rs.NIL lac (Previous Year Expenses Rs.10.16 lac and Income
 Rs.0.40 lac).
 
 10. The figures for the previous year have been regrouped and / or
 rearranged wherever found necessary to make these comparable with those
 of the current year.
 
 C.  DISCLOSURES
 
 1.  Segment reporting
 
 The Company''s operations predominantly relates to manufacturing of Yarn
 and Fabric & on the basis of assessment of the risk and return
 differential in terms of AS-17, the Company has identified Yarn and
 Fabric & Denim as primary reportable business segments. Further the
 geographical segments have been considered as secondary segments and
 bifurcated into India, Europe, Middle East, America and Other
 Countries.
 
 The accounting policy in respect of Segments is in conformity with the
 accounting policies of the enterprise as a whole. The inter segment
 transfers are accounted at the prevailing market prices charged to
 unaffiliated customers for similar goods. These transfers are
 eliminated in consolidation.
 
 The revenue and expenditure in relation to the respective segments have
 been identified and allocated to the extent possible. Other items i.e.
 extraordinary items, Loss /Profit on sale of investments and foreign
 currency transactions, corporate office expenses, etc.  not allocable
 to specific segments are being disclosed separately as unallocated and
 adjusted directly against the Total Income of the Company.
 
 4.  Related party
 
 a) Enterprises that directly or indirectly through one or more
 intermediaries, control or were controlled by or are under common
 control with the reporting enterprise (this includes holding companies,
 subsidiaries and fellow subsidiaries).
 
 I) Cheslind Textiles Limited.
 
 II) RSWM International B.V. (Since liquidated on 04/02/2011)
 
 b) Associate None
 
 c) Individuals owning directly or indirectly, an interest in the voting
 power of the reporting enterprise that gives them control or
 significant influence over the enterprise, and relatives of any such
 individual.
 
 None
 
 d) Key Management Personnel and their relatives
 
 1) Shri L.N. Jhunjhunwala
 
 2) Shri Ravi Jhunjhunwala
 
 3) Shri Shekhar Agarwal
 
 4) Shri Arun Churiwal
 
 5) Shri J. C. Laddha
 
 e) Enterprises over which any person described in (c) or (d) is able to
 exercise significant influence.
 
 S. No Company''s Name
 
 01.  A.D. Hydro Power Ltd
 
 02.  Agarwal Finestate Pvt. Ltd
 
 03.  Bagrodia Investment & Finlease Pvt. Ltd.
 
 04.  Bhilwara Energy Ltd
 
 05.  Bhilwara Scribe Pvt. Ltd
 
 06.  Bhilwara Software Pvt. Ltd
 
 07 Bhilwara Technical Textiles Ltd.
 
 08.  BMD Private Ltd
 
 09 BSL Ltd
 
 10.  Deepak Knits Private Ltd
 
 11.  Diplomat Leasing Pvt. Ltd.
 
 12.  Essay Marketing Co. Ltd
 
 13.  Expert Fabric & Textiles Pvt. Ltd.
 
 14.  Ganga Yamuna Auto Pvt. Ltd.
 
 15.  Giltedged India Securities Ltd
 
 16.  HEG Limited
 
 17.  Indo Canadian Consultancy Services Ltd
 
 18.  Investors India Ltd
 
 19.  Jagur Finvest Pvt. Ltd.  
 
 20 Jyoti Knits Pvt. Ltd.
 
 21.  Kalati Holding Private Ltd.
 
 22.  LNJ Financial Services Ltd.
 
 23.  Malana Power Company Ltd
 
 24.  Maral Overseas Ltd
 
 25.  Mayur Knits Pvt. Ltd
 
 26.  Raghav Commercial Ltd
 
 27.  Raghav Knits & Textiles Private Ltd.
 
 28.  Ramkant Sales & Services Pvt. Ltd
 
 29.  Shashi Commercial Co. Ltd.
 
 30.  Shree Vardhman Stock Holding Pvt. Ltd
 
 31.  Sudiva Spinners Pvt. Ltd
 
 32.  USS Investment & Finlease Pvt. Ltd
 
 5.  Jointly controlled assets
 
 The Company jointly owns 50% share in a building ''Bhilwara Bhawan'' at
 New Delhi with M/s. HEG Limited. The aggregate amount of the Assets,
 Liabilities, Income and Expenditure has been recognised in the
 respective heads of the financial statements.
 
 vi) There is no amount included in the fair value of plan assets for
 Company''s own financial instruments and property occupied by or other
 assets used by the Company.
 
 The estimates of future salary increase considered in actuarial
 valuation, take account of: inflation, seniority promotion and other
 relevant factors, such as supply and demand in the employment market.
 The above information is certified by the Actuary. The estimate of
 contribution for next year as per actuarial valuation is as under:- 
 
 a) Gratuity - Rs.424.85 lac
 
 b) Earned Leave - Rs.65.25 lac
 
 viii)The overall expected rate of return on assets is assumed based on
 the market prices prevailing on that date over the accounting period.
 The Company is having approved Gratuity Trust and Leave Encashment
 Scheme, which is having Insurer Managed Fund.  The description of the
 Insurance Policies are ICICI Pru Group Gratuity Platinum Policy and
 Employees Group Leave Encashment- cum-Life Assurance of Life Insurance
 Corporation of India.
 
 The Guidance Note on Implementation of AS-15 (Revised), Employee
 Benefits issued by the ICAI states that Provident Fund set up the
 employers, which requires interest shortfall to be met by the employer,
 needs to be treated as defined benefits plan.  The Company set up
 Provident Fund does not have existing deficit of interest shortfall.
 With regards to future obligation arising due to interest shortfall
 (i.e. government interest to be paid on the Provident Fund Scheme
 exceeding rate of interest earned on investment) pending issuance of
 the Guidance Note from Actuarial Society of India, the Company''s
 actuary has expressed his inability to reliably measure the Provident
 Fund liability.