1.  Contingent Liabilities:
 
 a.  Guarantees:
 
                                                  ( Rs. in lacs)
 
 Particulars                                As at 
                                          31.03.2011      As at 
                                                        31.03.2010
 
 i) In respect of concessional custom 
 duty availed under EPCG Scheme              632.31      1,431.16
 (Covered by bank guarantee)
 
 ii) Guarantees extended by the banks 
 based on the Company''s counter            3,449.78      2,488.77
 guarantees     
 
 iii) Corporate Guarantee extended by 
 the Company to the lenders of Shree      27,032.00     27,218.00
 Maheshwar Hydel Power Corporation 
 Limited            
 
 iv) Corporate Guarantees given to the 
 Lenders of Reid & Taylor (India)         71,217.05     47,891.42
 Ltd. & SKNL International B.V.     
 
 v) Corporate Guarantees given to the 
 Lenders of Brandhouse Retails Ltd.       18,045.00     18,045.00
 
 c.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advance), as certified by the
 management is Rs. 2,298.95 lacs (Previous Year Rs. 4,212.20 lacs).
 
 2. (a) In terms of the approval of the CDR EG, as per their letter
 dated 12th September 2008, for the exit of the Company from the
 Corporate Debt restructuring, the Company has made full and final
 payments to all the lenders and there is no outstanding on this account
 as at the balance sheet date.
 
 (b) The financial costs incurred by the Company for the period up to the
 year 2008-09, during the Restructuring period and the costs incurred in
 connection with the exit of the Company from the CDR are carried under
 the head Restructured Financial Costs and amortized over the
 repayment period till the year 2020. Such Restructured Financial
 Costs net of amortization, is Rs. 14,310.31 lacs (Previous Year Rs.
 15,906.57 lacs) are shown in Schedule ''F'' under Loans and Advances
 and Rs. 1,596.27 lacs charged to Profit & loss account during the year.
 
 (c) Zero Coupon Redeemable Preference Shares amounting to Rs. 4,626.43
 lacs though fully settled by the Company as per the Corporate Debt
 Restructuring exit approval by keeping in Fixed Deposit with the
 lenders an amount equivalent to the Net Present Value of such
 Preference Shares continued to be shown as Preference Shares not
 redeemed and the amount of such Fixed Deposits which are Rs. 2,453.93
 lacs (Previous Year Rs. 2,241.44 lacs), assigned to the lenders,
 continue on the assets side.
 
 3.  Investment held in the shares of Subsidiary companies being long
 term and strategic in nature is stated at cost of acquisition and no
 adjustment in respect of appreciation / depreciation of such
 investments has been made in the accounts.
 
 4.  In the opinion of the management the current assets and loans and
 advances have a value on realisation in the ordinary course of business
 at least, equal to the amount at which they are stated.
 
 5.  Sundry debtors, loans and advances including capital advances and
 sundry creditors are subject to confrmations, reconciliation and
 consequential adjustment, if any.
 
 6.  The Company has issued 2% Foreign Currency Convertible Bonds in
 April, 2006, amounting to US$ 50 million ( Rs. 22,335 lacs) due in
 April 2011. Out of this, FCCB of US $ 41 million has been converted in
 to equity shares in earlier years and during the year the Company has
 converted the balance FCCBs of US $ 9 million into 70,95,789 equity
 shares of Rs. 10/- each at a price of Rs. 57/- per share (including
 premium of Rs. 47/- per equity share) on 11th March 2011.
 
 7.  (a) The Company has placed with Qualified Institutional Buyers
 (QIBs) 2,89,43,750 equity shares of Rs. 10/- each at a price of Rs.
 80/- per share (including premium of Rs. 70/- per equity share)
 aggregating to Rs. 23,155 lacs in 20th September, 2010.
 
 (b) The Company has incurred Rs. 1,031.80 lacs towards legal fees,
 professional fees, merchant bankers fees and other related expenses
 towards issue of equity shares to QIBs. This shares issue expenses has
 been written off against Securities Premium.
 
 8.  During the year the Company has received Rs. 4,021.04 lacs from
 N''Essence Holdings Ltd., a promoter group Company, being the balance
 75% of the subscription amount towards 1,24,25,000 nos. of warrants of
 Rs. 43.15 each aggregating Rs. 5,361 lacs with an option to convert
 into equal number of Equity shares of Rs. 10/- each at a premium of Rs.
 33.15 per share within 18 months from the date of allotment, which was
 issued on preferential basis and allotted, in its meeting held on 31st
 October, 2009. The investor has opted for the conversion of above
 Equity warrants and the Company has allotted 1,24,25,000 nos. of Equity
 Shares of Rs. 10/- each at a premium of Rs. 33.15 per share on 3rd
 March, 2011 against receipt of full amount.
 
 9.  The Board of Directors has issued and allotted, in its meeting
 held on 15th June,2010, 1,24,25,000 nos. of warrants of Rs. 64.53 each
 aggregating Rs. 8,017.85 lacs to Sansar Exim Pvt. Ltd., a promoter
 group Company on a preferential basis, with an option to convert into
 equal number of Equity shares of Rs. 10/- each at a premium of Rs.
 54.53 per share within 18 months from the date of allotment. The
 Company has received Rs. 3,254.46 lacs being the subscription amount.
 
 10.  During the year , the Company has redeemed preference shares
 aggregating to Rs. 2,404.84 lacs (Previous year Rs. 1,056.08 lacs).
 Further, the Company has allotted equity shares aggregating to Rs.
 4,846.46 lacs, hence provision for Capital Redemption Reserve (CRR) on
 account of redemption of preference shares not made.
 
 11.  The Company has issued 3,04,50,000 Non-Convertible Debentures
 (NCDs) of Rs. 100/- each i.e. aggregating to Rs. 30,450 lacs to India
 Debt Management Private Limited on 27th June, 2007. The Company has
 redeemed 1,53,71,195 NCDs along with the redemption premium of Rs.
 4,008.63 lacs on 1st October, 2009. During the year Rs. 950.45 lacs
 (Previous Year Rs. 225.15 lacs) is transferred to Debenture Redemption
 reserve. The Company has provided Rs. 786.38 lacs (Previous Year Rs.
 2,978.70 lacs) towards the redemption premium on the above NCDs from
 the Securities Premium Account. The amount of Debenture Redemption
 Reserve as on 31st March, 2011 is Rs. 4,550.60 lacs (Previous Year Rs.
 3,600.15 lacs) towards the balance NCDs.
 
 12.  Payment against supplies from Micro Small and Medium Enterprises
 (MSME) and ancillary undertakings are made in accordance with the
 agreed credit terms and to the extent ascertained from available
 information. The Company does not have any MSME creditors beyond the
 stipulated credit period during the year.
 
 13.  (a) Deferred Tax Liability (Net)
 
 During the year the Company has computed its Deferred Tax Asset /
 Liability (DTL) in accordance with Accounting Standard-22 Accounting
 for Taxes on Income and accordingly a Deferred Tax (Liability) of Rs.
 985.83 lacs as on 31st March, 2011 has been provided. Thereby total DTL
 aggregating to Rs. 2,692.35 as on 31st March, 2011.
 
 (b) MAT Credit
 
 During the year The Company has accounted the MAT credit of earlier
 years amounting to Rs. 3,564.55 lacs and from this utilised Rs.
 1,191.20 lacs. The balance of Rs. 2,373.35 lacs has been carried
 forward under MAT Credit entitlement under loans and advances schedule.
 
 14.  The Company is engaged in manufacturing (in house and outsourced)
 fabrics, ready to wear garments and home textiles.  Considering the
 overall nature, the management is of the opinion that the entire
 operation of the Company falls under one business segment i.e. Textiles
 and as such there are no separate reportable business segments for the
 purpose of disclosures as required under Accounting Standard-17
 Segment Reporting.
 
 15.  Based on the internal estimates and assessments, the management is
 of the opinion that there is no impairment in relation to its assets
 and hence no provision is considered necessary.
 
 16.  Related parties Disclosures required under Accounting Standard 18
 –Related Party Transactions (a) Related Parties
 
 Sr.  Name of the Related Party Relationship
 
 No.
 
 1.  Reid & Taylor (India) Limited Subsidiary
 
 2.  Brandhouse Retails Limited
 
 3.  Brandhouse Oviesse Limited
 
 4.  S. Kumars Enterprises (Synfabs) Limited
 
 5.  S. Kumars Textiles Limited
 
 6.  N''Essence Holdings Limited
 
 7.  Rosewood Holdings Pvt. Limited
 
 8.  Anjaneya Holdings Pvt. Limited (nee Anjani Finvest Pvt. Ltd)
 
 Enterprises over which Key Managerial Personnel are able to exercise
 significant influence
 
 9.  Verve Properties & Investment Pvt. Limited
 
 10.  Ingenious Finance & Investment Pvt. Limited
 
 11.  Natty Finance & Investment Pvt. Limited
 
 12.  S. K. Worsteds Pvt. Limited
 
 13.  Tulja Enterprises Pvt. Limited
 
 14.  Sansar Exim Pvt. Limited
 
 15.  Chamundeshwari Mercantile Pvt Limited
 
 16.  Maverick Mercantile Pvt Limited
 
 17.  Anjaneya Foundation
 
 18.  SKNL Foundation
 
 19.  Belmonte Retails Limited Wholly Owned Subsidiary (nee Belmonte
 Lifestyles Ltd.)
 
 20.  SKNL International B.V Wholly Owned Subsidiary
 
 21.  SKNL Europe B.V.  Wholly Owned Subsidiary
 
 22.  SKNL Italy S.p.A.  Wholly Owned Subsidiary
 
 23.  SKNL Global Holdings B.V Wholly Owned Subsidiary of SKNL
 International B.V.
 
 24.  SKNL North America B.V.  Wholly Owned Subsidiary of SKNL Global
 Holdings B.V.
 
 25.  SKNL (U. K.) Ltd.  Subsidiary of SKNL Global Holdings B.V.
 
 26.  Global Apparel (US) Ltd.  Wholly Owned Subsidiary of SKNL (U.K.)
 Ltd.
 
 27.  Global Apparel (France) Ltd.  Wholly Owned Subsidiary of SKNL
 (U.K.) Ltd.
 
 28.  7172931 Canada Ltd.  Wholly Owned Subsidiary of SKNL (U.K.) Ltd.
 
 29.  Global Apparel (Hong Kong) Ltd.  Wholly Owned Subsidiary of SKNL
 (U.K.) Ltd.
 
 30.  Leggiuno S.p.A.  Wholly Owned Subsidiary of SKNL Italy S.p.A.
 
 31.  Marling & Evans Ltd.  Subsidiary of Leggiuno S.p.A.
 
 32.  Remala Trading B.V.  Subsidiary of SKNL North America B.V.
 
 33.  Coppley Corp.  Wholly Owned Subsidiary of Remala Trading B.V.
 
 34.  HMX Poland sp. Z.o.o Wholly Owned Subsidiary of Remala Trading
 B.V.
 
 35.  HMX Acquisition Corp.  Wholly Owned Subsidiary of HMX Poland sp
 Z.o.o
 
 36.  HMX Des Plaines LLC Wholly Owned Subsidiary of HMX Acquisition
 Corp.
 
 37.  Quartet Real Estate LLC Wholly Owned Subsidiary of HMX Acquisition
 Corp.
 
 38.  HMX LLC Wholly Owned Subsidiary of HMX Acquisition Corp.
 
 39.  HMX DTC Co.  Wholly Owned Subsidiary of HMX Acquisition Corp.
 
 (b) Key Management Personnel
 
 Shri Nitin S. Kasliwal – Vice Chairman & Managing Director 
 
 Shri Anil Kumar Channa – Deputy Managing Director
 
 17.  Quantitative Information for the year ended on 31st March, 2011.
 
 a) Licensed capacity: Not applicable
 
 b) Installed capacity:
 
 i) Spinning: 38,564 Spindles (Previous Year 38,564 Spindles)
 
 ii) Weaving: 344.13 Lacs mtrs p.a. (Previous Year 344.13 Lacs mtrs.)
 (As certified by the Management, being a technical matter)
 
 iii) Apparels: 11.4 Lacs nos. p.a. (Ready-to-wear Garments) (Previous
 Year 11.4 Lacs nos. p.a.)
 
 18.  HVFC Shirtings facility
 
 The processing facilities of HVFC factory at Jhagadia Industrial
 Estate, GIDC, Ankleshwar, Gujarat has commenced w.e.f 30th September,
 2010.
 
 19.  During the year the Company has capitalized interest of Rs..
 993.27 Lacs (Previous Year Rs.. 960.43 Lacs) which has been paid to
 TUFS Lenders and FCCB holders. The borrowing was exclusively used for
 the HVFC/HT project at Jhagadia.
 
 20.  Particulars of Derivative Instruments.
 
 a.  No derivative instruments are acquired for hedging purposes
 
 b.  No derivative instruments are acquired for speculation purposes
 
 21.  During the year Excise Duty is applicable on readymade garments
 from 1st March, 2011. Excise Duty on sales as of 31st March, 2011 is
 Nil.
 
 22.  Company adopted the Accounting Standard -15 (Revised 2005)
 Employee Benefits effective from 1st April, 2007.  The Company has
 classified the various benefits provided to employees as under:
 
 I.  Defined Contribution Plans:
 
 a.  Provident Fund & Employees Pension Scheme 1995
 
 b.  Employers'' Contribution to Employees'' State Insurance
 
 II.  Defined Benefit Plans:
 
 a.  Contribution to Gratuity Fund (Funded Scheme)
 
 b.  Leave Encashment (Non - Funded Scheme)
 
 The Company has own managed funds as well as insurer managed funds for
 certain divisions and hence it is not possible to give a break-up of
 investments in debt instruments and bank deposits.
 
 The expected rate of return on plan assets is based on market
 expectations at the beginning of the period. The rate of return on long
 term government bonds is taken as reference for this purpose.
 
 It is estimated that the contribution during financial year 2011-12
 would be Rs. 220.09 lacs (Previous year : Rs. 235.69 lacs) on account
 of the funded benefits.
 
 23.  Previous year''s figures have been regrouped / rearranged wherever
 considered necessary to make them comparable with current year''s figure.