Notes to Accounts of Nahar Capital & Financial Services Ltd.

Mar 31, 2018

Note : Associates Nahar Spinning Mills Ltd., Nahar Poly Films Ltd., Nahar Industrial Enterprises Ltd.

*Other Related Parties/Group Companies

Oswal Woollen Mills Ltd., Monte Carlo Fashions Ltd., Cotton County Retail Ltd., Vanaik Spinning Mills Ltd., Abhilash Growth Fund (P) Ltd., Atam Vallabh Financers Ltd., Bermuda Insurance Brokers Pvt. Ltd., Kovalam Investments & Trading Co. Ltd., Monica Growth Fund (P) Ltd., Nagdevi Trading & Investments Co. Ltd., Nahar Growth Fund (P) Ltd., Neha Credit & Investments (P) Ltd., Crown Stars Ltd., Ruchika Growth Fund (P) Ltd.,Girnar Investments Ltd., HUG Foods (P) Ltd., Sankeshwar Holding Co. Ltd., Vanaik Investors Ltd., Vardhman Investments Ltd., J.L.Growth Fund Ltd., Simran & Shanaya Co. Ltd., Sidhant & Mannat Co. Ltd., Oswal Foundation, Amloh Industries Limited, Retailerkart E Venture Private Limited, Nahar Industrial Infrastructure Corporation Limited, Nahar Financial and Investment Limited, Palam Motels Limited, Vigil Investment Private Limited, Shri Atam Fabrics Limited, Cabot Trading and Investment Co Private Limited, Marble E Retail Private Limited, Suvrat Trading Company Limited, White Tiger Breweries and Distilleries Limited

Key Management Personnel : Sh. Jawahar Lal Oswal, Sh. Dinesh Oswal, Sh. Kamal Oswal

Relatives of Key Management Personnel

Mrs. Abhilash Oswal, Mrs. Ruchika Oswal, Mrs. Manisha Oswal, Mrs. Ritu Oswal and Mrs. Monika Oswal

‘Associates includes the Companies/entities in which the Key Management Personnel or their relatives have significant influence and also includes enterprises with whom no transaction has taken place during the period.

Note 23 General

a) In the opinion of the Board, the value of Current Assets, Loans and Advances have a value in the ordinary course of business at least equal to that stated in the Balance Sheet except in case of those shown as doubtful.

b) As per Accounting Standard 17, issued by the Institute of Chartered Accountants of India Regarding Segment Reporting, the details is as under:-

c) The Company is liable to pay tax as per provisions of section 115JB of the Income Tax Act, 1961. In accordance with the provisions of section 115JAA of the said Act, the Company is entitled to take credit of the tax paid under section 115JB of the said act. However, such credit has not been recognized in the financial statements, as there is no convincing evidence available that the Company will be paying tax as per normal provisions of the said act, during the period for which MAT credit can be carried forward, Hence no Deferred Tax Asset has been created.

d) The Institute of Chartered Accountants of India has issued an Accounting Standard (AS)-28 on impairment of assets, which is mandatory for the accounting periods commencing on or after Ist April 2004. In accordance with the said standard, the company has assessed as on date of applicability of the aforesaid Standard and as well as on Balance Sheet Date, whether there are any indications (listed in paragraph 8 to 10 of the Standards) with regards to the impairment of any of the assets. Based on such assessment it has been ascertained that no no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of accounts.

NOTE : Ministry of Corporate Affairs vide letter dated 26.12.2017 has approved MD Remuneration of Rs. 799.73 Lacs for the period 01.01.2017 to 31.12.2017 jointly from M/s. Nahar Spinning Mills Limited and M/s. Nahar Capital And Financial Services Limited. During the year, M.D. Remuneration amounting to Rs. 30.00 Lac only for the period 01.01.2017 to 31.03.2017 was paid by the Company in addition to Current Year MD Remuneration.

Note 31 The Company for its CSR obligation joined hands with other group companies and agreed to do CSR obligation through a SPV, a recognized charitable organization, M/s. Oswal Foundation. The said organization has done various activities under CSR. Last year the project of Eye Care which was under consideration could not be taken up and discarded. Now the said society is considering a new health care project. The Company would contribute its CSR obligation as abd when it is finalized. In the meantime aount of CSR obligation Rs. 4363557.90 (Rs. Forty three lac sixty three five hundred fifty seven and paise ninety only) has been set apart towards CSR activity reserve.

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Mar 31, 2016

Note 1 Earning Per Share

The calculation of Earnings per Share (EPS) as disclosed in the Balance Sheet Abstract has been made in accordance with Accounting Standard (AS) - 20 on ’Earning per Share’ issued by the Institute of Chartered Accountants of India.

Note :

Associates

Nahar Spinning Mills Ltd., Nahar Poly Films Ltd., Nahar Industrial Enterprises Ltd.,

*Other Related Parties/ Group Companies

Oswal Woollen Mills Ltd., Monte Carlo Fashions Ltd., Cotton County Retail Ltd., Vanaik Spinning Mills Ltd., Abhilash Growth Fund (P) Ltd., Atam Vallabh Financers Ltd., Bermuda Insurance Brokers Pvt. Ltd., Kovalam Investments & Trading Co. Ltd., Monica Growth Fund (P) Ltd., Nagdevi Trading & Investments Co. Ltd., Nahar Growth Fund (P) Ltd., Neha Credit & Investments (P) Ltd., Crown Stars Ltd., Ruchika Growth Fund (P) Ltd.,Girnar Investments Ltd., HUG Foods (P) Ltd., Sankeshwar Holding Co. Ltd., Vanaik Investors Ltd., Vardhman Investments Ltd., J.L.Growth Fund Ltd., Simran & Shanaya Co. Ltd., Sidhant & Mannat Co. Ltd., Oswal Foundation, Amloh Industries Limited, Retailerkart E Venture Private Limited, Nahar Industrial Infrastructure Corporation Limited, Nahar Financial and Investment Limited, Palam Motels Limited, Vigil Investment Private Limited, Shri Atam Fabrics Limited, Cabot Trading and Investment Co Private Limited, Marble E Retail Private Limited, Suvrat Trading Company Limited, White Tiger Breweries and Distilleries Limited

Key Management Personnel

Sh. Jawahar Lal Oswal, Sh. Dinesh Oswal, Sh. Kamal Oswal

Relatives of Key Management Personnel

Mrs. Abhilash Oswal, Mrs. Ruchika Oswal, Mrs. Manisha Oswal, Mrs. Ritu Oswal and Mrs. Monika Oswal *Includes the Companies/entities in which the Key Management Personnel or their relatives have significant influence and also includes enterprises with whom no transaction has taken place during the period.

Note 2 GENERAL

a) In the opinion of the Board, the value of Current Assets, Loans and Advances have a value in the ordinary course of business at least equal to that stated in the Balance Sheet except in case of those shown as doubtful.

b) As per Accounting Standard 17, issued by Institute of Chartered Accountants of India regarding Segment Reporting, the detail is as under:

c) The Company is liable to pay tax as per provisions of section 115JB of the Income Tax Act, 1961. In accordance with the provisions of section 115JAA of the said Act, the Company is entitled to take credit of the tax paid under section 115JB of the said act. However, such credit has not been recognized in the financial statements, as there is no convincing evidence available that the Company will be paying tax as per normal provisions of the said act, during the period for which MAT credit can be carried forward, Hence no Deferred Tax Asset has been created.

d) The Institute of Chartered Accountants of India has issued an Accounting Standard (AS)-28 on impairment of assets, which is mandatory for the accounting periods commencing on or after Ist April 2004. In accordance with the said standard, the company has assessed as on date of applicability of the aforesaid Standard and as well as on Balance Sheet Date, whether there are any indications (listed in paragraph 8 to 10 of the Standards) with regards to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of accounts.

e) Company has given collateral Security of Land not exceeding Rs. 1805.04 Lacs against loan taken from Indian Overseas Bank by Developer of Chennai Property i.e. M/s. Voora Property Developers (P) Ltd., for uninterrupted construction of villas.

Note 3 Ministry of Corporate Affairs has approved M.D.Remuneration of Rs. 120 Lakhs p.a. effective from 1st April, 2014, which has been paid during this year i.e. MD Remuneration paid for 2014-15 Rs. 60 Lakhs and paid for 2015-16 for Rs. 120 Lakhs, which is included in the Employee Benefit expenses.

Note 4 In accordance with the Section 135 of the Companies Act, 2013, the Company is covered by the provisions of the said section

a) The amount required to be spent Rs. 47.67 Lakhs

b) The amount spent Rs. 47.67 Lakhs

The Company and other group Companies have joined hands to undertake the CSR activities under one umbrella organization i.s. Oswal Foundation.

*The Company, during the year contributed Rs. 47.67 Lakhs to M/s. Oswal Foundation, a special purpose vehicle, which has undertaken projects in the fields of environmental substainability, promoting education and special education for differently abled persons, for the purpose of doing CSR activities on behalf of the Company and other associates. .

Note : The previous year figures have been regrouped/ reclassified, wherever necessary to conform to the current year presentation.

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Mar 31, 2015

Note 1. RELATED PARTY DISCLOSURE :

Detail of transactions entered into with related parties during the period as required by Accounting Standard 18 on 'Related Party Disclosures' issued by the Institute of Chartered Accountants of India are as under:

Note 2. Associates

Nahar Spinning Mills Ltd., Nahar Poly Films Ltd., Nahar Industrial Enterprises Ltd., Oswal Woollen Mills Ltd., Monte Carlo Fashions Ltd., Cotton County Retail Ltd., Vanaik Spinning Mills Ltd.,Abhilash Growth Fund (P) Ltd., Atam Vallabh Financers Ltd., Bermuda Insurance Brokers Pvt. Ltd., Kovalam Investments & Trading Co. Ltd., Monica Growth Fund (P) Ltd., Nagdevi Trading & Investments Co. Ltd., Nahar Growth Fund (P) Ltd., Neha Credit & & Investments (P) Ltd., Ogden Trading & Investment Co. (P) Ltd., Palam Motels Ltd., Crown Stars Ltd., Ruchika Growth Fund (P) Ltd., Sankeshwar Holding Co. Ltd., Vanaik Investors Ltd., Vardhman Investments Ltd., J.L.Growth Fund Ltd., Jawahar Lal & Sons HUF, Girnar Investments Ltd. HUG Foods (P) Ltd., Simran & Shanaya Co. Ltd., Sidhant & Mannat Co. Ltd. Palam Motels Ltd.

Key Management Personnel

Sh. Jawahar Lal Oswal, Sh. Dinesh Oswal, Sh. Kamal Oswal

Relatives of Key Management Personnel

Mrs. Abhilash Oswal, Mrs. Ruchika Oswal, Mrs. Manisha Oswal, Mrs. Ritu Oswal and Mrs. Monika Oswal

* Associates includes the Companies in which the Key Management Personnel or their relatives have significant influence, group Companies and also includes enterprises with whom no transaction has taken place during the period.

Note 3. GENERAL

a) In the opinion of the Board, the value of Current Assets, Loans and Advances have a value in the ordinary course of business at least equal to that stated in the Balance Sheet except in case of those shown as doubtful.

b) The Company is liable to pay tax as per provisions of section 115JB of the Income Tax Act, 1961. In accordance with the provisions of section 115JAA of the said Act, the Company is entitled to take credit of the tax paid under section 115JB of the said act. However, such credit has not been recognized in the financial statements, as there is no convincing evidence available that the Company will be paying tax as per normal provisions of the said act, during the period for which MAT credit can be carried forward, Hence no Deferred Tax Asset has been created.

c) The Institute of Chartered Accountants of India has issued an Accounting Standard (AS)-28 on impairment of assets, which is mandatory for the accounting periods commencing on or after Ist April 2004. In accordance with the said standard, the company has assessed as on date of applicability of the aforesaid Standard and as well as on Balance Sheet Date, whether there are any indications (listed in paragraph 8 to 10 of the Standards) with regards to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of accounts.

d) Company has given collateral Security of Land not exceeding Rs. 1968.11 Lacs against loan taken from Indian Overseas Bank by Developer of Chennai Property i.e. M/s. Voora Property Developers (P) Ltd., for uninterrupted construction of villas.

Note 4. Exceptional Items - Rs. 30.00 Lacs of MD remuneration paid excess in quarter ended 31.12.2014, recovered in quarter ended 31.03.2015. Note 30 In accordance with the Section 135 of the Companies Act, 2013, the Company is covered by the provisions of the said section

a) The amount required to be spent Rs. 44.31 Lacs

b) The amount spent NIL

However the Company jointly with other group companies have joined hands under one umbrella namely Oswal foundation to carry out CSR activities in future.

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Mar 31, 2014

Note 1. Earning Per Share

The calculation of Earnings per Share (EPS) as disclosed in the Balance Sheet Abstract has been made in accordance with Accounting Standard (AS) - 20 on ''Earning per Share'' issued by the Institute of Chartered Accountants of India.

Note 2. Contingent Liabilities not provided for

Particulars As at 31 March As at 31 March 2014 2013 (In Lacs) (In Lacs) (i) Contingent Liabilities a) Claims against the company not acknowledged as debt - -

b) Guarantees - -

c) Other money for which the company is - - contingently liable

(ii) Commitments (a) Estimated amount of contracts remaining to be executed on capital account (Net of Advances) 234. 92 284. 92

(b) Uncalled liability on shares and other investments partly paid 120. 00 50. 00 (c) Letter of Credit outstanding in favour of Suppliers of Goods(Net of Advances) - -

(d) Other commitments (Collateral Charge on Land against Bank Loan to Developer of Chennai Property) 3, 650. 00 -

Total 4, 004. 92 334. 92

Note :

*Associates

Nahar Spinning Mills Ltd., Nahar Poly Films Ltd., Nahar Industrial Enterprises Ltd., Oswal Woollen Mills Ltd., Monte Carlo Fashions Ltd., Cotton County Retail Ltd., Vanaik Spinning Mills Ltd.,Abhilash Growth Fund (P) Ltd., Atam Vallabh Financers Ltd., Bermuda Insurance Brokers Pvt. Ltd., Kovalam Investments & Trading Co. Ltd., Monica Growth Fund (P) Ltd., Nagdevi Trading & Investments Co. Ltd., Nahar Growth Fund (P) Ltd., Neha Credit & Investments (P) Ltd., Ogden Trading & Investment Co. (P) Ltd., Palam Motels Ltd., Crown Stars Ltd., Ruchika Growth Fund (P) Ltd., Sankeshwar Holding Co. Ltd., Vanaik Investors Ltd., Vardhman Investments Ltd., J.L.Growth Fund Ltd., Jawahar Lal & Sons HUF, Girnar Investments Ltd. HUG Foods (P) Ltd., Simran & Shanaya Co. Ltd., Sidhant & Mannat Co. Ltd.

Key Management Personnel

Sh. Jawahar Lal Oswal, Sh. Dinesh Oswal, Sh. Kamal Oswal.

Relatives of Key Management Personnel

Mrs. Abhilash Oswal, Mrs. Ruchika Oswal, Mrs. Manisha Oswal, Mrs. Ritu Oswal and Mrs. Monika Oswal.

* Associates includes the Companies in which the Key Management Personnel or their relatives have significant influence, also includes enterprises with whom no transaction has taken place during the period.

Note 3. General

a) In the opinion of the Board, the value of Current Assets, Loans and Advances have a value in the ordinary course of business at least equal to that stated in the Balance Sheet except in case of those shown as doubtful.

b) The Company is liable to pay tax as per provisions of section 115JB of the Income Tax Act, 1961. In accordance with the provisions of section 115JAA of the said Act, the Company is entitled to take credit of the tax paid under section 115JB of the said act. However, such credit has not been recognized in the financial statements, as there is no convincing evidence available that the Company will be paying tax as per normal provisions of the said act, during the period for which MAT credit can be carried forward, Hence no Deferred Tax Asset has been created.

c) The Institute of Chartered Accountants of India has issued an Accounting Standard (AS)-28 on impairment of assets, which is mandatory for the accounting periods commencing on or after 1st April 2004. In accordance with the said standard, the company has assessed as on date of applicability of the aforesaid Standard and as well as on Balance Sheet Date, whether there are any indications (listed in paragraph 8 to 10 of the Standards) with regards to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of accounts.

d) Company has given collateral Security of Land not exceeding Rs. 3650.00 Lacs against loan taken from Indian Overseas Bank by Developer of Chennai Property i.e. M/s. Voora Property Developers (P) Ltd., for uninterrupted construction of villas.

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Mar 31, 2013

Note 1. Earning Per Share

The calculation of Earnings per Share (EPS) as disclosed in the Balance Sheet Abstract has been made in accordance with Accounting Standard (AS) - 20 on ''Earning per Share'' issued by the Institute of Chartered Accountants of India.

Note 2. General

a) In the opinion of the Board, the value of Current Assets, Loans and Advances have a value in the ordinary course of business at least equal to that stated in the Balance Sheet except in case of those shown as doubtful.

b) As per Accounting Standard 17, issued by the Institute of Chartered Accountants of India Regarding Segment Reporting, the detail is as under :-

c) The Company is liable to pay tax as per provisions of section 115JB of the Income Tax Act, 1961. In accordance with the Provisions of Section 115JAA of the said Act, the company is entitled to take credit of the tax paid under section 115JB of the said Act. However, such credit has not been recognized in the financial statements, as there is no convincing evidence available that the company will be paying tax as per normal provisions of the said act, during the period for which MAT credit can be carried forward, Hence no Deferred Tax Asset has been created.

d) The Institute of Chartered Accountants of India has issued an Accounting Standard (AS)-28 on impairment of assets, which is mandatory for the accounting periods commencing on or after 1st April 2004. In accordance with the said standard, the Company has assessed as on date of applicability of the aforesaid Standard and as well as on Balance Sheet Date, whether there are any indications (listed in paragraph 8 to 10 of the Standards) with regards to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of accounts.

Note 3.

The previous year figures has been regrouped/ reclassified to confirm the current year classification.

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Mar 31, 2012

Note 1. Contingent Liabilities not provided for

Particulars As at 31 March 2012 As at 31 March 2011 (In Lacs) (In Lacs)

(i) Contingent Liabilities

(a) Claims against the company not acknowledged as debt - -

(b) Guarantees - -

(c) Other money for which the company is - - contingently liable - -

(ii) Commitments

(a) Estimated amount of contracts remaining to be 470.97 606.42 executed on capital account (Net of Advances)

(b) Uncalled liability on shares and other investments partly paid 16.13 40.00

(c) Letter of Credit outstanding in favour of Suppliers - - of Goods(Net of Advances)

(d) Other commitments (specify nature)

Total 487.10 646.42

Note :

'Associates

Nahar Spinning Mills Ltd., Nahar Poly Films Ltd., Nahar Industrial Enterprises Ltd., Oswal Woollen Mills Ltd., Monte Carlo Fashions Ltd., Cotton County Retail Ltd., Vanaik Spinning Mills Ltd.,Abhilash Growth Fund (P) Ltd., Atam Vallabh Financers Ltd., Bermuda Insurance Brokers Pvt. Ltd., Kovalam Investments & Trading Co. Ltd. Ludhiana Holding Ltd., Monica Growth Fund (P) Ltd., Nagdevi Trading & Investments Co. Ltd., Nahar Growth Fund (P) Ltd., Neha Credit & Investments (P) Ltd., Ogden Trading & Investment Co. (P) Ltd., Palam Motels Ltd., Crown Stars Ltd., Ruchika Growth Fund (P) Ltd., Sankeshwar Holding Co. Ltd., Vanaik Investors Ltd.,Vardhman Investments Ltd., J.L.Growth Fund Ltd., Jawahar Lal & Sons.

Key Management Personnel

Sh. Jawahar Lal Oswal, Sh. Dinesh Oswal, Sh. Kamal Oswal.

Relatives of Key Management Personnel

Mrs. Abhilash Oswal, Mrs. Ruchika Oswal, Mrs. Manisha Oswal, Mrs. Ritu Oswal and Mrs. Monika Oswal

*Associates includes the Companies in which the Key Management Personnel or their relatives have significant influence, also includes enterprises with whom no transaction has taken place during the period.

Note 2. General

a) In the opinion of the Board, the value of Current Assets, Loans and Advances have a value in the ordinary course of business atleast equal to that stated in the Balance Sheet except in case of those shown as doubtful.

b) The disclosure requirements of Accounting Standards AS-17 are not applicable as the main activity of the Company fall under single segment i.e. Investment Activities.

c) The Company is liable to pay tax as per provisions of section 115JB of the Income Tax Act, 1961. In accordance with the provisions of section 115JAA of the said Act, the Company is entitled to take credit of the tax paid under section 115JB of the said act. However, such credit has not been recognized in the financial statements, as there is no convincing evidence available that the Company will be paying tax as per normal provisions of the said act, during the period for which MAT credit can be carried forward, Hence no Deferred Tax Asset has been created.

d) The Institute of Chartered Accountants of India has issued an Accounting Standard (AS)-28 on impairment of assets, which is mandatory for the accounting periods commencing on or after Ist April 2004. In accordance with the said standard, the company has assessed as on date of applicability of the aforesaid Standard and as well as on Balance Sheet Date, whether there are any indications (listed in paragraph 8 to 10 of the Standards) with regards to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of accounts.

Note 3.

The Financial statements for the year ended 31st March, 2012 has been prepared as per Revised Schedule-VI to the Companies Act, 1956. Accordingly the previous year figures have been reclassified to conform to this year's classification.

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Mar 31, 2011

1. Contingent liabilities not provided for

As at 31.03.2011 As at 31.03.2010

(In Lacs) (In Lacs)

a) Bank Guarantees and Letters of Credit outstanding -- --

b) Claims not acknowledged as debts -- --

2. In the opinion of the board, the value of Current Assets, Loans and Advances have a value in the ordinary course of business at least equal to that stated in the balance sheet except in case of those shown as doubtful.

3. The Company is liable to pay tax as per provisions of Section 115JB of the Income Tax Act, 1961. In accordance with the provisions of Section 115JAA of the said Act, the Company is entitled to take credit of the tax paid under Section 115JB of the said Act. However, such credit has not been recognized in the financial statements, as there is no convincing evidence available that the Company will be paying tax as per normal provisions of the said Act, during the period for which MAT Credit can be carried forward, Hence no Deferred Tax Asset has been created.

4. The Institute of Chartered Accountants of India has issued an Accounting Standard (AS)-28 on impairment of assets, which is mandatory for the accounting periods commencing on or after 1st April 2004. In accordance with the said Standard, the Company has assessed as on date of applicability of the aforesaid Standard and as well as on Balance Sheet date, whether there are any indications (listed in paragraphs 8 to 10 of the Standards) with regard to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

5. The disclosure requirements of Accounting Standards AS-17 are not applicable as the main activity of the Company fall under single segment i.e. Investment Activities.

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Mar 31, 2010

1. Contingent liabilities not provided for

As at 31.03.2010 As at 31-03-2009 (In Lacs) (In Lacs)

a) Bank Guarantees and Letters of Credit outstanding -- --

b) Claims not acknowledged as debts -- --

2. Estimated amount of contracts remaining to be 712.41 1322.84 Executed on Capital Account (Net of Advances)

3. In the opinion of the board, the value of Current Assets, Loans and Advances have a value in the ordinary course of business at least equal to that stated in the balance sheet except in case of those shown as doubtful.

4. Last year the Board has decided to change the Accounting year from 30th June to 31st March. As such previous Accounting year is of Nine months i.e. from 1st July 2008 to 31st March 2009 and hence the previous year figures are not comparable with the current year figures.

Note:

*Associates and Related Parties

Nahar Spinning Mills Ltd., Nahar Poly films Ltd., Nahar Industrial Enterprises Ltd., Oswal Woollen Mills Ltd., Cotton county Retail Ltd., Vanaik Spinning Mills Ltd., Abhilash Growth Fund (P) Ltd., Atam Vallabh Financers Ltd., Bermuda Insurance Brokers Pvt. Ltd., Kovalam Investments & Trading Co. Ltd., Ludhiana Holdings Ltd, Monica Growth Fund (P) Ltd., Nagdevi Trading & Investment Co. Ltd., Nahar Growth Fund (P) Ltd., Neha Credit & Investment (P) Ltd., Ogden Trading & Investment Co. (P) Ltd, Palam Motels Ltd, Crown Stars Ltd., Ruchika Growth Fund (P) Ltd., Sankeshwar Holding Co. Ltd., Vanaik Investors Ltd, Vardhman Investments Ltd., J.L.Growth Fund Ltd., Jawahar Lal & Sons

Key Management Personnel

Sh. Jawahar Lal Oswal, Sh. Dinesh Oswal and Sh. Kamal Oswal

Relatives of Key Management Personnel

Mrs. Abhilash Oswal, Mrs.Ruchika Oswal, Mrs.Manisha Oswal, Mrs.Ritu Oswal and Mrs.Monika Oswal

" Associates includes the Companies in which the Key Management Personnel or their relatives have significant influence, also includes enterprises with whom no transaction has taken place during the period.

5. The Company is liable to pay tax as per provisions of Section 115JB of the Income Tax Act, 1961.In accordance with the provisions of Section 115JAA of the said Act, the Company is entitled to take credit of the tax paid under Section 115JB of the said Act. However, such credit has not been recognized in the financial statements, as there is no convincing evidence available that the Company will be paying tax as per normal provisions of the said Act, during the period for which MAT Credit can be carried forward, Hence no Deferred Tax Asset has been created.

6. The Institute of Chartered Accountants of India has issued an Accounting Standard (AS)-28 on impairment of assets, which is mandatory for the accounting periods commencing on or after 1st April 2004. In accordance with the said Standard, the company has assessed as on date of applicability of the aforesaid Standard and as well as on Balance Sheet date, whether there are any indications (listed in paragraphs 8 to 10 of the Standards) with regard to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the book of account.

7. The disclosure requirements of Accounting Standards AS-17 are not applicable as the main activity of the Company fall under single segment i.e. Investment Activities.

Note :

1. Remuneration includes Salary, Cash Allowances and commission on profit paid or payable to Managing Director.

2. Mr. Dinesh Oswal is also getting Remuneration from Nahar Spinning Mills Limited within the cellings prescribed under the Schedule XIII of the Companies Act, 1956.

8. Schedules 1 to 16 form an integral part of the Balance Sheet and have been authenticated as such.