1. a) The company has not issued any shares in persuance to
 contract(s) without payment being received in cash during five year
 immediately preceding the date as at which the Balance Sheet is
 prepared.
 
 b) The company has not issued any fully paid up Bonus Shares during
 five year immediately preceding the date as at which the Balance Sheet
 is prepared.
 
 c) The company has not bought back any Shares during five year
 immediately preceding the date as at which the Balance Sheet is
 prepared.
 
 *The Term loan is secured by way of first charge (on pari passu basis)
 on factory land and building and hypothecation of Plant and Machinary
 and other movable / immovable fixed assets acquired / to be acquired
 under the project of BOPP plant at Mandideep, Bhopal. It is further
 secured by Second pari pasu charge on current assets of the company.
 The Term Loan is personally guaranted by a Director of the Company and
 corporate guarantee of Rs. 25.00 crores (Oriental Bank of Commerce) and
 Rs.15.00 Crores (To Bank of Maharashtra) given by M/s. Nahar Spinning
 Mills Ltd.
 
 The above term loans are repayable in installments as per terms of
 respective agreement over a period of 8-10 years after moratorium
 period of 2-3 years.
 
 a) There are no intengible assets under development as on 31.03.2011 as
 well as on 31.03.2012.
 
 b) At each Balance Sheet date, an assessment is made whether any
 indication exists that an asset has been impaired. If any such
 indication exists, an impairment loss i.e. the amount by which the
 carrying amount of an asset exceeds its recoverable amount is provided
 in the books of accounts.
 
 c) In respect of new unit, the expenditure incurred during construction
 period up to the date of commencement of commercial production is
 allocated to the relevant fixed assets.
 
 d) All the indirect expenses incurred during construction period upto
 the date of commencement of commercial production will be capitalized
 on various categories of fixed assets on proportionate bases.
 
 e) Borrowing cost amounting to Rs. Nil (Previous year Rs. 14593713
 Lacs)has been capitalized during the year.
 
 ''Associates
 
 Nahar Spinning Mills Ltd., Nahar Capital & Financial Services Ltd.,
 Nahar Industrial Enterprises Ltd., Oswal Woollen MillsLtd., Vanaik
 Spinning Mills Ltd., Abhilash Growth Fund (P) Ltd., Atam Vallabh
 Financers Ltd., Bermuda Insurance BrokersPvt. 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., 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 and Sh. S.K.
 Sharma.
 
 Relatives of Key Management Personnel
 
 Mrs. Abhilash Oswal, Mrs. Ruchika Oswal, Mrs. Manish Oswal, Mrs. Ritu
 Oswal and Mrs. Monika Oswal
 
 2.  Contingent Liabilities
 
 PROVISION AND CONTIGENT LIABILITIES
 
 a) Provisions are recognized for liabilities that can be measured by
 using a substantial degree of estimation, if : - the company has a
 present obligation as a result of past event.
 
 - a probable outflow of resources embodying economic benefits is
 expected to settle the obligation and
 
 - the amount of the obligation can be reliably estimated.
 
 b) Contingent Liability is disclosed in case of :
 
 - a present obligation arising from a past event when it is not
 probable that an outflow of resources embodying economic benefits will
 be required to settle the obligation or
 
 - a possible obligation, unless the probability of outflow in
 settlement is remote.
 
 Particulars                         Current Year    Previous Year
 
 (i)  Contingent Liabilities
 
 (a)  Claims against the company 
 not acknowledged as debt                 Nil            Nil
 
 (b)  Guarantees                          Nil            Nil
 
 (c)  Other money for which the 
 company is contingently liable           Nil            Nil
 
 (ii) Commitments
 
 (a)  Estimated amount of contracts 
 remaining to be executed                40541           Nil
 on capital account and not provided for
 
 (b)  Uncalled liability on shares 
 and other investments partly paid        Nil            Nil
 
 (c)  Letter of Credit outstanding 
 in favour of Suppliers of Goods       16214522        11668258
 (Net of Advances)
 
 (d)  Other commitments 
 (specify nature)                         Nil            Nil
 
 Total                                 16255063        11668258
 
 WARRANTY CLAIMS
 
 As per the nature of business of the company, the question of warranty
 claims does not arise. The routine claims on account of quality or
 quantity logged with the company other than those which are disputed
 one, are accounted for as and when accepted by the company.
 
 31.  GENERAL
 
 1) Material events occurring after the balance sheet date are taken
 into cognizance.
 
 2) Prior period and extra ordinary items of changes in account policies
 having material impact on the financial affairs of the Company (if any)
 are disclosed.
 
 3) The accounts of the company have been prepared on going concern
 basis.
 
 4) 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.
 
 5) The company has only one reportable business segment and therefore
 no separate disclosure is required in accordance with Accounting
 Standard (AS)-17 on segment reporting notified by the Company
 (Accounting Standards) Rules, 2006.
 
 6) Some balances of Sundry Creditors, Advances and Sundry Debtors are
 subject to their confirmation.
 
 7) The company is eligible for sales tax incentive/subsidy from the
 government of MP. During the year the company has been granted sales
 tax incentive/subsidy amounting to Rs.15961892 lacs for the financial
 year 2010-11 (Previous year Nil) to be adjusted against future sales
 tax liabilities of the company. The company is accounting the above
 sales tax subsidy on receipt bases as the availability of the above
 subsidy is only on the bases of completion of certain formalities.
 
 8) The financial statements for the year ended 31-03-2012 have been
 prepared as per the requirement of the revised schedule VI to the
 companies Act, 1956 as per notification issued by the Central
 Government. The prior period figures has been accordingly regrouped
 reclassified to confirm the current year classification.