# Working Capital loans are secured by hypothecation of entire stocks,
 raw material, stock in process, finished goods, consumables, stores &
 spares, book debts, outstanding money receivables, entire current asset
 of company- current & future, paripassu second charges on fixed assets,
 claims & bills, receivables.
 
 * (i) Fixed Deposit with bank include deposit of Rs 235.52 lacs
 maturity more than 12 months & held as security against borrowing of
 less than 12 months period.
 
 (ii) FDR of Rs 14870.02 lacs held as margin money or security against
 the borrowing & other commitments of
 
 Note 1 RELATED PARTY DISCLOSURES
 
 As Per Accounting Standard 18 , the disclosures of transactions with
 the related parties are given below
 
 (I) List of related parties where control exists & related parties with
 whom transactions have taken place & relationships :
 
 SR 
 NO. NAME OF RELATED PARTY 
 
     SUBSIDIARIES :
 
 1.  Economic Explosives Ltd
 
 2.  Solar Mines & Minerals Ltd
 
 3   Solar Mining Resources Ltd
 
 4   Navbharat Coalfields Ltd
 
 OVERSEAS SUBSIDIARIES:
 
 1.  Solar Overseas Mauritius Ltd
 
 2.  Solar Explochem Mauritius Ltd
 
 3.  Solar Netherlands Corporate U.A
 
 4.  Solar Netherlands Overseas B.V.
 
 5.  ILCI Patlayici Maddeler Sanayi Ve Ticaret Anonim Sirketi
 
 6.  PATSAN Pattlayici Maddeler Sanayi Ve Ticaret
 
 7.  Solar Overseas Singapore Pte Ltd
 
 8.  Solar Nigachem Nigeria Ltd
 
 9.  Nigachem Nigeria Ltd
 
 10.  Solar Explochem Zambia Ltd
 
 11.  Solar Mining Services Australia Pty Ltd
 
 12.  Solar Nitrochemicals Ltd
 
 13.  PT. Solar Mining Resources
 
 14.  Solar Agro Florestal LDA
 
 15.  Solar Induatries Mocambique LDA
 
 16.  Solar Recursos Minerals LDA
 
 17.  Solar Explochem (Ghana) Ltd
 
 ASSOCIATES:
 
 1 Solar Synthetic Pvt Ltd
 
 2 Mahakal Infrastructures Pvt Ltd
 
 3 Mahakal Project Pvt Ltd
 
 4 Nagpur Infrastructure Pvt Ltd
 
 5 Solar Bhatgaon Extension Mines Pvt Ltd
 
 6 SMS Bhatgaon Mines Extension Pvt Ltd
 
 7 Bhatgaon Extension Mines Pvt Ltd
 
 8 Bhatgaon Mines Pvt Ltd
 
 9 Solar Initiating Systems Ltd
 
 10 Madanpur North Coalfields Ltd
 
 11 Solar Processors Ltd
 
 12 Australian Explosive Technologies Group Pty Ltd
 
 13 Navbharat Fuse
 
 KEY MANAGEMENT PERSONNEL:
 
 1.  Shri S.N. Nuwal
 
 2.  Shri K.C. Nuwal
 
 3.  Shri Manish Nuwal
 
 4.  Shri K.S. Talesra
 
 5.  Shri R.D. Vakil
 
 Note 2
 
 As Per Accounting Standard (AS) 17 on  Segment Reporting , segment
 information has been provided under the Notes to Consolidated Financial
 Statements.
 
 Note 3
 
 Research and Development expenses incurred during the year :
 
 a.  Rs. 153.91 lacs (Previous year Rs. 81.35 lacs) in the nature of
 revenue expenditure;
 
 b.  Rs. 567.97 lacs (Previous year Rs. 37.53 lacs) in the nature of
 capital expenditure have been included under the appropriate account
 heads.
 
 Note  4  CONTINGENT LIABILITIES & COMMITMENTS
 
                                                       (Rs. in Lacs)
 
 Particulars                                   F.Y. 11-12    F.Y.10-11
 
 1) IN RESPECT OF COUNTER GUARANTEES GIVEN 
 BY BANK                                         3,077.62     3,038.79
 
 2) IN RESPECT OF EXCISE MATTERS IN DISPUTE 
 / UNDER APPEAL                                    488.52       261.71
 
 3) IN RESPECT OF SALES TAX DEFEREMENT           1,323.56     2,076.18 
 PAYABLE AS PER NPV BASIS - 536.05
 
 4) IN RESPECT OF INCOME TAX MATTERS IN 
 DISPUTE/ UNDER APPEAL                              18.24        18.24
 
 5) IN RESPECT OS SALES TAX MATTERS IN DISPUTE/
 UNDER APPEAL                                      136.50        85.87
 
 6) DUTY IMPOSED BY CCI FOR VOILATING SEC 3 
 OF COMPETION ACT **                             1,134.00          -
 
 ** The Competition Commission Of India (CCI) has upheld the contention
 of Coal India Ltd (CIL) against explosive manufactures.  CIL had
 contended by the manufactures for collective boycott of electronic
 reverse auction held by CIL in January 2010 covered as violation under
 sec 3 of Competiton Act.
 
 CCI has fined the ten explosives manufacturers 3% of the average of
 their annual turnover for the last three financial years , for
 violating sec 3 of the Competition Act.
 
 The unanimous order of the CCI held that there was a concerted action
 among the explosives manufacturers not to participate in the CIL
 reverse auction , which resulted in a collective boycott of the auction
 & manipulation of the bidding process , in violation of sec 3(3)(b) of
 the Competition Act.
 
 Note 5 Financial & Derivales Instruments
 
 a) Derivative contracts entered into by the Company and outstanding as
 on 31st March,2012.
 
 i.) For hedging Currency and Interest Rate Related Risks:
 
 Nominal amounts of derivative contracts entered into by the Company and
 outstanding as on 31st March amount to Rs.  9217 Lacs
 
 b) Foreign Currency exposures that are not hedged by derivative
 instruments as on 31st March, 2012 amount to Rs NIL (Previous Year Rs.
 NIL).
 
 Note 6
 
 The Ministry of Corporate Affiaris , Government of India , vide General
 Circular No. 2 and 3 dated 8th February 2011 and 21 st February 2011
 respectively has granted a general exemption from complaiance with
 section 212 of the Companies Act , 1956 , subject to fulfillent of
 conditions stipulated in the circular. The Company has satisfied the
 conditions stipulated in the circular and hence is entitled to the
 exemptiion. Necessary informationrelating to the subsidiaries has been
 included in the Consolidated Financial Statement.