1.  Contingent Liability
 
                                                      Amount in Rs. Lacs
 
                                              FY 2010-11      FY 2009-10
 
 01 In respect of counter guarantees 
 given to Bank                        Rs.      3,038.79        3,701.43
 
 02 In respect of Excise matters in 
 dispute / under Appeal               Rs.        261.71          140.74
 
 03 In respect of Sales Tax Deferment Rs.      2,076.18        3,233.17
    Payable as per NPV basis - 820.80 Lacs
 
 04 In respect of Income Tax matters 
    in dispute / under Appeal         Rs.        18.24
 
 05 In respect of Sales Tax matters 
    in dispute / under Appeal         Rs.        85.87
 
 5.  Related party disclosures required as per AS-18 on ` Related
 Parties disclosures'' issued by the Institute of Chartered Accountants
 of India, are below for the year ended on 31st March, 2011.
 
 1.  Holding Company     : NIL
 
 2.  Subsidiaries        : a) Economic Explosives Limited
 
                           b) Solar Mines & Minerals Ltd.
 
                           c) Solar Mining Resources Ltd.
 
                           d) Navbharat Coalfields Ltd.
 
 3.  Fellow Subsidiaries : NIL
 
 4.  Overseas 
     Subsidiaries        : a) Solar Overseas Mauritius Limited
 
                           b) Solar Agro Florestal LDA*
 
                           c) Solar Industries Mocambique LDA*
 
                           d) Solar Recursos Minerals LDA*
 
 5.  Fellow Overseas 
     Subsidiaries         a) Solar Explochem Mauritius Ltd.*
 
                          b) Solar Netherlands Corporatie U.A.
 
                          c) Solar Netherlands Overseas B.V.
 
                          d) Ilci Patlayici Maddeler Sanayi VeTicaret
                             Anonim Sirketi
 
                          e) PATSAN Pattlayici Maddeler Sanayi Ve Ticaret
 
                          f) Solar Overseas Singapore Pte Limited
 
                          g) Solar Nigachem Nigeria Limited* 
 
                          h) Nigachem Nigeria Limited
 
                         i) Solar Explochem Zambia Limited
 
                         j) Solar Mining Services Australia Pty Ltd.*
 
                         k) Solar Nitrochemicals Limited*
 
                         l) P T. Solar Mining Resources*
 
 6.  Associates          a) Solar Synthetics Private Limited
 
                         b) Mahakal Infrastructures Private Limited
 
                         c) Mahakal Project Private Limited
 
                         d) Nagpur Infrastructure Private Limited
 
                         e) Solar Bhatgaon Extension Mines Private 
                            Limited
 
                        f) SMS Bhatgaon Mines Extension Private Limited
 
                        g) Bhatgaon Extension Mines Private Limited 
 
                        h) Bhatgaon Mines Private Limited
 
                        i) Sunbeam Explosives Limited
 
                        j) Sunrise Explosives Limited
 
                        k) Solar Initiating Systems Limited
 
                        l) Madanpur North Coal Fields Limited
 
                        m) Solar Processors Limited
 
                        n) Commercial Sales Corporation
 
                        o) Australian Explosive Technologies Group PtyLtd
 
 * Note: The Company has not commenced any business operations, hence
 financial performance is not available.
 
 6.  Key Management Personnel : a) Shri.S.N.Nuwal
 
                                b) Shri K.C.Nuwal
 
                                c) Shri Manish Nuwal
 
                                d) Shri K.S. Talesra
 
                                e) Shri R.D.Vakil
 
 7.  Employee retirement benefits
 
 Contributions to Provident Fund are deposited with the appropriate
 authorities and charged to the Profit and Loss Account as incurred. The
 Company has made provision for gratuity based on 15 days'' salary for
 each completed year of service.
 
 8.  In earlier year the Company has supplied explosives to Coal India
 Ltd from 1st March, 2006 to 30th June, 2006 as per old rate contract
 rates on confirmation from Coal India Ltd that new rate contract will
 be issued effective from 1st March, 2006 Coal India Ltd has issued new
 rate contract w.e.f 29th July, 2006 without covering the period From
 1st March, 2006 to 30th June, 2006. The Company has protested and now
 this is sub Juidice at Hon. Calcutta High Court on the ground that
 since no rate contract has been issued for 01.03.06 to 30.06.06 so
 rates of old rate contract shall be applied. During the year Hon.
 Calcutta High Court has given an order asking Bank Guarantee against
 such deductions and company has submitted the same which is included in
 contingent liability. The court has passed an order for release of
 payment against Bank Guarantee for Cartridge & Accessories Division
 only and allowed full deduction for Bulk Division pending final
 decision in the matter by the Hon. Calcutta High Court.
 
 9.  During the year company has traded Ammonium Nitrate of Rs. 5101.71
 Lacs.
 
 10.  Company has made investment during FY 2008-09 in two SPV companies
 along with SMS Infrastructure Pvt.Ltd. to enter into Joint Venture with
 CMDC for mining work and separate Joint venture companies is formed in
 which the stake of CMDC is 51%.  The stake of Solar Industries India
 ltd. in SPV Company is as follows.
 
 Solar Bhatgaon Ext.Mines Pvt.Ltd. 49%
 
 SMS Bhatgaon Mines Extension Pvt.Ltd. 49%
 
 11.  During the year the Company has invested $ 70.00 Lacs in its
 foreign subsidiary Solar Overseas Mauritius Ltd.further Solar Overseas
 Mauritius Ltd.has invested in Solar Netherlands Corporatie U.A., Solar
 Netherlands Overseas B.V., Ilci Patlayici Maddeler Sanayi VeTicaret
 Anonim, PATSAN Pattlayici Maddeler Sanayi Ve Ticaret, Solar Overseas
 Singapore Pte Limited , Nigachem Nigeria Limited, Solar Explochem
 Zambia Limited
 
 12.  During the year the Company has executed the turnkey project of
 installation of Bulk Explosive Manufacturing Plant for its associate
 company Nigachem Nigeria Limited. of Rs. 626.79 Lacs
 
 13.  During the year the Company has provided Rs. 546.90 Lacs against
 Powder Factor deductions for its supplies of explosives to Coal India
 Ltd.
 
 14.  Sundry Creditor includes outstanding balance of M/s Citco Waren
 Handel Sgesellschaft & Quantum Fertilizers Ltd. Rs. 6787.26 Lacs which
 includes payment outstanding against Buyers Credit is Rs. 6787.26 Lacs.
 
 15. Some of the customers and suppliers accounts are pending for
 confirmation/reconciliation and the same have been taken as per the
 balances appearing in the books. Any differences arising on account of
 such reconciliations, which are not likely to be material, will be
 accounted for as and when these reconciliations are completed.
 
 16.  Capital work in progress in Fixed Assets
 
 Company has got status of Mega Project from Government of
 Maharashtra. Company has made investment in Fixed Assets.  Project work
 is not completed, hence shown under Capital WIP.
 
 Civil Construction worth Rs. 471.36 Lacs, Plant & Machinery worth Rs.
 693.78 Lacs, Electric Installation worth Rs. 49.65 Lacs, and other work
 in progress Rs. 409.67 Lacs.
 
 17.  Excise Duty shown under expenditure represents the aggregate of
 the difference between Excise Duty on the Opening and Closing Stock of
 Finished Goods.Excise Duty deducted from Sales represents Excise Duty
 paid.
 
 18.  Sundry Creditors for goods and expenses include dues to Micro
 Small & Medium Scale Business Entities aggregating to Rs. 95.44 Lacs
 The names of Micro Small & Medium Scale Business Entities (to the
 extent of information available with the management- to whom the
 Company owes a sum exceeding Rs. 1 lac each Basic Chemical Industry,
 Kalinga Wrappers, Sunrise Technologies,Welset Plast Extrusion
 Pvt.Ltd.,Sankhala Industries,Bharat Solar Cable,Rudraksha Allied
 Chemical Pvt.Ltd.,Hindustan Gum & Chemicals Ltd.,Gujrat Polymers,Anupam
 Colours Pvt.Ltd.,Geeta Packaging Industries, Shree Gajanan Agro
 Industries,Maxwell Poly Products,Sachin Polypack & Gayatri Packaging
 Industries. None of the aforesaid outstanding is due for payment as at
 31st March, 2011 as per agreed terms.
 
 19.  Export Incentive receivable under duty free credit entitlement
 included under the head Loans & Advances is pending due to disposal for
 some procedural aspects with Government. Shortfall / excess if any will
 be taken into accounts as and when it is determined.
 
 20.  Manufacturing sales includes input material sales
 
 21.  Disclosure as required by Accounting Standard 19 Leases issued
 by the institute of Chartered Accounts of India are given below:
 
 Being the Company is Lessee:
 
 (i) The Company''s significant leasing arrangements are in respect of
 godown / residential / office premises (including furniture and
 fittings therein, as applicable-. The aggregate lease rental payable is
 charged to Profit and Loss Account as Rent.
 
 (ii) The Leasing arrangements, which are cancelable at any time on
 month to month basis and in some cases between 11 months to 5 years,
 are usually renewable by mutual consent on mutually agreeable terms.
 Under these arrangements generally refundable interest free deposits
 have been given.
 
 22.  All known liabilities have been taken into consideration.
 
 23.  The previous years figures have been regrouped/reclassified where
 necessary, to conform to the current year''s presentation.