Notes to Accounts of Nahar Capital & Financial Services Ltd.

Mar 31, 2025

m) Provisions, contingent assets and contingent liabilities

Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable
estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each
reporting date and adjusted to reflect the current best estimates. Provisions are discounted to their present values,
where the time value of money is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not wholly within the control of the Company
or

• Present obligations arising from past events where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
Contingent assets are neither recognised nor disclosed except when realisation of income is virtually certain,
related asset is disclosed.

n) Financial instruments

A Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs.
Subsequent measurement of financial assets and financial liabilities is described below.

Non-derivative financial assets
Subsequent measurement

i. A Financial assets carried at amortised cost

A financial asset is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal

and interest (SPPI) on the principal amount outstanding.

• After initial measurement, such financial assets are subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included
in interest income in the Statement of Profit and Loss

ii. Investments in equity instruments

Investments in equity instruments which are held for trading are classified as at fair value through profit or loss
(FVTPL). For all other equity instruments, the Company makes an irrevocable choice upon initial recognition, on
an instrument by instrument basis, to classify the same either as at fair value through other comprehensive income
(FVOCI) or fair value through profit or loss (FVTPL). Amounts presented in other comprehensive income are not
subsequently transferred to profit or loss. However, the Company transfers the cumulative gain or loss within
equity. Dividends on such investments are recognised in profit or loss unless the dividend clearly represents a
recovery of part of the cost of the investment.

iii. Investments in mutual funds/venture capital funds/alternative investment funds (AIF) - Investments in
mutual funds, venture capital funds and AIF are measured at fair value through profit and loss (FVTPL).

iv. Investments held for trading purposes - The Company has investments in equity instruments, mutual funds,
debentures, real estate properties, bonds etc. which are held for trading purposes and therefore, classified as at
fair value through profit or loss (FVTPL).

De-recognition of financial assets

Financial assets (or where applicable, a part of financial asset or part of a group of similar financial assets) are
derecognised (i.e. removed from the Company''s balance sheet) when the contractual rights to receive the cash flows
from the financial asset have expired, or when the financial asset and substantially all the risks and rewards are
transferred. Further, if the Company has not retained control, it shall also derecognise the financial asset and recognise
separately as assets or liabilities any rights and obligations created or retained in the transfer.

Non-derivative financial liabilities
Subsequent measurement

Subsequent to initial recognition, all non-derivative financial liabilities are measured at amortised cost using the
effective interest method.

De-recognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in
the Statement of Profit and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.

o) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding
during the period. The weighted average number of equity shares outstanding during the period is adjusted for
events including a bonus issue.

For the purpose of calculating diluted earnings per share, the net profit or loss (interest and other finance cost
associated) for the period attributable to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Segment reporting

The Company identifies segment basis the internal organization and management structure. The operating
segments are the segments for which separate financial information is available and for which operating profit/loss
amounts are regularly by the executive committee (''chief operating decision maker'') in deciding how to allocate
resources and in assessing performance. The accounting policies adopted for segment reporting are in line with

the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment
liabilities have been identified to segments on the basis of their relationship with the operating activities of the
segment.

q) Significant management judgement in applying accounting policies and estimation uncertainty

The preparation of the Company''s financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the related
disclosures. Actual results may differ from these estimates.

Significant management judgements

Recognition of deferred tax assets - The extent to which deferred tax assets can be recognized is based on an
assessment of the probability of the future taxable income against which the deferred tax assets can be utilized.
Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of
assets requires assessment of several external and internal factors which could result in deterioration of
recoverable amount of the assets.

Provisions - At each balance sheet date basis the management judgment, changes in facts and legal aspects,
the Company assesses the requirement of provisions against the outstanding contingent liabilities. However, the
actual future outcome may be different from this judgement.

Significant Estimates

Useful lives of depreciable/amortisable assets - Management reviews its estimate of the useful lives of
depreciable/amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in
these estimates relate to technical and economic obsolescence that may change the utility of assets.

Defined benefit obligation (DBO) - Management''s estimate of the DBO is based on a number of underlying
assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases.
Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit
expenses.

Fair value measurements - Management applies valuation techniques to determine the fair value of financial
instruments (where active market quotes are not available). This involves developing estimates and assumptions
consistent with how market participants would price the instrument.

21.1 General reserve

The Company has transferred a portion of the net profit before declaring dividend to general reserve pursuant to the earlier
provision of Companies Act 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

21.2 Securities premium reserve

Securities premium reserve represents premium received on issue of shares. The reserve is utilised in accordance with the
provisions of the Companies Act, 2013.

21.3 Retained earnings

All the profits made by the Company are transferred to retained earnings from statement of profit and loss.

21.4 Reserve Fund u/s 45-IC of RBI Act 1934

The Company creates a reserve fund in accordance with the provisions of section 45-IC of the Reserve Bank of India Act,
1934 and transfers therein an amount of euqal to/more than twenty percent of its net profit of the year, before declaration of
dividend. Accordingly, during the year, the Company has created Statutary Reserve Fund amounting to Rs. 610 Lakhs.

21.5 Other comprehensive income

(i) The Company has elected to recognise changes in the fair value of certain investments in equity securities in other
comprehensive income. These changes are accumulated within the FVOCI reserve within equity. The Group transfers
amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

(ii) The Company has recognised remeasurements of defined benefits plans through other comprehensive income.

Valuation Techniques for fair value disclosures (Level 1 , Level 2 and Level 3)

(A) Investment in Quoted Equity Investments - Level 1 - Investment in listed equity instruments are measured at their readily
available quoted price in the market.

(B) Investment in Unquoted Equity Investments - Level 3 - the Company has used earning capitalisation method (fair value
approach) discounted at a rate to reflect the risk involved in the business.

(C) Investment in Mutual funds - Level 1 - Investment in mutual funds are measured at their readily available net asset value (NAV)
(per unit) in the market.

(D) Investment in Venture Capital Funds and Alternative Investment Funds Level 3 - Investment in venture capital funds and
alternative investment funds are measured at their fair value as per the Net Asset Value (NAV) Certificate shared by the
fund/investee party.

Valuation methodologies of financial instruments not measured at fair value

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not
recorded and measured at fair value in the Company''s financial statements. These fair values were calculated for disclosure
purposes only. The below methodologies and assumptions relate only to the instruments in the above tables:

Financial assets and liabilities

For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying amounts, which are
net of impairment, are a reasonable approximation of their fair value. Such instruments include: cash and balances, balances other
than cash and cash equivalents, loans, trade payables, short term borrowings, inter company loan and contract liability without a
specific maturity.

Investments measured at amortised cost

Investments which are carried at amortised cost represents investments in debt instruments including non convertible preference
shares. The fair values of such investments are determined using rates available in the market.

43 Financial risk management
i) Risk Management

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s board of directors has overall
responsibility for the establishment and oversight of the Company risk management framework. The Company''s risk are
managed by a treasury department under policies approved by the board of directors. The board of directors provides written
principles for overall risk management. This note explains the sources of risk which the entity is exposed to and how the entity
manages the risk and the related impact in the financial statements.

In order to avoid excessive concentrations of risk, the Group''s policies and procedures include specific guidelines to focus on
maintaining a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

A) Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to credit risk is
influenced mainly by cash and cash equivalents, other bank balances, investments, loan assets, trade receivables and other
financial assets. The Company continuously monitors defaults of customers and other counterparties and incorporates this
information into its credit risk controls.
a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for
each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class
of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

(i) Low credit risk

(ii) Moderate credit risk

(iii) High credit risk

The company provides for expected credit loss based on the following:

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying
bank deposits and accounts in different banks across the country.

Trade receivables

Trade receivables measured at amortized cost and credit risk related to these are managed by monitoring the recoverability of such
amounts continuously.

Loans

Credit risk related to borrower''s are mitigated by considering collateral''s/bank guarantees/letter of credit, from borrower''s. The
Company closely monitors the credit-worthiness of the borrower''s through internal systems and project appraisal process to assess
the credit risk and define credit limits of borrower, thereby, limiting the credit risk to pre-calculated amounts. These processes include
a detailed appraisal methodology, identification of risks and suitable structuring and credit risk mitigation measures. The Company
assesses increase in credit risk on an ongoing basis for amounts loan receivables that become past due and default is considered to
have occurred when amounts receivable become one year past due.

Other financial assets measured at amortized cost

Other financial assets measured at amortized cost includes loans and advances to employees, security deposits, insurance claim
receivables and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such
amounts continuously.

b) Credit risk exposure

i) Expected credit losses for financial assets other than loans

Company provides for expected credit losses on financial assets other than loans by assessing individual financial instruments

for expectation of any credit losses:

- For cash and cash equivalents and other bank balances - Since the Company deals with only high-rated banks and
financial institutions, credit risk in respect of cash and cash equivalents, other bank balances and bank deposits is
evaluated as very low.

- For investments - Considering the investments are in equity shares, mutual funds, and government securities, credit risk is
considered low.

- For loans comprising security deposits paid - Credit risk is considered low because the Company is in possession of the
underlying asset.

- For other financial assets - Credit risk is evaluated based on Company''s knowledge of the credit worthiness of those parties
and loss allowance is measured for 12 month expected credit losses upon initial recognition and provide for lifetime
expected credit losses upon significant increase in credit risk. The Company does not have any expected loss based
impairment recognised on such assets considering their low credit risk nature, though the reconciliation of expected credit
loss for all sub categories of financial assets (other than loans) are disclosed below:

ii) Expected credit loss for loans

The Company follows a ''three-stage'' model for impairment based on changes in credit quality since initial recognition as
summarised below:

A financial instrument that is not credit-impaired on initial recognition is classified in ''Stage 1'' and has its credit risk continuously
monitored by the Company i.e. the default in repayment is within the range of 0 to 30 days.

If a significant increase in credit risk (''SICR'') since initial recognition is identified, the financial instrument is moved to ''Stage 2''
but is not yet deemed to be credit-impaired i.e. the default in repayment is within the range of 31 to 90 days.

If the financial instrument is credit-impaired, the financial instrument is then moved to ''Stage 3'' i.e. the default in repayment is
more than 90 days.

The Expected Credit Loss (ECL) is measured at 12-month ECL for Stage 1 loan assets and at lifetime ECL for Stage 2 and Stage
3 loan assets. ECL is the product of the Probability of Default, Exposure at Default and Loss Given Default.

Forward-looking economic information (including management overlay) is included in determining the 12-month and lifetime
PD, EAD and LGD. The assumptions underlying the expected credit loss are monitored and reviewed on an ongoing basis.

B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure as far
as possible, that it will have sufficient liquidity to meet its liabilities when they are due.

The Company maintains felxibility in funding by maintaining availability under committed credit lines. Management monitors the
Company''s liquidity positions (also comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of
expected cash flows. The Company also takes into account liquidity of the market in which the entity operates.

44. Capital management

The Company''s capital management objectives are

- to ensure the Company''s ability to continue as a going concern

- to comply with externally imposed capital requirement and maintain strong credit ratings

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the
face of balance sheet.

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure while
avoiding excessive leverage. This takes into account the subordination levels of the Company''s various classes of debt. The
Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk
characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount
of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

46. GENERAL

i) 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.

ii) The Ministry of Corporate Affairs has issued Indian Accounting Standard(Ind AS) - 36 on impairment of assets. 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 12 to 14 of the standards)m with regards t 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.

49. Mr. Dinesh Oswal, Managing Director has been paid remuneration from 1st April 2024 to 31st March 2025 as per Shareholders approval
vide their Special Resolutions dated 29th September 2021 and 25th September 2024 under section 197 read with Schedule V of the
Companies Act, 2013.

50. Company had invested Rs. 2.00 Crore in Rated, Listed and Secured, Cumulative, redeemable Debentures of ATS Infrabuild Pvt. Ltd.
(“ATS”) in 27-06-2018, being maturity in June 2022, later extended till June 2024. The borrower had paid the interest yearly on time, but
from June 2023 onwards borrower has defaulted in interest payment. The debenture trustee is resorting to all legal action available to
recover the amounts.

Keeping above facts in view, our company has not provided for interest accrued/receivable from June 2023 and also a provision of 20%
of value has been made in books of accounts.

For Gupta Vigg & Company For and on behalf of

Chartered Accountants Nahar Capital And Financial Services Limited

FRN 001393N

Vinod Khanna Anjali Modgil Hans Raj Kapoor S.K. Sharma Dinesh Oswal

Partner Company Secretary Chief Financial Officer Director Managing Director

M.No. 81585 M.No. FCS9650 DIN : 00402712 DIN : 00607290

Place : Ludhiana

Date : 28th May 2025

UDIN : 25081585BMLDYR9287

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Mar 31, 2024

(i) Rights, preferences and restrictions attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs 5 each . Each equity shareholder is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

21.1 General reserve

The Company has transferred a portion of the net profit before declaring dividend to general reserve pursuant to the earlier provision of Companies Act 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

21.2 Securities premium reserve

Securities premium reserve represents premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

21.3 Retained earnings

All the profits made by the Company are transferred to retained earnings from statement of profit and loss.

21.4 Reserve Fund u/s 45-IC of RBI Act 1934

The Company creates a reserve fund in accordance with the provisions of section 45-IC of the Reserve Bank of India Act, 1934 and transfers therein an amount of euqal to/more than twenty percent of its net profit of the year, before declaration of dividend. Accordingly, during the year, the Company has created Statutary Reserve Fund amounting to Rs. 775.00 Lakhs.

21.5 Other comprehensive income

(i) The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI reserve within equity. The Group transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

(ii) The Company has recognised remeasurements of defined benefits plans through other comprehensive income.

(c) “To meet its CSR Obligation under Sec 135 of Companies Act, 2013 and as per the company''s CSR policy approved and adopted by the Board of Directors, company joined hands with Group Companies under one umbrella, to undertake the CSR Projects through Oswal Foundation. Oswal Foundation is a Registered Society formed in the year 2006 having its charitable objects in various fields. It has already registered itself with the Ministry of Corporate Affairs with vide Registration no. cSr0000145 for undertaking CSR activities.

During the year, the Foundation has undertaken “Health Care Project”, at Mohan Dai Oswal Cancer Hospital and Research Foundation, Ludhiana.

During the financial year 2023-24, the Board on the recommendation of CSR committee recommended Rs.65.14 lakhs (Previous year Rs.23.52 lakhs), for CSR obligation being two percent of the average net profits of the company for three immediately preceding financial years.

The Company has already made the contribution for an amount of Rs. 1 Crore to the Oswal Foundation for undertaking the project under “Promoting Healthcare” in the financial year 2022-23 out of which an amount of Rs. 23.52 Lakhs was adjusted against Company''s CSR Obligation for the financial year 2022-23. The Board of Directors vide their resolution dated 10th November, 2022 on the recommendation of CSR Committee, approved to set off the balance amount of Rs. 76.48 Lakhs of contribution already made by Company to the Oswal Foundation, against Company''s CSR obligation for the financial year 2023-24 for undertaking the project under “Promoting Healthcare” as prescribed in the Schedule VII of the Companies Act, 2013 and falls under Company''s Corporate Social Responsibility (CSR) Policy. Accordingly, out of Rs. 76.48 Lakhs, an amount of Rs. 65.14 Lakhs has been set off against Company''s CSR obligation for the financial year 2023-24 and remaining amount of Rs. 11.34 Lakhs will be set off against Company''s CSR obligation for the immediately succeeding financial years as per Rule 7 of Companies (Corporate Social Responsibility Policy) Rules, 2014.

A. Gratuity

The Company has a defined benefit gratuity plan. Every employee is entitled to gratuity as per the provisions of the Payment of Gratuity Act, 1972. The scheme is funded by the Company and is managed by separate trust. The liability of Gratuity is recognized on the basis of actuarial valuation.

The summarized position of various defined benefits recognized in the Statement of Profit & Loss, Balance Sheet and the funded status is as under:

Notes to actuarial assumptions:

1) The discount rate is based on the prevailing market yield of Government of India bonds as at the balance sheet date for the estimated terms of obligations.

2) The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these not calculated.

Sensitivities as rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not applicable.

The above sensitivity analysis is based on a change an assumption while holding all other assumptions constant. In practice this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defind benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied which was applied while calculating the defined benefit obligation liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to previous year.

37	Commitments
	Particulars	For the year ended March 31,2024	For the year ended March 31,2023
(A)	Contingent Liabilities not provided for in respect of: (i) Contracts remaining to be executed on capital account - Uncalled liability on shares, Investment Property and other Investments partly Paid (ii) Other com mitments - Demand of Income Tax Payable for A.Y. 2013 -2014 & 2015-2016 Contested by Company	2,693.74 29.67	1,675.72 29.67
		2,723.41	1,705.39

B Fair values hierarchy

Financial assets and financial liabilities are measured at fair value in the financial statements and are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

The categories used are as follows:

Level 1: Quoted prices (unadjusted) for identical instruments in an active market;

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and Level 3: Inputs which are not based on observable market data (unobservable inputs).

Valuation Techniques for fair value disclosures (Level 1 , Level 2 and Level 3)

(A) Investment in Quoted Equity Investments - Level 1 - Investment in listed equity instruments are measured at their readily available quoted price in the market.

(B) Investment in Unquoted Equity Investments - Level 3 - the Company has used earning capitalisation method (fair value approach) discounted at a rate to reflect the risk involved in the business.

(C) Investment in Mutual funds - Level 1 - Investment in mutual funds are measured at their readily available net asset value (NAV) (per unit) in the market.

(D) Investment in Venture Capital Funds and Alternative Investment Funds Level 3 - Investment in venture capital funds and alternative investment funds are measured at their fair value as per the Net Asset Value (NAV) Certificate shared by the fund/investee party.

Valuation methodologies of financial instruments not measured at fair value

Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not recorded and measured at fair value in the Company''s financial statements. These fair values were calculated for disclosure purposes only. The below methodologies and assumptions relate only to the instruments in the above tables:

Financial assets and liabilities

For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying amounts, which are net of impairment, are a reasonable approximation of their fair value. Such instruments include: cash and balances, balances other than cash and cash equivalents, loans, trade payables, short term borrowings, inter company loan and contract liability without a specific maturity.

Investments measured at amortised cost

Investments which are carried at amortised cost represents investments in debt instruments including non convertible preference shares. The fair values of such investments are determined using rates available in the market.

43 Financial risk management i) Risk Management

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s board of directors has overall responsibility for the establishment and oversight of the Company risk management framework. The Company''s risk are managed by a treasury department under policies approved by the board of directors. The board of directors provides written principles for overall risk management. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

In order to avoid excessive concentrations of risk, the Group''s policies and procedures include specific guidelines to focus on maintaining a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

A) Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to credit risk is influenced mainly by cash and cash equivalents, other bank balances, investments, loan assets, trade receivables and other financial assets. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

(i) Low credit risk

(ii) Moderate credit risk

(iii) High credit risk

The company provides for expected credit loss based on the following:

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in statement of profit and loss.

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

Trade receivables

Trade receivables measured at amortized cost and credit risk related to these are managed by monitoring the recoverability of such amounts continuously.

Loans

Credit risk related to borrower''s are mitigated by considering collateral''s/bank guarantees/letter of credit, from borrower''s. The Company closely monitors the credit-worthiness of the borrower''s through internal systems and project appraisal process to assess the credit risk and define credit limits of borrower, thereby, limiting the credit risk to pre-calculated amounts. These processes include a detailed appraisal methodology, identification of risks and suitable structuring and credit risk mitigation measures. The Company assesses increase in credit risk on an ongoing basis for amounts loan receivables that become past due and default is considered to have occurred when amounts receivable become one year past due.

Other financial assets measured at amortized cost

Other financial assets measured at amortized cost includes loans and advances to employees, security deposits, insurance claim receivables and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously.

b) Credit risk exposure

i) Expected credit losses for financial assets other than loans

Company provides for expected credit losses on financial assets other than loans by assessing individual financial instruments

for expectation of any credit losses:

- For cash and cash equivalents and other bank balances - Since the Company deals with only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents, other bank balances and bank deposits is evaluated as very low.

- For investments - Considering the investments are in equity shares, mutual funds, and government securities, credit risk is considered low.

- For loans comprising security deposits paid - Credit risk is considered low because the Company is in possession of the underlying asset.

- For other financial assets - Credit risk is evaluated based on Company''s knowledge of the credit worthiness of those parties and loss allowance is measured for 12 month expected credit losses upon initial recognition and provide for lifetime expected credit losses upon significant increase in credit risk. The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature, though the reconciliation of expected credit loss for all sub categories of financial assets (other than loans) are disclosed below:

ii) Expected credit loss for loans

The Company follows a ''three-stage'' model for impairment based on changes in credit quality since initial recognition as summarised below:

A financial instrument that is not credit-impaired on initial recognition is classified in ''Stage 1'' and has its credit risk continuously monitored by the Company i.e. the default in repayment is within the range of 0 to 30 days.

If a significant increase in credit risk (''SICR'') since initial recognition is identified, the financial instrument is moved to ''Stage 2'' but is not yet deemed to be credit-impaired i.e. the default in repayment is within the range of 31 to 90 days.

If the financial instrument is credit-impaired, the financial instrument is then moved to ''Stage 3'' i.e. the default in repayment is more than 90 days.

The Expected Credit Loss (ECL) is measured at 12-month ECL for Stage 1 loan assets and at lifetime ECL for Stage 2 and Stage 3 loan assets. ECL is the product of the Probability of Default, Exposure at Default and Loss Given Default.

Forward-looking economic information (including management overlay) is included in determining the 12-month and lifetime PD, EAD and LGD. The assumptions underlying the expected credit loss are monitored and reviewed on an ongoing basis.

B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.

The Company maintains felxibility in funding by maintaining availability under committed credit lines. Management monitors the Company''s liquidity positions (also comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. The Company also takes into account liquidity of the market in which the entity operates.

C) Market risk Price risk i) Exposure

The Company''s exposure price risk arises from investments held and classified in the balance sheet either as fair value through other comprehensive income or at fair value through profit or loss. To manage the price risk arising from investments, the Company diversifies its portfolio of assets.

44. Capital management

The Company''s capital management objectives are

- to ensure the Company''s ability to continue as a going concern

- to comply with externally imposed capital requirement and maintain strong credit ratings

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company''s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

45. 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 Ind-AS-108 " Operating Segment", the details are as under:

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 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.

Mr. Dinesh Oswal, Managing Director has been paid remuneration from 1st April 2023 to 31st March 2024 as per Shareholders approval vide their special Resolution dated 29th September 2021 under section 197 read with Schedule V of the Companies Act, 2013.

49. Company had invested Rs. 2.00 Crore in Rated, Listed and Secured, Cumulative, redeemable Debentures of ATS Infrabuild Pvt. Ltd. (“ATS”) in 27-06-2018, being having maturity in June 2022, later extended till June 2024. The borrower had paid the interest yearly on time, but from June 2023 onwards borrower has defaulted in interest payment. The debenture trustee is resorting to all legal action available to recover the amounts.

Keeping above facts in view, our company has not provided for interest accrued/receivable from June 2023 and also a provision of 10% of value has been made in books of accounts.

51. The previous year figures regrouped/reclassified as per latest statutory requirements and latest NBFC categorisation.

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Mar 31, 2023

m) Provisions, contingent assets and contingent liabilities

Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Provisions are discounted to their present values, where the time value of money is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not wholly within the control of the Company or

• Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are neither recognised nor disclosed except when realisation of income is virtually certain, related asset is disclosed.

n) Financial instruments

A Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs. Subsequent measurement of financial assets and financial liabilities is described below.

Non-derivative financial assets Subsequent measurement

i. A Financial assets carried at amortised cost

A financial asset is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

• After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in interest income in the Statement of Profit and Loss.

ii. Investments in equity instruments

Investments in equity instruments which are held for trading are classified as at fair value through profit or loss (FVTPL). For all other equity instruments, the Company makes an irrevocable choice upon initial recognition, on an instrument by instrument basis, to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL). Amounts presented in other comprehensive income are not subsequently transferred to profit or loss. However, the Company transfers the cumulative gain or loss within equity. Dividends on such investments are recognised in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.

iii. Investments in mutual funds/venture capital funds/alternative investment funds (AIF) - Investments in mutual funds, venture capital funds and AIF are measured at fair value through profit and loss (FVTPL).

iv. Investments held for trading purposes - The Company has investments in equity instruments, mutual funds, debentures, bonds etc. which are held for trading purposes and therefore, classified as at fair value through profit or loss (FVTPL).

De-recognition of financial assets

Financial assets (or where applicable, a part of financial asset or part of a group of similar financial assets) are derecognised (i.e. removed from the Company''s balance sheet) when the contractual rights to receive the cash flows from the financial asset have expired, or when the financial asset and substantially all the risks and rewards are transferred. Further, if the Company has not retained control, it shall also derecognise the financial asset and recognise separately as assets or liabilities any rights and obligations created or retained in the transfer.

Non-derivative financial liabilities Subsequent measurement

Subsequent to initial recognition, all non-derivative financial liabilities are measured at amortised cost using the effective interest method.

De-recognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective

carrying amounts is recognised in the Statement of Profit and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

o) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue.

For the purpose of calculating diluted earnings per share, the net profit or loss (interest and other finance cost associated) for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

p) Segment reporting

The Company identifies segment basis the internal organization and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are regularly by the executive committee (''chief operating decision maker'') in deciding how to allocate resources and in assessing performance. The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship with the operating activities of the segment.

q) Significant management judgement in applying accounting policies and estimation uncertainty

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the related disclosures. Actual results may differ from these estimates.

Significant management judgements

Recognition of deferred tax assets - The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the future taxable income against which the deferred tax assets can be utilized.

Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.

Provisions - At each balance sheet date basis the management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future outcome may be different from this judgement.

Significant estimates

Useful lives of depreciable/amortisable assets - Management reviews its estimate of the useful lives of depreciable/amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of assets.

Defined benefit obligation (DBO) - Management''s estimate of the DBO is based on a number of underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

Fair value measurements - Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instrument.

(c) "To meet its CSR Obligation under Sec 135 of Companies Act, 2013 and as per the company’s CSR policy approved and adopted by the Board of Directors, company joined hands with Group Companies under one umbrella, to undertake the CSR Projects through Oswal Foundation. Oswal Foundation is a Registered Society formed in the year 2006 having its charitable objects in various fields. It has already registered itself with the Ministry of Corporate Affairs with vide Registration no. CSR0000145 for undertaking CSR activities.

The foundation is going to undertake "Health Care Project”, as approved by the consortium at Mohan Dai Oswal Cancer Hospital and Research Foundation, Ludhiana.

During the financial year 2022-23 CSR committee recommended Rs.23.52 lakhs (Previous year Rs.46.15 lakhs), for CSR obligation being two percent of the average net profits of the company for three immediately preceding financial years.

Accordingly, to fulfil its obligation under CSR, Board on the recommendation of CSR Committee decided to contribute an amount of Rs. 100 lakhs (Previous year Rs.46.15 lakhs) to the Oswal Foundation for undertaking Health care projects as approved by the consortium of the Group Companies formed to undertake CSR activities through Oswal Foundation.

As per the decision of CSR committee, the company has debited in p & l account only current years’ liability of Rs. 23.52 lakhs and the

Loans

Credit risk related to borrower''s are mitigated by considering collateral’s/bank guarantees/letter of credit, from borrower''s. The Company closely monitors the credit-worthiness of the borrower''s through internal systems and project appraisal process to assess the credit risk and define credit limits of borrower, thereby, limiting the credit risk to pre-calculated amounts. These processes include a detailed appraisal methodology, identification of risks and suitable structuring and credit risk mitigation measures. The Company assesses increase in credit risk on an ongoing basis for amounts loan receivables that become past due and default is considered to have occurred when amounts receivable become one year past due.

Other financial assets measured at amortized cost

Other financial assets measured at amortized cost includes loans and advances to employees, security deposits, insurance claim receivables and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously.

B. Credit risk exposure

(i) Expected credit losses for financial assets other than loans

Company provides for expected credit losses on financial assets other than loans by assessing individual financial instruments for expectation of any credit losses:

- For cash and cash equivalents and other bank balances - Since the Company deals with only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents, other bank balances and bank deposits is evaluated as very low.

- For investments - Considering the investments are in equity shares, mutual funds, and government securities, credit risk is considered low.

- For loans comprising security deposits paid - Credit risk is considered low because the Company is in possession of the underlying asset.

- For other financial assets - Credit risk is evaluated based on Company''s knowledge of the credit worthiness of those parties and loss allowance is measured for 12 month expected credit losses upon initial recognition and provide for lifetime expected credit losses upon significant increase in credit risk. The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature, though the reconciliation of expected credit loss for all sub categories of financial assets (other than loans) are disclosed below:

Mr. Dinesh Oswal, Managing Director has been paid remuneration from 1st April 2022 to 31st March 2023 as per Shareholders approval vide their special Resolution dated 29th September 2021 under section 197 read with Schedule V of the Companies Act, 2013.

49 Ratios

Company has already reported the same in Note 47 and no other ratios are applicable to us.

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

For Gupta Vigg & Company For and on behalf of

Chartered Accountants Nahar Capital And Financial Services Limited

FRN 001393N

Vinod Kumar Khanna Anjali Modgil Hans Raj Kapoor S.K. Sharma Dinesh Oswal

(Partner) Company Secretary Chief Financial Officer Director Managing Director

M.No. 81585 M.No. FCS9650 DIN : 00402712 DIN : 00607290

Place : Ludhiana

Date : 30th May 2023

UDIN :23081585BGSDY1893

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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.