Notes to Accounts of Nahar Poly Films Ltd.

Mar 31, 2025

r) Provisions and contingent liabilities

Provisions are recognised when the company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be
reliably estimated.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle
the present obligation at the end of the reporting period.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence
will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the
control of the Company or where any present obligation cannot be measured in terms of future outflow of resources
or where a reliable estimate of the obligation cannot be made.

s) Employee benefits

(i) Short term obligations

Liabilities for wages and salaries, including non-monetary benefits, if any, that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are recognised in
respect of employees services up to the end of the reporting period and are measured at the amounts expected to be
paid when the liabilities are settled.

(ii) Other long term employee benefit obligations

The liabilities, if any, which needs to be settled after 12 months from the end of the period in which the employees
render the related services are measured as the present value of expected future payments to be made in respect of
services provided by employees up to the end of reporting period using the projected unit credit method.

(iii) Post-employment obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value
of the defined benefit obligations at the end of the reporting period less the fair value of plan assets. The defined
benefit obligation is calculated annually by actuaries using the projected unit credit method.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in other comprehensive income. They are included in retained
earnings in the statement of changes in equity and in the balance sheet.

(iv) Defined contribution plans

Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and
Miscellaneous Provisions Act, 1952 and is charged to the Statement of Profit and Loss.

t) Estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. Management has made judgements, estimates and assumptions that affect the application
of accounting policies and reported amounts of assets, liabilities, income and expenses.

The areas involving critical estimates or judgements are:

- Estimation of current tax expense and payable.

- Designation of financial assets /liabilities through FVTPL.

- Estimation of defined benefit obligation.

- Recognition of deferred tax assets for carried forward tax losses.

Estimates and judgements are continually evaluated. They are based on historical experience and other factors,
including expectations of future events that may have a financial impact on company and that are believed to be
reasonable under the circumstances.

u) Ind As 116-Leases:

On 30 March 2019, MCA has notified Ind AS 116, Leases. Ind AS 116 sets out the principals for the recognition,
measurement, presentation and disclosure of leases and requires leases to account for all leases under a single on-
balance sheet model similar to the accounting for finance leases under Ind AS 17. The standard includes two
recognition exemptions for leases - leases og ''low-value'' assets and short term leases (i.e., leases with lease term of
12 months or less). At commencement date of the lease, a lessee will recognise a liability to make lease payments
(i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the
right-to-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and
the depreciation expenses on the right-to-use asset.

Lessees will be also required to remeasure the lease liability upon the occurance of certain events (e.g., a change in
the lease term, a change in future lease payments resulting from a change in an index or rate used to determine
those payments). The leassee will generally recognise the amount of the remeasurement of the lease liability as an
adjustment to the right-to-use asset. It has no impact on the company.

22.2. Significants accounting judgements, estimates & assumptions

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 accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result
in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognised in the financial statements:

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year, are described below. The Company based its assumptions and estimates on parameters available when
the financial statements were prepared. Existing circumstances and assumptions about future developments, however,
may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity
obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that
may differ from actual developments in the future. These include the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans
operated in India, the management considers the interest rates of government bonds in currencies consistent with the
currencies of the post employment benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and gratuity increases are based
on expected future inflation rates. Further details about gratuity obligations are given in Note:-25 .

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using other valuation techniques. The Inputs to these
models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is
required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is
the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is
based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable
market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model.

Note:- 24 Earnings per share (EPS) (Ind AS 33)

The Company''s Earnings Per Share (''EPS'') is determined based on the net profit attributable to the shareholders'' of the
Company . Basic earnings per share is computed using the weighted average number of shares outstanding during the year.
Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent
shares outstanding during the year including share options, except where the result would be anti-dilutive.

The Company does not fall under any category of sub-section (1) of Section 135 of the Companies Act, 2013, thus there is no CSR obligation
for the financial year 2024-25. However, Board on the recommendation of CSR Committee approved Rs.90 lakhs Contribution to the Oswal
Foundation for undertaking CSR activities under ''Rural Development'' as prescribed in the Schedule VII of the Companies Act, 2013, which
shall be adjusted against next year CSR Obligations.

(Note*-An excess amount of Rs. 3.49 Lakhs is still pending for set-off, from the contribution made in 2022-23 under Health Care Project.
Thus, the total advance for set off is 93.49 Lakhs).

Note:-27 Dues to micro and small suppliers

Under the section 22 of Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2nd October,
2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and
rDords available with the management, there are no outstanding dues to the Micro and Small enterprises as defined in the Micro, Small and
Medium Enterprises Development Act, 2006.

d) Measurement of fair values

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions
were used to estimate the fair values:

(i) The management assessed that the fair values of cash and cash equivalents, other bank balances, trade receivables,
other current financial assets, trade payables and other current financial liabilities approximate their carrying amounts
largely due to the short-term maturities of these instruments.

(ii) The fair value of non-current borrowings and security deposits that approximate to their carrying amounts as it is based
on discounting future cash flows using rates currently available for debts on similar terms, credit risk and remaining
maturities. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.

Note:- 30. Financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of
these financial liabilities is to finance the Company''s operations and to support its operations. The Company''s financial assets
include loans, trade and other receivables, and cash & cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The company''s senior management oversees the
management of these risks. The company''s senior management is supported by a financial risk committee that advises on
financial risks and the appropriate financial risk governance framework for the Company. This financial risk committee
provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by
appropriate policies and procedure and that financial risks are identified, measured and managed in accordance with the
Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each risk, which are
summarised as below:

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk and currency risk. Financial instruments affected by
market risk include loans and borrowings, deposits and payables/receivables in foreign currencies.
a) Market risk- Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the
Company''s long term debt obligations with floating interest rates. The Company is carrying its borrowings primarily at variable
rate.

(B) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to
a financial loss. The Company''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables
and financial assets measured at amortised cost. 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 on financial reporting date

(ii) Moderate credit risk

(iii) High credit risk

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

Cash & 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

Credit risk related to trade receivables are mitigated by taking Credit insurance for domestic sales/letter of credit for export
sales, which results in low credit risk. The Company closely monitors the credit-worthiness of the debtors through internal
systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts.
The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default
is considered to have occurred when amounts receivable become one year past due.

The Company''s capital management objectives are to ensure the Company''s ability to continue as a going concern as well as
to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and
borrowings, trade payables, less cash and cash equivalents and other bank balances.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have
been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period. No changes
were made in the objectives, policies or processes for managing capital during the years ended 31st March 2025 and 31st
March 2024.

Note:- 34 Related party disclosure as per Ind AS 24
a) Disclosure of related parties and relationship between the parties
Nature of relationship

(i) Associates

M/s Nahar Capital & Financial Services Limited

(ii) Key Management Personnel

Mr. Sambhav Oswal (Managing Director), Mr. S. K. Sharma (Executive Director), Mr. Rakesh Jain (Chief Financial
Officer) and Ms. Priya (Company Secretary)

(iii) Directors & their relatives

Mr. Jawahar Lal Oswal (Chairman), Mr. Kamal Oswal (Director), Mr.Dinesh Oswal (Director), Mr. Dinesh Gogna, Mr.
S.K.Singla, Mr. Y.P.Sachdeva, Mr. A.S. Sohi, Mr.Anchal Kumar Jain, Dr.Prem Lata Singla, Rajan Dhir, Dr. Rakesh Kumar

- Quarterly returns or statements of current assets filed by the company with banks or financial institutions are in
agreement with the books of accounts.

- No proceeding have been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988).

- The company has not been declared as wilful defaulter by any bank or financial Institution or other lender

- The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

- There are no transactions which are not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961).

- No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities (""Intermediaries"")
with the understanding (whether recorded in writing or otherwise) that the Intermediary shall lend or invest in party
identified by or on behalf of the company (Ultimate Beneficiaries).

- No funds have been received by the company from any person(s) or entity(ies), including foreign entities ("funding
party") with the understanding, whether recorded in writing or otherwise, that the company shall directly or indirectly lend
or invest in other persons or entities in any manner whatsoever by or on behalf of the funding party ("Ultimate
beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

During the financial year, the Company has not traded or invested in Crypto currency or Virtual Currency.

The company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.

The Board of Directors of Company have proposed the final dividend of Rs.1.00 per equity shares of Rs.5.00 each for the
financial year 2024-25. The proposed final dividend is subject to approval of the members at the ensuing Annual General
Meeting. The amount of such dividend proposed is in accordance with section 123 of Companies Act, 2013.

The figures of the corresponding previous year have been regrouped wherever considered necessary to correspond to
current year disclosures.

This is the notes referred to in our report of even date

For YAPL & Company For Nahar Poly Films Limited

Chartered Accountants
FRN:017800N

Pankaj Lakhanpal Rakesh Jain Priya Sambhav Oswal Dinesh Oswal

(Partner) (Chief Financial Officer) (Company Secretary) Managing Director Director

M.No.097993 (DIN - 07619112) (DIN - 00607290)

Place : Ludhiana

Date : 28.05.2025

UDIN : 25097993BMIXYG2713

---

Mar 31, 2024

r) Provisions and contingent liabilities

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.

s) Employee benefits

(i) Short term obligations

Liabilities for wages and salaries, including non-monetary benefits, if any, that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

(ii) Other long term employee benefit obligations

The liabilities, if any, which needs to be settled after 12 months from the end of the period in which the employees render the related services are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of reporting period using the projected unit credit method.

(iii) Post-employment obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligations at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method. Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

(iv) Defined contribution plans

Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is charged to the Statement of Profit and Loss.

t) Estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management has made judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses.

The areas involving critical estimates or judgements are:

- Estimation of current tax expense and payable.

- Designation of financial assets /liabilities through FVTPL.

- Estimation of defined benefit obligation.

- Recognition of deferred tax assets for carried forward tax losses.

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on company and that are believed to be reasonable under the circumstances.

u) Ind As 116-Leases:

On 30 March 2019, MCA has notified Ind AS 116, Leases. Ind AS 116 sets out the principals for the recognition, measurement, presentation and disclosure of leases and requires leases to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under Ind AS 17. The standard includes two recognition exemptions for leases - leases og ''low-value'' assets and short term leases (i.e., leases with lease term of 12 months or less). At commencement date of the lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-to-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation expenses on the right-to-use asset.

Lessees will be also required to remeasure the lease liability upon the occurance of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The leassee will generally recognise the amount of the remeasurement of the lease liability as an adjustment to the right-to-use asset. It has no impact on the company.

22.2. Significants accounting judgements, estimates & assumptions

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 accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could

result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements,which have the most significant effect on the amounts recognised in the financial statements:

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date,that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities withinthe next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about futuredevelopments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the postemployment benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in Note:-25 .

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using other valuation techniques. The Inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model.

Note-26 Corporate Social Responsibility

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 of Linear Accelerator”, as approved by the consortium at Mohn Dai Oswal Cancer Hospital and Research Foundation, Ludhiana.

During the year 2023-24 CSR committee recommended Rs.148.16 lakhs (Previous year Rs.148.35) being two percent of the average net profits of the company made during the three immediately preceding financial years on CSR activities.

Accordingly to fulfil its obligation under CSR, Board on the recommendation of CSR Committee has already contributed an excess amount of Rs.151.65 lakhs in the previous financial year 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 adjusted an amount of Rs.148.16 Lakhs contributed towards CSR activities from the amount required to be spent on these activities in the current financial year. The amount of Rs.3.49 Lakhs being advance payment for CSR is shown as advance in Other Recoverables under Note 7 - Other Current assets.

Note:-27 Dues to micro and small suppliers

Under the section 22 of Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2nd October, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, there are no outstanding dues to the Micro and Small enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006.

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to support its operations. The Company''s financial assets include loans, trade and other receivables, and cash & cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The company''s senior management oversees the management of these risks. The company''s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. This financial risk committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedure and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each risk, which are summarised as below:

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include loans and borrowings, deposits and payables/receivables in foreign currencies. a) Market risk- Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long term debt obligations with floating interest rates. The Company is carrying its borrowings primarily at variable rate.

d) Market risk- Price risks

The Company''s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet either at fair value through other comprehensive income or at fair value through profit and loss. To manage its price risk arising from investments in equity instruments, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

The Company''s capital management objectives are to ensure the Company''s ability to continue as a going concern as well as to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade payables, less cash and cash equivalents and other bank balances.

Note:-35 Other statutory information:

- Quarterly returns or statements of current assets filed by the company with banks or financial institutions are in agreement with the books of accounts.

- No proceeding have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

- The company has not been declared as wilful defaulter by any bank or financial Institution or other lender

- The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

- There are no transactions which are not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

- No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities (""Intermediaries"") with the understanding (whether recorded in writing or otherwise) that the Intermediary shall lend or invest in party identified by or on behalf of the company (Ultimate Beneficiaries).

- No funds have been received by the company from any person(s) or entity(ies), including foreign entities ("funding party") with the understanding, whether recorded in writing or otherwise, that the company shall directly or indirectly lend or invest in other persons or entities in any manner whatsoever by or on behalf of the funding party ("Ultimate beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

- During the financial year, the Company has not traded or invested in Crypto currency or Virtual Currency.

For YAPL & Company For Nahar Poly Films Limited

Chartered Accountants FRN:017800N

Sakshi Garg Rakesh Jain Priya Sambhav Oswal Dinesh Oswal

(Partner) (Chief Financial Officer) (Company Secretary) Managing Director Director

M.No.553997 (DIN - 07619112) (DIN - 00607290)

Place : Ludhiana

Date : 29.05.2024

UDIN : 24553997BKBZLQ7076

---

Mar 31, 2023

r) Provisions and contingent liabilities

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.

s) Employee benefits

(i) Short term obligations

Liabilities for wages and salaries, including non-monetary benefits, if any, that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

(ii) Other long term employee benefit obligations

The liabilities, if any, which needs to be settled after 12 months from the end of the period in which the employees render the related services are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of reporting period using the projected unit credit method.

(iii) Post-employment obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligations at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

(iv) Defined contribution plans

Contribution to Provident Fund is made in accordance with the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 and is charged to the Statement of Profit and Loss.

t) Estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management has made judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses.

The areas involving critical estimates or judgements are:

- Estimation of current tax expense and payable.

- Designation of financial assets /liabilities through FVTPL.

- Estimation of defined benefit obligation.

- Recognition of deferred tax assets for carried forward tax losses.

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on company and that are believed to be reasonable under the circumstances.

u) Ind As 116-Leases:

On 30 March 2019, MCA has notified Ind AS 116, Leases. Ind AS 116 sets out the principals for the recognition, measurement, presentation and disclosure of leases and requires leases to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under Ind AS 17. The standard includes two recognition exemptions for leases - leases og ''low-value'' assets and short term leases (i.e., leases with lease term of 12 months or less). At commencement date of the lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-to-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation expenses on the right-to-use asset.

Lessees will be also required to remeasure the lease liability upon the occurance of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The leassee will generally recognise the amount of the remeasurement of the lease liability as an adjustment to the right-to-use asset. It has no impact on the company.

22.2. Significants accounting judgements, estimates & assumptions

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 accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements,which have the most significant effect on the amounts recognised in the financial statements:

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date,that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities withinthe next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about futuredevelopments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the postemployment benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in Note:-25 .

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using other valuation techniques. The Inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model.

Reason for Variance of ratios: -

Debt Service Coverage : Due to increase in repayment of term loans and interest for setting up a new unit and reduction in profits.

Return on equity : Due to lower demand and realisation per unit of product there is a reduction in net profit.

Trade payable turnover : Due to increase in sales turnover volume on account of setting up a new unit.

Inventory turnover : Due to increase in sales turnover volume on account of setting up a new unit.

Net capital turnover : Due to increase in sales turnover volume on account of setting up a new unit.

Net Profit : Due to lower demand and realisation per unit of product there is a reduction in net profit.

Return on capital employed : Due to lower demand and realisation per unit of product there is a reduction in net profit.

Return on Investment : Due to Reduction in the amount of dividend received.

This is the notes referred to in our report of even date.

For YAPL & Company For Nahar Poly Films Limited

Chartered Accountants FRN:017800N

Sakshi Garg Rakesh Jain Priya Sambhav Oswal Dinesh Oswal

(Partner) (Chief Financial (Company Managing Director Director

M.No.553997 Officer) Secretary) (DIN - 07619112) (DIN - 00607290)

Place : Ludhiana

Date : 30.05.2023

UDIN : 23553997BGUDUO4703

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Mar 31, 2018

1) Company Overview

Nahar Poly Films Limited (’the company’) is into the business of manufacturing and selling of BOPP films. The company is a public limited company incorporated and domiciled in India and has registered office in Ludhiana, Punjab, India and the manufacturing facility is located Near Mandideep, Bhopal, MP, India. The company has its listing of equity shares on BSE Limited and National Stock Exchange of India Limited.

The financial statements are approved for issue by the company’s Board of Directors on May 30, 2018.

Notes:

(i) Other bank balances include Rs.20.14 lakhs (as at 31st March,2017 Rs.17.58 lakhs and as at 1st April, 2016 Rs. 14.84) held in dividend accounts which is not available for use by the company.

(ii) Deposits with maturity more than three months but less than twelve months are given as security given to Sales Tax Department are now available for withdrawal after the introduction of GST

Securities premium account

Securities premium account comprises of the premium on issue of shares. The reserve is utilised in accordance with the specific provision of the Companies Act, 2013.

General reserve

The General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the

General reserve will not be reclassified subsequently to the statement of profit and loss.

Retained Earnings

Retained earnings refer to net earnings not paid out as dividends, but retained by the company to be reinvested in its core business. This amount is available for distribution of dividends to its equity shareholders.

“Both the term loans are secured by way of first charge (on pari passu basis) on factory land and building and hypothecation of Plant and Machinery and other movable / immovable fixed assets acquired / to be acquired under the project of BOPP plant at Mandideep, Bhopal. It is further secured by Second pari pasu charge on current assets of the company. The Term Loan is personally guaranteed by a Director of the Company and corporate guarantee of Rs. 25.00 crores (Oriental Bank of Commerce) and Rs.15.00 Crores (Punjab National Bank previous year Bank of Maharashtra) given by M/s. Nahar Spinning Mills Ltd. The above Term Loans are repayable in 32 equal quarterly installments starting from 31.12.2010.”

The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgment is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income and the period over which deferred income tax assets will be recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets.

2.2 Significant accounting judgements, estimates & assumptions

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 accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date ,that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the postemployment benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in Note 24

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using other valuation techniques. The Inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model.

3. Earnings per share (EPS) (Ind AS 33)

The Company’s Earnings Per Share (’EPS’) is determined based on the net profit attributable to the shareholders’ of the Company . Basic earnings per share is computed using the weighted average number of shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the year including share options, except where the result would be anti-dilutive.

4. Post Retirement Benefits Plans (Ind AS 19)

Defined Benefit Plan

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. For the funded plan the Company makes contributions to recognised funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

Last year, the company and other group companies have joined hands to undertake the future CSR activities under one umbrella organisation i.e. Oswal Foundation. Oswal Foundation, a special purpose vehicle has been considering new projects in the field of healthcare which are likely to be finalised soon. Whenever it will mature and approved by all the companies under umbrella, the amount of CSR liability will be contributed to Oswal foundation to implement the CSR Project during the year 2017-18. Accordingly the amount of balance CSR obligation of Rs 21.49 Lakhs has been set apart in reserves as at 31st March, 2018.

5. Dues to micro and small suppliers

Under the section 22 of Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2nd October, 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, there are no outstanding dues to the Micro and Small enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006.

(b) Fair value measurement hierarchy

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

Valuation process and technique used to determine fair value

(I) The fair value of investments in government securities, debentures and quoted equity shares is based on the current bid price of respective investment as at the balance sheet date.

(ii) The fair value of investments in mutual fund units is based on the net asset value (NAV) as stated by the issuers of these mutual fund units in the published statements as at the Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2 : The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

d) Measurement of fair values

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

(I) The management assessed that the fair values of cash and cash equivalents, other bank balances, trade receivables, other current financial assets, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

(ii) The fair value of non-current borrowings and security deposits that approximate to their carrying amounts as it is based on discounting future cash flows using rates currently available for debts on similar terms, credit risk and remaining maturities. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.

Note:- 6. Financial risk management objectives and policies

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to support its operations. The Company’s financial assets include loans, trade and other receivables, and cash & cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The company’s senior management oversees the management of these risks. The company’s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. This financial risk committee provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedure and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each risk, which are summarised as below:

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include loans and borrowings, deposits and payables/receivables in foreign currencies.

a) Market risk- Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long term debt obligations with floating interest rates. The Company is carry its borrowings primarily at variable rate.

b) Market risk- Foreign currency risks

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar, EURO and JPY. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the functional currency of the Company. Considering the low volume of foreign currency transactions, the Company’s exposure to foreign currency risk is limited and the Company hence does not use any derivative instruments to manage its exposure. Also, the Company does not use forward contracts and swaps for speculative purposes

Foreign currency sensitivity

The following table demonstrate the sensitivity to a reasonably possible change in exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities. The Company’s exposure to foreign currency changes for all other currencies is not material. _

c) Market risk- Price risks

The Company’s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet either at fair value through other comprehensive income or at fair value through profit and loss. To manage its price risk arising from investments in equity instruments, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

Price sensitivity

The table below summarizes the impact of increases/decreases of the BSE index on the Company’s equity and Gain/Loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company’s equity instruments moved in line with the index.

(B) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company’s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. 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 on financial reporting date

(ii) Moderate credit risk

(iii) High credit risk

Cash & 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

Credit risk related to trade receivables are mitigated by taking Credit insurance for domestic sales/letter of credit for export sales, which results in low credit risk. The Company closely monitors the credit-worthiness of the debtors through internal systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when amounts receivable become one year past due _

Loans and Other financial assets measured at amortised cost

Loans and other financial assets measured at amortized cost includes Security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously.

(c) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company’s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including bilateral loans, debt and overdraft from domestic banks at an optimised cost. It also enjoys strong access to domestic capital markets across equity.

Note:- 7 Capital Management

The Company’s capital management objectives are to ensure the Company’s ability to continue as a going concern as well as to provide a an adequate return to shareholders by pricing products and services commensurately with the level of risk.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade payables, less cash and cash equivalents and other bank balances. _

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period. No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2018 and 31 March 2017.

Note:- 8 First Time Adoption as per Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS. These financial statements, for the year ended 31 March 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1 April 2016, the Company’s date of transition to Ind AS. An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A. Ind AS Optional exemptions availed.

(a) Deemed Cost

Under Ind AS paragraph D7AA of Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and for Investment properties covered by Ind AS 40 Investment Properties.

Accordingly, the Company has elected to measures all of its properties, plant and equipment, Investment property and intangible assets at their previous GAAP carrying values.

B. Ind AS Mandatory exceptions

(a) Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

“Ind AS estimates as at 1st April, 2016 and 31st March, 2017 are consistent with the estimates as at the same date made in the conformity with previous GAAP .The Company has made estimates for following items in accordance with Ind AS at the date of transition as these were not required under IGAAP”

(I) Investments in mutual funds carried at FVTPL

(b) Classification and measurement of financial assets

As required under Ind AS 101 the company has assessed the classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

C. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:

1.) Reconciliation of Balance sheet as at 1st April, 2016 (Transition Date)

2.) (a). Reconciliation of Balance sheet as at 31st March, 2017

(b). Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017

3.) Reconciliation of Equity as at 1st April, 2016 and as at 31st March, 2017

4.) Reconciliation of Income statement as at 31st March, 2017

The presentation requirements under Previous GAAP differs from Ind AS, and hence, Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP

The following explains the material adjustments made while transition from previous accounting standards to Ind AS

(I) Fair valuation of Investments

Under the previous GAAP, investments in equity instruments were classified as long-term investments or current investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments.

Under Ind AS all investments to be measured at fair value at the reporting date and all changes in the fair value have been recognised in retained earnings as at the date of transition and subsequent to the transition date to be recognised in the profit and loss.

(ii) Remeasurements of post employment benefit obligation

Under the previous GAAP, these re-measurement were forming part of the profit or loss for the year.

Under Ind AS, re-measurement i.e. actuarial gain/loss on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss.

Under Previous GAAP, the interest cost on defined benefit liability and expected return on plan assets was recognised as employee benefit expenses in the Statement of Profit and Loss.

(iii) Non Current-Borrowings

Under the previous GAAP, these transaction costs were charged to the profit and loss as and when incurred.

As required under the Ind AS 109 transactions costs incurred towards origination of borrowings have been deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profit and loss over the tenure of the borrowing as interest expense, computed using the effective interest rate method corresponding effect being in Long term borrowings.

(iv) Financial assets and liabilities at amortised cost”

Under previous GAAP, financial assets and liabilities were initially recognised at transaction price. Subsequently, any finance income and finance costs were recognised based on contractual terms. Under Ind AS, such financial instruments are initially recognised at fair value and subsequently carried at amortised cost determined using the effective interest rate. Any difference between transaction price and fair value affects profit and loss unless it quantifies for recognition as some other type of asset or liability.

(v) Proposed dividend

"Under the previous GAAP, dividend payable is recognised as a liability in the period to which it relates. Under Ind AS, dividend to holdersof equity instruments is recognised as a liability in the period in which the obligation to pay is established. Under the previous GAAP, dividends proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.”

(vi) Deferred taxes

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period.

Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.

(vii) Other comprehensive income

"Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Item of income and expense that are not recognised in profit or loss but are shown in the Statement of profit and loss as “other comprehensive income” includes fair value gain / loss on FVOCI equity instruments and remeasurement of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.”

(viii) Retained earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

Classification & Presentation

(ix) Prior period Items

Under previous GAAP, prior period items are included in determination of net profits in which error pertaining to prior period is discovered. Under Ind AS, prior period errors are corrected retrospectively by restating the comparative amounts for the prior periods presented in which the error occurred or if the error occurred before the earliest period presented, by restating the opening balance sheet.

Note:-9 Regrouping and restatement

The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended 31st March, 2017 as compared with the previous GAAP.

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Mar 31, 2016

1. a) The company has not issued any shares in persuance to contract(s) without payment being received in cash during five year immediately preceding the date as at which the Balance Sheet is prepared.

b) The company has not issued any fully paid up Bonus Shares during five year immediately preceding the date as at which the Balance Sheet is prepared.

c) The company has not bought back any Shares during five year immediately preceding the date as at which the Balance Sheet is prepared.

2. Shares Forfeited

Number of shares 349336

Amount 2836688

The above shares are forfeited in financial year 2006-07 upon non payment of calls.

*The Term loan is secured by way of first charge (on pari passu basis) on factory land and building and hypothecation of Plant and Machinary and other movable / immovable fixed assets acquired / to be acquired under the project of BOPP plant at Mandideep, Bhopal. It is further secured by Second pari pasu charge on current assets of the company. The Term Loan is personally guaranteed by a Director of the Company and corporate guarantee of Rs. 25.00 crores (Oriental Bank of Commerce) and Rs.15.00 Crores (Punjab National Bank previous year Bank of Maharashtra) given by M/s. Nahar Spinning Mills Ltd.

The above Term Loans are repayable in 32 equal quarterly installments starting from 31.12.2010."

Working capital facilities under consortium arrangement are secured by way of first pari pasu charge on Current Assets, second pari pasu charge on fixed assets including equitable mortgage of factory land and building of the company and is personally guaranteed by director of the company.

There are no Micro & Small enterprises covered under Micro, Small and Medium Scale Development Act 2006, to whom the company owes dues, which are outstanding for more than 45 days, hence no disclosure has been given. This information has been determined to the extent such parties, which have been identified by the company.

a) There are no intangible assets under development as on 31.03.2016 as well as on 31.03.2015.

b) At each Balance Sheet date, an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of accounts.

c) All the indirect expenses incurred during construction period up to the date of commencement of commercial production are capitalized on various categories of fixed assets on proportionate bases.

d) No borrowing cost has been capitalized during the current as well as in previous financial year.

e) In previous year Fixed Assets have been revised in accordance with Schedule II to The Companies Act, 2013 and based on the transitional provisions provided in Note 7 (b) of schedule - II to the act, an amount of Rs.485344 (Depreciation Rs.718443 reduced by Rs.233099 being Deferred Tax Asset thereon) has been reduced from retained earnings in respect of assets having no useful life as on 1st April 2014 and is included in the figure of depreciation during the year 2014-15 and is not shown separately in the above chart.

*Associates : Nahar Capital & Financial Services Ltd.

"Enterprises over which KMP is able to exercise significant influence:"

Nahar Spinning Mills Ltd.,Nahar Industrial Enterprises Ltd., Oswal Woollen Mills 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., Ruchika Growth Fund (P) Ltd., Sankeshwar Holding Co. Ltd., Vanaik Investors Ltd., Vardhman Investments Ltd., J.L. Growth Fund Ltd., Jawahar Lal & Sons, Monte Carlo Fashions Ltd., Hug foods (P) Ltd., Simran & Shanaya Co.Ltd., Sidhant & Mannat Co.Ltd., Palm Motels Ltd., Suvrat Trading Co. Ltd., Amloh Industries Ltd.

Key Management Personnel and their Relatives

Sh. Jawahar Lal Oswal, Sh. Dinesh Oswal, Sh. Kamal Oswal, Sh. S.K. Sharma, Mrs. Abhilash Oswal, Mrs. Ruchika Oswal, Mrs. Manish Oswal, Mrs. Ritu Oswal and Mrs. Monika Oswal

3. Contigent Liabilities

PROVISION AND CONTIGENT LIABILITIES

a) Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if :

- the company has a present obligation as a result of past event.

- a probable outflow of resources embodying economic benefits is expected to settle the obligation and

- the amount of the obligation can be reliably estimated.

b) Contingent Liability is disclosed in case of :

- a present obligation arising from a past event when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or

- a possible obligation, unless the probability of outflow in settlement is remote.

4. GENERAL

5) Material events occurring after the balance sheet date are taken into cognizance.

6) Prior period and extra ordinary items of changes in account policies having material impact on the financial affairs of the Company (if any) are disclosed.

7) The accounts of the company have been prepared on going concern basis.

8) In the opinion of the Board, the value of Current Assets, Loans and Advances have a value in the ordinary courses of business at least equal to that stated in the Balance Sheet.

9) The company has only one reportable business segment and therefore no separate disclosure is required in accordance with Accounting Standard (AS)-17 on “segment reporting" notified by the Company (Accounting Standards) Rules, 2006.

10) Some balances of Sundry Creditors, Advances and Sundry Debtors are subject to their confirmation.

11) 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 Nil

b) Amount Spent Nil

However the company jointly with other group companies have joined hands under one umbrela, namely Oswal Foundation to carry our CSR activities in future.

12) Previous year figures has been regrouped/reclassified to confirm the current year classification.

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Mar 31, 2015

1. a) The company has not issued any shares in persuance to contract(s) without payment being received in cash during five year immediately preceding the date as at which the Balance Sheet is prepared.

b) The company has not issued any fully paid up Bonus Shares during five year immediately preceding the date as at which the Balance Sheet is prepared.

c) The company has not bought back any Shares during five year immediately preceding the date as at which the Balance Sheet is prepared.

2. Shares Forfeited

Number of shares 349336

Amount 2836688

The above shares are forfeited in financial year 2006-07 upon non payment of calls.

Key Management Personnel

Sh. Jawahar Lal Oswal, Sh. Dinesh Oswal, Sh. Kamal Oswal and Sh. S.K. Sharma.

Relatives of Key Management Personnel

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

3. Contigent Liabilities

PROVISION AND CONTIGENT LIABILITIES

a) Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if :

* the company has a present obligation as a result of past event.

* a probable outflow of resources embodying economic benefits is expected to settle the obligation and

* the amount of the obligation can be reliably estimated.

b) Contingent Liability is disclosed in case of :

* a present obligation arising from a past event when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or

* a possible obligation, unless the probability of outflow in settlement is remote.

Particulars Current Year Previous Year

(i) Contingent Liabilities

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

(b) Guarantees Nil Nil

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

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed not provided for on Account of: -Capital Nature 488267 9726960

-Other 2914016 Nil

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

(c) Letter of Credit outstanding in 9071697 15752822 favour of Suppliers of Goods (Net of Advances)

(d) Other commitments (specify nature) Nil Nil 12473980 25479782

4. GENERAL

1) Material events occurring after the balance sheet date are taken into cognizance.

2) Prior period and extra ordinary items of changes in account policies having material impact on the financial affairs of the Company (if any) are disclosed.

3) The accounts of the company have been prepared on going concern basis.

4) In the opinion of the Board, the value of Current Assets, Loans and Advances have a value in the ordinary courses of business at least equal to that stated in the Balance Sheet.

5) The company has only one reportable business segment and therefore no separate disclosure is required in accordance with Accounting Standard (AS)-17 on "segment reporting" notified by the Company (Accounting Standards) Rules, 2006.

6) Some balances of Sundry Creditors, Advances and Sundry Debtors are subject to their confirmation.

7) 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. 169854

b) Amount Spent Nil

However the company jointly with other group companies have joined hands under one umbreia, namely Oswal Foundation to carry our CSR activities in future.

5. Previous year figures has been regrouped/reclasified to confirm the current year classification.

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Mar 31, 2014

1. a) There are no intengible assets under development as on 31.03.2013 as well as on 31.03.2014.

b) At each Balance Sheet date, an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of accounts.

c) In respect of new unit, the expenditure incurred during construction period up to the date of commencement of commercial production is allocated to the relevant fixed assets.

d) All the indirect expenses incurred during construction period upto the date of commencement of commercial production will be capitalized on various categories of fixed assets on proportionate bases.

e) No borrowing cost has been capitalized during the current as well as in previous financial year.

*Associates

Nahar Spinning Mills Ltd., Nahar Capital & Financial Services Ltd., Nahar Industrial Enterprises Ltd., Oswal Woollen MillsLtd., Vanaik Spinning Mills Ltd., Abhilash Growth Fund (P) Ltd., Atam Vallabh Financers Ltd., Bermuda Insurance 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., Ruchika Growth Fund (P) Ltd., Sankeshwar Holding Co. Ltd., Vanaik Investors Ltd., Vardhman Investments Ltd.,J.L. Growth Fund Ltd., Jawahar Lal &Sons, Monte Carlo Fashions Ltd., Hugfoods(P) Ltd., Simran & Shanaya Co.Ltd.,Sidhant &MannatCo.Ltd.

Key Management Personnel

Sh.Jawahar Lal Oswal, Sh. Dinesh Oswal, Sh. Kamal Oswal and Sh. S.K. Sharma.

Relatives of Key Management Personnel

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

2. Contigent Liabilities

PROVISION AND CONTIGENT LIABILITIES

a) Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if:

* the company has a present obligation as a result of past event.

* a probable outflow of resources embodying economic benefits is expected to settle the obligation and

* the amount of the obligation can be reliably estimated.

b) Contingent Liability is disclosed in case of:

* a present obligation arising from a past event when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or

* a possible obligation, unless the probability of outflow in settlement is remote.

Particulars Current Year Previous Year Rs. Rs.

(i) Contingent Liabilities

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

(b) Guarantees Nil Nil

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

(ii) Commitments

(a) Estimated amount of 97,26,960 89,27,689 contracts remaining to be executed on capital account and not provided for (b) Uncalled liability on shares Nil Nil and other investments partly paid

(c) Letter of Credit outstanding 157,52,822 237,50,128 in favour of Suppliers of Goods (Net of Advances) (d) Othercommitments Nil Nil (specifynature) 254,79,782 326,77,817

WARRANTY CLAIMS

As per the nature of business of the company, the question of warranty claims does not arise. The routine claims on account of quality or quantity logged with the company other than those which are disputed one, are accounted for as and when accepted by the company.

3. GENERAL

1) Material events occurring after the balance sheet date are taken into cognizance.

2) Prior period and extra ordinary items of changes in account policies having material impact on the financial affairs of the Company (if any) are disclosed.

3) The accounts of the company have been prepared on going concern basis.

4) In the opinion of the Board, the value of Current Assets, Loans and Advances have a value in the ordinary courses of business at least equal to that stated in the Balance Sheet.

5) The company has only one reportable business segment and therefore no separate disclosure is required in accordance with Accounting Standard (AS)-17 on "segment reporting" notified by the Company (Accounting Standards) Rules, 2006.

6) Some balances of Sundry Creditors, Advances and Sundry Debtors are subject to their confirmation.

7) During the current year, the company has recognized Sales tax incentive of Rs.614.34 Lacs of previous two years period. Earlier the company''s management was of the opinion that the income on account of sales tax incentive receivable from state government should be recognized only at the time of actual receipt by the company, since the amount accrues and available only after the assessment of the respective financial years and is being allowed to be set off against the subsequent year Liability of sales tax. Now as per the opinion expressed by our experts, we are recognizing this income on year to year basis. The current year income is accounted in last quarter.

8) Other operating income includes commodity deeling income of Nil, Previous Year Rs.4,54,36,500.

9) Previous year figures has been regrouped/reclasified to confirm the current year classification.

---

Mar 31, 2013

1.1 a) The company has not issued any shares in persuance to contract(s) without payment being received in cash during five year immediately preceding the date as at which the Balance Sheet is prepared.

b) The company has not issued any fully paid up Bonus Shares during five year immediately preceding the date as at which the Balance Sheet is prepared.

c) The company has not bought back any Shares during five year immediately preceding the date as at which the Balance Sheet is prepared.

2. Contigent Liabilities

PROVISION AND CONTIGENT LIABILITIES

a) Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if :

- the company has a present obligation as a result of past event.

- a probable outflow of resources embodying economic benefits is expected to settle the obligation and

- the amount of the obligation can be reliably estimated.

b) Contingent Liability is disclosed in case of :

- a present obligation arising from a past event when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or

- a possible obligation, unless the probability of outflow in settlement is remote.

3. GENERAL

1) Material events occurring after the balance sheet date are taken into cognizance.

2) Prior period and extra ordinary items of changes in account policies having material impact on the financial affairs of the Company (if any) are disclosed. PBT before Prior period items is Rs.(105708324) (P.Y. Rs. 130440787).

3) The accounts of the company have been prepared on going concern basis.

4) In the opinion of the Board, the value of Current Assets, Loans and Advances have a value in the ordinary courses of business at least equal to that stated in the Balance Sheet.

5) The company has only one reportable business segment and therefore no separate disclosure is required in accordance with Accounting Standard (AS)-17 on "segment reporting" notified by the Company (Accounting Standards) Rules, 2006.

6) Some balances of Sundry Creditors, Advances and Sundry Debtors are subject to their confirmation.

7) The company is eligible for sales tax incentive/subsidy from the government of MP. During the year the company has been granted sales tax incentive/subsidy amounting to Rs. Nil (Previous year Rs.15961892 for the financial year 2010-11) to be adjusted against future sales tax liabilities of the company. The company is accounting the above sales tax subsidy on receipt bases as the availability of the above subsidy is only on the bases of completion of certain formalities.

8) Other operating income includes commodity deeling income of Rs. 45436500.

9) Previous year figures has been regrouped/reclasified to confirm the current year classification.

---

Mar 31, 2012

1. a) The company has not issued any shares in persuance to contract(s) without payment being received in cash during five year immediately preceding the date as at which the Balance Sheet is prepared.

b) The company has not issued any fully paid up Bonus Shares during five year immediately preceding the date as at which the Balance Sheet is prepared.

c) The company has not bought back any Shares during five year immediately preceding the date as at which the Balance Sheet is prepared.

*The Term loan is secured by way of first charge (on pari passu basis) on factory land and building and hypothecation of Plant and Machinary and other movable / immovable fixed assets acquired / to be acquired under the project of BOPP plant at Mandideep, Bhopal. It is further secured by Second pari pasu charge on current assets of the company. The Term Loan is personally guaranted by a Director of the Company and corporate guarantee of Rs. 25.00 crores (Oriental Bank of Commerce) and Rs.15.00 Crores (To Bank of Maharashtra) given by M/s. Nahar Spinning Mills Ltd.

The above term loans are repayable in installments as per terms of respective agreement over a period of 8-10 years after moratorium period of 2-3 years.

a) There are no intengible assets under development as on 31.03.2011 as well as on 31.03.2012.

b) At each Balance Sheet date, an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of accounts.

c) In respect of new unit, the expenditure incurred during construction period up to the date of commencement of commercial production is allocated to the relevant fixed assets.

d) All the indirect expenses incurred during construction period upto the date of commencement of commercial production will be capitalized on various categories of fixed assets on proportionate bases.

e) Borrowing cost amounting to Rs. Nil (Previous year Rs. 14593713 Lacs)has been capitalized during the year.

'Associates

Nahar Spinning Mills Ltd., Nahar Capital & Financial Services Ltd., Nahar Industrial Enterprises Ltd., Oswal Woollen MillsLtd., Vanaik Spinning Mills Ltd., Abhilash Growth Fund (P) Ltd., Atam Vallabh Financers Ltd., Bermuda Insurance BrokersPvt. Ltd., Kovalam Investments & Trading Co. Ltd., Ludhiana Holdings Ltd., Monica Growth Fund (P) Ltd., Nagdevi Trading& Investment Co. Ltd., Nahar Growth Fund (P) Ltd., Neha Credit & Investment (P) Ltd., Ogden Trading & Investment Co.(P) Ltd., Ruchika Growth Fund (P) Ltd., Sankeshwar Holding Co. Ltd., Vanaik Investors Ltd., Vardhman Investments Ltd.,J.L. Growth Fund Ltd., Jawahar Lal & Sons.

Key Management Personnel

Sh. Jawahar Lal Oswal, Sh. Dinesh Oswal, Sh. Kamal Oswal and Sh. S.K. Sharma.

Relatives of Key Management Personnel

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

2. Contingent Liabilities

PROVISION AND CONTIGENT LIABILITIES

a) Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if : - the company has a present obligation as a result of past event.

- a probable outflow of resources embodying economic benefits is expected to settle the obligation and

- the amount of the obligation can be reliably estimated.

b) Contingent Liability is disclosed in case of :

- a present obligation arising from a past event when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or

- a possible obligation, unless the probability of outflow in settlement is remote.

Particulars Current Year Previous Year

(i) Contingent Liabilities

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

(b) Guarantees Nil Nil

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

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed 40541 Nil on capital account and not provided for

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

(c) Letter of Credit outstanding in favour of Suppliers of Goods 16214522 11668258 (Net of Advances)

(d) Other commitments (specify nature) Nil Nil

Total 16255063 11668258

WARRANTY CLAIMS

As per the nature of business of the company, the question of warranty claims does not arise. The routine claims on account of quality or quantity logged with the company other than those which are disputed one, are accounted for as and when accepted by the company.

31. GENERAL

1) Material events occurring after the balance sheet date are taken into cognizance.

2) Prior period and extra ordinary items of changes in account policies having material impact on the financial affairs of the Company (if any) are disclosed.

3) The accounts of the company have been prepared on going concern basis.

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

5) The company has only one reportable business segment and therefore no separate disclosure is required in accordance with Accounting Standard (AS)-17 on "segment reporting" notified by the Company (Accounting Standards) Rules, 2006.

6) Some balances of Sundry Creditors, Advances and Sundry Debtors are subject to their confirmation.

7) The company is eligible for sales tax incentive/subsidy from the government of MP. During the year the company has been granted sales tax incentive/subsidy amounting to Rs.15961892 lacs for the financial year 2010-11 (Previous year Nil) to be adjusted against future sales tax liabilities of the company. The company is accounting the above sales tax subsidy on receipt bases as the availability of the above subsidy is only on the bases of completion of certain formalities.

8) The financial statements for the year ended 31-03-2012 have been prepared as per the requirement of the revised schedule VI to the companies Act, 1956 as per notification issued by the Central Government. The prior period figures has been accordingly regrouped reclassified to confirm the current year classification.

---

Mar 31, 2011

A. CONTIGENT LIABILITIES NOT PROVIDED FOR: Current Previous Year Year Rs. Rs.

a) Estimated amount of contacts to be executed on capital account (net of advances) Nil 4,24,33,373/-

b) Bank Guarantees (Net of Margin Money) Nil Nil

c) Letters of Credit outstanding in favour of Suppliers of goods (Net of advance) 1,16,68,258/- 9,566,191/-

d) The Company has given guarantee aggregating to Rs. NIL (P.Y. Rs. 25.00 crores) to financial institutions on behalf of others.

1. Material events occurring after the balance sheet date are taken into cognizance.

2. Prior period and extra ordinary items of changes in account policies having material impact on the financial affairs of the Company (if any) are disclosed.

3. The accounts of the company have been prepared on going concern basis.

4. In the opinion of the Board, the value of Current Assets, Loans and Advances have a value in the ordinary courses of business at least equal to that stated in the Balance Sheet.

5. The company has only one reportable business segment and therefore no separate disclosure is required in accordance with Accounting Standard (AS)-17 on "segment reporting" notified by the Company (Accounting Standards) Rules, 2006.

6. Previous year figures have been regrouped and rearranged.

7. Borrowing cost amounting to Rs.145.93 Lacs (Previous year Rs.212.29 Lacs)has been capitalized during the year.

8. Some balances of Sundry Creditors, Advances and Sundry Debtors are subject to their confirmation.

9. 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:

Nahar Spinning Mills Ltd., Nahar Capital & Financial Services Ltd., Nahar Industrial Enterprises Ltd., Oswal Woollen Mills 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., Ruchika Growth Fund (P) Ltd., Sankeshwar Holding Co. Ltd., Vanaik Investors Ltd., Vardhman Investments Ltd., J.L. Growth Fund Ltd., Jawahar & Sons.

Key Management Personnel

Sh. Jawahar Lal Oswal, Sh. Dinesh Oswal, Sh. Kamal Oswal and Sh. S.K. Sharma.

Relatives of Key Management Personnel

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

NOTE : 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.

10. There are no Micro & Small enterprises covered under Micro, Small and Medium Scale Development Act 2006, to whom the company owes dues, which are outstanding for more than 45 days, hence no disclosure has been given. This information has been determined to the extent such parties, which have been identified by the company.

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Mar 31, 2010

A. CONTIGENT LIABILITIES NOT PROVIDED FOR:

Current Year Previous Year

Rs. Rs.

a) Estimated amount of contacts to be

executed on capital account (net of advances) 4,24,33,373/- 36,15,22,937/-

b) Bank Guarantees (Net of Margin Money) Nil Nil

c) Letters of Credit outstanding in favour of

Suppliers of goods (Net of advance) 95,66,191/- 74,49,70,275/-

d) The Company has given

guarantee aggregating to Rs. 25.00 crores (P.Y. Rs. 25.00 crores) to financial institutions on behalf of others.



1. Material events occurring after the balance sheet date are taken into cognizance.

2. Prior period and extra ordinary items of changes in account policies having material impact on the financial affairs of the Company (if any) are disclosed.

3. The accounts of the company have been prepared on going concern basis.

4. In the opinion of the Board, the value of Current Assets, Loans and Advances have a value in the ordinary courses of business at least equal to that stated in the Balance Sheet.

5. The company has only one reportable business segment and therefore no separate disclosure is required in accordance with Accounting Standard (AS)-17 on "segment reporting" notified by the Company (Accounting Standards) Rules, 2006.

6. Previous year figures have been regrouped and rearranged.

7. 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:

*Associates

Nahar Spinning Mills Ltd., Nahar Capital & Financial Services Ltd., Nahar Industrial Enterprises Ltd., Oswal Woollen Mills 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., Ruchika Growth Fund (P) Ltd., Sankeshwar Holding Co. Ltd., Vanaik Investors Ltd., Vardhman Investments Ltd., J.L. Growth Fund Ltd., Jawahar Lal & Sons.

Key Management Personnel

Sh. Jawahar Lal Oswal, Sh. Dinesh Oswal, Sh. Kamal Oswal and Sh. S.K. Sharma.

Relatives of Key Management Personnel

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

NOTE : 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.

8. As the Company is at the initial stage of implementation of project, and has not taken up any type of manufacturing activities, so the information as per provisions of Micro, Small and Medium Enterprises Development Act, 2006, has not been given, being there are no trade liabilities incurred by the company during the financial year. On the bases of effectiv e capital, remuneration paid to Executive director is with in the limits specified in clause 1 and 2 of section II of Part II of.