The investment activities of Nahar Spinning Mills Limited was transferred to Nahar Capital & Financial Services Limited pursuant to the composite scheme of Demerger and Arrangement between Nahar Spinning Mills Limited, Nahar Exports Limited & Nahar Capital & Financial Services Limited as sanctioned by the Hon’ble Punjab and Haryana High Court at Chandigarh vide order dated December 21, 2006.

NCFSL is registered as Non Banking Finance Company (NBFC) mainly to carry out the existing Investment business transferred from NSML i.e. the business of Investment in Shares, Debentures, Stock, Bonds and Securities of any kind issued by Companies, Banks, Mutual Funds, Any Authority, Central, State, Municipal, Local and to invest subscribe, purchase, acquire and/or sell or otherwise place funds by way of deposit to any body corporate, firm, person, any other authority or association whether falling under the same management or otherwise, in accordance with and to the extent permissible under the applicable provisions of the Companies Act 1956 with or without security and on such terms as may be determined from time to time However, the company shall not carry on the business of Banking as defined under the Banking Regulations Act, 1949 without the approval of RBI.

NCFSL may also undertake new activities in future such as financial consultancy, lending against securities, Infrastructure Financing, merchant banking, underwriting business, stock broking, and other miscellaneous finance activities generally undertaken by the NBFC’s after obtaining the requisite approvals.

As on 31st March, 2010, the Company’s investment is of 37722.23 Lacs which consist of an optimum blend of financial securities such as Equity Shares, Bonds, Convertible and Non Convertible Debentures and different schemes of Mutual Funds. The Investment business has generated very good returns and during the last three years, the Company earned returns on investments of 2504.91 Lacs in 2009-10, 1501.95 Lacs in 2008-09 and 3465.26 Lacs in 2007-08