The Hon’ble High Court of Punjab And Haryana at Chandigarh has sanctioned the composite scheme (the scheme) of Demerger and Arrangement between Nahar Spinning Mills Limited (NSML), Nahar Exports Limited (NEL) & Nahar Capital & Financial Services Limited (NCFSL) vide order dated December 21,2006 (Order). The said Order is subject to NCFSL obtaining the Certificate of Commencement of Business from Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh and also registration from the Reserve Bank of India as Non Banking Financial Company (NBFC) with in six months from the said Order, failing which the scheme of arrangement shall be revoked to the extent applicable in respect of NSML and NCFSL. The said Order allows the transfer of the Investment Business of NSML to NCFSL and the allotment of equity shares of the Company to the shareholders of NSML as laid down in the scheme The aforesaid Order of the Hon’ble High Court of Punjab & Haryana at Chandigarh High Court was filed by NCFSL with the Registrar of Companies (ROC), Punjab, Himachal Pradesh and Chandigarh on January 12, 2007, which is the Effective Date of the Scheme. Pursuant to Sections 391 to 394 of the Companies Act, 1956 the entire Investment Business of NSML has been transferred to and vested in the NCFSL w.e.f. April 1, 2006 (the Appointed Date under the Scheme). In accordance with the said Scheme, the Equity Shares of the Company issued pursuant to Scheme as well as its existing shares issued for the purpose of incorporation shall, subject to applicable regulations, be listed and admitted to trading on the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE). Such listing and admission for trading is not automatic and will be subject to fulfillment by the NCFSL of listing criteria of BSE and NSE for such issues and also subject to such other terms and conditions as may be prescribed by BSE and NSE at the time of the application by the NCFSL seeking listing.