NAHARSPG

Nahar Spinning Mills Ltd. has informed the Exchange that the Board of Directors of the Company in their meeting held on September 04, 2006 have decided that the company should enter into new line of business of real estate subject to the approval of shareholders. The company is authorised to undertake the proposed business under sub clause 12 (a & b) of Clause - III C of the object clause of the Memorandum of Association of the Company. Further the said business of real estate shall be undertaken in Nahar Spinning Mills Limited.

Nahar Spinning Mills Ltd. has informed the Exchange that the Board in its meeting held on March 30, 2006 have approved the scheme of Demerger and Arrangement between Nahar Spinning Mills Limited (hereinafter referred to as �NSML�) and Nahar Exports Limited (hereinafter referred to as �NEL�). Pursuant to the Scheme NSML, shall demerge and transfer its investment business to a new company Nahar Capital and Financial Services Limited (hereinafter referred to as 'NCFSL') to be formed for the purpose of taking over the investment business of NSML. On the transfer of investment business as per schem

paid up value of Rs 6.5 per share shall stand extinguished from the books of NEL upon transfer of textile business to NSML. The remaining paid up value of Rs.3.5 per equity shares of residual undertaking of NEL shall be reorganised into equity capital of Rs.5/-per share through this scheme of Demerger and Arrangement. Thus upon sanction of the scheme shareholders of NEL holding 100 Fully paid up equity shares of Rs.10/- each on the record date to be fixed for the purspose, shall receive 55 Fully paid up equity shares of Rs.5/- each in NSML.(post demerger of investment business) and 70 Fully pa