View Filing Data

$ 88,993,000

$ 98,354,000

ALAMO GROUP INC. [Member]

$ 558,546,000

$ 489,273,000

Description of company

^{[1],[2],[3],[4]}

Tractor-mounted mowing and mobile excavation equipment for governmental, industrial and agricultural markets; street-sweeping equipment for municipalities.

^{[1],[2],[3],[4],[5]}

22.00%

^{[1],[2],[3],[4],[6]}

‡2,832,300 shares common stock (acquired 4-1-73 thru 5-09-11)

2,830,300 shares common stock (acquired 4-1-73 thru 5-25-07)

^{[1],[2],[3],[4]}

$ 2,190,937

ATLANTIC CAPITAL BANCSHARES, INC. [Member]

^{[1],[2],[3],[4],[7]}

$ 85,138,938

$ 62,266,600

^[2],[4],[5]

1.90%

^[2],[4],[6]

300,000 shares common stock (acquired 4-10-07)

^[2],[4]

$ 3,000,000

^[2],[4],[7]

$ 2,299,000

$ 2,257,000

BALCO, INC. [Member]

^{[2],[3],[4],[5]}

95.70%

90.90%

^{[2],[3],[4],[6]}

445,000 shares common stock and 60,920 shares Class B non-voting common stock (acquired 10-25-83 and 5-30-02)

^[2],[3],[4]

$ 624,920

BOXX TECHNOLOGIES, INC. [Member]

^{[2],[3],[4],[7]}

$ 4,100,000

$ 5,200,000

^{[1],[2],[4],[5]}

14.90%

^{[1],[2],[4],[6]}

3,125,354 shares Series B Convertible Preferred Stock, convertible into 3,125,354 shares of common stock at $0.50 per share (acquired 8-20-99 thru 8-8-01)

^[1],[2],[4]

$ 1,500,000

CINATRA CLEAN TECHNOLOGIES, INC. [Member]

^{[1],[2],[4],[7]}

$ 600,000

$ 2

^[2],[4],[5]

73.40%

68.80%

^[2],[4]

$ 13,563,842

$ 10,124,714

CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 1 [Member]

^[2],[4],[7]

$ 6,002,348

$ 10,124,714

^[2],[4],[6]

12% subordinated secured promissory note, due 2016 (acquired 5-19-10 thru 10-20-10)

12% subordinated secured promissory note, due 2012 (acquired 5-19-10 thru 10-20-10)

^[2],[4]

$ 779,278

$ 890,604

CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 2 [Member]

^[2],[4],[7]

$ 444,189

$ 890,604

^[2],[4],[6]

12% subordinated secured promissory note, due 2017 (acquired 5-9-11 thru 10-26-11)

10% subordinated secured promissory note, due 2013 (acquired 7-14-08 thru 4-28-10)

^[2],[4]

$ 2,285,700

$ 6,200,700

CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 3 [Member]

^[2],[4],[7]

$ 1,302,849

$ 6,200,700

^[2],[4],[6]

12% subordinated secured promissory note, due 2016 (acquired 9-9-11 and 10-26-11)

3,033,410 shares Series A Convertible Preferred Stock, convertible into 3,033,410 shares common stock at $1.00 per share (acquired 7-14-08 thru 11-18-10)

^[2],[4]

$ 1,264,754

$ 3,033,410

CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 4 [Member]

^[2],[4],[7]

$ 720,910

$ 3,033,410

^[2],[4],[6]

10% subordinated secured promissory note, due 2017 (acquired 7-14-08 thru 4-28-10)

^[2],[4]

$ 6,200,700

CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 5 [Member]

^[2],[4],[7]

$ 3,534,399

^[2],[4],[6]

3,033,410 shares Series A Convertible Preferred Stock, convertible into 3,033,410 shares common stock at $1.00 per share (acquired 7-14-08 thru 11-18-10)

^[2],[4]

$ 3,033,410

CINATRA CLEAN TECHNOLOGIES, INC. [Member] | Investment Type 6 [Member]

^[2],[4],[7]

$ 1

^[2],[4],[6]

Warrants to purchase 1,269,833 shares of common stock at $1.00 per share, expiring 2021 (acquired 5-9-11 thru 8-31-11)

^[2],[4]

$ 0

ENCORE WIRE CORPORATION [Member]

^[2],[4],[7]

$ 0

^{[1],[2],[4],[5],[8]}

16.90%

^{[1],[2],[4],[6],[8]}

‡4,086,750 shares common stock (acquired 7-16-92 thru 10-7-98)

4,086,750 shares common stock (acquired 7-16-92 thru 10-7-98)

^{[1],[2],[4],[8]}

$ 5,800,000

EXTREME INTERNATIONAL, INC. [Member]

^{[1],[2],[4],[7],[8]}

$ 121,458,210

$ 81,735,000

^[2],[4],[5]

53.60%

^[2],[4]

$ 3,325,875

EXTREME INTERNATIONAL, INC. [Member] | Investment Type 1 [Member]

^[2],[4],[7]

$ 10,162,000

$ 11,603,000

^[2],[4],[6]

13,035 shares Series A Common Stock (acquired 9-26-08 and 12-18-08)

^[2],[4]

$ 325,875

EXTREME INTERNATIONAL, INC. [Member] | Investment Type 2 [Member]

^[2],[4],[7]

$ 714,000

$ 815,000

^[2],[4],[6]

39,359.18 shares Series C Convertible Preferred Stock, convertible into 157,437.72 shares of common stock at $25.00 per share (acquired 9-30-03)

^[2],[4]

$ 2,625,000

EXTREME INTERNATIONAL, INC. [Member] | Investment Type 3 [Member]

^[2],[4],[7]

$ 8,626,000

$ 9,850,000

^[2],[4],[6]

3,750 shares 8% Series A Convertible Preferred Stock, convertible into 15,000 shares of common stock at $25.00 per share (acquired 9-30-03)

^[2],[4]

$ 375,000

^[2],[4],[7]

$ 822,000

$ 938,000

HEELYS, INC. [Member]

^{[2],[3],[4],[5],[8]}

31.10%

31.60%

^{[2],[3],[4],[6],[8]}

‡9,317,310 shares common stock (acquired 5-26-00)

9,317,310 shares common stock (acquired 5-26-00)

^{[2],[3],[4],[8]}

$ 102,490

^{[2],[3],[4],[7],[8]}

$ 20,498,082

$ 19,193,659

HOLOGIC, INC. [Member]

^{[2],[4],[5],[8]}

1.00%

^{[2],[4],[6],[8]}

‡632,820 shares common stock (acquired 8-27-99)

^[2],[4],[8]

$ 220,000

^{[2],[4],[7],[8]}

$ 13,637,271

$ 14,042,276

iMEMORIES, INC. [Member]

^[2],[4],[5]

25.30%

27.20%

^[2],[4]

$ 5,078,479

$ 5,000,000

iMEMORIES, INC. [Member] | Investment Type 1 [Member]

^[2],[4],[7]

$ 5,078,479

$ 5,000,000

^[2],[4],[6]

17,391,304 shares Series B Convertible Preferred Stock, convertible into 19,891,304 shares of common stock at $0.23 per share (acquired 7-10-09)

10% convertible promissory note, due 2012 (acquired 9-13-10)

^[2],[4]

$ 4,000,000

$ 1,000,000

iMEMORIES, INC. [Member] | Investment Type 2 [Member]

^[2],[4],[7]

$ 4,000,000

$ 1,000,000

^[2],[4],[6]

4,684,967 shares Series C Convertible Preferred Stock, convertible into 4,684,967 shares of common stock at $0.23 per share (acquired 7-20-11)

17,391,304 shares Series B Convertible Preferred Stock, convertible into 17,391,304 shares of common stock at $0.23 per share (acquired 7-10-09)

^[2],[4]

$ 1,078,479

$ 4,000,000

iMEMORIES, INC. [Member] | Investment Type 3 [Member]

^[2],[4],[7]

$ 1,078,479

$ 4,000,000

^[2],[4],[6]

Warrants to purchase 2,500,000 shares of common stock at $0.12 per share, expiring 2020 (acquired 9-13-10 thru 1-21-11)

Warrant to purchase 968,750 shares of common stock at $0.12 per share, expiring 2020 (acquired 9-13-10)

^[2],[4]

$ 0

INSTAWARES HOLDING COMPANY, LLC [Member]

^[2],[4],[7]

$ 0

Description of company

^[2],[4]

Provides services to the restaurant industry via its five subsidiary companies.

^[2],[4],[5]

4.50%

^[2],[4],[6]

3,846,154 Class D shares (acquired 5-20-11)

^[2],[4]

$ 5,000,000

KBI BIOPHARMA, INC. [Member]

^[2],[4],[7]

$ 5,000,000

^[2],[4],[5]

17.10%

^[2],[4],[6]

7,142,857 shares Series B-2 Convertible Preferred Stock, convertible into 10,204,082 shares of common stock at $0.49 per share (acquired 9-08-09)

^[2],[4]

$ 5,000,000

MEDIA RECOVERY, INC. [Member]

^[2],[4],[7]

$ 3,200,000

$ 4,200,000

^[2],[4],[5]

97.90%

97.50%

^[2],[3],[4]

$ 5,415,000

MEDIA RECOVERY, INC. [Member] | Investment Type 1 [Member]

^{[2],[3],[4],[7]}

$ 18,700,000

$ 18,100,000

^[2],[4],[6]

800,000 shares Series A Convertible Preferred Stock, convertible into 800,000 shares of common stock at $1.00 per share (acquired 11-4-97)

^[2],[4]

$ 800,000

MEDIA RECOVERY, INC. [Member] | Investment Type 2 [Member]

^[2],[4],[7]

$ 3,100,000

$ 3,000,000

^{[2],[3],[4],[6]}

4,000,002 shares common stock (acquired 11-4-97)

^[2],[3],[4]

$ 4,615,000

^{[2],[3],[4],[7]}

$ 15,600,000

$ 15,100,000

PALLETONE, INC. [Member]

^[2],[4],[5]

7.70%

8.40%

^[1],[2],[4]

$ 1,703,150

$ 1,748,896

PALLETONE, INC. [Member] | Investment Type 1 [Member]

^{[1],[2],[4],[7]}

$ 2,000,002

$ 1,600,002

^[2],[4],[6]

12.3% senior subordinated notes, $2,000,000 principal due 2015 (acquired 9-25-06)

^[2],[4]

$ 1,553,150

PALLETONE, INC. [Member] | Investment Type 2 [Member]

^[2],[4],[7]

$ 2,000,000

^[1]

$ 1,600,000

^[2],[4],[6]

150,000 shares common stock (acquired 10-18-01)

^[1]

150,000 shares common stock (acquired 10-18-01)

^[2],[4]

$ 150,000

^[1]

$ 150,000

PALLETONE, INC. [Member] | Investment Type 3 [Member]

^[2],[4],[7]

$ 2

^[1]

$ 2

^[2],[4],[6]

Warrant to purchase 15,294 shares of common stock at $1.00 per share, expiring 2011 (acquired 2-17-06)

^[2],[4]

$ 45,746

THE RECTORSEAL CORPORATION [Member]

^[2],[4],[7]

$ 0

^{[2],[3],[4],[5]}

100.00%

^{[2],[3],[4],[6]}

27,907 shares common stock (acquired 1-5-73 and 3-31-73)

^[2],[3],[4]

$ 52,600

TCI HOLDINGS, INC. [Member]

^{[2],[3],[4],[7]}

$ 166,300,000

$ 144,700,000

^[2],[4],[5]

0.00%

^[2],[4],[6]

21 shares 12% Series C Cumulative Compounding Preferred Stock (acquired 1-30-90)

^[2],[4]

$ 0

TRAX HOLDINGS, INC. [Member]

^[2],[4],[7]

$ 802,000

$ 840,778

^[2],[4],[5]

29.40%

30.70%

^[2],[4],[6]

1,061,279 shares Series A Convertible Preferred Stock, convertible into 1,077,203 common stock at $4.64 per share (acquired 12-8-08 and 2-17-09)

^[2],[4]

$ 8,200,000

$ 5,000,000

TRAX HOLDINGS, INC. [Member] | Investment Type 1 [Member]

^[2],[4],[7]

$ 9,800,000

$ 5,758,030

^[2],[4],[6]

18% convertible promissory note, $3,200,000 principal due 2012 (acquired 4-6-11 thru 11-10-11)

^[2],[4]

$ 3,200,000

TRAX HOLDINGS, INC. [Member] | Investment Type 2 [Member]

^[2],[4],[7]

$ 3,200,000

^[2],[4],[6]

1,061,279 shares Series A Convertible Preferred Stock, convertible into 1,061,279 common stock at $4.64 per share (acquired 12-8-08 and 2-17-09)

^[2],[4]

$ 5,000,000

VIA HOLDINGS, INC. [Member]

^[2],[4],[7]

$ 6,600,000

^[2],[4],[5]

3.20%

28.10%

^[2],[4],[6]

12,686 shares common stock (acquired 3-4-11 and 3-25-11)

^[2],[4]

$ 4,926,290

^[2],[4],[7]

$ 2

$ 4

WELLOGIX, INC. [Member]

^{[1],[2],[4],[5]}

19.10%

19.20%

^{[1],[2],[4],[6]}

4,788,371 shares Series A-1 Convertible Participating Preferred Stock, convertible into 4,788,371 shares of common stock at $1.0441 per share (acquired 8-19-05 thru 6-15-08)

^[1],[2],[4]

$ 5,000,000

THE WHITMORE MANUFACTURING COMPANY [Member]

^{[1],[2],[4],[7]}

$ 25,000

$ 2

^{[2],[3],[4],[5]}

80.00%

^{[2],[3],[4],[6]}

80 shares common stock (acquired 8-31-79)

^[2],[3],[4]

$ 1,600,000

ALL COMPONENTS, INC. [Member]

^{[2],[3],[4],[7]}

$ 67,200,000

$ 55,600,000

^[2],[4],[5]

80.40%

^[2],[4]

$ 2,150,000

ALL COMPONENTS, INC. [Member] | Investment Type 1 [Member]

^[2],[4],[7]

$ 13,499,940

^[2],[4],[6]

8.25% subordinate note, $2,000,000 principal due 2012 (acquired 6-27-07)

^[2],[4]

$ 2,000,000

ALL COMPONENTS, INC. [Member] | Investment Type 2 [Member]

^[2],[4],[7]

$ 2,000,000

^[2],[4],[6]

150,000 shares Series A Convertible Preferred Stock; convertible into 600,000 shares of common stock at $0.25 per share (acquired 9-16-94)

^[2],[4]

$ 150,000

ALL COMPONENTS, INC. [Member] | Investment Type 3 [Member]

^[2],[4],[7]

$ 8,431,388

^[2],[4],[6]

Warrant to purchase 350,000 shares of common stock at $11.00 per share, expiring 2017 (acquired 6-27-07)

^[2],[4]

$ 0

PALM HARBOR HOMES, INC. [Member]

^[2],[4],[7]

$ 3,068,552

^{[2],[3],[4],[5],[8]}

30.40%

^{[2],[3],[4],[8]}

$ 10,931,955

PALM HARBOR HOMES, INC. [Member] | Investment Type 1 [Member]

^{[2],[3],[4],[7],[8]}

$ 2

^{[2],[3],[4],[6],[8]}

7,855,121 shares common stock (acquired 1-3-85 thru 7-31-95)

^{[2],[3],[4],[8]}

$ 10,931,955

PALM HARBOR HOMES, INC. [Member] | Investment Type 2 [Member]

^{[2],[3],[4],[7],[8]}

$ 2

^{[2],[3],[4],[6],[8]}

Warrant to purchase 286,625 shares of common stock at $3.14 per share, expiring 2019 (acquired 4-24-09)

^{[2],[3],[4],[8]}

$ 0

PHI HEALTH, INC. [Member]

^{[2],[3],[4],[7],[8]}

$ 0

^[2],[4],[5]

67.00%

^[2],[4]

$ 5,752,339

PHI HEALTH, INC. [Member] | Investment Type 1 [Member]

^[2],[4],[7]

$ 5,752,339

^[2],[4],[6]

1,559,111 shares Series A-1 Convertible Preferred Stock convertible into 1,559,111 shares of common stock at $0.0015 per share (acquired 1-27-11)

^[2],[4]

$ 2,339

PHI HEALTH, INC. [Member] | Investment Type 2 [Member]

^[2],[4],[7]

$ 2,339

^[2],[4],[6]

555,556 shares Series B-1 Convertible Preferred Stock convertible into 555,556 shares common stock at $2.25 per share (acquired 1-27-11)

^[2],[4]

$ 1,250,000

PHI HEALTH, INC. [Member] | Investment Type 3 [Member]

^[2],[4],[7]

$ 1,250,000

^[2],[4],[6]

4,500,000 Shares Series C-1 Convertible Preferred Stock convertible into 4,500,000 shares common stock at $0.20 per share (acquired 1-7-11 and 1-27-11)

^[2],[4]

$ 4,500,000

TEXAS CAPITAL BANCSHARES, INC. [Member]

^[2],[4],[7]

$ 4,500,000

^{[2],[4],[5],[8]}

1.60%

^{[2],[4],[6],[8]}

‡489,656 shares common stock (acquired 5-1-00)

^[2],[4],[8]

$ 3,550,006

Ballast Point Ventures II, L.P. [Member]

^{[2],[4],[7],[8]}

$ 12,711,470

^[2],[4],[5]

0.00%

^[2],[4],[6]

Ballast Point Ventures II, L.P. 2.2% limited partnership interest (acquired 8-4-08 thru 6-18-10)

^[2],[4]

$ 1,725,000

$ 1,200,000

BankCap Partners Fund I, L.P. [Member]

^[2],[4],[7]

$ 1,551,000

$ 1,200,000

^[2],[4],[5]

0.00%

^[2],[4],[6]

BankCap Partners Fund I, L.P. 5.5% limited partnership interest (acquired 7-14-06 thru 11-30-11)

BankCap Partners Fund I, L.P. 5.5% limited partnership interest (acquired 7-14-06 thru 12-13-10)

^[2],[4]

$ 5,808,470

$ 5,762,270

CapitalSouth Partners Fund III, L.P. [Member]

^[2],[4],[7]

$ 5,012,000

$ 5,101,727

^[2],[4],[5]

0.00%

^[2],[4],[6]

CapitalSouth Partners Fund III, L.P. 1.9% limited partnership interest (acquired 1-22-08 and 11-16-11)

CapitalSouth Partners Fund III, L.P. 1.9% limited partnership interest (acquired 1-22-08 and 2-12-09)

^[2],[4]

$ 1,331,256

$ 831,256

CapStar Holdings Corporation [Member]

^[2],[4],[7]

$ 1,438,000

$ 790,000

^{[2],[3],[4],[5]}

100.00%

^{[2],[3],[4],[6]}

¥CapStar Holdings Corporation 500 shares common stock (acquired 6-10-10)

^[2],[3],[4]

$ 3,703,619

Diamond State Ventures, L.P. [Member]

^{[2],[3],[4],[7]}

$ 5,338,000

$ 4,380,481

^[2],[4],[5]

0.00%

^[2],[4],[6]

Diamond State Ventures, L.P. 1.4% limited partnership interest (acquired 10-12-99 thru 8-26-05)

Diamond State Ventures, L.P. 1.4% limited partnership Interest (acquired 10-12-99 thru 8-26-05)

^[2],[4]

$ 76,000

Discovery Alliance, LLC [Member]

^[2],[4],[7]

$ 184,000

$ 177,996

^{[2],[3],[4],[5]}

0.00%

^{[2],[3],[4],[6]}

¥Discovery Alliance, LLC 90.0% limited liability company (acquired 9-12-08 thru 10-20-11)

¥Discovery Alliance, LLC 90.0% limited liability company (acquired 9-12-08 thru 5-14-10)

^[2],[3],[4]

$ 1,180,000

$ 900,000

Essex Capital Corporation [Member]

^{[2],[3],[4],[7]}

$ 1,280,000

$ 574,488

^[2],[4],[5]

0.00%

^[2],[4],[6]

Essex Capital Corporation 10% unsecured promissory note due 8-19-10 (acquired 8-16-09)

^[2],[4]

$ 0

First Capital Group of Texas III, L.P. [Member]

^[2],[4],[7]

$ 1,000,000

^[2],[4],[5]

0.00%

^[2],[4],[6]

First Capital Group of Texas III, L.P. 3.0% limited partnership interest (acquired 12-26-00 thru 8-12-05)

^[2],[4]

$ 778,895

$ 778,894

^[2],[4],[7]

$ 662,000

$ 407,731

Humac Company [Member]

^[2],[4],[5]

100.00%

^[3]

100.00%

^[2],[4],[6]

¥Humac Company 1,041,000 shares common stock (acquired 1-31-75 and 12-31-75)

^[3]

¥Humac Company 1,041,000 shares common stock (acquired 1-31-75 and 12-31-75)

^[2],[4]

$ 0

^[3]

$ 0

STARTech Seed Fund I [Member]

^[2],[4],[7]

$ 159,000

^[3]

$ 166,000

^[2],[4],[5]

0.00%

^[2],[4],[6]

STARTech Seed Fund I 12.1% limited partnership interest (acquired 4-17-98 thru 1-5-00)

^[2],[4]

$ 178,066

STARTech Seed Fund II [Member]

^[2],[4],[7]

$ 39,000

$ 52,606

^[2],[4],[5]

0.00%

^[2],[4],[6]

STARTech Seed Fund II 3.2% limited partnership interest (acquired 4-28-00 thru 2-23-05)

^[2],[4]

$ 843,891

Sterling Group Partners I, L.P. [Member]

^[2],[4],[7]

$ 371,000

$ 317,392

^[2],[4],[5]

0.00%

^[2],[4],[6]

Sterling Group Partners I, L.P. 1.7% limited partnership interest (acquired 4-20-01 thru 1-24-05)

Sterling Group Partners I, L.P. 1.6% limited partnership interest (acquired 4-20-01 thru 1-24-05)

^[2],[4]

$ 1,064,042

ORGANIZATION AND BASIS OF PRESENTATION [Abstract]

^[2],[4],[7]

$ 511,000

$ 919,417

[1]	Affiliated investments
[2]	Agreements between certain issuers and the Company provide that the issuer will bear substantially all costs in connection with the disposition of common stock, including those costs involved in registration under the Securities Act of 1933, but excluding underwriting discounts and commissions. These agreements cover common stock owned at March 31, 2012 and common stock which may be acquired thereafter through the exercise of warrants and conversion of debentures and preferred stock. They apply to restricted securities of all issuers in the investment portfolio of the Company except securities of the following issuers which are not obligated to bear registration costs: Humac Company and The Whitmore Manufacturing Company.
[3]	Control investment
[4]	The descriptions of the companies and ownership percentages shown in the Consolidated Schedule of Investments were obtained from published reports and other sources believed to be reliable. Acquisition dates indicated are the dates specific securities were acquired, which may differ from the original investment dates. Certain securities were received in exchange for or upon conversion or exercise of other securities previously acquired.
[5]	The percentages in the "Equity" column express the potential equity interests held by Capital Southwest Corporation and Capital Southwest Venture Corporation (together, the "Company") in each issuer. Each percentage represents the amount of the issuer's common stock the Company owns or can acquire as a percentage of the issuer's total outstanding common stock, plus stock reserved for all warrants, convertible securities and employee stock options.
[6]	Unrestricted securities (indicated by ‡) are freely marketable securities having readily available market quotations. All other securities are restricted securities, which are subject to one or more restrictions on resale and are not freely marketable. At March 31, 2012, restricted securities represented approximately 56.9% of the value of the consolidated investment portfolio. Our investments are carried at fair value in accordance with the Investment Company Act of 1940 (the "1940 Act") and FASB Accounting Standards Codification™ (ASC) Topic 820, Fair Value Measurements and Disclosures. In accordance with the 1940 Act, unrestricted minority-owned publicly traded securities, for which the market quotations are readily available, are valued at the closing sale price for the NYSE listed securities and the lower of the closing bid price or the last sale price for NASDAQ securities on the valuation date; and other privately held securities are valued as determined in good faith by our Board of Directors. ASC Topic 820 defines fair value in terms of the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the "exit price") and excludes transaction costs. Under ASC Topic 820, the fair value measurement also assumes that the transaction to sell an asset occurs in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset. The principal market is the market in which the reporting entity would sell or transfer the asset with the greatest volume and level of activity for the asset. In determining the principal market for an asset or liability under ASC Topic 820, it is assumed that the reporting entity has access to the market as of the measurement date.
[7]	Debt Securities are generally valued on the basis of the price the security would command in order to provide a yield-to-maturity equivalent to the present yield of comparable debt instruments of similar quality. Issuers whose debt securities are judged to be of poor quality and doubtful collectability may instead be valued by assigning percentage discounts commensurate with the quality of such debt securities. Debt securities may also be valued based on the resulting value from the sale of the business at the estimated fair market value. Partnership Interests, Preferred Equity and Common Equity, including unrestricted marketable securities are valued at the closing sale price for the NYSE listed securities and the lower of the closing bid price or the last sale price for NASDAQ securities on the valuation date.For those without a principal market, the Board of Directors considers the financial condition and operating results of the issuer; the long-term potential of the business of the issuer; the market for and recent sales prices of the issuer's securities; the values of similar securities issued by companies in similar businesses; the proportion of the issuer's securities owned by the Company. In determining the fair value of restricted securities, the Board of Directors considers the inherent value of such securities without regard to the restrictive feature and adjusts for any diminution in value resulting from restrictions on resale. Investments in certain entities that calculate net asset value per share (or its equivalent) and for which fair market value is not readily determinable, are valued using the net asset value per share (or its equivalent, such as member units or ownership interest in partners' capital to which a proportionate share of net assets is attributed) of the investment. Equity Warrants are valued on the basis of the Black-Scholes model which defines the market value of a warrant in relation to the market price of its common stock, share price volatility, and time to maturity.
[8]	Publicly-owned company

ORGANIZATION AND BASIS OF PRESENTATION

12 Months Ended

Mar. 31, 2012

ORGANIZATION AND BASIS OF PRESENTATION

1.	ORGANIZATION AND BASIS OF PRESENTATION

Organization

Capital Southwest Corporation ("CSC") was organized as a Texas corporation on April 19, 1961. Until September 1969, CSC operated as a licensee under the Small Business Investment Act of 1958. At that time, we transferred to our wholly-owned subsidiary, Capital Southwest Venture Corporation ("CSVC") certain assets and our license as a small business investment company ("SBIC"). CSVC is a closed-end, non-diversified investment company of the management type registered under the Investment Company Act of 1940 (the "1940 Act"). Prior to March 30, 1988, CSC was registered as a closed-end, non-diversified investment company under the 1940 Act. On that date, CSC elected to become a Business Development Company ("BDC") subject to the provisions of the 1940 Act, as amended by the Small Business Incentive Act of 1980. Because CSC wholly own CSVC, the portfolios of both CSC and CSVC are referred to collectively as "our," "we" and "us." Capital Southwest Management Company ("CSMC"), a wholly-owned subsidiary of CSC, is the management company for CSC and CSVC. CSMC generally incurs all normal operating and administrative expenses, including, but not limited to, salaries and related benefits, rent, equipment and other administrative costs required for its day-to-day operations.

Our portfolio is a composite of companies, consisting of companies in which we have controlling interests, developing companies and marketable securities of established publicly traded companies. We make available significant managerial assistance to the companies in which we invest and believe that providing managerial assistance to such investee companies is critical to their business development activities. CSMC receives a monthly fixed fee for management services provided to certain of our control portfolio companies.

Basis of Presentation

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Under rules and regulations applicable to investment companies, we are precluded from consolidating any entity other than another investment company. An exception to this general principle occurs if the investment company has an investment in an operating company that provides services to the investment company. Accordingly, consolidated financial statements include CSMC, our management company.

Portfolio Investment Classification

We classify our investments in accordance with the requirements of the 1940 Act. Under the 1940 Act, "Control Investments" are defined as investments in which we own more than 25% of the voting securities or have rights to maintain greater than 50% of the board representation; "Affiliated Investments" are defined as investments in which we own between 5% and 25% of the voting securities; and "Non-Control/Non-Affiliated Investments" are defined as investments that are neither "Control Investments" nor "Affiliated Investments."

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Mar. 31, 2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed in the preparation of the consolidated financial statements of CSC, CSVC and CSMC.

Fair Value Measurements We adopted FASB ASC Topic 820 on April 1, 2008. ASC Topic 820 (1) creates a single definition of fair value, (2) establishes a framework for measuring fair value, and (3) expands disclosure requirements about items measured at fair value. The Statement applies to both items recognized and reported at fair value in the financial statements and items disclosed at fair value in the notes to the financial statements. The Statement does not change existing accounting rules governing what can or what must be recognized and reported at fair value in our financial statements, or disclosed at fair value in our notes to financial statements. Additionally, ASC Topic 820 does not eliminate practicability exceptions that exist in accounting pronouncements amended by this Statement when measuring fair value.

Fair value is generally determined based on quoted market prices in the active markets for identical assets or liabilities. If quoted market prices are not available, we use valuation techniques that place greater reliance on observable inputs and less reliance on unobservable inputs. Due to the inherent uncertainty in the valuation process, our estimate of fair value may differ materially from the values that would have been used had a ready market for the securities existed. In addition, changes in the market environment, portfolio company performance and other events may occur over the lives of the investments that may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned. We determine the fair value of each individual investment and record changes in fair value as unrealized appreciation or depreciation.

Pursuant to our internal valuation process, each portfolio company is valued once a quarter. In addition to our internal valuation process, our Board of Directors retains a nationally recognized firm to provide limited scope third party valuation services on certain portfolio investments. Our Board of Directors retained Duff & Phelps to provide limited scope third party valuation services on six investments comprising 76.2% of our net asset value at March 31, 2012. For full disclosure of Duff & Phelps' services, see page 5 of this Annual Report on Form 10-K under the heading "Determination of Net Asset Value and Portfolio Valuation Process."

We believe our investments at March 31, 2012 and March 31, 2011 approximate fair value as of those dates based on the market in which we operate and other conditions in existence at those reporting periods.

Investments Investments are stated at fair value determined by our Board of Directors as described in Notes to the Consolidated Schedule of Investments and Note 3 below. The average cost method is used in determining cost of investments sold. Investments are recorded on a trade date basis.

Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with an original maturity of three months or less at the date of purchase. Cash and cash equivalents are carried at cost, which approximates fair value.

Segment Information We operate and manage our business in a singular segment. As an investment company, we invest in portfolio companies in various industries and geographic areas as presented in the Consolidated Schedule of Investments.

Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Interest and Dividend Income Interest and dividend income is recorded on an accrual basis to the extent amounts are expected to be collected. Dividend income is recorded at the ex-dividend date for marketable securities and restricted securities. In accordance with our valuation policy, accrued interest and dividend income is evaluated periodically for collectability. When a debt or loan becomes 90 days or more past due, and if we otherwise do not expect the debtor to be able to service all of its debt or other obligations, we will generally establish a reserve against the interest income, thereby placing the loan or debt security's status on non-accrual basis, and cease to recognize interest income on that loan or debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a loan or debt security's status significantly improves regarding ability to service debt or other obligations, it will be restored to accrual basis.

Federal Income Taxes CSC and CSVC have elected and intend to comply with the requirements of the Internal Revenue Code (IRC) necessary to qualify as regulated investment companies (RICs). By meeting these requirements, they will not be subject to corporate federal income taxes on ordinary income distributed to shareholders. In order to comply as a RIC, each company is required to timely distribute to its shareholders at least 90% of investment taxable income, as defined by the IRC, each year. Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. Taxable income generally excludes net unrealized appreciation or depreciation, as investment gains and losses are not included in taxable income until they are realized. Our policy is to retain and pay the 35% corporate tax on realized long-term capital gains. As an investment company that qualifies as RICs under the IRC, federal income taxes payable on security gains that we elect to retain are accrued only on the last day of our tax year, December 31. See Note 4 for further discussion.

CSMC, a wholly owned subsidiary of CSC, is not a RIC and is required to pay taxes at the current corporate rate.

We account for interest and penalties as part of operating expenses. There were no interest or penalties incurred during the years ended March 31, 2012, 2011 and 2010.

Deferred Taxes CSMC sponsors a qualified defined benefit pension plan which covers its employees and employees of certain of its controlled affiliates. Deferred taxes related to the qualified defined benefit pension plan are recorded as incurred.

Stock-Based Compensation We account for our stock-based compensation using the fair value method, as prescribed by ASC 718, Compensation - Stock Compensation. Accordingly, we recognize stock-based compensation cost over the straight-line method for all share-based payments granted on or after that date and for all awards granted to employees prior to April 1, 2006 that remain unvested on that date. The fair value of stock options are determined on the date of grant using the Black-Scholes pricing model and are expensed over the vesting period of the related stock options. For restricted stock awards, we measured the grant date fair value based upon the market price of our common stock on the date of the grant and will amortize this fair value to shared-based compensation expense over the vesting term. See Note 6 for further discussion.

Defined Pension Benefits and Other Postretirement Plans We record annual amounts relating to the defined benefit pension plan based on calculations, which include various actuarial assumptions such as discount rates and assumed rates of return depending on the pension plan. Material changes in pension costs may occur in the future due to changes in the discount rate, changes in the expected long-term rate of return, changes in level of contributions to the plans and other factors. The funded status is the difference between the fair value of plan assets and the benefit obligation. We recognize changes in the funded status of defined benefit plan in the Statement of Assets and Liabilities in the year in which the changes occur and measure defined benefit plan assets and obligations as of the date of the employer's fiscal year-end. We presently use March 31 as the measurement date for our defined benefit plan.

Concentration of Risk We place our idle cash in financial institutions, and at times, such balances may be in excess of the federally insured limits. On November 19, 2010, the Federal Deposit Insurance Corporation ("FDIC") issued a Final Rule implementing section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that provides for unlimited insurance coverage of noninterest-bearing transaction accounts beginning December 31, 2010 through December 31, 2012. As of March 31, 2012 and 2011, the Company's money market account balances exceeded the Federal Deposit Insurance Corporation limits by $64.4 million and $45.3 million respectively.

Recent Accounting Pronouncements

In May 2011, the FASB issued Accounting Standards Update ("ASU") 2011-04, Fair Value Measurements (Topic 820), Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs ("ASU 2011-04"). ASU 2011-04 results in common fair value measurement and disclosure requirements in U.S. GAAP and IFRSs. ASU 2011-04 is effective for interim and annual reporting periods beginning after December 15, 2011. Adoption of ASU 2011-04 is not expected to have a significant impact on our financial condition and result of operations.

INVESTMENTS

12 Months Ended

Mar. 31, 2012

INVESTMENTS [Abstract]

INVESTMENTS

3. INVESTMENTS

We record our investments at fair value as determined in good faith by our Board of Directors in accordance with GAAP. When available, we base the fair value of our investments on directly observable market prices or on market data derived for comparable assets. For all other investments, inputs used to measure fair value reflect management's best estimate of assumptions that would be used by market participants in pricing the investments in a hypothetical transaction.

The levels of fair value inputs used to measure our investments are characterized in accordance with the fair value hierarchy established by the Accounting Standard Codification ("ASC"). We use judgment and consider factors specific to the investment in determining the significance of an input to a fair value measurement. While management believes our valuation methodologies are appropriate and consistent with market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The three levels of the fair value hierarchy and investments that fall into each of the levels are described below:

Level 1: Investments whose values are based on unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. We use Level 1 inputs for publicly traded unrestricted securities. Such investments are valued at the closing price for listed securities and at the lower of the closing bid price or the closing sale price for NASDAQ securities on the valuation date.

Level 2: Investments whose values are based on observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in non-active markets, quoted prices for similar instruments in active markets and similar data. We did not value any of our investments using Level 2 inputs as of March 31, 2012 and 2011.

Level 3: Investments whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management's own assumptions about the assumptions a market participant would use in pricing the investment. We use Level 3 inputs for measuring the fair value of approximately 56.9% of our investments. See "Notes to Consolidated Schedule of Investments" (c) on page 48 for the investment policy used to determine the fair value of these investments.

As required by ASC 820, when the inputs used to measure a fair value fall within different levels of the hierarchy, the level within the fair value measurement is categorized based on the lowest level input that is significant to the fair value measurement which may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Therefore, gains and losses for such investments categorized within the Level 3 table below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable (Level 3). We conduct reviews of fair value hierarchy classifications on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of certain investments.

In March 2012, Form S-3 registration statements of Alamo Group Inc. (NYSE: ALG), Encore Wire Corporation (NASDAQ: WIRE), and Heelys Inc. (NASDAQ: HLYS) were filed with the Securities and Exchange Commission, or SEC. Due to these recent registrations with the SEC, the common stock of Alamo Group Inc., Encore Wire Corporation, and Heelys Inc. was transferred from Level 3 to Level 1 under ASC 820. As a result of these registrations becoming effective with the SEC, restrictions in the sale of the common stock of these companies imposed by Rule 144 of the Securities Act were lifted and valuation discounts previously applied to these holdings were removed. Had the prior period discounts been applied to ALG, WIRE, HLYS, our resulting net asset value would have been $597,793,096, or $159.22 per share at March 31, 2012. This would have represented increases of 12.3% over the March 31, 2011 net asset values.

As of March 31, 2012 and 2011, 56.9% and 94.5%, respectively, of our portfolio investments were categorized as Level 3. Fair value determination of each portfolio investment required one or more of the following unobservable inputs:

Financial information obtained from each portfolio company, including unaudited statements of operations and balance sheets for the most recent period available as compared to budget numbers;

Audited financial information is obtained from each portfolio company, annually;

Current and projected financial condition of the portfolio company;

Current and projected ability of each portfolio company to service its debt obligations;

Current liquidity of the investment;

Projected operating results of the portfolio company;

Current information regarding any offers to purchase the investment;

Current ability of the portfolio company to raise any additional financing, as needed;

Changes in the economic environment which may have a material impact on the operating results of the portfolio company;

Internal occurrences that may have an impact (both positive and negative) on the operating performance of the portfolio company;

Qualitative assessment of key management; and

Other factors deemed relevant.

The following fair value hierarchy tables set forth our investment portfolio by level as of March 31, 2012 and March 31, 2011 (in millions):

			Fair Value Measurements at 3/31/12 Using
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Debt	$	11.2	$	−	$	−	$	11.2
Partnership Interests		11.0		−		−		11.0
Preferred Equity		33.9		−		−		33.9
Common Equity		502.4		240.7		−		261.7
Total Investments	$	558.5	$	240.7	$	−	$	317.8

			Fair Value Measurements at 3/31/11 Using
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Debt	$	12.7	$	−	$	−	$	12.7
Partnership Interests		9.5		−		−		9.5
Preferred Equity		45.8		−		−		45.8
Common Equity		421.3		26.8		−		394.5
Total Investments	$	489.3	$	26.8	$	−	$	462.5

Changes in Fair Value Levels

We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model based valuation techniques may require the transfer of financial instruments from one fair value to another.

In March 2012, Form S-3 registration statements of Alamo Group, Inc. (NYSE: ALG), Encore Wire Corporation (NASDAQ: WIRE) and Heelys Inc. (NASDAQ: HLYS) were filed with the Securities and Exchange Commission ("SEC"). As a result of these registrations becoming effective, restrictions in the sale of common stock of these companies imposed by Rule 144 of the Securities Exchange Act of 1933 were lifted, and discounts on the common stocks of these entities were subsequently removed. Due to these recent registrations with the SEC, we transferred $227 million securities from Level 3 to Level 1 under the fair value hierarchy of ASC 820.

The following table provides a summary of changes in the fair value of investments measured using Level 3 inputs during the years ended March 31, 2012 and 2011 (in millions):

	Fair Value 3/31/11		Net Unrealized Appreciation (Depreciation)			New Investments		Divestitures			Net Changes from Unrealized to Realized			Conversion of Security from Debt to Equity		Transfer out of Level 3		Fair Value at 3/31/12
Debt	$	12.7	$	(4.6	)	$	6.6	$	(1.0	)	$	(2.5	)	$	0.0		-	$	11.2
Partnership Interest	$	9.5	$	0.2		$	1.3	$	0.0		$	0.0		$	0.0		-	$	11.0
Preferred Equity	$	45.8	$	(2.9	)	$	6.3	$	(6.1	)	$	(9.2	)	$	0.0		-	$	33.9
Common Equity	$	394.5	$	87.0		$	0.0	$	0.0		$	7.3		$	0.0	$	227.1	$	261.7
Total Investments	$	462.5	$	79.7		$	14.2	$	(7.1	)	$	(4.4	)	$	0.0	$	227.1	$	317.8

	Fair Value 3/31/10		Net Unrealized Appreciation (Depreciation)		Net Changes from Unrealized to Realized			New Invest- ments		Divesti- tures			Conversion of Security from Debt to Equity			Fair Value 3/31/11
Debt	$	14.6	$	0.1	$	0.9		$	4.2	$	(4.2	)	$	(2.9	)	$	12.7
Partnership Interest		8.6		−		−			0.9		−			−			9.5
Preferred Equity		35.3		2.9		6.9			4.7		(6.9	)		2.9			45.8
Common Equity		398.4		63.4		(66.5	)		3.7		(4.5	)		−			394.5
Total Investments	$	456.9	$	66.4	$	(58.7	)	$	13.5	$	(15.6	)	$	−		$	462.5

The total unrealized gains included in earnings that related to assets still held at report date for the years ended March 31, 2012 and 2011 were $96,949,860 and $76,132,546, respectively.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13537-108611

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13504-108611

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

INCOME TAXES

12 Months Ended

Mar. 31, 2012

INCOME TAXES [Abstract]

INCOME TAXES

4. INCOME TAXES

We operate to qualify as a RIC under Subchapter M of the IRC. In order to qualify as a RIC, we must annually distribute at least 90% of our taxable ordinary income, based on our tax year, to our shareholders in a timely manner. Ordinary income includes net short-term capital gains but excludes net long-term capital gains. A RIC is not subject to federal income tax on the portion of its ordinary income and long-term capital gains that are distributed to its shareholders, including "deemed distributions" discussed below. As permitted by the Code, a RIC can designate dividends paid in the subsequent tax year as dividends of current year ordinary income and net long-term gains if those dividends are both declared by the extended due date of the RIC's federal income tax return and paid to shareholders by the last day of the subsequent tax year. We have a calendar tax year end of December 31.

We have distributed or intend to distribute sufficient dividends to eliminate taxable income for our completed tax years. If we fail to satisfy the 90% distribution requirement or otherwise fail to qualify as a RIC in any tax year, we would be subject to tax in such year on all of our taxable income, regardless of whether we made any distributions to our shareholders. For the tax year ended December 31, 2011 and 2010, we declared and paid ordinary dividends in the amount of $3,003,030 and $2,993,623, respectively.

Additionally, we are subject to a nondeductible federal excise tax of 4% if we do not distribute at least 98% of our investment company ordinary taxable income before the end of our tax year. For the tax years ended December 31, 2011 and 2010, we distributed 100% of our investment company ordinary taxable income. As a result, we have made no tax provisions for income taxes on ordinary taxable income for the tax years ended December 31, 2011 and 2010.

A RIC may elect to retain its long-term capital gains by designating them as "deemed distribution" to its shareholders and paying a federal tax rate of 35% on the long-term capital gains for the benefit of its shareholders. Shareholders then report their share of the retained capital gains on their income tax returns as if it had been received and report a tax credit for tax paid on their behalf by the RIC. Shareholders then add the amount of the "deemed distribution" net of such tax, to the basis of their shares.

For the tax year ended December 31, 2011, we had net long-term capital gains of $3,568,376 for tax purposes and $4,465,088 for book purposes, which we elected to retain and treat as deemed distributions to our shareholders. For the tax year ended December 31, 2010, we had net long-term capital gains of $70,221,589 for tax purposes and $70,325,930 for book purposes, which we elected to retain and treat as deemed distributions to our shareholders. During the quarter ended December 31, 2010 we recorded a $4,217,985 reduction in the gain on sale of Lifemark Group, Inc. This reduction was the result of a net asset adjustment calculated in accordance with the Stock Purchase Agreement signed on June 10, 2010.

In order to make the election to retain capital gains, we incurred federal taxes on behalf of our shareholders in the amount of $1,248,932 for the tax year ended December 31, 2011. For the tax year ended December 31, 2010, we incurred federal taxes on behalf of our shareholders in the amount of $24,577,557. For the tax year ended December 31, 2009, we had net long-term capital gains of $2,327,150 for tax purposes and $1,682,616 for book purposes, which we elected to retain and treat as deemed distributions to our shareholders. In order to make the election to retain capital gains, we incurred federal taxes on behalf of our shareholders in the amount of $814,502 for the tax year ended December 31, 2009

For the years ended March 31, 2012, 2011 and 2010, CSC and CSVC qualified to be taxed as RICs. We intend to meet the applicable qualifications to be taxed as a RIC in future years. Management feels it is probable that we will maintain our RIC status for a period longer than one year. However, either company's ability to meet certain portfolio diversification requirements of RICs in future years may not be controllable by such company.

CSMC, a wholly owned subsidiary of CSC, is not a RIC and is required to pay taxes at the current corporate rate. CSMC sponsors a qualified defined benefit pension plan which covers its employees and employees of certain of its wholly owned portfolio companies. Deferred taxes related to the qualified defined pension plan are recorded as incurred.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

UNDISTRIBUTED NET REALIZED GAINS (LOSSES) ON INVESTMENTS [Abstract]

UNDISTRIBUTED NET REALIZED GAINS (LOSSES) ON INVESTMENTS

12 Months Ended

Mar. 31, 2012

UNDISTRIBUTED NET REALIZED GAINS (LOSSES) ON INVESTMENTS

5. UNDISTRIBUTED NET REALIZED GAINS (LOSSES) ON INVESTMENTS

Distributions made by RICs often differ from aggregate GAAP-basis undistributed net investment income and accumulated net realized gains (total GAAP-basis net realized gains). The principal cause is that required minimum fund distributions are based on income and gain amounts determined in accordance with federal income tax regulations, rather than GAAP. The differences created can be temporary, meaning that they will reverse in the future, or they can be permanent. In subsequent periods, when all or a portion of a temporary difference becomes a permanent difference, the amount of the permanent difference will be reclassified to "additional capital."

The following table sets forth a summary of our net realized gains on transactions by category:

Net Realized Gains on Transactions In	For the Tax Year Ended December 31
Investment Securities of	2011		2010
Control Investments	$	-	$	70,294,097
Affiliated Investments		−		−
Non-Control/Non-Affiliated Investments		4,465,088		31,833
Net realized gain on investments before taxes	$	4,465,088	$	70,325,930
Income tax expense		1,248,932		24,577,557
Net realized gains on investments	$	3,216,156	$	45,748,373
Net realized gains on investment (for tax purposes)	$	3,568,376	$	70,221,589

As a result of our election to retain long-term capital gains, we incurred federal taxes on behalf of our shareholders in the amounts listed in the table above. As of March 31, 2012, we had undistributed long-term capital gains of $498,438. As of March 31, 2011 we had undistributed long-term capital losses of $6,863,347.

EMPLOYEE STOCK BASED COMPENSATION PLANS

12 Months Ended

Mar. 31, 2012

EMPLOYEE STOCK BASED COMPENSATION PLANS [Abstract]

EMPLOYEE STOCK BASED COMPENSATION PLANS

6. EMPLOYEE STOCK BASED COMPENSATION PLANS

Stock Options

On July 20, 2009, shareholders approved our 2009 Stock Incentive Plan (the "2009 Plan"), which provides for the granting of stock options to employees and officers and authorizes the issuance of common stock upon exercise of such options for up to 140,000 shares. All options are granted at or above market price, generally expire up to ten years from the date of grant and are generally exercisable on or after the first anniversary of the date of grant in five annual installments. Options to purchase 38,750 shares at a price of $76.74 (market price at the time of the grant) were granted on October 19, 2009 and remain outstanding. Additionally, options to purchase 20,000 shares at a price of $95.79 (market price at time of the grant) were granted on March 22, 2010, options to purchase 15,000 shares at a price of $88.20 were granted on July 19, 2010 and options to purchase 10,000 shares at a price of $96.92 were granted on July 18, 2011. All 83,750 options remain outstanding, thus leaving 56,250 options available for grant under the 2009 plan.

We previously granted stock options under its 1999 Stock Option Plan (the "1999 Plan"), as approved by shareholders on July 19, 1999. The 1999 Plan expired on April 19, 2009. Options previously made under our 1999 Stock Option Plan and outstanding on July 20, 2009 continue in effect governed by provisions of the 1999 Plan. All options granted under the 1999 Plan were granted at or above market price, generally expire up to ten years from the date of grant and are generally exercisable on or after the first anniversary of the date of grant in five to ten annual installments.

We recognize compensation cost over the straight-line method for all share-based payments granted on or after that date and for all awards granted to employees prior to April 1, 2006 that remain unvested on that date. The fair value of stock options are determined on the date of grant using the Black-Scholes pricing model and are expensed over the vesting period of the related stock options. Share-based compensation cost for restricted stocks is measured based on the closing fair market value of our Company's common stock on the date of the grant. Accordingly, for the years ended March 31, 2012, 2011 and 2010, we recognized stock option compensation expense of $1,009,922, $957,168 and $675,210 respectively.

As of March 31, 2012, the total remaining unrecognized compensation cost related to non-vested stock options was $2,113,807, which will be amortized over the weighted-average service period of approximately 2.5 years.

The following table summarizes the 2009 Plan and the 1999 Plan price per option at grant date using the Black-Scholes pricing model:

			Black-Scholes Pricing Model Assumptions
Date of Issuance	Weighted Average Fair Value		Expected Dividend Yield			Risk-Free Interest Rate			Expected Volatility			Expected Life (in years)
2009 Plan
July 18, 2011	$	33.07		0.83	%		1.45	%		40.0	%		5
July 19, 2010	$	28.58		0.91	%		1.73	%		37.5	%		5
March 22, 2010	$	32.56		0.84	%		2.43	%		37.8	%		5
October 19, 2009	$	25.36		1.04	%		2.36	%		37.6	%		5

1999 Plan
July 30, 2008	$	29.93	0.62	%	3.36	%	20.2	%	5
July 21, 2008	$	27.35	0.67	%	3.41	%	20.2	%	5
July 16, 2007	$	41.78	0.39	%	4.95	%	19.9	%	5
July 17, 2006	$	33.05	0.61	%	5.04	%	21.2	%	7
May 15, 2006	$	31.28	0.64	%	5.08	%	21.1	%	7

The following table summarizes activity in the 2009 Plan and the 1999 Plan as of March 31, 2012:

	Number of Shares			Weighted Average Exercise Price
2009 Plan
Balance at March 31, 2010		58,750		$	83.23
Granted		15,000			88.20
Exercised		-			-
Canceled		-			-
Balance at March 31, 2011		73,750		$	84.24
Granted		10,000			96.92
Exercised		-			-
Canceled		-			-
Balance at March 31, 2012		83,750		$	85.75

1999 Plan
Balance at March 31, 2010		107,900		$	114.78
Granted		-			-
Exercised		(11,400	)		65.37
Canceled		-			-
Balance at March 31, 2011		96,500		$	114.78
Granted		-			-
Exercised		(1,500	)		65.70
Canceled		-			-
Balance at December 31, 2011		95,000		$	113.63
Combined Balance at March 31, 2012		178,750		$	104.74

March 31, 2012	Weighted Average Aggregate Intrinsic Remaining Contractual Term	Value
Outstanding	2.5 years	$	5,382,148
Exercisable	2.1 years	$	2,731,427

At March 31, 2012, the range of exercise prices and weighted-average remaining contractual life of outstanding options was $76.74 to $152.98 and 2.5 years, respectively. The number of options exercisable under the 2009 Plan and the 1999 Plan, at March 31, 2012, was 87,590 with a weighted-average exercise price of $112.25. During the year ended March 31, 2012, 1,500 options were exercised with exercise price at $65.70 per share and 11,400 options were exercised with exercise prices ranging from $65.00 to $65.70 per share during the year ended March 31, 2011. New shares were issued for $98,550 and $745,200 cash received from options exercised during the year ended March 31, 2012 and the year ended March 31, 2011, respectively. There were no options exercised during the year ended March 31, 2010.

At March 31, 2012, 2011 and 2010, the number of options exercisable was 87,590, 54,325 and 38,960, respectively, and the weighted average price of those options was $112.25, $115.57 and $107.94, respectively.

Stock Awards

On January 15, 2012, our Board of Directors approved the issuance of shares of restricted stock to certain key employees pursuant to the Capital Southwest Corporation 2010 Restricted Stock Award Plan. A restricted stock award is an award of shares of our common stock (which have full voting and dividend rights but are restricted with regard to sale or transfer), the restrictions over which lapse ratably over a specified period of time (generally five years). Restricted stock awards are independent of stock option grants and are subject to forfeit if employment terminates prior to these restrictions lapsing. These shares vest over a five-year period from the grant date and are expensed over the five-year service period starting on the grant date. The following table summarizes the restricted stock issuances approved by our Board of Directors and the remaining shares of restricted stock available for issuance as of March 31, 2012:

Restricted stock authorized under the plan:			47,000
Less restricted stock granted on 1/16/2012:			9,650
Restricted stock available for issuance as of			37,350
March 31, 2012

We expense the cost of the restricted stock awards, which is determined to equal the fair value of the restricted stock award at the date of the grant on a straight-line basis over the vesting period in which the restrictions on these stock awards lapse. For these purposes, the fair value of the restricted stock award is determined based on the closing price of our common stock on the date of grant. For the fiscal year ended March 31, 2012, we recognized total share based compensation expense of $40,377 related to the restricted stock issued to our employees and officers. For the fiscal years ended March 31, 2011 and 2010, no restricted stock was issued.

As of March 31, 2012, the total remaining unrecognized compensation cost related to non-vested restricted stock awards was $766,403, which will be amortized over the weighted-average service period of approximately 4.8 years.

The following table represents a summary of the activity for our restricted stock awards for the fiscal year ended March 31, 2012:

Restricted Stock Awards	Number of Shares		Weighted Average Fair Value Per Share		Weighted Average Remaining Vesting Term (in Years)
Unvested at March 31, 2011		-	$	-		-
Granted		9,650		83.60		4.8
Vested		-		-		-
Forfeited or expired		-		-
Unvested at March 31, 2012		9,650	$	83.60		4.8

Phantom Stock Plan

On January 16, 2012, our Board of Directors approved the issuance of Phantom stock options to certain key employees pursuant to the Capital Southwest Corporation Phantom Stock Option Plan. Under the plan, awards vest on the fifth anniversary of the award date. Upon exercise of the phantom option, a cash payment in an amount for each Phantom share equal to estimated fair market value minus the phantom option exercise price will be distributed to plan participants. On January 16, 2012, 26,000 shares of phantom stock options were issued to provide deferred compensation to certain key employees. The exercise price of each phantom share is $146.95 (Net Asset Value at December 31, 2011), and estimated fair market value of phantom stock awards is calculated based on our net asset value as of December 31 of each year.

The following table represents a summary of the activity for our phantom stock plan for the fiscal year ended March 31, 2012:

	Number of Shares		Exercise Price Per Share		Weighted Average Remaining Vesting Term (in Years)
Unvested at March 31, 2011		-	$	-		-
Granted		26,000		146.95		4.8
Vested		-		-		-
Forfeited or expired		-		-
Unvested at March 31, 2012		26,000	$	146.95		4.8

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

EMPLOYEE STOCK OWNERSHIP PLAN	12 Months Ended
EMPLOYEE STOCK OWNERSHIP PLAN	Mar. 31, 2012
EMPLOYEE STOCK OWNERSHIP PLAN [Abstract]
EMPLOYEE STOCK OWNERSHIP PLAN	7. EMPLOYEE STOCK OWNERSHIP PLAN CSC and one of its controlled affiliates sponsor a qualified employee stock ownership plan ("ESOP") in which certain employees participate. Contributions to the plan, which are invested in our stock, are made at the discretion of our Board of Directors. A participant's interest in contributions to the ESOP fully vests after three years of active service. During the 3 years ended March 31, 2012, we made contributions to the ESOP, which were included in operating expenses, of $222,179 in 2012, $147,212 in 2011, and $144,436 in 2010.

RETIREMENT PLANS

12 Months Ended

Mar. 31, 2012

RETIREMENT PLANS [Abstract]

RETIREMENT PLANS

8.	RETIREMENT PLANS

CSC sponsors a qualified defined benefit pension plan which covers its employees and employees of certain of its controlled affiliates. The following information about the plan represents amounts and information related to CSC's participation in the plan and is presented as though CSC sponsored a single-employer plan. Benefits are based on years of service and an average of the highest five consecutive years of compensation during the last 10 years of employment. The funding policy of the plan is to contribute annual amounts that are currently deductible for tax reporting purposes. No contribution was made to the plan during the three years ended March 31, 2012.

Additionally, CSC sponsors an unfunded Retirement Restoration Plan, which is a nonqualified plan that provides for the payment, upon retirement, of the difference between the maximum annual payment permissible under the qualified retirement plan pursuant to Federal limitations and the amount which would otherwise have been payable under the qualified plan.

The following tables set forth the qualified plan's net pension benefit, benefit obligation, fair value of plan assets, and amounts recognized in our consolidated statements of operations at March 31, 2012, 2011 and 2010, as well as amounts recognized in our consolidated statements of assets and liabilities at March 31, 2012 and 2011:

	Years Ended March 31
	2012			2011			2010
Net pension benefit
Service cost-benefits earned during the year	$	133,729		$	161,047		$	116,746
Interest cost on projected benefit obligation		256,558			231,332			191,936
Expected return on assets		(781,299	)		(771,025	)		(735,366	)
Net amortization		9,377			9,377			9,006
Net pension benefit from qualified plan	$	(381,635	)	$	(369,269	)	$	(417,678	)

	Years Ended March 31
	2012			2011			2010
Change in benefit obligation
Benefit obligation at beginning of year	$	4,213,349		$	3,450,443		$	2,914,813
Service cost		133,729			161,047			116,746
Interest cost		256,558			231,332			191,936
Actuarial gain (loss)		601,402			437,959			295,379
Benefits paid		(68,483	)		(67,432	)		(68,131	)
Benefit obligation at end of year	$	5,136,555		$	4,213,349		$	3,450,743

	Years Ended March 31
	2012			2011			2010
Change in plan assets
Fair value of plan assets at beginning of year	$	11,610,994		$	10,519,400		$	8,383,373
Actual return on plan assets		943,365			1,159,026			2,204,158
Benefits paid		(68,483	)		(67,432	)		(68,131	)
Fair value of plan assets at end of year	$	12,485,876		$	11,610,994		$	10,519,400

	Years Ended March 31
	2012			2011
Funded status and amounts recognized in consolidated statements of assets and liabilities
Actuarial present value of benefit obligations: Accumulated benefit obligation	$	(4,755,675	)	$	(3,859,769	)
Projected benefit obligation for service rendered to date	$	(5,136,555	)	$	(4,213,349	)
Plan assets at fair value*		12,485,876			11,610,994
Funded status		7,349,321			7,397,645
Unrecognized net loss from past experience different from that assumed and effects of changes in assumptions		1,818,042			1,378,706
Unrecognized prior service costs		131,956			141,333
ASC 715 adjustment		(1,949,998	)		(1,520,039	)
Prepaid pension cost included in pension assets		7,349,321		$	7,397,645

*	Primarily equities and bonds including approximately 25,000 shares of CSC Common Stock.

The following tables set forth the retirement restoration plan's net pension benefit and benefit obligation amounts at March 31, 2012, 2011 and 2010, as well as amounts recognized in our consolidated statements of assets and liabilities at March 31, 2012, 2011:

	Years Ended March 31
	2012			2011			2010
Net pension cost
Service cost-benefits earned during the year	$	18,163		$	33,216		$	26,847
Interest cost on projected benefit obligation		79,056			69,248			60,334
Net amortization		(15,428	)		(24,507	)		(38,605	)
Net pension cost from qualified plan	$	81,791		$	77,957		$	48,576

	Years Ended March 31
	2012		2011			2010
Change in benefit obligation
Benefit obligation at beginning of year	$	1,256,895	$	1,082,941		$	934,428
Service cost		18,163		33,216			26,847
Interest cost		79,056		69,248			60,334
Actuarial gain (loss)		214,278		132,940			61,332
Other adjustments		-		(61,450	)		-
Benefit obligation at end of year	$	1,568,392	$	1,256,895		$	1,082,941

	Years Ended March 31
	2012			2011
Amounts recognized in our consolidated statements of assets and liabilities
Projected benefit obligation	$	(1,568,392	)	$	(1,256,895	)
Unrecognized net (gain) loss from past experience different from that assumed and effects of changes in assumptions		8,556			(205,722	)
Unrecognized prior service costs		(130,798	)		(146,226	)
ASC 715 adjustment		122,242			351,948
Accrued pension cost included in pension liabilities	$	(1,568,392	)	$	(1,256,895	)

The following assumptions were used in estimating the actuarial present value of the projected benefit obligations:

	Years Ended March 31
	2012			2011			2010
Discount rate		5.25	%		6.00	%		6.00	%
Rate of compensation increases		5.00	%		5.00	%		5.00	%

The following assumptions were used in estimating the net periodic (income)/expense:

	Years Ended March 31
	2012			2011			2010
Discount rate		5.25	%		6.00	%		6.50	%
Expected return on plan assets		6.50	%		6.50	%		6.50	%
Rate of compensation increases		5.00	%		5.00	%		5.00	%

Following are the expected benefit payments for the next five years and in the aggregate for the years 2018-2022:

(In thousands)	2013		2014		2015		2016		2017			2018-2022
Qualified Plan	$	208	$	274	$	265	$	262	$	312	$	1,704
Restoration Plan	$	104	$	103	$	101	$	100	$	98	$	573

The expected rate of return on assets assumption was determined based on the anticipated performance of the various asset classes in the plan's portfolio and the allocation of assets to each class. The anticipated asset class return is developed using historical and predicted asset return performance, considering the investments underlying each asset class and expected investment performance based on forecasts of inflation, interest rates and market indices for fixed income and equity securities.

Plan Assets

Our pension plan is administered by a board-appointed committee that has fiduciary responsibility for the plan's management. The trustee of the plan is JPMorgan Asset Management. Currently, approximately 18% of the assets are selected and managed by the trustee and the remainder of the assets is managed by the committee, invested mostly in equity securities, including our stock. The plan assets are invested using a total return approach whereby a mix of equity securities, debt securities and other investments are used to preserve asset values, diversify risk and achieve our targeted investment return benchmark. Investment performance and asset allocation are measured and monitored on an ongoing basis.

Plan assets are managed in a balanced portfolio comprised of two major components: an equity portion and a fixed income portion. The expected role of plan equity investments is to maximize the long-term real growth of the plan's assets, while the role of fixed income investments is to generate current income, provide for more stable periodic returns and provide some protection against prolonged decline in the market value of the plan's equity investments.

The current target allocations for plan assets are 60-80% equity, 15-40% for fixed income, and 0-15% for cash and cash equivalents. Equity investments include U.S. and foreign equities, as well as publicly traded and non-publicly traded mutual funds. Fixed income securities include long-duration government obligations, government agency obligations and corporate obligations.

Our pension plan asset allocations are as follows:

	Percentage of Plan Assets at March 31
Asset Category	2012			2011
Equity securities		77.7	%		77.2	%
Fixed income securities		16.6	%		16.8	%
Cash and cash equivalents		5.7	%		6.0	%
		100.0	%		100.0	%

Below is our pension plan asset for Capital Southwest Corporation and its affiliates, of which Capital Southwest assets were $12,485,876 and $11,610,994 as of March 31, 2012 and 2011 respectively. The following fair value hierarchy table sets forth our pension plan investment portfolio by level as of March 31, 2012 (in millions):

			Fair Value Measurements at Reporting Date Using
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets Level I		Significant Other Observable Inputs Level 2		Significant Observable Inputs Level 3
Equity securities (a)	$	32.9	$	21.4	$	11.5	$	-
Fixed income securities (b)		7.0		-		7.0		-
Cash and cash equivalents		2.4		2.4		-		-
Total	$	42.3	$	23.8	$	18.5	$	-

The following fair value hierarchy table sets forth our pension plan investment portfolio by level as of March 31, 2011 (in millions):

			Fair Value Measurements at Reporting Date Using
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets Level I		Significant Other Observable Inputs Level 2		Significant Observable Inputs Level 3
Equity securities (a)	$	30.8	$	25.0	$	5.8	$	-
Fixed income securities (b)		6.7		-		6.7		-
Cash and cash equivalents		2.4		2.4		-		-
Total	$	39.9	$	27.4	$	12.5	$	-

There were no plan assets valued using significant unobservable inputs (level 3) as of March 31, 2012 or 2011.

(a)

This category includes investment in equity securities of large, medium and small companies and equity investments in foreign companies. Mutual funds included in this category are valued using the net asset value per unit as of the valuation date. These investments include shares of our common stock. At March 31, 2012 and 2011, our common stock represented 19.7% and 20.2%, respectively, of the plan assets.

(b)	This category includes investments in investment grade fixed income instruments, primarily U.S. government obligations.

The entire disclosure for pension and other postretirement benefits.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

COMMITMENTS	12 Months Ended
COMMITMENTS	Mar. 31, 2012
COMMITMENTS [Abstract]
COMMITMENTS	9. COMMITMENTS As of March 31,2012, we had agreed, subject to certain conditions, to invest up to $8,608,215 in eight portfolio companies. We lease office space under an operating lease which requires base annual rentals of approximately $133,000 through September 2014. For the three years ended March 31, 2012, total rental expense charged to investment income was $117,199 in 2012, $103,703 in 2011, and $92,075 in 2010.

The entire disclosure for commitments and contingencies.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

SELECTED QUARTERLY FINANCIAL DATA [Abstract]

SOURCES OF INCOME

12 Months Ended

Mar. 31, 2012

SOURCES OF INCOME [Abstract]

SOURCES OF INCOME

10. SOURCES OF INCOME

	Investment Income						Realized Gain (Loss) on Investments
Year Ended March 31, 2012	Interest		Dividends		Other Income		Before Income Taxes
Companies more than 25% owned	$	−	$	5,553,140	$	493,967	$	(10,933,517	)
Companies 5% to 25% owned		253,652		1,006,572		59,700		(45,287	)
Companies less than 25% owned		1,674,051		160,729		79,250		22,805,680
Other sources, including temporary investments		52,477		−		699		−
	$	1,980,180	$	6,720,441	$	633,616	$	11,826,876

	Investment Income						Realized Gain (Loss) on Investments
Year Ended March 31, 2011	Interest		Dividends		Other Income		Before Income Taxes
Companies more than 25% owned	$	−	$	5,024,061	$	671,867	$	70,294,097
Companies 5% to 25% owned		−		326,940		13,000		(6,863,347	)
Companies less than 25% owned		1,304,496		81,270		−		31,833
Other sources, including temporary investments		59,642		−		86,871		−
	$	1,364,138	$	5,432,271	$	771,738	$	63,462,583

	Investment Income						Realized Gain (Loss) on Investments
Year Ended March 31, 2010	Interest		Dividends		Other Income		Before Income Taxes
Companies more than 25% owned	$	14,473	$	3,359,942	$	1,055,900	$	1,433,472
Companies 5% to 25% owned		1,500		326,940		13,000		−
Companies less than 25% owned		1,009,276		101,798		206,522		206,522
Other sources, including temporary investments		19,618		−		337		−
	$	1,044,867	$	3,788,680	$	1,275,759	$	1,639,994

SELECTED QUARTERLY FINANCIAL DATA

12 Months Ended

Mar. 31, 2012

SELECTED QUARTERLY FINANCIAL DATA

11. SELECTED QUARTERLY FINANCIAL DATA

The following presents a summary of the unaudited quarterly consolidated financial information for the years ended March 31, 2012 and 2011 (in thousands except per share amounts):

2012	First Quarter				Second Quarter			Third Quarter			Fourth Quarter			Total
Net investment income (loss)		$	14		$	23		$	4,385		$	(1,878	)	$	2,544
Net realized gain (loss) on investments			(5,911	)		18,500			(2,360	)		349			10,578
Net increase (decrease) in unrealized appreciation of investments			(4,588	)		(44,076	)		48,798			78,501			78,635
Net increase (decrease) in net assets from operations			(10,455	)		(25,703	)		50,823			77,092			91,757
Net increase in net operations per share			(2.79	)		(6.85	)		13.53			20.53			24.42

2011	First Quarter			Second Quarter		Third Quarter			Fourth Quarter			Total
Net investment income (loss)	$	1,962		$	81	$	1,227		$	(1,466	)	$	1,804
Net realized gain (loss) on investments		74,015			530		(28,797	)		(6,863	)		38,885
Net increase (decrease) in unrealized appreciation of investments		(65,742	)		23,360		21,837			33,544			12,999
Net increase (decrease) in net assets from operations		10,235			23,971		(5,732	)		25,214			53,688
Net increase (decrease) in net operations per share		2.73			6.41		(1.53	)		6.72			14.33