Notes to Accounts of Chaman Lal Setia Exports Ltd.

Mar 31, 2025

4.16 Provisions, Contingent Liabilities and contingent assets:

The Company estimates the provisions that have present obligations as a result of past events, and it is probable
that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of
each reporting period and are adjusted to reflect the current best estimates.

The Company uses significant judgements to disclose contingent liabilities. Contingent liabilities are disclosed
when there is a possible Obligation arising from past events, the existence of which will be confirmed only by
the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the
Company or a present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent assets are neither recognised nor disclosed in the financial statements

4.17 Segment Reporting

The Company at present is engaged in the business of a single primary reportable business segment i.e. business
of manufacturing, trading and marketing of the rice only.

4.18 Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised during the
period of time that is required to complete and prepare the asset for its intended use or sale. All other borrowing
costs are expensed in the period in which they are incurred. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange
differences to the extent regarded as an adjustment to the borrowing costs.

Interest and other borrowing costs attributable to qualifying assets are capitalised as a part of such assets till
such time the assets are ready for use. Other interest and borrowing costs are charged to Statement of Profit
and Loss.

4.19 Earning Per Share

Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders
by the weighted average number of equities shares outstanding during the year. Diluted earnings per share is
computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during
the year end, except where the results would be anti-dilutive. The dilutive potential equity shares are adjusted for
the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value
of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of
the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each
period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods
presented for any share splits and bonus shares issues including for changes effected prior to the approval of
the financial statements by the Board of Directors.

4.20 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/ loss for the period is adjusted for the effects
of transactions of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the Company are segregated.

4.21 Dividend

Final dividends on shares are recorded as a liability on the date of paid after approval of equity shareholders in
Annual General Meeting. Interim dividends are recorded as a liability on the date of declaration by the Company''s
Board of Directors. The Company declares and pays dividends in Indian rupees and are subject to applicable
taxes..

4.22 Operating cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets
and their realisation in cash or cash equivalents, the Group has determined its operating cycle as 12 months for
the purpose of classification of its assets and liabilities as current and noncurrent.

The Company is in the process of evaluating the impact of the above amendments on the Company''s financial
statements. ]

Notes to Accounts

1. During the year Company has given remuneration to all the directors including managing director &
Wholetime directors as per section 197 of Companies Act, 2013 read with Schedule V which is within
overall limit as prescribed under Companies Act, 2013 read with Schedule V.

2. Value of Assets as at 21.9.94 the date of Conversion of the firm to the Company under Part IX of the
Companies Act 1956 has been taken at value shown in books of erstwhile firm Chaman Lal & Sons.

3. Gratuity Payable to employees at some future date has been duly provided for by the Company by taking
Group Gratuity Scheme from LIC of India.

4. Stores, Spares and Labour in respect of internally carried out repair and maintenance of Plant and
Machinery and Building have not been charged separately but have been directly charged to stores and
spares consumed and wages account.

5. Confirmation of some of the accounts at year-end included under heads ‘Sundry Debtors’, Sundry
Creditors'' and Loans and Advances have yet to be received as at the date of the Auditors Report.

6. Payment against supplies from small scale and ancillary undertakings are generally made in accordance
with agreed credit terms and to the extent ascertained from available information, there was overdue
amount of Rs. 97.06 (Lacs) on account of some quality issues or discount issue.

7 Contingent liabilities as at 31.03.2025

a) There is a Outstanding Demand of Income Tax Amount of Rs 13.84 Lacs For F.Y 2013-14 persuaded
by Income Tax Department But Company has protested the Same and Filed as request for
Rectification.

b) Company''s appeal is also pending with Hon''ble Gujrat Haryana High Court against imposition
of penalty by Custom Authorities Kandla amounting Rs 1750000/- on the alleged ground of
containing higher non-Basmati Grain in one of the export lots.

c) M/s PK Overseas has filed suit against company for using Its Brand Name and Claim a Damage of
Rs 11Lacs The Case has not been decided yet.

d) M/s KRBL Limited has filed suit against Company for using Its Brand name but Amount has not
been determined. The Case is Still under Trial.

e) One of the Employee of the Company has filed a case in labour Court for not giving Retirement
benefits . The Case is Still Pending and amount is not Determinable

8. Prior period items if any include Expenses/Income related to previous year not provided for are separately
classified as prior period expenditure/income during the current year in accounts.

9. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of the
current assets'' ,loan & advances, deposits in the ordinary course of business will not be less than the
value stated in Balance Sheet.

10. Pursuant to the provisions of Section 124 and 125 of the Companies Act, 2013, the Dividend which remain
unclaimed/ unpaid for a period of seven years from the date of transfer have to the unpaid dividend
account to the Investor Education and Protection Fund (IEPF) established by the Central Government.

11. The status of dividend remaining unclaimed as on 31.03.2025 is given here under:

Note: Some of the year end balances of unclaimed dividend as stated above, has increased due to
cancellation of drafts by bank being returned unpaid.

During the year 2024-2025, Board has recommended dividend of @ 125 % i.e. Rs. 2.50/- per equity share
of face value of Rs.2/- each for the financial year 2024-2025 in the Board Meeting held on 28.05.2025,
subject to approval of shareholders in this 31st Annual General Meeting. Dividend will be paid on & from
22.09.2025.

During the year, pursuant to the provisions of Section 124 and Section 125 of the Companies Act, 2013 and

read with Rule 6 of the Investor Education and Protection Fund Authority (Accounting,Audit,Transfer and
Refund) Rules,2016, (as amended from time to time) (IEPF Rules), final dividend amounting Rs.241371/-
was lying unpaid/unclaimed with the Company for a period of seven years after declaration of Dividend
for the financial year ended 2016-2017 was transferred to the Investor Education and Protection Fund.

The Company has transmitted 26265 Equity Shares on count of unclaimed/ unpaid dividend pertaining
to financial years 2016-17 into the Demat Account of the IEPF Authority held with NSDL (DPID/
ClientIDIN30078/10656671) in terms of the provisions of Section 124(6) of the Companies Act, 2013 and
the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended from time to time.
These Equity Shares were the Shares of such Shareholders whose had been transferred into IEPF and
who have not encashed their dividends for 7 (Seven) vears.

Defined Benefit Plan

The employee''s gratuity fund scheme managed by a Trust (Life Insurance Corporation of India) is a
defined benefit plan. The premium as determined by the Trust keeping in view the date of joining, salary
last drawn etc. of the employee''s is paid yearly by the Company and debited under the head Employee
Benefit Expenses. During the year 2024-2025 Rs. 382311-/. has been paid to LIC towards groups gratuity
scheme of employees, however last year 2023-2024 Rs. 853058/- has been paid to LIC towards groups
gratuity scheme of employees.

* Mrs. Shweta Setia ceased from Directorship w.e.f 04.11.2024

(iii) Interest on unsecured loans paid to directors during the year@ 9% p.a in the year 2025 is
43332256/-and in the year 2024 was ''53416554/-

(iv) IND-AS 33 Earning per share

As there is no potential equity share outstanding and as such the diluted earning Per share
(calculated on weighted number of shares held throughout the year) is same as basic earning per
share.

EPS 2024-2025 = Rs. 20.68
EPS 2023-2024 = Rs. 22.36

(v) Ind-AS-12 Deferred Taxes

In accordance with the Ind-AS-12 the deferred tax has been accounted for during the year ended
31.03.2025 The deferred tax Assets in the first year amounting to Rs.2902273/- been credited to
Revenue Reserve and disclosed separately under current liability and provision. The deferred tax/
liability asset related to current year is Rs 6575000/- and current outstanding as at 31.03.2025 is
Rs 9705595/- (calculated duly incorporating the change in the method of providing for depreciation
from W.D.V. to SLM)

The deferred taxes has arisen only on account of difference in depreciation allowable under Income
Tax Act and as per books.

(i) Ind- AS 108 Segmental Reporting

The Company has only one business segment namely rice. There is no different geographical segment.

13. The provisions of the Industries (Development and Regulation) Act, 1951, relating to licensed capacity are
not applicable to the Company. The installed capacities in metric tones per hour are as under:

Karnal 12 MT Rice per hour.

The installed capacity is as certified by the management and relied upon by the Auditors, being a technical
matter

14. Stores & Spares are charged to Profit & Loss at time of Purchase and no inventory in respect of these is
being maintained.

15. The payment due to SSI unit cannot be confirmed in the absence of information regarding the status of
concerned creditors.

16. The Amount shown under Schedule No-19 being cost of material consumed also included cost of packing
material consumed addition to raw material consumed from this year. The Figures of P.Y Year has been
re-arranged to make comparison more homogeneous and practical.

17. During the year 2022-23 the Company has revalued its land at Rs. 9563.27 lacs. The difference arising
between Cost and market price amounting Rs. 7980.81 lacs has been transferred to Revaluation reserve
as per general accepted principle and accounting standards. The change was necessiated due to huge
difference between cost price of land and market price of land and was to make balance sheet more
meaningful for investors.

18. Disclosure as per the requirement of Section 22 of the Micro, Small and Medium Enterprise Development
Act, 2006:

21. Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs
to spend at least 2% of its average net profit for the immediately preceding three financial years on
corporate social responsibility (CSR) activities. The unspent CSR obligation has to be transferred either
to a separate bank account of the company or to any fund included in Schedule VII of the Companies
Act, 2013. Unspent amount pertaining to ongoing projects has to be transferred to a separate bank
account of the company called ‘unspent CSR account'' and unspent amount pertaining to other than
ongoing projects has to be transferred to any fund included in Schedule VII of the Companies Act, 2013.
The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and
culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural
development projects. A CSR committee has been formed by the Company as per the Act. The funds
were primarily utilized throughout the year on these activities which are specified in Schedule VII of the
Companies Act, 2013:

22. A company has been sanctioned Packing Credit Limit of Rs 150 Cr from Punjab Natioonal Bank CBB
Branch,Amritsar against a collateral security of FDR Amt to Rs 1750 Cr which has lien marked by
Punjab National Bank in his favour.The same FDR shown under current assets under Notes other bank
Balances

23. The Company determined that Change in Depreciation method from WDV to SLM is a Change in
Accounting estimate affected by Change in Accounting Principal. A change in Accounting estimate
affected by Change in Accounting Principal is to be applied prospectively.

A Change is considered preferred because SLM method will more accurately reflect the pattern of
usage and the Expected benefits of such Assets and provide greater Consistency with the Depreciation
method used by other Companies in the same Industry.

The Net book value of Assets acquired prior to 01/04/2024 with Useful life remaining will be depreciated
using the SLM method prospectively.

As a result of Change in Deprecation accounting on Fixed assets Depreciation expense will decrease by
Rs 345.57 in Lacs for the year ended 31.03.2025 and consequently Profit will have an Impact of increase
with similar amount.

24. Previous years figures have been regrouped & rearranged where ever considered necessary

SIGNED IN TERMS OF OUR REPORT OF EVEN DATE For and on behalf of the Board of Directors

for RAJESH Kapoor & CO Sd/- Sd/-

Chartered Accountants RAJEEV SETIA ANKIT SETIA

S,/ Joint Managing Director & Cfo EXECUTIVE DIRECTOR

RAJESH KAPOOR ^{DIN :01125921 D|}N:011³³822

Proprietor

M.No 092692 Sd/-

kanika nevtia

PLACE : Amritsar Company Secretary

DATE 28.05.2025 M.No 29680

---

Mar 31, 2024

4.16 Provisions, Contingent Liabilities and contingent assets:

The Company estimates the provisions that have present obligations as a result of past events, and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.

The Company uses significant judgements to disclose contingent liabilities. Contingent liabilities are disclosed when there is a possible Obligation arising from past events, the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent assets are neither recognised nor disclosed in the financial statements

4.17 Segment Reporting

The Company at present is engaged in the business of a single primary reportable business segment i.e. business of manufacturing, trading and marketing of the rice only.

4.18 Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. All other borrowing costs are expensed in the period in which they are incurred. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

Interest and other borrowing costs attributable to qualifying assets are capitalised as a part of such assets till such time the assets are ready for use. Other interest and borrowing costs are charged to Statement of Profit and Loss.

4.19 Earning Per Share

Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year end, except where the results would be anti-dilutive. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.

4.20 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/ loss for the period is adjusted for the effects of transactions of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

4.21 Dividend

Final dividends on shares are recorded as a liability on the date of paid after approval of equity shareholders in Annual General Meeting. An interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors. The Company declares and pays dividends in Indian rupees and are subject to applicable taxes.

4.22 Operating cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Group has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and noncurrent.

4.23 Standards Issued but Not Effective

On March 31, 2023, the Ministry of Corporate Affairs (MCA) has notified Companies (Indian Accounting Standards) Amendment Rules, 2023.

This notification has resulted into amendments in the following existing accounting standards which are applicable to the Company from April 1, 2023.

i. Ind AS 101 - First time adoption of Ind AS.

ii. Ind AS 102 - Share-based payment

iii. Ind AS 103 - Business Combinations

iv. Ind AS 107 - Financial Instruments: Disclosures

v. Ind AS 109 - Financial Instruments

vi. Ind AS 115 - Revenue from Contracts with Customers

vii. Ind AS 1 - Presentation of Financial Statements

viii. Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

ix. Ind AS 12 - Income Taxes

x. Ind AS 34 - Interim Financial Reporting

Notes to Accounts

1. During the year Company has given remuneration to all the directors including managing director & Wholetime directors as per section 197 of Companies Act, 2013 read with Schedule V which is within overall limit as prescribed under Companies Act, 2013 read with Schedule V.

2. Value of Assets as at 21.9.94 the date of Conversion of the firm to the Company under Part IX of the Companies Act 1956 has been taken at value shown in books of erstwhile firm Chaman Lal & Sons.

3. Gratuity Payable to employees at some future date has been duly provided for by the Company by taking Group Gratuity Scheme from LIC of India.

4. Stores, Spares and Labour in respect of internally carried out repair and maintenance of Plant and Machinery and Building have not been charged separately but have been directly charged to stores and spares consumed and wages account.

5. Confirmation of some of the accounts at year-end included under heads ‘Sundry Debtors’, Sundry Creditors'' and Loans and Advances have yet to be received as at the date of the Auditors Report.

6. Payment against supplies from small scale and ancillary undertakings are generally made in accordance with agreed credit terms and to the extent ascertained from available information, there was no amount overdue in this regard.

7. Contingent liabilities as at 31.03.2024

8. a) The Punjab Government has imposed PIDF (development fund) @ 3% on paddy purchase since

2009-210 on all the rice sheller and the liability of the Company on this issue has yet to be determined. However all the rice shellers has appealed against this levy of development fund on the Ground that this is not applicable on exports sales. However domestic sales achieved by the Company in Punjab will be subjected to this development fund if decided against.

b) Company''s appeal is also pending with Hon''ble Gujrat and Haryana High Court against imposition of penalty by Custom Authorities Kandla amounting Rs 1750000/- on the alledged ground of containing higher non-Basmati Grain in one of the export lot.

9. Prior period items if any include Expenses/Income related to previous year not provided for are separately classified as prior period expenditure/income during the current year in accounts.

10. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of the current assets’, loan & advances, deposits in the ordinary course of business will not be less than the value stated in Balance Sheet.

11. Pursuant to the provisions of Section 124 and 125 of the Companies Act, 2013, the Dividend which remain unclaimed/ unpaid for a period of seven years from the date of transfer have to the unpaid dividend account to the Investor Education and Protection Fund (IEPF) established by the Central Government.

12. The status of dividend remaining unclaimed as on 31.03.2024 is given here under:

Note: Some of the year end balances of unclaimed dividend as stated above, has increased due to cancellation of drafts by bank being returned unpaid.

During the year 2021-2022, no dividend has been recommended by Board of Directors.

As per the Companies Act, dividends that are unclaimed for a period of seven years, statutorily get transferred to the Investor Education and Protection Fund (IEPF) administered by the Central Government and therefore shareholders are requested to claim their dividend for the year 2016-17 and thereafter immediately. The Company had, accordingly, transferred Rs. 224454/- being the unpaid and unclaimed dividend amount pertaining to Final Dividend for the financial year ended 2014—2015 and Rs. 246649/-being the unpaid and unclaimed dividend amount pertaining to Interim Dividend for the financial year ended 2015—2016 to the Investor Education and Protection Fund of the Central Government.

Defined Benefit Plan

The employee''s gratuity fund scheme managed by a Trust (Life Insurance Corporation of India) is a defined benefit plan. The premium as determined by the Trust keeping in view the date of joining, salary last drawn etc. of the employee''s is paid yearly by the Company and debited under the head Employee Benefit Expenses. During the year 2023-2024 Rs. 1468955-/. has been paid to LIC towards groups gratuity scheme of employees, however last year 2023-2023 Rs. 810996/- has been paid to LIC towards groups gratuity scheme of employees.

The deferred taxes has arisen only on account of difference in depreciation allowable under Income Tax Act and as per books.

(i) Ind- AS 108 Segmental Reporting

The Company has only one business segment namely rice. There is no different geographical segment.

14. The provisions of the Industries (Development and Regulation) Act, 1951, relating to licensed capacity are not applicable to the Company. The installed capacities in metric tones per hour are as under:

Karnal 12 MT Rice per hour.

The installed capacity is as certified by the management and relied upon by the Auditors, being a technical matter

15. Stores & Spares are charged to Profit & Loss at time of Purchase and no inventory in respect of these is being maintained.

16. The payment due to SSI unit cannot be confirmed in the absence of information regarding the status of concerned creditors.

17. The Amount shown under Schedule No-19 being cost of material consumed also included cost of packing material consumed addition to raw material consumed from this year. The Figures of P.Y Year has be re arranged to make comparison more homogeneous and practical.

18. The Management of the company made sincere and hard work efforts to recover the doubtful Trade debts during the years. However inspite of these efforts, still Rs 447.42 Outstanding which is Undisputed but beyond one year. The company has not made any provision for these doubtfull debts as management is still hopeful to recover the same by legal or arbitration means.

19. Disclosure as per the requirement of Section 22 of the Micro, Small and Medium Enterprise Development Act, 2006:

A) There are no specific claims from suppliers under interest on delayed payments covered under Small Scale & Ancillary Act, 1993.

B) The identification of the micro, small & medium enterprises is based on management''s knowledge of their status. The Company has received from some of the suppliers regarding their status under the MSMED Act 2006.Hence, disclosures, relating to amounts unpaid as at the year end, together with interest paid/ payable as required under the said act have made given.

20. Additional Information Pursuant to point no. 5 of part-II of Schedule-III to the Companies Act 2013:

(A) Licensed and installed Capacity, Actual Production and Opening Stocks:-

31.03.2024 31.03.2023

Licensed Capacity (per hour) 12 MT 12 MT

Installed Capacity (per hour) 12 MT 12 MT

Actual Production (In Qtls) 3,01,107 2,20,951

(B) Quantitative Stocks (In Qtls)

Opening Stock as at Closing Stock as at

01.04.2023 01.04.2024 31.03.2023 31.03.2024

481476 581311 481476 581311

(C) Expenditure in Foreign Exchange

For the year ended For the year ended

^Particulars March 31,2024 March 31,2023

Value of Import of Capital Goods 0 1979273

Export Commission 83354696 65716197

Travelling Expenses 33279960 22414093

Ocean Freight 225966565 578233752

For the year ended For the year ended

^{(D) Value}of Ex^port^{s (FOB)} March31,2024 March31,2023

11792652564 11,556,999,441

(E) Raw Material Consumed:

31.03.2024 31.03.2024 31.03.2023 31.03.2023

Quantity Value Quantity Value

472061 1748321496 347792 1151382479

21. Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The unspent CSR obligation has to be transferred either to a separate bank account of the company or to any fund included in Schedule VII of the Companies Act, 2013. Unspent amount pertaining to ongoing projects has to be transferred to a separate bank account of the company called ‘unspent CSR account'' and unspent amount pertaining to other than ongoing projects has to be transferred to any fund included in Schedule VII of the Companies Act, 2013. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily utilized throughout the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

22. A company has availed Packing Credit Limit Amount to Rs. 50 Cr from Punjab Natioonal Bank CBB Branch,Amritsar against a collateral security of FDR Amount to Rs 16.24 Cr which has lien marked by Punjab National Bank in its favour.The same FDR shown under current assets under Notes other bank Balances

23. Previous years figures have been regrouped & rearranged where ever considered necessary

SIGNED IN TERMS OF OUR REPORT OF EVEN DATE For and on behalf of the Board of Directors

FOR RAJESH KAPOOR & CO Sd/- Sd/-

Chartered Accountants VIJAY KUMAR SETIA RAJEEV SETIA

S,/ Chairman Cum Managing Director Joint Managing Director & Cfo

RAJESH KAPOOR ^{DIN :01125966 DIN :01125921}

Proprietor

M.No 092692 Sd/-

KANIKA NEVTIA

PLACE : Amritsar Company Secretary

DATE 28.05.2024 M.No 29680

---

Mar 31, 2023

1. Contingent liabilities as at 31.3.2023

2. a) The Company''s appeal with Commissioner Excise and Taxation, Punjab for the year 2009-10 is pending

for wrong imposition of Vat amounting Rs.782343/- & CST amounting Rs. 9389/-. However Company has deposited Rs. 195590/- against Vat and Rs. 2400/- against CST being the 25% of the total amount for tendering its appeal.

b) The Company''s appeal with Commissioner Excise and Taxation, Punjab for the year 2010-11 is pending for wrong imposition of Vat amounting Rs.782343/- & CST amounting Rs. 9389/-. However Company has deposited Rs. 195590/- against Vat and Rs. 2400/- against CST being the 25% of the total amount for tendering its appeal.

c) The Company''s appeal with Commissioner Excise and Taxation, Punjab for the year 2011-12 is pending for wrong imposition of Vat amounting Rs.1843094/- & CST amounting Rs.82260/-. However Company has deposited Rs.460774/- against Vat and Rs.20565/- against CST being the 25% of the total amount for tendering its appeal.

d) The Punjab Government has imposed PIDF (development fund) @ 3% on paddy purchase since 2009-210 on all the rice sheller and the liability of the Company on this issue has yet to be determined. However all the rice shellers has appealed against this levy of development fund on the Ground that this is not applicable on exports sales. However domestic sales achieved by the Company in Punjab will be subjected to this development fund if decided against.

e) Company''s appeal is also pending with CESAT Ahmedabad against imposition of penalty by Custom Authorities Kandla amounting Rs 1750000/- on the alledged ground of containing higher Non Basmati Grain in one of the export lot.

f) . As the liability of the company for the year 2009-10 and 2010-11 has been determined at Rs 2618057 and

Rs 33482 and however company has deposited 25 % of This amt Rs 654515 and Rs 8371 and has been preferred an appeal against . This levy of PIDF against the ground that this levy is not applicable on export sales.

9. Prior period items if any include Expenses/Income related to previous year not provided for are separately classified as prior period expenditure/income during the current year in accounts.

10. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of the current assets'' ,loan & advances, deposits in the ordinary course of business will not be less than the value stated in Balance Sheet.

11. Pursuant to the provisions of Section 124 and 125 of the Companies Act, 2013, the Dividend which remain unclaimed/ unpaid for a period of seven years from the date of transfer have to the unpaid dividend account to the Investor Education and Protection Fund (IEPF) established by the Central Government.

12. The status of dividend remaining unclaimed as on 31.03.2023 is given here under:

YEAR	(Rupees in Lacs)
2015-2016	2.46
2016-2017	4.25
2017-2018	1.80
2018-2019	2.09
2019-2020	2.21
2020-2021	2.34
2021-2022*	0

Note: Some of the year end balances of unclaimed dividend as stated above, has increased due to cancellation of drafts by bank being returned unpaid.

During the year 2021-2022, no dividend has been recommended by Board of Directors.

As per the Companies Act, dividends that are unclaimed for a period of seven years, statutorily get transferred to the Investor Education and Protection Fund (IEPF) administered by the Central Government and therefore shareholders are requested to claim their dividend for the year 2016-17 and thereafter immediately. The Company had, accordingly, transferred Rs. Rs. 224454/- being the unpaid and unclaimed dividend amount pertaining to Final Dividend for the financial year ended 2014—2015 and Rs. 246649/- being the unpaid and unclaimed dividend amount pertaining to Interim Dividend for the financial year ended 2015—2016 to the Investor Education and Protection Fund of the Central Government.

13. Compliance with Indian Accounting Standard

(i) Ind-AS 19 for “Employee benefits” the disclosures as defined in the Indian Accounting Standard are given below:

Defined Contribution Plans

Contribution to Defined Contribution plans, recognized as expense for the year is as under:

	2022-23(Rs.)	2021-22 (Rs.)
Contribution to Provident Fund	2114408	2275751
Contribution to Pension Scheme, Insurance scheme & ESI	684907	802253

Defined Benefit Plan

The employee''s gratuity fund scheme managed by a Trust (Life Insurance Corporation of India) is a defined benefit plan. The premium as determined by the Trust keeping in view the date of joining, salary last drawn etc. of the employee''s is paid yearly by the Company and debited under the head Employee Benefit Expenses. During the year 2022-2023 Rs. 810996-/. has been paid to LIC towards groups gratuity scheme of employees, however last year 2021-2022 Rs. 1880678/- has been paid to LIC towards groups gratuity scheme of employees.

(v) Ind-AS-12 Deferred Taxes

In accordance with the Ind-AS-12 the deferred tax has been accounted for during the year ended 31.03.2023 The deferred tax Assets up to amounting to Rs.2902273/- has been credited to Revenue Reserve and disclosed separately under current liability and provision. The deferred tax/liability asset related to current year is Rs 325000 (P.Y 1582000) and current outstanding as at 31.03.2023 is Rsl535695 (P.Y 15031595)

The deferred taxes has arisen only on account of difference in depreciation allowable under Income Tax Act and as per books.

(i) Ind- AS 108 Segmental Reporting

The Company has only one business segment namely rice. There is no different geographical segment.

14. The provisions of the Industries (Development and Regulation) Act, 1951, relating to licensed capacity are not applicable to the Company. The installed capacities in metric tones per hour are as under:

Karnal 12 MT Rice per hour.

The installed capacity is as certified by the management and relied upon by the Auditors, being a technical matter

15. Stores & Spares are charged to Profit & Loss at time of Purchase and no inventory in respect of these is being maintained.

16. The payment due to SSI unit cannot be confirmed in the absence of information regarding the status of concerned creditors.

17. The Amount shown under Schedule No-19 being cost of material consumed also included cost of packing material consumed addition to raw material consumed from this year. The Figures of P.Y Year has be re arranged to make comparison more homogeneous and practical.

18. The management Made very sincere efforts to recover the Trade Receivable Amount To Rs 86.31 lacs which were disputed and doubtful also but no breakthrough could be made till 31.03.2023 as management was hopeful for getting of receivable books debts till 31.03.2023 hence not transfer to Bad debts anyhow as they have become irrecovarable these has been transfer to bad debts in the year 2023-24.

A) There are no specific claims from suppliers under interest on delayed payments covered under Small Scale & Ancillary Act, 1993.

B) The identification of the micro, small & medium enterprises is based on management''s knowledge of their status. The Company has received from some of the suppliers regarding their status under the MSMED Act 2006.Hence, disclosures, relating to amounts unpaid as at the year end, together with interest paid/ payable as required under the said act have made given.

20. Additional Information Pursuant to point no. 5 of part-II of Schedule-III to the Companies Act 2013:

21. Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The unspent CSR obligation has to be transferred either to a separate bank account of the company or to any fund included in Schedule VII of the Companies Act, 2013. Unspent amount pertaining to ongoing projects has to be transferred to a separate bank account of the company called ‘unspent CSR account'' and unspent amount pertaining to other than ongoing projects has to be transferred to any fund included in Schedule VII of the Companies Act, 2013. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily utilized throughout the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

22. Previous years figures have been regrouped & rearranged where ever considered necessary

---

Mar 31, 2018

1. The Company has only one class of share referred to as equity shares having a par value Rs.2 / .Each holder of equity shares is entitled to one vote per share.

2. The Company declares and pays dividend in Indian rupees. Board of Directors recommeded Dividend on 29.05.2018 for the F.Y ended 31.03.2018 @21% is 0.42/- per equity share subject to approval of Shareholders in the ensuing Annual General Meeting.

3. In the event of liquidation of the Company,the holder of equity shares will be entitled to receive any of the remaining assets of the company,after distribution of all preferential amounts. The distribution will be in proportion to number of equity shares held by the shareholders

4. No Share was reserved for issue under options and contracts.

5. No shares was bought back .

6. The shares of Directors/officers are fully paid up.

7. During the year no bonus shares issued

* Aforesaid capital as on 1st April, 2016 is before issuance of bonus share.

There is no default in the Repayment of either Principal or Interest Amount of Secured as well as Unsecured Loan as on the Balance Sheet Date.

1. Company Overview

Your company has been running successfully into rice business since 1973. The long outstanding experience of the Directors has helped the Company to expand its global footprint. Your Company’s diverse product line covers product like Sella Rice, Bhatti Sella Rice for Diabetic peoples ,Smoked rice, Pesticide Residue free rice. Company’s uses its strong relationship with Domestic and Global Business partners for market penetration and presence. Company has introduced newer policies and strategies to facilitate development further.

2) Significant Accounting Policies:

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the periods presented, unless otherwise stated.

Basis of Preparation of Financial Statements

(i) Compliance with IND AS

These financial statements of the Company have been prepared in accordance with Indian Accounting Standards (“IND AS”) as notified by Ministry of Corporate Affairs pursuant to section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended.

These Financial statements for the year ended 31st March, 2018 are the first financial statements prepared by the Company under IND-AS. For all the periods up to and including the year ended 31st March, 2017, the Company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (hereinafter referred to as ‘Previous Gaap’). The Financial Statements for the comparative year ended 31st March, 2017 and opening balance sheet at the beginning of the comparative year as at 01.04.2016 have been restated in accordance with IND AS. Reconciliations and explanations of the effect of the transition from previous GAAP to IND AS on the Company’s Balance Sheet and Statement of Profit and Loss are provided with notes forming part of Financial Statements.

(ii) Historical Cost Convention

The Financial Statements have been prepared on the historical cost convention on going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements, including the preparation of the opening Ind AS Balance Sheet as at April 01, 2016 being the ‘date of transition to Ind AS’.

(iii) Classification of assets and liabilities

The classification of assets and liabilities into current and non-current, wherever applicable, are based on normal operating cycles of business activities of the Company, which is twelve months.

Notes to Accounts

1. During the year Company has given remuneration to all the directors including managing director & Wholetime directors as per section 197 of Companies Act, 2013 read with Schedule V which is within overall limit as prescribed under Companies Act, 2013 read with Schedule V.

2. Value of Assets as at 21.9.94 the date of Conversion of the firm to the Company under Part IX of the Companies Act 1956 has been taken at value shown in books of erstwhile firm Chaman Lal & Sons.

3. Gratuity Payable to employees at some future date has been duly provided for by the Company by taking Group Gratuity Scheme from LIC of India.

4. Stores, Spares and Labour in respect of internally carried out repair and maintenance of Plant and Machinery and Building have not been charged separately but have been directly charged to stores and spares consumed and wages account.

5. Confirmation of some of the accounts at year-end included under heads ‘Sundry Debtors’, Sundry Creditors’ and Loans and Advances have yet to be received as at the date of the Auditors Report.

6. Payment against supplies from small scale and ancillary undertakings are generally made in accordance with agreed credit terms and to the extent ascertained from available information, there was no amount overdue in this regard.

7. Contingent liabilities as at 31.3.2018

8. a) The Company’s appeal with Commissioner Excise and Taxation, Punjab for the year 2009-10 is pending for wrong imposition of Vat amounting Rs. 782343/- & CST amounting Rs.9389./- . However Company has deposited Rs. 195590/- against Vat and Rs. 2400/- against CST being the 25% of the total amount for tendering its appeal.

b) The Company’s appeal with Commissioner Excise and Taxation, Punjab for the year 2010-11 is pending for wrong imposition of Vat amounting Rs. 1843094/- & CST amounting Rs. 82260/-. However Company has deposited Rs. 460774/- against Vat and Rs. 20565/- against CST being the 25% of the total amount for tendering its appeal.

c) The Punjab Government has imposed PIDF (development fund) @ 3% on paddy purchase since 2009-2010 on all the rice sheller and the liability of the Company on this issue has yet to be determined. However all the rice shellers has appealed against this levy of development fund on the Ground that this is not applicable on exports sales. However domestic sales achieved by the Company in Punjab will be subjected to this development fund if decided against.

d) Company’s appeal is also pending with CESAT Ahmedabad against imposition of penalty by Custom Authorities Kandla amounting Rs.17,50,000/- on the alledged ground of containing higher Non Basmati Grain in one of the export lot.

9. Prior period items include Expenses/Income related to previous year not provided for are separately classified as prior period expenditure/income during the current year in accounts.

10. In the opinion of the Board and to the best of their knowledge and belief,the value on realization of the current asssets,loan & advances, deposits in the ordinary course of business will not be less than the value stated in Balance Sheet.

11. Pursuant to the provisions of Section 124 and 125 of the Companies Act, 2013, the Dividend which remain unclaimed/unpaid for a period of seven years from the date of transfer to the unpaid dividend account to the Investor Education and Protection Fund (IEPF) established by the Central Government.

As per the Companies Act, dividends that are unclaimed for a period of seven years, statutorily get transferred to the Investor Education and Protection Fund (IEPF) administered by the Central Government and therefore shareholders are requested to claim their dividend for the year 2010-11 and thereafter immediately. The Company had, accordingly, transferred Rs. 204488/- being the unpaid and unclaimed dividend amount pertaining to Final Dividend for the financial year ended 2009-2010 to the Investor Education and Protection Fund of the Central Government.

A) There are no specific claims from suppliers under interest on delayed payments covered under Small Scale & Ancillary Act, 1993.

B) The Company does not have any dues payable to any micro, small and medium enterprises as at the year end. The identification of the micro, small & medium enterprises is based on management’s knowledge of their status. The Company has not received any intimation from the suppliers regarding their status under the MSMED Act 2006.Hence, disclosures, if any, relating to amounts unpaid as at the year end, together with interest paid/payable as required under the said act have not been given.

12. Compliance with Indian Accounting Standard

(i) Ind-AS 19 for “Employee benefits” the disclosures as defined in the Indian Accounting Standard are given below:

Defined Contribution Plans

Contribution to Defined Contribution plans, recognized as expense for the year is as under:

Defined Benefit Plan

The employee’s gratuity fund scheme managed by a Trust (Life Insurance Corporation of India) is a defined benefit plan. The premium as determined by the Trust keeping in view the date of joining ,salary last drawn etc. of the employee’s is paid yearly by the Company and debited under the head Employee Benefit Expenses. During the year Rs. 27060 ./- has been paid to LIC towards groups gratuity scheme of employees.

In addition dividend was also paid to them, disclosed in this report elsewhere.

(b) Interest on unsecured loans paid to directors during the year@ 12% p.a is Rs. 39443907/-.

(iii) IND-AS 33 Earning per share

As there is no potential equity share outstanding and as such the diluted earning Per share is same as basic earning per share.

EPS = Rs. 8.05

(iv) Ind-AS-12 Deferred Taxes

In accordance with the Ind-AS-12 the deferred tax has been accounted for during the year ended 31.03.2018.The deferred tax Assets up to amounting to Rs. 2902273/- has been credited to Revenue Reserve and disclosed separately under current liability and provision. The deferred tax asset related to current year is Rs. 587142 /- and current outstanding as at 31.03.2018 is Rs. 9319595 /-

The deferred taxes has arisen only on account of difference in depreciation allowable under Income Tax Act and as per books. (i) Ind- AS 108 Segmental Reporting

The Company has only one business segment namely rice. There is no different geographical segment.

The installed capacity is as certified by the management and relied upon by the Auditors, being a technical matter

13. Stores & Spares are charged to Profit & Loss at time of Purchase and no inventory in respect of these is being maintained.

14. There was no payment exceeding Rs One Lac due to any small scale industrial undertaking as known to Management.

15. Additional Information Pursuant to point no. 5 of part-II of Schedule-III to the Companies Act 2013:-

16. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND-AS) 10: EVENT AFTER THE REPORTING PERIOD:-

The Board of Directors has recommended Equity Dividend of 21% i.e. Rs. 0.42 per share (Previous Year 20% i.e. Rs. 0.40 per share) for the financial year 2017-2018.

17. Previous Years figures have been regrouped & rearranged where ever considered necessary

---

Mar 31, 2016

Notes to Accounts

1. Managerial Remuneration

During the year Company has given remuneration to all the directors including managing director & Whole time directors as per section 197 of Companies Act, 2013 read with Schedule V which is within overall limit as prescribed under Companies Act, 2013 read with Schedule V.

2. Value of Assets as at 21.9.94 the date of Conversion of the firm to the Company under Part IX of the Companies Act 1956 has been taken at value shown in books of erstwhile firm Chaman Lal & Sons.

3. Gratuity Payable to employees at some future date has been duly provided for by the Company by taking Group Gratuity Scheme from LIC of India.

4. Stores, Spares and Labour in respect of internally carried out repair and maintenance of Plant and Machinery and Building have not been charged separately but have been directly charged to stores and spares consumed and wages account.

5. Confirmation of some of the accounts at year-end included under heads ''Sundry Debtors'', Sundry Creditors'' and Loans and Advances have yet to be received as at the date of the Auditors Report.

6. Payment against supplies from small scale and ancillary undertakings are generally made in accordance with agreed credit terms and to the extent ascertained from available information, there was no amount overdue in this regard.

7. Contingent liabilities as at 31.3.2016

8. a) The Company''s appeal with Commissioner Excise and Taxation, Punjab for the year 2009-10 is pending for wrong imposition of Vat amounting Rs. 782343/- & CST amounting Rs.9389/- . However Company has deposited Rs. 195590/- against Vat and Rs. 2400/- against CST being the 25% of the total amount for tendering its appeal.

b) The Company''s appeal with Commissioner Excise and Taxation, Punjab for the year 2010-11 is pending for wrong imposition of Vat amounting Rs. 1843094/- & CST amounting Rs. 82260/-. However Company has deposited Rs. 460774/- against Vat and Rs. 20565./- against CST being the 25% of the total amount for tendering its appeal.

c) The Punjab Government has imposed PIDF (development fund) @ 3% on paddy purchase since 2009-2010 on all the rice sheller and the liability of the Company on this issue has yet to be determined. However all the rice shellers has appealed against this levy of development fund on the Ground that this is not applicable on exports sales. However domestic sales achieved by the Company in Punjab will be subjected to this development fund if decided against.

d) Company''s appeal is also pending with CESAT Ahmedabad against imposition of penalty by Custom Authorities Kandla amounting Rs. 1750000/- on the alledged ground of containing higher Non Basmati Grain in one of the export lot.

e) The Company Appeal with Income Tax Appellate Authority Tribunal Amritsar, is pending for the Assessment Year 2012-2013 and Assessment Year 2013-2014 for wrong imposition of TDS amount Rs. 896937/- and Rs. 1211055/- respectively by the Income Tax Authorities.

9. Prior period items include Expenses/Income related to previous year not provided for are separately classified as prior period expenditure/income during the current year in accounts.

10. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of the current assets, loan & advances, deposits in the ordinary course of business will not be less than the value stated in Balance Sheet.

11. Pursuant to the provisions of Section 124 and Section 125 of the Companies Act, 2013, read with Section 205C of the Companies Act,1956, the Dividend which remain unclaimed/unpaid for a period of seven years from the date of transfer to the unpaid dividend account is required to be transferred to the Investor Education and Protection Fund (IEPF) established by the Central Government.

A) There are no specific claims from suppliers under interest on delayed payments covered under Small Scale & Ancillary Act, 1993.

B) The Company does not have any dues payable to any micro, small and medium enterprises as at the year end. The identification of the micro, small & medium enterprises is based on management’s knowledge of their status. The Company has not received any intimation from the suppliers regarding their status under the MSMED Act 2006.Hence, disclosures, if any, relating to amounts unpaid as at the year end, together with interest paid/payable as required under the said act have not been given.

Defined Benefit Plan

The employee’s gratuity fund scheme managed by a Trust (Life Insurance Corporation of India) is a defined benefit plan. The premium as determined by the Trust keeping in view the date of joining ,salary last drawn etc.of the employee’s is paid yearly by the Company and debited under the head Employee Benefit Expenses. During the year Rs.284598./- has been paid to LIC towards groups gratuity scheme of employees.

(2) Interest on unsecured loans paid to directors during the year@ 12% p.a is Rs. 17323968/-

(iii) AS-20 Earning per share

As there is no potential equity share outstanding and as such the diluted earning Per share is same as basic earning per share.

EPS = Rs. 7.95

(iv) AS-22 Deferred Taxes

In accordance with the accounting standard AS-22 the deferred tax has been accounted for during the year ended 31.03.2016.The deferred tax Assets up to 31.03.2001 amounting to Rs 2902273/- has been credited to Revenue Reserve and disclosed separately under current liability and provision. The deferred tax liability related to current year is Rs 1787000/- and current outstanding as at 31.03.2016 is Rs. 14266737/The deferred taxes has arisen only on account of difference in depreciation allowable under Income Tax Act and as per books.

(v) AS-17 Segmental Reporting

The Company has only one business segment namely rice. There is no different geographical segment.

13. The provisions of the Industries (Development and Regulation) Act, 1951, relating to licensed capacity are not applicable to the Company. The installed capacities in metric tones per hour are as under:

Amritsar (Leased) 2 MT Rice per hour.

Karnal 12 MT Rice per hour.

The installed capacity is as certified by the management and relied upon by the Auditors, being a technical matter

14. Stores & Spares are charged to Profit & Loss at time of Purchase and no inventory in respect of these is being maintained.

15. There was no payment exceeding Rs One Lac due to any small scale industrial undertaking as known to Management.

16. Additional Information Pursuant to point no. 5 of part-II of Schedule-III to the Companies Act 2013:-

17. Previous Years figures have been regrouped & rearranged where ever considered necessary.

---

Mar 31, 2015

1. Managerial Remuneration

During the year Company has given remuneration to all the directors including managing director & Whole time directors as per section 197 of Companies Act, 2013 read with Schedule V which is within overall limit of 11% of net Profit as calculated.

2. Value of Assets as at 21.9.94 the date of Conversion of the form to the Company under Part IX of the Companies Act 1956 has been taken at value shown in books of erstwhile form Chaman Lal & Sons.

3. Gratuity Payable to employees at some future date has been duly provided for by the Company by taking Group Gratuity Scheme from LIC of India.

4. Stores, Spares and Labour in respect of internally carried out repair and maintenance of Plant and Machinery and Building have not been charged separately but have been directly charged to stores and spares consumed and wages account.

5. Confirmation of some of the accounts at year-end included under heads 'Sundry Debtors', Sundry Creditors' and Loans and Advances have yet to be received as at the date of the Auditors Report.

6. Payment against supplies from small scale and ancillary undertakings are generally made in accordance with agreed credit terms and to the extent ascertained from available information, there was no amount overdue in this regard.

7. The Managerial Remuneration has been paid within the limits of Section 197 of Companies Act 2013. Managing Director Rs. 4919154/- Whole Time Directors Rs. 13288974/-

8. Contingent liabilities as at 31.3.2015

9. a) The Company's appeal with Commissioner Excise and Taxation, Punjab for the year 2009-10 is pending for wrong imposition of Vat amounting Rs. 782343/- & CST amounting Rs. 9389/-. However Company has deposited Rs. 195590/- against Vat and Rs. 2400/- against CST being the 25% of the total amount for tendering its appeal.

b) The Company's appeal with Commissioner Excise and Taxation, Punjab for the year 2010-11 is pending for wrong imposition of Vat amounting Rs. 1843094/- & CST amounting Rs. 82260/-. However Company has deposited Rs. 460774/- against Vat and Rs. 20565/- against CST being the 25% of the total amount for tendering its appeal.

c) The Punjab Government has imposed PIDF (development fund) @ 3% on paddy purchase since 2009-2010 on all the rice sheller and the liability of the Company on this issue has yet to be determined. However all the rice shellers has appealed against this levy of development fund on the Ground that this is not applicable on exports sales. However domestic sales achieved by the Company in Punjab will be subjected to this development fund if decided against.

d) Company's appeal is also pending with CESAT Ahmadabad against imposition of penalty by Custom Authorities Kandla amounting Rs. 1750000/- on the alledged ground of containing higher Non Basmati Grain in one of the export lot.

10. Prior period items include Expenses/Income related to previous year not provided for are separately classified as prior period expenditure/income during the current year in accounts.

11. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of the current assets, loan & advances, deposits in the ordinary course of business will not be less than the value stated in Balance Sheet.

12. Pursuant to the provisions of Sections 205A and 205C of the Companies Act,1956,the Dividend which remain unclaimed/unpaid for a period of seven years from the date of transfer to the unpaid dividend account is required to be transferred to the Investor Education and Protection Fund (IEPF) established by the Central Government.

As per the Companies Act, dividends that are unclaimed for a period of seven years, statutorily get transferred to the Investor Education and Protection Fund (IEPF) administered by the Central Government and thereafter, cannot be claimed by investors. The Company had, accordingly, transferred Rs. 123446/- as on 18.11.2014 being the unpaid and unclaimed dividend amount pertaining to Final Dividend for the financial year ending 2006-2007 to the Investor Education and Protection Fund of the Central Government.

A) There are no specific claims from suppliers under interest on delayed payments covered under Small Scale & Ancillary Act, 1993.

B) The Company does not have any dues payable to any micro, small and medium enterprises as at the year end. The identification of the micro, small & medium enterprises is based on management's knowledge of their status. The Company has not received any intimation from the suppliers regarding their status under the MSMED Act 2006.Hence, disclosures, if any, relating to amounts unpaid as at the year end, together with interest paid/payable as required under the said act have not been given.

13. Compliance with Accounting Standard

(i) AS-15 Accounting Standard for "Employee benefits" the disclosures as defend in the Accounting Standard are given below:

Defend Benefit Plan

The employee's gratuity fund scheme managed by a Trust (Life Insurance Corporation of India) is a defend benefit plan. The premium as determined by the Trust keeping in view the date of joining ,salary last drawn etc.of the employee's is paid yearly by the Company and debited under the head Employee Benefit Expenses. During the year Rs. 323187/- has been paid to LIC towards groups gratuity scheme of employees.

(i) AS-18 Related party transaction

Details pertaining to related party transaction in respect of key managerial personnel of the company are as follow: -

(a) Shri Chaman Lal Setia Chairman cum Managing Director.

(b) Shri Vijay Setia Executive Director

(c) Shri Rajeev Setia Executive Director

(d) Shri Sukarn Setia Executive Director

(e) Shri Ankit Setia Executive Director

(f) Shri Sankesh Setia Executive Director

(i) Remuneration paid to chairman & Managing Director and executive director is Rs.4919154/- and Rs.13288974/- respectively

(ii) Interest on unsecured loans paid to directors during the year@ 12% p.a is Rs. 25440829/-

The Company has not entered into any transaction with relative of key managerial personnel.

(iii) AS-20 Earning per share

As there is no potential equity share outstanding and as such the diluted earning

Per share is same as basic earnings per share.

EPS = Rs.20.98

(iv) AS-22 Deferred Taxes

In accordance with the accounting standard AS-22 the deferred tax has been accounted for during the year ended 31.03.15.The deferred tax Assets up to 31.03.2001 amounting to Rs 2902273/- has been credited to Revenue Reserve and disclosed separately under current liability and provision. The deferred tax assets related to current year is Rs 709000/- which has been set off against the above said amount and current outstanding as at 31.03.2015 is Rs. 12479737.

The deferred taxes has arisen only on account of difference in depreciation allowable under Income Tax Act and as per books.

(i) AS-17 Segmental Reporting

The Company has only one business segment namely rice. There is no different geographical segment.

14. The provisions of the Industries (Development and Regulation) Act, 1951, relating to licensed capacity are not applicable to the Company. The installed capacities in metric tons per hour are as under:

Amritsar (Leased) 2 MT Rice per hour.

Karnal 12 MT Rice per hour.

The installed capacity is as certified by the management and relied upon by the Auditors, being a technical matter

15. Stores & Spares are charged to Profit & Loss at time of Purchase and no inventory in respect of these is being maintained.

16. There was no payment exceeding Rs One Lac due to any small scale industrial undertaking as known to Management.

17. Additional Information Pursuant to point no. 5 of part-II of Schedule-III to the Companies Act 2013

---

Mar 31, 2014

A) Your company has been running successfully into rice business since 1973. The long outstanding experience of the Directors has helped the Company to expand its global footprint. Your Company''s diverse product line covers product like Sella Rice, Bhatti Sella , Rice for Diabetic peoples ,Smoked rice, Pesticide Residue free rice. Company''s uses its strong relationship with Domestic and Global Business partners for market penetration and presence. Company has introduced newer policies and strategies to facilitate development further.

1. Value of Assets as at 21.9.94 the date of Conversion of the firm to the Company under Part IX of the Companies Act 1956 has been taken at value shown in books of erstwhile firm Chaman Lal & Sons.

2. Gratuity Payable to employees at some future date has been duly provided for by the Company by taking Group Gratuity Scheme from LIC of India.

3. Stores, Spares and Labour in respect of internally carried out repair and maintenance of Plant and Machinery and Building have not been charged separately but have been directly charged to stores and spares consumed and wages account.

4. Confirmation of some of the accounts at year-end included under heads ''Sundry Debtors'', Sundry Creditors'' and Loans and Advances have yet to be received as at the date of the Auditors Report.

5. Payment against supplies from small scale and ancillary undertakings are generally made in accordance with agreed credit terms and to the extent ascertained from available information, there was no amount overdue in this regard.

6. The Managerial Remuneration has been paid within the limits of Section 198 of Companies Act 1956. Managing Director Rs. 4912862/- Whole Time Directors Rs. 12061839/-

7. Contingent liabilities as at 31.3.2014

8. a) The Company''s appeal with Commissioner Excise and Taxation, Punjab for the year 2009-10 is pending for wrong imposition of Vat amounting Rs. 782343/- & CST amounting Rs. 9389/- .

However Company has deposited Rs. 195590/- against Vat and Rs. 2400/- against CST being the 25% of the total amount for tendering its appeal.

b) The Company''s appeal with Commissioner Excise and Taxation, Punjab for the year 2010-11 is pending for wrong imposition of Vat amounting Rs. 1843094/- & CST amounting Rs. 82260/-.

However Company has deposited Rs. 460774/- against Vat and Rs. 20565/- against CST being the 25% of the total amount for tendering its appeal.

c) The Punjab Government has imposed PIDF (development fund) @ 3% on paddy purchase since 2009-2010 on all the rice sheller and the liability of the Company on this issue has yet to be determined. However all the rice shellers has appealed against this levy of development fund on the Ground that this is not applicable on paddy utilized for exports sales. However domestic sales achieved by the Company in Punjab will be subjected to this development fund if decided against.

d) Company''s appeal is also pending with CESAT Ahmedabad against imposition of penalty by Custom Authorities Kandla amounting Rs. 1750000/- on the alledged ground of containing higher Non Basmati Grain in one of the export lot.

9. Prior period items include Expenses/Income related to previous year not provided for are separately classified as prior period expenditure/income during the current year in accounts.

10. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of the current asssets, loan & advances, deposits in the ordinary course of business will not be less than the value stated in Balance Sheet.

11. Pursuant to the provisions of Sections 205A and 205C of the Companies Act,1956,the Dividend which remain unclaimed/unpaid for a period of seven years from the date of transfer to the unpaid dividend account is required to be transferred to the Investor Education and Protection Fund (IEPF) established by the Central Government.

As per the Companies Act, 1956, dividends that are unclaimed for a period of seven years, statutorily get transferred to the Investor Education and Protection Fund (IEPF) administered by the Central Government and thereafter, cannot be claimed by investors. The Company had accordingly transferred Rs. 1,62,052.00 being the unpaid and unclaimed dividend amount pertaining to Final Dividend for the year 2006, respectively, to the Investor Education and Protection Fund of the Central Government. Members having unclaimed dividends pertaining to the year 2007 dated 29.09.2007 and have not encashed their dividend warrants are advised to write to the Company immediately claiming dividends declared by the Company are requested.

A) There are no specific claims from suppliers under interest on delayed payments covered under Small Scale & Ancillary Act, 1993.

B) The Company does not have any dues payable to any micro, small and medium enterprises as at the year end. The identification of the micro, small & medium enterprises is based on management''s knowledge of their status. The Company has not received any intimation from the suppliers regarding their status under the MSMED Act 2006.Hence, disclosures, if any, relating to amounts unpaid as at the year end, together with interest paid/payable as required under the said act have not been given.

12 Compliance with Accounting Standard

(i) AS-15 Accounting Standard for "Employee benefits" the disclosures as defined in the Accounting Standard are given below: Defined Contribution Plans

Defined Benefit Plan

The employee''s gratuity fund scheme managed by a Trust (Life Insurance Corporation of India) is a defined benefit plan. The premium as determined by the Trust keeping in view the date of joining ,salary last drawn etc.of the employee''s is paid yearly by the Company and debited under the head Employee Benefit Expenses. During the year Rs. 808098/- has been paid to LIC towards groups gratuity scheme of employees.

(i) AS-18 Related party transaction

Details pertaining to related party transaction in respect of key managerial personnel of the company are as follow: -

(a) Shri Chaman Lal Setia Chairman cum Managing Director.

(b) Shri Vijay Setia Executive Director

(c) Shri Rajeev Setia Executive Director

(d) Shri Sukarn Setia Executive Director

(e) Shri Ankit Setia Executive Director

(I) Remuneration paid to chairman & Managing Director and executive director is Rs 4912862/- and Rs. 12061839/- respectively.

(ii) Interest on unsecured loans paid to directors during the year@ 12% p.a is Rs. 17743099/- The Company has not entered into any transaction with relative of key managerial personnel.

The Company has not entered into any transaction with relative of key managerial personnel.

(iii) AS-20 Earning per share

As there is no potential equity share outstanding and as such the diluted earning Per share is same as basic earning per share.

EPS = Rs.19.62

(iv) AS-22 Deferred Taxes

In accordance with the accounting standard AS-22 the deferred tax has been accounted for during the year ended 31.03.14 .The deferred tax Assets up to 31.03.2001 amounting to Rs 2902273/- has been credited to Revenue Reserve and disclosed separately under current liability and provision. The deferred tax Liability related to current year is Rs 296400.00 which has been set off against the above said amount and current outstanding as at 31.03.2014 is Rs. 13188737.00

The deferred taxes has arisen only on account of difference in depreciation allowable under Income Tax Act and as per books.

(i) AS-17 Segmental Reporting

The Company has only one business segment namely rice. There is no different geographical segment.

13. The provisions of the Industries (Development and Regulation) Act, 1951, relating to licensed capacity are not applicable to the Company. The installed capacities in metric tones per hour are as under:

Amritsar (Leased) 2 MT Rice per hour.

Karnal 12 MT Rice per hour.

The installed capacity is as certified by the management and relied upon by the Auditors, being a technical matter.

14. Stores & Spares are charged to Profit & Loss at time of Purchase and no inventory in respect of these is being maintained.

15. There was no payment exceeding Rs One Lac due to any small scale industrial undertaking as known to Management.

16. Previous Years figures have been regrouped & rearranged where ever considered necessary to present Balance Sheet as near as possible to the Revised Schedule VI.

---

Mar 31, 2013

1. Value of Assets as at 21.9.94 the date of conversion of the firm to the Company under Part IX of the Companies Act 1956 has been taken at value shown in books of erstwhile firm Chaman Lai & Sons.

2. Gratuity Payable to employees at some future date has been duly provided for by the Company by taking Group Gratuity Scheme from LIC of India.

3. Stores, Spares and Labour in respect of internally carried out repair and maintenance of Plant and Machinery and Building have not been charged separately but have been directly charged to stores and spares consumed and wages account.

4. Confirmation of some of the accounts at year-end included under heads ''Sundry Debtors'', Sundry Creditors'' and Loans and Advances have yet to be received as at the date of the Auditors Report.

5. Payment against supplies from small scale and ancillary undertakings are generally made in accordance with agreed credit terms and to the extent ascertained from available information, there was no amount overdue in this regard.

6. The preliminary and share issue expenses are being amortized over a period of ten years and the balance is kept as Miscellaneous Expenditure to the extent not written off. Fresh expenses, if any have been amortized over a period of 5 years.

7. The Managerial Remuneration has been paid within the limits of Section 198 of Companies Act 1956. « Managing Director Rs 698600/-Whole Time Directors Rs.2765084/-

8. Contingent liabilities as at 31.3.2013

9. The Company''s appeal with Commissioner Excise and Taxation, Punjab against the Order of Excise & Taxation Officer for levying Infrastructure Tax on the Sales of Rice/Paddy within Punjab amounting to Rs.34.10 Lacs is still pending.

10 Prior period items include Expenses/Income related to previous year not provided for are separately classified as prior period expenditure/income during the current year in accounts.

11 In the opinion of the Board and to the best of their knowledge and belief.the value on realization of the current asssetsjoan & advances, deposits in the ordinary course of business will not be less than the value stated in Balance Sheet.

12 Pursuant to the provisions of Sections 205A and 205C of the Companies Act,1956,the Dividend which remain unclaimed/unpaid for a period of seven years from the date of transfer to the unpaid dividend account is required to be transferred to the Investor Education and Protection Fund (IEPF) established by the Central Government.

13. The provisions of the Industries (Development and Regulation) Act, 1951, relating to licensed capacity are not applicable to the Company. The installed capacities in metric tones per hour are as under:

14. Stores & Spares are charged to Profit & Loss at time of Purchase and no inventory in respect of these is being maintained.

15. There was no payment exceeding Rs One Lac due to any small scale industrial undertaking as known to Management.

---

Mar 31, 2012

Company Overview

A) Your company has been running successfully into rice business since 1973. The long outstanding experience of the Directors has helped the Company to expand its global footprint. Your Company's diverse product line covers product like Sella Rice.Bhatti Sella, Rice for Diabetic peoples .Smoked rice, Pesticide Residue free rice. Company's uses its strong relationship with Domestic and Global Business partners for market penetration and presence. Company has introduce newer policies and strategies to facilitate development further.

1. Value of Assets as at 21.9.94 the date of Conversion ofthe firm to the Company under Part IX ofthe Companies Act 1956 has been taken at value shown in books of erstwhile firm Chaman Lai & Sons.

2. Gratuity Payable to employees at some future date has been duly provided for by the Company by taking Group Gratuity Scheme from LIC of India.

3. Stores, Spares and Labour in respect of internally carried out repair and maintenance of Plant and Machinery and Building have not been charged separately but have been directly charged to stores and spares consumed and wages account.

4. Confirmation of some ofthe accounts at year-end included under heads 'Sundry Debtors', Sundry Creditors' and Loans and Advances have yet to be received as at the date of the Auditors Report.

5. Payment against supplies from small scale and ancillary undertakings are generally made in accordance with agreed credit terms and to the extent ascertained from available information, there was no amount overdue in this regard.

6. The preliminary and share issue expenses are being amortized over a period of ten years and the balance is kept as Miscellaneous Expenditure to the extent not written off. Fresh expenses, if any have been amortized over a period of 5 years.

7. The Managerial Remuneration has been paid within the limits of Section 198 of Companies Act 1956.

Managing Director Rs 611900/-Whole Time Directors Rs.2456587/-

8. Contingent liabilities as at 31.3.2012

The Company has filed an appeal with Commissioner Excise and Taxation, Punjab against the Order of Excise & Taxation Officer for levying Infrastructure Tax on the Sales of Rice within Punjab amounting to Rs.34.10 Lacs.

9 Prior period items include Expenses/Income related to previous year not provided for are separately classified as prior period expenditure/income during the current year in accounts.

10 In the opinion ofthe Board and to the best of their knowledge and belief,the value on realization ofthe current asssets,loan & advances, deposits in the ordinary course of business will not be less than the value stated in Balance Sheet.

11 Pursuant to the provisions of Sections 205Aand 205C ofthe Companies Act, 1956, the Dividend which remain unclaimed/unpaid fora period of seven years from the date of transfer to the unpaid dividend account is required to be transferred to the Investor Education and Protection Fund (IEPF) established by the Central Government.

As seven years have not expired from date of transfer to the unpaid dividend account, the amount is not required to be transferred to Investor Education and Protection Fund (IEPF) 12. The provisions of section 205C of the Companies Act 1956 regarding Investor education and protection fund are applicable during the the year and the total amount lying unpaid in dividend account for more than 7 years has been transferred to Investor education & protection fund.

A) There are no specific claims from suppliers under interest on delayed payments covered under Small Scale & Ancillary Act, 1993.

B) The Company does not have any dues payable to any micro, small and medium enterprises as at the year end. The identification of the micro, small & medium enterprises is based on management's knowledge of their status. The Company has not received any intimation from the suppliers regarding their status under the MSMED Act 2006.Hence, disclosures, if any, relating to amounts unpaid as at the year end, together with interest paid/payable as required underthe said act have not been given.

(I) Remuneration paid to chairman & Managing Director and executive director is Rs 611900/- and Rs2456587 /- respectively.

(ii) Interest on unsecured loans paid to directors during the year@ 12% p.a is Rs12748754/- The Company has not entered into any transaction with relative of key managerial personnel.

(iii) AS-20 Earning per share

As there is no potential equity share outstanding and as such the diluted earning Per share is same as basic earning per share.

EPS = Rs.8.29

(iv) AS-22 Deferred Taxes

In accordance with the accounting standard AS-22 the deferred tax has been accounted for during the year ended 31.03.11. The deferred tax Assets up to 31.03.2001 amounting to Rs 2902273/- has been credited to Revenue Reserve and disclosed separately under current liability and provision. The deferred tax Liability related to current year is Rs 6700001- which has been set off against the above said amount and current outstanding as at 31.03.2012 is Rs 11012337.

The deferred taxes has arisen only on account of difference in depreciation allowable under Income Tax Act and as per books.

(i) AS-19 Segmental Reporting

The Company has only one business segment namely rice. There is no different geographical segment.

The installed capacity is as certified by the management and relied upon by the Auditors, being a technical matter.

12. Stores & Spares are charged to Profit & Loss at time of Purchase and no inventory in respect of these is being maintained.

13. There was no payment exceeding Rs One Lac due to any small scale industrial undertaking as known to Management.

14. Previous Years figures have been regrouped & rearranged where ever considered necessary to present Balance Sheet as near as possible to the Revised Schedule VI.

---

Mar 31, 2010

1. Value of Assets as at 21.9.94 the date of Conversion of the firm to the Company under Part IX of the Companies Act 1956 has been taken at value shown in books of erstwhile firm Chaman Lai & Sons.

2. Gratuity Payable to employees at some future date has been duly provided for by the Company by taking Group Gratuity Scheme from LIC of India.

3. Stores, Spares and Labour in respect of internally carried out repair and maintenance of Plant and Machinery and Building have not been charged separately but have been directly charged to stores and spares consumed and wages account.

4. Confirmation of some of the accounts at year-end included under heads Sundry Debtors, Sundry Creditors and Loans and Advances have yet to he received as at the date of the Auditors Report.

5. Payment against supplies from small scale and ancillary undertakings are generally made in accordance with agreed credit terms and to the extent ascertained from available information, there was no amount overdue in this regard.

6. The preliminary and share issue expenses are being amortized over a period of ten years and the balance is kept as Miscellaneous Expenditure to the extent not written off. Fresh expenses, if any have been amortized over a period of 5 years.

7. The Managerial Remuneration has been paid within the limits of Section 198 of Companies Act 1956. Managing Director Rs 467077/-WholeTime Directors Rs.2683161/-

8. Contingent liabilities as at 31.3.2010

9. The Company has filed a writ petition in Apex Court against the decision of Punjab Govt, of levying Infra-Structure Tax @ 1% on domestic sales, the amount of which is not quantifiable. However the company has paid the tax for the year under audit.

(i) Doubtful debts for whom no provision has been made Rs.-5035924/-

10. Compliance with Accounting Standard

(i) AS-18 Related party transaction

Details pertaining to related party transaction in respect of key managerial personnel of the company are as follow: -

(a) Shri Chaman Lai Setia Chairman cum Managing Director.

(b) Shri Vijay Setia Executive Director

(c) Shri Rajeev Setia Executive Director

(d) Shri Sukarn Setia Executive Director

(e) Shri Ankit Setia Executive Director

(I) Remuneration paid to chairman & Managing Director and executive director is Rs 467077/- and Rs2683161 /- respectively.

(ii) Interest on unsecured loans paid to directors during the year® 12% p.a is Rs. 13913207/- The Company has not entered into any transaction with relative of key managerial personnel.

(iii) AS-20 Earning per share

As there is no potential equity share outstanding and as such the diluted earning Per share is same as basic earning per share. EPS = Rs.7.53 (iv) AS-22 Deferred Taxes

In accordance with the accounting standard AS-22 the deferred tax has been accounted for during the year ended 31.03.10 The deferred tax Assets up to 31.03.2001 amounting to Rs 2902273/- has been credited to Revenue Reserve and disclosed separately. The deferred tax liability related to current year is Rs 3981200/- which has been set off against the above said amount.

The deferred taxes has arisen only on account of difference in depreciation allowable under Income Tax Act and as per books.

(i) AS-19 Segmental Reporting

The Company has only one business segment namely rice. There is no different geographical segment.

11. The provisions of section 205C of the Companies Act 1956 regarding Investor education and protection fund are applicable during the the year and the total amount lying unpaid in dividend account for more than 7 years has been transferred to Investor education & protection fund..

12. Stores & Spares are charged to Profit & Loss at time of Purchase and no inventory in respect of these is being maintained.

13. There was no payment exceeding Rs One Lac due to any small scale industrial undertaken.

14. Previous Years figures have been regrouped & rearranged where ever considered necessary to present Balance Sheet as near as possible to the schedule VI.