Directors Report of Sun Granite Export Ltd.

Mar 31, 2014

Dear Shareholders,

The Directors have pleasure in presenting their 23rd Annual report of the Company together with its Audited statement of profit & loss for the year ended 31st March 2014 and balance sheet as on date.

FINANCIAL PERFORMANCE

(Rupees in lacs)

Particulars Year Ending Year Ending 2013-14 2012-13

Total Income INCLUDING other income 7.60 50.77

Expenditure 141.58 249.06

Interest & Financial Charges 23.52 27.10

Depreciation 42.86 60.34

Net Profit/(loss) (133.99) (198.30)

Provision For Income Tax Nil Nil

Profit Carried to Balance Sheet (133.99) (198.30)

DIVIDEND

On account of the loss after tax reported by the Company during the current year, resultant of the recognition of the other than temporary, diminution in the value of some of the investment the Board of Directors of the Company do not recommend any dividend for the year 2013/14. ''

OPERATION AND FINANCIAL PERFORMANCE.

During the financial year 2013-14 the Company achieved sales of Rs.3.53 Lacs as against sales of Rs. 45.70 lacs during the previous year. Decrease in capacity utilization has resulted to poor performance. Operations of two quarries remained under suspension due to legal problem created by the Forest Department, Ganjam District, Orissa. The Management has taken up the matter with the appropriate forums for redressal and made fresh application for new quarries to meet the requirement of Raw materials of the Company. Besides the company was unable to arrange required working capital finance to run the company smoothly. Efforts are expected to be taken in this regard to improve the performance of the company in forthcoming year.

CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORT

As required by clause 49 of the Listing agreement with the Stock Exchanges, the report on Management Discussion & Analysis, Corporate Governance Report as well as the practicing Company Secretaries Certificate regarding compliance of conditions of Corporate Governance appears in the Annexure-1 and Annexure-2 respectively to the Directors report and its form part of the Annual Report..

FIXED DEPOSIT.

The company has not accepted or renewed any deposits within the meaning of Section 58 A of the Companies Act 1956 and the Rules made there under.

STATUS OF LISTING IN STOCK EXCHANGE

Your company''s shares are listed in Stock Exchange (s) at Mumbai, Bhubaneswar; Kolkata & Ahmedabad

Annual Listing fees are due to the Stock Exchange(s). The company proposes to regularize the dues of stock exchanges.

DIRECTORS

In accordance with the Companies Act, 2013, and the Articles of Association of the Company, one of our Director Mr. Giridhar Bhavaraju retires by rotation ,and is eligible for re-appointment, and Mr. Hrushikesh Panda and Mr. R.N Swain as an Independent Director hold office upto the date of the forthcoming Annual General Meeting.

As per the provision of Section 149 and other applicable provisions, if any of the Companies Act, 2013 Mr. H.k Panda & R. N Swain are proposed to be appointed as Independent Director of the Company for a period of five years.

Your approval for their appointments as Director has been sought in the Notice convening the Annual General Meeting of the Company.

DIRECTORS'' RESPONSIBILITY STATEMENT

In pursuance to the provisions of Section 217 (2AA) of the Companies Act, 1956, the Directors hereby declare that:

(i) in the preparation of the Annual Accounts for the financial year 2013-14, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

(ii) the Directors have selected such accounting policies and applies them consistently and made Judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2014 and of the profit and loss of the Company for the year ended on that date.

(iii) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act, for safe guarding the assets of the company and for preventing and detecting fraud and other irregularities; to the best of its knowledge and its ability. There are however , inherent limitations, which should be recognized while relying on any system of internal control and records; and

(iv) the Directors have prepared the enclosed Annual Accounts on a going concern basis.

(v) the Directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and operating effectively

(vi) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively

AUDIT OBSEVATIONS

Auditor''s observations are suitably explained in the notes to the accounts and are self-explanatory.

AUDITORS

The Auditors, Mr. Samantaray & Co., Chartered Accoutants, Cuttack retired at the ensuing Annual Genera Meeting, and being eligible, offer themselves for re-appointment. -

AUDITORS REPORT

The Auditors in their report have referred to the notes forming part of the Accounts, which are self explanatory and do not require further elucidation.

CERTIFICATE ON CORPORATE GOVERNANCE AND SHAREHOLDERS INFORMATION

A Company has taken adequate steps to adhere to all the stipulations laid down in clause 49 of the Listing agreement . A report on corporate governance is include as part of this Annual Report. Annexure-ll. Certificate from the Statutory Auditors Mr. Samantaray & Co. , Chatered Accountant confirming the compliance with the condition of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is attached to this report.

HUMAN RESOURCES

There are no employees as on date on the rolls of the company who are in receipt of Remuneration which requires disclosures under section 217(2A) of the Companies Act, 1956. -

During the year under review, relationship with employees is cordial.

CORPORATE SOCIAL RESPONSIBILITY

In pursuant to the provisions of section 135 and schedule VII of the Companies Act, 2013 CSR committee of the Board of Directors was formed to recommend (a) the policy on Corporate Social Responsibility and (b) implementation of CSR project or programmes to be undertaken by the Company as per CSR policy for consideration and approval by the Board of Directors.

PARTICULARS OF EMPLOYEES

No employees are coming within the purview provision under Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of employees) Rule 1975.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE.

Information pertaining to Section 217 (1) (e) of the Companies Act 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988 is given as under:

A. Conservation of Energy, Company is making all round efforts for the Conservation of Energy per unit production.

B. Technology Absorption: The Company has adopted indigenous Technology.

C. Foreign Exchange earnings and Outgo during the financial year 2013-2014;

i. Total Foreign Exchange earned Nil

ii. Total Foreign exchange outgo

1. Import of Consumables Nil

2. Foreign Travels Nil

3. Sales Commission Nil

ACKNOWLEDGEMENTS

Your Directors place on record their appreciation of the continued assistance and cooperation extended to the Company by the Govt, of Odisha, the IFCI Ltd, the State Bank Of India, shareholders, the dedicated employees and all other who are continuing to assist your Company.

For and on behalf of the Board of Director

Bhubaneswar

Date : 04.09.2014

Hitendra K. Mohanty

Chairman- cum Managing Director

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Mar 31, 2013

Dear Shareholders,

The Directors have pleasure in presenting their 22nd Annual report with the Audited Accounts for the year ended 31st March 2013.

FINANCIAL PERFORMANCE

(Rupees in lacs)

Particulars Year Ending Year Ending 2012-13 2011-12

Total Income INCLUDING other income 50.76 55.70

Expenditure 117.45 168.49

Interest & Financial Charges 27.09 26.50

Depreciation 104.52 129.15

Net Profit/(loss) (198.30) (268.44)

Provision For Income Tax Nil Nil

Profit Carried to Balance sheet (198.30) (268.44)

DIVIDEND

In view of marginal profit Directors of the Company do not recommend any dividend for the year 2012.13.

OPERATION AND FINANCIAL PERFORMANCE.

During the financial year 2012-13 the Company achieved sales of Rs.45.70 Lacs as against sales of Rs. 50.63 lacs during the previous year. Decrease in capacity utilization has resulted to poor performance. Operations of two quarries remained under suspension due to legal problem created by the Forest Department, Ganjam District, Orissa. The Management has taken up the matter with the appropriate forums for redressal and made fresh application for new quarries to meet the requirement of Raw materials of the Company. Besides the company was unable to arrange required working capital finance to run the company smoothly. Efforts are expected to be taken in this regard to improve the performance of the company in forthcoming year.

DIRECTORS'' RESPONSIBILITY STATEMENT

In pursuance to the provisions of Section 217 (2AA) of the Companies Act, 1956, the Directors hereby declare that:

(i) in the preparation of the Annual Accounts for the financial year 2012-13, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

(ii) the Directors have selected such accounting policies and applies them consistently and made Judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2013 and of the profit and loss of the Company for the year ended on that date.

(iii) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safe guarding the assets of the company and for preventing and detecting fraud and other irregularities; and

(iv) the Directors have prepared the enclosed Annual Accounts on a going concern basis.

CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORT

A report on corporate Governance and Management Discussion & Analysis Report appears in the Annexure-1 and Annexure-2 respectively to the Directors report.

AUDITORS

M/s. Samantaray & Co., Chartered Accountants, the Statutory Auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting of the Company and are eligible for reappointment.

AUDITORS REPORT

The Auditors in their report have referred to the notes forming part of the Accounts, which are self explanatory and do not require further elucidation.

DIRECTORS

Mr. Satyajit Deshpriya Mishra, Mr.N.K.Bhaumik & Mr.Tushar R.Parekh have resigned from the Board of Directors of the company and appointed Mr.H K Panda, Mr.Giridhar Bhavaraju & Mr.R.N.Swain in their place w.e.f. 28.08.2011 respectively. The Board appreciate the value of services rendered by those directors appointed during their tenure.

PARTICULARS OF EMPLOYEES

No employees are coming within the purview provision under Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of employees) Rule 1975.

FIXED DEPOSIT.

The company has not accepted or renewed any deposits within the meaning of Section 58 A of the Companies Act 1956 and the Rules made there under.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE.

Information pertaining to Section 217 (1) (e) of the Companies Act 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988 is given as under:

A. Conservation of Energy, Company is making all round efforts for the Conservation of Energy per unit production.

B. Technology Absorption: The Company has adopted indigenous Technology.

C. Foreign Exchange earnings and Outgo during the financial year 2012-2013;

i. Total Foreign Exchange earned Nil

ii Total Foreign exchange outgo

1. Import of Consumables 10.75

2. Foreign Travels Nil

3. Sales Commission Nil 10.75

STATUS OF LISTING IN STOCK EXCHANGE

Your company''s shares are listed in Stock Exchange (s) at Mumbai, Bhubaneswar Kolkata & Ahmedabad Annual Listing fees are due to the Stock Exchange(s). The company proposes to regularize the dues of stock exchanges.

CERTIFICATE ON CORPORATE GOVERNANCE

Certificate from the Auditors of the Company regarding compliance of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is attached to this report.

ACKNOWLEDGEMENTS

Your Directors place on record their appreciation of the continued assistance and cooperation extended to the Company by the Govt. of Odisha, the IFCI Ltd, the State Bank Of India, shareholders, the dedicated employees and all other who are continuing to assist your Company.

For and on behalf of the Board of Directors

Bhubaneswar Hitendra K Mohanty Date. 02.09.2013 Chairman cum Managing Director

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Mar 31, 2012

Dear Members,

The Directors have pleasure in presenting their 21st Annual report with the Audited Accounts for the year ended 31st March 2012.

FINANCIAL PERFORMANCE

(Rupees in lacs)

Particulars Year Ending Year Ending 2011-12 2010-11

Total income INCLUDING other income 55.70 176.41

Expenditure 168.49 323.02

Interest & Financial Charges 26.50 22.39

Depreciation 129.15 143,23

Net Profit/(loss) (268.44) (312.23)

Provision For Income Tax Nil Nil

Profit Carried to Balance Sheet (268.44) (312.23) DIVIDEND

In view of marginal profit Directors of the Company do not recommend any dividend for the year 2011-12.

OPERATION AND FINANCIAL PERFORMANCE.

During the financial year 2011-12 the Company achieved sales of Rs.50.63 Lacs as against sales of Rs. 163.09 lacs during the previous year. Decrease in capacity utilization has resulted to poor performance. Operations of two quarries remained under suspension due to legal problem created by the Forest Department, Ganjam District, Orissa The Management has taken up the matter with the appropriate forums for redress al and made fresh application for new quarries to meet the requirement of Raw materials of the Company. Besides the company was unable to arrange required working capital finance to run the company smoothly Efforts are expected to be taken in this regard to improve the performance of the company in forthcoming year.

DIRECTORS'' RESPONIBILITY STATEMENT

In pursuance to the provisions of Section 217 (2AA) of the Companies Act, 1956, the Directors hereby declare that:

(i) in the preparation of the Annual Accounts for the financial year 2011-12, the applicable Accounting Standards have been followed along with proper explanation relating to material departures.

(ii) the Directors have selected such accounting policies and applies them consistently and made Judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2012 and of the profit and loss of the Company for the year ended on that date.

(iii) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safe guarding the assets of the company and for preventing and detecting fraud and other irregularities; and

(iv) the Directors have prepared the enclosed Annual Accounts on a going concern basis.

CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORT

A report on corporate Governance and Management Discussion & Analysis Report appears in the Annexure-1 and Annexure-2 respectively to the Directors report.

AUDITIORS

M/s. Samanta ray & Co., Chartered Accountants, the Statutory Auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting of the Company and are eligible for reappointment.

AUDITORS REPORT

The Auditors in their report have referred to the notes forming part of the Accounts, which are self explanatory and do not require further elucidation.

DIRECTORS

Mr Satyajit Deshpriya Mishra, Mr.N.K.Bhaumik & Mr.Tushar R.Parekh have resigned from the Board of Directors of the company and appointed Mr.H K Panda, Mr.Giridhar Bhavaraju & Mr.R.N.Swain in their place w.e.f. 28 08.2011 respectively. The Board appreciate the value of services rendered by those directors appointed during their tenure.

PARTICULARS OF EMPLOYEES

No employees are coming within the purview provision under Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of employees) Rule 1975.

FIXED DEPOSIT

The company has not accepted or renewed any deposits within the meaning of Section 58 A of the Companies Act 1956 and the Rules made there under

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE.

Information pertaining to Section 217 (1) (e) of the Companies Act 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988 is given as under

A. Conservation of Energy, Company is making alt round efforts for the Conservation of Energy per unit production.

B. Technology Absorption: The Company has adopted indigenous Technology.

STATUS OF LISTING IN STOCK EXCHANGE

Your company''s shares are listed in Stock Exchange (s) at Mumbai. Bhubaneswar; Kolkata & Ahmedabad Annual Listing fees are due to the Stock Exchange(s) The company proposes to regularize the dues of stock exchanges.

CERTIFICATE ON CORPORATE GOVERNANCE

Certificate from the Auditors of the Company regarding compliance of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is attached to this report.

ACKNOWLEDGEMENTS

Your Directors place on record their appreciation of the continued assistance and cooperation extended to the Company by the Govt. of Odisha, the IFCI Ltd, the State Bank Of India, shareholders, the dedicated employees and all other who are continuing to assist your Company.

For and on behalf of the Board of Directors

Bhubaneswar Hitendra K. Mohanty Date: 03.09.2012 Chairman cum Managing Director