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Directors Report of Chaman Lal Setia Exports Ltd.

Mar 31, 2015

The Directors have pleasure in presenting before you the 21st Annual Report together with the Audited Statements of Accounts of the Company for the year ended 31st March, 2015.

1. RICE BUSINESS Performance At A Glance

The Company's financial performance, for the year ended March 31, 2015 is summarized below:-

Particulars Amount (in Lacs) Amount (in Lacs) Y.E. 31.03.2015 Y.E 31.03.2014

Export turnover 40757.82 31762.21

Domestic turnover 10045.08 9844.82

Profit before Intt. & Depreciation 3784.36 3373.47

Interest 531.34 361.27

Provision for Depreciation 298.75 296.94

Profit before Tax 2954.27 2715.26

Provision for Tax 1004.15 891.26

Profit after Tax 1950.12 1823.99

Proposed Dividend 226.39 163.07

Transfer To General Reserve 195.01 182.39

Carried to Balance Sheet 4923.88 3855.56

Current Assets 14404.27 13504.22

Current Liabilities 6932.11 7104.69

Working Capital 7472.16 6399.53 Capital Employed 9639.86 8414.78

EPS 20.98 19.62

Book Value 85.30 72.01

Highlights of Performance:

During the year the export Sales of Company increased at a very handsome pace. This was the result of the efforts put in by management through extensive travelling & Exploring new International markets, the emphasis was also on attractive packing & brand equity. The increase in Profit can be attributed to the Special emphasis of the management on Cost Cutting and Control and further to increase in the prices of rice and dollar .

2. Deposits

The Company has not invited/accepted any deposits from the public during the year ended March 31,2015. There were no unclaimed or unpaid deposits as on March 31, 2015.

3. Industrial Relation

The Industrial relations remained cordial throughout the year and have resulted in sustained growth of the company.

4. Directors and Key Managerial Personnel

Mr. Vijay Setia and Mr. Rajeev Setia, are the Directors retire by rotation at the forthcoming Annual General Meeting and being eligible, offer themselves for reappointment.

Mr. Amit Mehra (Din No. 01386464) an independent director of Company was not elected in Annual General Meeting held on 29.09.2014 due to non receipt of requisite vote. Therefore he got retired from his position & Company in the immediate next Board Meeting (i.e. on 13.10.2014) appointed Mr. Vijay Kumar Jhamb as an additional Director of Company w.e.f. 13.10.2014 as per Articles Of Association of Company and in terms of Section 161 (1) of the Act and whose term of office expires at the Annual General Meeting and in respect of whom the Company has received a notice in writing from a member proposing his candidature for the office of Director, be and is hereby appointed as an Independent Director of the Company to hold office for five consecutive years for a term up to 12th October 2019." In the opinion of the Board, he fulfill the conditions of independence as specified in Listing Agreement, in the Act and Rules made there under.

During the year, the Board of Directors also appointed Miss Kanika Nevtia as Company Secretary w.e.f 31.05.2014 & Mr. Rajeev Setia Executive Director of Company as Chief Financial Officer of Company w.e.f 19.08.2014 and Mr. Chaman Lal Setia managing director of Company is designated as Key Managerial Personnel of Company. None of Directors of the company is disqualified under Section 164(2) of the Companies Act, 2013 .

5 Conservation Of Energy, Technology Absorption, Foreign Exchange Earning and Outgoing Information required under Section 134 (3) (m) of Companies Act, 2013 read with Rules 8 of Companies (Accounts) Rules, 2014 is given in the Annexure -A to this report.

6. Auditors' Report

The Auditors' Report does not contain any Qualification. The notes on accounts referred to in the Auditor's Report are self-explanatory and therefore do not call for any further Comments.

7. Auditors

The Auditor M/s Rajesh Kapoor & Co, Chartered Accountants (ICAI Registration No. 92692) retire at the conclusion of the forthcoming Annual General meeting and are available for re-appointment. A written certificate & letter has been obtained to this effect that their re-appointment satisfies the criteria provided in section 141 of the Companies Act, 2013 and he is not disqualified for re-appointment.

8. Dividend

During the year ended March 31, 2015 your Company's working results were quiet improved on sale as well as Profit aspects due to the Management thrust on Cost reduction in all areas of Company's operations, productivity, quality improvement and innovation of new products . Hence keeping in view the aspiration of the shareholders and also in order to strive balance between the aspiration of shareholders and future expansion , yours directors, recommend a dividend of 20% i.e Rs. 2 per Share basis .

9. Director's Responsibility

Pursuant to Section 134 (3) (c) & (5) of the Companies Act, 2013, Directors hereby state that :-

(a) in the preparation of the annual accounts for the year ended 31st March, 2015, the applicable accounting standards have been followed along with proper explanation relating to material departures;

(b) the directors have selected such accounting policies and applied 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 at the end of the financial year and of the Profit and loss of the company for that period;

(c) the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the company and for preventing and detecting fraud and other

irregularities;

(d) the directors have prepared the annual accounts on a going concern basis; and (e) the directors have laid down internal financial controls in the company that are adequate and are operating effectively.

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

10. Credit Rating

There is improvement in Credit rating which is mentioned as below:

Long Term Rating CRISIL BBB /Stable (Upgraded from CRISIL BBB/Stabble)

Short Term Rating CRISIL A2 (Upgraded From CRISIL A3 )

11. Secretarial Audit Report

In terms of Section 204 of the Act and Rules made there under, M/s. Sunil Dhawan & Associates, Practicing Company Secretary have been appointed as Secretarial Auditors of the Company. The report of the Secretarial Auditors is enclosed as Annexure B to this report. The report is self- explanatory and do not call for any further comments.

12. Management's Discussion and Analysis Report

Management's Discussion and Analysis Report for the year under review, as stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges in India, is presented in a separate section forming part of the Annual Report.

13. Corporate Social Responsibility and Governance Committee

In terms of section 135 and Schedule VII of the Companies Act, 2013, the Board of Directors of your Company have constituted a CSR Committee. The Committee comprises Mr. Parmod Kumar Kukkar (Chairman), Mr. Rajeev Setia & Mr. Vijay Setia as other members. Company has framed policy also details are given in Annexure-C.

14. Corporate Governance

The Company has complied with the Corporate Governance Code as stipulated under the Listing Agreement with the Stock Exchange(s) during the year under review. A separate section on Corporate Governance along with certificate from the Auditors confirming the compliance is annexed and forms part of the Annual Report.

15. Dematerialization of Shares

The Company has agreements with both National Securities Depository Ltd and Central Depository Services Ltd. whereby the Shareholders have an option to dematerialize their shares with either of the depositories. The company's shares are traded compulsorily in demat form under ISIN code INE419D01018 and the percentage of demat shares of the Company is 91.64%.

16. Listing With Stock Exchange

The Company confirms that it has paid the Annual Listing fee for the year 2015-16 to BSE where the Company's Shares are listed.

17. Pollution Free Environment: - Company's Slogan Company continues its pursuit of free distribution of Neem & Jamun Plants for plantation which helps medical cure and clean environment. The Neem can also be used as bio-pesticide for preventing infestation in food grains.

18. Future Expansion

The Future expansion Endeavour of the Company is always a going on process specially in the field of Quality improvement and development of new product with lower cost and energy savings The Management of the company understands that it has to improve upon to face the ever changing circumstances and evolvements globally.

19. Vigil Mechanism/Whistle Blower Policy

The Company has adopted a Whistle Blower Policy to provide a formal mechanism to the Directors and employees to report their concerns about unethical behavior, actual or suspected fraud or violation of the Company's Code of Conduct or ethics policy. The Policy provides for adequate safeguards against victimization of employees who avail of the mechanism and also provides for direct access to the Chairman of the Audit Committee. It is affirmed that no personnel of the Company has been denied access to the Audit Committee. The Whistle Blower Policy has been posted on the website of the Company www.maharanirice.in

20. Particulars of contracts or arrangements with related parties

Related party transactions that were entered during the financial year were on an arm's length basis and were in the ordinary course of business. There were no materially significant related party transactions with the Company's Promoters, Directors, Management or their relatives, which could have had a potential confect with the interests of the Company. The particulars of every contract or arrangements entered into by the Company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 has been disclosed in Form No. AOC-2. As Annexure D (Format enclosed).

21. Remuneration Ratio of the Directors / Key Managerial Personnel (KMP) / Employees Statement containing information as required under Section 197(12) of the Companies Act, 2013, read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) rules, 2014, and Companies (Particulars of Employees) Rules, 1975 is annexed as Annexure E.

22. Development and Implementation of a Risk Management Policy

The Company has been addressing various risks impacting the Company and the policy of the Company on risk management is provided elsewhere in this Annual Report in Management Discussion and Analysis.

23. Extract of Annual Return

The details forming part of the extract of the Annual Return in Form MGT-9 is annexed herewith as Annexure-F.

24. Meetings

The Board of Director duly met 18 times during the financial year from 01.04.2014 to 31.03.2015. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.

25. Obligation of Company Under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 :-

As per the applicability of Act named The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act , 2013, no such complaint or grievance occurred during the year under review.

26. Board Evaluation

Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of the Listing Agreement, the Board has carried out an annual performance evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Nomination & Remuneration and Compliance Committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.

27. Particulars of Employees and Remuneration

None of the employee has received remuneration exceeding the limit as stated in rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

28. Remuneration Policy

The Company has adopted a Remuneration Policy for the Directors, Key Managerial Personnel and other employees, pursuant to the provisions of the Companies Act, 2013 and Clause 49 of the Listing Agreement.

29. Transfer to Reserves

The Company has transferred Rs. 195.01 Lacs to reserves.

30. Declaration by Independent Directors

The Company has received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed both under the Act and Clause 49 of the Listing Agreement with the Stock Exchanges.

31. Particulars of Loan Given, Investment Made, Guarantee Given

During the year under review, the Company has not advanced any loans/ given guarantees/ made investments.

32. Material Changes Between the Date of Board Report and End of the Financial Year

There have been no material changes and commitments, if any, affecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the financial statements relate and the date of the report.

33. Social Objective

Company is not only a Profit Oriented Unit, but also meeting its Commitment & Responsibility towards the society by undertaking the following measures :

a) Development of new technique whereby rice could be made Pesticide Residue Free.

b) Development of low cost water falters for poor segment of the society. The Company has named the new invention after the name of its Brand as Begum Walter Filter.

c) Project for tackling problem of wastewater logging and treatment of sanitary discharge in villages is under process.

d) Zero Energy cool chamber development of more cost effective more users friendly cooling system at a very nominal cost.

34. Forfeiture of Shares The Board of directors at their meeting held on 28.08.2015 considered the list of shareholders who have not paid their balance amount of allotment money along with the share premium amount. Company has already given two reminders to all the shareholders & finally on 24.07.2015 Company has given the individual final call money notice along with publication in newspapers to all the partly paid shareholders to pay the balance outstanding amount towards allotment and share premium due on their holding on or before 24.08.2015 failing which the shares held by them shall be liable for forfeiture without giving any further notice. Therefore Board of directors at their meeting held on 28.08.2015 decided to forfeit 92200 Shares who have not paid their balance amount of allotment money along with share premium amount.

Appreciation The Board of directors thanks company's customers, public, shareholders, bankers and suppliers. The Board also places on record its appreciation of the services rendered by staff at all levels and look forward to their valued co-operation and contribution in meeting the future challenges.

For and on behalf of the Board of Directors

Place: Amritsar

Date: 28.08.2015 Chaman Lal Setia

Chairman


Mar 31, 2014

Dear Members,

The Directors'' have pleasure in presenting the 20th Annual Report together with the Audited Accounts of the Company for the year ended 31st March 2014.

1. RICE BUSINESS-Performance At A Glance

The Company''s financial performance, for the year ended March 31, 2014 is summarised below:-

Particulars Amount (in Lacs) Amount(in Lacs) Y.E. 31.03.2014 Y.E 31.03.2013

Export turnover 31762.21 16980.79

Domestic turnover 9844.82 10265.24

Profit before Intt. & Depreciation 3373.47 2032.72

Interest 361.27 197.48

Provision for Depreciation 296.94 257.49

Profit before Tax 2715.26 1773.26

Provision for Tax 891.26 575.30

Profit after Tax 1823.99 1197.96

Proposed Dividend 163.07 118.79

Transfer To General Reserve 182.39 119.79

Carried to Balance Sheet 3855.56 2527.43

Current Assets 13504.22 8549.51

Current Liabilities 7104.69 4285.88

Working Capital 6399.53 4263.63

Capital Employed 8414.78 6210.92

EPS 19.62 12.89

Book Value 72.01 55.73

Highlights of Performance:

During the year the export Sales of Company increased at a very handsome pace. This was the result of the efforts put in by management through extensive travellings & Exploring new International markets, the emphasis was also on attractive packing & brand equity. The increase in profit can be attributed to the Special emphasis of the management on Cost Cutting and Control and further to increase in the prices of rice and dollar .

2. Deposits

The Company has not accepted any deposits falling within the purview of Sec 58A of the Companies Act 1956 and no deposits were overdue as on 31.03.14.

3. Personnel

Relations with work force of the Company have remained cordial, throughout the Year.

4 . Directors

The Board of Directors at their meeting held on 26th July, 2013 appointed Mr. Sankesh Setia as an Additional Director of the Company with effect from 1st October, 2013. Mr. Sankesh Setia took over as the Non-Executive Promoter of the Company with effect from 1st October, 2013.

Under Section 161 (1) of the Companies Act, 2013 (corresponding to section 260 of the Companies Act, 1956) read with the Article of the Article of Association of the Company, Mr. Sankesh Setia holds office up to the date of the forthcoming Annual General Meeting of the Company. A notice has been received from a member proposing Mr. Sankesh as a candidate for the office of the Whole Time Director of the Company for a period of five years whose period of Office shall be liable to determination by retirement of directors by rotation.

The term of Mr. Chaman Lal Setia, as a Managing Director was for a period of 5 years expire on 21.09.2014. Your Directors are seeking re- appointment of Mr. Chaman Lal Setia as a Managing Director for a further period of 5 years with effect from 21.09.2014.

Pursuant to the provisions of section 198, 269, 309 and 311 read with schedule XIII of the Companies Act, 1956 and as per applicable provisions of Companies Act, 2013, Shri Rajeev Setia, Shri Vijay Setia, Shri Ankit Setia and Shri Sukarn Setia be and are hereby reappointed as whole time directors of the Company for further five years whose period of Office shall be liable to determination by retirement of directors by rotation.

Pursuant to the provisions of section 149 and other applicable provisions of the Companies Act, 2013, your Directors are seeking appointment of Mr. Inder Dev Kukkar, Mr. Naresh kumar Suneja, Mr. Parmod Kumar Kukar, Mr. Raghav Peshawaria, Mr. Amit Mehra as Independent Directors for five consecutive years for a term upto 31st March, 2019. Details of the proposal for appointment of all the independent directors are mentioned in the Explanatory Statement under Section 102 of the Companies Act, 2013 of the Notice of the 20th Annual General Meeting.

Pursuant to the provisions of section 149 and other applicable provisions of the Companies Act, 2013, And pursuant to the amended provisions of Listing Agreement which requires every listed Company to have at least one woman Director on the Board your Directors are seeking appointment of Mrs. Amar Jyoti Bagga as an Independent Directors for five consecutive years for a term upto 31st March, 2019.

5 Statement u/s 217 (1) (e) of the Companies Act

The requirements for disclosure of particular with respect to conservation of energy are not applicable to the company. A statement giving details of technology absorption, foreign exchange earning and outgo in accordance with the above provisions is annexed here to as Annexure ''A'' and form parts of this report.

6. Particulars of employees

The Company has no employee of the category specified in sub section (2A) of section 217 of the Companies Act 1956.

7. Auditors'' Report

The notes on accounts referred to in the Auditor''s Report are self-explanatory and therefore do not call for any further Comments.

8. Auditors

M/s Rajesh Kapoor & Co, Chartered Accountants (ICAI Registration No. 92692) retire at the conclusion of the forthcoming Annual General meeting and are available for re-appointment. A written certificate & letter has been obtained to this effect that their re- appointment satisfies the criteria provided in section 141 of the Companies Act, 2013 and he is not disqualified for re-appointment.

9. Dividend

During the year ended March 31, 2014 your Company''s working results have quiet improved on sale as well as profit aspects due to the Management thrust on Cost reduction in all areas of Company''s operations, productivity, quality improvement and innovation of new products . Hence keeping in view the aspiration of the shareholders and also in order to strive balance between the aspiration of shareholders and future expansion, yours directors, recommend a dividend of 15 % i.e Rs. 1.50 per Share basis subject to adjustment of 100% of amount due from partly paid shareholders towards their balance of call money due.

10. Director''s Responsibility

Pursuant to section 217 (2AA) of the Companies Act 1956 the directors confirm that:

(i) In the preparation of the annual accounts for the year ended March 31st, 2014, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

(ii) Appropriate accounting policies have been selected and applied Consistently, and have made judgements and estimates that are reasonable and prudent so as to give a true & fair view of the state of affairs of the Company as at March 31, 2014 and of the profit of the Company for the said period.

(iii) Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

(iv) The annual accounts have been prepared on a going concern basis.

11. Credit Rating

There is improvement in Credit rating from CRISIL BBB- to CRISIL BBB/Stable

12. Cost Audit

The Cost Auditor of the Company issued Cost Audit Report dt. 24/08/2013 which was accepted by the Board of Directors. M/S. Verma Khuswinder & Associates has been appointed as Cost Auditor of the Company to Carry out the audit of the Cost Accounting records maintained by the Company for the year ended 31.03.2014.

13. Management''s Discussion and Analysis Report

Management''s Discussion and Analysis Report for the year under review, as stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges in India, is presented in a separate section forming part of the Annual Report.

14. Corporate Social Responsibility Committee

During the year, your directors have constituted the Corporate Social Responsibility Committee (CSR Committee) comprising Shri Parmod Kumar Kukkar as the Chairman , Shri Rajeev Setia and Shri Vijay Setia as members of Committee.

The said Committee has been entrusted with the responsibility of formulating and recommending to the Board, a Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company, monitoring the implementation of the framework of the CSR Policy and recommending the amount to be spent on CSR activities.

15. Statutory Disclosures

None of the directors of your company is disqualified as per the Provisions of Section 274 (1) (g) of the Companies Act, 1956. Your directors have made necessary disclosures as required under various provisions of Companies Act 1956 and as per applicable provisions of Companies Act, 2013 and clause 49 of the Listing Agreement.

The information given under Section 217 (1) (e) of the Companies Act, 1956 to be read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 as amended is enclosed as Annexure ''A''.

None of the employees of your company is drawing remuneration exceeding the limits laid down under provisions of Section 217(2A) of the Companies Act, 1956 to be read with Companies (Particulars of Employees) Rules, 1975 as amended.

16. Corporate Governance

Chaman Lal Setia Exports Ltd has rooted itself in Values, Nurtured by ethics, transparency and Corporate Governance. Your Company is all set to branch out further and grow stronger. It is these values and guidelines that will give a firm foundation for the future growth. The Company is committed to maintain the highest standards of corporate governance and adhere to the corporate governance requirements set out by SEBI.

The Company has constituted various board committees, revised its whistle blower policy and adopted some other mandatory and non mandatory requirements as required by the Clause 49 of listing Agreement and the required particulars from part of this Annual report.

17. Dematerialisation of Shares

The Company has agreements with both National Securities Depository Ltd and Central Depository Services Ltd. whereby the Shareholders have an option to dematerialise their shares with either of the depositories. The company''s shares are traded compulsorily in demat form under ISIN code INE419D01018 and the percentage of demat shares of the Company is 91.50%.

18. Social Objectives

Company is not only a Profit Oriented Unit, but also meeting its Commitment & Responsibility towards the society by undertaking the following measures:

a) Development of new technique whereby rice could be made Pesticide Residue Free.

b) Development of low cost water filters for poor segment of the society. The Company has named the new invention after the name of its Brand as Begum Water Filter.

c) Project for tackling problem of wastewater logging and treatment of sanitary discharge in villages is under process.

d) Zero Energy cool chamber development of more cost effective more users friendly cooling system at a very nominal cost.

19. Listing of Shares

The shares of the Company are listed on Mumbai Stock Exchange Limited and listing fees has been paid timely.

20. Pollution Free Environment: - Company''s Slogan

Company continues its pursuit of free distribution of Neem & Jamun Plants for plantation which helps medical cure and clean environment. The Neem can also be used as bio-pesticide for preventing infestation in food grains.

21. Future Expansion

The Future expansion endeavour of the Company is always a going on process specially in the field of Quality improvement and development of new product with lower cost and energy savings The Management of the company understands that it has to improve upon to face the ever changing circumstances and evolvements globally.

Appreciation

The Board of directors thanks company''s customers, public, shareholders, bankers and suppliers. The Board also places on record its appreciation of the services rendered by staff at all levels and look forward to their valued co-operation and contribution in meeting the future challenges.

FOR & ON BEHALF OF BOARD

Place : Amritsar CHAMAN LAL SETIA Dated : 26-08-14 Chairman


Mar 31, 2013

To The Members,

The Directors have pleasure in presenting the 19th Annual Report, together with the Audited Accounts of the Company for the year ended 31st March 2013.

1. RICE BUSINESS Performance At A Glance

Particulars Amount (in Lacs) Amount (in Lacs) Y.E. 31.03.2013 Y.E 31.03.2012

Export turnover 16980.79 13713.34

Domestic turnover 10265.24 7987.03

Profit before Intt. & Depreciation 2032.72 1856.58

Interest 197.48 440.46

Provision for Depreciation 257.49 219.87

Profit before Tax 1773.26 1101.85

Provision for Tax 575.30 331.40

Profit after Tax 1197.96 770.45

Proposed Dividend 118.79 172.79

Transfer To General Reserve 119.79 77.00

Carried to Balance Sheet 2527.43 1486.66

Current Assets 8549.51 9493.69

Current Liabilities 4285.88 5873.35

Working Capital 4263.63 3620.34

Capital Employed 6210.92 4964.55

EPS 12.89 8.29

Book Value 55.73 43.21

Highlights of Performance:

During the year the sales of the Company increased both on domestic as well as export front. This was the result of the efforts put in by the management through extensive travellings & exploring new International markets, the emphasis was also on attractive packing & brand equity. The increase in profit can be attributed to the special emphasis of the management on Cost Cutting and Control and further to increase in the prices of rice and dollar.

2. Deposits

The Company has not accepted any deposits falling within the purview of Sec 58A of the Companies Act 1956 and no deposits were overdue as on 31.03.13

3. Personnel

Relations with work force of the Company have remained cordial, throughout the year.

4. Directors

Directors of the Company liable to retire by rotation retires at the Annual General Meeting and being eligible offer themselves for re- election.

5 Statement u/s217 (1) (e) of the CompaniesAct

The requirements for disclosure of particulars with respect to conservation of energy are not applicable to the Company. A statement giving details of technology absorption, foreign exchange earning and outgo in accordance with the above provisions is annexed here to asAnnexure ''A'' and form a part of this report.

6. Particulars of employees

The Company has no employee of the category specified in sub section (2A) of section 217 of the CompaniesAct 1956.

7. Auditors'' Report

The notes on accounts referred to in the Auditor''s Report are self-explanatory and therefore do not call for any further comments.

8. Auditors

M/s Rajesh Kapoor & Co, Chartered Accountants, Auditors retire at the conclusion of the forthcoming Annual General meeting and are available for re-appointment. Awritten certificate u/s 224(1 )(B) has been obtained to this effect.

9. Dividend

During the year ended March 31, 2013 your Company''s working results improved on sale as well as profit aspects due to the Management thrust on cost reduction in all areas of Company''s operations, productivity, quality improvement and innovation of new products. Hence, keeping in view the aspiration of the shareholders and also in order to strive balance between the aspiration of shareholders and future expansion, your Directors, recommend a dividend of 11 % i.e Rs.1.10 per Share basis subject to adjustment of 100% of amount due to partly paid shareholders towards their balance of call money due.

10. Director''s Responsibility

Pursuant to section 217 (2AA) of the CompaniesAct 2000 the Directors confirm that:

(i) In the preparation of the annual accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;

(ii) Appropriate accounting policies have been selected and applied consistently, and have made judgements and estimates that are reasonable and prudent so as to give a true & fair view of the state of affairs of the Company as at March 31,2013 and of the profit of the Company for the said period.

(iii) Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions * of the Companies Act 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

(iv) The annual accounts have been prepared on a going concern basis.

11. Statutory Disclosures

None of the Directors of your Company is disqualified as per the provisions of Section 274 (1) (g) of the Companies Act, 1956. Your Directors have made necessary disclosures as required under various provisions of the Act and clause 49 of the Listing Agreement.

The information given under Section 217 (1) (e) of the Companies Act, 1956 to be read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 as amended is enclosed as Annexure ''A.

None of the employees of your Company is drawing remuneration exceeding the limits laid down under provisions of Section 217(2A) of the CompaniesAct, 1956 to be read with Companies (Particulars of Employees) Rules, 1975 as amended.

12. Corporate Governance

Chaman Lai Setia Exports Ltd has rooted itself in values, nurtured by ethics, transparency and Corporate Governance, Your Company is all set to branch out further and grow stronger. It is these values and guidelines that will give a firm foundation for the future growth.

The Company has implemented the new requirement of code of corporate governance as required by Clause 49 of the listing Agreement and the required particulars from part of this Annual report.

13. Cost Audit

The Cost Auditor of the Company issued Cost Compliance Report dt. 24.08.2012 which was accepted by the Board of Directors M/s. Verma Khuswinder & Associates has been appointed as Cost Auditor of the Company to Carry out the audit of the Cost Accounting records maintained by the Company for the year ended 31.03.13.

14. Dematerialisation of Shares

The Company has agreements with both National Securities Depository Ltd and Central Depository Services Ltd. whereby the Shareholders have an option to dematerialise their shares with either of the depositories. The Company''s shares are traded compulsorily in demat form under ISIN code INE419D01018 and the percentage of demat shares of the Company is 91.50%

15. Social Objectives

The Company is not only a profit oriented unit, but also meeting its commitment & responsibility towards the society by undertaking the following measures:

a) Development of new technique whereby rice could be made Pesticide Residue Free.

b) Development of low cost water filters for poor segment of the society. The Company has named the new invention after the name of its brand as Begum Water Filter.

c) Projectfortackling problem of wastewater logging and treatment of sanitary discharge in villages is under process.

d) Zero Energy cool chamber development of more cost effective and more user friendly cooling system at a very nominal cost.

16. Listing of Shares

The shares of the Company are listed on Mumbai Stock Exchange Limited and listing fees has been paid timely.

17. Pollution Free Environment: - Company''s Slogan

The Company continues its pursuit of free distribution of Neem & Jamun Plants for plantation which helps medical cure and clean environment. The Neem can also be used as bio-pesticide for preventing infestation in food grains.

18. Future Expansion

The future expansion endeavour of the Company is always a continuing on process specially in the field of quality improvement and development of new product with lower cost and energy savings. The Management of the Company understands that it has to improve upon to face the ever changing circumstances and evolvements globally.

Appreciation

The Board of Directors thank Company''s customers, public, shareholders, bankers and suppliers. The Board also places on record its appreciation of the services rendered by staff at all levels and look forward to their valued co-operation and contribution in meeting the future challenges.

FOR & ON BEHALF OF BOARD Place : Amritsar CHAMANLALSETIA

Dated : 24-08-13 Chairman


Mar 31, 2010

The Directors have pleasure in presenting the 16th Annual Report together with the Audited Accounts of the Company for the year ended 31st March 2010.

1. RICE BUSINESS.........Performance At A Glance

Particulars Amount (in Lacs) Amount (in Lacs) Y.E. 31.03.2010 YE. 31.03.2009

Export turnover 10113.73 8609.46

Domestic turnover 8453.00 6682.45

Profit before Intt. & Depreciation 1470.64 984.59

Interest 279.22 313.20

Provision for Depreciation 166.87 170.30

Profit before Tax 1024.54 501.08

Provision for Tax 324.81 160.00

Profit after Tax 699.73 341.08

Proposed Dividend 173.92 162.97

Transfer To General Reserve 69.97 34.11

Carried to Balance Sheet 791.91 339.61

Current Assets 7335.50 6237.69

Current Liabilities 3782.67 3697.12

Working Capital 3552.83 2540.57

Capital Employed 4482.60 3872.55

EPS 7.53 3.67

Book Value 34.18 28.51

Highlights of Performance: The Company during the year registered a handsome growth both in Sales as well as Profit

During the year the Sales of Company increased at a higher pace in spite of the adverse factors i.e. fall in the value of dollar & cut throat competition in the market. This was the result of the efforts put in by management viz attractive packing, branding & standardization of quality of rice, creating of new markets domestic as well as overseas, removal of export duty by the Govt, and increase in the prices of rice worldwide. The handsome increase in profit can be attributed to the innovative ideas of management to produce better quality product which led to better realization of Prices, Increase in prices of Rice specially in the export market as a resultant to food grain shortage world wide.

2. Deposits

The Company has not accepted any deposits falling within the purview of Sec 58A of the Companies Act 1956 and no deposits were overdue as on 31.03.10

3. Personnel

Relations with work force of the Company have remained cordial, through out the Year.

4. Directors

All Director of the Company retiring by rotation at the Annual Gene/ai Meeting and being Eligible offers themselves for re-election.

5. Statement u/s 217 (1) (e) of the Companies Act

The requirements for disclosure of particular with respect to conservation of energy are not applicable to the company. A statement giving details of technology absorption, foreign exchange earning and outgo in accordance with the above provisions is annexed here to as Annexure A and form parts of this report.

6. Particulars of employees

The Company has no employee of the category specified in sub section (2A) of section 217 of the Companies Act 1956.

7. Auditors Report

The notes on accounts referred to in the Auditors Report are self-explanatory and therefore do not call for any further Comments.

8. Auditors

M/s Rajesh Kapoor & Co, Chartered Accountants retire at the conclusion of the forthcoming Annual General meeting and are available for re-appointment. A written certificate u/s 224(1 )(B) has been obtained to this effect.

9. Dividend

During the year ended March 31, 2010 your Companys working results have improved Considerably in view of the Management thrust on Cost reduction in all areas of Companys operations, productivity improvement, improvement in the quality of yield and innovation of new products. Still keeping in view the further expansion, yours directors, recommend a dividend of 16% i.e Rs.1.60 per Share subject to adjustment of 100% of amount due to partly paid shareholders towards their balance of call money due.

10. Directors Responsibility

Pursuant to section 217 (2AA) of the Companies Act 2000 the directors confirm that:

(i) In the preparation of the annual accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures; (ii) Appropriate accounting policies have been selected and applied Consistently, and have made judgements and estimates that are reasonable and prudent so as to give a true & fair view of the state of affairs of the Company as at March 31, 2010 and of the profit of the Company for the said period.

(iii) Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

(iv) The annual accounts have been prepared on a going concern basis.

11. Statutory Disclosures

None of the directors of your company is disqualified as per the Provisions of Section 274 (1) (g) of the Companies Act, 1956. Your directors have made necessary disclosures as required under various provisions of the Act and clause 49 of the Listing Agreement.

The information given under Section 217 (1) (e) of the Companies Act, 1956 to be read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 as amended is enclosed as Annexure A.

None of the employees of your company is drawing remuneration exceeding the limits laid down under provisions of Section 217(2A) of the Companies Act, 1956 to be read with Companies (Particulars of Employees) Rules, 1975 as amended.

12. Corporate Governance

Chaman Lai Setia Exports Ltd has rooted itself in Values,Nurtured by ethics, transparency and Corporate Governance, Your Company is all set to branch out further and grow stronger. It is these values and guidelines that will give a firm foundation for the future growth.

The Company has implemented the new requirements of code of corporate governance as required by Clause 49 of the listing Agreement and the required particulars on part of this Annual report.

13. Dematerialisation of Shares

The Company has agreements with both National Securities Depository Ltd and Central Depository Services Ltd. whereby the Shareholders have an option to dematerialise their shares with either of the depositories. Now the companys shares are traded compulsorily in dematform under ISIN code INE419D01018.

14. Social Objectives

Company is not only a Profit Oriented Unit, but also meeting its Commitment & Responsibility towards the society by undertaking the following measures:

a) Development of new technique whereby rice could be made Pesticide Residue Free.

b) Development of low cost water filters for poor segment of the society. The Company has named the new invention afterthe name of its Brand as Begum Water Filter.

c) Project for tackling problem of wastewater logging and treatment of sanitary discharge in villages is under process.

d) Development of diabetic rice for diabetic patients.

e) Zero Energy cool chamber development of more cost effective more users friendly cooling system at a very nominal cost.

15. Listing of Shares

The share of the Company are listed on Mumbai Stock Exchange Limited and listing fees has been paid timely.

16. Pollution Free Environment: - Companys Slogan

The company has been successful in its effort of using of waste water from sella plant for Plantation. Company continued its expedition of free distribution of Neem & Jamun Plants for plantation & medical cure Neem can be used also as bio-pesticide for curing infestation. The Company is trying hard to stabilize rice bran for human consumption.

17. Future Expansion

Keeping in view the increase in demand of rice, scarcity of food grains worldwide the company has installed Ultra Modern Machinery at its Karnal Unit .The commercial production has started and will expand in future.

Appreciation

The Board of directors thanks companys customers, public in general, shareholders, bankers and suppliers. The Board also places on record its appreciation of the services rendered by staff at all levels and look forward to their valued co-operation and contribution in meeting the future challenges.

FOR & ON BEHALF OF BOARD

CHAMAN LAL SETIA Chairman

Place: Amritsar Date: 20-08-10



 
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