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Notes to Accounts of Chaman Lal Setia Exports Ltd.

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.