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Chamanlal Setia Exports Ltd.

BSE: 530307 Sector: Agri and agri inputs
NSE: CLSEL ISIN Code: INE419D01026
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OPEN 125.65
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VOLUME 13906
52-Week high 135.40
52-Week low 82.30
P/E 7.81
Mkt Cap.(Rs cr) 632
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 125.65
CLOSE 124.90
VOLUME 13906
52-Week high 135.40
52-Week low 82.30
P/E 7.81
Mkt Cap.(Rs cr) 632
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Chamanlal Setia Exports Ltd. (CLSEL) - Auditors Report

Company auditors report

TO THE MEMBERS OF CHAMAN LAL SETIA EXPORTS LIMITED

1. Opinion

We have audited the accompanying financial statements of CHAMAN LAL SETIA EXPORTSLTD. ("the Company") which comprises of Balance Sheet as at March 31st2022 the Statement of Profit and Loss (including other comprehensive income) Statementof Changes in Equity and Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "the financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act2013 (the Act)in the manner so required and give a true and fair viewin conformity with the Indian Accounting Standards prescribed under Section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2022 its profits (including other comprehensiveincome) changes in equity and its cash flows for the year ended on that date.

2. Basis for opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section

143(10) of the act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Our responsibilities under those Standardsare further described in the ‘Auditor' Responsibilities' for the Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance with the code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis of our opinion on the

Standalone Financial Statements. Key Audit Matters: -

3. Key Audit matters are those matters that in our professional judgment were ofmost significant in our audit of the financial statements of the current period.

These matters were addressed in the context of our audit of the financial statements asa whole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

We have determined the matters described below to be the key audit matters to becommunicated in our report

Key audit matter How our audit addressed the key audit matter
Refer Note 4 in the Summary of significant accounting policies and other explanatory information • Obtained an understanding of the process of each revenue stream particularly of sale of rice and by products;
The Company recognised an amount of Rs. 93249.03 lacs revenue for the year ended 31st March 2022 as disclosed in Note 17 to the standalone financial statements. Revenue for the Company primarily comprises of revenue from sale of rice either manufactured or traded. • Evaluated the design and implementation and tested the operating effectiveness of controls over revenue recognition including around quantity sold pricing and accounting of revenue transactions;
In accordance with Standards on Auditing there is a presumed fraud risk relating to revenue recognition. Accordingly occurrence and existence of revenue is a key focus area on account of the multiplicity of Company's products multiple channels for sales various categories of customers having varying terms of contracts and the volume of the sales made to them. • Performed substantive analytical procedures on revenue which includes ratio analysis and region wise analysis;
• Evaluated the terms and conditions of the contracts including incoterms with customers to ensure that the revenue recognition criteria are assessed by the management in accordance with the accounting standards;
Due to the above factors we have identified testing of revenue recognition as a key audit matter. • On a sample basis tested revenue transactions recorded during the year and revenue transactions recorded in the period before and after year-end with supporting documents such as invoices agreements with customers proof of deliveries and subsequent collection of payment;
In accordance with Standards on Auditing there is a presumed fraud risk relating to revenue recognition. Accordingly occurrence and existence of revenue is a key focus area on account of the multiplicity of Company's products multiple channels for sales various categories of customers having varying terms of contracts and the volume of the sales made tothem. • Performed other substantive audit procedures including obtaining debtor confirmations on a sample basis reviewed the subsequent collection of payment and proof of deliveries document of such selected debtors. Further reconciling revenue recorded during the year with statutory returns;
Due to the above factors we have identified testing of revenue recognition as a key audit matter. • Tested on sample basis manual journal entries recorded in revenue accounts credit notes and claims to the relevant approvals and the supporting documents;
• Evaluated disclosures made in the financial statements for revenue recognition from sale of goods for appropriateness in accordance with the accounting standards.
Refer Note 4 in the Summary of significant accounting policies and other explanatory information. • Obtained an understanding of the management's process of inventory management and inventory physical verification performed subsequent to year-end;
Inventory of the Company consists primarily of variety of rice paddy and their by- products manufactured during the process of conversion of paddy into rice. • Evaluated the design effectiveness of controls over inventory management process/ inventory physical verification and tested key controls for their operating effectiveness;
The Company held inventories amounting to Rs. 32945.64 lacs as at 31st March 2022. which represent 59% of total Current Assets of the company and 53% Total Assets of The Company. The inventory primarily comprises of Paddy as raw material packing such as Bardana/Empties material and finished goods in the form of rice and by-products. • Reviewed the instructions given by senior management to stock count teams including ensuring proper segregation of stock use of calibration scales/charts identification of damaged inventory if any etc.;
• Obtained inventory records and results of management conducted count;
Inventory holding is generally significant considering the finished goods are aged for 4-6 months and also due to seasonality of the purchase of paddy. Such inventory is stored in plinths godown warehouses silos and storage bags. High quantity of inventory makes inventory physical verification an extensive procedure for the management at the year end. • Reviewed reconciliation of differences if any between management physical count and inventory records and tested the necessary adjustment made in the inventory records by the management;
• Reviewing the Stock Auditor Report of an Independent Chartered Accountant M/s Goel Garg & Company on 31.03.2022 along with its valuation .
• Valuation:
The valuation of finished rice and by products is a comprehensive exercise and is carried out manually with the help of computer aided devices. The valuation process involves estimation around determination of Determination of Weighted average Cost • Obtained an understanding of management process of inventory valuation;
• Evaluated design effectiveness of controls over inventory valuation process and tested key controls for their operating effectiveness;
Allocable overheads and their absorption rates; • Tested inputs into the valuation process from source documents general ledger accounts;
Determination of net realisable value of by products such as husk bran etc and Determination of net realisable value of the different variety of finished product. • Tested reconciliation of opening inventory purchase/ production sales and year-end inventory to validate the amount of yield during the year and to identify any abnormal production loss;
Accordingly existence and valuation of the yearend inventory balance which is significant with respect to the total assets held by the Company is considered to be one of the areas which required significant auditor attention owing to the complexity and judgements involved in the process of physical count and valuation. • Compared key estimates including those involved in computation of allocable overheads and their absorption rate to prior years and enquired reasons for any significant variations
• Checked net realisable value of by-products from actual sale proceeds near/ subsequent to the year-end;
• Tested arithmetical accuracy of valuation calculations; and
• Evaluated appropriateness of disclosure of inventory year-end balance in the financial statements.

4. Information other than the Standalone Financial Statements and Auditors'Report thereon

The Company's Management and Board of Directors are responsible for the preparationof other information. The other information comprises the information included in theCompany's annual report but does not include the Standalone Financial Statements and ourauditors report thereon.

Our opinion on the Standalone Financial Statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the audit of Standalone Financial Statements ourresponsibility is to read the other information identified above and in doing soconsider whether the other information is materially inconsistent with the StandaloneFinancial Statements or our Knowledge obtained in the audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

5. MANAGEMENT'S RESPONSIBILITY FOR THE IND AS FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters stated in sub-section(5) of Section 134 of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these Ind AS Financial Statements that give a true andfair view of the State of affairs profit (including other comprehensive income) changesin equity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including theIndian Accounting Standards prescribed underSection 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act; for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for the ensuring the accuracy and completenessof the accounting records relevant to the preparation and presentation of the Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements the Management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

6 AUDITORS' RESPONSIBILITY FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures in the financial statements made by theManagement and Board of Directors.

Conclude on the appropriateness of the Management and Board of Directors use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors' report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

7 Report :-

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (‘ICAI') togetherwith the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Act and the rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with the IndAS and other accounting principles generally accepted in India.

(a) In the case of the Balance sheet of the state of affairs of the Company as atMarch 31st2022

(b) In the case of the Statement of profit and loss of the profit for the year endedon that date (including other comprehensive income)

(c) Changes in equity for the year ended on that date.

8 REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order 2020 (‘the Order')issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable

2. As required by Section 143(3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) Statement of changes in Equity and the Cash Flow Statement and dealt with by thisReport are in agreement with the books of account;

d. In our opinion the aforesaid Ind AS financial statements comply with the Ind ASprescribed under section 133 of the Act read with relevant rules issued thereunder;

e. On the basis of written representations received from the Directors as on March31st 2022 taken on record by the Board of Directors none of the Directors aredisqualified as on March 31st 2022 from being appointed as a Director in terms ofSection 164(2) of the Act;

f. With respect to the adequacy of the internal financial controls over the financialreporting of the Company and operating effectiveness of such controls refer to ourseparate report in "Annexure B"to this report;

g. With respect to the other matters to be included in the Auditors' Report inaccordance with the requirements of Section 197(16) of the Act as amended: In ouropinion the managerial remuneration for the year ended 31.03.2022 has been paid/providedby the Company to its directors in accordance with the provisions of section 197 read withSchedule V to the Act.

h. In our opinion the managerial remuneration for the year ended 31.03.2022 has beenpaid/provided by the Company to its directors in accordance with the provisions of section197 read with Schedule V to the Act.

i. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) 2014 as amended in ouropinion and to the best of our information and according to the explanations given to us;

i. The Company has disclosed the impact of pending litigations as at 31.03.2022 on itsfinancial position in its financial statements. Refer Note No. 8 to Notes of Accounts.

ii. In our opinion and as per the information and explanations provides to us theCompany has not entered into any long-term contracts including derivative contractsrequiring provision under applicable laws or accounting standards for materialforeseeable losses;

iii. There have been no delay in transferring the amounts required to be transferredto the Investor Education and Protection Fund by the Company during the year ended 31stMarch 2022;

iv. a) The management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentities ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of thecompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

b) The management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that thecompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries; Based on the audit procedures that have beenconsidered reasonable and appropriate in the circumstances nothing has come to our noticethat has caused us to believe that the representations under sub-clause (i) and (ii) ofRule 11(e) as provided under (a) and (b) above contain any material misstatement.

v. The company has not declared or paid any dividend during the year.

2. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For R Chopra & Associates
Chartered Accountants
(Rakesh Chopra)
Prop.
Place: Amritsar M.No.:- 514576
Date: 30.05.2022 FRN No.:- 022992N
UDIN: 22514576AJXFFD2714

Annexure A to the Independent Auditors' Report

With reference to the Annexure referred to in Independent Auditors' Report to themembers of the Company on the Ind AS financial statements for the year ended 31st March2022 we report the following :-(1) In respect of the Company's Property Plant andEquipment and Intangible Assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment

(b) The Company has maintained proper records showing full particulars of intangibleassets;

(c) The Major Property Plant and Equipment in a phased manner which in our opinionis have been physically verified by the Management at reasonable intervals during the yearandno material discrepancies were noticed on such verification

(d) According to the information and explanations furnished to us the records examinedby us and based on the examination of the conveyance deeds provided to us we report thatthe Title Deeds comprising of all the immoveable properties are held in the name of theCompany as at the Balance Sheet date.

(e) The Company has not revalued any of its Property Plant and Equipment andintangible assets during the year.

(f) No proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended) and Rules made thereunder.

(2) (a) The inventory has been physically verified during the year by the management.In our opinion the frequency of verification coverage & procedure of suchverification is reasonable and appropriate. No material discrepancies were noticed on suchverification.

(b) The Company has been sanctioned working capital limits in excess of Rs. 5 crores inaggregate from Banks/ financial institutions on the basis of security of current assets.Quarterly returns / statements filed with such Banks/ financial institutions are inagreement with the books of account except very minor differences which are not materialand hence not reported.

According to the information explanation provided to us the Company has not made anyinvestments in provided any guarantee or security or granted any loans or advances in thenature of loans secured or unsecured to companies firms Limited Liability Partnershipsor any other parties. Hence the requirements under paragraph 3(iii) of the Order are notapplicable to the Company. (3) In our opinion and according to the information andexplanations given to us the Company has not either directly or indirectly granted anyloan to any of its directors or to any other person in whom the director is interested inaccordance with the provisions of section 185 of the Act and the Company has not madeinvestments through more than two layers of investment companies in accordance with theprovisions of section 186 of the Act. Accordingly provisions stated in paragraph 3(iv) ofthe Order are not applicable to the Company.

(4) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of Sections 7374 75 and 76 of the Act and the rules framed there under. (5) The provisions ofsub-section (1) of section 148 of the Act are not applicable to the Company as the CentralGovernment of India has not specified the maintenance of cost records for any of theproducts of the Company. Accordingly the provisions stated in paragraph 3 (vi) of theOrder are not applicable to the Company (6) According to the information and explanationsgiven to us and the records of the Company examined by us in our opinion undisputedstatutory dues including goods and service tax provident fund employees' stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess have been regularly deposited by the company with appropriate authoritiesin all cases during the year.

(7) According to the information and explanation given to us and examination of recordsof the Company the outstanding dues of income-tax goods and service tax customs dutycess and any other statutory dues on account of any dispute are as follows:

Name of the statute Nature of dues Amount(in lacs) Amount paid under protest(in lacs) Period to which relates(Financial Year) Forum which dispute is pending
Punjab Value Value Added 7.91 1.97 2010-11 Commissioner
Added Tax Act2005 Tax/Cental sale Tax Excise and Taxation
Punjab Value Added Tax Act2005 Value Added Tax/Cental sale Tax 19.25 4.81 2011-12 Commissioner Excise and Taxation
Punjab Value Added Tax Act 2005 Value Added Tax/Cental sale Tax Not Determined Not Determined Hon'ble Punjab and Haryana High Court
Custom Act1962 Penalty 17.50 2013-14 Custom Authoritieskandla

(8) According to the information and explanations given to us there are notransactions which are not accounted in the books of account which have been surrenderedor disclosed as income during the year in Tax Assessment of the Company. Also there areno previously unrecorded income which has been now recorded in the books of account.Hence the provision stated in paragraph 3(viii) of the Order is not applicable to theCompany.

(9) (a) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowings or in payment ofinterest thereon to any lender.

(b) According to the information and explanations given to us and on the basis of ouraudit procedures we report that the company has not been declared wilful defaulter by anybank or financial institution or government or any government authority.

(c) In our opinion and according to the information explanation provided to us nomoney was raised by way of term loans. Accordingly the provision stated in paragraph3(ix)(c) of the Order is not applicable to the Company.

(d) According to the information and explanations given to us and the proceduresperformed by us and on an overall examination of the standalone1 financial statements ofthe company we report that no funds raised on short-term basis have been used forlong-term purposes by the company.

(e) The Company does not have any subsidiary associate or joint venture hencereporting under the clause (ix) (e) of the order is not applicable to the Company.

(f) The Company does not have any subsidiary associate or joint venture hencereporting under the clause (ix)(f) of the order is not applicable to the Company.

(10) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully partly or optionally convertibledebentures during the year. Accordingly the provisions stated in paragraph 3 (x)(b) ofthe Order are not applicable to the Company. (11) (a) During the course of our auditexamination of the books and records of the Company carried out in accordance with thegenerally accepted auditing practices in India and according to the information andexplanations given to us we have neither come across any instance of fraud by the Companynor on the Company.

(b) We have not come across of any instance of fraud by the Company or on the Companyduring the course of audit of the standalone1 financial statement for the year ended March31 2022 accordingly the provisions stated in paragraph (xi)(b) of the Order is notapplicable to the Company.

(c) As represented to us by the management there are no whistle-blower complaintsreceived by the Company during the year. Accordingly the provisions stated in paragraph(xi)(c) of the Order is not applicable to company.

(12) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone1 financial statements as required bythe applicable accounting standards except in case of following:

(a) The Company has identified all related parties and transactions with them duringthe year as follow :-

S.NO. Name of Related Party Relationship Nature of Transaction Amount In Rs. (For year ended 31.03.2021) Amount outstan ng as on 31.03.2021 (In Rs.) Amount in Rs. (For year ended 31.03.2022) Amount out- standing as on 31.03.2022 (In Rs.)
1. Shri Vijay KumarSetia Chairman Remunera- 14924707 137605260 19758423 218629261
Cum Manag- ing Director tion& Perks Interest 9978366 CR 16996027 Cr
2. Shri Rajeev Setia Joint Manag- ing Director & CFO Remunera- tion& Perks Interest 15778394 200636884 17632522 231073863
14484509 CR 18773145 Cr
3. Shri Sukarn Setia* Executive Director Remunera- tion& Perks 1360167 10258658.48 1813457 5856456 CR
Interest 1349593 DR 506908
4. Shri Sankesh Setia Executive Director Remunera- tion& Perks Interest 8232194 1447298 CR 13644161 12200204 CR
730396 426147
5. Shri Ankit Setia Executive Director Remunera- tion& Perks 7439200 79360369 11390270 77112083 CR
Interest 6775334 CR 5967011
6. Smt. Isha Setia Director's Wife Remunera- tion 600000 NIL 600000 32008 CRRs
7. Smt. Richa Setia Director's Wife Remunera- tion 480000 NIL 480000 0
8. Setia Rice Mills Sister Lease Rent 300000 2832434 DR 300000 2820034 DR
Concern
9. S.A Exports Sister Rice Sale/ 1499040 94539 DR 694847 294393 DR
Concern Job Work/ Rent
10. AVN Group Sister Lease 21503982 8968.5 CR 21183840 331000
Concern Rent/others
11. Star Exports Sister Concern Sale/Job work /Rental Income 32446604 5964721 CR 122799901 24950062 DR
12. Select Exports Sister Concern Rice Pur- chase 1148650 6334177 CR
13. Virgo Overseas Sister Basement 240270 240270
Concern Rent

*Mr. Sukarn Setia has given his resignation w.e.f 16.06.2022

13 (a) In our opinion and based on our examination the Company has an internal auditsystem commensurate with the size and nature of its business.

(b) We have considered internal audit reports issued by internal auditors during ouraudit.

14 According to the information and explanations given to us in our opinion during theyear the Company has not entered into non-cash transactions with directors or personsconnected with its directors and hence provisions of section 192 of the Act are notapplicable to company. Accordingly the provisions stated in paragraph 3(xv) of the Orderare not applicable to the Company

15 (a) In our opinion the Company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions stated in paragraphclause 3 (xvi)(a) of the Order are not applicable to the Company.

(b) In our opinion the Company has not conducted any Non-Banking Financial or HousingFinance activities without any valid Certificate of Registration from Reserve Bank ofIndia. Hence the reporting under paragraph clause 3 (xvi)(b) of the Order are notapplicable to the Company.

(c) The Company is not a Core investment Company (CIC) as defined in the regulationsmade by Reserve Bank of India. Hence the reporting under paragraph clause 3 (xvi)(c) ofthe Order are not applicable tothe Company.

(d) The Company does not have more than one CIC as a part of its group. Hence theprovisions stated in paragraph clause 3 (xvi)(d) of the Order are not applicable to theCompany.

16 Based on the overall review of standalone1 financial statements the Company has notincurred cash losses in the current financial year and in the immediately precedingfinancial year. Hence the provisions stated in paragraph clause 3 (xvii) of the Order arenot applicable to the Company.

17 There has been no resignation of the statutory auditors during the year. Hence theprovisions stated in paragraph clause 3 (xviii) of the Order are not applicable to theCompany.

18 According to the information and explanations given to us and based on ourexamination of financial ratios ageing and expected date of realisation of financialassets and payment of liabilities other information accompanying the standalone1financial statements our knowledge of the Board of Directors and management plans we areof the opinion that no material uncertainty exists as on the date of audit report and theCompany is capable of meeting its liabilities existing at the date of balance sheet as andwhen they fall due within a period of one year from the balance sheet date.

19 (a) According to the information and explanations given to us the provisions ofsection 135 of the Act are applicable to the Company. The Company has made the requiredcontributions during the year and there are no unspent amounts which are required to betransferred either to a Fund or to a Special Account as per the provisions of section 135of the act read with schedule VII. Accordingly reporting under clause 3(xx)(a) and clause3(xx)(b) of the Order is not applicable to the Company.

(b) In respect of ongoing projects the Company has transferred unspent amount to aspecial fund within a period of thirty days from the end of the financial year incompliance section 135(6) of the said Act except in respect of the following:

(c) Details of CSR amount spent against ongoing projects for the financial year:

1 2 3 4 5 6 7 8 9 10 11
S. Name of the Project No.

Item from the list of activities in Sched- ule VII to the Act

Local area (Yes/ No) Location of the project Project dura- tion Amount allocated for the project Amount spent in the current financial Year Amount transferred to Unspent CSR Ac- count for the project as per Sec- tion 135(6) Mode of Imple- menta- tion - Direct (Yes/ No) Mode of Implementa- tion - Through Implementing Agency
State District (Rs) (Rs) (Rs)
1. CLSEL Swachh bharat abhiyan project (Prepar- ing & Maintenance of toilets in villages Area Amritsar and in karnal city) Healthcare Yes Punjab & haryana Amritsar & karnal 3 Years 900000 100000 800000 YES
2. CLSEL Pilot Project for judicious use of pesti- cides & use of Drones Spray Technology P r o m o t- ing Social Welfare YES Haryana Karnal 3 Years 1500000 100000 1400000 YES
3 CLSEL each one educate one project(Government School Debri Karnal) Promoting education & Social Welfare fa- cilities YES Haryana Karnal 3 Years 600000 10000 590000 YES
4 CLSEL each one educate one project(Government School Model Town Karnal) Promoting education & Social Welfare fa- cilities YES Haryana Karnal 3 Years 600000 10000 590000 YES
5 CLSEL each one educate one project (Kindriya Vidhlaya Govt. School Karnal) Promoting education & Social Welfare fa- cilities YES Haryana Karnal 3 Years 600000 5000 595000 YES
6 CLSEL each one edu- cate one project( Govt. School Chirao Karnal) Promoting education & Social Welfare fa- cilities YES Haryana Karnal 3 Years 600000 5000 595000 YES
7 CLSEL each one edu- cate one project( Govt. School Parnami School Karnal) Promoting education & Social Welfare fa- cilities YES Haryana Karnal 3 Years 600000 10000 590000 YES
8 CLSEL Healthcare facilities in Sewa Bharti Haryana Parishad (installation of dialysis machines & allied instruments for free treatment of poor and needy people) Promoting Healthcare facilities and Social Welfare YES Haryana Karnal 3 Years 1668832 20000 1648832 YES
9 CLSEL Healthcare facilities in Trauma Centre Civil Hospital Karnal/Kalpana Chawla Medical College (providing equipments/ medical facilities for cancer & other needy and poor people) Promoting Healthcare facilities and Social Welfare YES Haryana Karnal 3 Years 2000000 53321 1946679 YES
Total 9068832 313321 8755511

21 According to the information and explanations given to us the Company does not haveany Subsidiary Associate or Joint Venture. Accordingly reporting under clause 3(xxi) ofthe Order is not applicable.

For R Chopra & Associates
Chartered Accountants
sd/-
(Rakesh Chopra)
Prop.
Place: Amritsar M.No.:- 514576
Date: 30.05.2022 FRN No.:- 022992N
UDIN: 22514576AJXFFD2714

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT – 31ST MARCH 2022

(Refer to in our report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") We have audited the internalfinancial controls over financial reporting of Chaman Lal Setia Exports Ltd. ("theCompany") as of 31st March 2022 in conjunction with our audit of the Ind ASfinancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.("the Act").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing as specified under Section143 (10) of the Companies Act 2013 issued by ICAI and deemed to be prescribed underSection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether internal financial controls over financial reportingwas established and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of IND AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the Ind AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

For R Chopra & Associates
Chartered Accountants
sd/-
(Rakesh Chopra)
Prop.
Place: Amritsar M.No.:- 514576
Date: 30.05.2022 FRN No.:- 022992N
UDIN: 22514576AJXFFD2714

.