KRBL Limited , a leading rice exporter and manufacturer, has announced the resignation of Anil Kumar Chaudhary from his position as Independent Director. The resignation, effective September 8, 2025, comes amidst concerns over board dynamics and governance issues raised by Chaudhary.

Reasons for Resignation

In his resignation letter, Chaudhary outlined several reasons for his departure:

1. Inconsistencies in Board Proceedings: He pointed out discrepancies in the recording of minutes for Board and Committee meetings.

2. Information Withholding: Chaudhary mentioned instances where information crucial for informed decision-making was not provided.

3. Financial Concerns: He raised issues regarding the unjust write-off of certain export receivables without adequate deliberation.

4. CSR Fund Usage: Concerns were expressed about the utilization of Corporate Social Responsibility (CSR) funds.

5. Compensation Issues: Chaudhary highlighted arbitrary distribution of variable pay and annual increments to persons holding office or place of profit.

6. Corporate Governance: He noted significant changes to the Object Clause undertaken without comprehensive discussion and undue interference by invitees in Board and Committee meetings.

Impact on Governance

Chaudhary's resignation raises questions about KRBL's corporate governance practices. In his letter, he emphasized the importance of effective governance and truly independent oversight for safeguarding stakeholder interests. He stated that the prevailing dynamics of the Board were inconsistent with these principles.

Company's Response

KRBL Limited, in its regulatory filing, confirmed that Chaudhary has not provided any material reasons for his resignation other than those mentioned in his resignation letter. The company has complied with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, by disclosing the required details regarding the director's departure.

Looking Ahead

The resignation of an Independent Director citing governance concerns could potentially impact investor confidence and may lead to increased scrutiny of KRBL's board practices. Stakeholders will likely be watching closely to see how the company addresses these issues and strengthens its corporate governance framework in the wake of this development.

KRBL Limited will need to address the concerns raised by Chaudhary to maintain trust with its shareholders and ensure compliance with regulatory standards. The appointment of a new Independent Director to fill this vacancy will be a key step in moving forward and potentially addressing the issues highlighted in Chaudhary's resignation letter.

KRBL Limited , the world's largest integrated manufacturer and exporter of Basmati rice, has initiated a pan-India awareness campaign through its India Gate brand. The campaign aims to educate consumers and trade partners about the new Food Safety and Standards Authority of India (FSSAI) regulations for Basmati rice, which came into effect on August 1, 2023.

New FSSAI Standards for Basmati Rice

The newly enforced FSSAI regulations establish stringent quality parameters for various forms of Basmati rice, including brown, milled, and parboiled varieties. Key aspects of the new standards include:

• Restriction of non-basmati grain presence to a maximum of 15% in Basmati rice
• Requirement for natural fragrance in the rice
• Prohibition of artificial coloring, polishing agents, and artificial fragrances

These regulations are designed to address the issue of adulteration in Basmati rice sold across India, ensuring consumers receive authentic products.

Comprehensive Awareness Campaign

KRBL Limited's awareness initiative encompasses multiple channels to reach a wide audience:

• Television commercials
• Print advertisements
• Social media campaigns

The company aims to inform consumers about the new quality standards and help them make informed decisions when purchasing Basmati rice.

Alignment with Company Mission

Ayush Gupta, Business Head at KRBL Limited, emphasized that the new regulations align with the company's mission to deliver authentic Basmati rice to consumers. He stated that the standards address the rampant adulteration in Basmati rice sold in India, highlighting the company's commitment to quality and authenticity.

KRBL Limited's Market Position

As the world's largest integrated manufacturer and exporter of Basmati rice, KRBL Limited boasts impressive processing capabilities:

The company's initiative to promote awareness about the new FSSAI standards demonstrates its leadership role in the Basmati rice industry and its dedication to maintaining high-quality standards in the market.

This awareness campaign by KRBL Limited not only educates consumers but also reinforces the company's position as a responsible and quality-focused player in the Basmati rice sector.