Nijjer Agro Foods Ltd. இன் முடிவுகள்

Mar 31, 2009

We have audited the attached Balance Sheet of NIJJER AGRO FOODS LIMITED as at 31st March 2009, the Profit and Loss Account and Cash Flow Statement of the said company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial state- ments based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003 issued by the Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 & 5 of the said Order, to the extent applicable to the Company. Further to our comments in the Annexure referred to above, we report that:

a) We have obtained all the information and explanations which, to the best of our knowl- edge 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 the Company so far as it appears from our examination of the books;

c) The Balance Sheet, the Profit and loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, the Profit and loss Account and the Cash Flow State- ment dealt with by this report comply with Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

e) On the basis of information and explanations given to us and representations obtained by the Company and taken note of by the board of directors, we report that none of the Directors is disqualified u/s 274(1 )(g) of the Companies Act, 1956 from being appointed as Director.

In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and read together with notes thereon give a true and fair view;

1) In case of the Balance Sheet, of the state of affairs of the company as on 31st March 2009.

2) In case of the Profit and loss Account, of the profit of the company for trie year ended on that date.

3) In case of Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

Annexure referred to the Auditors Report to the Members of Nijjer Agro Foods Ltd (the Company) on the accounts for the year ended on 31-03-2009. We report that:

1. The Company has maintained proper records to show full particulars including quantitative details and situation of fixed assets. As explained to us, the management has physically verified fixed assets during the year and no material discrepancies have been noticed. In our opinion the frequency of physical verification of fixed assets is reasonable. None of the fixed assets were disposed off during the year and therefore there is no effect on the going concern status of the Company.

2. The stock of finished goods, stores, spare parts, raw materials have been physically verified by the management during the year and in our opinion the frequency of verification was reason- able. Company has maintained proper record of inventory no material discrepancies were noticed on physical verification. In our opinion and according to the information and explana- tions given to us, the procedures of physical verification of stocks followed by the Company are reasonable and adequate and commensurate with the size of company and the nature of its business. The discrepancies noticed on verification between the physical stock, and the book records were not material and have been properly dealt with in the books of account.

3. The Company has not granted any loans to Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with its size and the nature of its busi- ness for purchase of inventory, fixed assets and sale of goods. We have not noted any continuing failure to correct any major weakness in internal controls during the course of audit.

5. According to information and explanations given to us, the Company has not entered into any transactions of purchase of goods and materials and sale of goods, materials and services in pursuance of contract or agreements entered in the register maintained under section 301 of the Companies Act, 1956 aggregating during the year to Rs. 5,00,000/- or more in respect of each party.

6. The Company has not accepted deposits from public consequently provisions of section 58 A and rules framed there under are not applicable.

7. The Company has an internal audit system, which is commensurate with its size and nature of business.

8. We are informed that maintenance of cost records has not been prescribed by the Central Govern- ment under section 209-(1) (d) of the Companies Act, 1956 in respect of the Companys products.

9. Provident Fund / Employee State Insurance dues have not been regularly deposited with appropriate authorities and there are delays in large number of cases. As on 31s1 March 2009 the arrears of Provident Fund and E.S.I, due for payment for a period of more than six months from the date they became payable amounts to Rs. 89,371/-. During the year ended on 31-03-2009 no Income Tax has been deducted at source from different persons as per the requirement of the provisions of Income Tax Act 1961, this non deducted amount comes to Rs. 4,34,576 and consequently this amount has not been deposited with the appropriate authorities, further no provision has been made in accounts for this liability.

10. According to information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Custom Duty and Excise Duty were outstanding as on 31st March, 2009 for a period of more than six months from the date they became payable.

11. By the order dated 08-11-2005 the Board for Industrial and Financial Reconstruction has declared that the net worth of the Company has become positive and as such stands discharged from the preview of SICA with immediate effect. However subsequent to this order Company has inccurred further losses. As on 31-03-2009 accumulated loss amount to Rs. 10,14,88,662.

12. Company has arrived at settlement with all three financial institutions from whom it raised term loan. As per the settlement as on 31st March 2009, Company has not issued equity shares to IDBI Limited, to be issued in lieu of interest accrued and due. As per the revised settlement with IFCI Limited, Company is to pay Rs. 118.50 Lacs in cash instead of equity shares. Out of this as on 31-03-2009 a sum of Rs. 76 Lacs with interest has not yet been paid.

13. Company has not granted loans & advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, clause 4(xii) of the order is not appli- cable.

14. The Company is not a chit fund, nidhi, mutual benefit fund or a society. Accordingly, clause 4(xiii) of the order is not applicable.

15. According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, clause 4(xiv) of the order is not applicable.

16. According to the information and explanations given to us, the Company has not given guarantee for loans taken by others from banks or financial institutions. Accordingly, clause 4(xv) of the order is not applicable.

17. During the year the Company has not raised fresh term loan.

18. According to the information and explanations given to us, during the Year Company has not raised working capital, Term Loan & Crop Loan from bankers.

19. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act. Accordingly, clause 4(xviii) of the order is not applicable.

20. The Company has not issued any debentures. Accordingly, clause 4(xix) of the order is not applicable.

21. The Company has not raised any money by public issues during the year. Accordingly, this clause of the order is not applicable.

22. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year.



For Lakhwinder Singh & Associates

Chartered Accountants

Place : Amritsar (Lakhwinder Singh Bhatia)

Dated : 15-08-2009 Prop.