Nijjer Agro Foods Ltd.-இன் இயக்குநர் அறிக்கை

Mar 31, 2009

The Directors are pleased to present the Twenty-first Annual report of the Company along with the audited accounts for the year ended 31st March 2009.

FINANCIAL RESULT

(Rs. in Lacs)

YEAR ENDED YEAR ENDED

31.03.2009 31.03.2008

Total Income 1213.99 905.24

Profit /(Loss) before interest 211.93 91.91 and depreciation

Interest 183.47 251.10

Depreciation 94.85 94.76

Transfer to balance sheet (66.39) (253.95)



In view of losses, no dividend is being recommended.

OPERATIONS :

We are pleased to inform the share holders that during the financial year under review, your Company imported a belt press from China. This was installed and became operational during the year. As a result of this Company could process 1676 MT of Amla to produce amla juice for Patanjali Ayurveda Limited and earned job charges of Rs. 90.45 Lacs.

During the year your Company could produce 1300 MT of tomato paste against 75 MT. of last year, however production of chili puree went up marginally to 404 MT against 356 MT of last year. Milk business of the Company continued to be adversely affected during this year also. Due to shortage of availability of milk in the market due to competition and shortage of working capital, Company decided not to operate milk planton its own. Processing of Ketchup on behalf of Nestle was 1313 MT against 2558 MT of last year however during the year Nestle discontinued ketchup processing at our unit. The production of own brand of ketchup went down due to shortage or non- availability of tomato paste, an essntial ingredient of ketchup. During the year Company also processed 1482 MT of fruit pupls agaisnt 1702 MT of last year. Due to increase in production of tamato paste, and continued non operation of milk plant on its own, the Company ended the year with turnover of Rs. 1213.99 Lacs agianst Rs. 905.24 Lacs of last year, and there is a net loss of Rs. 66.39 Lacs agianst 253.95 Lacs of last year. Efforts are being made at all le-eis to add new value added products to the existing product range to increase realisable values per unit of production, and to cut costs to achieve profitability.

The Company had arrived at a negotiated settlement with all three financial institutions, and total dues have been cleared. However Company has yet to issue equity shares as per the sanctioned scheme. IFCI Limited has decided to receive cash in place of 0% optionally convertible debentures, out of the amount due a sum of Rs. 76 Lacs is still payable.

Due to delay in payment of listing fee trading in the shares of our Company was sus- pended by BSE. The Company is pursuing the matter with BSE and expects that the trading will start soon. Consequent on the request made DSE has revoked suspension of trading in the shares of our Company, trading will start once DSE start operations.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to requirements of section 217 of the Companies Act, 1956, your Directors confirm that:

1. In the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures.

2. They have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on March 31, 2009 and the Profit & Loss |Account of the Company for the year ended on that date.

3. They have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

4. They have prepared the accounts on a going concern basis.

DIRECTORS

Sh. W.S. Nijjer, Mrs. Navdeep Nijjer and Sh. G.S Kalkat retire by rotation at the forthcoming Annual General Meeting & being eligible, offer themselves for reappointment.

Darticulars of the Directors retiring by rotation and seeking re-appointment pursuant to clause 49 of the Listing Agreement with Stock Exchange are as follows:

Name of Director Shri W. S. Nijjer Mrs. Navdeep Nijjer Shri G.S Kalkat

Date of Birth 26-11-1926 08-03-1962 17-06-1926

Date of Appointment 08-01-1991 27-07-2002 08-01-1991

Qualification Graduate Graduate Doctorate

Experience 49 years 9 years 45 years

Detail of other NIL NIL NIL Directorship

Detail of other Board NIL One NIL Committee

FIXED DEPOSITS

The Company did not accept fixed deposits during the year and no deposits were overdue for payment as on 31.3.2009.

PARTICULARS OF EMPLOYEES

None of the employees was in receipt of remuneration in excess of the limits laid down in Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975.

CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORP- TION AND FOREIGN EXCHANGE EARNING AND OUTGO.

As required under The Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, the information is annexed and forms a part of this report.

CORPORATE GOVERNANCE

A separate report on Corporate Governance along with the Auditors certificate on its compliance is attached and forms part of this report.

AUDITORS

M/S Lakhwinder Singh & Associates, Chartered Accountants, auditors of the Company hold office until the conclusion of the forthcoming Annual General Meeting & being eligible offer themselves for reappointment. You are requested to reappoint them.

AUDITORS OBSERVATIONS ON ACCOUNTS

There are delays in deduction/deposit of Provident Fund and Employees State Insurance dues with appropriate authorities and amount due could not be deposited due to financial constraints. Further during the year deduction on account of TDS was not made and no amount was deposited with the authorities. The Company is putting in all efforts to clear the over dues at the earliest.

ACKNOWLEDGEMENT

The Board wishes to place on record its appreciation for the continued support received from all its employees, IFCI Limited, Bankers, Government authorities and customers. Industrial relations remained cordial during the year.

On behalf of the Board of directors

Place: Regd. Office, SATBIR NIJJER NAVDEEP NIJJER

Vill: Meharbanpura, Managing Director Director

PO. Jandiala Guru,

Amritsar

Date: 15.08.2009