NIJJER AGRO FOODS LIMITED
ANNUAL REPORT 2009-2010
The shareholders of
NIJJER AGRO FOODS LIMITED
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 Company's management.
Our responsibility is to express an opinion on these financial statements
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 (Auditor's 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
a) We have obtained all the information and explanations which, to the best
of 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 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
d) In our opinion, the Balance Sheet, the Profit and loss Account and the
Cash Flow Statement 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.
For Lakhwinder Singh & Associates
(Lakhwinder Singh Bhatia)
Annnexure 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 reasonable. Company has
maintained proper record of inventory no material discrepancies were
noticed on physical verification. In our opinion and according to the
information and explanations 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 business 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 Government under section 209-(1)(d) of the Companies Act,
1956 in respect of the Company's 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
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 applicable.
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
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
(Lakhwinder Singh Bhatia)
Date : 15-08-2009