Notes to Accounts of Nijjer Agro Foods Ltd.

Mar 31, 2009

1. Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances) Rs. NIL (Previous year Rs. NIL).

2. Some of the Sundry Debtors, Creditors, and advances are subject to confirmation.

3. As on 31.03.2009 Gratuity liability payable to employees has been worked out by the Com- pany at Rs. 0.62 Lacs (Previous year Rs 0.97 Lacs). No provision has been made in accounts for this amount.Penalty on account of delayed payment/non payment of Provident Fund, E.S.I and T.D.S, it will be provided in accounts when levied.

4. Company has arrived at settlement with all financial institutions from which it raised loans for setting up of the project. Settled amount has since been paid, Company his yet to issue equity shares to IDBI Limited for Rs 106 Lacs. These shares are to be issued by conversion of interest accrued and due standing in books as secured loan. In respect of the amount due to IFCI Limited out of Rs 118.50 Lacs which was earlier to be converted into shares and subsequently it was agreed to be paid in cash. Upto 31-03-2009 Rs 76 Lacs was due for payment, along with interest. In respect of term loan of Kotak Mahindra Bank Limited there are over-dues in this account, total amount overdue as on 31-03-2009 is not ascertainable. Interest accrued on term loan has been calculated on average balance @ 16% subject to reconciliation.

5. In the opinion of the management, current assets, loans and advances will have the value at which they are stated in Balance Sheet, if realised in the ordinary course of business.

6. The amount paid or provided for by way of remuneration to Managing Director is as under:

Salary Rs. 9,00,000.

This is the minimum remuneration payable in case of inadequate profit. As no commission is payable, working u/s 199 of the Companies Act, 1956 has not been given.

7. Additional Information as required pursuant to the provisions of schedule VI of the Companies Act, 1956.

8. As required by accounting standard 18 Company has transactions with the following that can be termed as related parties Managing Directors remuneration Rs. 9,00,000

9. Previous Year figures have been regrouped where ever necessary, to conform to this Years classifications.