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IFB Agro Industries Ltd.

BSE: 507438 Sector: Consumer
NSE: IFBAGRO ISIN Code: INE076C01018
BSE LIVE 15:08 | 22 Nov 666.10 -3.85
(-0.57%)
OPEN

652.00

HIGH

687.00

LOW

652.00

NSE 15:31 | 22 Nov 680.75 15.75
(2.37%)
OPEN

685.00

HIGH

685.00

LOW

657.00

OPEN 652.00
PREVIOUS CLOSE 669.95
VOLUME 936
52-Week high 757.00
52-Week low 327.20
P/E 18.84
Mkt Cap.(Rs cr) 624
Buy Price 666.10
Buy Qty 10.00
Sell Price 682.90
Sell Qty 35.00
OPEN 652.00
CLOSE 669.95
VOLUME 936
52-Week high 757.00
52-Week low 327.20
P/E 18.84
Mkt Cap.(Rs cr) 624
Buy Price 666.10
Buy Qty 10.00
Sell Price 682.90
Sell Qty 35.00

IFB Agro Industries Ltd. (IFBAGRO) - Auditors Report

Company auditors report

To the Members of IFB Agro Industries Limited.

Report on the Financial Statements

1. We have audited the accompanying financial statements of IFB Agro IndustriesLimited ("the Company") which comprise the Balance Sheet as at 31 March 2017the Statement of Profit and Loss and the Cash Flow Statement for the year then ended anda summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards prescribedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 (asamended). This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

5. We conducted our audit in accordance with the Standards of Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthese financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors' judgement including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on these financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2017 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder.

10. Further to our comments in Annexure A as required by Section 143(3) of the Act wereport that:

a. we have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books;

c. the financial statements dealt with by this report are in agreement with the booksof account;

d. in our opinion the aforesaid financial statements comply with the AccountingStandards prescribed under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 (as amended);

e. on the basis of written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31 March2017 from being appointed as a director in terms of Section 164(2) of the Act;

f. we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as on 31 March 2017 in conjuction with our audit of the financialstatements of the Company for the year ended on that date and our report dated 17 May 2017as per Annexure B expresses our unmodified opinion on adequacy and operative effectivenessof internal controls over financial reporting; and

g. with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

i. the Company as detailed in Note 40 to the financial statements has disclosed theimpact of pending litigations on its financial position;

ii. the Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses;

iii. there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company; and

iv. the Company as detailed in Note 39 to the financial statements has made requisitedisclosures in these financial statements as to holdings as well as dealings in theseSpecified Bank Notes during the period from 8 November 2016 to 30 December 2016. Based onthe audit procedures performed and taking into consideration the information andexplanations given to us in our opinion these are in accordance with the books ofaccount maintained by the Company.

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT of even date to the members of IFB AgroIndustries Limited on the financial statements for the year ended 31March 2017

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management during the yearand no material discrepancies were noticed on such verification. In our opinion thefrequency of verification of the fixed assets is reasonable having regard to the size ofthe Company and the nature of its assets.

(c) The title deeds of all immovable properties (which are included under the head'fixed assets') are held in the name of the Company.

(ii) In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies between physicalinventory and book records were noticed on physical verification.

(iii) The Company has not granted any loan secured or unsecured to companies firmsLimited Liability Partnerships (LLPs) or other parties covered in the register maintainedunder Section 189 of the Act. Accordingly the provisions of clauses 3(iii)(a) 3(iii)(b)and 3(iii)(c) of the Order are not applicable.

(iv) In our opinion the Company has complied with the provisions of section 186 inrespect of investments. Further in our opinion the Company has not entered into anytransaction covered under Section 185 and Section 186 of the Act in respect of loansguarantees and security.

(v) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) The Central Government has not specified maintenance of cost records undersub-section (1) of Section 148 of the Act in respect of Company's products. Accordinglythe provisions of clause 3(vi) of the Order are not applicable.

(vii) (a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income tax sales-tax service tax duty ofcustoms duty of excise value added tax cess and other material statutory dues asapplicable to the appropriate authorities. Further no undisputed amounts payable inrespect thereof were outstanding at the year-end for a period of more than six months fromthe date they become payable.

(b) The dues outstanding in respect of income-tax sales-tax service tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows:

Name of the statute Nature of dues Amount (Rs in lacs) Amount Paid Under Protest (Rs in lacs) Period to which the amount relates Forum where dispute is pending
Income-tax Act 1961 Income tax 62.96 62.96 2013-14 Commissioner of Income Tax (Appeals)
West Bengal Sales Tax Act 1994 Sales tax 25.44 Nil 2004-05 Sr. Jt. Commissioner (Commercial Taxes) West Bengal
West Bengal Sales Tax Act 1994 Sales tax 344.66 Nil 2005-06 Addl. Commissioner of Commercial Taxes West Bengal
West Bengal Sales Tax Act 1994 Sales tax 41.38 Nil 2006-07 Appellate and Revisional Board West Bengal
West Bengal Sales Tax Act 1994 Sales tax 397.00 Nil 2007-08 Appellate and Revisional Board West Bengal
West Bengal Sales Tax Act 1994 Sales tax 175.11 Nil 2008-09 Appellate and Revisional Board West Bengal
West Bengal Sales Tax Act 1994 Sales tax 61.70 Nil 2012-13 Appellate and Revisional Board West Bengal
West Bengal Sales Tax Act 1994 Sales tax 145.00 45.00 2013-14 Appellate and Revisional Board West Bengal
Central Sales Tax Act 1956 Sales tax 9.08 Nil 2005-06 Appellate and Revisional Board West Bengal
Central Sales Tax Act 1956 Sales tax 1.76 Nil 2007-08 Appellate and Revisional Board West Bengal
West Bengal VAT Act 2003 Value added tax 131.00 Nil 2005-06 Appellate and Revisional Board West Bengal
West Bengal VAT Act 2003 Value added tax 5.75 Nil 2006-07 Appellate and Revisional Board West Bengal
West Bengal VAT Act 2003 Value added tax 924.60 Nil 2007-08 Appellate and Revisional Board West Bengal
West Bengal VAT Act 2003 Value added tax 569.98 Nil 2008-09 Appellate and Revisional Board West Bengal
The Bengal Excise Act 1909 State excise duty 139.61 Nil 2010-11 West Bengal Taxation Tribunal
The Bengal Excise Act 1909 State excise duty 189.00 Nil 2011-12 High Court of Calcutta
The Bengal Excise Act 1909 State excise duty 117.18 Nil 2012-13 West Bengal Taxation Tribunal
The Bengal Excise Act 1909 State excise duty 126.00 Nil 2013-14 West Bengal Taxation Tribunal
The Bengal Excise Act 1909 State excise duty 101.00 Nil 2014-15 West Bengal Taxation Tribunal
The Bengal Excise Act 1909 State excise duty 197.00 Nil 2015-16 West Bengal Taxation Tribunal
West Bengal Molasses Control Act 1973 State excise duty 43.34 15.00 2003-2006 High Court of Calcutta
West Bengal Molasses Control Act 1973 State excise duty 14.65 Nil 2008 High Court of Calcutta
The Customs Act 1962 Customs duty 38.02 Nil 2013-14 Commissioner of Customs (Appeals)

(viii) The Company has not defaulted in repayment of loans or borrowings to any bank orfinancial institution or government during the year. The Company did not have anyoutstanding debentures during the year.

(ix) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments). In our opinion the term loans were applied for thepurposes for which the loans were obtained.

(x) No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit.

(xi) Managerial remuneration has been paid/provided by the Company in accordance withthe requisite approvals mandated by the provisions of section 197 of the Act read withSchedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly provisions ofclause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance withsections 177 and 188 of the Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable accountingstandards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) In our opinion the Company has not entered into any non-cash transactions withthe directors or persons connected with them covered under Section 192 of the Act.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

Annexure B to the Independent Auditor's Report of even date to the members of IFB AgroIndustries Limited on the financial statements for the year ended 31 March 2017

Independent Auditor's report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

1. In conjunction with our audit of the financial statements of IFB Agro IndustriesLimited ("theCompany") as of and for the year ended 31 March 2017 we haveaudited the internal financial controls over financial reporting ("IFCoFR") ofthe Company as of that date.

Management's Responsibility for Internal Financial Controls

2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India ("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of the Company's business including adherenceto Company's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of IFCoFR and the Guidance Note issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate IFCoFR wereestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's IFCoFR is a process designed to provide reasonable assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sIFCoFR includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become in adequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note issued by the ICAI.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm Registration No. 001076N/N500013
per Anamitra Das
Place : Kolkata Partner
Date : 17 May 2017 Membership No.: 062191