IFB Agro board approves Rs 40 crore in poll bonds

The company said that the decision was in the best interest of the company and all its stakeholders.

Kolkata-based IFB Agro Industries' board approved contributing upto Rs 40 crore to political parties in the financial year 2022-23 by subscribing to the electoral bonds in one or more tranches.

In the exchange filing Friday (1 April), signed by IFB Agro's chief financial officer Rahul Choudhary, the company said it was making the disclosure "in continuation to our earlier letters to the Stock Exchanges wherein it has intimated about excise related issues being faced by/ affecting the company."

The board of directors in its meeting dated 31 March 2022, considered "such issues" and in the best interest of the company and all its stakeholders, decided to approve contributions to political parties by way of subscription to the electoral bonds in one or more tranches aggregating not more than Rs 40 crore for the financial year 2022-23, the company said in the filing on Friday.

Earlier on 7 October 2021, it had made a similarly disclosure pertaining to subscription of electoral bonds "aggregating not more than Rs 25 crore for the financial year 2021-22." Even at that time, it cited excise-related issues.

On 26 June 2020, the company informed that its distillery in Noorpur, South 24 parganas, West Bengal was attacked on 25 June 2020, by a group of more than 150 armed goons. The distillery was forced to shut down and its workers were asked to vacate the factory at gun point. A police complaint was made to the local police station and operations resumed on 2 July 2020 after the police protection was provided.

Later on 22 December 2020, the company informed that "till date no offenders had been brought to book."

IFB Agro Industries is engaged in the business of manufacturing alcohol Indian Made Indian Liquor (IMIL), as well as processed and packed marine foods both for domestic and export markets.

On a consolidated basis, net profit of IFB Agro Industries declined 49.38% to Rs 8.59 crore on 27.68% rise in net sales to Rs 257.47 crore in Q3 December 2021 over Q3 December 2020.

Shares of IFB Agro Industries were up 4.21% at Rs 687 on the BSE.

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