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IFB Agro Industries Ltd.

BSE: 507438 Sector: Consumer
NSE: IFBAGRO ISIN Code: INE076C01018
BSE 00:00 | 16 Sep 401.60 -7.40
(-1.81%)
OPEN

409.00

HIGH

439.40

LOW

390.10

NSE 00:00 | 16 Sep 402.80 -6.00
(-1.47%)
OPEN

409.00

HIGH

446.70

LOW

391.95

OPEN 409.00
PREVIOUS CLOSE 409.00
VOLUME 11300
52-Week high 708.80
52-Week low 241.05
P/E 15.18
Mkt Cap.(Rs cr) 376
Buy Price 390.00
Buy Qty 22.00
Sell Price 398.50
Sell Qty 55.00
OPEN 409.00
CLOSE 409.00
VOLUME 11300
52-Week high 708.80
52-Week low 241.05
P/E 15.18
Mkt Cap.(Rs cr) 376
Buy Price 390.00
Buy Qty 22.00
Sell Price 398.50
Sell Qty 55.00

IFB Agro Industries Ltd. (IFBAGRO) - Auditors Report

Company auditors report

To

The members of

IFB Agro Industries Limited.

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of IFB AgroIndustries Limited ('the Company') which comprise the Balance Sheet as at 31 March 2018the Statement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe 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 of thesestandalone financial statements that give a true and fair view of the state of affairs(financial position) profit or loss (financial performance including other comprehensiveincome) cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards ('IndAS') specified under Section 133 of the Act. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our 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 on 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 standalone 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 theauditor's judgment 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 the 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 standalone financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including Ind AS specified under Section133 of the Act of the state of affairs (financial position) of the Company as at 31 March2018 and its profit (financial performance including other comprehensive income) itscash flows and the changes in equity for the year ended on that date.

Other Matter

9. TheCompany had prepared separate sets of statutory financial statements for the yearended 31 March2017 and31 March2016in accordance with Accounting Standards prescribed underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 (asamended) on which we issued auditor's reports to the shareholders of the Company dated 17May 2017 and 14 May 2016 respectively. These financial statements have been adjusted forthe differences in the accounting principles adopted by the Company on transition to IndAS which have also been audited by us. Our opinion is not modified in respect of thismatter.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued bythe Central Government of India in terms of Section 143(ll)of the Act we give in theAnnexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.

11. Further to our comments in Annexure A as requiredby Section 143(3) ofthe Act wereport that:

a. we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary forthe 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 standalone financial statements dealt with by this report are in agreement withthe books of account;

d. in our opinion the aforesaid standalone financial statements comply with Ind ASspecified under Section 133 of the Act;

e. on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31 March2018 from being appointed as a director in terms of Section 164(2) ofthe Act;

f. we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as on 31 March 2018 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date and ourreport dated 30 May 2018 as per Annexure B expresses our unmodified opinion on adequacyand operative effectiveness of 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 31 to the standalone financial statements hasdisclosed the impact of pending litigations on its financial position;

ii. the Company did not have any long-term contracts including derivative contracts forwhich 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 disclosure requirements relating to holdings as well as dealings in specifiedbank notes were applicable for the period from 8 November 2016 to 30 December 2016 whichare not relevant to these standalone financial statements. Hence reporting under thisclause is not applicable.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No. 001076N/N500013

per Anamitra Das

Partner

Membership No. 062191

Place : Kolkata

Date :30 May 2018

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT of even date to the members of IFB Agro

Industries Limited on the financial statements for the year ended 31March 2018

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 belief we 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 year byengaging the outside expert and no material discrepancies were noticed on suchverification. In our opinion the frequency of verification of the fixed assets isreasonable having regard to the size of the Company and the nature of its assets.

(c) The title deeds of all the immovable properties (which are included under the head'Property plant and equipment') 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 except for stocks lying with third parties. Forstocks lying with third parties at the year-end written confirmations have been obtainedby the management. No material discrepancies were noticed on the aforesaid 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 of customs duty of excise value added tax cess and othermaterial statutory dues as applicable to the appropriate authorities. Further noundisputed amounts payable in respect thereof were outstanding at the year-end for aperiod of more than six months from the 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 (? in lacs) Amount Paid Under Protest (? 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 Appellate and Revisional Board 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
Name of the statute Nature of dues Amount (? in lacs) Amount Paid Under Protest (? in lacs) Period to which the amount relates Forum where dispute is pending
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
West Bengal Sales Tax Act 1994 Sales tax 324.31 Nil 2014-15 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 Sr. Jt. Commissioner (Commercial Taxes) 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 West Bengal Taxation Tribunal
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
The Bengal Excise Act 1909 State excise duty 332.00 Nil 2016-17 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 bankduring the year. The Company has no loans or borrowings payable to a financial institutionor government and no dues payable to debenture-holders 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 oftheAct read withSchedule V to the Act.

(xii) In our opinion the Company is not aNidhi 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 Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable Ind AS.

(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 oftheAct.

(xvi) The company is not required to be registered under Section 45-IAofthe ReserveBank of India Act 1934.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No. 001076N/N500013

per Anamitra Das

Partner

Membership No.:062191

Place: Kolkata

Date: 30 May 2018

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 2018

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 standalone financial statements of IFB AgroIndustries Limited ('the Company') as at and for the year ended 31 March 2018 we haveaudited the internal financial controls over financial reporting ('IFCoFR') of the Companyas at 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 internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issuedby the Institute of Chartered Accountants of 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 the 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 theInstitute of Chartered Accountants of India ('ICAI') and deemed to be prescribed underSection 143(10) of the Act to the extent applicable to an audit of IFCoFR and theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting ('theGuidance Note') issued by the ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate IFCoFR were established and maintained and if suchcontrols operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR includes 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. Acompany's IFCoFR is aprocess designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sIFCoFR include 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 amaterial 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 the IFCoFR may become inadequate 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 controls were operating effectivelyas at 31 March 2018 based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note issuedby the ICAI.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No. 001076N/N500013

per Anamitra Das

Partner

Membership No.: 062191

Place : Kolkata

Date : 30 May 2018