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IFB Industries Ltd.

BSE: 505726 Sector: Consumer
NSE: IFBIND ISIN Code: INE559A01017
BSE 00:00 | 01 Dec 1130.45 -7.60
(-0.67%)
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1132.10

HIGH

1144.60

LOW

1125.95

NSE 00:00 | 01 Dec 1130.25 -9.50
(-0.83%)
OPEN

1125.05

HIGH

1147.55

LOW

1120.40

OPEN 1132.10
PREVIOUS CLOSE 1138.05
VOLUME 398
52-Week high 1458.10
52-Week low 765.10
P/E 83.61
Mkt Cap.(Rs cr) 4,581
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1132.10
CLOSE 1138.05
VOLUME 398
52-Week high 1458.10
52-Week low 765.10
P/E 83.61
Mkt Cap.(Rs cr) 4,581
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

IFB Industries Ltd. (IFBIND) - Auditors Report

Company auditors report

to the Members of IFB INDUSTRIES LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of IFB IndustriesLimited ("the Company") which comprise the Balance Sheet as at 31March 2021and the Statement of Profit and Loss (including Other Comprehensive Loss)the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of a airs of the Company as at 31 March 2021 and its profit totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor’sResponsibility for the Audit of the Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made thereunder and we have fulfi lled our other ethicalresponsibilities in accordance with these requirements and the ICAI’s Code of Ethics.We believe that the audit evidence obtained by us is su cient and appropriate to provide abasis for our audit opinion on the standalone financial statements.

Key Audit Ma ers

Key audit ma ers are those ma ers that in our professional judgment were of mostsignifi cance in our audit of the standalone financial statements of the current period.These ma ers were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these ma ers. We have determined the ma ers described below to be thekey audit ma ers to be communicated in our report.

Key Audit Ma er Auditor’s Response
1 Recognition of Revenue Our audit approach was a combination of test of internal controls and substantive procedures including:
Revenue from the sale of goods (hereina er referred to as "Revenue") is recognised when the Company performs its obligation to its customers and the amount of revenue can be measured reliably and recovery of the consideration is probable. The timing of such recognition is when the control over the same is transferred to the customer which is mainly upon delivery. • Assessing the appropriateness of the Company's revenue recognition accounting policies in line with Ind AS 115 ("Revenue from Contracts with Customers").
The timing of revenue recognition is relevant to the reported performance of the Company. • Evaluating the design and implementation of Company's controls in respect of revenue recognition. Testing the effectiveness of such controls over revenue cut o during the year.
Revenue may be recognised before completion of contractual performance obligation due to incorrect recording of point of time when the customer obtains control of the asset. • Testing the supporting documentation for sales transactions recorded during the period closer to the yearend including customer acknowledgments of receipt of goods on a sample basis.
Refer to 1(B)(c) for the Accounting policy on recognition on revenue. • Testing sales returns subsequent to the year end including examination of credit notes issued a er the yearend to determine whether revenue was recognised in the correct period.
• Rolling out confirmation requests to customers to confirm the recorded yearend balances on a sample basis.

Information Other than the Financial Statements and Auditor’s Report Thereon

• The Company’s Board of Directors is responsible for the other information.The other information comprises the information included in the Director’s reportbut does not include the consolidated financial statements standalone financialstatements and our auditor’s report thereon.

• Our opinion on the standalone financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

• In connection with our audit of the standalone financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

• If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the ma ers stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the Ind ASand other accounting principles generally accepted in India.Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating e ectively for ensuring the accuracy and completeness of the accounting recordsrelevant to the preparation and presentation of the standalone financial statement thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the standalone financial statements management is responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable ma ers related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’sfinancial reporting process.

Auditor’s Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also :

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is su cient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operating eectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management’s use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw a ention in our auditor’s report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be infl uenced.We consider quantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the e ect of any identified misstatements in the standalone financialstatements.

We communicate with those charged with governance regarding among other ma ers theplanned scope and timing of the audit and significant audit findings including anysignificant defi ciencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other ma ers that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the ma ers communicated with those charged with governance we determine those maers that were of most signifi cance in the audit of the standalone financial statements ofthe current period and are therefore the key audit ma ers. We describe these ma ers in ourauditor’s report unless law or regulation precludes public disclosure about the ma eror when in extremely rare circumstances we determine that a ma er should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our auditwe report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompanyso far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveLoss the Cash Flow Statement and Statement of Changes in Equity dealt with by this Reportare in agreement with the relevantbooks of account.

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

e) On the basis of the wri en representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating e ectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodifi ed opinion onthe adequacy and operating e ectiveness of the Company’s internal financial controlsover financial reporting.

g) With respect to the other ma ers to be included in the Auditor’s Report inaccordance with the requirements of section 197(16) of the Act as amended. In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

h) With respect to the other ma ers 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 has disclosed the impact of pending litigations on its financialposition in Note 36 of the standalone financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in "Annexure B" a statement on the ma ers specified in paragraphs 3 and 4of the Order.

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No. 302009E)
Abh it Bandyopadhyay
Place : Kolkata Partner
Date : 14 June 2021 (Membership No. 054785)

ANNEXURE "A" to the Independent Auditor’s Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of IFBIndustries Limited ("the Company") as of 31 March 2021 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the 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 Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating e ectively for ensuring the orderly and e cient conduct of its businessincluding adherence to Company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated e ectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operating eectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating e ectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is su cient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company’s assets that could havea material e ect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating e ectively as at 31 March 2021 based on the criteria forinternal financial control over financial reporting established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No. 302009E)
Abh it Bandyopadhyay
Place : Kolkata Partner
Date : 14 June 2021 (Membership No. 054785)

ANNEXURE "B" to the Independent Auditor’s Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) The property plant and equipment were physically verifi ed during the year by theManagement in accordance with a regular programme of verifi cation which in our opinionprovides for physical verifi cation of all the property plant and equipment at reasonableintervals. According to the information and explanation given to us no materialdiscrepancies were noticed on such verifi cation.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deed/ transfer deed / conveyancedeed provided to us we report that the title deeds comprising all the immovableproperties of land and buildings which are freehold are held in the name of the Companyas at the balance sheet date. In respect of immovable properties of land and buildingsthat have been taken on lease and disclosed as Right- of Use assets in the financialstatements the lease agreements are in the name of the Company where the Company is thelessee in the agreement.

(ii) As explained to us inventories were physically verifi ed during the year by theManagement at reasonable intervals and no material discrepancies were noticed on physicalverifi cation.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposit during the year and had no unclaimed deposits at the beginning of theyear as per the provisions of Sections 73 to 76 or any other relevant provisions of theCompanies Act 2013.

(vi) The maintenance of cost records has been prescribed by the Central Governmentunder section 148(1) of the Companies Act 2013 in respect of specified products of theCompany. For such products we have broadly reviewed the cost records maintained by theCompany pursuant to the Companies (Cost Records and Audit) Rules 2014 as amended andare of the opinion that prima facie the prescribed cost records have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

(vii) According to the information and explanations given to us in respect ofstatutory dues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees’ State Insurance Income-tax Goods &Services Tax Customs Duty Cess and other material statutory dues applicable to it to theappropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident FundEmployees’ State Insurance Income-tax Goods & Services Tax Customs Duty Cessand other material statutory dues in arrears as at 31 March 2021 for a period of morethan six months from the date they became payable.

(c) Details of dues of Income-tax Sales Tax Service Tax Custom Duty Excise Duty andValue Added Tax which have not been deposited as on 31 March 2021 on account of disputesare given below :

Name of Statue Nature of Dues Forum where Dispute is Pending Period to which the amount relates Amount involved net of amount paid under protest Amount Paid under Protest
Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals) AY 2012-13 24.00 -
Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals) AY 2018-19 4206.58
Central Excise Act 1944 Excise Duty Customs Excise and Service Tax Appellate Tribunal (CESTAT) 2004-05 to 2009-10 42.93 6.00
Central Sales Tax Act and Local Sales Tax including trade Assessing o cer 1991-92 to 1994-95 176.00 -
Sales Tax Act tax Assistant Commissioner 2002-03 1.00 -
Additional Commissioner 2008-09 and 2009-10 10.00 -
Commissioner Appeals 2009-10 and 2015-16 - 3.92
Deputy Commissioner (Appeals) 2005-06 2009-10 2010-11 and 2013-15 27.00 0.78
Deputy Commissioner 2013-14 1.00 0.21
Trade Tax Tribunal 1999-2000 2003-05 and 2007-12 24.00 0.47
Joint Commissioner 2006-07 and 2011-13 12.00 8.48
High Court 2009-10 89.00 174.00
Objection Hearing Authority 2009 - 17 56.00 1.00
Appeallate Board 1996-97 10.00 0.42
Commercial Tax Appellate Board 2009-10 89.00 16.25
Sr. Jt. Commissionerate Corporate division 2013-14 2.00 0.32
Appellate Tribunal 2002-03 and 2005-06 9.00 39.92
Supreme Court 2001-03 62.00 82.96
Central Goods & Service Tax GST High Court 2017-18 67.00 -
GST Commissioner Customs 2019-20 72.00 -
Customs Act 1962 Customs duty Additional Director General Directorate of Revenue Intelligence 2008-2012 2.00 -
The Finance Act 1994 Service Tax Assistant Commissioner 2013-2015 3.74 -
Customs Excise and Service Tax Appellate Tribunal (CESTAT) 2005-06 to 2011-12 532.84 -
Deputy / Assistant Commissioner (Appeal) 2012-16 16.00 -

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to financialinstitutions banks and government. The Company has not issued any debentures.

(ix) The Company has not raised moneys by way of initial public o er or further publico er (including debt instruments). In our opinion and according to the information andexplanations given to us the term loans have been applied by the Company during the yearfor the purposes for which they were raised.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company by its o cers oremployees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us theCompany has not paid/provided managerial remuneration in excess of the limits andapprovals prescribed under section 197 read with Schedule V to the Companies Act 2013.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theCARO 2016 Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of CARO 2016 is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or directors of its holding subsidiary or associate company or personsconnected with them and hence provisions of section 192 of the Companies Act 2013 are notapplicable.

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

For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No. 302009E)
Abh it Bandyopadhyay
Place : Kolkata Partner
Date : 14 June 2021 (Membership No. 054785)

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