NIB Agro Industries Limited

Plot No. - IND-S, Sector-l, East Kolkata Township, Kolkata - 700 ¹⁰⁷ Phone : 033-39849675 Website : www.ifbagro.in CIN : L01409W81982pLC034s90

73thluly,202L

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AGRO

The Manager National Stock Exchange of India Ltd Listing Department Exchange Plaza, Sth fl oor Plot No. C/L, G. Block Bandra Kurla Complex, Bandra (EJ Mumbai - 400 051

The Secretary, Bombay Stock Exchange of India Ltd Phiroze f eejebhoy Towers Dalal Street, Mumbai-400001

Stock Code: IFB Agro EQ Scrip ID: 507438

Dear Sir,

sub: Annual Report for the financial year ended 31st March ,202L

we enclose, in terms of Regulations 30 and 34 of the SEBI (Listing obligations and Disclosure RequirementsJ Regulations, 201.5 a copy o{ the Annual Reportf 2020-z0zr) alongwith the Financial statements of the Corp"ny ror the financial year ended 3Lst March, 202I together with the Notice dated L7tr'funl, 2b2L convening the 39th Annual General Meeting of the company scheduled tobe held on Friday, August o,zozt at1.2.45p.M, 0sT) through video conferencing [vcJ / other Audio visuaitvteans (OAVM), in conformity with the regulatory provisions and circulars issued by the Ministry of corporate Affairs, Government of India' The Notice alongwith the Annual Repori is being sent through electronic mode to the Members. Furthei the Annual Report containing the Notice is also available on the Company's website at wvyw.ifbagro.in.

This is for your kind information and records.

Thankingyou,

Yours faithfully For IFB AGRO IND LIMITED

Kt,l

Ri Co Secretary (Enclosed as above)

n BOARD OFDIRECTORS

Chairman Mr. Bijon Nag

Joint Executive Chairman Mr. Bikramjit Nag

Vice Chairman and Managing Director Mr. Arup Kumar Banerjee

Independent Directors Mr. Sudip Kumar Mukherji Mr. Hari Ram Agarwal Mr. Manoj Kumar Vijay Dr. Runu Chakraborty

Non Executive Director Mr. Amitabha Kumar Nag

n CHIEFFINANCIALOFFICER

Mr. Rahul Choudhary

n COMPANYSECRETARY Mr. Ritesh Agarwal

n AUDITORS

B S R & Co. LLP Chartered Accountants

n REGISTERED OFFICE

Plot No. IND-5, Sector-1 East Calcutta Township, Kolkata - 700 107 Tel : (033) Fax No.: (033) 2442 1003 E-mail : [email protected] Website : www.ifbagro.in CIN : L01409WB1982PLC034590 39849675/30575176

n REGISTRAR & SHARE TRANSFER AGENT

(For both Physical & Dematerialised Shares) CB Management Services (P) Ltd. P-22, Bondel Road, Kolkata - 700 019 Tel : (033) 4011 6700/2280 6692/2282 3643/2287 0263 Fax : (033) 4011 6739 E-mail: [email protected] Website : www.cbmsl.com

n WORKS

Noorpur, P.S. Diamond Harbour Dist. : South 24 Parganas West Bengal - 743 368 Panagarh Bud Bud Dist. : Burdwan West Bengal - 713 148 Dankuni Dist. : Hooghly West Bengal - 712 306

Marine Product Processing Plant Plot No. IND-5, Sector-1 East Calcutta Township Kolkata - 700 107

n BANKERS

HDFC Bank Limited ICICI Bank Limited FEDERALBank Limited

Notice	2
Report of Director's & Management Discussion and Analysis Report	13
Report on Corporate Governance	38
Standalone Financial Statements
- Independent Auditor's Report	53
- Balance Sheet	61
- Statement of Profit and Loss	62
- Statement of Cash Flow	63
- Statement of Changes in Equity	65
- Notes to Financial Statements	66
Consolidated Financial Statements
- Independent Auditor's Report	103
- Balance Sheet	110
- Statement of Profit and Loss	111
- Statement of Cash Flow	112
- Statement of Changes in Equity	114
- Notes to Financial Statements	115
Ten Years' Standalone Financial Summary	155

AGRO INDUSTRIES LIMITED

Notice to the Members

Notice is hereby given that the Thirty Ninth Annual General Meeting (AGM) of the members of IFB Agro Industries Limited will be th held on 6 day of August 2021, Friday at 12.45 P.M. (IST) through Video Conferencing / Other Audio Visual Means (VC/OAVM) to transact the following business:-

AS ORDINARYBUSINESS

1. To receive, consider and adopt :
a. Audited Standalone Financial Statements of the Company for the financial year ended 31 March 2021, together with the Reports of the Board of Directors ("the Board") and Auditors thereon; and
b. the Audited Consolidated Financial Statements of the Company for the year ended 31 March 2021 together with the Report of the Auditors thereon.
1. To appoint a Director in place of Mr. Bikramjit Nag (DIN: 00827155), who retires by rotation and, being eligible, offers himself for re- appointment as a Director.

AS SPECIALBUSINESS

To re-appoint Mr. Bikramjit Nag (DIN: 00827155) as Joint Executive Chairman of the Company

To consider and, if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution:

RESOLVED THAT, in accordance with the provisions of Sections 196, 197, 198 and read with Schedule V and all other applicable provisions, if any, of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (including any statutory modification(s) or re-enactment thereof, for the time being in force),approval of the members be and is hereby accorded to re-appoint Mr. Bikramjit Nag (DIN: 00827155) as Joint Executive Chairman for a further period of three years, on expiry of his present term of office, i.e with effect from 26 January 2022, liable to retire by rotation on such terms and conditions as set out in the explanatory statement annexed to the notice convening this Annual General Meeting, with the liberty to the Board of Directors/its Committees to alter and vary the terms and conditions of the said re-appointment and/or valuation in remuneration in such manner as may be agreed to by and between the Board of Directors/Committee and Mr. Bikramjit Nag subject to the same not exceeding the limits specified under Schedule V to the Companies Act, 2013 or any statutory modification or re-enactment for the time being in force." "

RESOLVED FURTHER THAT the Board of Directors of the Company (including its Committee thereof) and / or Company Secretary/Chief Financial Officer of the Company, be and are hereby authorised to do all such acts, deeds, matters and things as may be considered necessary, desirable or expedient to give effect to this resolution." "

By the Order of the Board

Registered Office: Plot No. IND-5, Sector - 1 East Calcutta Township, Kolkata - 700 107 Ritesh Agarwal CIN: L01409WB1982PLC034590 Company Secretary Email: [email protected] (ACS 17266) Website: www.ifbagro.in Date: 17 June 2021

NOTES:

In view of the continuing COVID-19 pandemic, the Ministry of Corporate Affairs ("MCA") has vide its circular dated 5 May 2020 read with circulars dated 8 April 2020, 13 April 2020 and 13 January 2021 (collectively referred to as "MCA Circulars") and SEBI vide its circular dated 12 May 2020 and 15 January 2021 in relation to "Relaxation from compliance with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") due to the COVID -19 pandemic" (collectively referred to as "SEBI Circulars") permitted the holding of the Annual General Meeting ("AGM") through VC / OAVM, without the physical presence of the Members at a common venue. In compliance with the

2 th 39 Annual Report 2020-21 provisions of the Companies Act, 2013 ("Act"), SEBI Listing Regulations and MCACirculars, the AGM of the Company is being held through Video Conferencing / Other Audio-Visual Means (VC/OAVM). The registered office of the Company shall be deemed to be the venue for the AGM.

1. Relevant details, pursuant to Regulation 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") and Secretarial Standard on General Meetings issued by the Institute of Company Secretaries of India, in respect of the Director seeking re-appointment at this AGM is also annexed to this Notice.
1. Pursuant to the provisions of the Act, a Member entitled to attend and vote at the AGM is entitled to appoint a proxy to attend and vote on his/her behalf and the proxy need not be a Member of the Company. Since this AGM is being held through VC / OAVM, the facility for appointment of proxies by the Members will not be available for this AGM and hence the Proxy Form, Attendance Slip and Route Map are not annexed to this Notice. The Register of members & Share Transfer Books will remain closed from Saturday 31 July 2021 to Friday 6 August 2021 (both days inclusive).
1. Institutional / Corporate Shareholders (i.e., other than individuals / HUF, NRI, etc.) are required to send a scanned copy (PDF/JPG Format) of their respective Board or governing body Resolution/Authorization etc., authorizing their representative to attend the AGM through VC / OAVM on their behalf and to vote through remote e-voting. The said Resolution/Authorization shall be sent to the Scrutinizer by email through its registered email address to [email protected] with a copy marked to [email protected].
1. As per Regulation 40 of SEBI Listing Regulations, as amended, securities of listed companies can be transferred only in dematerialized form with effect from, 1 April 2019, except in case of request received for transmission or transposition and relodged transfers of securities. Further, SEBI vide its circular no. SEBI/HO/MIRSD/RTAMB/ CIR/P/2020/236 dated December 2, 2020 had fixed 31 March 2021 as the cut-off date for re-lodgment of transfer deeds and the shares that are re-lodged for transfer shall be issued only in demat mode. In view of this and to eliminate all risks associated with physical shares and for ease of portfolio management, members holding shares in physical form are requested to consider converting their holdings to dematerialized form. Members can contact the Company's Registrars and Transfer Agents i.e., CB Management Services (P) Ltd ("CBMSL") or can email at [email protected] for their assistance in this regard.
1. Members are requested to intimate changes, if any, pertaining to their name, postal address, email address, telephone/ mobile numbers, Permanent Account Number (PAN), mandates, nominations, power of attorney, bank details such as, name of the bank and branch details, bank account number, MICR code, IFSC code, etc., to their DPs in case the shares are held by them in electronic form and to CBMSLin case the shares are held by them in physical form.
1. In case of Joint holders, there will be one vote for every Client ID / registered folio number irrespective of the number of joint holders.
1. Members seeking any information with regard to the accounts or any matter to be placed at the AGM, are requested to write to the Company on or before 2 August 2021 through email to [email protected]. The same will be replied by the Company suitably.
1. In compliance with the aforesaid MCACirculars and SEBI Circulars, Notice of the AGM along with the Annual Report 2020-21 is being sent through electronic mode to those Members whose email addresses are registered with the Company/ Depositories. Members may note that the Notice and Annual Report 2020-21 will also be available on the Company's website http://www.ifbagro.in, websites of the Stock Exchanges i.e. BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia.com respectively, and on the website of NSDLhttps://www.evoting.nsdl.com.
1. Members attending the AGM through VC / OAVM shall be counted for the purpose of reckoning the quorum under Section 103 of the Act.
1. Explanatory Statement, pursuant to Section 102 of the Companies Act, 2013 ('the Act'), relating to the Special Business to be transacted at this Annual General Meeting ('AGM'), is annexed.
1. All documents referred to in the Notice and the Explanatory Statement shall be made available for on-line inspection by the Members of the Company, without payment of fees upto and including the date of AGM. Members desirous of inspecting the same may send their requests at [email protected] with a copy marked to [email protected] from their registered e-mail addresses mentioning their names and folio numbers / demat account numbers.
1. During the AGM, the Register of Directors and Key Managerial Personnel and their shareholding maintained under Section 170 of the Act and the Register of Contracts or arrangements in which Directors are interested maintained under Section 189 of the Companies Act, shall be made available for on-line inspection upon login at NSDLe-Voting system at www.evoting.nsdl.com.
1. Instructions for e-voting and joining the AGM are as follows:

a. VOTING THROUGH ELECTRONIC MEANS

i. In compliance with section 108 of the Companies Act, 2013, Rule 20 of the Companies (Management and Administration) Rules 2014, substituted by Companies (Management and Administration) Amendment Rules 2015 and Regulation 44 of SEBI (Listing Obligations & Disclosure Requirements) Regulation, 2015, and in terms of SEBI vide circular no. SEBI/HO/CFD/CMD/ CIR/P/2020/242 dated December 9, 2020 in relation to e-Voting Facility Provided by Listed Entities, the Members are provided with the facility to cast their vote electronically, through the e-Voting services provided by NSDL, on all the resolutions set forth in this Notice.
ii. The remote e-voting will commence on Tuesday, 3 August 2021 at 9:00 AM (IST) and will end on Thursday, 5 August 2021 at 5:00 PM (IST). During this period, members of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date of 30 July 2021, may cast their vote by remote e-voting. The remote evoting module shall be disabled by NSDL for voting thereafter. Those Members, who will be present in the AGM through VC / OAVM facility and have not cast their vote on the Resolutions through remote e-voting and are otherwise not barred from doing so, shall be eligible to vote through e-voting system during the AGM.

Any person holding shares in physical form and non-individual shareholders, who acquires shares of the Company and becomes a Member of the Company after sending of the Notice and holding shares as of the cut-off date, may obtain the login ID and password by sending a request at [email protected]. If the member forgets the password, the member can reset his password by using "Forgot User Details/Password" or "Physical User Reset Password" option available on hyperlink "http://www.evoting.nsdl.com" www.evoting.nsdl.com or call on toll free no. 1800 1020 990 and 1800 22 44 30. However, if he / she is already registered with NSDL for remote e-Voting then he /she can use his / her existing User ID and password for casting the vote. In case of Individual Shareholders holding securities in demat mode and who acquires shares of the Company and becomes a Member of the Company after sending of the Notice and holding shares as of the cut-off date may follow steps of remote e-voting as mentioned below under.

iii. The process and manner for remote e-voting are as under:

How do I vote electronically using NSDLe-Voting system?

The way to vote electronically on NSDLe-Voting system consists of "Two Steps" which are mentioned below:-

Step 1: Access to NSDLe-Voting system

Step 2: Cast your vote electronically and join virtual meeting on NSDLe-Voting system.

Details on Step 1 are mentioned below:

A. Login method for e-Voting and joining virtual meeting for Individual Shareholders holding securities in demat mode.

Pursuant to SEBI circular no. SEBI/HO/ CFD/CMD/CIR/P/2020/242 dated 9 December 2020 on "e-Voting facility provided by Listed Companies", Individual shareholders holding securities in demat mode are allowed to vote through their demat account maintained with Depositories and Depository Participants. Shareholders are advised to update their mobile number and e-mail ID with their DPs in order to access e-Voting facility.

Type of Shareholders	Login Method
Individual Shareholders holding securities in demat	A. NSDLIDeAS facility If you are already registered, follow the below steps:
mode with NSDL	1. Visit the e-Services website of NSDL. Open web browser by typing the following URL: https://eservices.nsdl.com/ either on a Personal Computer or on a mobile.

Type of Shareholders	Login Method
Individual Shareholders holding securities in demat mode with NSDL	2. Once the home page of e-Services is launched, click on the "Beneficial Owner" icon under "Login" which is available under "IDeAS" section.
	3. A new screen will open. You will have to enter your User ID and Password. After successful authentication, you will be able to see e-Voting services.
	4. Click on "Access to e-Voting" appearing on the left hand side under e-Voting services and you will be able to see e-Voting page.
	5. Click on options available against company name or e-Voting service provider - NSDL and you will be re-directed to NSDL e-Voting website for casting your vote during the remote e Voting period or joining virtual meeting and e-Voting during the meeting.
	If you are not registered, follow the below steps:
	1. Option to register is available at https://eservices.nsdl.com.
	2. Select "Register Online for IDeAS" Portal or click at https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp.
	3. Please follow steps given in points 1-5 of Pt. A.
	B. e-Voting website of NSDL
	1. Open web browser by typing the following URL: https://www.evoting.nsdl.com/ either on a personal computer or on a mobile phone.
	2. Once the home page of e-Voting system is launched, click on the icon "Login" which is available under 'Shareholder/ Member'section.
	3. A new screen will open. You will have to enter your User ID (i.e. your sixteen digit demat account number held with NSDL), Password / OTPand a Verification Code as shown on the screen.
	4. After successful authentication, you will be redirected to NSDL website wherein you can see e-Voting page. Click on options available against company name or e-Voting service provider - NSDLand you will be redirected to e-Voting website of NSDL for casting your vote during the remote e-Voting period or joining virtual meeting and e-Voting during the meeting.

Type of Shareholders	Login Method
Individual Shareholders holding securities in demat mode with CDSL	1. Existing users who have opted for Easi / Easiest, can login through their user id and password. Option will be made available to reach e-Voting page without any further authentication. The URL for users to login to Easi/Easiest are https://web.cdslindia.com/myeasi/home/login or www.cdslindia.com and click on New System Myeasi.
	2. After successful login of Easi / Easiest the user will be also able to see the e Voting Menu. The Menu will have links of e-Voting service provider i.e., NSDLportal. Click on NSDLto cast your vote.
	3. If the user is not registered for Easi/Easiest, option to register is available at https: //web.cdslindia.com/myeasi/Registration / Easi Registration.
	Alternatively, the user can directly access e-Voting page by providing demat Account Number and PAN from a link in www.cdslindia.com home page. The system will authenticate the user by sending OTP on registered Mobile and e-mail as recorded in the demat Account. After successful authentication, user will be provided links for the respective e-Voting service provider i.e. NSDLwhere the e-Voting is in progress.
Individual Shareholders (holding securities in	1. You can also login using the login credentials of your demat account through your DPregistered with NSDL/ CDSLfor e-Voting facility.
demat mode) logging through their depository participants	2. Once logged-in, you will be able to see e-Voting option. Once you click on e-Voting option, you will be redirected to NSDL / CDSL Depository site after successful authentication, wherein you can see e-Voting feature.
	3. Click on options available against company name or e-Voting service provider - NSDL and you will be redirected to e-Voting website of NSDL for casting your vote during the remote e-Voting period or joining virtual meeting and e-Voting during the meeting.

Important note: Members who are unable to retrieve User ID / Password are advised to use Forgot User ID and Forgot Password option available at respective websites.

Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through Depository i.e. NSDLand CDSL.

Login type	Helpdesk details
For securities held with NSDL.	Members may please contact NSDL helpdesk by sending a request at [email protected] or call at toll free no.: 1800 1020 990 and 1800 22 44 30
For securities held with CDSL.	Members may please contact CDSL helpdesk by sending a request at [email protected] or contact at 022-23058738 or 022- 23058542-43

B. Login method for e-Voting and joining virtual meeting for shareholders other than individual shareholders holding securities in demat mode and shareholders holding securities in physical mode.

How to Log-in to NSDLe-Voting website?

1. Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting. nsdl.com/ . either on a personal computer or laptop
1. Once the home page of e-Voting system is launched, click on the icon "Login" which is available under 'Shareholders/Members'section.
A new screen will open. You will have to enter your User ID, your Password and a Verification Code as shown on the screen.

Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https://eservices.nsdl.com/ with your existing IDEAS login. Once you log-in to NSDLeservices after using your log-in credentials, click on e-Voting and you can proceed to Step 2 i.e. cast your vote electronically.

Your User ID details will be as per details given below :

Manner of holding shares i.e. Demat ( NSDLor CDSL) or Physical	Your User ID is:
a) For Members who hold shares in demat account with NSDL	8 Character DPID followed by 8 Digit Client ID (For example if your DP ID is IN300 and Client ID is 12 then your user ID is IN30012**
b) For Members who hold shares in demat account with CDSL	16 Digit Beneficiary ID (For example if your Beneficiary ID is 12 then your user ID is 12
c) For Members holding shares in Physical Form	EVEN Number followed by Folio Number registered with the company (For example if folio number is 001 and EVEN is 101456 then user ID is 101456001

1. Password details are given below:
a. If you are already registered for e-Voting, then you can use your existing password to login and cast your vote.
b. If you are using NSDLe-Voting system for the first time, you will need to retrieve the 'initial password'which was communicated to you. Once you retrieve your 'initial password', you need enter the 'initial password' and the system will force you to change your password.
c. How to retrieve your 'initial password'?
i. If your email ID is registered in your demat account or with the company, your 'initial password' is communicated to you on your email ID. Trace the email sent to you from NSDLfrom your mailbox. Open the email and open the attachment i.e. a .pdf file. Open the .pdf file. The password to open the .pdf file is your 8 digit client ID for NSDLaccount, last 8 digits of client ID for CDSLaccount or folio number for shares held in physical form. The .pdf file contains your 'User ID'and your 'initial password'.
ii. In case you have not registered your email address with the Company/ Depository, please follow instructions mentioned below in this notice.
1. If you are unable to retrieve or have not received the "Initial password" or have forgotten your password:
a. Click on "Forgot User Details/Password?" (If you are holding shares in your demat account with NSDL or CDSL) option available on www.evoting.nsdl.com.
b. "Physical User Reset Password?" (If you are holding shares in physical mode) option available on www.evoting.nsdl.com.
c. If you are still unable to get the password by aforesaid two options, you can send a request at [email protected] mentioning your demat account number/folio number, your PAN, your name and your registered address.
d. Members can also use the OTP(One Time Password) based login for casting the votes on the e-Voting system of NSDL.
1. After entering your password, click on agree to "Terms and Conditions" by selecting on the check box.
1. Now, you will have to click on "Login" button.
1. After you click on the "Login" button, Home page of e-Voting will open.

Step 2: Cast your vote electronically and join Virtual Meeting on NSDLe-Voting system.

How to cast your vote electronically on NSDLe-Voting system?

1. After successful login at Step 1, you will be able to see the Home page of e-Voting. Click on e-Voting. Then, click on Active Voting Cycles.
1. After click on Active Voting Cycles, you will be able to see all the companies "EVEN" in which you are holding shares and whose voting cycle and General Meeting is in active status.
1. Select "EVEN 116283" of the Company. For joining virtual meeting, you need to click on "VC/OAVM" link placed under "Join General Meeting".
1. Now you are ready for e-Voting as the Voting page opens.
1. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number of shares for which you wish to cast your vote and click on "Submit" and also "Confirm" when prompted.
1. Upon confirmation, the message "Vote cast successfully" will be displayed.
1. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page.
1. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.

General Guidelines for shareholders

1. Institutional / Corporate shareholders (i.e. other than individuals, HUF, NRI, etc.) are required to send a scanned copy (PDF/JPG Format) of the relevant Board Resolution/ Authority letter etc., with attested specimen signature of the duly authorized signatory(ies) who are authorized to vote, to the Scrutinizer by email to [email protected] with a copy marked to [email protected].
1. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential. Login to the e-voting website will be disabled upon five unsuccessful attempts to key in the correct password. In such an event, you will need to go through the "Forgot User Details/Password?" or "Physical User Reset Password?" option available on https://www.evoting.nsdl.com to reset the password.
1. In case of any queries relating to e-voting you may refer to the FAQs for Shareholders and e-voting user manual for Shareholders available at the download section of https://www.evoting.nsdl.com or call on toll free no.: 1800-222-990 or send a request at [email protected].

Process for registration of email id for obtaining Annual Report and user id/password for e-voting

1. Physical Holding : In case shares are held in physical mode may please send a request to the Registrar and Transfer Agent of the Company at [email protected] providing Folio No., Name of shareholder, scanned copy of the share certificate (front and back), PAN (self-attested scanned copy of PAN card), AADHAR (self-attested scanned copy of Aadhar Card) for registering email address.
1. Demat Holding : In case shares are held in demat mode, please provide DPID-CLID (16 digit DPID + CLID or 16 digit beneficiary ID), Name, client master or copy of Consolidated Account statement, PAN (self-attested scanned copy of PAN card), AADHAR (self-attested scanned copy of Aadhar Card) to [email protected]
1. Alternatively member may send an e-mail request to [email protected] for obtaining User ID and Password by proving the details mentioned in Point (1) or (2) as the case may be.

INSTRUCTIONS FOR MEMBERS FOR ATTENDING THE AGM THROUGH VC / OAVM ARE AS UNDER:

Members will be able to attend the AGM through VC / OAVM or view the live webcast of AGM provided by NSDL at https://www.evoting.nsdl.com by using their remote e-voting login credentials and selecting the EVEN for Company's AGM. Members may access by following the steps mentioned above for Access to NSDL e-Voting system. After successful login, you can see link of "VC/OAVM link" placed under "Join General meeting" menu against company name. You are requested to click on VC/OAVM link placed under Join General Meeting menu. The link for VC/OAVM will be available in Shareholder/Member login where the EVEN of Company will be displayed. Members who do not have the User ID and Password for e-Voting or have forgotten the User ID and Password may retrieve the same by following the remote e-Voting instructions mentioned in the notice.
1. Members who do not have the User ID and Password for e-voting or have forgotten the User ID and Password may retrieve the same by following the remote e-voting instructions mentioned in the Notice. Further Members can also use the OTPbased login for logging into the e-voting system of NSDL.
1. The Members can join the AGM through the VC/OAVM mode 30 minutes before the scheduled time of commencement of the Meeting by following the procedure mentioned later in the Notice and will be closed on expiry of 15 minutes from the schedule time of the AGM. The facility of participation at the AGM through VC or OAVM will be made available for 1000 members on first come first serve basis. This will not include large Shareholders (Shareholders holding 2% or more shareholding), Promoters, Institutional Investors, Directors, Key Managerial Personnel, Chairpersons of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee, Auditors, Scrutinizer and others who are allowed to attend the AGM without restriction on account of first come first serve basis.
1. Members who need assistance before or during the AGM, can contact NSDLon [email protected]/ 1800-222-990 or contact Mr. Amit Vishal, Senior Manager – NSDL at [email protected]/ 022-24994360/ +91 9920264780 or Mr. Sagar Ghosalkar, Assistant Manager- NSDLat [email protected]/ 022-24994553/ +91 9326781467.
1. Members who would like to express their views or ask questions during the AGM may register themselves as a speaker by sending their request from their registered email address mentioning their name, DPID and Client ID/folio number, PAN, mobile number at [email protected] latest by 2 August 2021 (5:00 p.m. IST). Those Members who have registered themselves as a speaker will only be allowed to express their views/ask questions during the AGM. The Company reserves the right to restrict the number of speakers depending on the availability of time for the AGM. Each Speaker is requested to express his / her views within 2 – 3 minutes of the allotted time. When a pre-registered speaker is invited to speak at the meeting but he / she does not respond, the next speaker will be invited to speak.
1. Please note that Members connecting from Mobile Devices or Tablets or through Laptop connecting via Mobile Hotspot may experience Audio/Video loss due to fluctuation in their respective network.

It is therefore recommended to use stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches. Infrastructure, connectivity and speed available at the Speaker's location are essential to ensure smooth interaction.

Other Instructions

1. Mr. S K Patnaik, Practicing Company Secretary (Membership No. FCS 5699) Partner of M/s. Patnaik & Patnaik, Company Secretaries has been appointed by the Board of Directors as the Scrutinizer for providing facility to the members of the Company, to scrutinize the remote e-voting process in a fair and transparent manner.
1. The Scrutinizer shall, immediately after the conclusion of voting at the AGM, first count the votes cast during the AGM, thereafter unblock the votes cast through remote e-voting and prepare, not later than 2 working days of conclusion of the AGM, a consolidated Scrutinizer's Report of the total votes cast in favour or against, if any, to the Chairman or a person authorised by him in writing, who shall countersign the same.
1. The result declared along with the Scrutinizer's Report shall be placed on the Company's website www.ifbagro.in and on the website of NSDL https://www.evoting.nsdl.com immediately after the declaration of the results by the Chairman or person authorized by him in writing. The Company shall simultaneously forward the results to National Stock Exchange of India Limited and BSE Limited, where the shares of the Company are listed.
1. Subject to receipt of requisite number of votes, the resolutions proposed in the notice shall be deemed to be passed on the date of the meeting itself, i.e. 6 August 2021.

By the Order of the Board

th 39 Annual Report 2020-21

Statement Pursuant to Section 102(1) of the Companies Act, 2013

As required under Section 102(1) of the Companies Act, 2013 ('The Act'), the following explanatory statement set out all material facts relating to the business mentioned under item no. 3 of the accompanying Notice dated 17 June 2021.

ITEM NO 3

Mr. Bikramjit Nag, BBA from Richmond College, U.K. was appointed as Director of the Company on 14 October 1997. He has more than 25 years of experience in the field of Marketing and Business Management. He has made several significant contributions to the Company's growth and implementation of investment plans and business strategies. His contributions have been invaluable.

Mr. Bikramjit Nag was appointed as the Executive Director of the Company at the Nineteenth Annual General Meeting held on 31August 2001, for a period of three years with effect from 27 January 2001, which was further renewed from time to time. He was appointed as Joint Executive Chairman at the Annual General Meeting of the Company held on 26 July 2013 and reappointed at the AGM held on 31 July 2015 and 27 July, 2018.

The existing term of Mr. Nag will expire on 25 January 2022. The Board of Directors in its meeting held on 17 June 2021, considered the recommendations of the Nomination and Remuneration Committee, and re-appointed Mr. Bikramjit Nag (subject to the approval of members in the ensuing Annual General Meeting) as Joint Executive Chairman for a further period of 3 years with effect from 26 January 2022. He is liable to retire by rotation. The terms and conditions of the re-appointment including remuneration payable to Mr. Bikramjit Nag are:

1. Period of Appointment : Three years effective from 26 January 2022.
1. Remuneration :
a) Salary: ` 3,20,000/- (Rupees Three Lakhs Twenty Thousand only) per month
b) HRA: ` 1,60,000/- (Rupees One lakh Sixty Thousand only) per month
c) Other Allowance: ` 1,55,195/- (Rupees One Lakh Fifty Five Thousand One Hundred Ninety Five only) per month
d) Perquisites: Classified into three categories as under:

Part A

i) Medical Reimbursement: At actuals in India and Overseas.
ii) Leave Travel Allowance: For self and family once in a year incurred in accordance with the Rules of the Company.
iii) Insurance: As per the rules of the Company.
iv) Club Fees: Fees of Clubs subject to a maximum of two clubs. This will not include admission and life membership fees.

Part B

i) Gratuity as per the rules of the Company.
ii) Contribution to the Provident Fund, Superannuation Fund or Annuity Fund as per the rules of the Company.
iii) Leave encashment as per the rules of the Company.

Part C

` i) Car: Provision of car for use on Company's Business will not be considered as perquisite. However, use of car for private purpose will be billed by the Company to Mr. Bikramjit Nag.
ii) Telephone: Company will reimburse expenses in connection with telephone at residence & mobile connections used for official purposes as per the rules of the Company.
e) Commission: In addition to Salary, Perquisites and other allowances, one percent commission based on the Net Profits of the Company computed in the manner laid down in section 198 of the Companies Act, 2013, or any statutory modification(s) or enactment thereof.

Explanation: For the purpose of this part, `family' means the spouse, the dependent children and dependent parents.

Apart from the aforesaid remuneration, he will be entitled to reimbursement of all expenses incurred in connection with the business of the Company.

The appointee shall not be entitled to any sitting fees for Board / Committee meetings.

The said perquisites and allowances shall be evaluated, wherever applicable, as per the provisions of Income Tax Act,1961 or any rules thereunder or any statutory modifications or re-enactment thereof; and in the absence of any such rules, perquisite and allowances shall be evaluated at actual cost. The Company's contribution to Provident Fund, Superannuation or Annuity Fund, to the extent these singly or together are not taxable under the Income Tax law, gratuity payable and encashment of leave shall not be included for the purpose of computation of the overall ceiling of remuneration.

The terms and conditions of the said appointment and / or agreement are subject to provisions of Sections 196, 197 and other applicable provisions if any, of the Companies Act, 2013 ("The Act") read with Schedule V to the Act and the Companies (Appointment and Remunerations of Managerial Personnel) Rules, 2014 including any statutory modifications or enactments thereof from time to time and may be altered and varied from time to time by the Board/ Committee as it may in its discretion deem fit within the maximum amount of remuneration payable in accordance with the applicable rules and regulations.

Mr. Bikramjit Nag is not disqualified from being appointed as a Director in terms of Section 164 of the Act, nor debarred from holding the office of director by virtue of any SEBI order or any other such authority and has given his consent for the said appointment.

The detail of other Directorship and memberships in other companies/committees of Mr. Bikramjit Nag are provided in the "Annexure" to the Notice. Mr. Nag holds 1,000 shares in the Company.

The above may be treated as an abstract of the terms of contract between the Company and Mr. Bikramjit Nag.

No Director, Key Managerial Personnel or their relatives, except Mr. Bikramjit Nag in his personal capacity and Mr. Bijon Nag being the relative of Mr. Bikramjit Nag is concerned or interested, financially or otherwise, in the proposed resolution as set out in item No.3 of the Notice.

The Board recommends the resolution under Item No. 3 for approval of the members as an Ordinary Resolution.

By the Order of the Board

Registered Office: Plot No. IND-5, Sector - 1 East Calcutta Township, Kolkata - 700 107 Ritesh Agarwal CIN: L01409WB1982PLC034590 Company Secretary Email: [email protected] (ACS 17266) Website: www.ifbagro.in Date: 17 June 2021

11 th 39 Annual Report 2020-21

Details of the Director seeking appointment/ reappointment in Annual General Meeting (in pursuance of Clause 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Name of Director	Mr. Bikramjit Nag
Date of birth	27.09.1973
Nationality	Indian
Date of first appointment on the board	14.10.1997
Qualification	BBA from Richmond College, U.K
Experience in functional area	More than 25 years of enriched experienced in Marketing and Business Management.
Relationship with other Directors	He is related to Mr. Bijon Nag, Chairman and not related to any other Directors.
Shareholding in the Company	1000
List of directorship held in other listed companies	IFB Industries Limited
Committee membership in other listed companies	NIL

Report of the Directors' & Management Discussion and Analysis Report

To the Members,

The Directors have pleasure in presenting before you the Thirty Ninth Annual Report of the Company together with the Audited st Financial Statements for the financial year ended 31 March, 2021.

Financial Results & Performance Review

The financial results for the year and for the previous year are summarized below:

				(` in Lakhs)
	Standalone		Consolidated
Particulars	Year Ended 31.3.2021	Year Ended 31.3.2020	Year Ended 31.3.2021	Year Ended 31.3.2020
Revenue from Operations (Gross)	169,345	188,842	170,126	191,146
Less: Excise Duty	99,973	92,566	99,973	92,566
Revenue from Operations (Net)	69,372	96,276	70,153	98,580
Other Income	1,631	1,121	1,686	1148
Total Revenue	71,003	97,397	71,839	99,728
Profits prior to finance charges and depreciation (EBITDA)	7,270	3,752	7,220	3637
Less: Finance Charges	7	178	17	188
Depreciation & Amortisation	1482	1,770	1,484	1772
Profit Before Tax	5781	1,804	5,719	1677
Less: Tax Expenses	1081	(542)	1081	(542)
Profit After Tax	4,700	2,346	4,638	2219
Other Comprehensive Income	1,659	(1,038)	1,665	(1046)
Total Comprehensive Income	6,359	1,308	6303	1173

Consolidated figures includes standalone figures and figures of IFB Agro Marine FZE, the wholly owned Subsidiary.

Standalone

During the year under review your Company has recorded net operational revenue of 69,372 lakhs (as against96,276 lakhs in 2019- 2020) recording a decrease of 28% compared to previous year.

Operational profit (EBITDA) increased to 7,270 lakhs in 2020-21 (as against3,752 lakhs in 2019-20), an increase of 94% as compared to the previous year.

Your Company has achieved a profit before tax of 5,781 lakhs (as against1,804 lakhs in 2019-20) and net profit of 4,700 lakhs (as against2,346 lakhs in 2019-20).

Consolidated

Net Revenue from Operations on consolidated basis reduced by 29% to 70,153 lakhs. Profit before depreciation, finance cost and tax on consolidated basis as compared to last year grew by 98% to7,220 lakhs.

During the year under review, India Ratings and Research (IND-Ra) has maintained your Company's Long Term issuer rating to 'IND A+'.

Your Company operates in two segments: (1) Spirit, Spirituous Beverages and allied products and (2) Marine Products.

Spirit, Liquor and Spirituous Beverages:

Financial year 2020-21 was a globally challenging year due to COVID-19 pandemic. For the company it became all the more challenging due to Amphan Cyclone (in May 2020) and constant Excise issues which we view to be illegal. Distillery could operate only 11 days during the first quarter of the financial year with 50% capacity. Cyclone and local disturbance also impacted the operations of distillery. baseless and

The Company's proposed capacity expansion plan for the distillery from 110 KLper day to 170 KLper day was progressing well before the second wave of COVID-19, wherein lockdown was imposed and the supply of oxygen was restricted. This will delay the project completion timeline.

Indian Made Indian Liquor (IMIL) business was also affected during the year due to lockdown in the first quarter of the financial year and also got impacted as Excise authorities created hindrance to the business for not adhering to their illegal demands, by adopting various unethical steps like (a) closure of Dankuni plant for 9 days in June 2020 on alleged quality issues, which ultimately turned to be baseless, (b) closure of all tie up units for 25 days in November 2020, (c ) non re-registration of the Company's flagship brand "Captain" almost for a month in November 2020, (d) putting restriction on retailers in the various district, on lifting of the Company's product. The Company intimated to the stock exchanges that the Alcohol business of the Company was suffering and under threat due to issues stated above. Representations were also made to Hon'ble Chief Minister and also to Hon'ble State Finance, Industry & Commerce Minister.

The business continues to face stiff competition due to excess capacity created by the new bottling plants in West Bengal. Revenue for the year declined by 11% along with the market share . To increase its distribution and geographical reach, the company entered into some tie-up operations with other bottling plants, who have spare capacity and have agreed to produce for the Company on contract basis. due to reasons explained above

Marine Products:

Marine exports registered a revenue de-growth of 53% due to lower demand in export market as hotels, restaurants in the exporting countries being significantly closed due to pandemic. Company will focus to improve margins by strengthening its marketing by adding new . supply destinations, reducing overhead and by increasing overall efficiency

Marine aqua feed business could not register any growth during the year under review due to restrictive credit policy adopted by the Company due to timid market conditions. Operating margins declined due to lower sales. The company is focusing on direct sales to farmers through its retail aqua shop chain "Aquashop".

Marine domestic food business was also impacted as demand from hotels and restaurant have declined significantly. Company is focusing more on online and e-commerce sale to maintain its revenue and margins. The Company continues to invest in this business in terms of product innovation, marketing and infrastructure.

Your Company incorporated a Wholly Owned Subsidiary in the name and style of IFB Agro Marine (FZE), a limited liability Company in the Sharjah Airport International Free Zone, Sharjah, United Arab Emirates on 20th April, 2017. It was the fourth year of operation for the company. Efforts are being made to strengthen the trading operation in international market. The revenue got impacted during the year due to COVID-19, most of the hotels and restaurant were closed in the international market. However, with strict control on overheads etc., the loss for the year has been restricted to Rs. 62 Lakhs as against Rs. 130 Lakhs in 2019-20.

OUTLOOK, OPPORTUNITIES, THREATS AND CONCERNS

The current financial year will be a year of challenges for both the domestic and export business. Pursuant to the imposition of State th lockdown due to COVID, the Company had to suspend/reduce all its operations from 16 May, 2021. Revenues of the Company will get impacted during the month of May and June 2021 due to closure of IMIL plants and lower capacity utilization at distillery and Marine Plants due to social distancing norms after the resumption of operation.

The YAASH Cyclone has damaged the shrimp crop in West Bengal and this will lead to lower availability of shrimp for processing and export. The export market during the year will be tough due to restrictions in hotels and restaurants in many countries.

Growth in the Aqua feed business will be affected due to the competition and restrictive credit being allowed by the Company in the market. The focus of the company will be to try and sale direct to farmers from its aqua shops under cash and carry model. During the year 2020-2021 the Company has also launched its own branded Fish & Prawn feed in the name of "Nutrisigma" and "Nutrafeed" respectively in the market on pilot project basis.

Your Company will focus on margin improvement plans across the verticals through better procurement of its key raw materials like broken rice, shrimps etc.

During 2021-22, efforts will be to ensure improved margins and better returns on capital employed. The company is focused on its resource allocation and is looking for expansion by way of capex light model.

Your Company is continuing its efforts to attain further efficiencies by process/technological improvements, reduction of wastages and optimal use of human resources in all the divisions.

RISK MANAGEMENT

The Board has adopted a risk management policy whereby a proper framework is set up to identify, evaluate business risks and threats. This framework seeks to create transparency, minimize adverse impact on the business objectives and enhance the Company's competitive advantage.

Appropriate structures are in place to proactively monitor and manage the inherent risks in businesses with unique/ relatively high risk profiles.

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIALSTATEMENTS RELATE AND THE DATE OFTHE REPORT

No material changes and commitments have occurred after the close of the financial year till the date of this report, which affect the financial position of the Company. In view of the lockdown restrictions imposed on the State of West Bengal vide circular no 647- ISS/2M-22/2020 dated 15 May 2021due to steady surge in the number of COVID cases in the State of West Bengal consequent to the onslaught of the second wave of the COVID-19 pandemic, the revenue of the Company was substantially effected, however the Company is optimistic to restore its business once the lockdown is lifted and the overall scenario normalizes.

SIGNIFICANTCHANGES IN KEYFINANCIALRATIOS

There were significant changes in certain key financial ratios of the Company that have changed more than 25% over previous year. Debtors turnover ratio has declined (FY 20-21: 22.46 Vs FY 19-20: 12.65) as debtors in Alcohol business has gone up during the year end. Operating margin (FY20-21: 4% Vs FY20-21: 2%) and Net profit margin (FY20-21: 2.75 % Vs FY19-20: 1.24%) mainly due to lower input cost.

SIGNIFICANTAND MATERIALORDERS PASSED BYTHE REGULATORS OR COURTS

There were no significant and material orders passed by the Regulators/ Courts/ Tribunals which would impact the going concerns status of the Company and its future operations.

DIVIDEND

In order to conserve resources for the further expansion and working capital requirements, your Directors have decided not to recommend any dividend for the financial year under review.

TRANSFER TO RESERVE

The Company does not propose to transfer any amount to Reserve.

NUMBER OF BOARD MEETINGS

st During the year ended 31 March, 2021, Four meetings of the Board were held. For details of meetings of the Board, please refer to the Report on Corporate Governance, which forms part of this report.

ANNUALRETURN

Pursuant to Section 92 (3) of the Companies Act, 2013 read with Section 134(3)(ca) of the Act the Annual Return is available at the Company's Official website at the weblink: https://www.ifbagro.in.

DIRECTORS

Mr.Arup Kumar Banerjee, Vice Chairman and Managing Director was re-appointed for a period of 3 (years) with effect from 30 July 2020 by the shareholders at the Thirty Eighth Annual General Meeting of the Company held on 4 September 2020.

Mr. Bikramjit Nag, Joint Executive Chairman retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment. The details about his qualification, other directorships etc. as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are provided in the explanatory statement under Section 102 of the Companies Act, 2013 separately and annexed to the notice.

Mr. Bikramjit Nag was appointed as a Joint Executive Chairman of the Company at the Thirty Sixth Annual General Meeting held on 27 July, 2018, for a period of three years with effect from 26 January 2019. The existing term of Mr. Nag as Joint Executive Chairman will expire on 25 January 2022. The Board of Directors in its meeting held on, 17 June, 2021, considered the recommendations of the Nomination and Remuneration Committee, and re-appointed Mr. Bikramjit Nag (subject to the approval of members in the ensuing Annual General Meeting) as Joint Executive Chairman for a further period of 3 years with effect from 25 January 2022. He is liable to retire by rotation. Mr. Bikramjit Nag fulfils the conditions specified in the Act and the Rules thereunder and is not debarred to hold the office of Executive Director pursuant to any order of SEBI or any other authority.

Appropriate resolutions seeking the appointment/reappointment of director is appearing in the Notice convening the ensuing Annual General Meeting of the Company.

KEYMANAGERIALPERSONNEL

During the year under review, the Board at its meeting held on 29 January 2021 appointed the following officers as Key Managerial Personnel u/s 203 of the Companies Act, 2013.

Mr. Santanu Ghosh, Mr. Debasis Ghosh and Mr. Soumitra Chakraborty have been appointed as the Chief Executive Officer (CEO) of Distillery business, IMILbusiness and Marine business respectively of the Company with effect from 29 January 2021.

Mr. Rana Chatterjee and Mr. Siddhartha Basu have been appointed as the Chief Financial Officer (CFO) of Alcohol Business- (Distillery & IMILDivision) and Marine Business respectively of the Company with effect from 29 January 2021.

DECLARATION BYINDEPENDENTDIRECTORS

The Company has received necessary declaration from each Independent Director under Section 149(7) of the Companies Act, 2013, that he / she meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 and Regulation 25 of the Listing Regulations. The declarations were noted by the Board at its meeting held on 28 April 2021.

ANNUAL EVALUATION OF BOARD'S PERFORMANCE

According to Regulation 25(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Schedule IV of the Companies Act, 2013, a meeting of the Independent Directors was held on 8 January 2021 to review the performance of the Non-Independent Directors, Chairman and the Board as a whole.

In the Board meeting held dated 29 January 2021, the performance of the Board, its Committees and individual Directors was also discussed. Performance evaluation of Independent Directors was done by the entire Board, excluding the Independent Director being evaluated.

DIRECTORS'RESPONSIBILITYSTATEMENT

Pursuant to the provisions of Section 134(5) of the Companies Act 2013, your Directors state that:

a. in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
b. the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31.03.2021 and of the profit of the Company for that period;

16 th ³⁹ Annual Report 2020-21

c. the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d. the Directors had prepared the annual accounts on a going concern basis;
e. the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and
f. the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

REMUNERATION POLICY

ANomination and Remuneration Policy has been formulated pursuant to the provisions of Section 178 and other applicable provisions of the Companies Act, 2013 and rules thereto and Regulation 19 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 stating therein the Company's policy on Directors'/Key Managerial Personnel/other employee's appointment and remuneration by the Nomination and Remuneration Committee and approved by the Board of Directors.

The said policy may be referred to, at the Company's official website at https://www.ifbagro.in.

DEPOSITS

Your Company did not accept any deposit from the public / members under Section 73 of the Companies Act, 2013 read with Companies (Acceptance of Deposit) Rules, 2014 during the year.

REMUNERATION RATIO OFTHE DIRECTORS / KEYMANAGERIALPERSONNEL(KMP) / EMPLOYEES:

The information required pursuant to Section 197 read with Rule 5 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Companies (Particulars of Employees) Rules, 1975, in respect of employees of the Company and Directors is given in Annexure I which forms part of this Report.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The Company has not given any loans, guarantees or made any investments exceeding sixty per cent of its paid-up share capital, free reserves and securities premium account or one hundred per cent of its free reserves and securities premium account, whichever is more, as prescribed in Section 186 of the Companies Act, 2013.

RELATED PARTY TRANSACTIONS

All contracts/ arrangements/ transactions entered by the company during the financial year with related parties were in ordinary course of business and on an arm's length basis. During the year, the company had not entered into any contract / arrangement / transaction with related parties which could be considered material in accordance with the policy of the company on materiality of related party transaction on which is required to be reported in Form No. AOC-2 in terms of Section 134(3)(h) read with Section 188 of the Act. There were no materially significant related party transactions which could have potential conflict with interest of the Company at large. Your directors draw attention of members to note 32 to the Standalone Financial Statements which set out related party disclosures.

Your Company's Policy on Related Party Transactions, as adopted by your Board, can be accessed on the corporate website at https://www.ifbagro.in/assets/pdf/Policy_on_Related_Party_Transactions.pdf

ENERGY, TECHNOLOGY& FOREIGN EXCHANGE

As required under Section 134(3) (m) of the Companies Act, 2013, read with rules made there under, the information relating to Conservation of Energy, Technology Absorption and Foreign Exchange earnings & outgo is given in Annexure II which forms a part of this Report.

HUMAN RESOURCES

For the development of the human resources, number of training programmes were organized during the year. Internal personnel as well outside faculty members undertook these programmes. Your Company plans to organize more such training programmes for the st overall development of its people. Total number of employees in the Company stood at 421 as on 31 March 2021.

PREVENTION OFSEXUALHARASSMENT

In compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 the Company had constituted a Prevention of Sexual Harassment Committee. The Prevention of Sexual Harassment Policy is available on the company's website. All women employees were made aware of the Policy and the manner in which complaints could be lodged. During the year the Committee has not received any compliant.

WEBSITE OF THE COMPANY

The Company maintains a website www.ifbagro.in where detailed information of the Company and its products are provided.

AUDITCOMMITTEE

The composition and terms of reference of the Audit Committee has been furnished in the Corporate Governance Report forming part of this Annual Report. The Board has accepted the recommendations of the Audit Committee.

VIGIL MECHANISM

In pursuant to the provisions of Section 177(9) & (10) of the Companies Act, 2013 read with Regulation 22 of SEBI (LODR), a Vigil Mechanism for Directors and employees to report genuine concerns have been established. The said policy may be referred to, at the Company's official website at the weblink: https://www.ifbagro.in/assets/pdf/Whistle_Blower_Policy.pdf

INTERNAL FINANCIAL CONTROL SYSTEMS

Your Company has in place adequate internal control procedures which is commensurate with the size and nature of business. Detailed procedural manuals are in place to ensure that all the assets are safeguarded, protected against loss and all transactions are authorized, recorded and reported correctly. Further such controls have been tested during the year and no reportable material weakness in the design or operation was observed. Nonetheless your Company recognizes that any internal financial control framework, no matter how well designed, has inherent limitations and accordingly, regular audit and review processes ensure that such systems are reinforced on an ongoing basis.

Your Company has in place adequate internal financial controls with reference to the Financial Statements. Such controls have been tested during the year and no reportable material weaknesses in design or operation was observed. The Internal Financial Control systems and procedures and their effectiveness are reviewed and monitored on a regular basis.

LISTING WITH STOCK EXCHANGES

The Equity shares of the Company is listed with the BSE Limited and National Stock Exchange of India Limited and the Company has paid the Annual listing fee for the year 2021-22 to each of the said Exchanges. The Annual Custody/ issuer fee for the year 2021-22 has been paid by the Company to NSDLand CDSL.

DEMATERIALISATION OFSHARES:

95.54% of the Company's paid up Equity Share Capital is in dematerialized form as on 31 March 2021 and balance 4.46% is in physical form. The Company's Registrars are M/s C.B. Management Services Pvt. Ltd., having their registered office at P-22, Bondel Road, Kolkata- 700 019.

The paid up share capital of the Company as at 31 March 2021 remained unchanged and it stood at ` 9,36,71,110. During the year under review the Company has not issued shares with differential voting rights nor has granted any stock options or sweat equity.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

In terms of Section 135 and Schedule VII of Companies Act, 2013, the Board of Directors of your Company have constituted a CSR Committee. The Committee comprises of Independent Directors and Executive Directors. The brief outline of the corporate social responsibility (CSR) policy of the Company and the initiative undertaken by the Company on CSR activities during the year are set out in Annexure III of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. The said policy may be referred to, at the Company's official website at http://www.ifbagro.in.

Your Company has identified the activities and accordingly projects mainly relating to a) eradicating hunger, malnutrition and sanitation b) promoting education and livelihood enhancement and c) Promoting Healthcare and safe drinking water, (d) Rural Development & Livelihood were undertaken in line with the CSR policy. The Company made an expenditure of Rs. 83.30 lakhs against the stipulated amount of ` 79.91 lakhs. on CSR for an amount

SECRETARIALAUDITOR

The provisions of Section 204 read with Section 134(3) of the Companies Act, 2013 mandates Secretarial Audit of the Company. The Board in its meeting held on 28th April, 2021, appointed Mr. S. K. Patnaik, partner of M/s Patnaik & Patnaik, Practising Company Secretary (Certificate of Practice No. 5699) as the Secretarial Auditor of the Company.

The Secretarial Auditors'Report for the financial year ending 31st March 2021 is given in Annexure IV, which forms part of this report.

Your Board has the pleasure in confirming that no qualification, reservation, adverse remark or disclaimer has been made by the Company Secretary in Practice in his Report issued to the members of the Company.

BUSINESS RESPONSIBILITYREPORT

In conformance to the requirements of the clause (f) of sub-regulation (2) of Regulation 34 of Securities and Exchange Board of India (SEBI) Listing Regulations, the Business Responsibility Report for financial year 2020-2021 is given in Annexure Vwhich forms part of this Report.

SUBSIDIARY/ASSOCIATES/JOINTVENTURE COMPANIES

Company had incorporated a Wholly Owned Subsidiary in the name and style of IFB Agro Marine(FZE), a limited liability Company in the Sharjah Airport International Free Zone, Sharjah, United Arab Emirates on 20th April, 2017. The purpose of setting up this entity is to establish a marketing and trading outfit to explore untapped markets in Middle East countries, Eastern Europe, CIS countries etc. for marine products.

In accordance with Section 129(3) of the Companies Act, 2013, the consolidated financial statements of the company has been prepared, which forms part of this Annual Report. Further, the report on the performance and financial position of the subsidiary in the prescribed form AOC-1 is annexed as Annexure VI to this report.

CORPORATE GOVERNANCE

Your Company attaches considerable significance to good Corporate Governance as an important step towards building investor confidence, improving investors' protection and maximizing long-term stakeholder's value. The certificate of the Auditors, M/s BSR & Co LLP, Chartered Accountants confirming compliance of conditions of Corporate Governance as stipulated under Regulation 25 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 which is given as Annexure-VII forms part of this Annual Report.

STATUTORY AUDITORS AND AUDIT REPORT

At the 37th Annual General Meeting held on 26th July, 2019 the shareholders of the company appointed M/s. BSR & Co. LLP(Firm Registration No.: 001076N/N500013), Chartered Accountants as the Auditors of the Company for a term of five consecutive years from the conclusion of 37th Annual General Meeting to the conclusion of 42nd Annual General Meeting. The requirement to place the matter relating to reappointment of auditors for ratification by Members at every AGM has been done away by the Companies AGRO INDUSTRIES LIMITED

(Amendment) Act, 2017 with effect from May 7, 2018. Accordingly, no resolution is being proposed for ratification of reappointment of statutory auditors at the ensuing AGM and a note in respect of same has been included in the Notice for this AGM.

During the year under review, the Auditors had not reported any matter under Section 143 (12) of the Act, therefore no detail is required to be disclosed under Section 134(3) (ca) of the Act.

The Auditors Report does not contain any qualifications, reservation or adverse remark or disclaimer.

COST RECORDS

Your Company is not required to maintain Cost Records as specified by the Central Government u/s 148 (1) of the Companies Act, 2013

SECRETARIALSTANDARDS

Company has in place proper system to ensure compliance with the provisions of the applicable Secretarial Standards issued by The Institute of Company Secretaries of India and such systems are adequate and operating effectively.

ACKNOWLEDGEMENT

Directors take this opportunity to express their thanks to various departments of the Central and State Government, Bankers, Customers and Stakeholders for their continued support.

The Directors wish to place on record their appreciation for the dedicated efforts put in by the employees of the Company at all levels.

Cautionary Statement: Statement in the Directors'Report and Management Discussion & Analysis Report describing the Company's expectations may be forward-looking within the meaning of applicable securities laws & regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Company's operation include global and domestic demand and supply conditions affecting selling prices, new capacity additions, availability of critical materials and their costs, changes in government policies and tax laws.

Plot No. IND-5, Sector - 1 Joint Executive Chairman Vice Chairman and East Calcutta Township (DIN: 00827155) Managing Director Kolkata - 700 107 (DIN: 00336225) CIN: L01409WB1982PLC034590 E-mail: [email protected] Website : www.ifbagro.in Date : 17 June 2021

On behalf of the Board

Registered Office: Bikramjit Nag Arup Kumar Banerjee

Annexure I to Directors' Report

(i) The ratio of the remuneration of each Director to the median remuneration to the employee of the Company for the financial year 2020-21

Director's Name	Ratio to median remuneration
Mr. Arup Kumar Banerjee, Vice Chairman and Managing Director	40.47
Mr. Bikramjit Nag, Joint Executive Chairman	19.88

* Non-Executive Directors are paid sitting fees only. Hence, not considered for ratio to median remuneration.

(ii) The Percentage increase in remuneration of each Director, Chief Financial Officer (CFO), Company Secretary (CS) in the financial year 2020-21.

Director's/CFO/CS	% increase / (decrease) in remuneration in the Financial Year
Mr. Arup Kumar Banerjee, Vice Chairman and Managing Director	22.64
Mr. Bikramjit Nag, Joint Executive Chairman	6.43
Mr. Rahul Choudhary, Chief Financial Officer	(5.13)
Mr. Ritesh Agarwal, Company Secretary	(10.67)

The remuneration of Executive Directors includes the variable components such as commission on Net profits of the Company.

(iii) Percentage increase in the median remuneration of employees in the financial year 2020-21: Nil
(iv) Number of permanent employees on the rolls of the Company as on 31.03.2021 : 421
(v) Average percentile increase in salaries of Employees other than managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

There was no increment during the year, infact during the month of April-June, 2020, there was a reduction in salaries as per the hierarchy, which was approved by the Nomination and Remuneration Committee.

(vi) The ratio of the remuneration of the highest paid Director to that of the employees who are not Directors but receive remuneration in excess the highest paid Directorduring the year: None

(vii) Affirmation that the remuneration is as per the remuneration policy of the Company:

The Board of Directors of the Company affirms that the remuneration is as per the remuneration policy of the Company.

(viii) The statement containing the particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) and

Rule 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is mentioned hereinbelow:-

Sec 197 - Particular of employees for the year ended 31 March, 2021.

1. The Statement containing the particulars of employees as required under Section 197 of the Act read with Rule 5(2) and Rule 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
(A) Employees drawing remuneration more than `102 Lakhs during the year 2020-21

Particulars	(1)	(2)
Name	Mr. Arup Kumar Baneriee	Mr. Bikramiit Nag
Designation	Vice Chairman and Managing Director	Joint Executive Chairman
Remuneration received	`247 lakhs \|`122 lakhs
Nature of employment	Permanent Employee	Permanent Employee
Qualification	B.Com (Hons.), Diploma in Business Management from llM Calcutta	BBA from Richmond College, U.K
Experience	47 years	25 years
Date of joining the Company	01.04.1995	27.01.1998
Age of employee on 31.03.2021	69 years	48 years
Last employment held before joining the company	IFB lndustries Ltd	IFB lndustries Ltd
Percentage of equity shares held by the employee within the meaning of clause (iii) of Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014	NIL	0.01%
Whether the employee is a relative of any director	No	Yes. He is related to Mr. Bijon Nag, Chairman

(B) Other employees employed throughout the financial year and was in receipt of remuneration for that year which in the aggregate was not less than ` 102 lakhs: Nil
(C) Other employees employed for a part of the financial year and was in receipt of remuneration for any part of that year, at a rate which, in the aggregate, was not less than ` 8.5 lakhs per month: None
(D) Other employees employed throughout the financial year and was in receipt of remuneration which, in the aggregate, is in excess of that drawn by the managing director or whole-time director or manager and holds by himself or along with his spouse and dependent children not less than 2% of the equity shares of the company: Nil

Kolkata - 700 107 (DIN: 00336225) CIN: L01409WB1982PLC034590 E-mail: [email protected] Website : www.ifbagro.in Date : 17 June 2021

On behalf of the Board

Registered Office: Bikramjit Nag Arup Kumar Banerjee Plot No. IND-5, Sector - 1 Joint Executive Chairman Vice Chairman and East Calcutta Township (DIN: 00827155) Managing Director

22 th ³⁹ Annual Report 2020-21

Annexure II to Directors' Report

Statement pursuant to Section 134(3) (m) of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014.

[A] CONSERVATION OFENERGY

a) Energy conservation measures taken:
1. Continued operation of Distilleries on 'Eco Smart' multi pressure distillation technology with integrated evaporation plant. This energy efficient technology has helped in reducing of steam consumption.
1. Very High gravity fermentation process (VHG) is continued as standard operating procedure which helped to reduce the consumption of steam and water.
1. Distilleries were operated mostly on cogenerated power (93%). This year captive power generation had declined little bit due to higher downtime at distillery during Q1 on account of nationwide lockdown, and difficulties and damages related to 'Amphan Cyclone'.
1. Jet cooking process was modified to use low pressure exhaust steam in liquefaction process, which helped to reduce heat energy consumption and resulting in reduction in fuel consumption.
1. Total steam condensate recycling (100% recycling) from DDGS and new distillation unit has substantially reduced fuel and energy consumption.
1. Overall power factor achieved > 97% for the distillery operation, with the help of using modern gadgets.
b) Steps taken for utilizing alternate sources of energy
1. Use of steam condensate for de-superheating of process steam, leading to saving of steam and water.
1. Use of rice husk along with saw dust, straw and groundnut shell dust in boiler as alternative source of energy. The capital investment on energy conservation equipment is not significant.

[B] TECHNOLOGY ABSORPTION

a) Efforts made towards technology absorption
1. Adoption and use of high temperature tolerant yeast strain to support high gravity fermentation which helped to reduce energy consumption for fermentation cooling.
1. Installation of rotating steam tube bundled dryer with PLC controls for making DDGS with flexible product quality options.
1. Vapor integration from DDGS dryer to thin slop evaporation for steam and fuel saving.
1. Introduction of water-cooled screw type brine chiller with refrigerant R134A, which is environment friendly, and does not lead to GHG (greenhouse gas) emission.
1. Continuation of CPCB approved online monitoring instruments (system) for water and stack monitoring.
1. Recycling of ash back to fuel stream inside boiler furnace to reduce LOI (loss on ignition) of fuel.
1. In house enzyme production to support liquefaction of starch from grain.
1. Coriolis principle-based precision mass flow meters were bought and the technology with SCADA controls was fully absorbed
b) Benefits derived:
1. Improvement in fermentation efficiencies and overall yield.
1. Improved quality, productivity and yield in grain distillery operation.
1. Lowering of steam and water consumption through 'Eco Smart' distillation technology and integration of vapor from DDGS dryer for thin slop evaporation very high gravity fermentation technique, multi-effect evaporation plant operation and utilization of reverse osmosis plant to clean treated condensate and effluent water.
1. Spirit handling related losses has been lowered significantly with the help of sophisticated imported mass flowmeters, which imparted accuracy in spirit handling.
1. Ground Water conservation.
1. Improvement in fuel burning efficiencies in Boiler.
1. Reduction in chemical cost for spirit processing.
1. New initiatives on boiler blow down water management has led to savings of Raw water consumption by 5% and 1% on fuel consumption.
c) Technology Imported:

Tied-up with IMTECH Chandigarh for an exploratory project on developing a world class genetically modified strain for optimum production of process enzyme(s) required for distillery.

d) Research & Development:
1. In house R&D has successfully developed and all-purpose floor /surface cleaner utilizing distillery byproducts.
1. Successfully completed feeding trial at National Dairy Research Institute, Kalyani, to utilize Condensed Distillery Soluble (CDS) and Distiller's Dried Grains Soluble (DDGS) as an active ingredient for cattle feed.
1. Project on DDGS digestibility in poultry feed is sponsored with University of Animal Science.
1. Value added product based on DDGS and other useful ingredients are being developed with the help of WBUAH&S (West Bengal University of Animal Husbandry and Fisheries Science).
1. Expenditure on R&D:

| | 5.1 | Capital | : |21.55 Lakhs |
|---|-----|-----------|---|---------------|
| | 5.2 | Recurring | : | 13.02 Lakhs. | | | 5.3 | Total | : |34.57 Lakhs. |

[C] FOREIGN EXCHANGE EARNINGS AND OUTGO

			(` in Lakhs)
	Particulars	31.03.2021	31.03.2020
a)	Foreign Exchange Earnings (FOB value)	9414.31	19756.75
b)	CIF Value of Capital Imports	-	41.91
c)	Expenditure in Foreign Currency	223.12	780.16

Kolkata - 700 107 (DIN: 00336225) CIN: L01409WB1982PLC034590 E-mail: [email protected] Website : www.ifbagro.in Date : 17 June 2021

On behalf of the Board

Registered Office:	Bikramjit Nag	Arup Kumar Banerjee
Plot No. IND-5, Sector - 1	Joint Executive Chairman	Vice Chairman and
East Calcutta Township	(DIN: 00827155)	Managing Director

24 th ³⁹ Annual Report 2020-21

Annexure III to Directors' Report

CORPORATE SOCIALRESPONSIBILITY

1. Your Company works on the belief that organizations should exist to serve a social purpose and enhance the lives of people connected through its business. Accordingly your Company devotes resources, in the manner recommended by its CSR Committee and approved by its Board of Directors in accordance with the provisions of law for fulfilling the aforesaid objective in the manner laid out in Schedule VII to the Companies Act, 2013, with particular stress on areas around which the Company operates.
1. Composition of CSR Committee:

Sl. No.	Name of Director	Designation / Nature of Directorship	Number of meetings of CSR Committee held during the year	Number of meetings of CSR Committee attended during the year
1.	Mr. A.K. Banerjee	Chairman, Non-Independent Executive Director	2	2
2.	Mr. H.R. Agarwal	Member, Independent Non-Executive Director	2	2
3.	Mr. M.K. Vijay	Member, Independent Non-Executive Director	2	2

1. The Composition of the CSR committee, CSR Policy approved by the board shared above and is available on the Company's website on www.ifbagro.in.
1. Details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report):- NA
1. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any:-

| Sl. No. | Financial Year | Amount available for set-off from
preceding financial years (in ) | Amount required to be setoff for<br>the financial year, if any (in) |
|---------|----------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|
| 1. | Not Applicable | NIL | NIL |

1. Average net profit of the company as per section 135(5):- ` 3995.47 Lakhs
1. (a) Two percent of average net profit of the company as per section 135(5):- ` 79.91 Lakhs
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: NIL
(c) Amount required to be set off for the financial year, if any: NIL
(d) Total CSR obligation for the financial year (7a+7b+7c):- ` 79.91 Lakhs
1. (a) CSR amount spent for the financial year:

Total Amount Spent for the Financial Year. (` in Lakhs)		Total Amount transferred to Unspent CSR Account as per section 135(6).	Amount transferred to any fund specified under Schedule VII as per second proviso to section 135(5).
83.30	Amount. Date of transfer. (`in Lakhs) \| \| Name of the Fund \| Amount.<br>(` in Lakhs)	Date of transfer.
	NIL	-	-	NIL	-

(b) Details of CSR amount spent against ongoing projects for the financial year:-

The CSR expenditure spent by the Company in relation to any on-going project is NILfor the Financial Year 2020-21.

No.	Sl. Name of the Project.	Item from the list Local of activities in area Schedule VII to (Yes/ the Act.			Location of the project.		Mode of Implemen- tation -	Mode of Implementation - Through Implementing Agency
			No)	State	District.	(` in Lakhs)	Direct (Yes/No)	Name	CSR Registration number.
1.	Assisting impoverished people by supplying food, sanitizers, grocery and other items during Amphan, COVID-19 as and when required.	Eradicating Hunger, malnutrition, sanitisation.	Yes	West Bengal	24 Parganas (S), Burdwan	30.34	Yes	NA
2.	Medical assistance & treatment to underprivileged. persons	Promoting Healthcare & Safe drinking water.	Yes	West Bengal	24 Parganas (S)	3.39	Yes	NA
3.	Medical assistance & treatment to underprivileged persons & providing medical relief during COVID-19 pandemic.	Promoting Healthcare & Safe drinking water.	Yes	West Bengal	Kolkata	4.05	No	Through:- a. Indian Institute of Cerebral Palsy. b. PM Cares Fund	- -
4.	Education and skill building projects.	Promoting education & Livelihood enhancement.	Yes	West Bengal	24 Parganas (S), Burdwan, Hooghly, Midnapore	20.50	Yes	NA
5.	Agricultural & rural infrastructural development and. Community transformation projects	Rural Development	Yes	West Bengal	24 Parganas (S), Burdwan, Midnapore	25.02	Yes	NA
				TOTAL (` in Lakhs)		83.30

(c) Details of CSR amount spent against other than ongoing projects for the financial year:

* CSR registration is applicable from 1 April 2021.

(d) Amount spent in Administrative Overheads:-NIL

(e) Amount spent on Impact Assessment, if applicable:-NIL

(f) Total amount spent for the Financial Year (8b+8c+8d+8e):- ` 83.30 Lakhs

(g) Excess amount for set off, if any

Sl. No.	Particulars	Amount (` in Lakhs)
1.	Two percent of average net profit of the company as per section 135(5)	79.91
2.	Total amount spent for the Financial Year	83.30
3.	Excess amount spent for the financial year [(ii)-(i)]	3.39
4.	Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any	NIL
5.	Amount available for set off in succeeding financial years [(iii)-(iv)]	3.39

9.	(a)	Details of Unspent CSR amount for the preceding three financial years:
----	-----	------------------------------------------------------------------------	--

Sl. No	Preceding Financial Year.	Amount transferred to Unspent CSR	Amount spent in the reporting		Amount transferred to any fund specified under. Schedule VII as per section 135(6), if any	Amount remaining to be spent in
		Account under section 135 (6) (`in Lakhs) \| Financial Year<br>(` in Lakhs)	Name of the Fund	Amount (`in Lakhs) \| Date of<br>transfer \| succeeding<br>financial years.<br>(` in Lakhs)
1.	-	NIL	-	-	NIL	-

(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):- Not applicable, as the concept of 'ongoing projects'has been introduced in the CSR Amendment Rules, relevant from fiscal 2021.
1. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year (asset-wise details).
(a) Date of creation or acquisition of the capital asset(s) :-NONE
(b) Amount of CSR spent for creation or acquisition of capital asset :- NIL
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc:- NA
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset):-NA
1. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5):-NA

On behalf of the Board

Registered Office: Bikramjit Nag Arup Kumar Banerjee Plot No. IND-5, Sector - 1 Joint Executive Chairman Vice Chairman and East Calcutta Township (DIN: 00827155) Managing Director Kolkata - 700 107 & Chairman of CIN: L01409WB1982PLC034590 CSR Committee E-mail: [email protected] (DIN: 00336225) Website : www.ifbagro.in Date : 17 June 2021

Annexure IV to Directors' Report

FORM NO. MR-3

Secretarial Audit Report

st for the Financial Year ended 31 March, 2021 [Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To, The Members, IFB Agro Industries Limited

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by IFB Agro Industries Ltd (hereinafter called the Company). Secretarial audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorised representatives during the conduct of secretarial st audit, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on 31 March, 2021 ("Audit Period") complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter.

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the st financial year ended on 31 March, 2021 according to the provisions of:

(i) The Companies Act, 2013 ("the Act") and the rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 ("SCRA") and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment and Overseas Direct Investment;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 ("SEBI Act"):
a] The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
b] The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
c] The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (Not applicable to the company during the audit period);
d] Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (Not applicable to the company during the audit period);
e] The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (Not applicable to the company during the audit period);
f] The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;
g] The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (Not applicable to the company during the audit period); and
h] The Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 (Not applicable to the company during the audit period).

28 th ³⁹ Annual Report 2020-21

(vi) The other laws, as informed and certified by the Management of the Company, which are specifically applicable to the Company namely:
a] The Food Safety and Standards Act, 2006 and the rules and regulations made thereunder;
b] Legal Metrology Act, 2009 and the rules made thereunder;
c] The West Bengal Sales Tax Act, 1944;
d] Bengal Excise Act, 1909;
e] The Environment (Protection) Act, 1986, read with the Environment (Protection) Rules, 1986;
f] The Water (Prevention & Control of Pollution)Act, 1974, read with Water (Prevention & Control of Pollution) Rules, 1975;
g] The Air (Prevention & Control of Pollution) Act, 1981 read with Air (Prevention & Control of Pollution) Rules, 1982;
h] The Factories Act, 1948 and allied state laws.

We have also examined compliance with the applicable clauses of the following:

(i) The Secretarial Standards (SS-1 and SS-2) issued by The Institute of Company Secretaries of India;
(ii) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;

We report that, during the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above.

We further report that, the Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.

Adequate notice is given to all Directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

As per the minutes of the meetings duly recorded and signed by the Chairman, the decisions of the Board were unanimous and no dissenting views have been recorded.

We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

We further report that during the audit period, the company has not undertaken any specific events / actions that can have a major bearing on the Company's affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc.

For Patnaik & Patnaik Company Secretaries

S. K. Patnaik, Partner UDIN: F005699C000474772

Place : Kolkata FCS No. : 5699 Date : 17 June 2021 C. P. No.: 7117

[Note: This Report is to be read with our letter of declaration which is annexed hereto as "Annexure - A"and forms an integral part of this Report.]

29 th ³⁹ Annual Report 2020-21

Annexure - A

To, The Members, IFB Agro Industries Ltd.

Our Report is to be read along with this letter.

(i) Maintenance of secretarial record is the responsibility of the Management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit.
(ii) We have followed the audit practices and processes as appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.
(iii) Our Audit was based on examination, in physical or electronic form, as feasible under the prevailing circumstances, of books and records maintained by the Company.
(iv) We have not verified the compliance by the Company of applicable financial laws such as direct and indirect tax laws and maintenance of financial records and books of accounts since the same have been subject to review by the statutory financial auditors, tax auditors and other designated professionals.
(v) The status of compliance of other laws as listed at (vi) in our Report, we relied upon the statement provided by the Management.
(vi) Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events, etc.
(vii) The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of Management. Our examination was limited to the verification of the same on test basis.
(viii) The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the Management has conducted the affairs of the Company.

For Patnaik & Patnaik Company Secretaries

S. K. Patnaik, Partner UDIN: F005699C000474772

Place : Kolkata FCS No. : 5699 Date : 17 June 2021 C. P. No.: 7117

Annexure V to Directors' Report

BUSINESS RESPONSIBILITY REPORT

The Company is conscious of its responsibilities towards various stakeholders such as customers, vendors, employees, shareholders, Bankers, Statutory authorities and to the society at large. Our Business Responsibility Report includes the responses of the Company to the questions on its practices and performance on key principles defined by the Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 covering topics across environment, governance and stakeholder relationships. We provide hereunder the Business Responsibility Report in the format provided under Regulation 34(2)(f) of SEBI (listing Obligations and Disclosure Requirements) Regulations, 2015.

SECTION A: GENERALINFORMATION ABOUTTHE COMPANY

1. Corporate Identity Number (CIN) of the Company : L01409WB1982PLC034590
1. Name of the Company: IFB Agro Industries Limited
1. Registered Address: Plot No. IND-5, Sector-1, East Kolkata Township, Kasba Industrial Estate, Kolkata 700107
1. Website : www.ifbagro.in
1. E-mail id: [email protected]
1. Financial Year reported: 2020-2021
1. Sector(s) that the Company is engaged in (industrial activity code-wise)

Sl. No.	Name and Description of main products/ service	NIC Code of the Product/Service
1	Alcohol (Spirits, spirituous Beverages and allied products)	1101
2	Marine Products	1020

1. List three key products/services that the Company manufactures/provides (as in balance sheet)
(a) Extra Neutral Alcohol for use in Potable Liquor, Homeopathic Medicine etc.
(b) Bottling of Country Liquor/ India Made Indian Liquor.
(c) Processing of Marine food items like prawn, fish etc. and sale of feed.
1. Total number of locations where business activity is undertaken by the Company
(a) Number of International Locations (Provide details of major 5): NIL. However, the company has a subsidiary i.e. IFB Agro Marine FZE, at UAE for the purpose of trading in Marine Food Items.
(b) Number of National Locations: The Company's business and operations are spread across the country. Details of Plant locations are provide in the section, 'General Shareholder Information'in the Corporate Governance Report.
1. Markets served by the Company Company's products and services have a national and international presence.

SECTION B: FINANCIALDETAILS OFTHE COMPANY

1. Paid up Capital (INR): `936.71 lakhs.
1. Total Turnover (INR): `1,69,345 lakhs.
1. Total profit after taxes (INR): `4,700 lakhs.
1. Total Spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%): 1.78% of the PATfor the year 2020-21.
1. List of activities in which expenditure in 4 above has been incurred:-
(a) Promoting Education and livelihood enhancement
- (b) Promoting Healthcare and safe drinking water etc.
- (c) Eradicating Hunger, Malnutrition and sanitation.
- (d) Rural Development and livelihood

SECTION C: OTHER DETAILS

1. Does the Company have any Subsidiary Company/ Companies? Yes. The company has one Wholly Owned Subsidiary.
1. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then indicate the number of such subsidiary company(s) – No
Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than 60%] – Not Applicable

SECTION D: BR INFORMATION

1. Details of Director/Directors responsible for BR
(a) Details of the Director/Directors responsible for implementation of the BR policy/policies
- 1. DIN Number : 00336225
- 1. Name : Mr. Arup Kumar Banerjee
- 1. Designation : Vice Chairman and Managing Director
(b) Details of the BR Head

No.	Particulars	Details	Details	Details
1	DIN Number(if applicable)	N.A	N.A	N.A
2	Name	Mr. Santanu Ghosh	Mr. Debasis Ghosh	Mr. Soumitra Chakraborty
3	Designation	CEO -Distillery business	CEO – IMIL Business	CEO Marine Business
4	Telephone number	9830702959	9800013855	9831234696
5	e-mail id	[email protected]	[email protected]	[email protected]

2. Principle-wise (as per NVGs) BR Policy/policies

(a) Details of compliance (Reply in Y/N)

No.	Questions	P1	P2	P3	P4	P5	P6	P7	P8	P9
1	Do you have a policy/ policies for.									
2	Has the policy being formulated in consultation with the relevant stakeholders?									
3	Does the policy conform to any national / international standards? If yes, specify?									
4	Has the policy being approved by the Board? Is yes, has it been signed by MD/Owner/CEO/ appropriate Board director?									
5	Does the Company have a specified committee of the Board /Director/Official to oversee the implementation of the Policy?									
6	Indicate the link for the policy to be viewed online?*									
7	Has the policy been formally communicated to all relevant internal and external stakeholders?									
8	Does the Company have in house structure to implement the policy/ policies.									
9	Does the Company have a grievance redressal mechanism related to the policy/ policies to address stakeholders' grievances related to the policy/ policies?									
10	Has the Company carried out independent audit/ evaluation of the working of this policy by an internal or external agency?**									

* Policies can be viewed on Company's website:- www.ifbagro.in

** The BR Policy is evaluated internally

(b) If answer to the question at serial number 1 against any principle, is 'No', please explain why: (Tick up to 2 options) – Not applicable

3. Governance related to BR

(a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year:

Four Board Meetings were held during the year and committee meeting were held from time to time during the year.

(b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published? Yes. Being published once a year with the Annual Report of the Company since the financial year ended 31st March, 2021. The report can be viewed at www.ifbagro.in.

SECTION E: PRINCIPLE-WISE PERFORMANCE

Principle 1

Does the policy relating to ethics, bribery and corruption cover only the company? Yes/ No. Does it extend to the Group/Joint Ventures/ Suppliers/Contractors/NGOs /Others?

Yes. It extends only to the Company.

How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the management? If so, provide details thereof, in about 50 words or so.

In the Financial Year 2021 one complaint was received from a stakeholder and was resolved satisfactorily.

Principle 2

1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.
a. The effluent Treatment Facility in Noorpur complies with Zero Liquid Discharge (ZLD) concept set up by MOEFCCC and CPCB. The state of art effluent set up with imported DDGS Dryers have ensured ZLD status of the distillery and also ensures profitability through judicious use of the output from that plant.
b. The cogeneration plant of Noorpur Distillery consist of 2 X 22 MT capacity boiler and 2 X2.5 MW Turbine Generator which in tandem makes the distillery self-reliant upto 95% of its requirement for power for its normal operation.
c. Meeting 100% Pollution Control norms by way of establishing two imported DDGS plants with all accessories thus generating high quality animal feed supplements for the feed industry etc.
1. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product(optional):

The Company has been continuously striving hard to reduce the power, fuel and water consumption thereby contributing for the improvement of environment.

The Company has been focusing on tree plantation nearby its manufacturing plants. It has planted more than 3000 no's of trees and plants and are continuing to add more in various other locations. Further, the company has also contributed a lot to its nearby areas through CSR activities.

1. Does the company have procedures in place for sustainable sourcing (including transportation)?
(a) If yes, what percentage of your inputs was sourced sustainably? Also, provide details thereof, in about 50 words or so.

The resources involved in the manufacturing processes are efficient and sustainable and 100% of the inputs are sustainably sourced by the Company.

Majority of suppliers of raw material are located within a radius of 200 Kms of the manufacturing units of the Company which helps to minimise transportation.

Has the company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work?

Yes, the company has built up a complete small producer's supplier base over the years – generating employment in the local community.

(a) If yes, what steps have been taken to improve their capacity and capability of local and small vendors?

The local labours are provided with safety, hygiene equipment and apparatus and are expected to adhere to the safety procedures of the Company. The parties are trained and their competencies increased through intervention of company's vendor development department.

Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so. –

The production process of the Company is based on principles of optimising the material and energy resources including water recycling through reverse osmosis process. Therefore, the Company lays high degree of stress to reduce waste associated with its products. In the said direction, it has installed Effluent Treatment Plant ("ETP") and filter processes at all of its plants and whatever, liquid and solid waste is generated, the same is being recycled and reused in the process. The current waste generation is less than 2% of the total production, majority of which is recycled.

Principle 3

Please indicate the Total number of employees.-

421 employees in IFB Agro Industries Ltd – inclusive of the Alcohol and Marine divisions as on 31st March, 2021.

1. Please indicate the Total number of employees hired on temporary/ contractual/ casual basis.- 763 nos. across all divisions of the company as on 31.03.2021.
1. Please indicate the Number of permanent women employees.- 8 nos. across all the divisions.
1. Please indicate the Number of permanent employees with disabilities None.
1. Do you have an employee association that is recognized by management -None.
1. What percentage of your permanent employees is members of this recognized employee association? Not Applicable.
1. Please indicate the Number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last financial year and pending, as on the end of the financial year :

No.	Category	No. of complaints pending as on end of the financial year
1	Child labour/ forced labour/ involuntary labour
2	Sexual harassment	NIL
3	Discriminatory employment

1. What percentage of your under mentioned employees were given safety & skill upgradation training in the last year?
(a) Permanent employees 100%
(b) Permanent Women employees 100%
(c ) Casual / Temporary/ Contractual employees 100%
(d) Employees with disabilities Not Applicable

Principle 4

Has the company mapped its internal and external stakeholders? Yes/No –

Yes– in terms of mapping stake holders upto supplier / sales partner levels.

Out of the above, has the company identified the disadvantaged, vulnerable & marginalized stakeholders.-

The Company has put in place systems and procedures to identify, prioritise and address the needs and concerns of its stakeholders across businesses and units in a continuous, consistent and systematic manner. It has implemented mechanisms to facilitate effective dialogues with all stakeholders across businesses, identify material concerns and their resolution in an equitable and transparent manner

Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and marginalized stakeholders. If so, provide details thereof, in about 50 words or so.

The Company's collaborative stakeholders are manifest in its programmes which company has done under CSR which are mostly towards the welfare of the people and stakeholders in and around our factory locations by providing health and sanitary care, educational facilities and vocational training, essential facilities like water, nutrition etc. Most of the welfare schemes undertaken by the Company are targeted towards upliftment of the poor and down-trodden and marginalised stakeholders located in and around our factories. These initiatives augment the natural resource base of the nation and create sustainable rural livelihoods.

Principle 5

Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/Suppliers/Contractors/ NGOs/Others?

The Policy of the Company on Human Rights covers only the Company.

How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the management?

There was no complaint received relating to violation of Human Rights during 2020-21.

34 th ³⁹ Annual Report 2020-21

Principle 6

Does the policy related to Principle 6 cover only the company or extends to the Group/Joint Ventures/Suppliers/Contractors/NGOs/others.

The Company has a Policy on Safety Health and Environment (SHE), which covers all the operations of the Company. The Policy includes implementation of a low carbon growth strategy across its businesses, integrated soil and water conservation programmes and the creation of large-scale sustainable livelihoods amongst the marginalised sections of society. The policy is applicable to the Companies all the location.

All supplier partners and also the company itself adhere to the environment and social norms as mandated by the Government of India.

Does the company have strategies/ initiatives to address global environmental issues such as climate change, global warming, etc.? Y/N. If yes, please give hyperlink for webpage etc.

Yes. The Company is committed to reduce Greenhouse Gas (GHG) emissions and have short-term and long-term targets in this regard. The hyperlink for webpage is https://www.ifbagro.in. All these targets are aimed at:

l Continuous focus on reduction of thermal and electrical energy consumption.
l Installation of Waste Recovery System.
l Utilisation of waste products from its thermal power plants like fly ash to improve the environment.
l Development of ponds and afforestation of the mined area to ensure greener environment.
l Installation of high efficiency ESP's in place of bag filters to ensure emissions are well within the permissible limits.
1. Does the company identify and assess potential environmental risks?

Yes.

Does the company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if Yes, whether any environmental compliance report is filed?

Yes, the Company produces powers in its own plants through use of turbine and waste.

Further, it has also installed heat recovery systems and latest generation energy lighting and equipment, to save energy and fuel cost. The Company has also commissioned Rain Water harvesting projects within the plant and nearby villages. Details are given on the company website www.ifbagro.in.

Has the company undertaken any other initiatives on – clean technology, energy efficiency, renewable energy, etc. Y/N. If yes, please give hyperlink for web page etc.

The company has projects on energy efficiency at the work place and in its products.

Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the financial year being reported? –

Emission / waste generated by the Company are within the permissible limits given by CPCB/SPCB for the financial year 2020-21.

Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end of Financial Year - NIL

Principle 7

1. Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your business deals with:
i. Confederation of Indian Industry (CII)
ii. All India Distillers Association (AIDA)
iii. Marine Products Export Development Authority (MPEDA).
1. Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No; if yes specify the broad areas ( drop box: Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy security, Water, Food Security, Sustainable Business Principles, Others) :

NONE

35 th ³⁹ Annual Report 2020-21

Principle 8

Does the company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes details thereof.

Not applicable

Are the programmes/ projects undertaken through in-house team/ own foundation/ external NGO/ government structures/ any other organization?

Not applicable

Have you done any impact assessment of your initiative?

Not applicable

What is your company's direct contribution to community development projects- Amount in INR and the details of the projects undertaken?

The company's contribution in CSR projects during 2020-21 was Rs.83.30 lakhs which has been elaborated in the separate annexure on CSR to the Board's Report.

Have you taken steps to ensure that this community development initiative is successfully adopted by the community? Please explain in 50 words, or so.

The Company undertakes CSR activities after assessing the needs of the community. Further, all CSR activities are rolled out directly to the society. The Company believes that they will benefit the society at large. This helps in increased reach as well as ensuring the adoption of initiative by communities.

Principle 9

What percentage of customer complaints/consumer cases are pending as on the end of financial year.

Nil.

1. Does the company display product information on the product label, over and above what is mandated as per local laws? Yes/No/N.A./ Remarks(additional information) – Yes
1. Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour during the last five years and pending as on end of financial year. If so, provide details thereof, in about 50 words or so.- No
1. Did your company carry out any consumer survey/ consumer satisfaction trends?

The Company periodically visits its main customers, namely, stockiests, sub dealers, consumers, as part of the appraisal programme and get the feedback on the satisfaction levels on supply, quality and other terms, etc.

On behalf of the Board

Registered Office: Bikramjit Nag Arup Kumar Banerjee

Annexure VI to Directors' Report

Form AOC-1

(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014) Statement containing salient features of the financial statement of subsidiaries or associate companies or joint ventures

Part A Subsidiaries

Sl. No.	1
Name of the subsidiary	IFB AGRO MARINE(FZE)
The date since when subsidiary was acquired	20-April-2017
Reporting Period for the subsidiary concerned,
if different from the holding company's reporting period.	NOT APPLICABLE
Reporting currency	AED
Exchange rate as on the last date of the relevant Financial
year in the case of foreign subsidiaries.	INR 19.92
Share capital	2,700,000
Reserves and surplus	(3,612,587)
Total assets	1,159,066
Total Liabilities	2,071,653
Investments	-
Turnover	3,859,503
Profit / Loss before taxation	(312,569)
Provision for taxation	-
Profit / Loss after taxation	(312,569)
Proposed Dividend	-
Extent of shareholding (in percentage)	100%

Notes:

There are no subsidiaries which are yet to commence operations.
There are no subsidiaries which have been liquidated or sold during the year.

Part B Associates and Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

Since there are no associates and joint ventures as at 31 March, 2021, the information required in Part B has not been furnished.

On behalf of the Board

Registered Office: Bikramjit Nag Arup Kumar Banerjee

Plot No. IND-5, Sector - 1 Joint Executive Chairman Vice Chairman and East Calcutta Township (DIN: 00827155) Managing Director Kolkata - 700 107 (DIN: 00336225) CIN: L01409WB1982PLC034590 E-mail: [email protected] Website : www.ifbagro.in Date : 17 June 2021

37 th ³⁹ Annual Report 2020-21

Annexure VII to Directors' Report

Report on Corporate Governance

[Pursuant to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred as "SEBI LODR")]

1) Company's philosophy on code of Governance

The Company's philosophy on Corporate Governance envisages attainment of the highest levels of transparency, empowerment, accountability, motivation in all operations and all interactions with its shareholders, investors, lenders, employees and customers. The Company believes that all its operations and actions must serve the underlying goal of enhancing overall stakeholder's value, over a sustained period of time.

2) Board of Directors

st A) Composition of the Board of Directors as at 31 March 2021 is as follows:

The Board of Directors of the Company have an optimum combination of Executive, Non-Executive and Independent Directors who have an in-depth knowledge of business, in addition to the expertise in their areas of specialization. The Board of the Company comprises 8 (Eight) Directors that includes 1 (one) Woman Independent Director.

Category	No. of Directors	%
Executive Directors	2	25.00
Independent Directors	4	50.00
Non-Executive, Non Independent Director	2	25.00
Total	8	100.00

B) Particulars of Directorships & Committee Chairmanship/Membership of other Companies & Attendance at the Board Meetings & Last AGM:

Name	Category	No. of Board Meetings attended during 2020-21	Whether attended in AGM held on th 4 September 2020	No. of Directorships in other Indian Public Limited Companies as st on 31 March 2021		No. of Committee position held in other Indian Public Limited Companies as on st 31 March 2021*		Directorship in other Listed Entity (Category of Directorship)
				Chairman	Member	Chairman	Member
Mr. Bijon Nag (Chairman)	Non-Executive Director / Promoter Director	2	Yes	1	-	-	-	IFB Industries Limited - Executive Chairman, Non Independent
Mr. Bikramjit Nag (Joint Executive Chairman)	Executive Director/ Promoter Director	4	Yes	1	1	-	-	IFB Industries Limited - Joint Executive Chairman & Managing Director, Non Independent
Mr. Arup Kumar Banerjee (Vice Chairman and Managing Director)	Executive Director	4	Yes	-	-	-	-	-
Mr. Amitabha Kumar Nag	Non-Executive Director	4	Yes	-	-	-	-	-
Mr. Sudip Kumar Mukherji	Independent Non- Executive Director	4	Yes	-	-	-	-	-
Mr. Hari Ram Agarwal	Independent Non- Executive Director	4	Yes	-	1	-	-	-
Mr. Manoj Kumar Vijay	Independent Non- Executive Director	4	Yes	-	2	1	-	Usha Martin Education & Solutions Limited Non Executive, Independent
Dr. Ranu Chakraborty Independent Non-	Executive Director and Woman Director	4	Yes	-	-	-	-	-

*Only Membership/ Chairmanship of Audit Committee, Investor Grievance and Stakeholder's Relationship Committee have been considered.

l None of the Directors held directorship in more than 7 Listed Companies and /or 10 Public Limited Companies and/or were members of more than 10 committees or acted as Chairman of more than 5 committees across all Public Limited Companies in which they were Directors.
l None of the Independent Directors served as Independent Director in more than 7 listed Companies.
l None of the Executive Directors served as Independent Director of any other listed Company.
l Mr. Bijon Nag and Mr. Bikramjit Nag holds 2,37,509 shares and 1,000 shares respectively in the Equity Share Capital of the Company.

No Director is related to any other Director on the Board except Mr. Bikramjit Nag and Mr. Bijon Nag in terms of the definition of "Relative" as per the Companies Act, 2013.

C) Board Meetings held during the financial year 2020-2021

The Board meets at least once in a quarter in order to consider amongst other business, the quarterly performance of the Company and its financial results. The gap between the Board meeting held on 10th July, 2020 and its previous Board meeting exceeded 4 months due to the sudden outbreak of the COVID-19 pandemic. SEBI vide Circular No SEBI/HO/CFD/CMD1/CIR/P/2020/110 dated 26th June, 2020 had provided relaxation of time limit of "not exceeding 4 months should elapse between two Board meetings" in respect of Board meetings held between 1st December, 2019 to 31st th July, 2020. Save and except the meeting held at 10 July, 2020 the gap between the other Board meetings held has not exceeded 4 months.

During the year under review 4 (four) meetings were held on following dates:

th th st th July 10 2020, 7 August, 2020, 31 October, 2020, and 29 January 2021.

D) Competencies of Board of Directors

The Board has identified the list of core skills/expertise/competencies as required in the context of its business for it to function effectively and are as under:-

1. Knowledge on Company's Business and of the Industry in which the Company operates.
1. Behavioural Skills attributes and competencies to use their knowledge and skills to contribute effectively to the growth of the Company.
1. Business Strategy, Sales & Marketing, Corporate Governance, Forex Management, legal, Administration and Decision Making.
1. Accounting, Financial and Management Skills.
1. Technical / Professional Skills and Specialised Knowledge in relation to Company's business.

The Board believes that the skills/expertise/ competencies are available with the Company.

E) Confirmation

The Board of Directors have confirmed that all the Independent Directors meet the criteria of independence u/s 149(6) of the Act and Regulations 16(1)(b) (viii) and 25(8) of the Listing (Amendment) Regulations, 2018.

E) Skills / Expertise/ Competencies of Board of Directors

The Board composition is evenly poised between members specialized in Technical & commercial fields. The specialized skills/ experience of Board Members are given hereunder:-

Mr. Bijon Nag, Chairman :

Mr. Bijon Nag a Mechanical Engineer, Mentor, having more than five decades of vast experience in Machine tool and Engineering industries. He is a visionary for our state of art Distillery at Noorpur.

Mr. Bikramjit Nag, Joint Executive Chairman.

Mr. Bikramjit Nag a BBAfrom Richmond College, U.K. His area of core competency includes Business Management, Controls, Financial analysis, Planning, Strategic decision Making, Marketing etc. He has also strong legal acumen too.

Mr. Arup Kumar Banerjee, Vice Chairman and Managing Director

Mr Banerjee is a B.Com (Hons.) from Calcutta University, Diploma in Business Management from IIM Calcutta. His core competency area includes Business Management, Administration, Planning, Strategic Decision Making, Marketing etc.

Mr. Amitabha Kumar Nag, Non-Executive and Non -Independent Director:

Mr. Nag, a Chartered Accountant and his key areas of competency includes treasury Management, negotiation with Banks, JVPartners, Taxation, Laws etc.

Mr. Manoj Kumar Vijay, Independent Director:

Mr. Vijay did his graduation in B.com (Hons.) from Calcutta University. Mr. Vijay is having rich exposure in functions like business development, Operations, Technology, H.R, ITservices etc.

Mr. Sudip Kumar Mukherji, Independent Director:

Mr Mukherji, has done his graduation in commerce from the Calcutta University. He is a qualified Chartered Accountant. He has got comprehensive experience of 50 years in diversified areas including Financials Analysis, Strategic Management, Corporate governance, Risk Management, Accounts and Taxation etc.

Mr. Hari Ram Agarwal, Independent Director:

Mr. Agarwal, is a qualified Chartered Accountant, Company Secretary and a Law Graduate with rich experience in Strategic Financial Reporting, Project Financing, Costing and Budgeting, Finance & Accounting, Auditing, Law and Secretarial Matters.

Dr. Runu Chakraborty, Independent Director:

Dr. Chakraborty a BE, ME and PHD in Bio Chemical Engineering and Food Technology. Her core areas of competency includes Bio Chemical Engineering, Food Technologies, Quality and Testing, Research and Product development etc.

3. Audit Committee

Terms of Reference:-

The Audit Committee reviews the Audit Reports submitted by the Internal Auditors, Statutory Auditors, Financial Results, effectiveness of internal audit process and the Company's risk Management strategy and to establish the vigil mechanism. It reviews the Company's established systems and the Committee is governed by provisions of the Companies Act, 2013 and Listing Agreement with Stock Exchanges and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Composition, Name of members, Number of meetings, Chairperson and attendance of the Audit Committee during the
financial year 2020-21:

Name of Members	Members/Chairman	No. of Meetings held	No. of Meetings attended
Mr. Sudip Kumar Mukherji	Chairman	4	4
Mr. Amitabha Kumar Nag	Member	4	4
Mr. Hari Ram Agarwal	Member	4	4

th During the year under review 4 (Four) meetings were held of the members of the Committee which are as follows: 10 July 2020, th th 7 August 2020, 31 October 2020 and 29 January 2021.

th The gap between the Audit Committee meeting held on 10 July, 2020 and its previous Audit Committee meeting exceeded 4 months due to the sudden outbreak of the COVID-19 pandemic. SEBI vide Circular No SEBI/HO/CFD/CMD1/CIR/P/2020/110 th dated 26 June, 2020 had provided relaxation of time limit of "not exceeding 4 months should elapse between two Audit st st Committee meetings" in respect of Audit Committee meetings held between 1 December, 2019 to 31 July, 2020.

The Company Secretary acted as the 'Secretary'to the Audit Committee. The Chairman of the audit committee is an Independent Director.

4) Nomination and Remuneration Committee

Terms of reference:-

This Committee identifies the persons, who are qualified to become Directors of the Company / who may be appointed in Senior Management in accordance with the criteria laid down, recommend to the Board their appointment and removal and also carries out evaluation of the Board, its committees and each director's performance. The Committee also formulate the criteria for determining qualifications, positive attributes, independence of the Directors and recommend to the Board a Policy, relating to the remuneration for the Directors, Key Managerial Personnel and other employees.

Composition, Name of members, Number of meetings, Chairperson and attendance of the Nomination and Remuneration Committee during the financial year 2020-21:

Name of Members	Member/ Chairman	No. of Meetings held	No. of Meetings attended
Mr. Manoj Kumar Vijay	Chairman	2	2
Mr. Hari Ram Agarwal	Member	2	2
Mr. Amitabha Kumar Nag	Member	2	2

During the year under review two meetings were held on the following dates:

th st 10 July 2020 and 31 October 2020.

Nomination and Remuneration Policy:

The Nomination and Remuneration policy may be referred to at the Company's official website at the weblink: https://www.ifbagro.in/assets/pdf/Nomination-and-remuneration-policy.pdf

Remuneration/ Commission paid to Directors during the financial year 2020-21: (Amount in `)
------------------------------------------------------------------------------------------------	--	--

Name of Director	Sitting Fees	Salary, Perquisites & Commission	Total
Mr. Bijon Nag	25000	-	25,000
Mr. Bikramjit Nag	-	1,21,73,151	1,21,73,151
Mr. Arup Kumar Banerjee	-	2,47,80,080	2,47,80,080
Mr. Amitabha Kumar Nag	2,22,000	-	2,22,000
Mr Hari Ram Agarwal	2,20,000	-	2,20,000
Mr Manoj Kumar Vijay	1,87,000	-	1,87,000
Mr Sudip Kumar Mukherji	2,27,000	-	2,27,000
Dr. Runu Chakraborty	1,10,000	-	1,10,000

l Mr. Bikramjit Nag was re-appointed as the Joint Executive Chairman for a period of 3 years w.e.f 26th January, 2019.
l Mr. Arup Kumar Banerjee was appointed as Vice Chairman and Managing Director for a period of 3 years w.e.f 30th July, 2020.
l No severance fee is payable and no stock option has been given.
l Other than sitting fees, there is no other pecuniary relationship or transactions with any of the Non-Executive Directors.

5) Stakeholders'Relationship Committee

Terms of reference:

The Committee focuses primarily on monitoring expeditious redressal of investors /stakeholders grievances and also function in an efficient manner that all issues /concerns stakeholders are addressed / resolved promptly.

Composition, Name of members, Number of meetings, Chairperson and attendance of the Stakeholder's Relationship Committee during the financial year 2020-21:

Name of Members	Member/Chairman	No of Meetings held	No. of Meetings attended
Mr. Sudip Kumar Mukherji	Chairman	5	5
Mr. Amitabha Kumar Nag	Member	5	5
Mr. Manoj Kumar Vijay	Member	5	5

In view of compulsory trading of shares in dematerialized form and consequent lowering of volume of physical transfers there were very few complaints which were sufficiently addressed to at the level of the Compliance Officer and CB Management Services (P) Ltd., the Registrar & Transfer Agent of the Company for shares both in physical and demat modes.

During the year under review 5 meetings were held on the following dates:

th th st th th 10 July, 2020, 7 August, 2020, 31 October,2020, 8 January, 2021 and 24 March, 2021.

InvestorGrievance Redressal

The number of complaints received and resolved to the satisfaction of investor during the year under review and their break-up are as under:

No. of shareholders complaints received so far	1
No. of complaints not solved to the satisfaction of shareholders	Nil
No. of pending complaints	Nil

Name, Designation & Address of the Compliance Officer:

Mr. Ritesh Agarwal, Company Secretary

IFB Agro Industries Limited

Plot No- IND 5, Sector-1, East Calcutta Township, Kolkata-700 107 Tel: (033) 39849524 l Fax: (033) 24421003 E-Mail: [email protected]

6) General Body Meetings

a. Location and time where last three AGMs were held:

AGM	For the year ended	Date	Venue of the AGM	Time
th 38	2019-2020	04.09.2020	Meeting conducted through VC/OAVM as per MCA Circulars.	12:45 P.M
th 37	2018-2019	26.07.2019	Club Ecovista Eco Space (Business Park), Premises No. 2F/11, Action Area II Rajarhat, New Town, Kolkata - 700 156.	11.30 A.M
th 36	2017-2018	27.07.2018	Club Ecovista Eco Space (Business Park), Premises No. 2F/11, Action Area II Rajarhat, New Town, Kolkata - 700 156.	12.00 Noon

b.	Whether any special resolution passed in the previous three AGMs	:	Yes
c.	Whether any special resolution passed last year through postal ballot	:	No
	Details of voting pattern	:	N.A
	Person who conducted the postal ballot exercise	:	N.A
d.	Whether any special resolution is proposed to be conducted through postal ballot	:	No

e. Procedure for postal ballot:

Your Company will comply with the requirements of postal ballot as and when such matter arises requiring approval of the shareholders by such process under the Companies Act, 2013 and rules made thereunder, if any.

7) Disclosure:

a. Disclosure on materially significant related party transactions that may have potential conflict with the interests of the Company at large.

None of the transactions with any of the related parties were in conflict with interests of the Company. Transactions with the related parties are disclosed in Note No. 32 "Notes to Financial Statements" annexed to the Financial Statements for the year.

The Board has adopted a policy for related party transactions which has been uploaded on the Company's website at web link https://www.ifbagro.in/assets/pdf/Policy_on_Related_Party_Transactions.pdf

b. Details of non-compliance by the Company, penalties, and strictures imposed on the Company by the Stock Exchanges, SEBI or any statutory authorities on any matter related to capital markets during the last 3 years: None.
c. The financial statements for the year 2020-21 have been prepared in accordance with the applicable accounting standards prescribed by The Institute of Chartered Accountants of India and there are no deviations.
d. The Board has noted and reviewed the Compliance Reports of all laws applicable to the Company, which were placed before each of its meeting held during the year 2020-2021.
e. The Company has adopted Whistle Blower/Vigil Mechanism Policy for Directors and employees which has been placed in the website of the Company at www.ifbagro.in. No personnel has been denied access to the Audit Committee.
f. The Company has periodically reviewed and reported to the Board of Directors of risk assessment made by senior executives with a view to minimize risk.
g. Reconciliation of Share Capital Audit:

A Qualified Practicing Company Secretary carried out a Share Capital Audit during the financial year 2020-21 on quarterly basis to reconcile the total admitted capital with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) and the total issued and listed capital. The Reconciliation of Share Capital Audit Report confirms that the total Paid up Share Capital is in agreement with the total No. of Shares in physical form and the total number of Dematerialized shares held with NSDLand CDSL.

h. Separate Meeting of the Independent Directors

As per the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the th Independent Directors are required to hold at least one meeting in a year. Accordingly, a meeting was held on 8 January, 2021.

i. Code of Conduct for Board members and Senior Management

The Board of Directors has laid down the 'Code of Conduct' for all the Board members and members of the Senior Management of the Company. All the Board members and Senior Management Personnel have affirmed compliance with the code of conduct. The Code is available on the Company's Official website under the weblink https://www.ifbagro.in/assets/pdf/code_of_conduct_IFB_Agro.pdf.

j. Familiarisation Programme for Independent Director

The Company through its Managing Director / Executive Director / Key Managerial Personnel conducts programmes / presentations periodically to familiarize the Independent Directors with the strategy, operations and functions of the Company. The programmes/presentations also familiarizes the Independent Directors with their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business operates, business model of the Company etc. through various programmes.

The familiarisation programme is available on the Company's official website of the following link . https://www.ifbagro.in/assets/images/investor_relations/Familiarisation_Programme_2020_2021.pdf

Whenever new Non-executive and Independent Directors are inducted on the Board they are introduced to our Company's culture through appropriate session and they are also introduced to our organization structure, our business, constitution, board procedures, our major risks and management strategy.

The appointment letters of Independent Directors has been placed on the Company's website at https://www.ifbagro.in/assets/images/investor_relations/Appointment_Letter_IDs.pdf.

k. The Company has adopted Policy for determining 'material' subsidiaries which has been placed on the website of the Company under the web link . https://www.ifbagro.in/assets/images/investor_relations/Policy_Material_Subsidiary.pdf
l. The Company has taken several mitigating actions, applied many strategies and introduced control and reporting systems to reduce and mitigate risk.
m. The Company has not raised funds through preferential allotment or qualified institutions placement as specified under Regulation 32(7A) during the financial year 2020-21.
n. The Company has received a certificate from a Company Secretary in Practice that none of the Directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as Directors of Company by the Board/ Ministry of Corporate Affairs or any such Statutory authority.
o. During the year Board had accepted all mandatory recommendation made by the Committees.
p. Total fees for all services paid by the Company and its subsidiaries on a consolidated basis a sum of ` 29 lakhs to M/s. B S R & Co LLP, Statutory Auditors for the Financial year ended 31.03.2021.
q. The Company has in place a Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013 (POSH Act) covering all women employees of the Company. The Internal Complaints Committee (ICC) is set up for the purpose of providing protection against the sexual harassment of women at workplace and for the prevention and redressal of complaints of sexual harassment and for matters connected therewith or incidental thereto.

The status of complaints is as given below:

Particulars	Nos.
Complaints received during the year ended March 31, 2021	Nil
Complaints resolved during the year ended March 31, 2021	Nil
Complaints pending as on March 31, 2021	Nil

r. The Company has complied with all the mandatory requirements specified in Regulations 17 to 27 and clauses (b) to (i) of sub-regulation (2) of Regulation 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.
s. This Corporate Governance Report of the Company for the financial year 2020-2021 as on 31st March, 2021 are in compliance with the requirements of Corporate Governance under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as applicable.

8) Means of communication

Quarterly Results:The Company's quarterly/half yearly/ annual financial results are sent to the Stock Exchanges with whom the Company has listing agreements as soon as the results are approved and taken on record by the Board of Directors of the Company. Further, the results are generally published in leading newspapers such as Business Standard (English) and Aajkal (Bengali).

Website : The Company's website (www.ifbagro.in) contains a separate dedicated section 'Investor Relations' where shareholders'information is available. The Company's Annual Report is also available in the website of the Company.

Annual Report : The Annual Report containing, inter alia, Audited Financial Statements, Directors'Report and Management's Discussion and Analysis Report, Corporate Governance Report and other important information is circulated to members.

NSE Electronic Application Processing System (NEAPS) : The NEAPS is a web-based application designed by NSE for corporates. All periodical compliance filings like shareholding pattern, corporate governance report, statement of investor complaints, among others are also filed electronically on the Listing Centre.

BSE Corporate Compliance & Listing Centre (the Listing Centre) : BSE's Listing Centre is a web-based application designed for corporates. All periodical complaints filings like shareholding pattern, corporate governance report, statement of investor complaints, among others are also filed electronically on the Listing Centre.

9) General Shareholder information:

i)	39th AGM date, time and venue	:	th 6 August, 2021, at 12:45 PM (The meeting is to be conducted through VC/OAVM pursuant to the MCA Circulars as there is no requirement to have a venue for the AGM)
ii)	Financial year	:	st st 1 April, 2020 to 31 March, 2021.
iii)	Book closure date	:	st th 31 July, 2021 to 6 August, 2021 (both days inclusive)
iv)	Dividend Payment date	:	Not Applicable.
v)	Listing on Stock Exchanges	:	a) BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001
			b) National Stock Exchange of India Limited "Exchange Plaza", C-1, Block G, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051
vi)	Stock Code	:	BSE : 507438
			NSE : IFBAGRO EQ
			NSDL & CDSL : ISIN No. INE 076C01018

vii) Market Price Data :

Monthly High and Low price of shares traded at National Stock Exchange of India Ltd & BSE Limited during the Financial Year 2020-21.

	BSE		NSE
Month	High (Rs.) Low (Rs.)		High (Rs.)	Low (Rs.)
April, 2020	324.10	235.00	324.90	232.30
May, 2020	313.70	267.00	314.40	275.75
June, 2020	329.25	277.05	330.00	275.50
July, 2020	320.00 265.00 314.30			260.00
August, 2020	361.10	272.65	361.50	273.20
September, 2020	370.30	291.10	377.00	301.15
October, 2020	361.95	312.00	367.70	320.00
November, 2020	526.10	328.10	524.70	328.15
December, 2020	625.20	456.15	624.00	458.05
January, 2021	507.00	405.75	506.95	406.25
February, 2021	479.35	410.20	479.95	409.85
March, 2021	439.95	365.40	442.10	367.70

viii) Share price performance in comparison to broad based indices - NSE Nifty

ix) Registrar & Share Transfer Agent : CB Management Services (P) Ltd.

P-22, Bondel Road, Kolkata - 700 019 Tel : (033) 4011 6700/2280 6692/2282 Fax : (033) 4011 6739 E-mail : [email protected] Website :www.cbmsl.com

x) Share Transfer System

M/s CB Management Services (P) Ltd. of P-22, Bondel Road, Kolkata - 700 019, a SEBI registered Registrar is the Registrar of the Company both in physical and dematerialised segment.

Since the Company's shares can be traded only in demat mode, shareholders would be required to send their physical shares certificates, Demat Request Forms (DRF) etc. directly to the Share Transfer Agent, CB Management Services (P) Ltd. Shareholders would also have to ensure that their respective Depository Participant do not delay in sending the DRF and physical share certificates to the aforesaid Share Transfer Agents so that no Demat requests from any shareholder remains pending with the Share Transfer Agent beyond a period of 30 days.

xi) Distribution of Shareholding & Shareholding Pattern
(a) Distribution of Shareholding as on 31 March 2021

Range			%		%
From	To	No.of Shareholders	of total	No.of Shares	of total
1	500	10412	95.47	857261	9.15
501	1000	274	2.51	209390	2.23
1001	2000	109	1.00	154522	1.65
2001	3000	35	0.32	83166	0.89
3001	4000	20	0.18	70053	0.75
4001	5000	14	0.13	64451	0.69
5001	10000	18	0.17	125298	1.34
10001	9999999	24	0.22	7802970	83.30
	TOTAL	10906	100.00	9367111	100.00

Particulars	No. of Shares	% of total	% Dematerialised
Indian Promoters	6088680	65.00	65.00
Mutual Funds/UTI	9000	0.10	0.00
Foreign Portfolio Investor	15000	0.16	0.16
Banks, Financial Institutions & Insurance companies	95850	1.02	0.00
Indian Public	2296730	24.52	21.68
Custodian/DR Holder	500	0.01	0.00
Clearing Members	14381	0.15	0.15
Non –Resident Indians	61185	0.65	0.40
Private Corporate Bodies	744859	7.95	7.90
Employee	17993	0.19	0.00
LLP	899	0.01	0.01
HUF	22034	0.24	0.24
Total :	9367111	100.00	95.54

b) Shareholding Pattern as on 31 March 2021

xii) Dematerialization of shares :

st As on 31 March 2021, 95.54% of the company's total shares representing 8949302 shares were held in dematerialized form and the balance 4.46% representing 417809 shares were held in physical form.

xiii) Outstanding GDRs/ADRs/Warrants or any : The Company has not issued, any GDRs/ADRs/Warrants or convertible instruments, conversion date and any convertible instruments. likely impact on equity xiv) Commodity price risk/ foreign exchange : The Company is exposed to the foreign exchange risk for risk and hedging activities. import of Capital Goods and export of finished goods and engages in foreign currency hedging with banks by way of currency forward contracts in order to protect its foreign currency exposure from exchange fluctuations in terms of the foreign exchange risk management policy of the Company. xv) Plant Locations A. Owned Plants Distillery Plant – Noorpur, P.S. Diamond Harbour, South 24-Parganas, West Bengal - 743 368 IMIL Bottling Plant 1) Panagarh, Dist. Burdwan, West Bengal - 713 148 2) Dankuni, Dist. Hooghly, West Bengal - 712 306 Marine Product Processing Plant – IFB Agro Industries Limited, Plot No.IND-5, Sector-1 East Calcutta Township, Kolkata - 700 107 B. Tie-up Plant Locations IMIL Bottling Plant 1) Prasanta Kumar Dutta, Kandi, Murshidabad, West Bengal - 742137 2) Singh Fisher N, Purulia, West Bengal - 723102 3) Herald Breverages Pvt. Ltd., Jiyancha, 24 Pgs(S) - 743 504 4) Farinni Eleven UP, 5/3A, Chetla Road, Kolkata- 700027

	5) Ranjit Kumar Dandapat C.S.Bottling Plant cum warehouse, Kandergeria, Plot No. 17 &21, J.L.No.- 190, Khaitan No.-85, Burapat Anandapur, Paschim Medinipur - 721260.
	6) Urbashi Fervour, Debi Thakurbari, P.S. Rajganj, Talmahat, Jalpaiguri- 735133
	7) Srilab Breweries Pvt Ltd, Plot No. 7P &8, Tatisilwai Industrial Estate, Phase – II, Tatisilwai, Ranchi, Jharkhand - 835103
Marine Processing Plant	– Essex Marine Private Limited, Vill: Kuliatta, P.O. & P.S. Ramnagar, Dist: Purba Midnapore, West Bengal-721441
xvi)Address for correspondence :
Registered Office	– IFB Agro Industries Limited CIN : L01409WB1982PLC034590 Plot No.IND-5, Sector-1 East Calcutta Township Kolkata - 700 107 Tel. : (033) 39849675/30575176 Fax : (033) 2442 1003 E-mail: [email protected] Website : www.ifbagro.in

10. Requirement under PART E of Schedule II

i) The Board

The Company maintains the office of non-executive Chairman. The Company also pays for all the expenses incurred by the Non-Executive Chairman towards performance of his duties.

ii) Shareholders'Rights

The Company's financial results are published in the newspaper and also posted on its website www.ifbagro.in. Hence, financial results are not send to the Shareholders. However, the Company furnishes the financial results on receipt of request from the shareholders.

iii) Audit Opinion

The Company, at present, does not have any audit qualification pertaining to the financial statements.

iv) Reporting of Internal Auditor

The Company's Internal Auditor reports to the Audit Committee.

On behalf of the Board

Registered Office: Bikramjit Nag Arup Kumar Banerjee Plot No. IND-5, Sector - 1 Joint Executive Chairman Vice Chairman and East Calcutta Township (DIN: 00827155) Managing Director Kolkata - 700 107 (DIN: 00336225) CIN: L01409WB1982PLC034590 E-mail: [email protected] Website : www.ifbagro.in Date : 17 June 2021

48 th ³⁹ Annual Report 2020-21

Independent Auditor's Certificate on Compliance with Corporate Governance Requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To the Members of IFB Agro Industries Limited

1. This certificate is issued in accordance with the terms of our engagement letter dated 14 October 2019 and addendum to the engagement letter dated 2 June 2021.
1. We have examined the compliance of conditions of Corporate Governance by IFB Agro Industries Limited ("the Company"), for the year ended 31 March 2021, as stipulated in regulations 17 to 27, clauses (b) to (i) of regulation 46(2) and paragraphs C, D and E of Schedule V of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time ("Listing Regulations") pursuant to the Listing Agreement of the Company with Stock Exchanges.

Management's Responsibility

The compliance of conditions of Corporate Governance as stipulated under the listing regulations is the responsibility of the Company's Management including the preparation and maintenance of all the relevant records and documents. This responsibility includes the design, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of Corporate Governance stipulated in the Listing Regulations.

Auditors'Responsibility

1. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
1. Pursuant to the requirements of the Listing Regulations, it is our responsibility to provide a reasonable assurance whether the Company has complied with the conditions of Corporate Governance as stipulated in Listing Regulations for the year ended 31 March 2021.
1. We conducted our examination of the above corporate governance compliance by the Company in accordance with the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) and Guidance Note on Certification of Corporate Governance both issued by the Institute of the Chartered Accountants of India (the "ICAI"), in so far as applicable for the purpose of this certificate. The Guidance Note requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.
1. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above-mentioned Listing Regulations.
We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

Restriction on use

The certificate is addressed and provided to the Members of the Company solely for the purpose of enabling the Company to comply with the requirement of the Listing Regulations and should not be used by any other person or for any other purpose. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this certificate is shown or into whose hands it may come without our prior consent in writing.

For B S R & Co. LLP Chartered Accountants Firm's Registration Number: 101248W/W-100022

Jayanta Mukhopadhyay Partner Place: Kolkata Membership Number: 055757 Date: 17 June 2021 UDIN: 21055757AAAACI5063

CHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO) CERTIFICATION

To The Board of Directors IFB Agro Industries Limited Kolkata

Dear Sirs,

Sub: CEO & CFO Certificate

We, Arup Kumar Banerjee, Vice Chairman and Managing Director and Rahul Choudhary, Chief Financial Officer are responsible for the finance function, certify to the Board that:

a) We have reviewed the financial statements and the cash flow statement for the year ended 31 March 2021 and that to the best of our knowledge and belief:
i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;
ii) these statements together present a true and fair view of Company's affairs and are in compliance with existing Accounting Standards, applicable laws and regulations.
b) To the best of our knowledge and belief, no transactions entered into by the Company during the year ended 31 March 2021 which are fraudulent, illegal or violative to Company's code of conduct.
c) We accept our responsibility for establishing and maintaining internal control for financial reporting and we have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting. Deficiencies in the design or operation of such internal controls, if any, of which we are aware, have been disclosed to the auditors and the audit committee and steps have taken to rectify these deficiencies.
d) i) There has not been any significant change in internal control over financial reporting during the year under reference.
ii) There has not been any significant change in accounting policies during the year under reference.
iii) We are not aware of any instance of fraud during the year, with involvement therein of the management or any employee having a significant role in the Company's internal control system over financial reporting.

Place : Kolkata (DIN: 00336225) Date : 17 June 2021

Arup Kumar Banerjee Rahul Choudhary Vice Chairman and Managing Director Chief Financial Officer

CERTIFICATE OF COMPLIANCE WITH CODE OF CONDUCT POLICY

I declare that in terms of Schedule V under Regulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Company has received affirmation of Compliance with Code of Conduct from all the Board members and Senior Management Personnel of the Company for the financial year ended 31 March 2021.

For IFB Agro Industries Limited

Arup Kumar Banerjee Vice Chairman and Managing Director

Place : Kolkata (DIN: 00336225) Date : 17 June 2021

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

[Pursuant to Regulation 34(3) and Schedule V Part C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

To, The Members of IFB Agro Industries Ltd Plot No IND-5, Sector-1 East Calcutta Township Kolkata-700 107

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of IFB Agro Industries Ltd (CIN: L01409WB1982PLC034590) and having its Registered Office at Plot No IND-5, Sector-1, East Calcutta Township, Kolkata – 700 107 (hereinafter referred to as 'the Company'), produced before us by the Company for the purpose of issuing this Certificate in accordance with Regulation 34(3) read with Schedule V Part-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In our opinion and to the best of our information and according to the verifications (including Directors Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & its officers, we st hereby certify that none of the directors on the Board of the Company as stated below for the financial year ending on 31 March, 2021 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such other Statutory Authority.

Sr. No.	Name of Director	DIN	Date of Appointment in Company
1.	Mr. Bijon Nag	00756995	19/02/1982
2.	Mr. Bikramjit Nag	00827155	14/10/1997
3.	Mr. Arup Kumar Banerjee	00336225	28/07/2001
4.	Mr. Sudip Kumar Mukherji	02764262	29/10/2009
5.	Mr. Hari Ram Agarwal	00256614	02/06/2008
6.	Mr. Manoj Kumar Vijay	00075792	02/06/2008
7.	Mr. Amitabha Kumar Nag	00117546	26/07/2003
8.	Mrs. Runu Chakraborty	08463092	27/05/2019

Ensuring the eligibility for the appointment/continuity of every Director on the Board is the responsibility of the management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

For Patnaik & Patnaik Company Secretaries

S. K. Patnaik Partner Place: Kolkata FCS No.: 5699 Date: 17 June 2021 C.P. No.:7117

UDIN: F005699C000474893

52 th ³⁹ Annual Report 2020-21

Independent Auditors' Reportto the Members of IFB Agro Industries Limited.

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of IFB Agro Industries Limited ("the Company"), which comprise the standalone balance sheet as at 31 March 2021, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2021, and profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis forOpinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor's Responsibilities 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 the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the Standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Description of Key Audit Matter

Impairment of trade receivables

See note 9 and 35 to the standalone financial statements

The key audit matter	How the matterwas addressed in our audit
As at 31 March 2021, loss allowance for trade receivables of marine segment is `<br>1,388 lakhs<br>as against the total loss allowance of the<br>Company of 1,400 lakhs.<br>`	In view of the significance of the matter, we applied the following audit procedures in this area, among others, to obtain audit evidence: 1. Obtained an understanding of the Company's processes and controls relating to the determination of expected credit losses of trade receivables.
The Company provides for lifetime expected credit losses using simplified approach. The allowance rates are determined based on the Company's historical default rates determined through a provision matrix and is adjusted for forward-looking information specific to the debtors and economic environment. This assessment involves significant judgement and hence, is considered to be a Key Audit Matter.	2. Tested the design, implementation and operating effectiveness of key controls associated with determination of expected credit losses of trade receivables. 3. Verified the inputs used in the provision matrix and evaluated the estimates for forward looking adjustments to the matrix. 4. Assessed the adequacy of the Company's disclosures on the trade receivables and the related risks under credit risk, in Note 9 and Note 35 to the standalone financial statements and the compliance with relevant accounting standards.

Information Other than the Standalone Financial Statements and Auditors'Report Thereon

The Company's management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company's annual report but does not include the financial statements and our auditors'report thereon.

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

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Management's and Board of Directors'Responsibility for the Standalone Financial Statements

The Company's management and Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management and Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

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

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

l Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
l Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
l Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the standalone financial statements made by the Management and Board of Directors.

AGRO INDUSTRIES LIMITED

l Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
l Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors'report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on OtherLegal and Regulatory Requirements

1. As required by the Companies (Auditors'Report) Order, 2016 ("the Order") issued by the Central Government in terms of section 143 (11) of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
1. (A) As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of 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 the Company so far as it appears from our examination of those books;
c) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31 March 2021 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2021 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
(B) With respect to the other matters to be included in the Auditors'Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31 March 2021 on its financial position in its standalone financial statements - Refer Note 30 (a) to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv. The disclosures in the standalone financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made in these financial statements since they do not pertain to the financial year ended 31 March 2021.
(C) With respect to the matter to be included in the Auditors'Report under section 197(16):

In our opinion and according to the information and explanations given to us, the remuneration paid by the company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act.

The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.

For B S R & Co. LLP Chartered Accountants Firm registration No.: 101248W/W-100022

Jayanta Mukhopadhyay Partner Place: Kolkata Membership No.: 055757 Date: 17 June 2021 ICAI UDIN: 21055757AAAACE2183

Annexure A to the Independent Auditors' report on the standalone financial statements of IFB Agro Industries Limited for the year ended 31 March 2021

[Referred to in paragraph 1 under 'Report on OtherLegal and Regulatory Requirements'section of our report of even date]

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties including immovable property taken on lease and disclosed as right-of-use assets in the financial statements are held in the name of the Company, except for one leasehold land as detailed in Note 3(a)(ii) to the standalone financial statements.
(ii) The inventory, except goods in transit and stock lying with third parties, have been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. For goods-in-transit, subsequent goods receipts have been verified. The discrepancies noticed on verification between the physical stocks and the book records were not material and has been adjusted in the books of account. For stock lying with third parties at the year-end, confirmation have been obtained by the management.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of paragraph 3(iii) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, investments, guarantees and security during the year that would attract provisions of Section 185 of the Act. The Company has complied with the provisions of Section 186 of the Act with respect to investments made and guarantee provided. The Company has not given any loan or provided any security that would attract provisions of Section 186 of the Act.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits as per the directives issued by the Reserve Bank of India under the provisions of Section 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. Accordingly, the provisions of paragraph 3(v) of the Order are not applicable to the Company.
(vi) The Central Government has not prescribed the maintenance of cost records under Section 148 (1) of the Companies Act, 2013 for any of the products manufactured by the Company.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Salestax, Goods and Services tax, Duty of customs, Duty of excise, Cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities though there has been slight delay in few cases of Employees'State Insurance and Income-tax. As explained to us by the management, the Company did not have any dues in respect of Service tax and Value added tax.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees'State Insurance, Income-tax, Sales-tax, Goods and Service tax, Duty of excise, Duty of customs, Cess and other material statutory dues were in arrears as at 31 March 2021 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of Income-tax, Sales-tax, Service tax, Duty of customs, Duty of excise, Entry tax, Goods and Service tax, Value added tax and Cess which have not been deposited with the appropriate authorities on account of any dispute, except as mentioned below:

Name of the statute	Nature of dues	Amount in INR lakhs	Amount Paid Under Protest (in INR lakhs)	Period to which the amount relates	Forum where dispute is pending
The Bengal Excise Act, 1909	State excise duty	1,192	-	2010-11 to 2016-17	West Bengal Taxation Tribunal

Name of the statute	Nature of dues	Amount in INR lakhs	Amount Paid Under Protest (in INR lakhs)	Period to which the amount relates	Forum where dispute is pending
West Bengal Molasses Control Act, 1973	State excise duty	58	15	2003-2006 2008 and	High Court of Calcutta
West Bengal Sales Tax Act, 1994	Sales tax	241	-	2017-18	Senior Joint Commissioner of Commercial Taxes, West Bengal
Central Sales Tax, 1956	Central Sales Tax	52	-	2017-18	Senior Joint Commissioner of Commercial Taxes, West Bengal

(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks. The Company did not have any outstanding loan or borrowings from financial institutions or government or debenture holders during the year.
(ix) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not raised any money by way of term loan, initial public offer or further public offer (including debt instruments). Accordingly, the provisions paragraph 3(ix) of the Order are not applicable to the Company.
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations given to us and based on our examination of the records, the Company has paid or provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Sections 197 read with Schedule Vto the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, the provisions of paragraph 3(xii) of the Order are not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act, wherever applicable, and the details of such transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, the provisions of paragraph 3(xvi) of the Order are not applicable to the Company.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, the provisions of paragraph 3(xv) of the Order are not applicable to the Company.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934. Accordingly, the provisions of paragraph 3(xvi) of the Order are not applicable to the Company

For B S R & Co. LLP Chartered Accountants Firm registration No.: 101248W/W-100022

Jayanta Mukhopadhyay Partner Place: Kolkata Membership No.: 055757 Date: 17 June 2021 ICAI UDIN: 21055757AAAACE2183

58 th ³⁹ Annual Report 2020-21

Annexure B to the Independent Auditors'report on the standalone financial statements of IFB Agro Industries Limited for the year ended 31 March 2021

Report on the internal financial controls with reference to the aforesaid standalone financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013

[Referred to in paragraph 2(A)(f) under 'Report on Other Legal and Regulatory Requirements'section of our report of even date]

Opinion

We have audited the internal financial controls with reference to financial statements of IFB Agro Industries Limited ("the Company") as of 31 March 2021 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at 31 March 2021, based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the "Guidance Note").

Management's Responsibility for Internal Financial Controls

The Company's management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013 ("the Act").

Auditors'Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to financial statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements were established and maintained and whether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of such internal financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors'judgement, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls with reference to financial statements.

Meaning of Internal Financial controls with Reference to Financial Statements

A company's internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Acompany's internal financial controls with reference to financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial controls with Reference to Financial Statements

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

For B S R & Co. LLP Chartered Accountants Firm registration No.: 101248W/W-100022

Jayanta Mukhopadhyay Partner Place: Kolkata Membership No.: 055757 Date: 17 June 2021 ICAI UDIN: 21055757AAAACE2183

Standalone Balance sheet as at 31 March 2021

(All amounts in ` lakhs, unless otherwise stated)

	Notes	As at 31 March 2021	As at 31 March 2020
Assets
Non-current assets Property, plant and equipment	3 (a)	11,949	12,281
Capital work-in-progress	3 (b)	1,004	382
Intangible assets under development	3 (c)	84	63
Financial assets - Investments	4 (a)	4,482	2,572
- Loans	5 (a)	5	6
- Other financial assets	6 (a)	26	26
Current tax assets (net) Other non-current assets	7 (a)	199 707	379 468
Total non-current assets		18,456	16,177
Current assets
Inventories	8	6,662	8,839
Financial assets - Investments	4 (b)	2,045	8,010
- Trade receivables	9	10,371	6,476
- Cash and cash equivalents - Bank balances other than above	10 (a) 10 (b)	10,231 149	1,768 93
- Loans	5 (b)	30	32
- Other financial assets Other current assets	6 (b) 7 (b)	207 5,058	131 3,170
Total current assets		34,753	28,519
Total assets		53,209	44,696
Equity and liabilities
Equity
Equity share capital Other equity	11 12	937 44,167	937 37,808
Total equity		45,104	38,745
Liabilities
Non-current liabilities
Financial liabilities - Lease Liabilities		54	57
- Other financial liabilities	13 (a)	240	240
Deferred tax liabilities (net)	14	888	481
Other non-current liabilities	15 (a)	30	32
Total non-current liabilities		1,212	810
Current liabilities Financial liabilities
- Trade payables	16
-total outstanding dues of micro enterprises and small enterprises		357	369
-total outstanding dues of creditors other than micro enterprises and small enterprises - Lease Liabilities		3,989 7	2,907 7
- Other financial liabilities	13 (b)	591	546
Current tax liabilities, net		42	8
Other current liabilities Provisions	15 (b) 17	1,718 189	1,111 193
Total current liabilities		6,893	5,141
Total liabilities		8,105	5,951

Total equity and liabilities		53,209	44,696

The accompanying notes 1 to 37 form an integral part of these standalone financial statements.

This is the standalone balance sheet referred to in our report of even date.

Chartered Accountants Firm Registration No. 101248W/W -100022 Jayanta Mukhopadhyay Partner Membership No. 055757 Kolkata, 17 June 2021

For B S R & Co. LLP For and on behalf of the Board of Directors of IFB Agro Industries Ltd

Joint Executive Chairman Bikramjit Nag (DIN: 00827155) Chief Financial Officer Rahul Choudhary

Kolkata/Goa, 17 June 2021

Vice Chairman and Managing Director Arup Kumar Banerjee (DIN: 00336225) Company Secretary Ritesh Agarwal (ACS : 17266)

Standalone Statement of profit and loss for the year ended 31 March 2021

(All amounts in ` lakhs, unless otherwise stated)

	Notes	Year ended 31 March 2021	Year ended 31 March 2020
Income
Revenue from operations	18	169,345	188,842
Other income	19	1,631	1,121
Total income		170,976	189,963
Expenses
Cost of materials consumed	20	34,413	57,143
Purchases of stock-in-trade	21	8,898	14,885
Changes in inventories of finished goods, work-in-progress and stock-in-trade	22	2,492	(1,045)
Excise duty		99,973	92,566
Employee benefits expense	23	4,417	4,815
Finance costs	24	7	178
Depreciation and amortisation expenses	25	1,482	1,770
Other expenses	26	13,513	17,847
Total expenses		165,195	188,159
Profit before tax		5,781	1,804
Tax expenses	27 (a)
Current tax		1,293	357
Deferred tax		(212)	(899)
		1,081	(542)
Profit after tax		4,700	2,346
Other comprehensive income:
Items that will not be reclassified subsequently to profit or loss:
Changes in fair value of equity instruments		1,910	(1,095)
Remeasurement of post-employment benefit obligations		37	(85)
Tax relating to these items	27 (b)	(288)	142
Total other comprehensive income for the year, net of tax		1,659	(1,038)
Total comprehensive income for the year		6,359	1,308
Earnings per equity share
Basic and diluted earnings per share (₹)	28	50.18	25.05

The accompanying notes 1 to 37 form an integral part of these standalone financial statements.

This is the standalone statement of profit and loss referred to in our report of even date.

Chartered Accountants Firm Registration No. 101248W/W -100022

Jayanta Mukhopadhyay Partner

Membership No. 055757 Kolkata, 17 June 2021

For B S R & Co. LLP For and on behalf of the Board of Directors of IFB Agro Industries Ltd

Joint Executive Chairman Bikramjit Nag (DIN: 00827155) Vice Chairman and Managing Director Arup Kumar Banerjee (DIN: 00336225) Chief Financial Officer Rahul Choudhary Company Secretary Ritesh Agarwal (ACS : 17266) Kolkata/Goa, 17 June 2021

62 th ³⁹ Annual Report 2020-21

Standalone Statement of cash flows for the year ended 31 March 2021

(All amounts in ` lakhs, unless otherwise stated)

			Year ended 31 March 2021	Year ended 31 March 2020
A.	Cash flow from operating activities:
	Profit before tax		5,781	1,804
	Adjustment for:
	Depreciation and amortisation expenses		1,482	1,770
	Bad debts written-off		298	75
	Allowance for doubtful debts		-	1,214
	Writeback of allowance of doubtful debts		(329)	-
	Net gain arising on sale of financial assets measured at FVTPL		(355)	(324)
	Net gain on remeasurement of financial assets measured at FVTPL		(45)	(4)
	Net (gain)/loss arising on remeasurement of derivatives at FVTPL		(116)	120
	Amortisation of capital subsidy		(2)	(2)
	Gain on sale of property, plant and equipment, net		0	11
	Liability no longer required, written back		(112)	(99)
	Unrealised forex (gain)/loss		1	(62)
	Interest income	(39)	(77)
	Write off of property, plant and equipment Finance costs Operating profit before working capital changes:		0	46 178 4,650
			7 6,571
	Adjustment for:
	(Increase)/decrease in inventories (Increase)/decrease in trade receivables (Increase)/decrease in loans		2,177	(2,304)
			(3,864)	(2,329)
			3	9
	(Increase)/decrease in other financial assets		(76)	(82)
	(Increase)/decrease in other non-financial assets		(2,058)	(92)
	Increase/(decrease) in trade payables		1,070 (4) 31	(123)
	Increase/(decrease) in provisions			(7) 4 512
	Increase/(decrease) in other financial liabilities
	Increase/(decrease) in other non-financial liabilities		719
	Cash generated from/(used in) operations		4,569	238
	Income taxes paid (net of refund)		(748)	(172)
	Net cash generated from/(used in) operating activities	(A)	3,821	66
B.	Cash flow from investing activities
	Purchase of property, plant and equipment (including capital work in progress and intangible assets under development)		(1,697)	(1,198)
	Proceeds from sale of property, plant and equipment		1	28
	Purchase of investments measured at FVTPL Sale of investments measured at FVTPL (Increase)/decrease in other bank balance		(92,879)	(75,775)
			99,244	76,257
			(48)	26

	Interest received		31	82
	Net cash generated from/(used in) investing activities	(B)	4,652	(580)

Standalone Statement of cash flows for the year ended 31 March 2021 (Contd.)

(All amounts in ` lakhs, unless otherwise stated)

			Year ended 31 March 2021	Year ended 31 March 2020
C.	Cash flow from financing activities
	Repayment of borrowings		-	(1,997)
	Finance costs		(5)	(185)
	Increase/(decrease) in lease liability including interest		(5)	(3)
	Net cash generated/(used in) from financing activities	(C)	(10)	(2,185)
	Net increase/(decrease) in cash and cash equivalents	(A+B+C)	8,463	(2,699)
	Cash and cash equivalents as at the beginning of the year		1,768	4,467
	Cash and cash equivalents as at the end of the year [refer note 10(a)]		10,231	1,768

Notes:

i) The above standalone statement of cash flow has been prepared under the 'Indirect method' as set out in Ind AS 7, " Statement of cash flow".

ii) Reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financial activities are as under:

	As at 31 March 2021	As at 31 March 2020
Term loans
Opening balance of borrowings	-	2,009
Repayment during the year	-	(1,997)
Changes on account of foreign currency fluctuations	-	(12)
Changes on account of fair value measurement	-	-
	-	-

This is the standalone statement of cash flow referred to in our report of even date.

Chartered Accountants Firm Registration No. 101248W/W -100022

Jayanta Mukhopadhyay Partner Membership No. 055757

Kolkata, 17 June 2021

For B S R & Co. LLP For and on behalf of the Board of Directors of IFB Agro Industries Ltd

Joint Executive Chairman Bikramjit Nag (DIN: 00827155) Chief Financial Officer Rahul Choudhary Company Secretary Ritesh Agarwal (ACS : 17266) Kolkata/Goa, 17 June 2021

Vice Chairman and Managing Director Arup Kumar Banerjee (DIN: 00336225)

64 th ³⁹ Annual Report 2020-21

Standalone Statement of changes in equity for the year ended 31 March 2021

(All amounts in ` lakhs, unless otherwise stated)

(A) Equity

Particulars	As at 31 March 2021	As at 31 March 2020
Balance at the beginning of the year	937	937
Changes in equity share capital during the year	-	-
Balance at the end of the year	937	937

(B) Other equity

	Reserves and surplus
	Securities premium	General reserves	Retained earnings	Equity Instruments through OCI	Total
Balance as at 31 March 2019	3,194	285	30,351	2,670	36,500
Profit after tax	-	-	2,346	-	2,346
Items of other comprehensive income, net of tax:
- Remeasurements of post-employment benefit obligations	-	-	(55)	-	(55)
- Changes in fair value of equity instruments	-	-	-	(983)	(983)
Balance as at 31 March 2020	3,194	285	32,642	1,687	37,808
Profit after tax	-	-	4,700	-	4,700
Items of other comprehensive income, net of tax:
- Remeasurements of post-employment benefit obligations	-	-	24	-	24
- Changes in fair value of equity instruments	-	-	-	1,635	1,635
Balance as at 31 March 2021	3,194	285	37,366	3,322	44,167

Refer to Note 12 for nature and purpose of reserve.

This is the standalone statement of change in equity referred to in our report of even date.

Chartered Accountants Firm Registration No. 101248W/W -100022 Jayanta Mukhopadhyay Partner Membership No. 055757 Kolkata, 17 June 2021

For B S R & Co. LLP For and on behalf of the Board of Directors of IFB Agro Industries Ltd

(All amounts in ` lakhs, unless otherwise stated)

Summary of significant accounting policies and other explanatory informations:

1A Background

IFB Agro Industries Limited is a Company limited by shares, incorporated and domiciled in India. The Company is primarily engaged in the business of manufacturing alcohol, bottling of branded alcoholic beverages as well as processed marine foods both for domestic and export markets. The Company is listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited. The registered office of the Company is located at Plot No. IND-5, Sector-I, East Kolkata Township, Kolkata 700 107, India. The corporate identification number (CIN) of the Company is L01409WB1982PLC034590.

These standalone financial statements are approved by the Company's Board of Directors on 17 June 2021.

1B Basis of Preparation

(a) General information and statement of compliance with Indian Accounting Standards

The standalone financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (hereinafter referred to as the "Act") read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other relevant provisions of the Act. The Company has uniformly applied the accounting policies during the periods presented.

(b) Historical Cost Convention

The standalone financial statements have been prepared on a historical cost basis, except the following:

certain financial assets and liabilities (including derivative instruments) that are measured at fair value; and
defined benefit plans plan assets measured at fair value.

(c) Accounting estimates and judgements

Preparation of financial statements requires the use of judgements, estimates and assumptions in the application of accounting policies that affects the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates. Continuous evaluation of such estimates are done based on historical experience and other factors, including future expectations that are believed to be reasonable. Revisions to accounting estimates are recognized prospectively.

Details of critical estimates and judgements used which have a significant effect on the carrying amounts of assets and liabilities, are provided in the following notes:

Income tax:

The Company's tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions. Refer note 14 and 27.

Useful life of property, plant and equipment:

Refer note 2 (b) for details.

Measurement of defined benefit obligations:

The cost of defined benefits includes gratuity and compensated absences. The present value of the defined benefit obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The same are disclosed in notes 23 and 31.

Impairment of assets:

Refer note 2 (b), (c) and (e) for details.

Classification of leases:

Refer note 2 (m) for details.

66 th ³⁹ Annual Report 2020-21

(All amounts in ` lakhs, unless otherwise stated)

Estimation of provisions and contingencies:

Refer note 2 (n), 17 and 30(a) for details.

Recognition of deferred tax assets:

Refer note 2 (o) for details.

Fair value measurements:

When the fair values of financials assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow model, which involve various judgements and assumptions. Refer note 34 (c) for details.

The Company presents all its assets and liabilities in the balance sheet based on current or non-current classification. Assets and liabilities are classified as current or non-current as per the Company's normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

2 Significant accounting policies

(a) Revenue recognition

Revenue from contracts with customers is recognised when the control of the goods or services is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

The Company recognises revenue from contracts with customers based on a five-step model as set out in Ind AS - 115, Revenue from contracts with customers:

i) Identify the contracts with customers: Acontract is defined as an agreement between two or more parties that creates enforceable rights and obligations and sets out the criteria for every contract that must be met.
ii) Identify the performance obligations in the contract: Aperformance obligation is a promise in a contract with a customer to transfer goods or services to the customer.
iii) Determine the transaction price: The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.
iv) Allocate the transaction price to the performance obligations in the contract: For a contract that has more than one performance obligation, the Company will allocate the transaction price to each performance obligation in an amount that depicts the amount of consideration to which the Company expects to be entitled in exchange for satisfying each performance obligation.
v) Recognise revenue when (or as) the Company satisfies a performance obligation at a point in time or over time.

Sale of goods:

The Company has concluded that revenue from sale of goods should be recognised at a point in time when the control of the asset is transferred to the customer, generally on despatch or delivery of the goods, as per the terms of the contract.

The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of transaction price needs to be allocated. In determining the transaction price for the sale of goods, the Company considers the effect of significant financing components. The Company receives short-term advance from its customers. As the period between the transfer of promised goods or services and when the customer pays for those goods or services is expected to be less than one year, the Company has used the practical expedient in Ind AS - 115 and not adjusted the consideration for significant financing component.

Revenue is measured based on the transaction price i.e. the consideration to which the company expects to be entitled from a customer, net of returns and allowances, trade discounts and volume rebates. Revenue includes both fixed and variable consideration. Variable consideration arises on the sale of goods as a result of discounts and allowances given and estimated rebates.

The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amount collected on behalf of third parties and transaction costs. The consideration promised in a contract with a customer is fixed.

67 th ³⁹ Annual Report 2020-21

(All amounts in ` lakhs, unless otherwise stated)

For each performance obligation identified, the Company determines at contract inception that it satisfies the performance obligation over time or satisfies performance obligation at a point in time. When either party to a contract has performed, an entity shall present the contract in the Balance Sheet as a contract asset or a contract liability depending upon the relationship of the Company's performance and customer payment. A receivable is recognised when goods are dispatched or delivered as this is the case of point in time recognition where consideration is unconditional because only passage of time is required.

Tie-up manufacturing arrangements:

The Company has entered into tie-up manufacturing arrangements with the tie-up manufacturers (TMU), where-in TMU's would manufacture and sell branded alcoholic products on behalf of the Company. Accordingly, the transactions of the tie-up units under such arrangements have been recorded as gross revenue, excise duty and expenses as they were transactions of the Company.

(b) Property, plant and equipment

Recognition and initial measurement:

Property, plant and equipment is stated at historical cost less accumulated depreciation and impairment losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are added in the asset's carrying amount/recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of such item can be measured reliably. All repairs and maintenance expenses are charged to the statement of profit and loss in the period in which they are incurred. Upon first-time adoption of Ind AS, the Company has elected to measure all its property, plant and equipment recognised as at 1 April 2016, as per the previous GAAP, and used the carrying amount as its deemed cost on the date of transition to Ind AS.

Capital work-in-progress:

Property, plant and equipment which are not ready for intended use as on the balance sheet date are disclosed as "Capital work-in-progress".

Subsequent measurement (depreciation and useful lives):

Depreciation is provided on a pro-rata basis on the written down value (WDV) method based on estimated useful life prescribed under Schedule II of the Companies Act, 2013 with the exception of plant and equipment of bottling plants that are being depreciated considering a useful life of 20 years based on technical evaluation. Depreciation of land acquired under right of use is provided over their respective lease period or estimated useful life whichever is shorter. Residual values, useful lives and method of depreciation of property, plant and equipment are reviewed at each balance sheet date and any change in them is adjusted prospectively.

Category of asset	Useful life
Buildings	5 - 60 years
Plant and equipment	10 - 40 years
Furniture and fixtures	10 years
Office equipment	3 - 6 years
Vehicles	8 - 10 years

De-recognition:

An item of property, plant and equipment and any significant part initially recognized is de-recognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognized in the statement of profit and loss, when the asset is derecognized.

Intangible assets

(i) Recognition and measurement

Acquired Intangible assets: Intangible assets are initially measured at cost and subsequently measured at cost less accumulated amortisation and any accumulated impairment losses.

Internally generated intangible assets: Expenditure pertaining to research is expensed out as an when incurred. Expenditure incurred on development is capitalised if such expenditure leads to creation of an asset, otherwise such expenditure is charged to statement of profit and loss.

(All amounts in ` lakhs, unless otherwise stated)

(ii) Subsequent expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.

(iii) Amortisation

Amortisation is the systematic allocation of the cost of intangible assets less their estimated residual values over their estimated useful lives using the straight-line method, and is included in depreciation and amortisation in Statement of Profit and Loss.

(c) Impairment of non-financial assets

Assessment for impairment is done at each balance sheet date when there is an indication that a non-financial asset may be impaired. For the purpose of assessing impairment, smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets/groups of assets is considered as a cash generating unit. If any indication of impairment exists, an estimate of the recoverable amount of the individual asset/cash generating unit is made. Asset/cash generating unit whose carrying value exceeds their recoverable amount are written down to the recoverable amount by recognizing the impairment loss as an expense in the statement of profit and loss. Recoverable amount is higher of an asset's/cash generating unit's fair value less cost of disposal and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset/cash generating unit and from its disposal at the end of its useful life. Assessment is also done at each balance sheet date as to whether there is any indication that an impairment loss recognized for an asset/cash generating unit in any prior accounting periods may no longer exist or may have decreased, based on which a reversal of an earlier recorded impairment loss is recognized in the statement of profit and loss.

(d) Investments in subsidiaries

Investment in subsidiary are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exist, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. The recoverable amount is the higher of an asset's fair value less cost of disposal and value in use. On disposal of the investment, the difference between net disposal proceeds and the carrying amount is recognized in the statement of profit and loss.

(e) Financial instruments

(A) Financial assets

Classification:

The Company classifies its financial assets in the following measurement categories depending on the Company's business model for managing such financial assets and the contractual cash flow terms of the asset.

(i) those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
(ii) those subsequently measured at amortized cost.

For assets measured at fair value, gains or losses are either recorded in the statement of profit and loss or other comprehensive income. Investments in debt instruments are classified depending on the business model managing such investments. The Company re-classifies the debt investments when and only when there is a change in business model managing those assets. For investments in equity instruments which are not held for trading, the Company has made an irrevocable election at the time of initial recognition to account for such equity investments at fair value through other comprehensive income.

Measurement:

At initial recognition, the Company measures a financial asset (other than those carried at fair value through profit or loss) at its fair value plus transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the statement of profit and loss as and when they are incurred.

Debt instruments

Subsequent measurement of debt instruments depends on the Company's business model managing such debt instruments and the contractual cash flow characteristics of the instrument. There are three measurement categories into which the debt instruments are classified:

(i) Amortized cost: Business model managing such asset has the objective to realize the contractual cash flows arising from the asset by holding such asset and the contractual cash flows represent solely payments of principal and interest on the outstanding amount of principal, measured at amortized cost. A gain or loss on a financial asset subsequently measured at amortized cost is recognized in the statement of profit or loss when the asset is de-recognised or impaired.

(All amounts in ` lakhs, unless otherwise stated)

(ii) Fair value through other comprehensive income (FVTOCI): Business model managing such asset has the objective to collect the contractual cash flows arising from such asset and to sale the asset, where such contractual cash flows represent solely payments of principal and interest on the outstanding amount of principal, measured at fair value through other comprehensive income (FVTOCI). Changes in fair value of such instruments are recognized through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognized in the statement of profit and loss. When the financial asset is de-recognised, the cumulative gain or loss previously recognized in OCI is reclassified from equity to statement of profit and loss and recognized in other income.
(iii) Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through profit or loss. Again or loss on a debt investment that is subsequently measured at fair value through profit or loss is recognized in statement of profit and loss in the period in which it arises.

Equity instruments:

The Company classifies all its equity investments at fair value. In case of equity instruments not held for trading, Company's management has made an irrevocable election to present fair value gains and losses on such equity instruments in other comprehensive income and there is no subsequent reclassification of fair value gains and losses to the statement of profit and loss.

Investments in mutual funds:

Investments in mutual funds are measured at fair value through profit and loss.

Interest income:

Interest income is recorded on accrual basis using the effective interest rate (EIR) method.

Dividend income:

Dividend income is recognized when the right to receive dividend is established.

Impairment:

The Company assesses the expected credit losses for its financial assets at amortized cost and FVTOCI debt instruments. Impairment methodology applied depends on whether there has been a significant increase in credit risk and the loss amount assessed depends upon past events, present conditions and future economic scenario.

For trade receivables only, the Company applies the simplified approach required by Ind AS 109 which allows loss allowance to be recognized at an amount equivalent to the lifetime expected credit losses from the initial recognition of such receivables irrespective of whether there has been a significant increase in credit risk.

Offsetting:

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company has legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and to settle the liability simultaneously.

De-recognition:

Afinancial asset is de-recognized when:

(i) Contractual right to receive cash flows from such financial asset expires;
(ii) Company transfers the contractual right to receive cash flows from the financial asset; or
(iii) Company retains the right to receive the contractual cash flows from the financial asset, but assumes a contractual obligation to pay such cash flows to one or more recipients.

Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards associated with the ownership of the financial asset. In such cases, the financial asset is de-recognized. Where the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not de-recognized.

Where the Company has neither transferred nor retained substantially all risks and rewards of ownership of the financial asset, the financial asset is de-recognised if the Company does not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognized to the extent of continuing involvement in such financial asset.

(All amounts in ` lakhs, unless otherwise stated)

Financial liabilities

Financial liabilities: Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortised cost or FVTPL. Afinancial liability is classified as at FVTPLif it is classified as heldfor-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPLare measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.

Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the statement of profit and loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment and amortised over the period of the facility to which it relates.

Borrowings are derecognized from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in statement of profit and loss as other gains or (losses).

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

Derivatives

The Company enters into derivative financial instruments, primarily foreign exchange forward contracts, to manage its exposure to foreign exchange risks.

Derivatives are initially recognised at fair value and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gains/losses is recognised in the statement of profit and loss.

(f) Government grants and subsidies

Grants and subsidies from the government are recognized when there is reasonable certainty that the grant or the subsidy will be received and the conditions attached to such grant will be complied. When the grant or the subsidy relates to a revenue item, it is recognized as income over the period necessary to match them on a systematic basis to the costs which they intend to compensate. Where the grant or the subsidy relates to a capital asset, it is initially recorded as deferred revenue income and subsequently recognized as income in the statement of profit and loss, over the remaining useful life of the related asset.

Income from export incentives:

Income from export incentives such as Merchandise Export from India Scheme (MEIS) and duty drawback are recognized on accrual basis.

(g) Borrowing costs

Borrowing costs that are directly attributable to the acquisition or construction of qualifying asset are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get itself ready for the intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred. Borrowing costs include exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

(h) Inventories

Raw materials, packing materials, work-in-progress, stores and spares, finished goods and stock-in-trade are valued at lower of cost and net realizable value. However, materials and other items held for use in production of inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost.

Cost of inventories comprises all costs of purchase, duties, taxes (other than those subsequently recoverable from the tax authorities), cost of conversion and all other costs incurred in bringing the inventories to their present location and condition. In determining the cost, weighted average cost method is used. In determining the cost of manufactured finished goods and work-in-progress an appropriate share of fixed and variable production overheads, excise duty as applicable and other costs incurred in bringing the inventories to their present location and condition. Fixed production overheads are allocated on the basis of normal capacity of production facilities. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. The comparison of cost and net realisable value is made on an item-by-item basis. Adequate allowance is made for obsolete and slow moving items.

(All amounts in ` lakhs, unless otherwise stated)

(i) Cash and cash equivalents

Cash and cash equivalents comprise of cash-in-hand and demand deposits with banks. The Company considers it's highly liquid, short-term investments (having original maturity less than three months) which can be readily converted to known amount of money and subject to insignificant risks arising from changes in their fair values, as cash equivalents. Accordingly time deposits with banks, having original maturity less than three months, is considered as cash equivalent.

The standalone statement of cash flows, cash and cash equivalent consists of cash and short term deposits, as defined above, net of outstanding bank overdraft as they are considered an integral part of the company's cash management.

(j) Assets held for sale

Assets are classified as held for sale under current assets if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable and is expected to be sold within one year from the balance sheet date. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits and financial assets which are specifically exempt from this requirement.

(k) Foreign currency transactions

Functional currency and presentation currency:

The financial statements are presented in Indian Rupees (i.e., INR), the functional currency of the Company. Functional currency is the currency of the primary economic environment in which the Company operates.

Transactions and balances with value below the rounding off norm adopted by the Company have been reflected as '0' in the relevant notes to these financial statements.

Transactions and balances:

Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the date of the transaction. Foreign exchange gains and losses from settlement of these transactions, and from translation of monetary assets and liabilities at the exchange rates prevailing on the balance sheet dates are recognized in the statement of profit and loss.

(l) Employee benefits expense

Short-term employee benefits:

Short-term employee benefit obligations are measured on an undiscounted basis and is expensed as the related service is provided. Aliability is recognised for the amount expected to be paid eg, under short term cash bonus, if the Company has the present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the amount of obligation can be estimated reliably.

The Company provides defined contribution plans for post-employment benefits in the form of provident fund and superannuation fund administered by Regional Provident Fund Commissioner and Life Insurance Corporation of India respectively. The Company's contributions to defined contribution plans are charged to the statement of profit and loss as and when incurred. Provident and superannuation funds are classified as defined contribution plans as the Company has no further obligation beyond making the contributions, even if the assets of the fund is not enough to pay all the employee benefits.

Defined benefit plans and other long term benefits:

Liability for compensated absence and gratuity is provided on the basis of actuarial valuation as at the balance sheet date carried out by an independent actuary using Projected Unit Credit (PUC) method. It is used to measure the plan liabilities, including death-in-service and incapacity benefits. Plan liability is the actuarial present value of the 'defined benefit obligations' as on the balance sheet dates for all active members.

Gratuity plan is classified as post retirement employee benefit and hence the current service cost including net interest cost / (income) is recognized in the statement of profit and loss under "employee benefit expenses" during the period in which it is incurred. Remeasurement of defined benefit obligation due to change in actuarial assumptions or experience adjustments or expected return on plan assets (to the extent not covered under net interest on net defined benefit obligation) is recognized under other comprehensive income and not subsequently reclassified to the statement of profit and loss.

Liability for compensated absence has been classified as long-term employee benefit and the entire cost incurred on such plan is recognized in the statement of profit and loss under "employee benefit expenses" during the period in which it is incurred.

(All amounts in ` lakhs, unless otherwise stated)

Termination benefits

Termination benefits are recognized as an expense as and when incurred. The Company recognizes termination benefits at the earlier of the following dates:

(i) when the Company can no longer withdraw the offer of those benefits; or
(ii) when the Company recognizes a restructuring cost within the scope of Ind AS 37.

Termination benefits falling due more than 12 months after the end of the reporting period are discounted to their present value.

(m) Leases

As a lessee

The Company's lease asset classes primarily consist of leases for land and buildings. The Company assesses whether a contract contains a lease, at inception of a contract. Acontract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii)the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases) and low value leases. For these shortterm and low-value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. The Right Of Use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. ROU assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related ROU asset if the Company changes its assessment of whether it will exercise an extension or a termination option. Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

As a lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the ROU asset arising from the head lease. For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

Effective 1 April 2019, the Company has adopted Ind AS -116 'Leases' using the modified retrospective approach. This has resulted in recognition of 'right-of-use' asset and lease liability as on 1 April 2019. The adoption of the standard did not have any material impact on standalone financial statements.

(n) Provisions, contingent liabilities and contingent assets

Provisions:

Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of such obligation can be made. Provisions are measured at the best estimate of the expenditure required to settle the obligation at the balance sheet date. If the effect of time value of money is material i.e., the obligation is to be settled after a period of 12 months from the end of the reporting date, such provisions are discounted to reflect its present value using a pre-tax discounting rate that reflects the current market assessments of time value of money and risks specific to the obligation. When discounting is used, increase in the provision amount due to the passage of time is recognized as finance cost.

(All amounts in ` lakhs, unless otherwise stated)

Contingent liabilities:

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent assets:

Contingent assets are not recognized in the financial statement. However when there is a virtual certainty that an inflow of resources embodying economic benefits will arise from the contingent asset, such asset and the related income is recognized in the period in which the changes occurred.

(o) Income tax

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination or to an item recognised directly in equity or in other comprehensive income.

Current tax in the Statement of Profit and Loss is provided as the amount of tax payable (receivable) in respect of taxable income (loss) for the period using tax rates and tax laws enacted during the period, together with any adjustment to tax payable in respect of previous years.

Deferred tax is recognized on temporary differences arising from the tax bases of assets and liabilities and their respective carrying amounts in the standalone financial statements. Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction that does not result from a business combination and at the time of such transaction, affects neither the accounting profit or loss nor taxable profit (tax loss) for the period. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the liability is settled.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available against which those temporary differences/losses can be utilized. Minimum alternate tax ('MAT') credit entitlement is recognized as an asset only when and to the extent there is convincing evidence that normal income tax will be paid during the specified period. In the year in which MATcredit becomes eligible to be recognized as an asset, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT credit entitlement. This is reviewed at each balance sheet date and the carrying amount of MAT credit entitlement is written down to the extent it is not reasonably certain that normal income tax will be paid during the specified period.

Current tax assets and tax liabilities are offsetted where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.

(p) Segment reporting

Operating segments are identified in a manner consistent with the internal reporting presented to the chief operating decision maker (CODM).

The chief operating decision maker (CODM) is a function which regularly reviews the financial results of the operating segments for the purpose of assessing its performance and allocation of funds to such segments. The Company identifies its Managing Committee as the chief operating decision maker. As per Ind AS 108, the Company has identified the following operating segments:

(i) Spirit, spirituous beverages and allied products

(ii) Marine products

"Unallocated" include revenue and expenses that relate to initiatives / costs attributable to the enterprise as a whole and are not attributable to segments.

(q) Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the balance sheet date of material size or nature are only disclosed.

(r) Earnings per share

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events that have changed the number of outstanding equity shares, without a corresponding change in the resources. For the purpose of calculating diluted earnings per share, net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares. As on the balance sheet dates, the Company has no dilutive potential equity shares.

(All amounts in ` lakhs, unless otherwise stated)

3 (a) Property, plant and equipment

	Owned assets			Leased assets
	Freehold land	Buildings	Plant and equipment	Furniture and fixtures	Office equipment	Vehicles	Land	Total
Gross Block (refer note (i) below)
Balance as at 31 March 2019	1,074	2,574	14,737	84	196	158	438	19,261
Additions	6	51	486	17	44	19	61	684
Less: Disposal	-	48	160	0	7	23	-	238
Balance as at 31 March 2020	1,080	2,577	15,063	101	233	154	499	19,707
Additions	-	545	538	14	35	19	-	1,151
Less: Disposal	-	-	1	0	1	1	-	3
Balance as at 31 March 2021	1,080	3,122	15,600	115	267	172	499	20,855
Accumulated Depreciation and Impairment (refer note (i) below)
Balance as at 31 March 2019	-	647	4,885	34	135	84	25	5,810
Charge for the year	-	240	1,429	15	42	28	16	1,770
Less: Disposal/adjustments	-	1	69	0	6	17	-	93
Less: Impairment reversal	-	43	18	-	-	-	-	61
Balance as at 31 March 2020	-	843	6,227	49	171	95	41	7,426
Charge for the year	-	168	1,229	14	37	18	16	1,482
Less: Disposal/adjustments	-	-	0	0	1	1	-	2
Balance as at 31 March 2021	-	1,011	7,456	63	207	112	57	8,906
Net Block
Balance as at 31 March 2020	1,080	1,734	8,836	52	62	59	458	12,281
Balance as at 31 March 2021	1,080	2,111	8,144	52	60	60	442	11,949

Notes:

i) The Company had adopted the carrying cost as on the date of transition to Ind AS as its deemed cost as at 1 April 2016 and accordingly adjusted its gross block and accumulated depreciation and impairment.

ii) The Company's marine product processing plant at Kolkata has been erected on land obtained under long term lease of ninety-nine years, valid upto 9 August 2093 through license from Kolkata Metropolitan Development Authority, for which formal lease deed is yet to be executed.The gross book value as at 31 March 2021: **66 lakhs**(31 March 2020:66 lakhs) and net block as at 31 March 2021: **62 lakhs**(31 March 2020:63 lakhs).

iii) Plant and equipment includes electrical equipment and installations and laboratory equipment.

iv) The Company, based on technical evaluation, has assessed and concluded that none of the components of property, plant and equipment have an useful life which is different from that of the principal asset.

v) Right of Use includes lands acquired under long term lease ranging from 30-99 years. It represents payments made and costs incurred in connection with acquisition of leasehold rights and are being amortized over the period of lease. Net block as at 31 March 2021: **386 lakhs**(31 March 2020:400 lakhs).

vi) Right of Use includes land taken on lease for a period of 20 years. The details of values recorded and corresponding depreciation charge are given as under:

	Leasehold land
	31 March 2021	31 March 2020
Gross Block as at the beginning of the year	61	-
Add: Additions during the year	-	61
Less: Disposal during the year	-	-
Gross Block as at the end of the year	61	61
Accumulated Depreciation and Impairment as at the beginning of the year	3	-
Add: Charge for the year	2	3
Less: Disposal/adjustments	-	-
Accumulated Depreciation and Impairment as at the end of the year	5	3
Net block as at the end of the year	56	58

75 th ³⁹ Annual Report 2020-21

(All amounts in ` lakhs, unless otherwise stated)

			As at 31 March 2021		As at 31 March 2020
3	(b) Capital work-in-progress
	Opening balance as at the beginning of the year		382		171
	Additions made during the year		1,621		584
	Transferred to property, plant and equipment		(999)		(373)
	Closing balance as at the end of the year		1,004		382
3	(c) Intangible assets under development
	Opening balance as at the beginning of the year		63		-
	Additions made during the year Transferred to intangible assets		21 -		63 -

	Closing balance as at the end of the year		84		63
			As at 31 March 2021		As at 31 March 2020
		Nos.	Amount	Nos.	Amount
4	Investments
(a)	Non-current
	Investments in equity instruments (Subsidiary)
	Unquoted
	(Measured at cost)
	IFB Agro Marine FZE [(Face value AED 1.50 lacs (31 March 2020: AED 1.50 lacs) per share, fully paid-up)] (refer note (iii) below)	18	489	18	489
			489		489

	Investments in equity instruments (others)
	Quoted
	(Designated at fair value through other comprehensive income (FVTOCI))
	IFB Industries Limited (Face value ₹ 10 per share, fully paid-up)	172,733	1,920	172,733	458
			1,920		458
	Unquoted
	(Designated at fair value through other comprehensive income)
	CPL Projects Limited (Face value ₹ 10 per share, fully paid-up)	90,000	3	90,000	3
	Zenith Investments Limited (Face value ₹ 10 per share, fully paid-up)	260,000	3	260,000	3
	Asansol Bottling and Packaging Company Private Limited
	(Face value ₹ 100 per share, fully paid-up)	23,900	382	23,900	362
	Nurpur Gases Private Limited (Face value ₹ 10 per share, fully paid-up)	145,000	86	145,000	55
	IFB Automotive Private Limited (Face value ₹ 10 per share, fully paid-up)	955,998	1,599	955,998	1,201
			2,073		1,624
			4,482		2,571

(All amounts in ` lakhs, unless otherwise stated)

4 Investments (cont'd)

	As at 31 March 2021	As at 31 March 2020
Other disclosures for non-current investments:
(a) Aggregate amount of quoted investments and market value thereof	1,920	458
(b) Aggregate amount of unquoted investments	2,562	2,113

Notes:

i) As at the balance sheet date, none of the investments in equity instruments have been impaired.

ii) The investments in equity instruments are for long-term strategic purposes and not held for trading. Under Ind AS 109, the Company has chosen to designate these investments as equity instruments at fair value through other comprehensive income as the management believes that this provides a more meaningful presentation for non-current investments. Based on the aforesaid designation, changes in fair values are accumulated in other equity under the head "equity instruments through other comprehensive income". The Company transfers the accumulated balance from this account to retained earnings when such equity instruments are derecognised.
iii) The Company has measured its investment in subsidiary at cost in accordance with ind AS 27 Separate Financial Statements.

		As at 31 March 2021		As at 31 March 2020
		Nos.	Amount	Nos.	Amount
(b)	Current
	Investments in mutual funds
	Unquoted
	(Measured at fair value through profit and loss)
	ICICI Pruential Equity Arbitrage Fund -Direct-Growth	3,642,102.04	1,022	-	-
	Kotak Equity Arbitrage Fund -Direct- Growth	3,379,725.30	1,023	-	-
	DSP Overnight Fund - Direct - Growth	-	-	47,169.05	504
	Franklin India Overnight Fund -Direct-Growth	-	-	191,756.92	2,004
	HSBC Overnight Fund - Direct - Growth	-	-	67,686.62	707
	ICICI Prudential Overnight Fund-Direct-Growth	-	-	1,434,024.00	1,545
	Invesco India Overnight Fund - Direct-Growth	-	-	143,281.93	1,447
	Kotak Overnight Fund - Direct- Growth	-	-	169,155.80	1,803
			2,045		8,010
	Other disclosures for current investments:
	Aggregate amount of unquoted investments		2,045		8,010

(All amounts in ` lakhs, unless otherwise stated)

		As at 31 March 2021	As at 31 March 2020
5	Loans
(a)	Non-current
	(Unsecured, considered good)
	Security deposits	5	6
		5	6
(b)	Current
	(Unsecured, considered good)
	Security deposit	15	13
	Loan to employees	15	19
		30	32

6	Other financial assets
(a)	Non-current
	(Unsecured, considered good)
	Bank deposits with remaining maturity more than 12 months (*)	26 26	26 26
(*)	Bank deposits are under lien with various Government authorities.
(b)	Current
	(Unsecured, considered good)
	Insurance and other claim receivable	98	-
	Other advances	109	131
		207	131
7	Other assets
(a)	Non-current
	(Unsecured, considered good)
	Capital advances	412	380
	Advances other than capital advances:
	- Security deposits	-	6
	- Amount deposited with government authorities	263	15
	- Advance to service provider Excess amount paid for defined benefit plans (refer note 31)	0 18	0 67
	Excess amount paid for other long-term employee benefit (refer note 31)	14	-
		707	468

(All amounts in ` lakhs, unless otherwise stated)

		As at 31 March 2021	As at 31 March 2020
7	Other assets (cont'd)
(b)	Current
	(Unsecured, considered good)
	Advances other than capital advances:
	- Advance to vendors (#)	468	476
	- Advance to tie-up manufacturing units	100	153
	- Prepaid expenses	478	444
	Balances with government authorities (*)	3,650	1,827
	Export incentives receivable	362	270
		5,058	3,170

(#) Advance to vendors include advances to Nurpur Gases Private Limited, a private company in which a director is a member: : As at 31 March 2021 : Nil(As at 31 March 2020: `67 lakhs)

(*) Balances with government authorities primarily include amounts realisable from goods and services tax, state excise authorities and transitional credit carried forward under the goods and services tax regime. These are expected to be realised within a period of one-year, by off-setting the same against the output goods and services tax liability on goods supplied by the Company. Accordingly these balances have been classified as current assets.

		As at 31 March 2021	As at 31 March 2020
8	Inventories
	(valued at lower of cost and net realisable value)
	Raw materials (including packing materials) (##)	3,235	2,945
	Work-in-progress	127	184
	Finished goods (**)	2,543	4,992
	Stock-in-trade	375	356
	Stores and spares	382	362
		6,662	8,839

(##) includes stock in transit **13 lakhs** (31 March 2020:68 lakhs)

(**) includes finished goods in transit **331 lakhs** (31 March 2020:272 lakhs).

Note: The cost of inventories recognised as an expense during the year is disclosed under note 20,21 and 22. The cost of inventories recognised as an expense includes **132 lakhs**(31 March 2020:425 lakhs) in respect of write- downs of inventory to its net realisable value.

(All amounts in ` lakhs, unless otherwise stated)

		As at 31 March 2021	As at 31 March 2020
9	Trade receivables
	Considered good, secured	988	810
	Considered good, unsecured	10,783	7,395
		11,771	8,205
	Less: Loss allowance	1,400	1,729
		10,371	6,476
	Movement in allowance for doubtful debts during the year is as follows:
	Balance at the beginning of the year	1,729	515
	Add: Loss allowance (net)	(329)	1,214
		1,400	1,729

		As at 31 March 2021	As at 31 March 2020
10	Cash and bank balances
(a)	Cash and cash equivalents
	Cash on hand	18	47
	Balances with banks
	- In current accounts	433	871
	Bank deposits with original maturity less than 3 months	9,780	850
		10,231	1,768
(b)	Bank balances other than (a) above
	Bank deposits with original maturity more than 3 months but remaining maturity less than 12 months (*)	141	93
	Accrued interest on bank deposits	8	0
		149	93

(*) Bank deposits are under lien with various Government authorities.

(All amounts in ` lakhs, unless otherwise stated)

			As at 31 March 2021		As at 31 March 2020
		Number	Amount	Number	Amount
11	Equity share capital
	Authorized share capital
	Equity shares of ₹ 10 each	12,000,000	1,200	12,000,000	1,200
		12,000,000	1,200	12,000,000	1,200
	Issued, subscribed and fully paid up
	Equity shares of ₹ 10 each	9,367,111	937	9,367,111	937
		9,367,111	937	9,367,111	937

(a) Reconciliation of the number of shares outstanding at the beginning and at the end of the year

There has been no change in equity share capital during the year.

(b) The rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of ₹ 10 per share. Such holder of equity share is entitled to one vote per share. In the event of liquidation, the equity shareholders are entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholdings. During this financial year the Company has not proposed/declared any dividend. However, if any dividend is proposed by the Board of Directors, it will be subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

(c) Details of shareholders holding more than 5% of the shares in the Company:

		As at 31 March 2021
Name of the shareholders	Number	Percentage	Number	Percentage
IFB Automotive Private Limited	3,602,900	38.46	3,602,900	38.46
Nurpur Gases Private Limited	785,543	8.39	785,543	8.39
SICGIL India Limited (*)	683,100	7.29	683,100	7.29

(*) SICGILIndia Ltd (SICGIL) along with Persons Acting in Concert (PAC) (collectively referred to as SICGILgroup) holds 15.76% equity shares in the Company. However, the SICGIL group's voting rights were restricted to 5% of the equity share Capital of the Company vide National Company Law Tribunal ('NCLT') order dated 5 July 2017. In an appeal, the National Company Law Appellate Tribunal ('NCLAT') vide its order dated 6th December 2018 set aside the NCLT's order. The Company has preferred an appeal before the Hon'ble Supreme Court. The Hon'ble Supreme Court has ordered for status quo to be maintained.
(d) No additional shares were allotted as fully paid up by way of bonus shares or pursuant to contract without payment being received in cash during the last five years. Further, none of the shares were bought back by the Company during the last five years.

(All amounts in ` lakhs, unless otherwise stated)

		As at 31 March 2021	As at 31 March 2020
12	Other equity
(a)	Other reserves
	Securities premium	3,194	3,194
	General reserve	285	285
	Retained earnings	37,366	32,642
(b)	Other comprehensive income	3,322	1,687
		44,167	37,808

Nature and purpose of reserves:

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilized in accordance with the provisions of Section 52 of the Companies Act, 2013.

General reserve

General reserve has been created out of profits earned by the Company in the previous years. General reserves are free reserves and can be utilised in accordance with the requirements of the Companies Act, 2013.

Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfer to general reserves, dividends and other distributions made to the shareholders.

Movement in the retained earnings during the year is as given below:

	As at 31 March 2021	As at 31 March 2020
Balance at the beginning of the year	32,642	30,351
Add: Profit for the year	4,700	2,346
Add: Remeasurement of post-employment benefit obligations and taxes there on	24	(55)
Balance at the end of the year	37,366	32,642

Other comprehensive income

The Company has elected to recognize changes in fair value of certain investments in equity instruments in other comprehensive income. The changes are accumulated within "Equity instruments through OCI" under other comprehensive income.

Movement in the other comprehensive income during the year is as given below:

	As at 31 March 2021	As at 31 March 2020
Balance at the beginning of the year	1,687	2,670
Add: movement in OCI during the year, net	1,659	(983)
Less: Remeasurement of post-employment benefit obligations and taxes there on	(24)	-
Balance at the end of the year	3,322	1,687

(All amounts in ` lakhs, unless otherwise stated)

240
240

(*) Represents an amount obtained as a part of sale and lease back agreement entered into by the Company with Rajasthan State Electricity Board (RSEB) which expired on 28 February 2004. In terms of the said agreement, the residual value of the assets under lease acquired and leased back to RSEB (under physical possession of RSEB) is required to be adjusted against the corresponding amount of security deposit as mentioned above. Company's appeal towards certain claims against RSEB is pending before the Hon'ble Jaipur High Court.

(b) Current

Security deposits repayable on demand	37	43
Creditors for property, plant and equipments (inclusive of retentions) (#)	219	90
Derivative instruments	1	116
Dues to employees	334	297
	591	546

(#) Creditors for property, plant and equipments include 31 March 2021 :Rs.33 lakhs(31 March 2020: Nil) dues to micro and small enterprises.

(All amounts in ` lakhs, unless otherwise stated)

				As at 31 March 2021	As at 31 March 2020
14	Deferred taxes assets / liabilities (net)
	Deferred tax liabilities			1,729	1,604
	Less: Deferred tax assets			841	1,123
				888	481
		As at 31 March 2020	Recognised in statement of profit or loss	Recognised in Other Comprehensive Income	As at 31 March 2021
	Deferred tax liabilities:
	On property, plant and equipment	1,494	(164)	-	1,330
	On fair valuation of equity instruments through OCI	108	-	275	383
	On fair valuation of investments in mutual funds	2	14	-	16
	On excess amount paid for other long-term employee benefit	-	-	-	-
		1,604	(150)	275	1,729
	Deferred tax assets:
	On provision for doubtful debts	604	115	-	489
	On deferred revenue income	11	(1)	-	12
	On temporary differences	17	-	-	17
		632	114	-	518
		As at 31 March 2020	Recognised in statement of profit or loss	Utilised during the year	As at 31 March 2021
	Deferred tax assets:
	On unutilised MAT credits	491	(176)	344	323
		491	(176)	344	323

Note:

Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

(All amounts in ` lakhs, unless otherwise stated)

	As at 31 March 2021	As at 31 March 2020
Other liabilities
Non-current
Deferred revenue income (*)	30	32
	30	32

(*) Deferred revenue income represents capital subsidy of ₹ 50 lakhs received by the Company on 30 December 2016 from Ministry of New and Renewable Energy (MNRE), Government of India, in respect of its 2.5 MW co-generative power plant commissioned on 28 March 2014. An amount of ₹ 2 lakhs(31 March 2020: ₹ 2 lakhs) has been recognized as income for the current year.

Current
Advance from customers (#)	188	293
Statutory dues	1,503	542
Other accruals	27	276
	1,718	1,111

(#) The advance received from customers in the previous period have been recognised as revenue in the current year. Similarly, the advance from customer as at the balance sheet date will be recognised in the subsequent year.

		As at 31 March 2021	As at 31 March 2020
16	Trade payables
	Dues of micro and small enterprises	357	369
	Dues of creditors other than micro and small enterprises	3,989	2,907
		4,346	3,276
	Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 are provided as under for the year 2019-20, to the extent the Company has received intimation from the "Suppliers" regarding their status under the Act
	Dues to micro and small enterprises
	a) Principal amount due to micro and small enterprise (#)	390	369
	b) Interest due on above	-	-
	c) Interest paid by the Company in terms of Sections 16 of the Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during the period	-	-
	d) Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the period) but without adding interest specified under the Micro, Small and Medium Enterprise Act, 2006.	-	-
	e) Interest accrued and remaining unpaid at the end of each accounting year	-	-
	f) Interest remaining due and payable even in succeeding years, until such date when the interest dues as above are actually paid to the small enterprises	-	-

Note:

Dues to micro and small enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

(#) Principal Account due includes capital creditors: 31 March 2021: `33 lakhs(31 March 2020: Nil) due to micro and small enterprie.

(All amounts in ` lakhs, unless otherwise stated)

		As at 31 March 2021	As at 31 March 2020
17	Provisions
	Current
	Provision for compensated absences	-	4
	Provision for legal matters (*)	189	189
		189	193
(*)	As the Company is not in a position to ascertain the exact timing of expected future cash outflows required to settle the obligations for legal matters, it has been classified under current liabilities, without considering their time value of money.
	Movement in provision for legal matters during the year is as follows:
	Balance at the beginning of the year Add: provisions during the year	189 -	200 -
	Less: provisions reversed / paid during the year	-	(11)
	Balance at the end of the year	189	189

		Year ended 31 March 2021	Year ended 31 March 2020
18	Revenue from operations
	Sale of products (inclusive of excise duty) (*)	168,522	186,857
	Other operating revenue
	- Scrap sales - Export incentives	165 628	148 1,790
	- Others	30	47
		169,345	188,842
	(*) refer to note 36
	Details of sale of products (inclusive of excise duty)
	Manufactured products
	- Spirit, spirituous beverages and allied products (i) Alcohol including Indian made Indian liquor and other allied products	142,929	140,759
	(ii) Others	3,827	4,988
	- Marine
	(i) Maine products	11,658	24,420
	(ii) Others	341	-
	Traded products
	- Spirit, spirituous beverages and allied products
	Others	30	20
	- Marine Marine feed and other allied products	9,737	16,670

		168,522	186,857
19	Other income
	Interest income: - Financial assets measured at amortised costs	39	77
	Other gains and losses
	- Net gain arising on sale of financial assets measured at FVTPL	355	324
	- Net gain arising on measurement of derivatives at FVTPL	116	-
	- Net gain arising on remeasurement of financial assets measured at FVTPL	45	4
	Others - Rental income	348	385
	- Net gain on foreign currency transactions and translations (net)	-	74
	- Recovery of bad debts	4	-
	- Liabilities no longer required written back - Writeback of loss allowance (net)	112 329	99 -
	- Gain on sale of property, plant and equipment (net)	0	-
	- Other miscellaneous income	21	34
	- Insurance claim received	262	124
		1,631	1,121

(All amounts in ` lakhs, unless otherwise stated)

		Year ended 31 March 2021	Year ended 31 March 2020
20	Cost of materials consumed
	Raw material consumed (including packing materials)
	Opening stock	2,945	2,069
	Add: Purchases	34,703	58,019
	Less: Closing stock	3,235	2,945
		34,413	57,143
21	Purchases of stock-in-trade
	Marine food and feed supplements	8,871	14,867
	Others	27	18
		8,898	14,885
22	Changes in inventories of finished goods, work-in-progress and stock-in-trade
	Stock at the beginning of the year (including stock-in-transit)
	Finished goods	4,992	3,512
	Work-in-progress	184	178
	Stock-in-trade	356	416
		5,532	4,106
	Stock at the end of the year (including stock-in-transit)
	Finished goods	2,543	4,992
	Work-in-progress	127	184
	Stock-in-trade	375	356
		3,045	5,532
	Difference in excise duty on finished goods	5	381
		2,492	(1,045)
23	Employee benefits expense
	Salaries, wages and bonus	3,712	4,068
	Contribution to provident funds and other funds (Refer note 31)	454	425
	Staff welfare expenses	251	322
		4,417	4,815
24	Finance costs
	Interest on financial liabilities carried at amortised costs (*)	5	173
	Interest expense on lease liabilities	2	5
		7	178

(*) Calculated using effective interest rate (EIR) method.

(All amounts in ` lakhs, unless otherwise stated)

		Year ended 31 March 2021	Year ended 31 March 2020
25	Depreciation and amortisation expenses
	Depreciation of property, plant and equipment	1,482	1,770
		1,482	1,770
26	Other expenses
	Advertisement and sales promotion expenses	740	567
	Consumption of stores and spares	540	487
	Power and fuel	3,321	4,194
	Rent	939	888
	Repair and maintenance:
	- Buildings	90	32
	- Plant and Machinery	221	277
	- Others	140	107
	Insurance	337	374
	Rates and taxes	816	353
	Legal and professional expenses	341	362
	Office expenses	777	1,009
	Travel and conveyance expenses	198	478
	Auditor's remuneration	29	40
	Freight outward	1,797	2,636
	Contract charges	2,416	3,949
	Corporate Social Responsibility ('CSR') expenditure	83	67
	Loss on sale of property, plant and equipment, net	-	11
	Write off of property, plant and equipment	0	46
	Bad debts written off	298	75
	Loss allowance	-	1,214
	Loss on foreign currency transactions and translations, net	64	-
	Net loss arising on measurement of derivatives at FVTPL	-	120
	Directors sitting fees Miscellaneous expenses	10 356	7 554

		13,513	17,847
(a)	Auditors' remuneration
	Statutory audit (*)	26	35
	Tax audit	-	2
	Other services (*)	1	1
	Out of pocket expenses	2	2
		29	40
(*)	Auditor fees includes in 31 March 2021: Nil (31 March 2020: `10 lakhs) as payment to erstwhile auditors
(b)	Details of Corporate Social Responsibility (CSR) expenditure
	Gross amount required to be spent by the Company during the year.	80	85
	Amount spent during the year:
	Construction / acquisition of any assets	-	-
	Purposes other than above	83	67
	Amount accrued but not paid during the year	-	-

88 th ³⁹ Annual Report 2020-21

(All amounts in ` lakhs, unless otherwise stated)

		Year ended 31 March 2021	Year ended 31 March 2020
27	Tax expenses
(a)	Income tax in the statement of profit and loss:
	Current tax
	Income tax charge for the year Income tax charge / (reversal) for earlier years	1,293 0	533 (176)

		1,293	357
	Deferred tax
	Deferred tax for the year Unused tax credit entitlement (MAT credit entitlement) for the year	(36) -	(725) (21)
	Unused tax credit entitlement (MAT credit entitlement) for earlier years	(176)	(153)
		(212)	(899)

(b)	Income tax recognised in other comprehensive income comprises:
	Current tax
	On remeasurement of post-employment benefit obligations	13	(30)
	(A)	13	(30)
	Deferred tax
	On fair value gains on investments in equity instruments	275	(112)
	(B)	275	(112)
	(A) + (B)	288	(142)
(c)	Reconciliation of income tax expense and the accounting profit for the year:
	Profit before tax	5,781	1,804
	Enacted tax rates (%)	34.94%	34.94%
	Income tax expense calculated at corporate tax rate	2,020	630
	Deductions under chapter VIA of the Income Tax Act, 1961	(748)	(807)
	Impact on account of non-deductible expenses	29	33
	Fair value measurements of investments in mutual funds Adjustment of tax relating to earlier years	0 (176)	(24) (329)
	Impact due to change in future tax rate	-	(1)
	Additional allowances under the Income Tax Act, 1961	(16)	(4)
	Difference in opening written down value of property,
	plant and equipment as per Income tax	(25)	8
	On opening leave fund asset Other adjustments	- (3)	(48) -
	Total income tax expense as per the statement of profit and loss	1,081	(542)

28	Earnings per equity share (EPS)
	Net profit attributable to equity shareholders (in ₹ lakhs)	4,700	2,346
	Weighted average number of equity shares outstanding during the year	9,367,111	9,367,111
	Face value per share (in ₹)	10	10
	Earnings per share (in ₹):
	- Basic earnings per equity share	50.18	25.05
	- Diluted earnings per equity share	50.18	25.05

89 th ³⁹ Annual Report 2020-21

(All amounts in ` lakhs, unless otherwise stated)

29 Leases

(a) Leases as a Lessee

(i) Right of use assets

The Company has acquired lands on lease. Certain lease land acquired by the Company are recorded under property, plant and equipment (seperately from other owned assets) at an amount equal to the entire lease rentals paid upfront (including intial direct costs) at the time of initiation of this lease. Such lease arrangement range over a period of 30-99 years. Other lease arrangements of land whose payment are to be made on periodic basis has been recognised as 'Right of use assets' for the purpose on Ind AS 116, Leases. These lease land arrangement range over a period of 20 years.

Reconciliation of liabilities from financing activities	As at
	31 March 2021	31 March 2020
Opening Balance	63	-
Lease liability recognised during the year	-	61
Interest expenses recognised during the year	2	5
Lease payments reflected in the Statement of Cash Flow	(5)	(3)
Closing Lease liabiltity	60	63

(ii) Short term / Low value leases

The Company has entered into lease arrangements in respect of factory lands, office premises, other buildings and manufacturing facilities which are for a period generally ranging from 11 months to 6 years. All such lease arrangements are cancellable by giving a short notice of 3 to 6 months. But these are usually renewable on mutually agreed terms. All these arrangements are considered as short term lease or leases of lowvalue assets for the purpose of Ind AS 116, Leases and are not recognised as Right of use assets. The expenses incurred for short term lease during 31 March 2021: **939 lakhs**(31 March 2020:888 lakhs) included in Rent under Note 26 other expenses.

(b) Leases as lessor

The Company entered into operating leases on its office premises, plant and machinery.

Rental income recognised by the Company during the financial year 2020-21 **348 lakhs**(2019-20 is385 lakhs).

All the agreement entered into are short term in nature and are cancellable at a notice within three to six months, therefor the maturity analysis of lease payments are not reported here.

30 Contingent liabilities and commitments

(a) Contingent liabilities

	Particulars	As at	As at
		31 March 2021	31 March 2020
	Claims against the Company not acknowledged as debts:
(a)	State Excise demands for various years primarily for excess shortage/wastage of spirit.	1,192	1,192
(b)	State Sales Tax/Central Sales Tax and Value Added Tax demands in the State of West Bengal.	-	2,705
(c)	Kolkata Port Trust (KoPT) - Dispute relating to valuation of rent for rest house at Noorpur.	95	95

Note:

Pending issuance of any show cause notice or demand in pursuance to the search conducted by the Directorate General of Goods and Services Tax Intelligence Unit (DGGI) on 26 June 2020 under section 67(2) of the Central Goods and Services Act, 2017, in respect of the alleged misclassification in respect to sale of Distillers Dried Grain Solubles (DDGS), the company has paid a sum of `225 lakhs under protest and will take necessary legal steps to defend its position.

(b) Commitments

Estimated amount of capital contracts remaining to be executed and not provided for as on the balance sheet date are:

	As at	As at
	31 March 2021	31 March 2020
Capital commitments for property, plant and equipment (net of capital advances given)	1,761	171
Capital commitment for intangible assets	225	90

(All amounts in ` lakhs, unless otherwise stated)

31 Disclosure in accordance with Ind AS-19 on Employee benefits expense

(a) Post-employment benefits plan:

Retirement benefit plans of the Company comprising of Gratuity, Superannuation and Provident Fund consists of both defined benefit plan and defined contribution plan. Other long term employee benefits includes compensated absences subject to certain limits and rules. Gratuity, Superannuation and compensated absences plans are funded through investments in Life Insurance Corporation of India (LICI). Provident fund for all employees are managed through government administrated funds. Gratuity and Superannuation fund is managed by a Board of Trustees who are responsible for overall management of the fund and acts in accordance with the provisions of the respective trust deeds and rules, and in the best interest of the plan participants. The trustees do a periodic review of the solvency of the fund and play a role in long term investments, risk management and funding strategy.

(b) Defined contribution plans

The Provident Fund and Superannuation Fund has been classified as defined contribution plan as the Company has an obligation to pay a fixed amount to the government administered fund and Life Insurance Corporation of India (LICI) respectively and has no further obligation if the assets of such funds are not enough to meet all the employee obligations provided under such plans.

(c) Defined benefit plans

Gratuity plan is a defined benefit plan that provides for lump sum gratuity payment to employees made at the time of their exit by the way of retirement (on superannuation or otherwise), death or disability. The benefits are defined on the basis of their final salary and period of service and such benefits paid under the plan is not subject to the ceiling limit specified in the Payment of Gratuity Act, 1972. Liability as on the balance sheet date is provided based on actuarial valuation done by a certified actuary using projected unit credit method. Board of Trustees administers the contributions made to the gratuity fund and such amounts are solely invested with Life Insurance Corporation of India (LICI).

(d) Other long-term employee benefits

The Company provides for encashment of accumulated leaves standing at the credit of its employees at the time of their exit by way of retirement (on superannuation or otherwise), death or disability, subject to certain limits and rules framed by the Company. Liability is provided based on the number of days of unutilized leave at each balance sheet date based on actuarial valuation done by a certified actuary using projected unit credit method. The Company had funded such plan with Life Insurance Corporation of India (LICI).

The following table summarises the components of defined benefit expense recognized in the statement of profit and loss/other comprehensive income ('OCI') and the funded status and amounts recognised in the balance sheet for the respective plans:

(i) Defined benefits obligations recognised:

Particulars		Gratuity (funded)		Compensated absences (funded)
	As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
Present value of obligation	1,272	1,204	974	927
Fair value of plan assets	1,290	1,271	988	923
Net (assets)/liabilities recognized	(18)	(67)	(14)	4

(ii) Movement in present value of obligation:

Particulars		Gratuity (funded)	Compensated absences (funded)
	As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
Balance at beginning of the year	1,204	996	927	769
Current service cost	91	64	98	79
Interest cost	75	70	57	52
Acquisitions (credit)/cost	2	9	(2)	9
Actuarial (gain)/loss arising from assumption changes	29	51	26	43
Actuarial (gain)/loss arising from experience adjustments	(63)	36	(51)	42
Benefits paid (including benefits directly paid by the Company)	(66)	(22)	(81)	(67)
Balance at end of the year	1,272	1,204	974	927

91 th ³⁹ Annual Report 2020-21

(All amounts in ` lakhs, unless otherwise stated)

(iii) Movement in present value of plan assets:

Gratuity (funded)		Compensated absences (funded)
As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
			907
			62
			-
			(1)
(66)	(22)	-	(45)
1,290	1,271	988	923

		Compensated absences (funded)
		As at	As at
31 March 2021	31 March 2020	31 March 2021	31 March 2020

			79
			(11)
-	-	(27)	86
87	49	69	154

(37)	85	-	-
(37)	85	-	-
	1,271 79 2 4 As at 91 (4)	1,204 85 2 2 Gratuity (funded) As at 64 (15)	923 59 4 2 98 (2)

(v) Remeasurement of the net defined benefit plans to be take to other comprehensive income:

Particulars	Gratuity (funded)		Compensated absences (funded)
	As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
Actuarial (gain)/loss arising from assumption changes	29	51	-	-
Actuarial (gain)/loss arising from experience adjustments	(63)	36	-	-
Return on plan assets lesser than discount rate	(4)	(2)	-	-
Net impact on other comprehensive income before tax	(38)	85	-	-

(vi) Amounts contributed towards defined contribution plans have been recognized in the statement of profit and loss under "Contribution to provident fund and other funds" in Note 23.

(vii) Major categories of plan assets:

Entire assets of both gratuity and compensated absences plans is maintained with the Life Insurance Corporation of India (LICI).

(viii) Assumptions

With the objective of presenting plan assets and obligations of the defined benefit plans at their fair value at balance sheet date, assumptions used under Ind AS 19 are set by reference to market conditions at the valuation date.

Particulars	Gratuity (funded)		Compensated absences (funded)
	As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
Discount rate (per annum)	6.00%	6.40%	6.00%	6.40%
Salary escalation rate (per annum)	8.00%	8.00%	8.00%	8.00%
Mortality table		Indian Assured Lives Mortality [2006-08] Ultimate table	Indian Assured Lives Mortality [2006-08] Ultimate table
Average past service of employees (years)	10	9	Not applicable	Not applicable
Expected rate of return on plan assets	6.84%	7.27%	6.55%	6.90%

(All amounts in ` lakhs, unless otherwise stated)

(ix) Sensitivity analysis

A quantitative sensitivity analysis for significant assumption is as shown below:

Particulars	Gratuity (funded)		Compensated absences (funded)
	As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
Discount rate - Decrease by 1%	81	82	73	70
Discount rate - Increase by 1%	(70)	(71)	(63)	(61)
Salary escalation rate - Decrease by 1%	(70)	(71)	(62)	(61)
Salary escalation rate - Increase by 1%	79	80	71	69

Methods and assumptions used in preparing sensitivity analysis and their limitations:

The sensitivity results above determine their individual impact on the plan's end of the year defined benefit obligation. In reality, the plan is subject to multiple external experience items which may move the defined benefit obligation in similar or opposite directions, while the plan's sensitivity to such changes can vary over time.

(x) Maturity analysis of the benefit payments:

Weighted average duration of both gratuity plan and compensated absences plan is 7 years. Expected benefits payments for each such plans over the years is given in table below:

Particulars	Gratuity (funded)		Compensated absences (funded)
	As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
Year 1	430	43	247	203
Year 2	65	357	73	94
Year 3	102	171	94	77
Year 4	105	116	90	105
Year 5	75	111	77	93
Next 5 years	602	538	561	504

Expected employer contribution in Gratuity plan for the period ending 31 March 2022 is 81 lakhs (31 March 2021:91 lakhs ).

Expected employer contribution in Compensated absences plan for the period ending 31 March 2022 is 98 lakhs (31 March 2021:98 lakhs).

(e) Aforesaid post-employment benefit plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment risk	The present value of the defined benefit liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.
Interest risk	A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan's investments.
Longevity risk	The present value of the defined benefit liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.
Salary risk	The present value of the defined benefit liability is calculated by reference to the future salaries of plan participants. As such, an increase in salary of the plan participants will increase the plan's liability.

(All amounts in ` lakhs, unless otherwise stated)

32 Related party disclosures

Information on related party transactions as required by Ind AS - 24 - Related Party Disclosures:

(a) List of related parties

(i) Parties where control exists (subsidiary)

	Name of the Company	Country of incorporation	31 March 2021	31 March 2020
	IFB Agro Marine (FZE) (Wholly owned subsidiary w.e.f. 20 April 2017)	U.A.E	100%	100%
(ii)	Key management personnel
	Whole-time directors
	Mr. Bikramjit Nag, Joint Executive Chairman
		Mr. Arup Kumar Banerjee,Vice Chairman and Managing Director
	Non-whole-time directors
	Mr. Bijon Nag, Chairman
	Mr. Amitabha Kumar Nag, Non-executive Director
	Mr. Sudip Kumar Mukherji, Independent Director
	Mr. Hari Ram Agarwal, Independent Director
	Mr. Manoj Kumar Vijay, Independent Director
	Dr. Runu Chakraborty, Independent Woman Director
	Executive officers
	Mr. Rahul Choudhary, Chief Financial Officer
	Mr. Ritesh Agarwal, Company Secretary
		Mr. Santanu Ghosh, Chief Executive Officer - Distillery Business (appointed w.e.f 29 January 2021)
		Mr. Debasis Ghosh, Chief Executive Officer - IMIL Business (appointed w.e.f 29 January 2021)
		Mr. Soumitra Chakraborty, Chief Executive Officer - Marine Business (appointed w.e.f 29 January 2021)
		Mr. Rana Chatterjee, Chief Finance Officer- Alcohol (Distillery & IMIL) Business (appointed w.e.f 29 January 2021)
		Mr. Siddhartha Basu, Chief Finance Officer - Marine Business (appointed w.e.f 29 January 2021)
(iii)	Other key management personnel
		Mr. Goutam Bhattacharya, Vice President - Information Technology
		Mr. Alok De, Assistant Vice President- HR and Corporate Relations
		Mr. Chinmaya Mishra, General Manager- Plant Operations & Project (Distillery)
		Mr. Debojyoti Bandopadhyay, General Manager- CO2 Operations
	Mr. S.K. Kundu, Head-Tie Up Units (IMIL division)
	Mr. Sanjoy Bhattacharya, Unit Head-IMIL Panagarh Unit
	Mr. T.K Aich, Plant Manager IMIL Dankuni Unit

94 th ³⁹ Annual Report 2020-21

(All amounts in ` lakhs, unless otherwise stated)

(iv) Enterprises over which KMP or relatives of KMP exercise control/significant influence:

Name of the entity Travel Systems Limited Nurpur Gases Private Limited IFB Industries Limited

(v) Post employment benefit plans

Name of the entity

IFB Agro Industries Limited Employees Gratuity Fund IFBAIL Employees Super annuation Fund

(b) Transactions with related parties

Particulars	Period ended 31 March 2021	Period ended 31 March 2020
Sale of products
IFB Industries Limited	5	132
Sale of property, plant and equipment
Other key management personnel	-	2
Rental income:
Travel Systems Limited	8	10
IFB Industries Limited	68	81
Nurpur Gases Private Limited	24	19
Purchase of property, plant and equipment:
IFB Industries Limited	4	11
Purchase of Material:
Nurpur Gases Private Limited	968	695
Other expenses:
IFB Industries Limited	10	13
Travel Systems Limited	8	71
Reimbursement of Expenses:
IFB Agro Marine FZE	2	-
Staff welfare Expenses:
Relatives of key management personnel and other key management personnel	2	2
Contribution of funds to post employment benefit fund:
IFB Agro Industries Limited Employees Gratuity Fund	2	0
IFBAIL Employees Super annuation Fund	212	218

(All amounts in ` lakhs, unless otherwise stated)

Particulars	Year ended 31 March 2021	Year ended 31 March 2020
Remuneration to key management personnel and other key management personnel
Short-term employee benefits
Mr. Bikramjit Nag	120	113
Mr. Arup Kumar Banerjee	244	199
Others	549	695
Post-employment benefits (*)
Mr. Bikramjit Nag	2	2
Mr. Arup Kumar Banerjee	3	3
Others	31	40

(*) This does not include amounts in respect of gratuity and compensated absences as the same are determined on acturial basis for the Company.

Particulars	As at 31 March 2021	As at 31 March 2020
Sitting fees to non-executive directors	10	7

(c) Balances of related parties:

Particulars	As at 31 March 2021	As at 31 March 2020
Other payables:
Travel Systems Limited	-	2
IFB Industries Limited	72	59
Nurpur Gases Private Limited	66	76
Remuneration Payable:
Mr. Bikramjit Nag	50	40
Mr. Arup Kumar Banerjee	50	-
Security deposit outstanding:
IFB Industries Limited	8	8
Advance given:
Nurpur Gases Private Limited	-	67

(d) Terms and conditions of transactions with related parties

Purchase and sales from/to related parties are made in the ordinary course of business and on terms equivalent to those that prevail in arm's length transactions with other vendors/customers.

(All amounts in ` lakhs, unless otherwise stated)

33 Segment reporting

(a) Basis of segmentation:

The Company has following business segments, which are its reportable segments. These segments offer different products and services, and are managed separately because they require different technology and production processes. Operating segment disclosures are consistent with the information provided to and reviewed by the chief operating decision maker.

(b)	Reportable segment	Product
	Spirit, spirituous beverages and allied products	Extra Neutral Alcohol and Indian Made Indian Liquor
	Marine	Marine product processing for sale in export and domestic markets and marine feed trading.

			Year ended 31 March 2021				Year ended 31 March 2020
	Particulars	Spirit, spirituous beverages and allied products	Marine	Unallocated	Total	Spirit, spirituous beverages and allied products	Marine	Unallocated	Total
i)	Segment revenues:
a)	Revenue from operations- external	146,842	22,503	-	169,345	145,839	43,003	-	188,842
	Inter-segment revenue from operations	110	1	-	111	4	-	-	4
	Less: Eliminations	(110)	(1)	-	(111)	(4)	-	-	(4)
					169,345				188,842
b)	Other income	267	615	749	1,631	130	199	792	1,121
ii)	Segment results
	Profit before interest, tax and depreciation	8,905	(512)	(1,123)	7,270	7,165	(2,139)	(1,274)	3,752
	Depreciation	1,263	127	92	1,482	1,445	220	105	1,770
	Finance cost	-	5	2	7	131	42	5	178
	Profit before tax	7,642	(644)	(1,217)	5,781	5,589	(2,401)	(1,384)	1,804
	Tax expense				1,081				(542)
	Profit after tax				4,700				2,346
iii)	Revenue from external customers
	India	146,761	12,909	-	159,670	145,783	20,984	-	166,767
	Outside India	81	9,594	-	9,675	56	22,019	-	22,075
		146,842	22,503	-	169,345	145,839	43,003	-	188,842
iv)	Capital expenditure	1,167	588	39	1,794	432	423	103	958

Note:

As per the West Bengal Excise Policy, sale of IMILproduct is to West Bengal Beverages Corporation Limited (BEVCO). Hence more than 10% of the total sale is to a single customer.

v) Other information

		Year ended 31 March 2021			Year ended 31 March 2020
Particulars	Spirit, liquor, spirituous beverages	Marine	Unallocated	Total	Spirit, liquor, spirituous beverages	Marine	Unallocated	Total
Segment assets	28,181	6,164	18,864	53,209	20,745	10,614	13,337	44,696
Segment liabilities	5,033	1,464	1,608	8,105	3,251	1,556	1,144	5,951

vi) Geographical information

Particulars	As at 31 March 2021			As at 31 March 2020
	within India	outside India	Total	within India	outside India	Total
Non current assets other than financial assets and tax assets.	13,726	-	13,726	13,127	-	13,127

(All amounts in ` lakhs, unless otherwise stated)

34 (a)	Fair value measurement Category wise classification of financial instruments
	Particulars	Note	As at 31 March 2021	As at 31 March 2020
A	Financial assets:
(i)	Measured at fair value through profit or loss (FVTPL) Investments in unquoted mutual funds	4 (b)	2,045	8,010
(ii)	Designated at fair value through Other Comprehensive Income (FVTOCI)
	Investments in quoted equity instruments (refer note (i) below)	4 (a)	1,920	458
	Investments in unquoted equity instruments (refer note (i) below)	4 (a)	2,073	1,624
(iii)	Carried at amortised cost (refer note (ii) below)
	Cash and cash equivalents	10 (a)	10,231	1,768
	Other bank balance	10 (b)	149	93
	Bank deposits (with remaining maturity of more than 12 months)	6 (a)	26	26
	Loans to employees	5 (b)	15	19
	Security deposits	5 (a) & (b)	20	19
	Trade receivables	9	10,371	6,476
	Insurance and other claim receivable	6 (b)	98	-
	Other advances	6 (b)	109	131
(iv)	Measured at cost
	Investment in equity shares of subsidiary Company	4 (a)	489	489
	Total financial assets		27,546	19,113
B.	Financial liabilities
(i)	Measured at amortized cost
	Lease Liabilities		61	64
	Trade payables	16	4,346	3,276
	Securities deposits (repayable on demand)	13 (a) (b)	277	283
	Creditors for property, plant and equipments	13 (b)	219	90
	Dues to employees	13 (b)	334	297
(ii)	Measured at fair value through profit or loss (FVTPL)
	Derivative instruments	13 (b)	1	116
	Total financial liabilities		5,238	4,126

Notes:

(i) These investments are not held for trading. Upon application of Ind AS - 109 - Financial Instruments, the Company has chosen to measure these investments in quoted/unquoted equity instruments at FVTOCI irrevocably as the management believes that presenting fair value gains and losses relating to these investments in the statement of profit and loss may not be indicative of the performance of the Company.

(ii) The management assessed that the fair value of cash and cash equivalents, other bank balances, bank deposits, loans to employees, security deposits, trade receivables, other advances, trade payables and other financial liabilities including security deposits repayable on demand, capital creditors and dues to employees approximate the carrying amount largely due to short-term maturity of these instruments.

(b) Fair value hierarchy

The fair value of financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly market between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent in all the years. Fair value of financial instruments referred to in note (a) above has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable entity specific inputs.

The categories used are as follows:

Level 1: quoted prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

98 th ³⁹ Annual Report 2020-21

(All amounts in ` lakhs, unless otherwise stated)

For assets and liabilities which are measured at fair value as at balance sheet date, the classification of fair value by category and level on inputs used is given below:

	As at 31 March 2021:
	Particulars	Level 1	Level 2	Level 3
(i)	Measured at fair value through profit or loss (FVTPL) Investments in unquoted mutual funds	2,045	-	-
	Derivative instruments	-	-	-
(ii)	Designated at fair value through Other Comprehensive Income (FVTOCI) Investments in quoted equity instruments Investments in unquoted equity instruments	1,920 -	- -	- 2,073
	As at 31 March 2020:
	Particulars	Level 1	Level 2	Level 3
(i)	Measured at fair value through profit or loss (FVTPL) Investments in unquoted mutual funds	8,010	-	-
(ii)	Designated at fair value through Other Comprehensive Income (FVTOCI)
	Investments in quoted equity instruments Investments in unquoted equity instruments	458 -	- -	- 1,624

(c) Computation of fair values

Investments in mutual funds are short-term investments made in debt or liquid funds whose fair value are considered as the net asset value (NAV) declared by their respective fund houses on a daily basis. Thus the declared NAVis similar to fair market value for these mutual fund investments since transactions between the investor and fund houses will be carried out at such prices.

Investments in equity instruments represents long term strategic investments made in certain listed or unlisted companies. For listed companies, fair value is based on quoted market prices of such instruments as on the balance sheet date on the recognized stock exchange (where traded volume is more during last six months). For investments in unlisted Companies, the management has ascertained the fair value by using discounted cash flow ('DCF') method (income approach) and net asset value method as appropriate.

There was no transfer of financial assets or liabilities measured at fair value between level 1 and level 2 or transfer into or out of level 3 during the year ended 31 March 2021 and 31 March 2020.

(d) Valuation techniques and significant unobservable inputs

The following table shows the valuation techniques used in measuring Level 3 fair values and significant unobservable inputs used in Level 3 fair value measurements.

Valuation technique	Significant unobservable inputs	Inter-relationship between key unobservable inputs and fair value measurement
Discounted cash flows	(a) Risk adjusted discount rate	The estimated fair value would increase (decrease) if:
	(b) Growth rate	- the estimated growth were higher (lower);
		- the risk-adjusted discount rates were lower (higher).

(e) Fair value of assets and liabilities measured at cost/amortized cost

The carrying amount of financial assets and financial liabilities measured at amortized cost are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amount would be significantly different from the values that would be eventually received or settled. Management assessed that fair values of cash and cash equivalents, other bank balances, bank deposits, loans to employees, trade receivables, advance to manufacturing units, trade payables and other financial liabilities approximate their carrying amounts due to the short term maturities of these instruments.

35 Financial risk management

Company's business activities are exposed to a variety of financial risks like credit risk, market risks and liquidity risk. Company's senior management is responsible for establishing and monitoring the risk management framework within its overall risk management objectives and strategies approved by the Board of Directors. Such risk management strategies and objectives are established to identify and analyze potential risks faced by the Company, set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and assess risk management performance. Any change in Company's risk management objectives and policies need approval of it's Board of Directors.

(All amounts in ` lakhs, unless otherwise stated)

(a) Credit risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, other balances with banks, loans and other receivables.

(i) Trade receivables

Customer credit risks is managed by each business unit in accordance with the credit policy, procedures and controls relating to credit risk management. Credit quality of each individual customer is assessed based on financial positions, past trends, market reputation, prevailing market and economic conditions, expected business and anticipated regulatory changes. Based on this evaluation, credit limit and credit terms are decided for each individual customer. Exposure to customer credit risk is regularly monitored through credit locks and release. The Company has a low concentration of risk in respect of trade receivables since its customers are widely spread and operates in diversified industries and varying market conditions. Export customers are generally secured through letter of credit.

Impairment of trade receivables is based on expected credit loss model (simplistic approach) depending upon the historical data, present financial conditions of customers and anticipated regulatory changes. Maximum exposure to credit risks at the reporting date is disclosed in Note 9. Company does not hold any collateral in respect of such receivables.

(ii) Other financial instruments

Credit risks from other financial instruments includes mainly cash and cash equivalents and deposits with banks. Such risks is managed by the central treasury department of the Company with accordance with Company's overall investment policy approved by its Board of Directors. Investments of surplus funds are made in short term debt/liquid mutual funds of rated fund houses having the highest credit rating and in short term time deposits of reputed banks with a very strong financial position. Investment limits are set for each mutual fund and bank deposits. Risk concentration is minimized by investing in a wide range of mutual funds/bank deposits. These investments are reviewed by the Board of Directors on a quarterly basis.

The Company has no exposure to credit risk relating to its cash and cash equivalents. Credit risk for other financial instruments are monitored by the Central treasury department in accordance with its overall risk management policies. Impairment of such assets is computed per expected credit loss model (general approach) assessed on the basis of financial position, detailed analysis and expected business of the counterparty to such financial assets.

(b) Market risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices. Market risks comprises of three types - interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risks include long term borrowings, investments in mutual funds or equity instruments and derivative instruments.

(i) Foreign currency risk management

Foreign currency is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to change in foreign currency rates. Company is exposed to foreign currency risks on trade receivables, denominated in USD. Foreign exchange exposures are managed by the central treasury department in accordance with the overall policy parameters approved by the Board of Directors. Trade receivables are hedged by entering into forward contracts (to sell USD) with authorized banks that matches the timings of the forecasted receipts.

Carrying amount of Company's financial assets and liabilities denominated in foreign currency (USD) as at the Balance Sheet date is as under:

		As at 31 March 2021		As at 31 March 2020
	USD (lakhs)	₹	USD (lakhs)	₹
Financial assets
Trade Receivables	9	662	21	1599
Financial liabilities
Trade payable	0	0	1	65
Forward Contracts (derivative used to hedge trade receivables)	10	732	33	2,464

Foreign currency sensitivity analysis

The Company is exposed to US Dollars. Following table provides the sensitivity impact to a 5% strengthening/weakening of INR in respect to US Dollars. Sensitivity analysis is done on net exposure after adjusting the forward contracts. A positive number below indicates an increase in profit/equity when INR appreciates against US Dollars and when the net exposure is a liability.

(All amounts in ` lakhs, unless otherwise stated)

Particulars	As at 31 March 2021	As at 31 March 2020
	Gain / (Loss)	Gain / (Loss)
INR appreciates by 5%	4	-
INR depreciates by 5%	(4)	-

(ii) Interest rate risk management

The Company is debt-free and the exposure to interest rate risk from the perspective of Financial Liabilities is negligible. Further, treasury activities, focused on managing investments in debt instruments, are centralised and administered under a set of approved policies and procedures guided by the tenets of safety, liquidity and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation.

The Company's investments are predominantly held in fixed deposits and debt mutual funds. Fixed deposits are held with highly rated banks and have a short tenure and are not subject to interest rate volatility.

The Company also invests in mutual fund schemes of leading fund houses. Such investments are susceptible to market price risks that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the relatively short tenure of underlying portfolio of the mutual fund schemes in which the Company has invested, such price risk is not significant.

(iii) Price risk

Price risk is the risk that the fair value or future cash flows will fluctuate due to change in market prices. The Company is exposed to price risk arising from its short term investments in debt or liquid mutual funds. Company's central treasury department manages such risk in accordance with its overall risk management policy approved by the Board of Directors. The Company mitigates the risk by investing in a large number of rated funds. Investment limit in each fund is specified. All purchase or sale of mutual funds are reviewed by the Board of Directors on a quarterly basis. Company assesses that as returns from short term debt or liquid mutual funds are steady and depends on interest rates or market yield, there is very remote chance of any significant fluctuation in their fair values which can materially impact Company's future cash flows.

Price sensitivity analysis

Following table provides the sensitivity impact to a 1% appreciation/decline in NAVof mutual fund investments as at the Balance Sheet date.

Particulars	As at 31 March 2021	As at 31 March 2020
	Gain / (Loss)	Gain / (Loss)
NAV of mutual funds appreciates by 1%	20	80
NAV of mutual funds declines by 1%	(20)	(80)

(c) Liquidity risk:

Liquidity risk is the risk that the Company may not be able to meet its contractual obligations associated with its financial liabilities. The central treasury department of the Company manages its liquidity risk by preparing and continuously monitoring business plans or rolling cash flow forecasts which ensures that the funds required for carrying on its business operations and meeting its financial liabilities are available in a timely manner and at an optimal cost. The Company plans to meet the contractual obligations from its internal accruals and also maintains sufficient fund based and non-fund based credit limits with banks. Additionally, surplus funds generated from operations are parked in short term debt or liquid mutual funds and bank deposits which can be readily liquidated when required.

(All amounts in ` lakhs, unless otherwise stated)

The following table shows the remaining contractual maturities of financial liabilities at the reporting date. The amounts reported are on gross and undiscounted basis and includes contractual interest payments.

Contractual maturity of financial liabilities	Upto 1 year	1 year to	More than	Total
		5 year	5 year
As at 31 March 2021
Trade payables	4,346	-	-	4,346
Lease liability	7	27	109	143
Other financial liabilities	591	240	-	831
As at 31 March 2020
Trade payables	3,276	-	-	3,276
Lease liability	7	34	107	148
Other financial liabilities	546	240	-	786

(d) Capital management

For the purpose of Company's capital management, capital includes issued equity share capital, other equity reserves and long term borrowed capital less cash and cash equivalents. The primary objective of capital management is to maintain an efficient capital structure to reduce the cost of capital, support corporate expansion strategies and to maximize shareholder's value. Company has fund based and non fund based credit facilities with banks from which it borrows as and when required to meet its working capital requirements. The capital structure of the Company is based on management's judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

36 Revenue from sale of products is net of variable consideration components amounting to Rs.1,425 lakhs (31 March 2020: Rs.2,594 lakhs)

37 Impact of Covid-19 pandemic

The Company has taken into account all the possible impacts of known events arising from COVID -19 pandemic in the preparation of the financial statements including but not limited to its assessment on liquidity and going concern, recoverable values of its properties, plant and equipment and the net realizable value of other assets. On the basis of the present assessment and current indicators of future economic conditions, the Company expects to recover the carrying amounts of these assets and does not anticipate any material impact on these standalone financial results. However, the impact assessment of COVID-19 is a continuing process, given the uncertainties associated with its nature and duration. The Company will continue to monitor any material changes to future economic conditions and the consequent impact on its business, if any.

Chartered Accountants Firm Registration No. 101248W/W -100022 Jayanta Mukhopadhyay Partner Membership No. 055757 Kolkata, 17 June 2021

For B S R & Co. LLP For and on behalf of the Board of Directors of IFB Agro Industries Ltd

Joint Executive Chairman Bikramjit Nag (DIN: 00827155) Chief Financial Officer Rahul Choudhary Company Secretary Ritesh Agarwal (ACS : 17266) Kolkata/Goa, 17 June 2021

Vice Chairman and Managing Director Arup Kumar Banerjee (DIN: 00336225)

Independent Auditors' Reportto the Members of IFB Agro Industries Limited.

Report on the Audit of Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of IFB Agro Industries Limited (hereinafter referred to as the 'Holding Company") and its subsidiary, IFB Agro Marine FZE, (Holding Company and its subsidiary together referred to as "the Group"), which comprise the consolidated balance sheet as at 31 March 2021, and the consolidated statement of profit and loss (including other comprehensive income), consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the consolidated financial statements").

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of other auditor on separate financial statements of such subsidiary as were audited by the other auditor, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 ("Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group, as at 31 March 2021, of its consolidated profit and other comprehensive income, consolidated changes in equity and consolidated cash flows for the year then ended.

Basis forOpinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statementssection of our report. We are independent of the Group, its associates, joint ventures and joint operations in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in terms of the Code of Ethics issued by the Institute of Chartered Accountants of India and the relevant provisions of the Act, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence obtained by us along with the consideration of audit report of the other auditor referred to in sub paragraph (a) of the "Other Matters" paragraph below, is sufficient and appropriate to provide a basis for our opinion on the consolidated financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Description of Key Audit Matter

Impairment of trade receivables

See note 9 and 36 to the consolidated financial statements

The key audit matter	How the matterwas addressed in our audit
As at 31 March 2021, loss allowance for trade receivables of marine segment of Holding Company is	In view of the significance of the matter, we applied the following audit procedures in this area, among others, to obtain audit evidence:
`1,388 lakhs as against the total loss allowance of<br>` 1,400 lakhs. The Holding Company provides for lifetime expected	1. Obtained an understanding of the Holding Company's processes and controls relating to the determination of expected credit losses of trade receivables.
credit losses using simplified approach. The allowance rates are determined based on the Company's historical default rates determined through a provision matrix and	2. Tested the design, implementation and operating effectiveness of key controls associated with determination of expected credit losses of trade receivables.
is adjusted for forward-looking information specific to the debtors and economic environment. This assessment involves significant judgement and hence, is considered	3. Verified the inputs used in the provision matrix and evaluated the estimates for forward looking adjustments to the matrix.
to be a Key Audit Matter.	4. Assessed the adequacy of the Company's disclosures on the trade receivables and the related risks under credit risk, in Note 9 and Note 36 to the consolidated financial statements and the compliance with relevant accounting standards.

Information Other than the Consolidated Financial Statements and Auditors'Report Thereon

The Holding Company's management and Board of Directors are responsible for the other information. The other information comprises the information included in the holding Company's annual report, but does not include the financial statements and our auditors'report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed and based on the work done/ audit report of other auditor, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Management's and Board of Directors'Responsibilities for the Consolidated Financial Statements

The Holding Company's Management and Board of Directors are responsible for the preparation and presentation of these consolidated financial statements in term of the requirements of the Act that give a true and fair view of the consolidated state of affairs, consolidated profit/ loss and other comprehensive income, consolidated statement of changes in equity and consolidated cash flows of the Group in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act. The respective Management and Board of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of each company and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the Management and Directors of the Holding Company, as aforesaid.

In preparing the consolidated financial statements, the respective Management and Board of Directors of the companies included in the Group are responsible for assessing the ability of each company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group is responsible for overseeing the financial reporting process of each company.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

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

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

l Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

l Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on the internal financial controls with reference to the consolidated financial statements and the operating effectiveness of such controls based on our audit.
l Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management and Board of Directors.
l Conclude on the appropriateness of Management and Board of Directors use of the going concern basis of accounting in preparation of consolidated financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the appropriateness of this assumption. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
l Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
l Obtain sufficient appropriate audit evidence regarding the financial information of such entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the consolidated financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in para (a) of the section titled 'Other Matters'in this audit report.

We believe that the audit evidence obtained by us along with the consideration of audit report of the other auditor referred to in subparagraph (a) of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.

We communicate with those charged with governance of the Holding Company and such other entity included in the consolidated financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors'report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

OtherMatters

(a) We did not audit the financial statement of the subsidiary, whose financial statements reflect total assets of 231 lakhs as at 31 March 2021, total revenues of781 lakhs and net cash flows amounting to `202 lakhs for the year ended on that date, as considered in the consolidated financial statements. These financial statements have been audited by other auditor whose reports have been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of the subsidiary and our report in terms of sub-section (3)of Section 143 of the Act, in so far as it relates to the aforesaid subsidiary, is based solely on the audit reports of the other auditor.

The subsidiary is located outside India whose financial statements have been prepared in accordance with accounting principles generally accepted in its country and which have been audited by other auditor under generally accepted auditing standards applicable in its country. The Holding Company's management has converted the financial statements of such subsidiary located outside India from accounting principles generally accepted in its country to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Company's management. Our opinion in so far as it relates to the balances and affairs of such subsidiary located outside India is based on the report of other auditor and the conversion adjustments prepared by the management of the Holding Company and audited by us.

Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the report of the other auditor.

Report on OtherLegal and Regulatory Requirements

A. As required by Section 143(3) of the Act, based on our audit and on the consideration of reports of the other auditor on separate financial statements of such subsidiary as were audited by other auditor, as noted in the 'Other Matters' paragraph, we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.
b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditor.
c) The consolidated balance sheet, the consolidated statement of profit and loss (including other comprehensive income), the consolidated statement of changes in equity and the consolidated statement of cash flows dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.
d) In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Holding Company as on 31 March 2021 taken on record by the Board of Directors of the Holding Company, none of the directors of the Holding Company is disqualified as on 31 March 2021 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Holding Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A".
B. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditor's) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditor on separate financial statements of the subsidiary, associates and joint ventures and joint operations, as noted in the 'Other Matters'paragraph:
i. The consolidated financial statements disclose the impact of pending litigations as at 31 March 2021 on the consolidated financial position of the Group. Refer Note 31(a) to the consolidated financial statements.
ii. The Group did not have any material foreseeable losses on long-term contracts including derivative contracts during the year ended 31 March 2021.
iii. There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the Holding Company during the year ended 31 March 2021.
iv. The disclosures in the consolidated financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made in the financial statements since they do not pertain to the financial year ended 31 March 2021.

C. With respect to the matter to be included in the Auditor's report under section 197(16):

In our opinion and according to the information and explanations given to us, the remuneration paid during the current year by the Holding Company to its directors is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director by the Holding Company is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.

For B S R & Co. LLP Chartered Accountants Firm registration No.: 101248W/W-100022

Jayanta Mukhopadhyay Partner Place: Kolkata Membership No.: 055757 Date: 17 June 2021 ICAI UDIN: 21055757AAAACF2203

Annexure A to the Independent Auditors' report on the consolidated financial statements of IFB Agro Industries Limited for the year ended 31 March 2021

Report on the internal financial controls with reference to the aforesaid consolidated financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013

[Referred to in paragraph (A)(f) under 'Report on Other Legal and Regulatory Requirements' section of our report of even date]

Opinion

In conjunction with our audit of the consolidated financial statements of the Group as of and for the year ended 31 March 2021, we have audited the internal financial controls with reference to financial statements of IFB Agro Industries Limited ("the Holding Company").

In our opinion, the Holding Company has, in all material respects, adequate internal financial controls with reference to consolidated financial statements and such internal financial controls were operating effectively as at 31 March 2021, based on the internal financial controls with reference to consolidated financial statements criteria established by such Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the "Guidance Note").

Management's Responsibility for Internal Financial Controls

The Holding Company's management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to consolidated financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Holding Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013 ("the Act").

Auditors'Responsibility

Our responsibility is to express an opinion on the internal financial controls with reference to consolidated financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to consolidated financial statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to consolidated financial statements were established and maintained and whether such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to consolidated financial statements and their operating effectiveness. Our audit of internal financial controls with reference to consolidated financial statements included obtaining an understanding of such internal financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors'judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls with reference to consolidated financial statements.

Meaning of Internal Financial controls with Reference to Consolidated financial statements

ACompany's internal financial controls with reference to consolidated financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company's internal financial controls with reference to consolidated financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial controls with Reference to Consolidated financial statements

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

For B S R & Co. LLP Chartered Accountants Firm registration No.: 101248W/W-100022

Jayanta Mukhopadhyay Partner Place: Kolkata Membership No.: 055757 Date: 17 June 2021 ICAI UDIN: 21055757AAAACF2203

Consolidated balance sheet as at 31 March 2021

(All amounts in ` lakhs, unless otherwise stated)

	Notes	As at 31 March 2021	As at 31 March 2020
Assets
Non-current assets
Property, plant and equipment Capital work-in-progress	3 (a) 3 (b)	11,958 1,004	12,291 382
Intangible assets under development	3 (c)	84	63
Financial assets - Investments	4 (a)	3,993	2,082
- Loans	5 (a)	5	6
- Other financial assets	6 (a)	26	26
Current tax assets (net) Other non-current assets	7 (a)	199 707	379 468
Total non-current assets		17,976	15,697
Current assets
Inventories Financial assets	8	6,662	8,839
- Investments	4 (b)	2,045	8,010
- Trade receivables	9	10,557	6,588
- Cash and cash equivalents - Bank balances other than above	10 (a) 10 (b)	10,238 149	1,772 93
- Loans	5 (b)	31	38
- Other financial assets Other current assets	6 (b) 7 (b)	222 5,070	141 3,179
Total current assets		34,974	28,660
Total assets		52,950	44,357
Equity and liabilities
Equity
Equity share capital Other equity	11 12	937 43,496	937 37,193
Total equity		44,433	38,130
Liabilities
Non-current liabilities Financial liabilities
- Lease Liabilities		54	57
- Other financial liabilities Deferred tax liabilities (net)	14 (a) 15	240 888	240 481
Other non-current liabilities	16 (a)	30	32
Total non-current liabilities		1,212	810
Current liabilities
Financial liabilities - Borrowings	13	242	43
- Trade payables	17
-total outstanding dues of micro enterprises and small enterprises -total outstanding dues of creditors other than micro enterprises and small enterprises		357 4,123	369 3,104
- Lease Liabilities		7	7
- Other financial liabilities Current tax liabilities, net	14 (b)	627 42	562 8
Other current liabilities Provisions	16 (b) 18	1,718 189	1,131 193
Total current liabilities		7,305	5,417
Total liabilities		8,517	6,227
Total equity and liabilities		52,950	44,357

The accompanying notes 1 to 39 form an integral part of these consolidated financial statements.

This is the consolidated balance sheet referred to in our report of even date.

Chartered Accountants Firm Registration No. 101248W/W -100022 Jayanta Mukhopadhyay Partner Membership No. 055757 Kolkata, 17 June 2021

For B S R & Co. LLP For and on behalf of the Board of Directors of IFB Agro Industries Ltd

Joint Executive Chairman Bikramjit Nag (DIN: 00827155) Chief Financial Officer Rahul Choudhary Company Secretary Ritesh Agarwal (ACS : 17266)

Kolkata/Goa, 17 June 2021

Vice Chairman and Managing Director Arup Kumar Banerjee (DIN: 00336225)

Consolidated statement of profit and loss for the year ended 31 March 2021

(All amounts in ` lakhs, unless otherwise stated)

	Notes	Year ended 31 March 2021	Year ended 31 March 2020
Income
Revenue from operations	19	170,126	191,146
Other income	20	1,686	1,148
Total income		171,812	192,294
Expenses
Cost of materials consumed	21	34,413	57,143
Purchases of stock-in-trade	22	9,571	17,063
Changes in inventories of finished goods,
work-in-progress and stock-in-trade	23	2,492	(1,045)
Excise duty		99,973	92,566
Employee benefits expense	24	4,550	4,948
Finance costs	25	17	188
Depreciation and amortisation expenses	26	1,484	1,772
Other expenses	27	13,593	17,982
Total expenses		166,093	190,617
Profit before tax		5,719	1,677
Tax expenses	28 (a)
Current tax		1,293	357
Deferred tax		(212)	(899)
		1,081	(542)
Profit after tax		4,638	2,219
Other comprehensive income:
Items that will not be reclassified subsequently to profit or loss:
Changes in fair value of equity instruments		1,910	(1,095)
Remeasurement of post-employment benefit obligations		37	(85)
Tax relating to these items	28 (b)	(288)	142
Items that will be reclassified subsequently to profit or loss:
Exchange difference in translating the financial statement of foreign operations		6	(8)
Total other comprehensive income for the year, net of tax		1,665	(1,046)
Total comprehensive income for the year		6,303	1,173
Earnings per equity share
Basic and diluted earnings per share (₹)	29	49.51	23.69

The accompanying notes 1 to 39 form an integral part of these consolidated financial statements.

This is the consolidated statement of profit and loss referred to in our report of even date.

For B S R & Co. LLP	For and on behalf of the Board of Directors of IFB Agro Industries Ltd
Chartered Accountants Firm Registration No. 101248W/W -100022	Joint Executive Chairman	Bikramjit Nag (DIN: 00827155)
Jayanta Mukhopadhyay	Vice Chairman and Managing Director	Arup Kumar Banerjee (DIN: 00336225)
Partner	Chief Financial Officer	Rahul Choudhary
Membership No. 055757	Company Secretary	Ritesh Agarwal (ACS : 17266)
Kolkata, 17 June 2021	Kolkata/Goa, 17 June 2021

Consolidated statement of cash flows for the Year ended 31 March 2021

(All amounts in ` lakhs, unless otherwise stated)

		Year ended 31 March 2021	Year ended 31 March 2020
A.	Cash flow from operating activities:
	Profit before tax	5,719	1,677
	Adjustment for:
	Depreciation and amortisation expenses	1,484	1,772
	Bad debts written-off	298	75
	Allowance for doubtful debts	-	1,214
	Writeback of allowance of doubtful debts	(329)	-
	Net gain arising on sale of financial assets measured at FVTPL	(355)	(324)
	Net gain on remeasurement of financial assets measured at FVTPL	(45)	(4)
	Net (gain)/loss arising on remeasurement of derivatives at FVTPL	(116)	120
	Amortisation of capital subsidy	(2)	(2)
	Loss on sale of property, plant and equipment, net	(1)	11
	Liability no longer required, written back	(112)	(99)
	Unrealised forex (gain)/loss Interest income	1 (39)	(63) (77)
	Write off of property, plant and equipment	-	46
	Finance costs	17	188
	Operating profit before working capital changes:	6,520	4,534
	Adjustment for:
	(Increase)/decrease in inventories	2,177	(2,304)
	(Increase)/decrease in trade receivables	(3,939)	(1,964)
	(Increase)/decrease in loans	8	3
	(Increase)/decrease in other financial assets	(81)	(83)
	(Increase)/decrease in other non-financial assets	(2,061)	(92)
	Increase/(decrease) in trade payables	1,007	(214)
	Increase/(decrease) in provisions	(4)	(7)
	Increase/(decrease) in other financial liabilities	51	5
	Increase/(decrease) in other non-financial liabilities	699	533
	Cash generated from/(used in) operations	4,377	411
	Income taxes paid (net of refund)	(748)	(172)
	Net cash generated from/(used in) operating activities	(A) 3,629	239
B.	Cash flow from investing activities
	Purchase of property, plant and equipment
	(including capital work in progress and intangible assets under development)	(1,698)	(1,200)
	Proceeds from sale of property, plant and equipment	2	27
	Purchase of investments measured at FVTPL	(92,879)	(75,775)
	Sale of investments measured at FVTPL	99,244	76,257
	(Increase)/decrease in other bank balance	(48)	26
	Interest received	31	82
	Net cash generated from/( used in) investing activities	(B) 4,652	(583)

112 th ³⁹ Annual Report 2020-21

Consolidated statement of cash flows for the Year ended 31 March 2021 (Contd.)

(All amounts in ` lakhs, unless otherwise stated)

		Year ended 31 March 2021	Year ended 31 March 2020
C. Cash flow from financing activities
Repayment of borrowings		-	(1,997)
Finance costs		(15)	(194)
Payments for lease liability including interest		(5)	(3)
Net cash generated from/(used in) financing activities	(C)	(20)	(2,194)
Net (decrease) in cash and cash equivalents	(A+B+C)	8,261	(2,538)
Cash and cash equivalents as at the beginning of the year		1,729	4,274
Effect of exchange rate fluctuation		6	(7)
Cash and cash equivalents as at the end of the year		9,996	1,729
Cash and cash equivalents comprise:
Cash and cash equivalents (Note 10(a))		10,238	1,772
Bank overdraft (Note 13)		(242)	(43)
		9,996	1,729

Notes:

i) The above consolidated statement of cash flow has been prepared under the 'Indirect method' as set out in Ind AS 7, " Statement of cash flow".

ii) Reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financial activities are as under:

	Year ended 31 March 2021	Year ended 31 March 2020
Term loans
Opening balance of borrowings	-	2,009
Repayment during the year	-	(1,997)
Changes on account of foreign currency fluctuations	-	(12)
	-	-

This is the consolidated statement of cash flow referred to in our report of even date.

Chartered Accountants Firm Registration No. 101248W/W -100022

Jayanta Mukhopadhyay Partner Membership No. 055757 Kolkata, 17 June 2021

For B S R & Co. LLP For and on behalf of the Board of Directors of IFB Agro Industries Ltd

Joint Executive Chairman Bikramjit Nag (DIN: 00827155) Chief Financial Officer Rahul Choudhary Company Secretary Ritesh Agarwal (ACS : 17266) Kolkata/Goa, 17 June 2021

Vice Chairman and Managing Director Arup Kumar Banerjee (DIN: 00336225)

Consolidated statement of changes in equity for the year ended 31 March 2021

(All amounts in ` lakhs, unless otherwise stated)

(A) Equity

Particulars	As at 31 March 2021	As at 31 March 2020
Balance at the beginning of the year	937	937
Changes in equity share capital during the year	-	-
Balance at the end of the year	937	937

(B) Other equity

		Reserves and surplus		Other Comprehensive Income
	Securities premium	General reserves	Retained earnings	Instruments through OCI	Equity Foreign currency translation reserve	Total
Balance as at 31 March 2019	3,194	285	29,872	2,670	(1)	36,020
Profit after tax	-	-	2,219	-	-	2,219
Items of other comprehensive income, net of tax:
- Remeasurements of post-employment benefit obligations	-	-	(55)	-	-	(55)
- Changes in fair value of equity instruments	-	-	-	(983)	-	(983)
- Exchange difference on translation of foreign operations	-	-	-	-	(8)	(8)
Balance as at 31 March 2020	3,194	285	32,036	1,687	(9)	37,193
Profit after tax	-	-	4,638	-	-	4,638
Items of other comprehensive income, net of tax:
- Remeasurements of post-employment benefit obligations	-	-	24	-	-	24
- Changes in fair value of equity instruments	-	-	-	1,635	-	1,635
- Exchange difference on translation of foreign operations	-	-	-	-	6	6
Balance as at 31 March 2021	3,194	285	36,698	3,322	(3)	43,496

Refer to note 12 for nature and purpose of reserve.

This is the consolidated statement of change in equity referred to in our report of even date.

Chartered Accountants Firm Registration No. 101248W/W -100022

Jayanta Mukhopadhyay Partner Membership No. 055757 Kolkata, 17 June 2021

For B S R & Co. LLP For and on behalf of the Board of Directors of IFB Agro Industries Ltd

Joint Executive Chairman Bikramjit Nag (DIN: 00827155) Chief Financial Officer Rahul Choudhary Company Secretary Ritesh Agarwal (ACS : 17266) Kolkata/Goa, 17 June 2021

Vice Chairman and Managing Director Arup Kumar Banerjee (DIN: 00336225)

(All amounts in ` lakhs, unless otherwise stated)

Summary of significant accounting policies and other explanatory informations:

1A Group's background

The consolidated financial statements comprise the financial statements of IFB Agro Industries Limited ('the Parent Company') and its subsidiary (collectively, the Group) for the year ended 31 March 2021.

The Parent is a Company limited by shares, incorporated and domiciled in India. The registered office of the Parent Company is located at Plot No. IND-5, Sector-I, East Kolkata Township, Kolkata 700 107, India. The corporate identification number (CIN) of the holding company is L01409WB1982PLC034590.

The details of the subsidiary company is as follows:

Name of subsidiary	Country of incorporation	% holding as at 31 March 2021	% holding as at 31 March 2020
IFB Agro Marine FZE	Sharjah, UAE	100%	100%

The Group is primarily engaged in the business of manufacturing alcohol, bottling of branded alcoholic beverages as well as processed marine foods both for domestic and export markets.

These consolidated financial statements are approved by the Parent Company's Board of Directors on 17 June 2021.

1B Basis of Preparation

(a) General information and statement of compliance with Indian Accounting Standards

These financial statements are the consolidated financial statements of the Group prepared in accordance with Indian Accounting Standards (Ind AS') notified under section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015.

The consolidated financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (hereinafter referred to as the "Act") read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other relevant provisions of the Act. The Group has uniformly applied the accounting policies during the periods presented.

(b) Historical Cost Convention

The consolidated financial statements have been prepared on a historical cost basis, except the following:

certain financial assets and liabilities (including derivative instruments) that are measured at fair value; and
defined benefit plans plan assets measured at fair value.

(c) Accounting estimates and judgements

Details of critical estimates and judgements used which have a significant effect on the carrying amounts of assets and liabilities, are provided in the following notes:

Income tax:

The Parent's tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions. Refer note 15 and 28.

Useful life of property, plant and equipment:

Refer note 2 (b) for details.

Measurement of defined benefit obligations:

(All amounts in ` lakhs, unless otherwise stated)

Impairment of assets:

Refer note 2 (b), (c) and (d) for details.

Classification of leases:

Refer note 2 (l) for details.

Estimation of provisions and contingencies:

Refer note 2 (m), 18 and 31(a) for details.

Recognition of deferred tax assets: Refer note 2 (n) for details.

Fair value measurements:

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow model, which involve various judgements and assumptions. Refer note 35 (c) for details.

The Group presents all its assets and liabilities in the consolidated balance sheet based on current or non-current classification. Assets and liabilities are classified as current or non-current as per the Group's normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Group has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

(d) Basis of consolidation

The consolidated financial statements comprise the financial statements of the Parent Company and its subsidiary. Control is achieved when the Parent Company has:

Power over the investee
Is exposed or has rights to variable returns from its involvement with the investee.
Has the ability to use it's power over the investee to affect its returns

Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Parent Company has less than a majority of the voting or similar rights of an investee, the Parent Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

The contractual arrangement with the other vote holders of the investee.
Rights arising from other contractual arrangements.
The Parent Company's voting rights and potential voting rights, and
The size of the Parent Company's holding of voting rights relative to the size and dispersion of the holdings of the other voting right holders.

The Parent Company re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Parent Company obtains control over the subsidiary and ceases when the Parent Company loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Parent Company gains control until the date the Parent Company ceases to control the subsidiary.

Consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances. If a member of the Group uses accounting policies other than those adopted in the consolidated financial statements for like transactions and events in similar circumstances, appropriate adjustments are made to that Group member's financial statements in preparing the consolidated financial statements to ensure conformity with the Group's accounting policies.

The financial statements of all entities used for the purpose of consolidation are drawn up to same reporting date as that of the Parent company, i.e., year ended on 31 March. When the end of the reporting period of the Parent is different from that of a subsidiary, the subsidiary prepares, for consolidation purposes, additional financial information as of the same date as the financial statements of the Parent to enable the Parent to consolidate the financial information of the subsidiary, unless it is impracticable to do so.

(All amounts in ` lakhs, unless otherwise stated)

Consolidation procedure:

Combine like items of assets, liabilities, equity, income, expenses and cash flows of the Parent with those of its subsidiaries. For this purpose, income and expenses of the subsidiary are based on the amounts of the assets and liabilities recognised in the consolidated financial statements at the acquisition date.

Offset (eliminate) the carrying amount of the Parent Company's investment in each subsidiary and the Parent's portion of equity of each subsidiary. Business combinations policy explains how to account for any related goodwill.

Eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between entities of the Group (profits or losses resulting from intragroup transactions that are recognised in assets, such as inventory and fixed assets, are eliminated in full). Intragroup losses may indicate an impairment that requires recognition in the consolidated financial statements. Ind AS 12 Income Taxes applies to temporary differences that arise from the elimination of profits and losses resulting from intragroup transactions.

Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the Parent Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

2 Significant accounting policies

(a) Revenue recognition

Revenue from contracts with customers is recognised when the control of the goods or services is transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services.

The Group recognises revenue from contracts with customers based on a five-step model as set out in Ind AS - 115, Revenue from contracts with customers:

i) Identify the contracts with customers: Acontract is defined as an agreement between two or more parties that creates enforceable rights and obligations and sets out the criteria for every contract that must be met.
ii) Identify the performance obligations in the contract: Aperformance obligation is a promise in a contract with a customer to transfer goods or services to the customer.
iii) Determine the transaction price: The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.
iv) Allocate the transaction price to the performance obligations in the contract: For a contract that has more than one performance obligation, the Group will allocate the transaction price to each performance obligation in an amount that depicts the amount of consideration to which the Group expects to be entitled in exchange for satisfying each performance obligation.
v) Recognise revenue when (or as) the Group satisfies a performance obligation at a point in time or over time.

Sale of goods:

The Group has concluded that revenue from sale of goods should be recognised at a point in time when the control of the asset is transferred to the customer, generally on despatch or delivery of the goods, as per the terms of the contract.

The Group considers whether there are other promises in the contract that are separate performance obligations to which a portion of transaction price needs to be allocated. In determining the transaction price for the sale of goods, the Group considers the effect of significant financing components. The Group receives short-term advance from its customers. As the period between the transfer of promised goods or services and when the customer pays for those goods or services is expected to be less than one year, the Group has used the practical expedient in Ind AS - 115 and not adjusted the consideration for significant financing component.

Revenue is measured based on the transaction price i.e. the consideration to which the group expects to be entitled from a customer, net of returns and allowances, trade discounts and volume rebates. Revenue includes both fixed and variable consideration. Variable consideration arises on the sale of goods as a result of discounts and allowances given and estimated rebates.

(All amounts in ` lakhs, unless otherwise stated)

The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amount collected on behalf of third parties and transaction costs. The consideration promised in a contract with a customer is fixed.

For each performance obligation identified, the Group determines at contract inception that it satisfies the performance obligation over time or satisfies performance obligation at a point in time. When either party to a contract has performed, an entity shall present the contract in the Balance Sheet as a contract asset or a contract liability depending upon the relationship of the Group's performance and customer payment. A receivable is recognised when goods are dispatched or delivered as this is the case of point in time recognition where consideration is unconditional because only passage of time is required.

Tie-up manufacturing arrangements:

The Group has entered into tie-up manufacturing arrangements with the tie-up manufacturers (TMU), where-in TMU's would manufacture and sell branded alcoholic products on behalf of the Group. Accordingly, the transactions of the tie-up units under such arrangements have been recorded as gross revenue, excise duty and expenses as they were transactions of the Group.

(b) Property, plant and equipment

Recognition and initial measurement:

Property, plant and equipment is stated at historical cost less accumulated depreciation and impairment losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are added in the asset's carrying amount/recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of such item can be measured reliably. All repairs and maintenance expenses are charged to the consolidated statement of profit and loss in the period in which they are incurred. Upon first-time adoption of Ind AS, the Group has elected to measure all its property, plant and equipment recognised as at 1 April 2016, as per the previous GAAP, and used the carrying amount as its deemed cost on the date of transition to Ind AS.

Capital work-in-progress:

Property, plant and equipment which are not ready for intended use as on the balance sheet date are disclosed as "Capital work-in-progress".

Subsequent measurement (depreciation and useful lives):

Category of asset	Useful life
Buildings	5 - 60 years
Plant and equipment	10 - 40 years
Furniture and fixtures	10 years
Office equipment	3 - 6 years
Vehicles	8 - 10 years

Freehold land is carried at historical cost.

De-recognition:

An item of property, plant and equipment and any significant part initially recognized is de-recognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognized in the consolidated statement of profit and loss, when the asset is de-recognized.

(All amounts in ` lakhs, unless otherwise stated)

Intangible assets

(i) Recognition and measurement

Acquired Intangible assets: Intangible assets are initially measured at cost and subsequently measured at cost less accumulated amortisation and any accumulated impairment losses.

(ii) Subsequent expenditure

(iii) Amortisation

(c) Impairment of non-financial assets

Assessment for impairment is done at each balance sheet date when there is an indication that a non-financial asset may be impaired. For the purpose of assessing impairment, smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets/groups of assets is considered as a cash generating unit. If any indication of impairment exists, an estimate of the recoverable amount of the individual asset/cash generating unit is made. Asset/cash generating unit whose carrying value exceeds their recoverable amount are written down to the recoverable amount by recognizing the impairment loss as an expense in the consolidated statement of profit and loss. Recoverable amount is higher of an asset's/cash generating unit's fair value less cost of disposal and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset/cash generating unit and from its disposal at the end of its useful life. Assessment is also done at each balance sheet date as to whether there is any indication that an impairment loss recognized for an asset/cash generating unit in any prior accounting periods may no longer exist or may have decreased, based on which a reversal of an earlier recorded impairment loss is recognized in the consolidated statement of profit and loss.

(d) Financial instruments

(A) Financial assets

Classification:

The Group classifies its financial assets in the following measurement categories depending on the Group's business model for managing such financial assets and the contractual cash flow terms of the asset.

(i) those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
(ii) those subsequently measured at amortized cost.

For assets measured at fair value, gains or losses are either recorded in the consolidated statement of profit and loss or other comprehensive income. Investments in debt instruments are classified depending on the business model managing such investments. The Group re-classifies the debt investments when and only when there is a change in business model managing those assets. For investments in equity instruments which are not held for trading, the Group has made an irrevocable election at the time of initial recognition to account for such equity investments at fair value through other comprehensive income.

Measurement:

At initial recognition, the Group measures a financial asset (other than those carried at fair value through profit or loss) at its fair value plus transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the consolidated statement of profit and loss as and when they are incurred.

Debt instruments

Subsequent measurement of debt instruments depends on the Group's business model managing such debt instruments and the contractual cash flow characteristics of the instrument. There are three measurement categories into which the debt instruments are classified:

(i) Amortized cost: Business model managing such asset has the objective to realize the contractual cash flows arising from the asset by holding such asset and the contractual cash flows represent solely payments of principal and interest on the outstanding amount of principal, measured at amortized cost. A gain or loss on a financial asset subsequently measured at amortized cost is recognized in the consolidated statement of profit or loss when the asset is de-recognised or impaired.

(All amounts in ` lakhs, unless otherwise stated)

(ii) Fair value through other comprehensive income (FVTOCI): Business model managing such asset has the objective to collect the contractual cash flows arising from such asset and to sale the asset, where such contractual cash flows represent solely payments of principal and interest on the outstanding amount of principal, measured at fair value through other comprehensive income (FVTOCI). Changes in fair value of such instruments are recognized through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognized in the consolidated statement of profit and loss. When the financial asset is de-recognised, the cumulative gain or loss previously recognized in OCI is reclassified from equity to consolidated statement of profit and loss and recognized in other income.
(iii) Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through profit or loss. Again or loss on a debt investment that is subsequently measured at fair value through profit or loss is recognized in consolidated statement of profit and loss in the period in which it arises.

Equity instruments:

The Group classifies all its equity investments at fair value. In case of equity instruments not held for trading, Group's management has made an irrevocable election to present fair value gains and losses on such equity instruments in other comprehensive income and there is no subsequent reclassification of fair value gains and losses to the consolidated statement of profit and loss.

Interest income:

Interest income is recorded on accrual basis using the effective interest rate (EIR) method.

Dividend income:

Dividend income is recognized when the right to receive dividend is established.

Investments in mutual funds:

Investments in mutual funds are measured at fair value through profit and loss.

Impairment:

The Group assesses the expected credit losses for its financial assets at amortized cost and FVTOCI debt instruments. Impairment methodology applied depends on whether there has been a significant increase in credit risk and the loss amount assessed depends upon past events, present conditions and future economic scenario.

For trade receivables only, the Group applies the simplified approach required by Ind AS 109 which allows loss allowance to be recognized at an amount equivalent to the lifetime expected credit losses from the initial recognition of such receivables irrespective of whether there has been a significant increase in credit risk.

Offsetting:

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Group has legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and to settle the liability simultaneously.

De-recognition:

Afinancial asset is de-recognized when:

(i) Contractual right to receive cash flows from such financial asset expires;
(ii) Group transfers the contractual right to receive cash flows from the financial asset; or
(iii) Group retains the right to receive the contractual cash flows from the financial asset, but assumes a contractual obligation to pay such cash flows to one or more recipients.

Where the Group has transferred an asset, the Group evaluates whether it has transferred substantially all risks and rewards associated with the ownership of the financial asset. In such cases, the financial asset is de-recognized. Where the Group has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not de-recognized.

Where the Group has neither transferred nor retained substantially all risks and rewards of ownership of the financial asset, the financial asset is de-recognised if the Group does not retained control of the financial asset. Where the Group retains control of the financial asset, the asset is continued to be recognized to the extent of continuing involvement in such financial asset.

(All amounts in ` lakhs, unless otherwise stated)

Financial liabilities

Financial liabilities: Classification, subsequent measurement and gains and losses

Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the consolidated statement of profit and loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment and amortised over the period of the facility to which it relates.

Borrowings are derecognized from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in consolidated statement of profit and loss as other gains or (losses).

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

Derivatives

The Group enters into derivative financial instruments, primarily foreign exchange forward contracts, to manage its exposure to foreign exchange risks.

Derivatives are initially recognised at fair value and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gains / losses is recognised in the consolidated statement of profit and loss.

(e) Government grants and subsidies

Grants and subsidies from the government are recognized when there is reasonable certainty that the grant or the subsidy will be received and the conditions attached to such grant will be complied. When the grant or the subsidy relates to a revenue item, it is recognized as income over the period necessary to match them on a systematic basis to the costs which they intend to compensate. Where the grant or the subsidy relates to a capital asset, it is initially recorded as deferred revenue income and subsequently recognized as income in the consolidated statement of profit and loss, over the remaining useful life of the related asset.

Income from export incentives:

Income from export incentives such as Merchandise Export from India Scheme (MEIS) and duty drawback are recognized on accrual basis.

(f) Borrowing costs

(g) Inventories

(All amounts in ` lakhs, unless otherwise stated)

(h) Cash and cash equivalents

Cash and cash equivalents comprise of cash-in-hand and demand deposits with banks. The Group considers it's highly liquid, short-term investments (having original maturity less than three months) which can be readily converted to known amount of money and subject to insignificant risks arising from changes in their fair values, as cash equivalents. Accordingly time deposits with banks, having original maturity less than three months, is considered as cash equivalent.

For the purpose of the consolidated statement of cash flows, cash and cash equivalent consists of cash and short term deposits, as defined above, net of outstanding bank overdraft as they are considered an integral part of the group's cash management.

(i) Assets held for sale

(j) Foreign currency transactions

Functional currency and presentation currency:

The financial statements are presented in Indian Rupees (i.e., INR), the functional currency of the Group. Functional currency is the currency of the primary economic environment in which the Group operates.

Transactions and balances with value below the rounding off norm adopted by the Group have been reflected as '0' in the relevant notes to these financial statements.

Transactions and balances:

(k) Employee benefits expense

Short-term employee benefits:

Short-term employee benefit obligations are measured on an undiscounted basis and is expensed as the related servoc is provided. A liability is recognised for the amount expected to be paid eg, under short term cash bonus, if the Group has the present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the amount of obligation can be estimated reliably

Defined contribution plans:

The Group provides defined contribution plans for post-employment benefits in the form of provident fund and superannuation fund administered by Regional Provident Fund Commissioner and Life Insurance Corporation of India respectively. The Group's contributions to defined contribution plans are charged to the consolidated statement of profit and loss as and when incurred. Provident and superannuation funds are classified as defined contribution plans as the Group has no further obligation beyond making the contributions, even if the assets of the fund is not enough to pay all the employee benefits.

Defined benefit plans and other long term benefits:

(All amounts in ` lakhs, unless otherwise stated)

Gratuity plan is classified as post retirement employee benefit and hence the current service cost including net interest cost / (income) is recognized in the consolidated statement of profit and loss under "employee benefit expenses" during the period in which it is incurred. Remeasurement of defined benefit obligation due to change in actuarial assumptions or experience adjustments or expected return on plan assets (to the extent not covered under net interest on net defined benefit obligation) is recognized under other comprehensive income and not subsequently reclassified to the consolidated statement of profit and loss.

Liability for compensated absence has been classified as long-term employee benefit and the entire cost incurred on such plan is recognized in the consolidated statement of profit and loss under "employee benefit expenses" during the period in which it is incurred.

Termination benefits

Termination benefits are recognized as an expense as and when incurred. The Group recognizes termination benefits at the earlier of the following dates:

(i) when the Group can no longer withdraw the offer of those benefits; or
(ii) when the Group recognizes a restructuring cost within the scope of Ind AS 37.

Termination benefits falling due more than 12 months after the end of the reporting period are discounted to their present value.

(l) Leases

As a lessee

The Group's lease asset classes primarily consist of leases for land and buildings. The Group assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether: (i) the contract involves the use of an identified asset (ii) the Group has substantially all of the economic benefits from use of the asset through the period of the lease and (iii)the Group has the right to direct the use of the asset.

At the date of commencement of the lease, the Group recognizes a right-of-use (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases) and low value leases. For these shortterm and low-value leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised. The Right Of Use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. ROU assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related ROU asset if the Group changes its assessment of whether it will exercise an extension or a termination option. Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

As a lessor

Leases for which the Group is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the ROU asset arising from the head lease. For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

(All amounts in ` lacs, unless otherwise stated)

Effective 1 April 2019, the Group has adopted Ind AS -116 'Leases' using the modified retrospective approach. This has resulted in recognition of 'right-of-use' asset and lease liability as on 01 April 2019. The adoption of the standard did not have any material impact on consolidated financial statements.

(m) Provisions, contingent liabilities and contingent assets

Provisions:

Contingent liabilities:

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent assets:

(n) Income tax

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available against which those temporary differences/losses can be utilized. Minimum alternate tax ('MAT') credit entitlement is recognized as an asset only when and to the extent there is convincing evidence that normal income tax will be paid during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset, the said asset is created by way of a credit to the consolidated statement of profit and loss and shown as MAT credit entitlement. This is reviewed at each balance sheet date and the carrying amount of MAT credit entitlement is written down to the extent it is not reasonably certain that normal income tax will be paid during the specified period.

(o) Segment reporting

Operating segments are identified in a manner consistent with the internal reporting presented to the chief operating decision maker (CODM).

(All amounts in ` lacs, unless otherwise stated)

The chief operating decision maker (CODM) is a function which regularly reviews the financial results of the operating segments for the purpose of assessing its performance and allocation of funds to such segments. The Group identifies its Managing Committee as the chief operating decision maker. As per Ind AS 108, the Group has identified the following operating segments:

(i) Spirit, spirituous beverages and allied products
(ii) Marine products

"Unallocated" include revenue and expenses that relate to initiatives / costs attributable to the enterprise as a whole and are not attributable to segments.

(p) Events after reporting date

(q) Earnings per share

(All amounts in ` lakhs, unless otherwise stated)

3 (a) Property, plant and equipment

	Owned assets				Leased assets
	Freehold land	Buildings	Plant and equipment	Furniture and fixtures	Office equipment	Vehicles	Land	Total
Gross Block (refer note (i) below)
Balance as at 31 March 2019	1,074	2,574	14,750	84	196	158	438	19,274
Additions	6	51	488	17	44	19	61	686
Less: Disposal	-	48	160	0	7	23	-	238
Balance as at 31 March 2020	1,080	2,577	15,078	101	233	154	499	19,722
Additions	-	545	539	14	35	19	-	1,152
Less: Disposal	-	-	1	0	1	1	-	3
Balance as at 31 March 2021	1,080	3,122	15,616	115	267	172	499	20,871
Accumulated Depreciation and Impairment (refer note (i) below)
Balance as at 31 March 2019	-	647	4,888	34	135	84	25	5,813
Charge for the year	-	240	1,431	15	42	28	16	1,772
Less: Disposal/adjustments	-	1	69	0	6	17	-	93
Less: Impairment reversal	-	43	18	-	-	-	-	61
Balance as at 31 March 2020	-	843	6,232	49	171	95	41	7,431
Charge for the year	-	168	1,231	14	37	18	16	1,484
Less: Disposal/adjustments	-	-	0	0	1	1	-	2
Less: Impairment reversal								-
Balance as at 31 March 2021	-	1,011	7,463	63	207	112	57	8,913
Net Block
Balance as at 31 March 2020	1,080	1,734	8,846	52	62	59	458	12,291
Balance as at 31 March 2021	1,080	2,111	8,153	52	60	60	442	11,958

Notes:

i) The Group had adopted the carrying cost as on the date of transition to Ind AS as its deemed cost as at 01 April 2016 and accordingly adjusted its gross block and accumulated depreciation and impairment.

ii) The Parent Company's marine product processing plant at Kolkata has been erected on land obtained under finance lease of ninety-nine years, valid upto 9 August 2093 through license from Kolkata Metropolitan Development Authority, for which formal lease deed is yet to be executed.The gross book value as at 31 March 2021: **66 lakhs**(31 March 2020:66 lakhs) and net block as at 31 March 2021: **62 lakhs**(31 March 2020:63 lakhs).

iii) Plant and equipment includes electrical equipment and installations and laboratory equipment.

iv) The Group, based on technical evaluation, has assessed and concluded that none of the components of property, plant and equipment have an useful life which is different from that of the principal asset.

v) Right of Use includes lands acquired under long term lease ranging from 30-99 years. It represents payments made and costs incurred in connection with acquisition of leasehold rights and are being amortized over the period of lease. Net Block as at 31 March 2021: **386 lakhs**(31 March 2020:400 lakhs).

vi) Right of Use includes land taken on lease for a period of 20 years. The details of values recorded and corresponding depreciation charge are given as under:

	Leasehold land
	31 March 2021	31 March 2020
Gross Block as at the beginning of the year	61	-
Add: Additions during the year	-	61
Less: Disposal during the year	-	-
Gross Block as at the end of the year	61	61
Accumulated Depreciation and Impairment as at the beginning of the year	3	-
Add: Charge for the year	2	3
Less: Disposal/adjustments	-	-
Accumulated Depreciation and Impairment as at the end of the year	5	3
Net block as at the end of the year	56	58

(All amounts in ` lakhs, unless otherwise stated)

			As at 31 March 2021		As at 31 March 2020
	3 (b) Capital work-in-progress
	Opening balance as at the beginning of the year		382		171
	Additions made during the year		1,621		584
	Transferred to property, plant and equipment		(999)		(373)
	Closing balance as at the end of the year		1,004		382
	3 (c) Intangible assets under development
	Opening balance as at the beginning of the year		63		-
	Additions made during the year		21		63
	Transferred to property, plant and equipment		-		-
	Closing balance as at the end of the year		84		63
			As at 31 March 2021		As at 31 March 2020
		Nos.	Amount	Nos.	Amount
4	Investments
(a)	Non-current
	Investments in equity instruments
	Quoted
	(Designated at fair value through other comprehensive income (FVTOCI))
	IFB Industries Limited (Face value ₹ 10 per share, fully paid-up)(FVTOCI))	172,733	1,920	172,733	458
			458.26		1,689.23
	Unquoted (Designated at fair value through other comprehensive income)
	CPL Projects Limited (Face value ₹ 10 per share, fully paid-up)	90,000	3	90,000	3
	Zenith Investments Limited (Face value ₹ 10 per share, fully paid-up)	260,000	3	260,000	3
	Asansol Bottling and Packaging Company Private Limited (Face value ₹ 100 per share, fully paid-up)	23,900	382	23,900	362
	Nurpur Gases Private Limited (Face value ₹ 10 per share, fully paid-up)	145,000	86	145,000	55
	IFB Automotive Private Limited (Face value ₹ 10 per share, fully paid-up)	955,998	1,599	955,998	1,201
			2,073		1,624
			3,993		2,082

(All amounts in ` lakhs, unless otherwise stated)

4 Investments (cont'd)

	As at 31 March 2021	As at 31 March 2020
Other disclosures for non-current investments:
(a) Aggregate amount of quoted investments and market value thereof	1,920	458
(b) Aggregate amount of unquoted investments	2,073	1,624

Notes:

i) As at the balance sheet date, none of the investments in equity instruments have been impaired.

ii) The investments in equity instruments are for long-term strategic purposes and not held for trading. Under Ind AS 109, the Group has chosen to designate these investments as equity instruments at fair value through other comprehensive income as the management believes that this provides a more meaningful presentation for non-current investments. Based on the aforesaid designation, changes in fair values are accumulated in other equity under the head "equity instruments through other comprehensive income". The Group transfers the accumulated balance from this account to retained earnings when such equity instruments are derecognised.

		As at 31 March 2021		As at 31 March 2020
	Nos.	Amount	Nos.	Amount
(b) Current
Investments in mutual funds
Unquoted
(Measured at fair value through profit and loss)
ICICI Pru Equity Arbitrage Fund -Direct-Growth	3,642,102.04	1,022	-	-
Kotak Equity Arbitrage Fund -Direct- Growth	3,379,725.30	1,023	-	-
DSP Overnight Fund - Direct - Growth	-	-	47,169.05	504
Franklin India Overnight Fund -Direct-Growth	-	-	191,756.92	2,004
HSBC Overnight Fund - Direct - Growth	-	-	67,686.62	707
ICICI Prudential Overnight Fund-Direct-Growth	-	-	1,434,024.43	1,545
Invesco India Overnight Fund - Direct-Growth	-	-	143,281.93	1,447
Kotak Overnight Fund - Direct- Growth	-	-	169,155.80	1,803
		2,045		8,010
Other disclosures for current investments:
(a) Aggregate amount of unquoted investments		2,045		8,010

(All amounts in ` lakhs, unless otherwise stated)

		As at 31 March 2021	As at 31 March 2020
5	Loans
(a)	Non-current (Unsecured, considered good)
	Security deposits	5	6
		5	6
(b)	Current (Unsecured, considered good)
	Security deposit	15	19
	Loan to employees	16	19
		31	38
6	Other financial assets
(a)	Non-current
	(Unsecured, considered good)
	Bank deposits with remaining maturity more than 12 months (*)	26 26	26 26
(*)	Bank deposits are under lien with various Government authorities.
(b)	Current
	(Unsecured, considered good)
	Insurance and other claim receivable	98	-
	Other receivables	124	141
		222	141
7	Other assets
(a)	Non-current
	(Unsecured, considered good)
	Capital advances	412	380
	Advances other than capital advances:
	- Security deposits	-	6
	- Amount deposited with government authorities	263	15
	- Advance to service provider Excess amount paid for defined benefit plans (refer note 32)	0 18	0 67
	Excess amount paid for other long-term employee benefit (refer note 32)	14	-
		707	468

(All amounts in ` lakhs, unless otherwise stated)

		As at 31 March 2021	As at 31 March 2020
7	Other assets (contd)
(b)	Current
	(Unsecured, considered good)
	Advances other than capital advances:
	- Advance to vendors (#)	468	476
	- Advance to tie-up manufacturing units	100	153
	- Prepaid expenses	484	450
	Balances with government authorities (*)	3,656	1,830
	Export incentives receivable	362	270
		5,070	3,179

(#) Advance to vendors include advances to Nurpur Gases Private Limited, a private company in which a director is a member: As at 31 March 2021 : Nil(As at 31 March 2020:`67 lakhs)

(*) Balances with government authorities primarily include amounts realisable from goods and services tax, state excise authorities and transitional credit carried forward under the goods and services tax regime. These are expected to be realised within a period of one-year, by off-setting the same against the output goods and services tax liability on goods supplied by the Parent Company. Accordingly these balances have been classified as current assets.

8 Inventories

(valued at lower of cost and net realisable value)
Raw materials (including packing materials) (##)	3,235	2,945
Work-in-progress	127	184
Finished goods (**)	2,543	4,992
Stock-in-trade	375	356
Stores and spares	382	362
	6,662	8,839

(##) includes stock in transit **lakhs** (31 March 2020:68 lakhs)

(**) includes finished goods in transit **331 lakhs** (31 March 2020:272 lakhs)

Note: The cost of inventories recognised as an expense during the year is disclosed under note 21,22 and 23. The cost of inventories recognised as an expense includes **132 lakhs**(31 March 2020:425 lakhs) in respect of write- downs of inventory to its net realisable value.

(All amounts in ` lakhs, unless otherwise stated)

		As at 31 March 2021	As at 31 March 2020
9	Trade receivables
	Considered good, secured	988	810
	Considered good, unsecured	10,969	7,507
		11,957	8,317
	Less: Loss allowance	1,400	1,729
		10,557	6,588
	Movement in allowance for doubtful debts during the year is as follows:
	Balance at the beginning of the year	1,729	515
	Add: Loss allowance (net)	(329)	1,214
	Balance at the end of the year	1,400	1,729

10	Cash and bank balances
(a)	Cash and cash equivalents
	Cash on hand	18	47
	Balances with banks
	- In current accounts	440	875
	Bank deposits with original maturity less than 3 months	9,780	850

(b) Bank balances other than (a) above

Bank deposits with original maturity more than 3 months but remaining maturity less than 12 months (*) 141 93 Accrued interest on bank deposits 8 0 149 93

(*) Bank deposits are under lien with various Government authorities.

10,238 1,772

(All amounts in ` lakhs, unless otherwise stated)

			As at 31 March 2021	As at 31 March 2020
		Number	Amount	Number	Amount
11	Equity share capital
	Authorized share capital
	Equity shares of ₹ 10 each	12,000,000	1,200	12,000,000	1,200
		12,000,000	1,200	12,000,000	1,200
	Issued, subscribed and fully paid up
	Equity shares of ₹ 10 each	9,367,111	937	9,367,111	937
		9,367,111	937	9,367,111	937

(a) Reconciliation of the number of shares outstanding at the beginning and at the end of the year

There has been no change in equity share capital during the year.

(b) The rights, preferences and restrictions attached to equity shares

The Parent Company has only one class of equity shares having a par value of ₹ 10 per share. Such holder of equity share is entitled to one vote per share. In the event of liquidation, the equity shareholders are entitled to receive the remaining assets of the Parent Company after distribution of all preferential amounts, in proportion to their shareholdings. During this financial year the Parent Company has not proposed/declared any dividend. However, if any dividend is proposed by the Board of Directors, it will be subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

(c) Details of shareholders holding more than 5% of the shares in the Parent Company:

		As at 31 March 2021		As at 31 March 2020
Name of the shareholders	Number	Percentage	Number	Percentage
IFB Automotive Private Limited	3,602,900	38.46	3,602,900	38.46
Nurpur Gases Private Limited	785,543	8.39	785,543	8.39
SICGIL India Limited (*)	683,100	7.29	683,100	7.29

(*) SICGILIndia Ltd (SICGIL) along with Persons Acting in Concert (PAC) (collectively referred to as SICGILgroup) holds 15.76% equity shares in the Company. However, the SICGIL group's voting rights were restricted to 5% of the equity share Capital of IFB Agro Industries Limited vide National Company Law Tribunal ('NCLT') order dated 5 July 2017. In an appeal, the National Company Law Appellate Tribunal ('NCLAT') vide its order dated 6th December 2018 set aside the NCLT's order. IFB Agro Industries Limited has preferred an appeal before the Hon'ble Supreme Court. The Hon'ble Supreme Court has ordered for status quo to be maintained.
(d) No additional shares were allotted as fully paid up by way of bonus shares or pursuant to contract without payment being received in cash during the last five years. Further, none of the shares were bought back by the Parent Company during the last five years.

(All amounts in ` lakhs, unless otherwise stated)

	As at 31 March 2021	As at 31 March 2020
Other equity
Other reserves
Securities premium	3,194	3,194
General reserve	285	285
Retained earnings	36,698	32,036
Other comprehensive income	3,322	1,687
Foreign currency translation reserve	(3)	(9)
	43,496	37,193

Nature and purpose of reserves:

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilized in accordance with the provisions of Section 52 of the Companies Act, 2013.

General reserve

General reserve has been created out of profits earned by the Group in the previous years. General reserves are free reserves and can be utilised in accordance with the requirements of the Companies Act, 2013.

Retained earnings

Retained earnings are the profits that the Group has earned till date, less any transfer to general reserves, dividends and other distributions made to the shareholders.

Movement in the retained earnings during the year is as given below:

	As at 31 March 2021	As at 31 March 2020
Balance at the beginning of the year	32,036	29,872
Add: Profit for the year	4,638	2,219
Add: Remeasurement of post-employment benefit obligations and taxes there on	24	(55)
Balance at the end of the year	36,698	32,036

Other comprehensive income

The Group has elected to recognize changes in fair value of certain investments in equity instruments in other comprehensive income. The changes are accumulated within "Equity instruments through OCI" under other comprehensive income.

Movement in the other comprehensive income during the year is as given below:

As at 31 March 2021	As at 31 March 2020
1,678	2,669
1,641	(991)
3,319	1,678

(All amounts in ` lakhs, unless otherwise stated)

		As at 31 March 2021	As at 31 March 2020
13	Borrowings
	Current
	Secured
	Over draft from bank	242	43
		242	43

Bank facilities are secured by way of:

-Stand by letter of credit from HDFC Bank- India of amount 105% of the requested credit facilities and

-Promissory note

14 Other financial liabilities

(a) Non-current

Security deposits (*)	240	240
	240	240

(*) Represents an amount obtained as a part of sale and lease back agreement entered into by the Parent Company with Rajasthan State Electricity Board (RSEB) which expired on 28 February 2004. In terms of the said agreement, the residual value of the assets under lease acquired and leased back to RSEB (under physical possession of RSEB) is required to be adjusted against the corresponding amount of security deposit as mentioned above. The Parent Company's appeal towards certain claims against RSEB is pending before the Hon'ble Jaipur High Court.

(b) Current

Security deposits repayable on demand 37	43
Creditors for property, plant and equipments (inclusive of retentions) (#) 219	90
Derivative instruments 1	116
Dues to employees 370	313
627	562

(#) Creditors for property, plant and equipments include 31 March 2021 :`33 lakhs(31 March 2020: Nil) dues to micro and small enterprises.

(All amounts in ` lakhs, unless otherwise stated)

				As at 31 March 2021	As at 31 March 2020
15	Deferred taxes assets / liabilities (net)
	Deferred tax liabilities (net)			1,729	1,604
	Less: Deferred tax assets (unutilised MAT credit)			841	1,123
				888	481
		As at 31 March 2020	Recognised in statement of profit or loss	Recognised in Other Comprehensive Income	As at 31 March 2021
	Deferred tax liabilities:
	On property, plant and equipment	1,494	(164)	-	1,330
	On fair valuation of equity instruments through OCI	108	-	275	383
	On fair valuation of investments in mutual funds	2	14	-	16
	On excess amount paid for other long-term employee benefit	-	-	-	-
		1,604	(150)	275	1,729
	Deferred tax assets:
	On allowance for doubtful debts	604	115	-	489
	On deferred revenue income	11	(1)	-	12
	On temporary differences	17	-	-	17
		632	114	-	518
		As at 31 March 2020	Recognised in statement of profit or loss	Utilised during the year	As at 31 March 2021
	Deferred tax assets:
	On unutilised MAT credits	491	(176)	344	323
		491	(176)	344	323

Note:

Deferred tax assets and deferred tax liabilities have been offset wherever the Group has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

(All amounts in ` lakhs, unless otherwise stated)

		As at 31 March 2021	As at 31 March 2020
16	Other liabilities
(a)	Non-current
	Deferred revenue income (*)	30	32
		30	32

(*) Deferred revenue income represents capital subsidy of ₹ 50 lakhs received by the Parent Company on 30 December 2016 from Ministry of New and Renewable Energy (MNRE), Government of India, in respect of its 2.5 MW co-generative power plant commissioned on 28 March 2014. An amount of ₹ 2 lakhs(31 March 2020: ₹ 2 lakhs) has been recognized as income for the current year.

(b) Current

Advance from customers (#)	188	313
Statutory dues	1,503	542
Other accruals	27	276
	1,718	1,131

17 Trade payables

Total outstanding dues of micro and small enterprises	357	369
Total outstanding dues of creditors other than micro and small enterprises	4,123	3,104
	4,480	3,473

18 Provisions

Current
Provision for compensated absences	-	4
Provision for legal matters (*)	189	189
	189	193

(*) As the Group is not in a position to ascertain the exact timing of expected future cash outflows required to settle the obligations for legal matters, it has been classified under current liabilities, without considering their time value of money.

Movement in provision for legal matters during the year is as follows:
Balance at the beginning of the year	189	200
Add: provisions during the year	-	-
Less: provisions reversed / paid during the year	-	(11)
Balance at the end of the year	189	189

(All amounts in ` lakhs, unless otherwise stated)

		Year ended 31 March 2021	Year ended 31 March 2020
19	Revenue from operations
	Sale of products (inclusive of excise duty)*	169,303	189,161
	Other operating revenue
	- Scrap sales	165	148
	- Export incentives - Others	628 30	1,790 47
			191,146
		170,126
	* refer to note 37
	Details of sale of products (inclusive of excise duty)
	Manufactured products
	-Spirit, spirituous beverages and allied products (i) Alcohol including Indian made Indian liquor and other allied products	142,929	140,759
	(ii) Others	3,827	4,988
	-Marine
	(i) Maine products	11,658	24,420
	(ii) Others	341	-
	Traded products
	-Spirit, spirituous beverages and allied products
	Others	30	20
	-Marine
	(i) Marine products	781
	(ii) Marine feed and other allied products	9,737	16,670
		169,303	189,161
20	Other income
	Interest income:
	- Financial assets measured at amortised costs	39	77
	Other gains and losses
	- Net gain arising on sale of financial assets measured at FVTPL	355	324
	- Net gain/(loss) arising on measurement of derivatives at FVTPL	116	-
	- Net gain arising on remeasurement of financial assets measured at FVTPL	45	4
	Others
	- Rental income	348	385
	- Net gain on foreign currency transactions and translations (net) - Recovery of bad debts	- 4	76 -
	- Liabilities no longer required written back	112	99
	- Writeback of loss allowance (net)	329	-
	- Net gain on sale of property, plant and equipment	1	-
	- Other miscellaneous income	75	59
	- Insurance claim received	262	124
		1,686	1,148

(All amounts in ` lakhs, unless otherwise stated)

		Year ended 31 March 2021	Year ended 31 March 2020
21	Cost of materials consumed
	Raw material consumed (including packing materials)
	Opening stock	2,945	2,069
	Add: Purchases	34,703	58,019
	Less: Closing stock	3,235	2,945
		34,413	57,143
22	Purchases of stock-in-trade
	Marine food and feed supplements	9,544	17,045
	Others	27	18
		9,571	17,063
23	Changes in inventories of finished goods, work-in-progress and stock-in-trade
	Stock at the beginning of the year (including stock-in-transit)
	Finished goods	4,992	3,512
	Work-in-progress	184	178
	Stock-in-trade	356	416
		5,532	4,106
	Stock at the end of the year (including stock-in-transit)
	Finished goods	2,543	4,992
	Work-in-progress	127	184
	Stock-in-trade	375	356
		3,045	5,532
	Difference in excise duty on finished goods	5	381
		2,492	(1,045)
24	Employee benefits expense
	Salaries, wages and bonus	3,842	4,128
	Contribution to provident funds and other funds (Refer note 32)	454	425
	Staff welfare expenses	254	395
		4,550	4,948
25	Finance costs
	Interest on financial liabilities carried at amortised costs (*) Interest expense on lease liabilities	15 2	183 5

		17	188
(*)	Calculated using effective interest rate (EIR) method.
26	Depreciation and amortisation expenses
	Depreciation of property, plant and equipment	1,484	1,772
		1,484	1,772

(All amounts in ` lakhs, unless otherwise stated)

		Year ended 31 March 2021	Year ended 31 March 2020
27	Other expenses
	Advertisement and sales promotion expenses	740	567
	Consumption of stores and spares	540	487
	Power and fuel	3,321	4,194
	Rent	950	902
	Repair and maintenance:
	- Buildings	90	32
	- Plant and Machinery	221	277
	- Others	139	107
	Insurance	337	374
	Rates and taxes	816	353
	Legal and professional expenses	346	370
	Office expenses	796	1,009
	Travel and conveyance expenses	226	510
	Auditor's remuneration	29	40
	Freight outward	1,797	2,636
	Contract charges	2,416	3,949
	Corporate Social Responsibility ('CSR') expenditure	83	67
	Loss on sale of property, plant and equipment, net	-	11
	Write off of property, plant and equipment	0	46
	Bad debts written off	298	75
	Loss allowance	-	1,214
	Loss on foreign currency transactions and translations, net	64	-
	Net loss arising on measurement of derivatives at FVTPL	-	120
	Directors sitting fees	10	7
	Miscellaneous expenses	374	635
		13,593	17,982
(a)	Auditors' remuneration
	Statutory audit (*)	26	35
	Tax audit	-	2
	Other services (*)	1	1
	Out of pocket expenses	2	2
		29	40
(*)	Auditor fees includes in 31 March 2021: Nil (31 March 2020: `10 lakhs) as payment to erstwhile auditors
(b)	Details of Corporate Social Responsibility (CSR) expenditure
	Gross amount required to be spent by the Company during the year. Amount spent during the year:	80	85

Construction / acquisition of any assets - - Purposes other than above 83 67 Amount accrued but not paid during the year - -

(All amounts in ` lakhs, unless otherwise stated)

	Year ended 31 March 2021	Year ended 31 March 2020
28 Tax expenses
(a) Income tax in the statement of profit and loss:
Current tax
Income tax charge for the year	1,293	533
Income tax charge / (reversal) for earlier years	0	(176)
	1,293	357
Deferred tax
Deferred tax for the year	(36)	(725)
Unused tax credit entitlement (MAT credit entitlement) for the year	-	(21)
Unused tax credit entitlement (MAT credit entitlement) for earlier years	(176)	(153)
	(212)	(899)
(b) Income tax recognised in other comprehensive income comprises:
Current tax
On remeasurement of post-employment benefit obligations	13	(30)
(A)	13	(30)
Deferred tax
On fair value gains on investments in equity instruments	275	(112)
(B)	275	(112)
(A) + (B)	288	(142)
(c) Reconciliation of income tax expense and the accounting profit for the year:
Profit before tax	5,719	1,677
Enacted tax rates (%)	34.94%	34.94%
Income tax expense calculated at corporate tax rate	1,998	586
Impact due to consolidation of losses of the subsidiary entity	22	44
Deductions under chapter VIA of the Income Tax Act, 1961	(748)	(807)
Impact on account of non-deductible expenses	29	33
Fair value measurements of investments in mutual funds	0	(24)
Adjustment of tax relating to earlier years	(176)	(329)
Impact due to change in future tax rate	-	(1)
Additional allowances under the Income Tax Act, 1961 Difference in opening written down value of property,	(16)	(4)
plant and equipment as per Income tax	(25)	8
On opening leave fund asset	-	(48)
Other adjustments	(3)	-
Total income tax expense as per the statement of profit and loss	1,081	(542)

(All amounts in ` lakhs, unless otherwise stated)

		Year ended 31 March 2021	Year ended 31 March 2020
29	Earnings per equity share (EPS)
	Net profit attributable to equity shareholders (in ₹ lakhs)	4,638	2,219
	Weighted average number of equity shares outstanding during the year	9,367,111	9,367,111
	Face value per share (in ₹)	10	10
	Earnings per share (in ₹):
	- Basic earnings per equity share	49.51	23.69
	- Diluted earnings per equity share	49.51	23.69

30 Leases

(a) Leases as a Lessee

(i) Right of use assets

The Group has acquired lands on lease. Certain lease land acquired by the Group are recorded under property, plant and equipment (seperately from other owned assets) at an amount equal to the entire lease rentals paid upfront (including intial direct costs) at the time of initiation of this lease. Such lease arrangement range over a period of 30-99 years. Other lease arrangements of land whose payment are to be made on periodic basis has been recognised as 'Right of use assets' for the purpose on Ind AS 116, Leases. These lease land arrangement range over a period of 20 years.

Reconciliation of liabilities from financing activities

Opening Balance	63	-
Lease liability recognised during the year	-	61
Interest expenses recognised during the year	2	5
Lease payments reflected in the Statement of Cash Flow	(5)	(3)
Closing Lease liabiltity	60	63

(ii) Short term / Low value leases

The Parent Company has entered into lease arrangements in respect of factory lands, office premises, other buildings and manufacturing facilities which are for a period generally ranging from 11 months to 6 years. All such lease arrangements are cancellable by giving a short notice of 3 to 6 months. But these are usually renewable on mutually agreed terms. All these arrangements are considered as short term lease or leases of low-value assets for the purpose of Ind AS 116, Leases and are not recognised as Right of use assets. The expenses incurred for short term lease during 31 March 2021: **975 lakhs**(31 March 2020:902 lakhs) included in Rent under Note 27 other expenses.

(b) Leases as lessor

The Group entered into operating leases on its office premises, plant and machinery.

Rental income recognised by the Group during the financial year 2020-21 **348 lakhs**(2019-20 is 385 lakhs).

All the agreement entered into are short term in nature and are cancellable at a notice within three to six months, therefor the maturity analysis of lease payments are not reported here.

31 Contingent liabilities and commitments

(a) Contingent liabilities

	Claims against the Company not acknowledged as debts:
(a)	State Excise demands for various years primarily for excess shortage/wastage of spirit.	1,192	1,192
(b)	State Sales Tax/Central Sales Tax and Value Added Tax demands in the State of West Bengal.	-	2,705
(c)	Kolkata Port Trust (KoPT) - Dispute relating to valuation of rent for rest house at Noorpur.	95	95

Note:

Pending issuance of any show cause notice or demand in pursuance to the search conducted by the Directorate General of Goods and Services Tax Intelligence Unit (DGGI) on 26 June 2020 under section 67(2) of the Central Goods and Services Act, 2017, in respect of the alleged misclassification in respect to sale of Distillers Dried Grain Solubles (DDGS), the company has paid a sum of ` 225 lakhs under protest and will take necessary legal steps to defend its position.

(b) Commitments

Estimated amount of capital contracts remaining to be executed and not provided for as on the balance sheet date are:
Capital commitments for property, plant and equipment (net of capital advances given)	1761	171
Capital commitment for intangible assets	225	90

141 th ³⁹ Annual Report 2020-21

(All amounts in ` lakhs, unless otherwise stated)

32 Disclosure in accordance with Ind AS-19 on Employee benefits expense

(a) Post-employment benefits plan:

Retirement benefit plans of the Holding Company comprising of Gratuity, Superannuation and Provident Fund consists of both defined benefit plan and defined contribution plan. Other long term employee benefits includes compensated absences subject to certain limits and rules. Gratuity, Superannuation and compensated absences plans are funded through investments in Life Insurance Corporation of India (LICI). Provident fund for all employees are managed through government administrated funds. Gratuity and Superannuation fund is managed by a Board of Trustees who are responsible for overall management of the fund and acts in accordance with the provisions of the respective trust deeds and rules, and in the best interest of the plan participants. The trustees do a periodic review of the solvency of the fund and play a role in long term investments, risk management and funding strategy.

(b) Defined contribution plans

The Provident Fund and Superannuation Fund has been classified as defined contribution plan as the Group has an obligation to pay a fixed amount to the government administered fund and Life Insurance Corporation of India (LICI) respectively and has no further obligation if the assets of such funds are not enough to meet all the employee obligations provided under such plans.

(c) Defined benefit plans

(d) Other long-term employee benefits

The Group provides for encashment of accumulated leaves standing at the credit of its employees at the time of their exit by way of retirement (on superannuation or otherwise), death or disability, subject to certain limits and rules framed by the Group. Liability is provided based on the number of days of unutilized leave at each balance sheet date based on actuarial valuation done by a certified actuary using projected unit credit method. The Parent Company had funded such plan with Life Insurance Corporation of India (LICI).

(i) Defined benefits obligations recognised:

Particulars		Gratuity (funded)		Compensated absences (funded)
	As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
Present value of obligation	1,272	1,203	976	927
Fair value of plan assets	1,290	1,271	989	923
Net (assets)/liabilities recognized	(18)	(67)	(14)	4

(ii) Movement in present value of obligation:

Particulars	Gratuity (funded)		Compensated absences (funded)
	As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
Balance at beginning of the year	1,204	996	928	769
Current service cost	91	64	98	79
Interest cost	75	70	57	52
Acquisitions (credit)/cost	2	9	(2)	9
Actuarial (gain)/loss arising from assumption changes	29	51	26	44
Actuarial (gain)/loss arising from experience adjustments	(63)	36	(51)	42
Benefits paid (including benefits directly paid by the Company)	(66)	(22)	(80)	(67)
Balance at end of the year	1,272	1,204	976	928

(All amounts in ` lakhs, unless otherwise stated)

(iii) Movement in present value of plan assets:

	Gratuity (funded)		Compensated absences (funded)
	As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
Balance at beginning of the year	1,271	1,204	924	907
Interest income on plan assets	79	85	59	63
Employer contribution	2	2	4	-
Return on plan assets lesser than discount rate	4	2	2	(1)
Benefits paid	(66)	(22)	-	(45)
Balance at end of the year	1,290	1,271	989	924
(iv) Components of net cost
Particulars		Gratuity (funded)	Compensated absences (funded)
	As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
Recognised in profit and loss
- Current service costs	91	64	98	79
- Net interest on net defined benefit liability / (asset)	(4)	(15)	(2)	(11)
- Immediate recognition of (gains) / losses	-	-	(27)	86
	87	49	69	154
Recognised in other comprehensive income
- Actuarial (gains) / losses	(37)	85	-	-
	(37)	85	-	-

(v) Remeasurement of the net defined benefit plans to be take to other comprehensive income:

Particulars	Gratuity (funded)		Compensated absences (funded)
	As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
Actuarial (gain)/loss arising from assumption changes	29	51	-	-
Actuarial (gain)/loss arising from experience adjustments	(63)	36	-	-
Return on plan assets lesser than discount rate	(4)	(2)	-	-
Net impact on other comprehensive income before tax	(38)	85	-	-

(vi) Amounts contributed towards defined contribution plans have been recognized in the statement of profit and loss under "Contribution to provident fund and other funds" in Note 24.

(vii) Major categories of plan assets:

Entire assets of both gratuity and compensated absences plans is maintained with the Life Insurance Corporation of India (LICI).

(viii) Assumptions

Particulars	Gratuity (funded)		Compensated absences (funded)
	As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
Discount rate (per annum)	6.00%	6.40%	6.00%	6.40%
Salary escalation rate (per annum)	8.00%	8.00%	8.00%	8.00%
Mortality table		Indian Assured Lives Mortality [2006-08] Ultimate table	Indian Assured Lives Mortality [2006-08] Ultimate table
Average past service of employees (years)	10	9	Not applicable	Not applicable
Expected rate of return on plan assets	6.84%	7.27%	6.55%	6.90%

(All amounts in ` lakhs, unless otherwise stated)

(ix) Sensitivity analysis

A quantitative sensitivity analysis for significant assumption is as shown below:

Particulars	Gratuity (funded)		Compensated absences (funded)
	As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
Discount rate - Decrease by 1%	81	82	73	70
Discount rate - Increase by 1%	(70)	(71)	(63)	(61)
Salary escalation rate - Decrease by 1%	(70)	(71)	(62)	(61)
Salary escalation rate - Increase by 1%	79	80	71	69

Methods and assumptions used in preparing sensitivity analysis and their limitations:

(x) Maturity analysis of the benefit payments:

Weighted average duration of both gratuity plan and compensated absences plan is 7 years. Expected benefits payments for each such plans over the years is given in table below:

Particulars	Gratuity (funded)		Compensated absences (funded)
	As at 31 March 2021	As at 31 March 2020	As at 31 March 2021	As at 31 March 2020
Year 1	430	43	247	203
Year 2	65	357	73	94
Year 3	102	171	94	77
Year 4	105	116	90	105
Year 5	75	111	77	93
Next 5 years	602	538	561	504

Expected employer contribution in Gratuity plan for the period ending 31 March 2022 is 81 lakhs (31 March 2021:91 lakhs).

Expected employer contribution in Compensated absences plan for the period ending 31 March 2022 is 98 lakhs (31 March 2021:98 lakhs).

(e) Aforesaid post-employment benefit plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment risk	The present value of the defined benefit liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.
Interest risk	A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan's investments.
Longevity risk	The present value of the defined benefit liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.
Salary risk	The present value of the defined benefit liability is calculated by reference to the future salaries of plan participants. As such, an increase in salary of the plan participants will increase the plan's liability.

(All amounts in ` lakhs, unless otherwise stated)

33 Related party disclosures

Information on related party transactions as required by Ind AS - 24 - Related Party Disclosures:

(a) List of related parties

(i) Key management personnel

Whole-time directors

Mr. Bikramjit Nag, Joint Executive Chairman

Mr. Arup Kumar Banerjee, Vice Chairman and Managing Director

Non-whole-time directors

Mr. Bijon Nag, Chairman

Mr. Amitabha Kumar Nag, Non-executive Director

Mr. Sudip Kumar Mukherji, Independent Director

Mr. Hari Ram Agarwal, Independent Director

Mr. Manoj Kumar Vijay, Independent Director

Dr. Runu Chakraborty, Independent Woman Director

Executive officers

Mr. Rahul Choudhary, Chief Financial Officer

Mr. Ritesh Agarwal, Company Secretary

Mr. Santanu Ghosh, Chief Executive Officer - Distillery Business (appointed w.e.f 29 January 2021)

Mr. Debasis Ghosh, Chief Executive Officer - IMIL Business (appointed w.e.f 29 January 2021)

Mr. Soumitra Chakraborty, Chief Executive Officer - Marine Business (appointed w.e.f 29 January 2021)

Mr. Rana Chatterjee, Chief Finance Officer- Alcohol (Distillery & IMIL) Business (appointed w.e.f 29 January 2021)

Mr. Siddhartha Basu, Chief Finance Officer - Marine Business (appointed w.e.f 29 January 2021)

(ii) Other key management personnel

Mr. Goutam Bhattacharya, Vice President - Information Technology

Mr. Alok De, Assistant Vice President- HR and Corporate Relations

Mr. Chinmaya Mishra, General Manager- Plant Operations & Project (Distillery)

Mr. Debojyoti Bandopadhyay, General Manager- CO2 Operations

Mr. S.K. Kundu, Head-Tie Up Units (IMIL division)

Mr. Sanjoy Bhattacharya, Unit Head-IMIL Panagarh Unit

Mr. T.K Aich, Plant Manager IMIL Dankuni Unit

(All amounts in ` lakhs, unless otherwise stated)

(iii) Enterprises over which KMP or relatives of KMP exercise control/significant influence:

Name of the entity
Travel Systems Limited
Nurpur Gases Private Limited
IFB Industries Limited

(iv) Post employment benefit plans

Name of the entity

IFB Agro Industries Limited Employees Gratuity Fund IFBAIL Employees Super annuation Fund

(b) Transactions with related parties

Particulars	Period ended 31 March 2021	Period ended 31 March 2020
Sale of products
IFB Industries Limited	5	132
Sale of property, plant and equipment
Other key management personnel	-	2
Rental income:
Travel Systems Limited	8	10
IFB Industries Limited	68	81
Nurpur Gases Private Limited	24	19
Purchase of property, plant and equipment:
IFB Industries Limited	4	11
Purchase of Material:
Nurpur Gases Private Limited	968	695
Other expenses:
IFB Industries Limited	10	13
Travel Systems Limited	8	71
Staff welfare Expenses:
Relatives of key management personnel and other key management personnel	2	2
Contribution of funds to post employment benefit fund:
IFB Agro Industries Limited Employees Gratuity Fund	2	0
IFBAIL Employees Super annuation Fund	212	218

(All amounts in ` lakhs, unless otherwise stated)

Particulars	Year ended 31 March 2021	Year ended 31 March 2020
Remuneration to key management personnel and other key management personnel
Short-term employee benefits
Mr. Bikramjit Nag	120	113
Mr. Arup Kumar Banerjee	244	199
Others	549	695
Post-employment benefits (*)
Mr. Bikramjit Nag	2	2
Mr. Arup Kumar Banerjee	3	3
Others	31	40
Sitting fees to non-executive directors	10	7

(*) This does not include amounts in respect of gratuity and compensated absences as the same are determined on acturial basis for the Company

(c) Balances of related parties:

Other payables:
Travel Systems Limited	-	2
IFB Industries Limited	72	59
Nurpur Gases Private Limited	66	76
Remuneration Payable:
Mr. Bikramjit Nag	50	40
Mr. Arup Kumar Banerjee	50	-
Security deposit outstanding:
IFB Industries Limited	8	8
Advance given:
Nurpur Gases Private Limited	-	67

(d) Terms and conditions of transactions with related parties

Purchase and sales from/to related parties are made in the ordinary course of business and on terms equivalent to those that prevail in arm's length transactions with other vendors/customers.

(All amounts in ` lakhs, unless otherwise stated)

34 Segment reporting

(a) Basis of segmentation:

The Group has following business segments, which are its reportable segments. These segments offer different products and services, and are managed separately because they require different technology and production processes. Operating segment disclosures are consistent with the information provided to and reviewed by the chief operating decision maker.

(b) Reportable segment Product

Spirit, liquor, spirituous beverages and Extra Neutral Alcohol and Indian Made Indian Liquor allied products

Marine Marine product processing for sale in export and domestic markets and marine feed trading.

			Year ended 31 March 2021			Year ended 31 March 2020
	Particulars	Spirit, spirituous beverages and allied products	Marine	Unallocated	Total	Spirit, spirituous beverages and allied products	Marine	Unallocated	Total
i)	Segment revenues:
a)	External sales	146,842	23,284	-	170,126	145,839	45,307	-	191,146
	Inter-segment sale	110	1	-	111	4	-	-	4
	Less: Eliminations	(110)	(1)	-	(111)	(4)	-	-	(4)
					170,126				191,146
b)	Other income (ncluding interest income)	267	670	749	1,686	130	226	792	1,148
ii)	Segment results
	Profit before interest, tax and depreciation	8,905	(562)	(1,123)	7,220	7,165	(2,254)	(1,274)	3,637
	Depreciation	1,263	129	92	1,484	1,445	222	105	1,772
	Finance cost (excluding interest expense)	-	15	2	17	131	52	5	188
	Profit before tax	7,642	(706)	(1,217)	5,719	5,589	(2,528)	(1,384)	1,677
	Tax expense				1,081				(542)
	Profit after tax				4,638				2,219
iii)	Revenue from external customers
	India	146,761	12,909	-	159,670	145,783	20,984	-	166,767
	Outside India	81	10,375	-	10,456	56	24,323	-	24,379
		146,842	23,284	-	170,126	145,839	45,307	-	191,146
iv)	Capital expenditure	1,167	589	39	1,795	432	424	103	959

Note:

As per the West Bengal Excise Policy, sale of IMILproduct is to West Bengal Beverages Corporation Limited (BEVCO). Hence more than 10% of the total sale is to a single customer.

v) Other information

			Year ended 31 March 2021	Year ended 31 March 2020
Particulars	Spirit, spirituous beverages and allied products	Marine	Unallocated	Total	Spirit, spirituous beverages and allied products	Marine	Unallocated	Total
Segment assets	28,181	5,905	18,864	52,950	20,745	10,764	12,848	44,357
Segment liabilities	5,033	1,876	1,608	8,517	3,251	1,832	1,144	6,227

vi) Geographical information

Particulars	As at 31 March 2021			As at 31 March 2020
	within India	outside India	Total	within India	outside India	Total
Non current assets other than financial assets and tax assets	13,726	9	13,735	13,127	10	13,137

(All amounts in ` lakhs, unless otherwise stated)

35 Fair value measurement

(a) Category wise classification of financial instruments

	Particulars	Note	As at 31 March 2021	As at 31 March 2020
A	Financial assets:
(i)	Measured at fair value through profit or loss (FVTPL)
	Investments in unquoted mutual funds	4 (b)	2,045	8,010
(ii)	Designated at fair value through Other Comprehensive Income (FVTOCI)
	Investments in quoted equity instruments (refer note (i) below)	4 (a)	1,920	458
	Investments in unquoted equity instruments (refer note (i) below)	4 (a)	2,073	1,624
(iii)	Carried at amortised cost (refer note (ii) below)
	Cash and cash equivalents	10 (a)	10,238	1,772
	Other bank balance	10 (b)	149	93
	Bank deposits (with remaining maturity of more than 12 months)	6 (a)	26	26
	Loans to employees	5 (b)	16	19
	Security deposits	5 (a) & (b)	20	25
	Trade receivables	9	10,557	6,588
	Insurance and other claim receivable	6 (b)	98	-
	Other advances	6 (b)	124	141
	Total financial assets		27,266	18,756
B.	Financial liabilities
(i)	Measured at amortized cost
	Borrowings (including current maturities)	13	242	43
	Lease Liabilities		61	64
	Trade payables	17	4,480	3,473
	Securities deposits (repayable on demand)	14 (a) & (b)	277	283
	Creditors for property, plant and equipments	14 (b)	219	90
	Dues to employees	14 (b)	370	313
(ii)	Measured at fair value through profit or loss (FVTPL)
	Derivative instruments	14 (b)	1	116
	Total financial liabilities		5,650	4,382

Notes:

(i) These investments are not held for trading. Upon application of Ind AS - 109 - Financial Instruments, the Group has chosen to measure these investments in quoted/unquoted equity instruments at FVTOCI irrevocably as the management believes that presenting fair value gains and losses relating to these investments in the statement of profit and loss may not be indicative of the performance of the Group.

(b) Fair value hierarchy

The categories used are as follows:

Level 1: quoted prices (unadjusted) in active markets for financial instruments.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(All amounts in ` lakhs, unless otherwise stated)

For assets and liabilities which are measured at fair value as at balance sheet date, the classification of fair value by category and level on inputs used is given below:

		As at 31 March 2021:

	Particulars	Level 1	Level 2	Level 3
(i)	Measured at fair value through profit or loss (FVTPL)
	Investments in unquoted mutual funds	2,045	-	-
(ii)	Designated at fair value through Other Comprehensive Income (FVTOCI)
	Investments in quoted equity instruments	1,920	-	-
	Investments in unquoted equity instruments	-	-	2,073
	As at 31 March 2020:
	Particulars	Level 1	Level 2	Level 3
(i)	Measured at fair value through profit or loss (FVTPL)
	Investments in unquoted mutual funds	8,010	-	-
(ii)	Designated at fair value through Other Comprehensive Income (FVTOCI)
	Investments in quoted equity instruments	458	-	-
	Investments in unquoted equity instruments	-	-	1,624

(c) Computation of fair values

There was no transfer of financial assets or liabilities measured at fair value between level 1 and level 2 or transfer into or out of level 3 during the year ended 31 March 2021 and 31 March 2020.

(d) Valuation techniques and significant unobservable inputs

The following table shows the valuation techniques used in measuring Level 3 fair values and significant unobservable inputs used in Level 3 fair value measurements.

Valuation technique	Significant unobservable inputs	Inter-relationship between key unobservable inputs and fair value measurement
Discounted cash flows	(a) Risk adjusted discount rate	The estimated fair value would increase (decrease) if:
	(b) Growth rate	- the estimated growth were higher (lower);
		- the risk-adjusted discount rates were lower (higher).

(e) Fair value of assets and liabilities measured at cost/amortized cost

The carrying amount of financial assets and financial liabilities measured at amortized cost are a reasonable approximation of their fair values since the Group does not anticipate that the carrying amount would be significantly different from the values that would be eventually received or settled. Management assessed that fair values of cash and cash equivalents, other bank balances, bank deposits, loans to employees, trade receivables, advance to manufacturing units, trade payables and other financial liabilities approximate their carrying amounts due to the short term maturities of these instruments. For non-current borrowings at fixed/floating rates, management evaluates that their fair value will not be significantly different from the carrying amount.

36 Financial risk management

Group's business activities are exposed to a variety of financial risks like credit risk, market risks and liquidity risk. Group's senior management is responsible for establishing and monitoring the risk management framework within its overall risk management objectives and strategies approved by the Board of Directors. Such risk management strategies and objectives are established to identify and analyze potential risks faced by the Group, set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and assess risk management performance. Any change in Group's risk management objectives and policies need approval of it's Board of Directors.

(All amounts in ` lakhs, unless otherwise stated)

(a) Credit risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. Credit risk arises primarily from financial assets such as trade receivables, other balances with banks, loans and other receivables.

(i) Trade receivables

Customer credit risks is managed by each business unit in accordance with the credit policy, procedures and controls relating to credit risk management. Credit quality of each individual customer is assessed based on financial positions, past trends, market reputation, prevailing market and economic conditions, expected business and anticipated regulatory changes. Based on this evaluation, credit limit and credit terms are decided for each individual customer. Exposure to customer credit risk is regularly monitored through credit locks and release. The Group has a low concentration of risk in respect of trade receivables since its customers are widely spread and operates in diversified industries and varying market conditions. Export customers are generally secured through letter of credit.

Impairment of trade receivables is based on expected credit loss model (simplistic approach) depending upon the historical data, present financial conditions of customers and anticipated regulatory changes. Maximum exposure to credit risks at the reporting date is disclosed in Note 9. Group does not hold any collateral in respect of such receivables.

(ii) Other financial instruments

Credit risks from other financial instruments includes mainly cash and cash equivalents and deposits with banks. Such risks is managed by the central treasury department of the Group with accordance with Group's overall investment policy approved by Parent Company's Board of Directors. Investments of surplus funds are made in short term debt/liquid mutual funds of rated fund houses having the highest credit rating and in short term time deposits of reputed banks with a very strong financial position. Investment limits are set for each mutual fund and bank deposits. Risk concentration is minimized by investing in a wide range of mutual funds/bank deposits. These investments are reviewed by the Board of Directors on a quarterly basis.

The Group has no exposure to credit risk relating to its cash and cash equivalents. Credit risk for other financial instruments are monitored by the Central treasury department in accordance with its overall risk management policies. Impairment of such assets is computed per expected credit loss model (general approach) assessed on the basis of financial position, detailed analysis and expected business of the counterparty to such financial assets.

(b) Market risk:

(i) Foreign currency risk management

Foreign currency is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to change in foreign currency rates. Group is exposed to foreign currency risks on trade receivables, denominated in USD. Foreign exchange exposures are managed by the central treasury department in accordance with the overall policy parameters approved by the Board of Directors. Trade receivables are hedged by entering into forward contracts (to sell USD) with authorized banks that matches the timings of the forecasted receipts.

Carrying amount of Group's financial assets and liabilities denominated in foreign currency (USD) as at the Balance Sheet date is as under:

	As at 31 March 2021		As at 31 March 2020
	USD (lakhs)	₹	USD (lakhs)	₹
Financial assets
Trade Receivables	9	662	21	1,599
Financial liabilities
Trade payable	0	0	1	65
Forward Contracts (derivative used to hedge trade receivables)	10	732	33	2,464

(All amounts in ` lakhs, unless otherwise stated)

Foreign currency sensitivity analysis

The Group is exposed to US Dollars. Following table provides the sensitivity impact to a 5% strengthening/weakening of INR in respect to US Dollars. Sensitivity analysis is done on net exposure after adjusting the forward contracts. A positive number below indicates an increase in profit/equity when INR appreciates against US Dollars and when the net exposure is a liability.

Particulars	As at 31 March 2021	As at 31 March 2020
	Gain / (Loss)	Gain / (Loss)
INR appreciates by 5%	4	-
INR depreciates by 5%	(4)	-

(ii) Interest rate risk management

The Group is debt-free and the exposure to interest rate risk from the perspective of Financial Liabilities is negligible. Further, treasury activities, focused on managing investments in debt instruments, are centralised and administered under a set of approved policies and procedures guided by the tenets of safety, liquidity and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation.

The Group's investments are predominantly held in fixed deposits and debt mutual funds. Fixed deposits are held with highly rated banks and have a short tenure and are not subject to interest rate volatility.

The Group also invests in mutual fund schemes of leading fund houses. Such investments are susceptible to market price risks that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the relatively short tenure of underlying portfolio of the mutual fund schemes in which the Group has invested, such price risk is not significant.

(iii) Price risk

Price risk is the risk that the fair value or future cash flows will fluctuate due to change in market prices. The Group is exposed to price risk arising from its short term investments in debt or liquid mutual funds. Group's central treasury department manages such risk in accordance with its overall risk management policy approved by the Board of Directors. The Group mitigates the risk by investing in a large number of rated funds. Investment limit in each fund is specified. All purchase or sale of mutual funds are reviewed by the Board of Directors on a quarterly basis. Group assesses that as returns from short term debt or liquid mutual funds are steady and depends on interest rates or market yield, there is very remote chance of any significant fluctuation in their fair values which can materially impact Group's future cash flows.

Price sensitivity analysis

Following table provides the sensitivity impact to a 1% appreciation/decline in NAVof mutual fund investments as at the Balance Sheet date.

As at 31 March 2021 Gain / (Loss)	As at 31 March 2020 Gain / (Loss)
20	80
(20)	(80)

(c) Liquidity risk:

Liquidity risk is the risk that the Group may not be able to meet its contractual obligations associated with its financial liabilities. The central treasury department of the Group manages its liquidity risk by preparing and continuously monitoring business plans or rolling cash flow forecasts which ensures that the funds required for carrying on its business operations and meeting its financial liabilities are available in a timely manner and at an optimal cost. The Group plans to meet the contractual obligations from its internal accruals and also maintains sufficient fund based and non-fund based credit limits with banks. Additionally, surplus funds generated from operations are parked in short term debt or liquid mutual funds and bank deposits which can be readily liquidated when required.

(All amounts in ` lakhs, unless otherwise stated)

Contractual maturity of financial liabilities	Upto 1 year	1 year to	More than	Total
		5 year	5 year
As at 31 March 2021
Borrowings	242	-	-	242
Trade payables	4,480	-	-	4,480
Lease liability	7	27	109	143
Other financial liabilities	627	240	-	867
As at 31 March 2020
Borrowings	43	-	-	43
Trade payables	3,473	-	-	3,473
Lease liability	7	34	107	148
Other financial liabilities	562	240	-	802

(d) Capital management

For the purpose of Group's capital management, capital includes issued equity share capital, other equity reserves and long term borrowed capital less cash and cash equivalents. The primary objective of capital management is to maintain an efficient capital structure to reduce the cost of capital, support corporate expansion strategies and to maximize shareholder's value. Group has fund based and non fund based credit facilities with banks from which it borrows as and when required to meet its working capital requirements. The capital structure of the Group is based on management's judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence. The Group may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

37 Revenue from sale of products is net of variable consideration components amounting to **1,425 lakhs** (31 March 2020:2,594 lakhs)

38 Impact of Covid-19 pandemic

The Group has taken into account all the possible impacts of known events arising from COVID -19 pandemic in the preparation of the financial statements including but not limited to its assessment on liquidity and going concern, recoverable values of its properties, plant and equipment and the net realizable value of other assets. On the basis of the present assessment and current indicators of future economic conditions, the Group expects to recover the carrying amounts of these assets and does not anticipate any material impact on these standalone financial results. However, the impact assessment of COVID-19 is a continuing process, given the uncertainties associated with its nature and duration. The Group will continue to monitor any material changes to future economic conditions and the consequent impact on its business, if any.

(All amounts in ` lakhs, unless otherwise stated)

39 Disclosure of additional information pertaining to the Parent Company, and its subsidiary per Schedule III of Companies Act, 2013

Name of the entity in the Group		Net Assets i.e., Share in profit or loss total assets minus total liabilities		Share in other comprehensive income		Share in total comprehensive income
	As % of Consolidated net assets	Amount	As % of Consolidated profit or loss	Amount	As % of consolidated other comprehensive income	Amount	As % of total comprehensive income	Amount
For the year ended 31 March 2021
Parent Company:
- IFB Agro Industries Limited	101.51%	45,104	101.34%	4,700	99.64%	1,659	100.89%	6,359
Foreign subsidiary Company:
- IFB Agro Marine FZE	-1.51%	(671)	-1.34%	(62)	0.36%	6	-0.89%	(56)
Total	100.00%	44,433	100.00%	4,638	100.00%	1,665	100.00%	6,303
For the year ended 31 March 2020
Parent Company:
- IFB Agro Industries Limited	101.61%	38,745	105.72%	2,346	99.24%	(1,038)	111.51%	1,308
Foreign subsidiary Company:
- IFB Agro Marine FZE	-1.61%	(615)	-5.72%	(127)	0.76%	(8)	-11.51%	(135)
Total	100.00%	38,130	100.00%	2,219	100.00%	(1,046)	100.00%	1,173

Note:

The above figures are after eliminating intra group transactions and intra group balances as at 31 March 2021 and 31 March 2020.

As per our report of even date.

Chartered Accountants

Firm Registration No. 101248W/W -100022

Jayanta Mukhopadhyay

Partner Membership No. 055757 Kolkata, 17 June 2021

For B S R & Co. LLP For and on behalf of the Board of Directors of IFB Agro Industries Ltd

Joint Executive Chairman Bikramjit Nag (DIN: 00827155) Chief Financial Officer Rahul Choudhary Company Secretary Ritesh Agarwal (ACS : 17266) Kolkata/Goa, 17 June 2021

Vice Chairman and Managing Director Arup Kumar Banerjee (DIN: 00336225)

			IGAAP			Ind AS
	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18	2018-19	2019- 20	2020-21
Revenue from Operations (net)	58,462.93			46,232.08 50,688.55 59,505.35		62,131.41 116,760.20	149,967.33 173,204.33		188,841.83	169,345
PBDIT	5,116.58		5,071.69 6,988.42	4,470.22	5,918.44	6,301.59	6,785.28	5,957.36	3,753.51	7,270
PBIT	3,852.73		3,948.31 6,058.80	2,607.95	3,748.21	4,269.01	4,641.74	4,087.96	1,983.37	5,788
PBT	3,816.61		3,910.17 6,021.96	2,590.81	3,611.98	4,115.08	4,383.65	3,793.72	1,804.75	5,781
PAT	2,654.70		2,620.02 4,167.54	1,557.45	2,932.54	3,268.16	3,157.18	3,320.79	2,346.70	4,700
Net Fixed Assets	7,759.16			7,185.46 9,694.20 11,803.12	14,463.98	14,055.63	13,498.45	13,452.20	12,281.50	11,949
Net Working Capital	4,202.95			8,693.95 9,676.90 11,428.58	15,406.71	17,361.46	18,838.50	20,750.35	23,377.41	27,860
Net Debt	-	-	-	-	4,342.75	3,081.99	1,900.56	-	-	-
Earnings per Share	33.15	29.09	44.49	16.63	31.31	34.89	33.70	35.45	25.05	50.18
Book Value per Share	141.38	174.98	219.97	236.60	267.91	323.85	367.59	399.66	413.62	481.51
Free Cash Flow	772.89	1,383.62	(670.98)	1,341.20	(9,267.47)	275.53	1,959.35	4,528.57	(514.94)	8,473
PBDIT %	8.75%	10.97%	13.79%	7.51%	9.53%	5.40%	4.52%	3.44%	1.99%	4.29%
Return on Capital Employed	32.35%	24.66%	31.23%	10.93%	12.08%	12.03%	12.35%	10.55%	5.11%	12.89%
Return on Net Worth	23.45%	16.63%	20.23%	7.03%	11.69%	10.77%	9.17%	8.87%	6.06%	10.42%
Asset Turnover Ratio	7.53	6.43	5.23	5.04	4.30	8.31	11.11	12.88	15.38	14.17
Working Capital Cycle (days)	11.89	21.25	14.46	30.12	29.38	9.45	10.06	6.58	13.02	0.33

Ten Years' Standalone Financial Summary

` in Lakhs

Note: Revenue from operations (net) for the Financial Year 2016-17, 2017-18, 2018-19, 2019-20 and 2020-21 include excise duty amounting to 32,766.20 Lakhs, 61,057.56 Lakhs, 80,722.81 Lakhs, 92,566.10 Lakhs and ` 99,973 Lakhs respectively.

NOTES

156 th ³⁹ Annual Report 2020-21

AI assistant

IFB Agro Industries Ltd — Annual Report 2021

59359_rns_2021-07-13_c6e1e20b-afda-45bd-858b-b4e372762442.pdf

NIB Agro Industries Limited

n BOARD OFDIRECTORS

n AUDITORS

n REGISTERED OFFICE

n REGISTRAR & SHARE TRANSFER AGENT

n WORKS

n BANKERS

CONTENTS

Notice to the Members

AS ORDINARYBUSINESS

AS SPECIALBUSINESS

NOTES:

a. VOTING THROUGH ELECTRONIC MEANS

How do I vote electronically using NSDLe-Voting system?

Step 2: Cast your vote electronically and join virtual meeting on NSDLe-Voting system.

Details on Step 1 are mentioned below:

Step 2: Cast your vote electronically and join Virtual Meeting on NSDLe-Voting system.

General Guidelines for shareholders

Process for registration of email id for obtaining Annual Report and user id/password for e-voting

INSTRUCTIONS FOR MEMBERS FOR ATTENDING THE AGM THROUGH VC / OAVM ARE AS UNDER:

Other Instructions

Statement Pursuant to Section 102(1) of the Companies Act, 2013

ITEM NO 3

Part A

Part B

Part C

Details of the Director seeking appointment/ reappointment in Annual General Meeting (in pursuance of Clause 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Report of the Directors' & Management Discussion and Analysis Report

To the Members,

Financial Results & Performance Review

Standalone

Consolidated

Spirit, Liquor and Spirituous Beverages:

Marine Products:

OUTLOOK, OPPORTUNITIES, THREATS AND CONCERNS

RISK MANAGEMENT

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIALSTATEMENTS RELATE AND THE DATE OFTHE REPORT

SIGNIFICANTCHANGES IN KEYFINANCIALRATIOS

SIGNIFICANTAND MATERIALORDERS PASSED BYTHE REGULATORS OR COURTS

DIVIDEND

TRANSFER TO RESERVE

NUMBER OF BOARD MEETINGS

ANNUALRETURN

DIRECTORS

KEYMANAGERIALPERSONNEL

DECLARATION BYINDEPENDENTDIRECTORS

ANNUAL EVALUATION OF BOARD'S PERFORMANCE

DIRECTORS'RESPONSIBILITYSTATEMENT

REMUNERATION POLICY

DEPOSITS

REMUNERATION RATIO OFTHE DIRECTORS / KEYMANAGERIALPERSONNEL(KMP) / EMPLOYEES:

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

RELATED PARTY TRANSACTIONS

ENERGY, TECHNOLOGY& FOREIGN EXCHANGE

HUMAN RESOURCES

PREVENTION OFSEXUALHARASSMENT

WEBSITE OF THE COMPANY

AUDITCOMMITTEE

VIGIL MECHANISM

INTERNAL FINANCIAL CONTROL SYSTEMS

LISTING WITH STOCK EXCHANGES

DEMATERIALISATION OFSHARES:

CORPORATE SOCIAL RESPONSIBILITY (CSR)

SECRETARIALAUDITOR

BUSINESS RESPONSIBILITYREPORT

SUBSIDIARY/ASSOCIATES/JOINTVENTURE COMPANIES

CORPORATE GOVERNANCE

STATUTORY AUDITORS AND AUDIT REPORT

COST RECORDS

SECRETARIALSTANDARDS

ACKNOWLEDGEMENT

On behalf of the Board

Annexure I to Directors' Report

The remuneration of Executive Directors includes the variable components such as commission on Net profits of the Company.

(vii) Affirmation that the remuneration is as per the remuneration policy of the Company:

Sec 197 - Particular of employees for the year ended 31 March, 2021.

Annexure II to Directors' Report

IFB Agro Industries Ltd Annual Report 2021