The Directors have pleasure in presenting the 30th Annual Report of
the Company and the Audited Financial Statements for the year ended
31st March, 2012.
1. FINANCIAL RESULTS (Rs. in lacs)
Year ended Year ended
Sales and Other Income (incl.
Excise Duty) 75627.03 58471.24
Profit prior to Finance charges
& Depreciation, amortization
and impairment 5116.58 3627.58
Less : Finance charges 36.12 184.11
Depreciation 1263.85 820.57
Profit before Taxation 3816.61 2622.90
Less: Provision for Taxation:
Current Tax 1334.74 930.14
Deferred Tax (172.81) (89.76)
Less : Income Tax adjustment
for earlier years (0.02) 0.11
Profit after Tax 2654.70 1782.41
Balance carried to Balance Sheet 2654.70 1782.41
2. MANAGEMENT DISCUSSION & ANALYSIS
During the year under review your Company has recorded gross turnover
of Rs.756.27 crores (as against Rs.584.71 crores in 2010-11) recording
a growth of 29.34%.
The Company has achieved profit before tax of Rs 38.16 crore as against
Rs 26.23 crore, and net profit of Rs 26.55 crore as against Rs 17.82
crore in the previous year. During the year, the Durgapur bottling
plant of the Company was closed down based on the Government directive
to relocate for which the company has incurred Rs 2.85 crore towards
Employees Separation scheme. The assets of the molasses distillery have
been impaired based on its realizable value and a loss of Rs 3.48 crore
has been charged to the accounts.
Better working capital management and ploughing back of profits has
reduced the interest cost during the year. The company is almost debts
Earning per equity share is Rs.33.15 as compared to Rs.22.26 per share
in previous year.
REVIEW OF DIVISIONAL PERFORMANCES Alcohol and Bottling:
The molasses distillery operated only for few days in the year with
small quantity of local molasses available in the State of West Bengal.
Pursuant to discontinuation of the molasses transportation cost
reimbursement policy by the State Government and operation of the
Distillery becoming un-viable, it was planned to convert the molasses
distillery into multi feed distillery subject to the approval of the
State Government. Pending such approval the machineries are lying idle
and un-utilized for more than a year. The assets of the molasses plant
which will not be used on conversion have been impaired at its
The grain distillery operated at 110% of the capacity and with
efficient purchase of raw material and reduction in overhead, the
margins improved during the year. Further storage capacity has been
built up at Noorpur for storing grains which will reduce the storage
cost as well as the wastage. Investment has also been made in the
distillery by enhancing the capacity of the turbines to generate more
cheap power. The Company could not obtain CDM benefits due to non
availability of rice husk within the state.
After abolition of Privilege area by the State Government in the
Country Spirit segment, the production capacity was enhanced by setting
up a new bottling plant, with two bottling lines, at Panagarh in West
Bengal. Further capacity expansion at Panagarh is under process and
will be completed in financial year 2012-13. The bottling plant at
Durgapur was closed during the year and the workmen were given a
separation scheme which costed Rs 2.85 cr to the company.
On IMFL, your Company has suffered due to increase in the duties and
taxes in the state of West Bengal, the demand in the regular segment
has declined. Margins are declining due to high input cost and unable
to increase the prices due to stiff competition. New brands viz.,
''Jubilation'' Rum, ''Leonov'' luxury Vodka in Bengal and Benjamin''
brandy in Orissa was launched but could not achieve the desired volume
due to stiff competition. Widespread market promotions are being held
to re-build the position in the market.
The Marine Division has performed well during the year. To increase
export of value added products the Company has modernised its plant
with new IQF Machines and other freezing equipment.
The Shrimp Feed trading business has recorded a growth of 26% in value
and has a market share of 48% in West Bengal. Aqua Shops have
been opened by the company for providing one window service to the
farmers in terms of supply of feed, medicine, technology, finance,
training etc. More such aqua shops are being planned to provide service
to the farmers in the State of West Bengal.
IFB ROYAL Retail Brand of frozen Marine Products are now
available in major METROS in the country, sale recorded a growth of 33%
in value. The Company is in the process of developing more value added
products for the Retail Consumers in the country.
OPPORTUNITIES & CHALLENGES:
The current accounting year will again be another year of tough
challenges. The bumper sugarcane production in Uttar Pradesh will
reduce the spirit cost during the year leading to lower margins on sale
of spirit from the distillery. Setting up of new distilleries in
neighboring states and new bottling plants in West Bengal is likely to
bring about stiff challenge in future. The increase in Excise Duty in
Country liquor segment is likely to reduce the margins in the current
The increased bottling capacity, once becoming fully operational will
bring good opportunity to the Company by way of volume growth and
market share in the Country Liquor segment.
The Company is continuing its efforts to attain further efficiencies in
fermentation and distillation, improve upon its bio-gas generation to
reduce fuel cost, and to further improve power generation to reduce the
cost of production. The Company is giving continuous emphasis to cut
costs on inputs, minimise wastages and make optimal use of human
resources on all fronts.
In IMFL, the Company being a regional player in the industry faces a
stiff competition from large Indian as well as multinational companies.
Widespread promotion is being planned to make the newly launched
The Company targets to export more value added products and with the
favorable currency rates, expects to be a good year for export market.
With the overall global economic growth and better demand for frozen
sea food it expects to have better demand for its Marine products in
the domestic market. The Company plans to focus on aggressive marketing
of its products in order to penetrate into householders'' as well as
retail segment in India.
For the development of the human resources number of training programmes
was organized during the year with outside faculties. Employees were
also sent to the renowned technical institutes for continuous update on
its knowledge and skill. However, the same is not sufficient
considering the complexity of the today''s business environment. The
Company plans to organize more such training programmes for the overall
development of people.. Total number of employees in the Company was
384 as on 31st March 2012 as against 430 as on 31st March 2011.
Internal Control System:
The Company maintains a system of internal control designed to provide
a high degree of assurance regarding the effectiveness and efficiency
of operations, the adequacy of safeguards for assets, the reliability
of financial controls, compliance with applicable laws and regulations.
Statements in the Management''s discussion and analysis describing the
Company''s projections, expectations or predictions may be ''forward -
looking statements'' within the meaning of applicable securities laws
and regulations. Actual results could differ materially from those
expressed or implied. Important factors that would make a difference to
the Company''s operations include raw material prices, changes in
government regulations, tax regimes and economic developments within
the country and weather patterns.
Your Directors have decided not to recommend any dividend for the
financial year under review to conserve the resources for working
capital and some capital expenditure projects.
In accordance with the provisions of the Companies Act, 1956 read with
Articles of Association of the Company, Mr A K Nag and Mr Nandan
Bhattacharya retire by rotation and being eligible, offer themselves
The details about their qualification, other directorships etc. as per
Clause 49 of the Listing Agreement are provided separately and annexed
to the notice.
5. DIRECTORS'' RESPONSIBILITY STATEMENT PURSUANT TO SECTION 217(2AA) OF
THE COMPANIES ACT, 1956.
The Directors, having ensured through the Officer designated for the
purpose, hereby confirm:
i. That in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
ii. That the Directors have selected such accounting policies and
applied them consistently and made judgements and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit of the Company for that year.
iii. That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
iv. That the Directors have prepared the annual accounts on a going
6. CORPORATE GOVERNANCE
Pursuant to clause 49 of the Listing Agreement, a report on Corporate
Governance and the Auditors'' Certificate in this regard form part of
this report and are annexed herewith.
7. AUDITORS & AUDITORS'' REPORT
The Auditors of the Company M/s Haribhakti & Co., Chartered Accountants
retire at the ensuing Annual General Meeting of the Company and have
expressed their unwillingness to be re-appointed. M/s Walker, Chandiok
& Co., Chartered Accountants has given their consent for appointment
and have also confirmed that their appointment, if made, would be
within the limits prescribed under Section 224(1)(B) of the Companies
Observations made in the Auditors Reports have been adequately dealt
with in the notes to the financial statements annexed to the Balance
Sheet and Profit & Loss Account.
The Company has no subsidiary as at the end of financial year.
The Board of Directors expresses its appreciation for sincere efforts
made by the employees of your Company at all levels during the year and
for their co-operation.
The information required under section 217(2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975, as
amended, forms part of this Report.
10. ENVIRONMENT, CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
Your Company has in place a system for controlling and monitoring
pollutants at all factories in order to comply with environmental
standards and legislation. Your Company is committed to ensuring green
and pollution free environment as well as clean and safe workplace at
all the plant locations.
As required by the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988 the relevant particulars are given
in the Annexure to this report.
Your Directors express their sincere thanks and place on record their
deep appreciation for the patronage extended by the shareholders,
valued customers, financial institutions, bankers, government
authorities and the investors for their continued support and
confidence in the Company.
On behalf of the Board
Bikram Nag A. K. Banerjee
Joint Executive Chairman Managing Director
Kolkata, 29th May, 2012