Auditor qualifies IFB accounts

Sumanta Ray Chaudhuri

Kolkata, Aug 14: IFB Industries’ outgoing auditor, Bhadra & Bhadra, does not know where the company is going. The statutory auditor has noted that while the accounts for the year to March 31, 2001, have been prepared on the basis of a “going concern”, it cannot say whether the company will continue to be so.

In its reply, the management has said that most operations are yielding a positive cash flow, and the company is meeting all obligations including statutory ones. IFB Industries’ chairman, Mr Bijon Nag, declined to comment separately on the issue when questioned by The Financial Express after the annual general meeting of shareholders .

Bhadra & Bhadra, in its last year as IFB’s auditor, has noted the following:
1) Has been making losses repeatedly and its accumulated loss has exceeded the net worth.
2) Is not in a position to honour its committment towards various secured and unsecured liabilities.
3) Has failed to implement a proposal to restructure its debts to some major institutions.

“In the event, the same not being held to be a ‘going concern’ and the various assets and liabilities being consequently adjusted with respect to their realisable value, the impact thereof has not been ascertained upon by us...,” the auditor has said. The management has said that, apart from the fact that most operations are yielding positive cash flow, the company is “regularly meeting all its obligations in respect of payment of operational dues, salary, wages and all other statutory dues like PF, ESI, sales tax, excise, etc.”