ON AUDIT OF FINANCIAL STANDALONE FINANCIAL
RESULTS
To
The Members of Pioneer Agro Extracts Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Pioneer Agro
Extracts Limited (‘the Company), which comprise the Balance Sheet as at March
31, 2023, the Statement of Profit and Loss and the Cash Flow Statement for the year then
ended and a summary of significant accounting policies and other explanatory information.
Managements responsibilities for the Financial Statements
The Companys Board of Directors is responsible for the matters
stated in section 134(5) of the Companies Act, 2013 ("the Act")with respect to
the preparation of these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Company in accordance with
Indian Accounting Standards (IND AS) specified under section 133 of the Companies Act,
read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other
accounting principles generally accepted in India. This responsibility also includes 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 the frauds and
other irregularities; selection and application of appropriate accounting policies; making
judgment and estimates that are reasonable and prudent; and design, implementation and
maintenance of internal financial control, that were operating effectively for ensuring
the accuracy and completeness of the accounting records, relevant to the preparation and
presentation of financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors Responsibilities
Our responsibility is to express an opinion on these financial
statements based on our audit.
In conducting our audit, we have taken into account the provisions of
the Act, the accounting and auditing standards and matters which are required to be
included in the audit report under the provisions of the act and the rules made thereunder
and the order issued under section 143(11) of the Act.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures selected depend on
the auditors judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the Companys
preparation of the financial statements that give true and fair view in order to design
audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of the
accounting estimates made by the Companies Directors, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the information
required by the Act in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India: (i) in the case of the Balance
sheet, of the state of affairs of the company as at March 31, 2023; (ii) in the case of
the Statement of Profit and Loss, of the profit for the year ended on that date; and (iii)
In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020
("the Order") issued by the
Central Government of India in terms of sub-section (11) of Section 143
of the Act, we give in the
"Annexure A", a statement on the matters specified in the
paragraph 3 and 4 of the order.
2. As required by section 143(3) of the Act, we report that:
(i) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the purpose of our audit;
(ii) 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;
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of account; (iv) In
our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement
comply with the Indian Accounting Standards referred to in section 133 of the Companies
Act, 2013.
(v) On the basis of written representations received from the directors
as on March 31, 2023, and taken on record by the Board of Directors, none of the directors
is disqualified as on March
31, 2023, from being appointed as a director in terms of sub section
(2) of section 164 (2) of the Companies Act, 2013.
(vi) With respect to the adequacy of the internal financial controls
over financial reporting of the Company and the operating effectiveness of such controls,
refer to our separate Report in
"Annexure B".
(vii)With respect to the other matters included in the Auditors
Report and to best of our information and according to the explanation given to us: a) The
company has filed a case against PSPCL against refusal of PSPCL to take the matter of
disputed demand of 3,66,553/- to their Dispute Settlement Committee. The matter has been
decided by Court on 22/03/2022 in favour of the Company and the matter now shall be
referred by PSPCL to their Dispute Settlement Committee. The Dispute Settlement Committee
has decided the case in our favour and the release of recoverable amount is awaited.
b) The Excise & Taxation Department, Government of Punjab has
created demand of VAT
& CST in respect of FY 2012-13 and FY 2013-14 mounting to
Rs.58,03,660/-. The Company is in appeal and no provision has been made in the accounts in
respect of this.
c) Similarly, the Department has created demand of VAT & CST in
respect of FY 2014-15 amounting in total to Rs.1,27,76,267/-. The Company being highly
aggrieved on account of gross and apparent errors contained in the Assessment Order passed
has filed revision with Sales Tax Tribunal for getting the relief in the Assessment Order
passed. No provision has been made in the accounts in respect of this as well. d) In the
event of no foreseeable losses as required under the applicable law or Accounting
Standards, on long term contracts including derivative contracts, no provision has been
made. e) There has been no delay in transferring amounts, required to be transferred, to
the investors education and protection fund by the company.
For PIYUSH MAHAJAN& ASSOCIATES Chartered Accountants Firm
Registration Number - 028669N
|
Sd/- |
|
(PIYUSH MAHAJAN) |
| Place: Pathankot |
Partner |
| Dated: May 25, 2023 |
Membership No. 535190 |
|
UDIN: 23535190BGWEPE1784 |
Annexure A" to the Independent Auditors Report
Referred to in paragraph 1 under the heading ‘Report on Other
Legal & Regulatory Requirement of our report of even date to the financial
statements of the Company for the year ended March 31, 2023:
1. a) The Company has maintained proper records to show full
particulars including quantitative details and situations of Property Plant and
Equipments.
a. As per the information and explanations given to us, there is no
fixed assets held in the name of the company.
b. 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 movable
property is held in the name of the Company.
c. The company has not revalued any Property, Plant and
Equipments during the year.
c) As per the information and explanations given to us,
i. The Company has no inventory during the year and there is no
requirement of any such procedures for such valuation of the same by management.
ii. The company has no working capital or any sanction letter for the
same as on
31.03.2023 in excess of Rs 5 Crore.
d) (a) The company has provided advances to companies and other firms
for the purpose of business which is duly disclosed in the books of the company:
| Nature of Loan Name of Company (Associated Company) |
Aggregate amount during the year |
Balance outstanding as on 31.03.2023 |
| 1. Unsecured Pioneer loans Industries Private Limited,
Pathankot |
0.00 |
4.29 crores |
| Total Amount |
0.00 |
4.29 crores |
iii. The advances made to the companies or firms is with the agreements
made in this behalf and the same is not prejudicial to the companys interest.
iv. The Schedule of repayment of Principal and Interest on the same has
been
Stipulated and the repayment of the same is regular and there is no
outstanding of more than 90 days of any element of such Loan.
e) In respect of loans, investments, guarantees, and security all
mandatory provisions of section 185 and 186 of the Companies Act, 2013 have been compiled
with.
f) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits during the year and do not have any
unclaimed deposits. Therefore, the provisions of the clause 3 (v) of the Order are not
applicable to the Company.
g) The maintenance of cost records has been prescribed by the Central
Government under sub-section (1) of section 148 of the Companies Act, 2013 and the same is
not applicable to the company.
h) In respect of statutory dues:
a) According to information and explanations given to us and the
records examined by us, the Company has been regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, employees state
insurance, income tax, value added tax, custom duty, excise duty, cess and other statutory
dues wherever applicable. b. According to information and explanations given to us, no
undisputed arrears of statutory dues were outstanding as at March 31, 2023, for a period
of more than six months from the date they became payable, except the following: -
(i) However, the Excise & Taxation Department, Government of Punjab
has created demand of VAT & CST in respect of FY 2012-13 and FY 2013-14 amounting to
Rs.58,03,660/-. The Company is in appeal and no provision has been made in the accounts in
respect of this. The company has also deposited 25% of the same as required as per the
provision of law.
(ii) Similarly, the Department has created demand of VAT & CST in
respect of FY 2014-15 amounting in total to Rs.1,27,76,267/-. The Company being highly
aggrieved on account of gross and apparent errors contained in the Assessment Order and
the Company has filed a revision with Sales Tax Tribunal as on 10.10.2022 and the same is
pending. No provision has been made in respect of this. i) The Company has not defaulted
in repayment of dues to Banks and payments have been made strictly as per the repayment
schedule sanctioned by the banks. The Company has no borrowings from financial
institutions by way of debentures.
j) The Company did not raise any money by way of initial public offer
or further public offer (including debt instruments) during the year.
k) According to the information and explanations given to us, no
material fraud by the Company or on the Company by its officers or employees has been
noticed or reported during the course of our audit.
l) According to the information and explanations give to us and based
on our examination of the records of the Company, the Company has paid/provided for
managerial remuneration in accordance with the requisite approvals mandated by the
provisions of section 197 read with Schedule V to the Act.
m) Clause (xiii) of the order is not applicable to the Company as the
Company is not a Chit fund company or Nidhi/ mutual benefit fund/ society.
n) 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 where applicable and details of
such transactions have been disclosed in the financial statements as required by the
applicable accounting standards.
o) The company has appropriate and adequate Internal Control System as
required as compared to the nature and size of the company.
p) The Internal Audit Report of the Company for the period of Audit is
considered by the Statutory Auditor at the time of preparing Independent Audit Report.
q) According to the information and explanations give to us and based
on our examination of the records of the Company, the Company has not made any
preferential allotment or private placement of shares or fully or partly convertible
debentures during the year.
r) 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, paragraph
3(xv) of the Order is not applicable.
s) The Company is not required to be registered under section 45-IA of
the Reserve Bank of India Act 1934.
t) As per the financial ratios and ageing schedule being given in the
Balance Sheet, in our opinion there is no material uncertainty exist on the date of
issuing Audit report and the company is being able to meet its liabilities as on the
Balance Sheet date as and when the same falls within the one year from the balance sheet
date.
For PIYUSH MAHAJAN& ASSOCIATES Chartered Accountants Firm
Registration Number - 028669N
|
Sd/- |
|
(PIYUSH MAHAJAN) |
| Place: Pathankot |
Partner |
| Dated: May 25, 2023 |
Membership No. 535190 |
|
UDIN: 23535190BGWEPE1784 |
Annexure B TO THE AUDITORs REPORT
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF
SUB-SECTION
3 OF SECTION 143 OF THE COMPANIES ACT, 2013 ("THE ACT")
We have Audited the Internal financial controls over Financial
Reporting of Pioneer Agro Extracts
Limited ("the Company") as on 31 March, 2023 in conjunction
with our audit of the financial statements of the Company for the year ended on that date.
MANAGEMENTS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companys management is responsible for establishing and
maintaining internal financial controls based on the internal control over financial
reporting 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
(‘ICAI). 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
companys 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.
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on the Companys internal
financial controls over financial reporting based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI
and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the
extent applicable to an audit of internal financial controls, both applicable to an audit
of Internal Financial Controls and, both issued by the Institute of Chartered Accountants
of India. 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 over financial reporting was established and
maintained and if 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 system over financial reporting and their
operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial
reporting, 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 judgment, including the assessment of the
risks of material misstatement of the 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 Companys internal financial controls
system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companys internal financial control over financial reporting 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 companys internal financial control over
financial reporting includes 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 authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL
REPORTING
Because of the inherent limitations of internal financial controls over
financial reporting, 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 over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate
Internal Financial Controls system over financial reporting and such internal financial
controls over financial reporting were operating effectively as at 31 March 2023, based on
the internal control over financial reporting 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.
For PIYUSH MAHAJAN& ASSOCIATES Chartered Accountants Firm
Registration Number - 028669N
|
Sd/- |
|
(PIYUSH MAHAJAN) |
| Place: Pathankot |
Partner |
| Dated: May 25, 2023 |
Membership No. 535190 |
|
UDIN: 23535190BGWEPE1784 |
+91-9892691696
