Pioneer Agro Extracts Ltd Management Discussions.


Your company (PAEL) was incorporated on 20th of January, 1993 with The Registrar of Companies, Punjab, with main object for manufacturing of Vanaspati, refined oils and other related products. In 1993, PAEL set up a 30 TPD vanaspati plant at Village Azizpur, The. and Distt. Pathankot, Punjab. The unit started commercial production in July, 1994. In 1995, PAEL enhanced the capacity to 80 TPD of vanaspati and refined oil and 10 TPD of stearic acid at the same location. The project was completed in record time and started the commercial production before the scheduled time on enhanced capacity. In 2002, PAEL enhanced the production capacity of Refined Oil from 30 TPD to 90 TPD.

It was a leading manufacturer and marketer of healthier edible and vanaspati oils having strong portfolio of Brand viz ISHWAR. Company experienced a cut throat competition from other established market players and unorganized sectors, and Company had sold its edible and vanaspati oil business in year 2015. Currently it is listed on BSE Limited, Promoters along with PAC of the company holds 60.35% equity shares in the company. Jagat Mohan Aggarwal is the chairman and managing director of the company. In line with expansion plans, Pioneer Agro is keen on identifying new and different business opportunity in worldwide markets with an aim to replicate its leadership position in new business.


The Company has evolved a system of internal controls to ensure that the transactions are authorized, recorded and correctly reported. The internal control system is supplemented by management reviews and independent periodical internal audit which evaluates the functioning and quality of internal control and provide assurance of its adequacy and effectiveness.

The Key Constituents of the Internal Control System are:

• Establishment and review of Business Plans

• Identification of Key Risks and opportunities

• Policies on operational and strategic risk management

• Clear and well defined organization structure and limits of financial authority

• Continuous identifications of areas requiring strengthening of internal controls

• Operating procedures to ensure effectiveness of business processes

• System of monitoring compliance with statutory regulations

• Well defined principles and procedures for evaluation of new business proposals/capital expenditure.

• A robust management information system

• A robust internal audit & review system

M/s Yudhisthir & Co., Chartered Accountants have been appointed as Internal Auditor to carry out Internal Audit in terms of provisions of Section 138 of Companies Act, 2013.

Reports of Internal Audit are regularly reviewed by the Management and corrective action implemented & will be taken to strengthen the controls and enhance the effectiveness of the existing system. Internal Audit Reports are presented to the Audit Committee of the Board


Pioneer Agro is keen on identifying new and different business opportunity in worldwide markets with an aim to replicate its leadership position in new business.


The revenue from the operation of the Company is Nil due to close of its operations and other income for the financial year under review were of Rs. 61.10 lakhs as against of Rs. 145.87 lakhs which were recorded for the previous financial year.

An overview of the financial performance is given in the Directors Report. The Audit Committee constituted by the Board of Directors periodically reviews the financial performance and reporting systems.


Statement in this Management Discussion and Analysis report detailing the Companys objective, projections about the future, estimates, expectations or predictions including, but not limited to, statements about the Companys strategy for growth, products development, market position and expenditures 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 could difference to the Company operations include economic conditions affecting demand / supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statues or other incidental factors.