Pioneer Agro Extracts Ltd Auditor Reports

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, 2026, 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 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, read with notes thereon, 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, 2026;

(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.

Emphasis of Matter Paragraph

We draw attention to Note 22 of the Financial Statements, which describes the companys decision to opt for the new regime under section 115BAA of the Income Tax Act,1961 and the consequent written off MAT Credit entitlement amounting to Rs.42.28 Lacs, during the current period and disclosed as an Exceptional Item. Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2016 (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, 2026, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2026, 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) As per the VAT Assessment Order dated 22.11.2021 passed for the FY 2014-2015 by the Department of Excise & Taxation, demand (including penalty and interest) under Punjab VAT Act 2005 and under CST Act 1956 was raised of Rs.1,26,76,398/- and Rs.99,869/- respectively. Under The Punjab One Time Settlement Scheme for Recovery of Outstanding Dues, 2023 and 2025, while the CST demand matter was settled by the Company in FY 2024-25 the VAT demand matter too stand settled by the Company in FY 2025-26. b) 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. c) There are no 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

	(PIYUSH MAHAJAN)
Place: Pathankot	Partner
Dated: May 25, 2026	Membership No. 535190
	UDIN: 26535190IKHQAV1911

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, 2026:

1. a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

b) According to the information and explanations given to us, the Company does not have any intangible assets. Accordingly, the requirement to maintain proper records showing full particulars of intangible assets is not applicable.

c) The Property, Plant and Equipment have been physically verified by the management at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company does not own any immovable property. Accordingly, the reporting requirement under Clause 3(i)(c) of the Order regarding title deeds is not applicable.

e) The Company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets during the year. Accordingly, the reporting requirement under Clause 3(i)(d) of the Order is not applicable.

f) According to the information and explanations given to us, no proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

2. As per the information and explanations given to us:

a) 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.

b) The company has not availed any working capital facility and nor any facility exceeding Rs. 5 crores has been sanctioned as on 31.03.2026.

3. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has granted unsecured advances in the nature of loans to an associated company during the year. The Company has not made any investments, provided any guarantee or security, or granted any loans or advances in the nature of loans to any other companies, firms, Limited Liability Partnerships, or any other parties during the year.

a) Based on the audit procedures performed, the details of advances in the nature of loans granted during the year and the balance outstanding at the balance sheet date are as follows:

Particulars	Guarantees	Security	Loans / Advances in nature of loans
A. Aggregate amount granted/provided during the year:
- Subsidiaries, Joint Ventures and	Nil	Nil	Rs. 0.07 Crores
Associates (Pioneer Industries Pvt. Ltd.)
- Others	Nil	Nil	Nil
B. Balance outstanding as at balance sheet date:
- Subsidiaries, Joint Ventures and	Nil	Nil	Rs. 1.34 Crores
Associates (Pioneer Industries Pvt. Ltd.)
- Others	Nil	Nil	Nil

b) According to the information and explanations given to us and based on the audit procedures performed, the terms and conditions of the grant of the aforesaid advances in the nature of loans are not prejudicial to the Companys interest.

c) In respect of the aforesaid advances in the nature of loans, the schedule of repayment of principal has been stipulated as repayable on demand. According to the information and explanations given to us, the payment of interest (at bank rate) has been stipulated and the receipts of interest are regular.

d) In respect of the aforesaid advances in the nature of loans, there is no amount overdue for more than ninety days as at the balance sheet date.

e) According to the information and explanations given to us, no advance in the nature of a loan granted by the Company which has fallen due during the year, has been renewed or extended or settled by fresh loans to settle the overdues of existing loans given to the same parties.

f) The Company has granted advances in the nature of loans which are repayable on demand. The details of the same are as follows:

Particulars	Amount (Rs. in Crores)	Percentage of total loans granted during the year
Aggregate amount of loans/advances granted during the year which are repayable on demand Of the above, aggregate amount granted to	0.07	100%
Promoters and Related Parties	0.07	100%

4. 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.

5. 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.

6. The maintenance of cost records has been prescribed by the Central Government under subsection (1) of section 148 of the Companies Act, 2013 and the same is not applicable to the company.

7. 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, 2026, for a period of more than six months from the date they became payable.

8. According to the information and explanations given to us and the records of the Company examined by us, there were no transactions relating to previously unrecorded income that were surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

9. The Company has not borrowed from Banks and thus has not defaulted in repayment of dues to Banks. The Company has no borrowings from financial institutions by way of debentures.

10. According to the information and explanations given to us, the Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year. Furthermore, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year. Accordingly, the reporting requirements under Clause 3(x)(a) and 3(x)(b) of the Order are not applicable to the Company.

11. Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year.

12. 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.

13. 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.

14. 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.

15. 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.

16. a) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934).

b) The Company has not conducted any Non-Banking Financial or Housing Finance activities during the year.

c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India.

d) According to the information and explanations provided to us, the Group does not have any Core Investment Company (CIC) as part of the Group.

17. Based on our examination of the financial statements and according to the information and explanations given to us, the Company has incurred a cash loss of Rs. 28.08 (depreciation and Mat credit written off has been considered for the purpose of calculation of cash loss) Lakhs during the current financial year. However, the Company did not incur any cash loss in the immediately preceding financial year.

18. According to the information and explanations given to us, there has been no resignation of the statutory auditors during the year.

19. 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.

20. According to the information and explanations given to us, the provisions of Section 135 of the Companies Act, 2013 regarding Corporate Social Responsibility are not applicable to the Company. Accordingly, the reporting requirements under Clause 3(xx) of the Order are not applicable.

21. The reporting under Clause 3(xxi) of the Order is not applicable in respect of the audit of standalone financial statements. Accordingly, no comment in respect of the said clause has been included in this report.

For PIYUSH MAHAJAN & ASSOCIATES

Chartered Accountants Firm Registration Number - 028669N

	(PIYUSH MAHAJAN)
Place: Pathankot	Partner
Dated: May 25, 2026	Membership No. 535190
	UDIN: 26535190IKHQAV1911

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 of 31 March, 2026 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 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 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 2026, 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

	(PIYUSH MAHAJAN)
Place: Pathankot	Partner
Dated: May 25, 2026	Membership No. 535190
	UDIN: 26535190IKHQAV1911