We have audited the accompanying financial statements of Pioneer Agro Extracts Limited (‘the Company’),
which comprise the Balance Sheet as at March 31, 2024, 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.
Management’s responsibilities for the Financial Statements
The Company’s 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 withIndian
Accounting Standards (IND AS) specified under section 133 of the act, read withthe 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.
Auditor’s 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 auditor’s 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 Company’s 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.
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, 2024;
(ii) in the case of the Statement of Profit and Loss, of the loss 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 (Auditor’s 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, 2024, and taken on
record by the Board of Directors, none of the directors is disqualified as on March 31, 2024, 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 Auditor’s Report and to best of our information and
according to the explanation given to us :
a. As per the Court judgement dated 22/03/2022 regarding PSPCL case for recovery of Rs.3,66,553/-,
the suit was decreed and, as per the Court Order, the dispute was referred by PSPCL to their Circle
Level Dispute Settlement Committee. The Dispute Settlement Committee has decided the case in
our favour and allowed the refund of Rs.272064/- in July 2023 and the balance stands written off.
b. The Department of Excise & Taxation vide VAT Assessment Order dated 18.11.2019 for FY 2012¬
2013, had raised a demand (including penalty and interest) under Punjab VAT Act 2005 and CST Act
1956 to the tune of Rs.22,63,734/- and Rs.1,17,813/- respectively. The VAT demand was disputed in
appeal and a sum of Rs.5,65.935/- was deposited as appeal money. The Company took up the
matter in OTS scheme of Punjab Government and a sum of Rs.3,24,783/- and Rs.,43,474/- was
determined as payable respectively under The Punjab One Time Settlement Scheme for recovery of
Outstanding Dues, 2023. The OTS scheme order dated 26.02.2024 settled the outstanding amount
in respect of VAT which was less than the amount deposited. The entire paid amount ofRs.5,65,935/-
was written off, the excess not being refundable. The determined amount of CST was settled on
26.02.2024 at Rs.43,474/- and deposited by Company on 03.02.2024.
c. The Department of Excise & Taxation vide VAT Assessment Order dated 08.12.2020 for the FY
2013-2014, has raised a demand (including penalty and interest) of Rs.34,22,113/-under Punjab VAT
Act 2005. The VAT demand was disputed in appeal and a sum of Rs.8,55,529/- was deposited as
earnest money. The Company took up the matter under OTS scheme of the Punjab Government and
an amount of Rs.4,90,978/- was determined as payable under The Punjab One Time Settlement
Scheme for recovery of Outstanding Dues, 2023. The OTS scheme order dated 26.02.2024 settled
the outstanding amount in respect of VAT which was less than the amount deposited. The entire paid
amount of Rs.8,55,529/- has been written off, the excess not being refundable.
d. 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. The
Company had approached Sales Tax Appellate Tribunal for adjudication on account of grave errors
contained in the Assessment Order. Provision towards VAT shall be made, if any, after the decision
of the Appellate Tribunal. The CST demand of Rs. 49,935/- has been settled under OTS scheme and
deposited.
e. The Department of Excise & Taxation as per the VAT Assessment Order dated 11.11.22 passed for
the FY 2015-2016 has raised demand (including penalty and interest) under Punjab VAT Act 2005
and CST Act 1956 of Rs.8,40,347/- and Rs.1,475/- respectively against which an amount of
Rs.1,19,368/- and NIL was determined as payable respectively under The Punjab One Time
Settlement Scheme for recovery of outstanding dues 2023. The determined amount of VAT was
settled on 26.02.2024 through payment of Rs.1,19,368/- made on 03.02.2024.
f. 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.
g. There has been no delay in transferring amounts, required to be transferred, to the investor’s
education and protection fund by the company.
For PIYUSH MAHAJAN & ASSOCIATES
Chartered Accountants
Firm Registration Number - 028669N
(PIYUSH MAHAJAN)
Place : Pathankot Partner
Dated :May 23, 2024 Membership No. 535190
UDIN: 24535190BKFPDR2651
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