Pioneer Agro Extracts Ltd.
|BSE: 519439||Sector: Others|
|NSE: N.A.||ISIN Code: INE062E01014|
|BSE 00:00 | 30 Aug||Pioneer Agro Extracts Ltd|
|NSE 05:30 | 01 Jan||Pioneer Agro Extracts Ltd|
|BSE: 519439||Sector: Others|
|NSE: N.A.||ISIN Code: INE062E01014|
|BSE 00:00 | 30 Aug||Pioneer Agro Extracts Ltd|
|NSE 05:30 | 01 Jan||Pioneer Agro Extracts Ltd|
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 2019 the Statementof Profit and Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant 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 ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with Indian AccountingStandards (IND AS) specified under section 133 of the act read with the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India. This responsibility also includes the maintenance of adequateaccounting records in accordance with the provisions of the act for safeguarding theassets of the company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgment and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the act and the rules made thereunder and the orderissued under section 143(11) of the Act.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation of the financialstatements that give true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompanies Directors as well as evaluating the overall presentation of the financialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(i) in the case of the Balance sheet of the state of affairs of the company as atMarch 31 2019;
(ii) in the case of the Statement of Profit and Loss of the profit for the year endedon that date; and
(iii) In the case of the Cash Flow Statement of the cash flows for the year ended onthat 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 ofthe Act we give in the "Annexure A" a statement on the matters specified inthe 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 bestof 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 theCompany so far as it appears from our examination of those books;
(iii) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealtwith 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 FlowStatement comply with the Indian Accounting Standards referred to in section 133 of theCompanies Act 2013.
(v) On the basis of written representations received from the directors as on March 312019 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of sub section (2) ofsection 164 (2) of the Companies Act 2013.
(vi) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".
(vii) With respect to the other matters included in the Auditor's Report and to best ofour information and according to the explanation given to us :
a) The company does not have any pending litigation.
b) In the event of no forseeable losses as required under the applicable law orAccounting Standards on long term contracts including derivative contracts no provisionhas been made.
c) There has been no delay in transferring amounts required to be transferred to theinvestor's education and protection fund by the company.
ANNEXURE - A TO THE AUDITOR'S REPORT
ADDITIONAL INFORMATION ANNEXED TO THE INDEPENDENT AUDITORS' REPORT
In respect of Company's fixed assets :
1. a) The Company has maintained proper records to show full particulars includingquantitative details and situations of fixed assets.
b) As per the information and explanations given to us the fixed assets of the Companyhave been physically verified by the management at reasonable intervals and no seriousdiscrepancies between the book records and physical verification were noticed.
c) The Company has disposed off most of the assets i.e. land building & weighbridge during the previous years.
2. a) As per the information and explanations given to us the Company does not haveany inventories.
b) The Company has disposed off entire inventories during the preceding previous yearsand has closed down the operations.
3. The Company has granted loan amounting to Rs.2.52 Crore to Pioneer IndustriesLimited the Party covered in the register maintained u/s 189 of the Companies Act 2013.
(a) In our opinion and according to the information and explanations given to usrespective interest is being charged by the company.
(b) There is no overdue amount in respect of above loans as per explanation available.
4. In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.
5. In our opinion and according to the information and explanations given to us theCompany 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 theCompany.
6. The cost records prescribed by the Central Government under section 148(1) of theCompanies Act 2013 have not been maintained due to discontinued edible oil business.
7. In respect of statutory dues:
(a) According to information and explanations given to us and the records examined byus the Company has generally been regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund income tax value added tax GST andother statutory dues wherever applicable.
(b) According to information and explanations given to us no undisputed arrears ofstatutory dues were outstanding as at March 31 2019 for a period of more than six monthsfrom the date they became payable.
(c) According to the records of the Company there are no dues outstanding in respectof income tax GST VAT service tax excise-duty cess etc on account of any dispute.
8. The Company does not have any loans and borrowings from any financial institutionbanks government or debenture holders during the year. Accordingly paragraph 3(viii) ofthe Order is not applicable.
9. Based on our examination of the records and the information and explanations givento us the Company has not raised any loans and/or advances by way of publicissue/follow-on offer (including debt instruments) and term loans during the year.Accordingly paragraph 3(ix) of the Order is not applicable.
10. According to the information and explanations given to us no material fraud by thecompany or on the company by its officers or employees has been noticed or reported duringthe year.
11. According to the information and explanations given to us and based on ourexamination of the records of the company the Company has paid/provided for ManagerialRemuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V of the Act.
12. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.
13. According to information and explanations given to us transactions with relatedparties are in compliance with section 177 and section 188 of the Act and the details ofsuch transactions has been disclosed in the financial statements as required by theapplicable accounting standard.
14. Clause (xiv) of the order is not applicable to the Company as the Company is notdealing or trading in shares securities debentures and other investments.
15. According to information and explanations given to us the company has not enteredinto non cash transactions with Directors or persons connected with them. Accordinglyparagraph 3(xv) of the Order is not applicable.
16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
ANNEXURE - B TO THE AUDITOR'S REPORT
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013 ("THE ACT")
We have audited the internal financial controls over financial reporting of PioneerAgro Extracts Limited ("the Company") as of 31 March 2019 in conjunction withour audit of the financial statements of the Company for the year ended on that date.
MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.