Notes to Accounts of Pioneer Agro Extracts Ltd.

Mar 31, 2024

21 TAXES ON INCOME

- Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of
adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the company will
pay normal income tax, Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future
economic benefit associated with it will flow to the Company.

- Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting
income that orginiate in one period and are capable of reversal in one or more subsequent periods. Deffered tax is
measured using the tax rates and the tax laws enacted or substantially enacted as the reporting date. Deffered tax
liabilites are recognised for all timing difference. Deffered tax asset in respect of unabsorbed depreciation and carry
forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available
to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that
reasonable certainty exists that sufficient future taxable income will be available against which these can be realised.
Deferred tax assets and liabilities are offset is such items relate to taxes on income leived by the same governing tax laws
and the Company has a legally enforcable right for such set off. Deferred tax assets are reviewed at each Balance Sheet
date for their realisability.

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement

- of Profit and Loss.

22 NOTES TO ACCOUNTS FORMING PART OF THE BALANCE SHEET

(i) The Company had closed down its vanaspati and edible oil business and has sold majority of its assets as per Postal
Ballot Resolution passed on 18/12/2013 as per section 180(1)(a) of the Companies Act, 2013 and other applicable
statutory provisions.

(ii) Depreciation during the year has been provided as per the rates mentioned in the schedule II of the Companies Act 2013.

(iii) The company has recognised Deferred Tax Asset on unabsorbed depreciation to the extent of corresponding Deferred
Tax Liability on the difference between the book value and written down value of the fixed assets under Income Tax Act,
1961. The Company has not recognised Deferred Tax Asset on unabsorbed depreciation and brought forward business
losses based on management''s estimates of future profits.The same has been calculated as per the new provisions of
section 115BAA of the Income Tax Act @ 25.168%

(iv) 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.

(v) 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 of Rs.5,65,935/- was written off, the excess not being
refundable. The determined amount of CST was settled on 26.02.2024 by payment of Rs.43,474/- made on 03.02.2024

(vi) 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 appeal 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/-
was written off, the excess not being refundable.

(vii) As per the VAT Assessment Order dated 22.11.2021 for the FY 2014-2015 passed 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.

However the Company took up the CST demand matter under OTS scheme of the Punjab Government and an amount of
Rs.49,935/- 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 CST demand on the
basis of Rs.49,935/- deposited by Company on 03.02.2024.

(viii) 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.

(ix) The company does not have any stock during the year so there is no valuation part of Inventory which is to be considered.

Signatures to Notes forming part of financial statements

For PIYUSH MAHAJAN & ASSOCIATES, For Pioneer Agro Extracts Limited

Chartered Accountants
Firm Reg. No.: 028669N

(PIYUSH MAHAJAN) (JAGAT MOHAN AGGARWAL) (SANJEEV KUMAR KOHLI)

Partner Managing Director Director

Membership No. 535190 DIN : 00750120 DIN : 07144225

UDIN - 24535190BKFPDR2651

Place: Pathankot (DHARNA BHATIA) (SHYAM MANOHAR PARASHAR)

Dated: 23.05.2024 Company Secretary Chief Financial Officer

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Mar 31, 2015

1 : RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD 18 A Names of related parties & description of relationship

Related parties where control exists :

(i) Pioneer Industries Limited Due to common director

(ii) Jagat Mohan Aggarwal (HUF) Director being Karta

(iii) Ram Piyari Aggarwal Family Trust (HUF) Director being Karta


(v) M/s Jagat Roller Flour Mills Partners being Director relative

(vi) Mohinder Pal Aggarwal (HUF) Director being Karta

(vii) Jagat Mohan Aggawal Director of the Company

(viii) Shuchita Aggarwal Director's relative

(ix) Mehak Director's relative

(x) Saru Director's relative

(xi) Vasu Agg arwa Director's relative

II Key Management Personnels :

(i) Shri Jagat Mohan Aggawal Managing Director

(ii) Shri Ajay Goel Joint Managing Director

(iii) Shri Bharat Bhushan Aggarwal Executive Director

(iv) Shri Shyam Manohar Parashar Chief Financial Officer

(v) Shri Sahil Mahajan Company Secretary

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Mar 31, 2014

1. SEGMENT REPORTING

The Company Is dealing in Vanaipail & Refined OKs which in conlext to AS 17 Issued by The Institute of Chartered Accoutunts of India Is me only business segment

2 : RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD 18 A Wames of related parties & descriotiort of relatlonshio

(1) Pioneer industries Limited '' Due to common directors

(2) jagat Mohan Aggarwal (HUF) Director Being Karta

(3) Ham Ptyart Aggbtwal Family Trust (HUF Director being Karta

(4) Damtal Flour & Food (P) Ltd. Directors being Dirpdor relative

(5) Mrs Jaget Roller Flour Mills Partners being Director relative

(6) Mohinder Pal Aggarwal (HUf) Director being Karts

II Key Management Personnels:

(1) ShrUsgal Mohan Aggawal Managing Dlreotor

(ii) Shnajay Goel Joint Managing Director

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Mar 31, 2013

SEGMENT REPORTING

The Company is dealing in Vanaspati & Refined Oils which in context to AS 17 issued by The Institute.of Chartered Accoutants of India is the only usiness segment.

CONTINGENT LIABILITY

The Company.has given guarantee in favour of Punjab Pollution Control Board aggregating to Rs.5 Lacs (P. Yr. Rs.10 Lacs). ; fne estimated amount of capital contracts remaining to be executed (net of advances made) is of Rs. 100.72 Lakh (P. Yr NIL).

In accordance with AS-15 the following contributions to Defined contribution plans are treated as expenses during the year.

- Employer''s Contribution to Provident Fund

Amount (in Rs.)

2012-13 387956.61

2011-12 245413.00

2010-11 162463.00

- Garutiy Payment to LIC as post employment Plan

Amount (in Rs.)

2012-13 488194.00

2011-12 408493.00

2010-11 228787.00

The premuim is based on following acturial assumption

- Discounting factor 8%

- Salary increase 8%

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Mar 31, 2010

1. Contingent Liabilities:

The company has given corporate guarantee as security for Loan taken by Pioneer Industries Limited a Company to the tune of Rs.21.60 crores and second charge is created on its assets as security for the Loan taken by Pioneer Industries Limited.

2. No provision has been made for the gratuity as the Company is contributing towards Group Gratuity scheme of the LIC in respect of Employees who have put in requisite number of years service.

3. The previous year figures have been regrouped, restated wherever considered necessary to confirm with the current year, figures and shown in brackets.

4. Fixed Assets installed and put to use have been certified by the management and relied upon by the auditors, being a technical matter.

5. The debtors and creditors balances remain unconfirmed.

6. The accounts include managerial remuneration to the Managing Director, Joint Managing Director and Whole Time Directors appointed under the Companies Act, 1956 amounting to Rs.5,10,000/- (Rs.240000), Rs. 96,000/- (Rs. 96000) and Rs. 4,56,000/-(Rs.2,36,040) respectively.

7. The Company has Deferred Tax Asset relating to less Depreciation allowable as per Income Tax Act to the extent of Rs.8.65 Lacs. The deferred tax liability relating to the difference in the Opening Fixed Assets as per Book & IT amounts to Rs.62.38 Lacs. In the absence of fair estimation of future taxable income, the Company has not yet created Deferred Tax Liability of Rs. 53.73 Lacs.

8. The company has incurred an expense of Rs.11,22,413 towards developmental cost attributable to in house process improvisation of refined oil and the same is being amortised within a period of seven years beginning April 2005.

9. Schedule I to XIV form an integral part of Balance Sheet and Profit and Loss Account.

As per our report of even date attached