Mar 31, 2015
The Directors have pleasure in presently their 23rd Annual Report
together with the Audited Accounts of the Company for the Year ended
March 31, 2015. Financial Results:
March 31,2015 March 31,2014
Particulars
Gross Sales 517019247 381205631
Less: State Excise & VAT 20476 64834
Net Sales 516998771 381140797
Other Income 3353819 2964338
Total 520352590 384105134
Profit before depreciation & -19675948 -10053346
taxation
Less: Depreciation 6715316 7577899
Less: Provision for taxation 657175 710644
Add: Prior period adjustment
(Taxation) 93750 0
Profit after taxation -25827839 -16920581
Add: Balance brought forward
from previous year WTO1OH -17745164 -824583
Surplus available for
appropriation 0 0
Appropriations 0 0
General Reserve 0 0
Proposed Dividend 0 0
Tax on Dividend
Additional depreciation on
fixed asset 0 0
Balance carried to Balance
sheet -43573003 -177451664
DIVIDEND:
During the year under review, the Board of Directors has not
recommended any dividend on the equity share capital. The Company wants
to conserve the resources and strengthen the financial base of the
company. So that your directors do not recommended any dividend for the
financial year ended 31a March, 2015.
SHARE CAPITAL:
The paid up equity capital as on March 31, 2015 was Rs.4, 33 23,000.
During the year under review, the company neither issued shares with
differential voting rights nor granted stock options nor sweat equity.
FINANCE:
Cash and cash equivalents as at March 31, 2015 was 27,89,868/- The
company continues to focus on judicious management of its working
capital, Receivables, inventories and other working capital parameters
were kept under strict check through continuous monitoring.
FIXED DEPOSITS:
Your Company has not accepted any deposits within the meaning of
Section 73 of the Companies Act, 2013 and the Companies (Acceptance of
Deposits) Rules, 2014.
PARTICULARS OF LOANS. GUARANTEES OR INVESTMENTS:
The company has not given any loans or guarantees covered under the
provisions of section 186 of the Companies Act, 2013.
The detail of the investments made by company is given in the notes to
the financial statements.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations. The scope and authority of the
Internal Audit function is defined in the Internal Audit Manual. To
maintain its objectivity and independence, the Internal Audit function
reports to the Chairman of the Audit Committee of the Board & to the
Chairman & Managing Director.
The Internal Audit Department monitors and evaluates the efficacy and
adequacy of internal control system in the Company, its compliance with
operating systems, accounting procedures and policies at all locations
of the Company. Based on the report of internal audit function,
process owners undertake corrective action in their respective areas
and thereby strengthen the controls. Significant audit observations and
recommendations along with corrective actions thereon are presented to
the Audit Committee of the Board.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
The Company's CSR philosophy is based on the belief that a successful
business can be developed only by creating a prosperous society around.
Reaching out to deprived communities is part of the company's vision
and its CSR initiatives aim at supplementing the government endeavors
to help the citizens in the vicinity achieve better living standards,
and good quality of life. The company has been engaging with civil
society, public at large through disseminator/of ks CSR. initiatives.
DIVIDEND:
During the year under review, the Board of Directors has not
recommended any dividend on the equity share capital. The Company walls
to conserve the resources and strengthen the financial base of the
company. So that your directors do not recommended any dividend for the
financial year ended 31Â March, 2015.
SHARE CAPITAL:
The paid up equity capital as on March 31, 2015 was Rs.4, 33 23,000.
During the year under review, the company neither issued shares with
differential voting rights nor granted stock options nor sweat equity.
FINANCE:
Cash and cash equivalents as at March 31, 2015 was 27,89,868/- The
company continues to focus on judicious management of its working
capital, Receivables, inventories and other working capital parameters
were kept under strict check through continuous monitoring.
FIXED DEPOSITS:
Your Company has not accepted any deposits within the meaning of
Section 73 of the Companies Act, 2013 and the Companies (Acceptance of
Deposits) Rules, 2014.
PARTICULARS OF LOANS. GUARANTEES OR INVESTMENTS:
The company has not given any loans or guarantees covered under the
provisions of section 186 of the Companies Act, 2013.
The detail of the investments made by company is given in the notes to
the financial statements.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations. The scope and authority of the
Internal Audit function is defined in the Internal Audit Manual. To
maintain its objectivity and independence, the Internal Audit function
reports to the Chairman of the Audit Committee of the Board & to the
Chairman & Managing Director.
The Internal Audit Department monitors and evaluates the efficacy and
adequacy of internal control system in the Company, its compliance with
operating systems, accounting procedures and policies at all locations
of the Company. Based on the report of internal audit function,
process owners undertake corrective action in their respective areas
and thereby strengthen the controls. Significant audit observations and
recommendations along with corrective actions thereon are presented to
the Audit Committee of the Board.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
The Company's CSR philosophy is based on the belief that a successful
business can be developed only by creating a prosperous society around.
Reaching out to deprived communities is part of the company's vision
and its CSR initiatives aim at supplementing the government endeavors
to help the citizens in the vicinity achieve better living
standards..arjd good quality of life. The company has been engaging
with civil society, public at large through dissemination Of teÂ8H£|
initiatives.
CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION
Information in accordance with the provisions of Section 134 (3) (m) of
the Companies Act, 2013 read with Companies (Accounts) Rules, 2014
regarding Conservation of Energy, Technology Absorption and Foreign
Exchange Earning and outgo is given in the Aiinexure No A. which forms
part of the Board Report.
FOREIGN EXCHANGE EARNINGS AND OUT-GO :
During the period under review there was no foreign exchange earnings
or out flow.
INDUSTRIAL RELATIONS:
During the year under review, your Company enjoyed cordial relationship
with workers and employees at all levels.
DIRECTORS:
Mr. Anuj Rai Bansal has resigned from the Board of Company on
01.10.2014. The Board places on record its gratitude for the services
rendered by Mr. Anuj Rai Bansal during his tenure as Member of the
Board.
As per the Provision of Section 152 of the Companies Act 2013 Sh. Ajay
Kumar Goel, Whole Time Director of the Company is liable to retire by
rotation and being eligible, offers himself for re-appointment at the
ensuing Annual General Meeting. Your Board of Director has recommended
his appointment in their meeting held on 30th May, 2015.
Sh. Sanjeev Kumar Kohli was appointed as an Additional Director on 31st
April, 2015 under section 161 of the Companies Act 2013 who holds
office till the date of the ensuing Annual General Meeting of the
Members of the Company. It has been proposed to appoint him as an
Independent Director not retire by rotation for a consecutive term of
Five years effective from the date of passing of resolution by the
members through postal ballot which has been sent to the members.
The company should have at least one woman Director under Section 149
of the Companies Act, 2013. In light of above view Smt. Neeraj Sharma
was appointed as an Additional Director on 12Ih March, 2015 under
section 161 of the Companies Act 2013 who holds office till the date of
the ensuing Annual General Meeting of the Members of the Company. It
has been proposed to appoint her as an Independent Director not retire
by rotation for a consecutive term of Five years effective from the
date of passing of resolution by the members through postal ballot
which has been sent to the members.
Mr. Shyam Manohar Parashar has been appointed as Chief Financial
Officer ofthe Company on 22nd August, 2014 as per provisions of Section
203 ofthe Companies Act, 2013.
Mr. Sahil Mahajan has been appointed as Company Secretary ofthe Company
on 22nd August, 2014 as per provisions of Section 203 ofthe Companies
Act, 2013
Declaration of Independence by Directors
The company has received the declaration from all the Independent
Directors ofthe Company Mr. Sanjeev Kohli, Mrs. Neeraj Sharma. Mr.
Rajinder Kumar Uppal and Mr. Dinesh Sharma confirming that they meet to
the criteria of Independence prescribed both under sub-section (6) of
Section 149 ofthe Companies Act, 2013 and under Clause 49 of the
Listing Agreement with the Stock Exchanges.
Remuneration Policy
The Board has, on the recommendation ofthe Appointment & Remuneration
Committee framed a policy for SgJK&lSirRs,* appointment of Directors,
Senior Management and their remuneration. The Remuneration Policy
Corporate Governance Report.
Director's Responsibility Statement:
In terms of Section 134 (5) of the Companies Act, 2013, the directors
would like to state that:
i) In the preparation of the annual accounts, the applicable accounting
standards have been followed.
ii) The directors have selected such accounting policies and applied
them consistently and made judgments and estimates that were reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit or
loss of the Company for the year under review.
iii) The directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
iv) The directors have prepared the annual accounts on a going concern
basis.
v) The directors had laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively.
vi) The directors had devised proper system to ensure compliance with
the provisions of all applicable laws and that such system were
adequate and operating effectively.
Related Party Transactions
The company has entered a contract with its related party Pioneer
Industries Limited. Before entering into, the Audit Committee of the
Company has approved such related party transaction to be performed
with Pioneer Industries Limited. The particulars of contracts entered
into by the company with its related party i.e. Pioneer Industries
Limited pursuant to Section 188 of the Companies Act, 2013 is annexed
herewith in Form AOC-2. Annexure No B. which forms a part of the
Report.
Subsidiary Companies
The Company does not have any subsidiary.
Code of Conduct
The Board of Directors has approved a "Code of Conduct which is
applicable to the Members of the Board and all employees in the course
of day to day business operations of the company. The Company believes
in "Zero Tolerance" against bribery, corruption and unethical dealings
behaviours of any form and the Board has laid down the directives to
counter such acts. The code laid down by the Board is known as "code of
business conduct" which forms an Appendix to the Code. The Code has
been posted on the Company's website www.pioneeragro.co.in.
All the Board Members and the Senior Management personnel have
confirmed compliance with the Code. All Management Staff were given
appropriate training in this regard.
Vigil Mechanism / Whistle Blower Policy:
The Company has a vigil mechanism named Fraud and Risk Management
Policy to deal with instance of fraud and mismanagement, if any.
In staying true to our values of Strength, Performance and Passion and
in line with our vision of being one of the most respected companies in
India, the Company is committed to the high standards of Corporate
Governance and stakeholder responsibility.
Prevention of Insider Trading
The Company has adopted a Code of Conduct for Prevention of Insider
Trading with a view to regulate trading in securities by the Directors
and designated employees of the Company. The Code requires
pre-clearance for dealing in the Company's shares and prohibits the
purchase or sale of Company shares by the Directors and the designated
employees while in possession of unpublished price sensitive
information in relation to the Company. The Board is responsible for
implementation of the Code.
All Board Directors and the designated employees have confirmed
compliance with the Code.
Auditor's Report/ Secretarial Audit Report
The observation made in the Auditors' Report read together with
relevant notes thereon are self explanatory and hence, do not call for
any further comments under Section 134 of the Companies Act, 2013.
Auditors
M/s Vasudeva & Co., Chartered Accountants, Statutory Auditor of the
Company holds office until the conclusion of the ensuing Annual General
Meeting and is eligible for re-appointment for the Financial Year
2015-16. The Company has received a written certificate to the effect
that their appointment, if made, would be made within prescribed limits
under Section 14l{3)(g) of the Companies Act 2013 read with Companies
(Audit & Auditors) Rules, 2014 and they are not disqualified for
appointment. The Board and Audit Committee have also recommended
statutory auditor's re- appointment. Members are requested to consider
their re-appointment.
Further M/s Yudhistir & Co., Chartered Accountants has been appointed
as Internal Auditor pursuant to Section 138 of the Companies Act, 2013
for the Financial Year 2015-16 Appointment of Cost Auditor of the
Company
The Board appointed M/s J.Verma & Associates, Cost Accountant, as cost
auditor of the Company for the financial year 2015-16 for Edible Oil
business at a remuneration of Rs. 25000/- plus applicable taxes and out
of pocket expenses subject to the ratification of the said fees by the
members of the Company at the ensuing Annual General Meeting of the
Company pursuant to Section 148 of the Companies Act 2013 read with
Companies (Audit and Auditors) rules, 2014.
Secretarial Audit
Pursuant to provisions of section 204 of the Companies Act, 2013 and
The Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 the company has appointed M/s Anuj Bansal & Associates,
Practicing Company Secretary to conduct the Secretarial Audit for the
financial year 2014-15. The Secretarial Audit report is annexed
herewith as "Annexure C"
Extract of Annual Return:
The details forming part of the extract of the Annual Return in form
MGT-9 is annexed herewith as "Annexure D".
Business Risk Management:
Pursuant to section 134 (3) (n) of the Companies Act, 2013 & Clause 49
of the listing agreement, the company has constituted a business risk
management committee. The details of the committee and its terms of
reference ace set out in the corporate governance report forming part
of the Boards report.
At present the company has not identified any element of risk which may
threaten the existence of th'ei corripaiy.
Meetings
A calendar of Meetings is prepared and circulated in advance to the
Directors. During the year Eight Board Meetings, Five Remuneration
Committee, Four Stakeholders Relationship Committee, One Independent
Director Meeting, and Six Audit Committee Meetings were convened and
held. The details of which are given in the Corporate Governance
Report. The intervening gap between the Meetings was within the period
prescribed under the Companies Act, 2013.
Particulars of Employees
The information required pursuant to Section 197 read with rule 5 of
the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 in respect of employees of the Company, will be provided
upon request. In terms of Section 136 of the Act. the reports and
accounts are being sent to the members and others entitled thereto,
excluding the information oh employees' particulars which is available
for inspection by the members at the Registered office of the company
during business hours on working days of the company up to the date of
ensuing Annual General Meeting. If any member is interested in
inspecting the same, such member may write to the company secretary in
advance.
Corporate Governance and Management Discussion & Analysis Reports
The Corporate Governance and Management Discussion & Analysis Report,
which form an integral part of this Report, are set out as separate
Annexure, together with the Certificate from the auditors of the
Company regarding compliance with the requirements of Corporate
Governance as stipulated in Clause 49 of the Listing Agreement
Segment wise Performance
Your company is engaged in the manufacturing of edible oils and
vanaspati, which as per Accounting Stand and 17 and under provisions of
Companies (Accounting Standard) Rules is considered the only primary
business segment i.e. Edible Oils Segment.
Acknowledgements
Your directors place on record their deep appreciation to employees at
all levels for their hard work, dedication and commitment. The Board
places on record its appreciation for the support and cooperation your
Company has been receiving from its suppliers, stockiest, retailers,
business partners and other associated with the company as its trading
partners. Your company looks upon them as partners in its progress and
has shared with them the rewards of growth.
The Directors also wish to extend their sincerest thanks to the Members
of the Company, Bankers, State Government, Local Bodies, Customers,
Suppliers, Executives, Staff and workers at all levels for their
continuous co-operation and assistance.
For and on behalf of the Board
(Ajay Kumar Goel)
Joint Managing director (Jagat Mohan Aggarwal)
Din No-01105207 Managing Dircetor
Din No-00750120
Place: Pathankot
Dated: 27.05.2015
Mar 31, 2014
The Members,
The Directors have great pleasure in presenting the 22nd Annual Report
on the business and operation of the company together with Audited
Financial Statement of Accounts for the year ended March 31 2014.
FINANCIAL RESULTS
During the current year operations the financial performance of the
Company was as under-
{Rs. in Lacs)
Particulars 2013-14 2012-13
Operating Profit/(Loss) (33.17) 59.02
Interest & Financial charges 67,36 84.61
Net Profit/(Loss) before Depreciation & taxation (100.53) (25.59)
Depreciation 75.78 88.66
Net Profit/(Loss) after Depreciation (176.31) (114.25)
but before taxes
Provision for Taxation (net of (7,11) (9.97)
Current & Deferred Tax)
Net Profit/(Loss) after taxation (169.20) (104.28)
Excess taxation provision written back 0,00 0.00
Income Tax paid 0.00 0.00
Net Profit/(Loss) brought forward from the (8.25) 96.03
previous years
Profit/(Loss) carried to Balance Sheet (177.45) (8.25)
DIVIDEND
In order to conserve the resources and strengthen the financial base of
the company and funds requirement for the smooth working of unit and
further growth, your directors do not recommend any dividend for the
year ended 31st March, 2014.
OPERATIONS AND BUSINESS PERFORMANCE
The sales and other income during the year is Rs 3811.41 lacs as
against Rs. 5869.71 lacs during the previous year. The production of
vanaspati and refined oils aggregated to 5257.653 M.T. as against
7741.183 M.T during the previous year.
Kindly refer to Management Discussion and Analysis covered under
Corporate Governance that forms parts of this Annual Report.
DIRECTORS
Mr. Anil Thapar & Mr. Sameer Aggarwal have resigned from the Board of
Company on 28.10.2013 & 30.11.2013 respectively. The Board places on
record its gratitude for the services rendered by Mr. Anil Thapar & Mr.
Sameer Aggarwal during their tenure as member of the Board.
Mr. Bharat Bhusan Aggarwal, director is liable to retire by rotation
and being eligible have offered himself for reappointment at the
ensuing AGM. Your Board of directors has recommended his appointment in
their meeting held on 30th May, 2014.
Mr Rajinder Kumar Uppal has been appointed Independent Director w.e.f.
30.05.2014 to fill the vacancy arises from the resignation of Mr.
Sameer Aggarwal.
Mr. Dinesn Sharma is proposed to be re-appointed as Independent
Director by Board of Directors w.e.f. 01.10.2014 for Five Years subject
to approval of Shareholders of the Company as per Section 149(10) and
149(11) read with Schedule IV of the Act within 1 year from 1st April,
2014, subject to compliance with the eligibility and other prescribed
conditions.
Mr. N.L Chaddha has been appointed as Chief Executive Officer of the
company w.e.f.07.05.2014
LISTING OF SECURITIES
The Company''s share continues to remain listed with "The Bombay Stock
Exchange, Mumbai".
DIRECTORS RESPONSIBILITY STATEMENT
In terms of section 217 (2AA) of the Companies Act, 1956, the Directors
of the Company state that:
(a) in the preparation of annual accounts the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
(b) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit/loss
of the Company for that period;
(c) the Director have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 and for preventing and detecting
fraud and other irregularities;
(d) that the Directors have prepared the annual accounts on a going
concern basis.
FIXED DEPOSITS
The Company has not accepted any Fixed Deposits from the Public under
section 58A of the Companies Act read together with Companies
(Acceptance of Deposits) Rules, 197§ during the year 2013-14, further,
no amount on account of principal or interest on public deposits was
outstanding as on the date of the Balance sheet
INSURANCE
APPOINTMENT OF STATUTORY AUDITOR/ INTERNAL AUDITOR
M/s Anil Vasudeva & Co., Chartered Accountants, Statutory Auditors of
the company holds office until the conclusion of the ensuing Annual
General Meeting and is eligible for reappointment, The Company has
received a written certificate as per section 141 of Companies Act
2013, read with Companies (Audit & Auditors Rule 2014) to the effect
that their appointment, if made, would be within the prescribed limit.
The Board and Audit committee has also recommended statutory auditor''s
appointment. Members are requested to consider their re-appointment,
M/s. Yudhisthir & Co, Chartered Accountants has been appointed as
Internal Auditor pursuant to section 138 of Companies Act 2013 for the
financial year 2014-15.
AUDITOR''S REPORT.
The observations made in the Auditor''s Report together with the Notes
on Accounts thereon are self explanatory and require no further
clarification from the directors under section 217 (3) of the Companies
Act, 1956.
APPOINTMENT OF COST AUDITORS ''
To comply with the provisions of the Companies Act, 2013, the Board of
Directors has approved to re-appoint M/s J. Verma & Associates, Cost
Accountants, Jalandhar as Cost Auditors of the Company for the
Financial Year 2014-15 subject to Central Government Approval &
Shareholder approval.
Further, due date of filing the Cost Audit Report in respect of Animal
or Vegetable Fats and Oils activities of the Company for the financial
year 2012-13 was 30th September 2013, and the same was filed with the
Ministry of Corporate Affairs, Govt, of India on 3rd September, 2013. .
Cost Audit Report for the Financial Year 2013-14 will be submitted by
the Company/Cost- Auditors in due course.
CORPORATE SOCIAL RESPONSIBILITY: COMPANY''S PHILOSOPHY:
The Company''s CSR philosophy is based on the belief that a successful
business can be developed only by creating a prosperous society around.
Reaching out to deprived communities is part of the Company''s vision
and its CSR initiatives aim at supplementing the government endeavors
to help the citizens in the vicinity achieve better living standards
and good quality of life. The Company has been engaging with civil
society, public at large through dissemination of its CSR initiatives.
HUMAN RESOURCES:
The Company recognizes the need to have optimum level of human resource
and orientation towards team efforts for sustained growth and perform
-ance. Your company believes that people constitutes the strength of
the organization and has established systems that reduces hierarchy and
fosters performance, transparency, fairness and empowerment at all
levels.
Your company continues to maintain excellent industrial relations with
all its employees and independent job work firms. Adequate safety and
welfare measures are in place and your company will continue to improve
the same on ongoing basis.
PARTICULARS OF EMPLOYEES
None of the employees of the Company was in receipt of remuneration
which requires disclosures under section 217 (2A) of the Companies Act,
1956 and the rules made therein as amended from time to time. Further,
since there was no such remuneration received the company had nothing
to disclose under the requirements of provisions section 219 (1) (b) of
the said Act.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
AND OUTGO
Information in accordance with the provisions of Section 217 (1) (e) of
the Companies Act, 1956 read with Companies (Disclosures of Particulars
in the Report of the Board) Rules, 1988 regarding Conversation of
Energy, Technology Absorption and Foreign Exchange Earnings and Outgo,
wherever applicable, is given in the Annexure ''A'' which forms a part of
this Report.
HUMAN RESOURCES
Your Company''s Human Resource agenda for the year was focused on
strengthening four key areas: building a robust and diverse talent
pipeline, enhancing individual and organisational capabilities for
future readiness, driving greater employee engagement and strengthening
employee relations further through progressive people practices at the
shopfloor. Your Company has been investing in progressive employee
relations practices to ensure that it invests in capability at the
grass root level.
REPORT ON CORPORATE GOVERNANCE
It has always been the Company''s endeavor to excel through better
Corporate Governance and fair and transparent practices. The Company
complies with the clause 49 of the Listing Agreement.
The Board of Directors of the Company had also evolved and adopted a
Code of Conduct based on the principles of Good Corporate Governance
and best management practices being followed globally.
Pursuant to Clause 49 of the Listing Agreement with the Stock
Exchanges, the following form part of this Annual Report:
(a) Compliance certificate from Chairman and Managing Director and
General Manager (Finance) is given as Annexure ''B'' to the Directors''
Report.
(b) Corporate Governance Report along with Auditors certificate
regarding compliance of Corporate Governance is attached as Annexure C.
(c) Management''s Discussion and Analysis Report for the year under
review, as stipulated under Clause 49 of the Listing Agreement with the
Stock Exchanges in India, is presented in a separate section forming
part of the Annual Report.
SEGMENT WISE PERFORMANCE ,
Your Company is engaged in the manufacturing of edible oils and
vanaspati, which, as per Accounting Standard 17 and under provisions of
Companies (Accounting Standard) Rules 2006 is considered the only
primary business segment i.e. Edible Oils Segment.
ACKNOWLEDGEMENT
Your Directors place on record their deep appreciation to employees at
all levels for their hard work, dedication and commitment.
The Board places on record its appreciation for the support and
co-operation your Company has been receiving from its suppliers,
stockists, retailers, business partners and others associated with the
Company as its trading partners. Your Company looks upon them as
partners in its progress and has shared with them the rewards of
growth. It will be the Company''s endeavour to build and nurture strong
links with the trade based on mutuality of benefits, respect for and
co- operation with each other, consistent with consumer interests.
The Directors also take this opportunity to thank all Investors,
Clients, Vendors, Banks, Government and Regulatory Authorities and
Stock Exchanges, for their continued support.
For and on behalf of the Board
(Jagat Mtdran Aggarwal) (Ajay JSumar Goel)
Managing Director Joint Managing Director
DIN: 00750120 DIN: 01105207
Address:"Vasu Vatika",Shant Vihar, Address: Opposite DAV Centenary
Garden Colony Extension, Mission Senior Sec.School, Mission Road,
Road, Pathankot-145001 Pathankot-145001
Place: Pathankot
Dated : 30.05.2014
Mar 31, 2013
To, The Members,
The Directors have great pleasure in presenting the 21st Annual Report
on the business and operation of the company together with Audited
Financial Statement of Accounts for the year ended March 31, 2013.
FINANCIAL RESULTS
During the current year operations the financial performance of the
Company was as under -
(Rs. in Lacs)
Particulars 2012-13 2011-2012
Operating Profit/(Loss) 59.02 273.32
Interest & Financial charges 84.61 124.90
Net Profit/(Loss) before Depreciation & taxation (25.59) 148.42
Depreciation 88.66 65.49
Net Profit/(Loss) after Depreciation but before
taxes (114.25) 82.93
Provision for Taxation (net of Current &
Deferred Tax) (9.97) 15.30
Net Profit/(Loss) after taxation (104.28) 67.63
Excess taxation provision written back 0.00 0.00
Income Tax paid 0.00 0.00
Net Profit/(Loss) brought forward from the
previous years 96.03 28.40
Profit/(Loss) carried to Balance Sheet (8.25) 96.03
DIVIDEND
In order to conserve the resources and strengthen the financial base of
the company and funds requirement for the smooth working of unit and
further growth, your directors do not recommend any dividend for the
year ended 31st March, 2013.
OPERATIONS AND BUSINESS PERFORMANCE
The sales and other income during the year is Rs.5869.71 lacs as
against Rs. 12101.69 lacs during the previous year. The production of
vanaspati and refined oils aggregated to 7741.183 M.T. as against
18040.279 M.T. during the previous year.
Kindly refer to Management Discussion and Analysis covered under
Corporate Governance that form parts of this Annual Report.
DIRECTORS
Mr. Vipan Aggarwal has resigned from the Board of Company on
30.05.2013. The Board places on record its gratitude for the services
rendered by Mr. Vipan Aggarwal during his tenure as member of the
Board.
Mr. Dinesh Sharma and Mr. Sameer Aggarwal are the directors liable to
retire by rotation and being eligible have offered themselves for
reappointment at the ensuing AGM. Your Board of directors have
recommended his appointment in their meeting held on 30th May, 2013.
LISTING OF SECURITIES
The Company''s share continues to remain listed with "The Bombay Stock
Exchange, Mumbai".
DIRECTORS RESPONSIBILITY STATEMENT
In terms of section 217 (2AA) of the Companies Act, 1956, the Directors
of the Company state that:
(a) in the preparation of annual accounts the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
(b) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit/loss
of the Company for that period;
(c) the Director have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 and for preventing and detecting
fraud and other irregularities;
(d) that the Directors have prepared the annual accounts on a going
concern basis.
FIXED DEPOSITS
The Company has not accepted any Fixed Deposits from the Public under
section 58A of the Companies Act read together with Companies
(Acceptance of Deposits) Rules, 1975 during the year 2012-13, further,
no amount on account of principal or interest on public deposits was
outstanding as on the date of the Balance sheet.
INSURANCE
The assets of the Company are adequately insured against the loss of
fire, riot, earthquake, flood and other risks which are considered
necessary by the Management.
APPOINTMENT OF STATUTORY AUDITORS
M/s Anil Vasudeva & Co., Chartered Accountants, Statutory Auditors of
the company hold office until the conclusion of the ensuing Annual
General Meeting and are eligible for reappointment. The Company has
received a letter from them to the effect that their appointment, if
made, would be within the prescribed limit under Section 224(1 B) of
the Companies Act, 1956. The Board and Audit committee has also
recommended statutory auditor''s appointment. Members are requested to
consider their re-appointment.
AUDITOR''S REPORT.
The observations made in the Auditor''s Report together with the Notes
on Accounts thereon are self explanatory and require no further
clarification from the directors under section 217 (3) of the Companies
Act, 1956.
APOINTMENT OF COST AUDITORS
To comply with the provisions of Section 233B of the Companies Act,
1956, the Board of Directors has approved to re-appoint M/s J. Verma &
Associates, Cost Accountants, Jalandhar as Cost Auditors of the Company
for the financial year 2013-14 subject to Central Government Approval.
Further, due date of filing the Cost Audit Report in respect of Animal
or Vegetable Fats and Oils activities of the Company for the financial
year 2011-12 was 28th February 2013, and the same was filed with the
Ministry of Corporate Affairs, Govt, of India on 30th Dec 2012.
Cost Audit Report for the Financial Year 2012-13 will be submitted by
the Company/Cost- Auditors in due course.
CORPORATE SOCIAL RESPONSIBILITY: COMPANY''S PHILOSOPHY:
The Company''s CSR philosophy is based on the belief that a successful
business can developed only by creating a prosperous society around.
Reaching out deprived communities is part of the Company''s vision and
its CSR initiatives aim at supplementing the government endeavors to
help the citizens in the vicinity achieve better living standards and
good quality of life. The Company has been engaging with civil society,
public at large through dissemination of its CSR initiatives.
RESPECT FOR HUMAN RESOURCES:
The Company recognizes the need to have optimum level of human resource
and orientation towards team efforts for sustained growth and
performance. Your company believes that people constitutes the strength
of the organization and has established systems that reduces hierarchy
and fosters performance, transparency, fairness and empowerment at all
levels.
Your company continues to maintain excellent industrial relations with
all its employees and independent job work firms. Adequate safety and
welfare measures are in place and your company will continue to improve
the same on ongoing basis.
RESPECT FOR ENVIRONMENT:
The Company has long believed that it has a moral responsibility to
ensure environment friendly practices even if there are no external
regulations and controls. The Company has been taking up initiatives
towards promoting green cover, ever since our inception, both within
the factory premises and helping others to do this. In addressing
issues of environmental care and climate change the Company has taken a
holistic perspective. It covers a spectrum of activities, enhancing
green belts, discharge elimination, leakage elimination, air emission
reduction, adoption of clean processes, energy conservation,
optimization of fuels and oils, recycling, recovery and reuse, process
waste reduction, and resource conservation. These efforts have led to
significant saving in natural resources particularly water and energy.
By treating the outflows, water is being reused for the plant processes
themselves or for irrigation purposes. Through continuous efforts, the
Company has been able to bring down its energy use.
RESPECT FOR HUMAN RIGHTS:
All care and precautions are taken to avoid any cases of complicity
with human rights abuses in workplaces and operational areas.
PARTICULARS OF EMPLOYEES
None of the employees of the Company was in receipt of remuneration
which requires disclosures under section 217 (2A) of the Companies Act,
1956 and the rules made therein as amended from time to time. Further,
since there was no such remuneration received the company had nothing
to disclose under the requirements of provisions section 219 (1) (b) of
the said Act.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
AND OUTGO
Information in accordance with the provisions of Section 217 (1) (e) of
the Companies Act, 1956 read with Companies (Disclosures of Particulars
in the Report of the Board) Rules, 1988 regarding Conversation of
Energy, Technology Absorption and Foreign Exchange Earnings and Outgo,
wherever applicable, is given in the Annexure ''A'' which forms a part of
this Report.
EMPLOYEE RELATIONS
Industrial relations during the year under review were cordial and
peaceful. The management wishes to place on record, the excellent
cooperation and contribution made by the employees, collectively called
"PIONEER FAMILY", at all levels of the organisation to the continued
growth of the company. There was constant focus on all round
organizational development. Various training programs including
visionary exercises were conducted for personal as well as professional
development of the employees.
REPORT ON CORPORATE GOVERNANCE
it has always been the Company''s endeavor to excel through better
Corporate Governance and fair and transparent practices. The Company
complies with the clause 49 of the Listing Agreement.
The Board of Directors of the Company had also evolved and adopted a
Code of Conduct based on the principles of Good Corporate Governance
and best management practices being followed globally.
Pursuant to Clause 49 of the Listing Agreement with the Stock
Exchanges, the following form part of this Annual Report:
(a) Compliance certificate from Managing Director and General Manager
(Finance) is given as Annexure ''B'' to the Directors'' Report.
(b) Corporate Governance Report along with Auditors certificate
regarding compliance of Corporate Governance is attached as Annexure C.
(c) Management Discussion and Analysis
SEGMENT WISE PERFORMANCE
Your Company is engaged in the manufacturing of edible oils and
vanaspati, which, as per Accounting Standard 17 and under provisions of
Companies (Accounting Standard) Rules 2006 is considered the only
primary business segment i.e. Edible Oils Segment.
ACKNOWLEDGEMENT
Yours Directors express their deep and sincere appreciation for the
continued cooperation and valuable support extended to the company by
the Government Authorities, Company''s Bankers, Financial Institutions,
vendors, Customers and shareholders during the year under review and
look forward to receive greater measure of the same. Your Directors
also express and convey their warm appreciation to all employees for
their diligence and contribution to the Growth of the Company.
Your support as shareholders is greatly valued.
For and on behalf of the Board
Dated : 30.05.2013 (JAGAT MOHAN AGGARWAL) (AJAY GOEL)
Place : Pathankot Managing Director Joint Managing Director
Mar 31, 2010
LISTING OF SECURITIES
Shares of the Company are listed on "The Stock Exchange, Mumbai".
DIRECTORS RESPONSIBILITY STATEMENT
In terms of section 217 (2AA) of the Companies Act, 1956, the Directors
of the Company state that:
(a) In the preparation of annual accounts the applicable accounting
standards have been followed along with proper explanation relating to
material departures,
(b) The Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit/loss
of the Company for that period;
(c) The Director have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 and for preventing and detecting
fraud and other irregularities;
(d) That the Directors have prepared the annual accounts on a going
concern basis.
FIXED DEPOSITS
The Company has not accepted Fixed Deposits from the Public under
section 58A of the Companies Act read together with Companies
(Acceptance of Deposits) Rules, 1975 during the year under review.
INSURANCE OF FIXED ASSETS
The Fixed Assets of the Company are adequately insured.
AUDITORS
M/s. AnrJ Vasudeva & Co., Auditors of the Company, hold office until
the conclusion of the ensuing Annual General Meeting and are eligible
for reappointment. The Company has received a letter from them to the
effect that their appointment, if made would be within the prescribed
limit under Section 224(1 B) of the Companies Act, 1956. Members are
requested to consider their reappointment.
AUDITORS REPORT.
The observations made in the Auditors Report together with the Notes
on Accounts thereon are self explanatory and require no further
clarification from the directors under section 217 (3) of the Companies
Act, 1956. Due to wide fluctuation in the prices of Edible oil, as it
is quite difficult for the management to predict the profitability of
the company so, no provision for deferred tax has been provided.
COST AUDITORS
M/s J. Verma & Associates, Cost Accountants, Jalandhar have been
appointed as Statutory Cost Auditors of the Company for the financial
year 2010-2011 for which approval from the Central Government, Cost
Audit Branch, New Delhi has already been received.
PARTICULARS OF EMPLOYEES
There has been no employee who was getting the remuneration in excess
of the prescribed limits under section 217(2A)of the Companies Act,
1956. Therefore, the information as required under section 217 (2A) of
the Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975 has not been furnished.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO.
Information in accordance with the provisions of Section 217 (1) (e) of
the Companies Act, 1956 read with Companies (Disclosures of Particulars
in the Report of the Board) Rules, 1988 regarding Conservation of
Energy, Technology Absorption and Foreign Exchange Earnings and Outgo,
wherever applicable, is given in the Annexure A which forms a part of
this Report.
EMPLOYEE RELATIONS
The relations with the staff members and the workforce continued to be
cordial and satisfactory during the year under review. Your Directors
are pleased to acknowledge their sincerity and dedication for the
development of the Company.
COMPLIANCE CERTIFICATE
Pursuant to the provisions of section 383A (provision) of the Companies
Act, 1956 read with Company (Compliance Certificate) Rules, 2001, the
company has obtained the Compliance Certificate from the Practicing
Company Secretary and the copy of the same is attached herewith. Since
the Compliance Certificate is self explanatory, so no further comments
are required.
CORPORATE GOVERNANCE
A report on the Corporate Governance along with Auditors Certificate
is attached to the report.
SEGMENT WISE PERFORMANCE
Your Company is engaged in the manufacturing of edible oils and
vanaspati, which, in context of Accounting Standard 17 as per
provisions of Companies (Accounting Standard) Rules 2006 and is
considered the only business segment i.e. Edible Oils Segment.
ACKNOWLEDGEMENT
Yours Directors would like to express their grateful appreciation for
the support, guidance and co-operation extended to the Company by
various agencies of the Central Government, State Government, Financial
Institutions, Banks, creditors, customers, distributors and suppliers.
Your Directors also wish to place on record their appreciation for the
sincere and dedicated services of the executives, staff and workers of
the Company at all levels.
Your support as shareholders is greatly valued.
For and on behalf of the Board
Place : Pathankot JAGAT MOHAN AGGARWAL
Dated: 30.05.2010 Chairman-Cum-Managing Director
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