Mar 31, 2018
1. CORPORATE INFORMATION
Texmo Pipes and Products Limited (âthe Companyâ) was formed as a Partnership Firm by the name M/s Shree Mohit Industries on 13th May 1999 and was subsequently converted and incorporated as a Public limited Company in July 2008 with the Registrar of Companies, Madhya Pradesh and Chhattisgarh. The Partnership Firm was converted into Company under Part IX of the Companies Act, 1956 under the name of Texmo Pipes and Products Limited having Certificate of Incorporation dated 3rd July 2008.
2.1 BASIS OF PREPARATION AND PRESENTATION
The standalone financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value:
- Certain financial assets and liabilities (including derivative instruments) and
- Defined benefit plans - plan assets
The financial statements of the Company have been prepared to comply with the Indian Accounting standards (''Ind AS''), including the rules notified under the relevant provisions of the Companies Act, 2013.
Upto the year ended March 31, 2017, the Company has prepared its financial statements in accordance with the requirement of Indian Generally Accepted Accounting Principles (GAAP), which include Standards notified under the Companies (Accounting Standards) Rules, 2006 and considered as âPrevious GAAPâ.
These financial statements are the Company''s first Ind AS standalone financial statements.
Company''s financial statements are presented in Indian Rupees (INR), which is also its functional currency.
1. The company has availed the deemed cost exemption in relation to the property, plant and equipment except in case of Land, that is valued at its fair value, on the date of transition i.e. April 1,2016 and hence the net carrying amount has been considered as the gross carrying amount on that date.
2. Freehold Land has been revalued at Rs.6447.13 Lakhs as per requirement of lND AS. Previous value as per GAAP was Rs.198.70Lakhs.
3. Entire movable and immovable Property, Plants and Equipment are mortgaged in favour of secured lenders against the sanction limits. (Note 18)
4. All intangible assets are other than internally generated.
5. In respect of Intangible as sets; a) Useful life is as follows
(i) In respect of Computer Software average useful life 4 - 5 years.
Notes: # The Company retired from the LLP w.e.f. January 10, 2018
*Aggregate amount of diminution in value of investments is Rs.3194 Lakhs as at March 31, 2018, as at March 31, 2017 and as at April 1, 2016.
Note : Refer note 42 for detailed disclosure on the fair values.
Includes portion of compound financial instrument and fair valuation of loan of Rs.594.64 Lakhs as at March 31, 2018, Rs.596.63 Lakhs as at March 31, 2017 and Rs.597.55 Lakhs as at April 1, 2016
Note: The cost of inventories recognized as an expense during the year is disclosed in Note 28, 29 and 30.
Borrowings are secured by first paripassu charge on stock (including raw material, finished goods and work in progress) and book debts. (Note 17)
Terms / Rights to Shareholders
(1) Equity Shares
(A) Voting
(i) The Company has one class of equity shares having a per value of f 10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Notes:
Nature and Purpose of reserve
Securities premium Account - The amount received in excess of face value of the equity shares is recognized in Securities Premium Account. This reserve is available for utilization in accordance with the provisions of the Companies Act, 2013.
Revaluation Reserve - The company has created revaluation reserve out of revaluation of land carried out during the year 2016-17.
Retained Earnings - Retained Earnings are the profits/losses that the Company has earned till date
* Current Items include amount payable in the next 12 months Notes :
(i) Amount stated in Current maturity is disclosed under the head of âOther Financial Liabilities (Current)â (Note 22).
(ii) Refer Note 42 for information about liquidity risk.
(iii) Term Loans are Secured by way of first charge, in respect of Fixed assets, both present and future, and second charge on entire current assets of the Company both present and future. (Note 3,10,11)
3. Nature of Security and terms of repayment for Long Term Secured Borrowings HDFC Bank Term Loan of Rs.83.71 Lakhs (Previous Year: Rs.92.54Lakhs) secured by Mumbai office of the Company.
Repayable in 120 equal monthly installments starting from May 2014 . Last installment due in April 2024. Rate of interest 12% p.a. as at year end.(Previous Year 12%).
Bank of Baroda Term Loan for Plant & Machinery of Rs.66.62 Lakhs (Previous Year: Rs.180.14 Lakhs), repayable within 66 months including initial moratorium period of 6 months, repayable by October 2019, secured on pari pasu charge on plant & Machinery and Personal Guarantees of Mr. Sanjay Kumar Agrawal, Mrs. Rashmidevi Agrawal, Shree Padmavati Irrigation LLP, Balaji Industries and Venkatesh Industries.
Repayable in 60 equal monthly installments starting from November 2013. Last installment due in November 2018. Rate of interest 12.08% p.a. as at year end.(Previous Year 13.50%).
Vehicle Loans of Rs.231.57 Lakhs (Previous Year: Rs.261.29 Lakhs). The Loans are secured by way of hypothecation of respective motor vehicle purchased. Repayable in 36 to 60 equal monthly instalments. Rate of interest in range of 9.44% to 9.81% p.a. (Previous year 9.81% to 14% p.a.).
Secured Loan From Others include Loan from Religare Fin Vest Limited of Rs.64.81 Lakhs (Previous Year: Rs.71.75 Lakhs), secured by Equitable Mortgage of Indore Office. Repayable in 120 equal monthly instalments starting from May 2014. Last instalment due in April 2024.. Rate of interest is 13.50% p.a. at the year end. (Previous year 13.50% p.a.).
Secured Loan From Others include Loan from Reliance Capital Limited of Rs.40.19 Lakhs (Previous Year: f 60.71Lakhs), secured by Hypothecation of Plant & Machinery , disbursed in November 2015 of Rs.83.00 Lakhs repayable by January 2016.
Repayable in 48 equal monthly installments starting from January 2016. Last installment due in December 2019. Rate of interest is 12% p.a. at the year end. (Previous year 15% p.a.).
Central Bank of India Term Loan for plant & Machinery is Rs.317.83 Lakhs (Previous Year: Rs.385.43 Lakhs), secured by Pari Pasu charge on Plant & Machinery with SBI situated at Factory Premises Present & Future and Personal Guarantees of Directors Mr. Sanjay Kumar Agrawal, Mrs. Rashmidevi Agrawal, M/s Balaji Industries, M/s Shree Padmavati irrigations LLP and Shree Venkatesh Industries.
Repayable in 84 equal monthly installments starting from October 2016. Last installment due in September 2023.. Rate of interest is 12.65% p.a. at the year end. (Previous year 13.95% p.a.)
Punjab National Bank Term Loan for Plant & Machinery of Rs.703.85 Lakhs (Previous Year: Rs.Nil), repayable within 84 months including initial moratorium period of 5 months, repayable by March 2025, secured on pari pasu charge on plant & Machinery and Guarantees of Mr. Sanjay Kumar Agrawal, Mrs. Rashmidevi Agrawal, Shree Padmavati Irrigation LLP, Balaji Industries and Venkatesh Industries.
Repayable in 84 equal monthly installments starting from April 2018. Last installment due in March 2025. Rate of interest 10.55% p.a. as at year end.
Terms of loans from Related Parties
i) Loans & Advances from Related parties Include Loan from Managing Director Mr. Sanjay KumarAgrawal of Rs.3.49 Lakhs (Previous Year - Rs.46.25 Lakhs) , Director Mrs. Rashmi Devi Agrawal - Rs.11.00 Lakhs (Previous Year - Rs.57.50Lakhs) & Shree Padmavati Irrigations LLP, Indore- Rs.19.00 Lakhs (Previous Year - Rs.325.25Lakhs). The Loans taken from Related Parties are Interest free.
a. Working Capital Loans are from Consortium of Banks State Bank of India, Bank of Baroda , Punjab National Bank and Central Bank of India led by State Bank of India where in, SBI Cash Credit Loan of Rs.2735.37 Lakhs (Previous Year: Rs.3221.31 Lakhs), Bank Of Baroda Cash Credit Loan of Rs.681.49 Lakhs (Previous Year: Rs.3221.31 Lakhs), Punjab National Bank cash Credit Loan of f345.91 Lakhs (Previous Year: f392.50 Lakhs) and Central Bank of India Cash Credit Loan of Rs.188.52 Lakhs (Previous Year: Rs.197.81 Lakhs) secured by first Pari pasu charge (between consortium members) on whole of companies present & future stocks of Raw Material, Finished Goods, Stock in Process, Stores & Spares and other Raw Material, and the company''s present and future book debts, outstanding monies, receivable, claims, bills, Contracts, engagements, securities, investments, rights and assets of the company. The working capital facilities as above are further secured by way of equitable mortgage of Immovable Properties of the company and promoters, Related Entities and Personal Guarantees of Mr. Sanjay Kumar Agrawal, Mrs. Rashmidevi Agrawal, Shree Padmavati Irrigations LLP, Shree Balaji Industries and Shree Venkatesh Industries.
b. Working Capital Loans from others includes Raw Material NSIC assistance of Rs.198.97 Lakhs (Previous Year: Rs.351.43 Lakhs) and is secured by bank guarantees.
4.1 Information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditor.
4.2 Refer Note 42 for information about credit risk, market risk and liquidity risk of Trade payables.
- It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.
- The Company does not expect any reimbursements in respect of the above contingent liabilities.
- Future cash outflows in respect of the above matters are determined only on receipt of judgments / decisions pending at various forums / authorities.
The Company''s pending litigations comprise of claims against the Company pertaining to proceedings pending with Excise, Income Tax, Sales/ VAT tax and other authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial statements
1. The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflations, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.
2. The expected contribution for Defined Benefit Plan for the next financial year will be in line with FY 2017-18.
3. The company makes provident fund (PF) contributions to defined contribution benefit plans for eligible employees. Under the scheme the company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions specified under the law are paid to the government authorities (PF commissioner).
4. Amount towards Defined Contribution Plan have been recognized under âContribution to Provident and Other fundsâ in Note 28 Rs.120.52 Lakhs (Previous Year: Rs.102.40 Lakhs).
5. Defined Benefit Plan:
The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognized in the financial statements are as under:
General Description of the Plan:
The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.
The defined benefit plans typically expose the company to various risk such as;
- Investment risk:
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end ofthe reporting period on government bonds. If the return on plan asset is below this rate, it will create plan deficit.
- Interest risk:
A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the plan assets.
- Longevity risk:
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.
- Salary risk:
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary ofthe plan participants will increase the plan''s liability.
The amount outstanding are unsecured and will be settled in cash. No expense has been recognized in the current or prior years for bad or doubtful debts in respect of amounts owned by related parties.
* Balance outstanding at the end of the year/previous years are stated without considering impact of fair valuation carried out as per Ind AS. a) Part of the Unsecured Loan from Related Parties classified as Equity Component in the Statement of Changes in Equity is:
5. Preferential allotment :
The Company has, on a preferential basis, issued Rs.12,00,000 (Twelve Lakhs) equity shares of f 10 each, fully paid up at a price of f 22 per share aggregating to Rs.264.00 Lakhs to Shree Padmavati Irrigation LLP, a promoter group company on October 06, 2017, in accordance with the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.
6. During the year the Management has revised the estimated useful life of Dies & Moulds from 8 years to 12 years.
Accordingly, the Depreciation charge for FY 2017-18 is lower by Rs.172.67 lakhs.
7. FINANCIAL INSTRUMENTS
All financial instruments are initially recognized and subsequently re-measured at fair value as described below:
(a) The fair value of Forward Foreign Exchange contracts and is determined using forward exchange rates at the balance sheet date.
(b) All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.
Fair Value measurement hierarchy:
Interest Rate Risk
Interest rate risk is the risk that the future cash flow with respect to interest payments on borrowing will fluctuate because of change in market interest rates. The company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligation with floating interest rates.
Interest Rate Sensitivity
Te following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:
Commodity Price Risk
Commodity price risk arises due to fluctuation in prices of raw material. The company has a risk management frame work aimed at prudently managing the risk arising from the volatility in raw material prices and freight costs. The company''s commodity risk is managed centrally through well-established trading operations and control processes. In accordance with the risk management policy, the Company carefully caliberates the timing and the quantity of purchase Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises mainly from the outstanding receivables from customers. The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. The credit ratings/market standing of the customers are evaluated on a regular basis.
Liquidity Risk
Liquidity risk arises from the Company''s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities . The Company maintains adequate cash and cash equivalents alongwith the need based credit limits to meet the liquidity needs.
Hedge Accounting
The Company avails Foreign Currency Demand Loans from bank time to time to reduce the interest cost. The Company takes forward cover to hedge against the foreign currency risks. The amount of foreign currency risks and forward cover are as under :
Operating Leases
(a) There were no non-cancellable operating lease. (b) The Company pays rent for office premises at Indore and Mumbai. The lease period is for 11 months with option to renew. The payments for office premises at Indore are to related parties. None of the lease agreements have any restrictions concerning dividend, additional debt and further leases.
Reconciliation Notes explaining Reclassification Adjustments
1 .Investment Property classified as Non current Investments under the previous GAAP has been reclassified to Investment Property under Ind AS.
2. Loans and Advances in the nature of financial assets have been reclassified as Financial Assets- Loans. Under the previous GAAP, such loans were classified as Other Non- Current assets.
3. Other Current Assets, under the previous GAAP includes Loans and Advances which have been classified as Financial Assets- Other Financial assets under the Ind AS.
4. Other Current Liabilities under the previous GAAP includes Current Maturities of Long Term Debts and Interest accrued but not due on borrowings which have been classified as Other Financial Liabilities under the Ind AS.
5. Provision for Tax was classified as Other Non Current Liabilities under the previous GAAP. Under the Ind AS, it has been reclassified to Current Tax Liabilities shown as net of Advance Tax and TDS.
Reconciliation Notes explaining Ind AS Adjustments
1. The company has exercised the option of carrying the Freehold Land, Investment property and Land Held for Sale at its fair value on the date of transition. This has resulted in increase in Property, Plant and Equipment by Rs.6,248.43 Lakhs, Investment Property by Rs.21.52 Lakhs and Other Current Assets by Rs.177.66 Lakhs and there is corresponding impact on Revaluation Reserve by Rs.6,447.61 Lakhs.
2. The company has exercised the option of carrying the Investments in its subsidiaries at its fair value on the date of transition. Consequently, there is decrease in Non Current Investments by Rs.3,194 Lakhs on that date.
3. As per Ind AS 109 "Financial Instruments", Interest free loans to subsidiary has been carried at amortized cost. Accordingly, Financial Assets- Loans have decreased and Other current assets have increased by Rs.22.99 Lakhs and Rs.24.83 Lakhs as on 01.04.2016 and 31.03.2017 respectively.
4. The transaction costs paid for the term loans borrowed have been amortized over the period of the loans, as the loans are required to be carried at amortized cost as per IndAS 109 "Financial Instruments". Consequently, the Borrowings have reduced by Rs.9.51 Lakhs and Rs.8.47 Lakhs as at 1st April 2016 and 31st March 2017 respectively.
5. Under the Ind AS, the Deferred Tax is calculated on the basis of the Balance Sheet approach and not the Income approach. Consequently, the Deferred Tax Liabilities (Net) have been increased by Rs.23.70 Lakhs and Rs.19.88 Lakhs as at 1st April 2016 and 31st March 2017 respectively.
6. The company has borrowed interest free unsecured loans from promoters/directors. Such loans have been classified as compound financial instruments and split into debt and equity in accordance with Ind AS 32 "Financial Instruments : Presentation". Accordingly, Borrowings have decreased and Other Equity increased.
8. Effect of Ind AS Adoption on the Statement of Profit and Loss for the year ended March 31, 2017
1. Under the Ind AS, the actuarial gains and losses are classified as part of the Other Comprehensive Income under the head Items that are not reclassified to Profit and Loss. There is no impact on the Total Comprehensive Income.
2. The company has borrowed interest free unsecured loans from promoters/directors. Such loans have been classified as compound financial instruments and bifurcated as debt and equity in accordance with Ind AS 32 "Financial Instruments : Presentation". The interest on debt component have been recognized in accordance with Ind AS 109 "Financial Instruments". Accordingly, there is an increase in Finance Cost.
3. The transaction costs paid for the term loan borrowed have been amortized over the period of the loans, as the loans are required to be carried at amortized cost as per IndAS 109 "Financial Instruments". Consequently, there is an impact on Finance Cost.
4. Under the Ind AS, significant components of plant and equipment which have different useful life are depreciated based on their specific useful lives. Consequently, the amount of Depreciation charged for the year ended 31st March 2017 has increased by Rs.50.31 Lakhs.
5. Under the Ind AS, the Deferred Tax is calculated on the basis of the Balance Sheet approach and not the Income Approach. As a result the net Deferred Tax for the FY 2016-17 is lower by Rs.3.82 Lakhs as against Deferred Tax recognized under previous GAAP.
9. Reconciliation of total comprehensive income for the year ended March 31, 2017 44.
APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved for issue by the board of directors on May 29, 2018.
10. Trade Receivables/Payables are confirmed by the Management. No independent balance confirmation has been received from Customers/Suppliers. The above figures are subject to reconciliation and consequent adjustment, if any.
11. The company has established Unit No. 2 and is eligible for incentive under Madhya Pradesh Industrial Investment Promotion Assistance Scheme-2004, Wherein 50% of VAT and CST paid shall be refunded till 30th June,2017. During the year ended 31st March 2018, incentive as mentioned are booked in Other Operating Income of Rs.9.49 Lakhs (P. Y Rs.28.75 Lakhs).
12. Segment Reporting : The company is primarily engaged in business of plastic products which constitutes a single reportable segment in accordance with IND AS 108 ''Operating Segmentsâ
13. Insurance Claim Receivable
During the year 2010-11 on 21.03.2011 a fire occurred in main raw material godown at the factory premises of the Company. The Company has lodged a claim of Rs.25.47 Crores with the Oriental Insurance Company Limited and the same was accounted as ''Insurance Claim Receivable''. The claim is finally settled by the Insurance Company for Rs.1640.86 Lakhs on 12.04.2012. The Management has filed a lawsuit against the Insurance Company as the claim is fully recoverable. The Management is confident of realizing the amount due from the Insurance Company and according no adjustments are made to the financial results of the company in this regard.
Mar 31, 2016
Contingent assets are neither recognized nor disclosed in the financial statements.
1-Rights, Preferences and restrictions attached to Equity Shares
The Company has only one class of equity shares having a par value of ? 10/-per share-Each shareholder is -eligible for one vote per share-In the event of liquidation, the equity shareholders are eligible to receive the -remaining assets of the company, after distribution of all preferential amounts, in proportion of their share -holding.
2-During previous year Company has adopted estimated useful life of Fixed Assets as stipulated by Schedule II of the companies Act 2013-Accordingly, Adjustments to Fixed Assets of Rs-5.22 Lakhs (net of Deferred Tax of Rs-2.50 Lakhs) on Account of Assets whose useful Life is already exhausted on April 01,2014 has been adjusted against General Reserve.
3. Nature of Security and terms of repayment for Long Term Secured Borrowings : Terms of Repayment for loan Related Parties
4.-Loans & Advances from Related parties Include Loan from The loan is Interest free and repayable after three Managing Director Mr-Sanjay Agrawal of Rs-280.00 Lakhs (Previous years.
5. Year - Rs-55.00 Lakhs) , Chairperson Mrs-Rashmi Devi Agrawal Rs-55.00 Lakhs (Previous Year - Rs-25.00 Lakhs) & Shree Padmavati Irrigations Pvt-Ltd., Indore- Rs-50.00 Lakhs (Previous Year - Nil)
6.: Installments falling due within a year in respect of all the above loans aggregating Rs-215.09 Lakhs (Previous Year Rs-203.19) Lakhs have been grouped under "current Maturities of long term debt (refer note 8) .
7- Working Capital Loans are from Consortium of Banks State Bank of India, Bank of Baroda , Punjab National Bank and Central Bank of India led by State Bank of India where in, SBI Cash Credit Loan of Rs-3065.59 Lakhs (Previous Year: Rs-2699.87 Lakhs), Bank Of Baroda Cash Credit Loan of Rs-590.44 (Previous Year: Rs-645.81 Lakhs), Punjab National Bank cash Credit Loan of Rs-348.89 Lakhs (Previous Year: Rs-381.23 Lakhs)and Central Bank of India Cash Credit Loan of Rs.176.18 Lakhs (Previous Year: Rs.184.29 Lakhs) secured by first Pari-pasu charge (between consortium members) on whole of companies present & future stocks of Raw Material, Finished Goods, Stock in Process, Stores & Spares and other Raw Material, and the companies present and future book debts, outstanding monies, receivable, claims, bills, Contracts, engagements, securities, investments, rights and assets of the company-The working capital facilities as above are further secured by way of equitable mortgage of Immovable Properties of the company and promoters, Related Entities and Personal Guarantees and Corporate Guarantees of Mr-Sanjay Kumar Agrawal, Mrs Rashmidevi Agrawal, Shree Padmavati Irrigations Private Limited, Shree Balaji Industries and Shree Venkatesh Industries.
8-Working Capital Loans from others includes Raw Material NSIC assistance of Rs.464.60 Lakhs (Previous Year: Rs.473.33 Lakhs) and is secured by bank guarantees-
9-The identification of suppliers as Micro, Small and Medium Enterprise defined under" The Micro, Small and Medium Enterprises Development Act, 2006" was done on the basis of information to the extent provided by the suppliers of the Company- .
Note 10-During previous year pursuant to the enactment of companies Act 2013, the Company has applied the estimated useful lives as specified in schedule II, except in respect of certain assets as disclosed in Accounting Policy on Depreciation and Amortization-Accordingly the amortized carrying value is being depreciated/Amortized over the revised/remaining useful lives-The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of Profit and Loss account amounting to Rs-5.22 lakh
11- During previous year the company has converted loan and advances amounting to Rs.4351.78 Lakhs given to Tapti Pipes & Products Ltd-FZE a wholly owned subsidiary into share capital vide Board resolution dated 27.09.2014-Accordingly, The Company has applied for necessary approval to the Authorized Dealer; However the approval is pending till date.
12- During the current year Texmo Petrochemicals Private limited (wholly owned subsidiary) was converted into Limited Liability Partnership under Limited Liability Partnership Act, 2008.
13-Stock of Finished goods includes uninsured consignment stock of Rs.102.28 Lakhs (P.Y-Rs.153.11 Lakhs) and stock at branch of Rs-91.06 Lakhs (RY-Rs-41.41 Lakhs)-In respect of inventory lying with consignees'' no third party confirmation is being obtained.
14- Insurance Claim Receivable
During the year 2010-11 on 21.03.2011 a fire occurred in main Raw Material godown at the factory
15- premises of the Company and the Company has lodged the claim of Rs-2547.69 Lakhs with the Insurance
16- Company and the same was accounted as âInsurance Claim Receivableâ-The Claim is finally settled by
17- Insurance Company for Rs-1640.86 Lakhs on 12.04.2012-The Management has filed lawsuit against the
18- Insurance Company as the claim is fully recoverable-The Management is confident of realizing the
19- amount due from the Insurance Company and accordingly no adjustments are made to the financial
20- results of the Company in this regard.
21.- During the year search u/s 132(1) of the Income Tax 1961 was carried out at the various business - premises of the company and at the residential premises of the directors and its associates-The - Income Tax Department has made certain preliminary observations of the various affairs of the - company but the final tax liability has not been ascertained and the matter is still under investigation-- The management is of the view that in pursuance of the search no extra tax liability emerges and - therefore it has not been considered necessary to make provision for additional tax liability-In view of - same the Company has not filed the Income Tax Return for the Assessment Year 2015-16 i.e-Financial - Year 2014-15 and the tax liability of Rs-58.25 Lakhs net off advance tax and TDS is not paid till date of - audit.
22. It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings as it is determinable only on receipt of judgments/decisions pending with various forums/authorities
23. The Company does not expect any reimbursements in respect of the above contingent liabilities.
24. The Companyâs pending litigations comprise of claims against the Company pertaining to proceedings pending with Income Tax, Sales/ VAT tax and other authorities-The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements-The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial statements.
25.-In accordance with AS-28 issued by ICAI, the carrying amounts of assets have been reviewed at year -end for indication of impairment loss, if any-As there is no indication of impairment of assets, no loss has -been recognized during the year.
26. The Company is engaged mainly in production of pipes and fittings as such is the only reportable
27. segment as per Accounting Standard on Segment Reporting (AS-17) issued by the Institute of
28. Chartered Accountants of India-The geographical segmentation is not relevant as the company mainly
29. operates within India.
30.-The Company has recognized exchange differences arising on foreign currency items in line with Accounting Standard-11 Pursuant to above Net Exchange Loss on purchase of Raw Material and Machinery Spare Parts relating to the financial year 2015-16 amounting to Rs-1.13 Lakhs (PY Rs-4.43 Lakhs) has been recognized as Expense.
31. Balances of creditor and debtors/advances are subject to confirmation/reconciliation and consequential adjustment, if any.
32. The company has established Unit No-2 and is eligible for incentive under Madhya Pradesh Industrial Investment Promotion Assistance Scheme-2004, Wherein 75% of VAT and CST paid shall be refunded till F.Y 2018-19.During the year ended 31st March 2016, incentive as mentioned are booked in Other Operating Income of Rs-137.10 Lakhs (RY Rs-171.15 Lakhs).
33. Previous yearâs figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs classification/disclosure.
34. In the opinion of the Board of Director the current assets, loans and advance have a virtue of realization in ordinary course of business at least equal to the amount at which they are stated and the provision for all known liabilities are adequate and not in excess of the amount of reasonably necessary.
Mar 31, 2015
Contingent assets are neither recognized nor disclosed in the financial
statements.
1. The Company has recognized exchange differences arising on foreign
currency items in line with Accounting Standard-11 Pursuant to above
Net Exchange Loss on purchase of Raw Material and Machinery Spare Parts
relating to the financial year 2014-15 amounting to Rs. 4.43 Lacs (PY Rs.
26.78 Lacs) has been recognized as Expense.
2. Balances of creditors and debtor/advances are subject to
confirmation/reconciliation and consequential adjustments, if any.
3. The Company has established Unit no. 2 and is eligible for
incentive under Madhya Pradesh Industrial Investment Promotion
Assistance Scheme-2004, wherein 75% of VAT and CST paid shall be
refunded till F.Y 2018-19. During the year ended 31st March 2015,
incentive as mentioned are booked in Other Operating Income of Rs. 171.15
Lacs (P.Y 83.53 Lacs).
4. In the opinion of the Board of Directors the current assets, loans
and advances have a value of realization in ordinary course of business
at least equal to the amount at which they are stated and the provision
for all known liabilities are adequate and not in excess of the amount
reasonably necessary.
Mar 31, 2014
1. Insurance Claim Receivable
During the year 2010-11 on 21.03.2011a fire occurred in the main Raw
Material godown at the factory premises of the company and the company
has lodged the claim ofRs 2547.69 Lacs with the Insurance Company and
the same was accounted as ''Insurance Claim receivable''. The Claim is
finally settled by the Insurance company for 1640.86 Lacs on
12.04.2012. The Management has filed lawsuit against the Insurance
Company as the claim is fully recoverable. The management is confident
of realizing the amount due from the Insurance Company and accordingly
no adjustments are made to the financial results of the Company in this
regard.
2. Contingent Liabilities and Commitments not provided for :
Contingent Liabilities not provided for in respect of:
in Rs Lacs
31st March 2014 31st March 2013
a. Disputed Income Tax Demands 58.80 39.28
b.Disputed VAT,CST & Entry Tax Demands 253.00 301.38
c. Guarantees given by the company''s 664.50 262.59
Bankers in the normal course of business
d. Letter of Credit for Puchase of goods 104.81 148.79
3. In accordance with AS-28 issued by ICAI, the carrying amounts of
assets have been reviewed at year end for indication of impairment
loss, if any. As there is no indication of impairment of assets, no
loss has been recognized during the year.
4. The Company is engaged mainly in production of pipes and fittings
as such is the only reportable segment as per Accounting Standard on
Segment Reporting (AS-17) issued by the Institute of
CharteredAccountants of India. The geographical segmentation is not
relevant as the company mainly operates within India.
5. Related Party Transactions:
As per Accounting Standard(AS-18) on Related Party issued by ICAI, The
Disclosures of Transaction with related parties are as follows:
Party
Key Management Personnel
Relative of Key Management Personnel
Subsidiary Companies
Enterprises in which Key Managerial Personnel and Relatives of Key
Managerial Personnel are able to exercise significant influence
Associate Enterprise
Relationship
Shri Sanjay Agrawal (Managing Director)
Shri Vijay Prasad Pappu (Whole Time Director)
Mrs. Rashmi Devi Agrawal
Texmo Petrochemicals Private Limited
Tapti Pipes and Products Ltd FZE
Shree Padmavati Irrigations Private Limited
Venkatesh Industries
C.P. Industrial Products Private Limited
Rahul Developers Private Limited
Shree Vasudeo Industries
Mangal Murti Minerals
Previous year figures are shown in brackets
34. The Company has recognized exchange differences arising on foreign
currency items in line with Accounting Standard-11 Pursuant to above
net exchange loss on purchase of Raw Material and Machinery Spare parts
relating to the financial year 2013-14 amounting toRs 26.78Lacs (PY
3090Lacs)hasbeenrecognized as Expense.
Figures in brackets refer to previous year.
6. Balances of creditors and debtor/advances are subject to
confirmation/reconciliation and consequential adjustments, if any.
7. The Company has established Unit no. 2 and is eligible for
incentive under Madhya Pradesh Industrial Investment Promotion
Assistance Scheme-2004, wherein 75% of VAT and CST paid shall be
refunded till F.Y 2018-19. During the year ended 31st March 2014,
incentive as mentioned are booked in Other Operating Income ofRs.83.53
Lacs(P.YRs 111.60 Lacs).
8. The Total Capital of the Firm ''Mangal Murti Minerals'' isRs 45.80
Lacs. There are four partners'' in the firm (including the company).
Each partner (including the company) has equal proportion of interest
in the firm i.e 25%. Name of the Partners'' (Other than the company) are
Mr. Prakash Jain, Mrs. Nisha Dubey and Mrs. Seema Jain.
9. In the opinion of the Board of Directors the current assets, loans
and advances have a value of realization in ordinary course of business
at least equal to the amount at which they are stated and the provision
for all known liabilities are adequate and not in excess of the amount
reasonably necessary.
Statement Pursuant to Section 212(8) of The Companies Act, 1956
As per AS-21 issued by the institute of Chartered Accountants of India,
the financial statements of the company reflecting the consolidation of
the accounts of its subsidiary companies to the extent of equity
holding of the company in these companies are included in this Annual
Report.
The Ministry of Corporate Affairs, Government of India, vide General
Circular No.2 and 3 dated 8 February 2011 and 21 February 2011
respectively has granted a general exemption from compliance with
section 212 of the Companies Act, 1956, subject to fulfillment of
conditions stipulated in the circular. The Company has satisfied the
conditions stipulated in the circular and hence is entitled to the
exemption. Necessary information relating to the subsidiaries has been
included in the Consolidated Financial Statements.
Note: The above figures are as per audited financials.
Undertaking:-
We undertake that the annual accounts of the subsidiary companies and
related detailed information will be made available to the investors,
who seek such information, at any point of time. The annual accounts of
the subsidiary companies will also be kept for inspection by the
investor in the registered office of Texmo Pipes and Products Limited
and that of subsidiary companies concerned.
Mar 31, 2013
BACKGROUND
Texmo Pipes and Products Limited was formed as a Partnership Firm by
the name M/s Shree Mohit Industries on 13th May 1999 and was
subsequently converted and incorporated as a Public Limited Company in
July 2008 with the Registrar of Companies, Madhya Pradesh and
Chhattisgarh. The Partnership Firm was converted into Company under
Part IX of the Companies Act, 1956 under the name of Texmo Pipes and
Products Limited having Certificate of incorporation dated 3rd July
2008.
1. Insurance Claim Receivable
During the year 2010-11 on 21.03.2011 a fire occurred in the main Raw
Material godown at the factory premises of the company and the company
has lodged a claim of Rs. 2547.69 Lacs with the Insurance Company and the
same was accounted as Insurance Claim receivable. The Claim is finally
settled by the Insurance company for Rs. 1640.86 Lacs on 12.04.2012. The
Management has initiated legal action against the Insurance Company as
the claim is fully recoverable. The management is confident of
realizing the amounts due from the Insurance Company and accordingly no
adjustments are made to the financial results of the Company in this
regard and the same is shown under contingent liability by the company.
2. Contingent Liabilities and Commitments not provided for :
Amount in Rs. Lacs
Contingent Liabilities not
provided for in respect of: 31st March 2013 31st March 2012
a.Disputed Income Tax Demands 39.28 59.79
b.Disputed VAT,CST & Entry Tax Demands 301.38 307.10
c.Guarantees given by the
company''s Bankers 687.59 873.27
in the normal course of business
d.Insurance Claim Receivable 769.50 ----
Amount in Rs. Lacs
Capital Commitments not
provided for in respect of: 31st March 2013 31st March 2012
Capital Assets 357.97 ----
3. In accordance with AS-28 issued by ICAI, the carrying amounts of
assets have been reviewed at year end for indication of impairment
loss, if any. As there is no indication of impairment of assets, no
loss has been recognized during the year.
4. The company has raised USD $ 99,96,075 (Approx Rs. 4,402.27 Lacs)
through GDR (Global Depository Receipts) issue in the month of April
2011 by issuance of 627500 GDR Equivalent to Rs. 125.50 Lacs equity
shares) of USD $ 15.93 each. The funds raised through the issue are
invested and advanced to wholly owned foreign Subsidiary ''Tapti Pipes &
Products Ltd FZE''.
5. The Company is engaged mainly in production of pipes and fittings
as such is the only reportable segment as per Accounting Standard on
Segment Reporting (AS-17) issued by the Institute of Chartered
Accountants of India. The geographical segmentation is not relevant as
the company mainly operates within India.
6. The Company has recognized exchange differences arising on foreign
currency items in line with Accounting Standard-11 Pursuant to above
net exchange gain on purchase of raw material and Machinery Spare parts
relating to the financial year 2012-13 amounting to Rs. 30.90 Lacs (PY Rs.
57.35 Lacs (Loss)) has been recognized as income.
Figures in brackets refer to previous year.
7. The Unit II of the Company is exempted from Payment of Entry Tax
under the Scheme of Government of Madhya Pradesh for the period
29.08.2008 to 28.08.2013.
8. Balances of creditors and debtors/advances are subject to
confirmation/reconciliation and consequential adjustments, if any.
9. During the year ended 31st March 2013, other operating income
includes an amount of Rs. 111.60 Lacs (P.Y Rs. 156.41) being VAT/CST refund
receivable in accordance with the Madhya Pradesh Udhyog Samvardhan
Scheme, 2004.
10. In the opinion of the Board of Directors the current assets, loans
and advances have a value of realization in ordinary course of business
at least equal to the amount at which they are stated and the provision
for all known liabilities are adequate and not in excess of the amount
reasonably necessary.
11. The Previous Year figures have been re-grouped and re-classified to
confirm to current year''s classification. This adoption does not impact
recognition and measurement principles followed for preparation of
financial statements as on 31st March, 2013.
Mar 31, 2012
BACKGROUND
Texmo Pipes and Products Limited was formed as a Partnership Firm by
the name M/s. Shree Mohit Industries on 13th May 1999 and was
subsequently converted and incorporated as a Public Limited Company in
July 2008 with the Registrar of Companies, Madhya Pradesh and
Chhattisgarh. The Partnership Firm was converted into Company under
Part IX of the Companies Act, 1956 under the name of Texmo Pipes and
Products Limited having Certificate of incorporation dated 3rd July
2008.
a) Bank of India Term Loan for Office and Godown Indore of Rs. 105.17
Lacs (Previous Year: Rs. 133.94 Lacs) repayable within 57 equal monthly
installments repayable by November 2015 secured by Equitable mortgage
of respective immovable properties and personal guarantees of Mr.
Sanjay Agrawal and Mr. Vij ay Prasad Pappu Directors and Mrs.
Rashmidevi Agrawal relative of Director.
b) HDFC Bank Term Loan of Rs. 83.17 Lacs (Previous Year : Rs. Nil)
repayable within 120 equal monthly installments repayable by October
2021 secured by office No. 412, Mumbai
c) SBI Term Loan of Rs. 438.86 Lacs (Previous Year : Rs. 557.93 Lacs)
repayable within equal monthly installments repayable by June 2014
secured by exclusive charge on the fixed assets of the company and
equitable mortgage of Lands and buildings at Burhanpur and Indore and
personal guarantees of Mr. Sanjay Agrawal Director and Mrs. Rashmidevi
Agrawal relative of Director and corporate guarantee of Shree Padmavati
Irrigations Private Limited.
d) Vehicle Loans are Secured by way of hypothecation of respective
motor vehicles purchased.
i. Bank of India Vehicle Loan ofRs. 25.72 Lacs (Previous Year: Rs. 63.44
Lacs) repayable within 54 equal monthly installments. Repayable by
September 2015
ii. HDFC Bank Limited Vehicle Loan of Rs. 53.21 Lacs (Previous Year: Rs.
3.30 Lacs) repayable within 36 equal monthly installments. Repayable by
January 2015.
Notes to the financial statement for the year ended 31st March 2012
a) SBI Cash credit Loan ofRs. 4290.83 Lacs (Previous Year: Rs. 4739.62
Lacs) secured by Hypothecation of Stocks, Book debts and Other Current
Assets and mortgage on all immovable and movable assets of the company
and promoters and personal guarantees of Mr. Sanjay Agawam and Mr. Vij
ay Prasad Pappu Directors and Mrs. Rashmidevi Agrawal relative of
Director.
b) Raw Material NSIC assistance ofRs. 475.39 Lacs (Previous Year : Rs.
471.52 Lacs) is secured by bank guarantees
c) No terms and conditions as to repayment and interest are stipulated
in respect of the Unsecured loan from parties
b) The identification of suppliers as micro, small and medium
enterprise defined under "The Micro, Small and Medium Enterprises
Development Act, 2006" was done on the basis of information to the
extent provided by the suppliers of the Company.
1. Contingent Liabilities and Commitments not provided for
Amount in Rs Lacs
Contingent Liabilities As at 31st
March 2012 As at 31st
March 2011
a. Disputed Income Tax Demands 59.79 11.09
b. Disputed VAT,CST & Entry Tax
Demands 307.10 256.33
c. Guarantees given by the Company's
Bankers in
the normal course of business 873.27 933.04
2. Insurance Claim Receivable
During the year 2010-11 on 21/03/2011 a fire occurred in main Raw
Material Godown at the Factory Premises of the Company and the Company
has lodged a Claim ofRs. 2547.69 Lacs with the Insurance Company and the
same was accounted as Insurance Claim Receivable under Current Assets.
The Claim is finally settled by the Insurance Company for Rs. 1640.86
Lacs on 12.04.2012. The Management is initiated legal action against
the Insurance Company as the claim is fully recoverable. The Statutory
Auditors has emphasized the above matter in their audit report. The
management is confident of realizing the amounts due from the Insurance
Company and accordingly no adjustments are required to be made to the
financial results of the Company as at 31 st March 2012 in this regard.
3. In accordance with AS-28 issued by ICAI, the carrying amounts of
assets have been reviewed at year end for indication of impairment
loss, if any. As there is no indication of impairment of assets, no
loss has been recognized during the year.
4. The company had raised USD $ 99,96,075 (Approx. Rs. 4402.27 Lacs)
through GDR(Global Depository Receipt) issue in the month of April 2011
by issuance of627500 GDR(equivalent to 125.50 Lacs equity shares) of
USD $ 15.93 each. The Funds raised through the issue are invested in
Money Market Instruments and in wholly owned subsidiary abroad.
5. The Company is engaged mainly in production of pipes and fittings
as such is the only reportable segment as per Accounting Standard on
Segment Reporting (AS-17) issued by the Institute of Chartered
Accountants of India. The geographical segmentation is not relevant as
the company mainly operates within India.
6. The Company has recognized exchange differences arising on foreign
currency items in line with Accounting Standard-11 Pursuant to above
net exchange loss on purchase of raw material relating to the financial
year 2011-12 amounting to Rs. 57.35 Lacs (PY gain ofRs. 20.63 Lacs) has
been recognized as expense.
7. The Unit 2 of the Company is exempted from Payment of Entry Tax
under the Scheme of Government of Madhya Pradesh for the period
29.08.2008 to 28.08.2013.
8. Balances of creditors and debtors/advances are subject to
confirmation/reconciliation and consequential adjustments, if any.
9. In the opinion of the Board of Directors the current assets, loans
and advances have a value of realization in ordinary course of business
at least equal to the amount at which they are stated and the provision
for all known liabilities are adequate and not in excess of the amount
reasonably necessary.
10. During the year ended 31 st March 2012, other operating income
includes an amount of Rs. 156.02 Lacs being VAT/CST refund receivable in
accordance with the Madhya Pradesh Udhyog Samvardhan Scheme, 2004.
11. The Previous Year's figures have been re-grouped / re-classified
to confirm to this year's classification which is as per the Revised
Schedule VI. This adoption does not impact recognition and measurement
principles followed for preparation of financial statements as on 31 st
March 2012.
Mar 31, 2011
BACKGROUND
Texmo Pipes and Products Limited was formed as a Partnership Firm by
the name M/s Shree Mohit Industries on 13th May 1999 and was
subsequently converted and incorporated as a Public Limited Company in
July 2008 with the Registrar of Companies, Madhya Pradesh and
Chhattisgarh.
The Partnership Firm was converted into Company under Part IX of the
Companies Act, 1956 under the name of Texmo Pipes and Products Limited
having Certificate of incorporation dated 3rd July 2008.
1.Contingent Liabilities not provided Amt in Rs.(Lacs)Amt in Rs.(Lacs)
for in respect of: 31st March 11 31st March 10
a) Disputed Income Tax Demands 11.09 11.09
b) Disputed VAT,CST& Entry
Tax Demands 256.33 --
c) Guarantees given by the Company's
Bankers in 933.04 324.48
the normal course of business
d) Import Letter of Credits issued by
Company's Bankers -- 72.00
2. Insurance Claim Receivable
During the year on 21/03/2011 a fire occurred in main Raw Material
Godown at the Factory Premises of the Company and the Company has
lodged a Claim of Rs.25.47 Crores with the Insurance Company and the
same is accounted as Insurance Claim Receivable under Current Assets.
2. In accordance with AS-28 issued by ICAI, the carrying amounts of
assets have been reviewed at year end for indication of impairment
loss, if any. As there is no indication of impairment of assets, no
loss has been recognized during the year.
3. Disclosure under the Micro, Small and Medium Enterprise Development
Act, 2006:
a) The information as required to be disclosed under the Micro, Small
and Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the Company.
4. The Company is engaged mainly in production of pipes and fittings as
such is the only reportable segment as per Accounting Standard on
Segment Reporting (AS-17) issued by the Institute of Chartered
Accountants of India. The geographical segmentation is not relevant as
the company mainly operates within India.
5. Stock Details
Additional information pursuant to the provisions of paragraphs 3, 4C &
4D of Part II of Schedule Vl of the Companies Act,1956.
Details of Capacity, Products Manufactured, Traded, Turnover, Opening
Stock, Closing Stock of Goods Produced for Sale & Traded:
6. The Company has recognized exchange differences arising on foreign
currency items in line with Accounting Standard-11 Pursuant to above
net exchange gain on purchase of raw material and fixed asset relating
to the financial year 2010-11 amounting to Rs. 20.63 Lakhs (PY Rs.
14.67 Lakhs) has been recognized as income.
7. The company's subsidiary "Tapti Pipes & Products Limited FZE,
U.A.E" was incorporated on 13/03/2011 and no activities were started
since incorporation. Therefore Consolidated Financial Statements as per
AS-21 are not prepared.
8. The Unit 2 of the Company is exempted from Payment of Entry Tax
under the Scheme of Government of Madhya Pradesh for the period
29.08.2008 to 2808.2013.
9. In Fixed Assets there are nine vehicles which are not registered
in name of Company but are registered in nameoferstwhilefirms.
10. Balances of creditors and debtors/advances are subject to
confirmation/reconciliation and consequential adjustments, if any.
11. In the opinion of the Board of Directors the current assets, loans
and advances have a value of realization in ordinary course of business
at least equal to the amount at which the yare stated and the provision
forall known liabilities are adequate and not in excess of the amount
reasonably necessary.
Mar 31, 2010
BACKGROUND
Texmo Pipes and Products Limited was formed as a Partnership Firm by
the name M/s Shree Mohit Industries on 13th May 1999 and was
subsequently converted and incorporated as a Public Limited Company in
July 2008 with the Registrar of Companies, Madhya Pradesh and
Chhattisgarh. The Partnership Firm was converted into Company under
Part IX of the Companies Act, 1956 under the name of Texmo Pipes and
Products Limited having Certificate of incorporation dated 3rd July
2008.
1. Contingent Liabilities not provided for in respect of:
Amt in Rs.
3Ist. March 10
a) Disputed Income Tax Demands 11,09,563.00
b) Guarantees given by the Companys Bankers
in the normal course of business 3,24,48,188.10
c) Import Letter of Credits issued by Companys
Bankers 72,00,000.00
2. In accordance with AS-28 issued by ICAI, the carrying amounts of
assets have been reviewed at year end for indication of impairment
loss, if any. As there is no indication of impairment of assets, no
loss has been recognized during the year.
3. Disclosure under the Micro, Small and Medium Enterprise Development
Act, 2006:
a) The information as required to be disclosed under the Micro, Small
and Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the Company.
b) Disclosure in accordance with Section 22 of the Act read with
Notification No. GSR 719(E) dated 16thNovember2007 issued by the
Ministry of Corporate Affairs: -
4. Payment to Statutory Auditors includes fees for Statutory & Tax
Audit (Net of Service Tax) of Rs.2,00,000/-.
5. The Company is engaged mainly in production of pipes and as such is
the only reportable segment as per Accounting Standard on Segment
Reporting (AS-17) issued by the Institute of Chartered Accountants of
India. The geographical segmentation is not relevant as there is no
export turnover.
6. Related Party Transactions:
As per Accounting Standard (AS-18) on Related Party Disclosures Issued
by ICAI, The Disclosures of Transaction with the related Parties are as
Follows-
Party Relationship
Sanjay Agrawal Managing Director-Key Management Personnel
Rashmi Devi Agrawal Relative of Key Mangement Personnel
M/s Shree Padmavati
Irrigations Pvt. Ltd. Reiated Party-Common Control Exists
M/s Shree Venkatesh
Industries Related Party-Common Control Exists
Vijay Prasad Pappu Whole Time Director-Key Management
Personnel
Shri Narendra Agrawal Relative of Key Mangement Personnel
7. The Unit 2 of the Company is exempted from Payment of Entry Tax
under the Scheme of Government of Madhya Pradesh for the period
29.08.2008 to 28.08.2013.
8. In Fixed Assets there are nine vehicles which are not registered
in name of Company but are registered in name of erstwhile firms.
9. Balances of creditors and debtors/advances are subject to
confirmation/reconciliation and consequential adjustments, if any.
10. In the opinion of the Board of Directors the current assets, loans
and advances have a value of realization in ordinary course of business
at least equal to the amount at which they are stated and the provision
for all known liabilities are adequate and not in excess of the amount
reasonably necessary.
11. The previous year figures are for the period of 03rd July 2008 to
31st March 2009 hence they are incomparable with current year figures.
Figures for the previous year have been regrouped/reclassified wherever
necessary.
Mar 31, 2009
BACKGROUND
Texmo Pipes and Products Limited was formed as a Partnership Firm by
the name M/s Shree Mohit Industries on 13th May 1999 and was
subsequently converted and incorporated as a Public Limited Company in
July 2008 with the Registrar of Companies, Madhya Pradesh and
Chhattisgarh. The
Partnership Firm was converted into Company under Part IX of the
Companies Act, 1956 under the name of Texmo Pipes and Products Limited
having Certificate of incorporation dated 3rd Ju!y 2008.
1. Contingent Liabilities not provided for in respect of:
Amt in Rs.
31st March 09
a. Disputed Income Tax Demands 5,11,418.00
b. Guarantees given by the Companys
Bankers in the normal 36,70,493.00
course of business
c. Import Letter of Credits issued by
Companys Bankers 64,00,000.00
2. Deferred Tax
In accordance with AS-22 issued by ICAI, the deferred tax liability of
Rs.26,59,103/- has been shown as deferred tax debit for the year. The
cumulative deferred tax liability is due to difference in book and tax
depreciation and Gratuity.
3. In accordance with AS-28 issued by ICAI, the carrying amounts of
assets have been reviewed at year end for indication of impairment
loss, if any. As there is no indication of impairment of assets, no
loss has been recognized during the year.
4. Security for Secured Loans:
Principal Terms of Secured Loans and Assets Charged as Security
1. The Term Loan from ICICI Bank is taken for purchase of Trucks
(Swaraj Mazda) against the Hypothecation of Trucks financed and which
are charged in favour of the Bank. The Term Loan is repayable in Equity
Monthly Installments and is repayable within one year.
2. The Term Loan from Bank of India is taken for purchase of Motor Car
(Scorpio) against the Hypothecation of Motor Car financed and is
charged to the Bank.
3. The Term Loan from IDBI Bank Ltd is taken for acquisition of Plant
& Machineries against the Primary security of Plant & Machineries
acquired and common collateral securities as for working capital
finance mentioned below.
Collateral Security:
Equitable Mortgage of Plot and building ay 596/1, Renukamata mandir
road, Burhanpur owned by Shri Narendra Agrawal.
Extension of Hypothecation charge all the plant and machineries of the
Company.
Equitable mortgage of factory land & building situated at KH no 98-99 &
100 at Bahadrapur Road, Burhanpur, Madhya Pradesh of the Company.
Equitable mortgage of land at KH no 95 , 107/1, 107/2 and 107/3 at
Bahadrapur Road, Burhanpur, Madhya Pradesh in the name of Smt Rashmi
Devi Agrawal, Shri Sanjay Agrawal.
Equitable mortgage of Two Godowns at 22,23 Maha veer Market, LohaMandi,
Indore in the name of Shri Sanjay Agrawal and Smt Rashmi Devi Agrawal.
RIPD of Rs.4.00 Lakhs and FDR of Rs.50 Lakhs duly discharged and kept
as security.
Guarantors:
Mr. Sanjay Agrawal, Mr. Narendra Kumar Agrawal, Ms. Rashmidevi Agrawal,
Mr. Ratilal Dalai Mr. Vijay Prasad Pappu and corporate guarantee of
Shree Padmavati Irrigations Private Limited.
5. Micro, Small and Medium Enterprise Development Act, 2006:
During the year, the Company has circulated request to all the
suppliers to confirm their status under Micro, Small and Medium
Enterprises Act, 2006 and despite regular follow up the Company has not
received confirmations from any suppliers and hence disclosures
relating to amounts unpaid as at the year end together with interest
paid/payable under this Act have not been given.
7. Payment to Statutory Auditors includes fees for Statutory & Tax
Audit of Rs.50,000/-. The remuneration debited to Profit & Loss A/c
does not include Rs.2,00,000/- towards services rendered for proposed
Initial Public Offer of the Company which is considered as an
Expenditure for Public Issue and shall be set off against the balance
of Share Premium Account after the issue.
8. The Company is engaged mainly in production of pipes and as such is
the only reportable segment as per Accounting Standard on Segment
Reporting (AS-17) issued by the Institute of Chartered Accountants of
India. The geographical segmentation is not relevant as there is no
export turnover.
9. Related Party Transactions:
As per Accounting Standard (AS-18) on Related Party Disclosures Issued
by ICAI, The Disclosures of Transaction with the related Parties are as
Follows-
Party Relationship
Sanjay Agrawal Managing Director-Key Management Personnel
Rashmi Devi Agrawal Relative of Key Mangement Personnel
M/s Shree Padmavati
Irrigations Pvt.Ltd. Related Party-Common Control Exists
M/s Shree Venkatesh
Industries Related Party-Common Control Exists
M/s Shree Balaji
Industries Related Party-Common Control Exists
Vijay Prasad Pappu Whole Time Director-Key Management Personnel
Shri Narendra
Agrawal Relative of Key Mangement Personnel
11. The Unit 2 of the Company is exempted from Payment of Entry Tax
under the Scheme of Government of Madhya Pradesh for the period
29.08.2008 to 28.08.2013.
12. During the year the Company acquired specified assets and
liabilities of Shree Balaji Industries and Shree Padmavati Irrigation P
Ltd vide Business Transfer Agreements dated 5th August 2008 and of
Shree Venkatesh Industries vide Business Transfer Agreement dated 6th
August 2008. The Assets and Liabilities are accounted on date of
execution of Business Transfer Agreement in the books of the Company.
14. Balances of creditors and debtors/advances are subject to
confirmation/reconciliation and consequential adjustments, if any.
15. In the opinion of the Board of Directors the current assets, loans
and advances have a value of realisation in ordinary course of business
a least equal to the amount at which they are stated and the provision
for all known liabilities are adequate and not in excess of the amount
reasonably necessary.
16. This being the first year of the Company previous years figures
are not available.
17. The Company has been formed on 3rdJuly 2008. Therefore the
financial statements have been prepared for the period from 3rdJuly
2008 to 31stMarch 2009