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
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
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
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
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
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
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
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