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.