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.