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Texmo Pipes and Products Ltd.

BSE: 533164 | NSE: TEXMOPIPES |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE141K01013 | SECTOR: Plastics

BSE Live

Oct 29, 16:00
16.49 -0.50 (-2.94%)
Volume
AVERAGE VOLUME
5-Day
27,599
10-Day
20,088
30-Day
18,222
25,470
  • Prev. Close

    16.99

  • Open Price

    17.16

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Oct 29, 15:55
16.30 -0.50 (-2.98%)
Volume
AVERAGE VOLUME
5-Day
288,677
10-Day
172,698
30-Day
122,274
167,651
  • Prev. Close

    16.80

  • Open Price

    16.60

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    16.30 (297)

Annual Report

For Year :
2018 2016 2015 2014 2013 2012 2011 2010 2009

Auditor's Report

To,

The Members,

Texmo Pipes and Products Limited Burhanpur(M.P)

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Texmo Pipes and Products Limited (‘the Company’) which comprise the Balance Sheet as at March 31,2016, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (The Act”) with respect to preparation of these standalone financial statements that gives a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards referred to in section 133 of The Act.

This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting & auditing standards and matters which are required to be included in the audit report under the provision of the Act and the Rules made there under and the Order under section 143(11)of the Act.

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act-Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements-The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error-In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances-An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016, and its profit and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to the following matters in the Notes forming part to the standalone financial statements:

(i) Note 27 to the Standalone Financial Statements which describe the uncertainty related to the outcome of the lawsuit filed against the Insurance Company.

(ii) Note 28 to the Standalone Financial Statements which states search u/s 132(1) of the Income Tax Act, 1961, was carried out during the year-Since it is under investigation no provision has been made.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1-As required by Section 143(3) of the Act, we report, to the extent applicable, that:

a-we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

b- In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c- The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d- In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.

e- On the basis of written representations received from the directors as on March 31,2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2016 from being appointed as a director in terms of Section 164 (2) of the Act;

f- With respect to the adequacy of the internal financial control over financial reporting of the company and operating effectiveness of such controls, refer to our separate report in ‘Annexure A’-Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.

g- With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditor’s) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i The Company has disclosed the impact of pending litigations on its financial position in its financial statements-refer note 30 to the standalone financial statement.

ii- The Company has made provision as at March 31, 2016, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

iii- There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

2-As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the ‘Annexure B’ a statement on the matters specified in paragraph 3 and 4 of the Order.

''Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the Act)

We have audited the internal financial controls over financial reporting of Texmo Pipes and Products Limited (“the Company”) as of March 31,2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control overfinancial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India-These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit-We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India-Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness-Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk-The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles-A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected-Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31,2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

ANNEXURE B TO THE INDEPENDENT AUDITORS'' REPORT

(Referred to paragraph 2 under “Report on Legal and Regulatory Requirements section of our report of even date)

(I In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;

(b) The fixed assets have been physically verified during the year by the management in accordance with the regular programme of verification, which in our opinion, provides for physical verification of all the fixed assets at reasonable intervals-According to the information given to us, no material discrepancies were noticed on such verification.

(c) According to the information & explanation given to us on the basis of our examination of the records of the company, the title deeds of immovable properties are in the name of the company.

(ii) The physical verification of inventory excluding stocks with third parties has been conducted at reasonable intervals by the Management during the year-The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been appropriately dealt with in the books of accounts.

(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnership or other parties covered in register maintained under section 189 of Act.

(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 & 186 of the Act, with respect to loans, making investment and providing guarantee & security available.

(v) According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.

(vi) We have broadly reviewed the books of accounts maintained by the Company in respect of products where pursuant to the rules made by Central Government of India, the maintenance of cost records has been prescribed under sub section (1) of section 148 of the Companies Act, 2013, and we are of opinion that prima facie the prescribed accounts & records have been made & maintained-However, we have not made the detailed examination of the records.

(vii) (a) According to information explanation given to us and on the basis of our examination of records of the Company, amount deducted/accrued in the books of accounts in respect of undisputed statutory dues including provident fund, employees’ state insurance, income tax, sales tax, service tax, custom duty, excise duty, value added tax, cess, Professional tax and other material statutory dues have been regularly deposited during the year by the company with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees’ state insurance, sales tax, service tax, custom duty, excise duty, value added tax, cess, Professional tax and other material statutory dues except Income tax of Rs-58.25 lakhs related to Financial year 2014-15 were in arrears as at 31 st March 2016, for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no material dues of duty of customs, excise duty and cess which has not been deposited with the appropriate authorities on account of any dispute-However, according to the information and explanations given to us, the following dues of income tax, sales tax and value added tax have not been deposited by the Company on account of disputes:

Name of the Statute

Nature of dues

Amount in Rs-Lac

Period to which the amount relates

Forum where the dispute is pending

Central Sales Tax Act, 1956

Central Sales Tax

44.95

2007-08

M.P-High Court, Jabalpur

0.72

2008-09

M.P-Commercial Tax Appellate Tribunal

19.07

2013-14

Appellate Deputy Commissioner of Commercial Tax, Khandwa

Entry Tax Act, 1976

Entry Tax

36.32

2007-08

M.P-High Court, Jabalpur

12.93

2008-09

M.P-Commercial Tax Appellate Board

0.60

2013-14

Appellate Deputy Commissioner of Commercial Tax, Khandwa

Madhya Pradesh Value Added Tax,2002

Value Added Tax

113.79

2007-08

MP High Court, Jabalpur

5.93

2009-10

Appellate Deputy Commissioner of Commercial Tax, Khandwa

49.08

2009-10,2010-11 and 2011-12

M.P-Commercial Appellate Tribunal

18.53

2010-11

Additional Commissioner of commercial Tax Indore

Income Tax Act, 1956

Income Tax

7.04

2010-11

Income Tax Appellate Tribunal, Indore

(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans & borrowing of financial institutions, bank and government-The Company has not issued any debentures.

(ix) In our opinion and according to the information and explanations given to us, the Company did not raised moneys by way of initial public offer or further public offer (including debt instruments)-The term loans were applied, on an overall basis, for the purposes for which they were raised.

(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the company or on the Company by its officers or employees has been noticed or reported during the year.

(xi) The Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.

(xii) The Company is not a Nidhi Company-Accordingly paragraph 3(xii) of the order is not applicable to the company.

(xiii) According to the information and explanations given to us, and based on our examination of records of the Company, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013, where applicable and the details have been disclosed in the Financial Statements etc., as required by the Accounting Standard (AS) 18, Related Party Disclosure specified under section 133 of the Act, read with Rule 7 of the Companies Rules (Accounts) 2014

(xiv) The company has not made any preferential allotment or private placement of shares or fully or partly convertible debenture during the year-Accordingly, paragraph 3(xiv) of the Order is not applicable to the company.

(xv) The company has not entered into non-cash transaction with directors or person connected with him-Accordingly, paragraph3 (xv) of the order is not applicable to the company.

(xvi) The company is not required to be registered under Section 45-I A of the Reserve Bank of India Act, 1934.

For Pankaj Somaiya & Associates LLP

Chartered Accountants

Firm Regn-No-010081C/C400001

CA Pankaj Somaiya

Place: Burhanpur(M.P.) Partner

Date: 27th May, 2016 Membership No-79918