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Notes to Accounts of Texmo Pipes & Products Ltd.

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

 
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