Notes to Accounts of Tijaria Polypipes Ltd.

Mar 31, 2018

1.1General information:

The financial statements comprise of Balance Sheet, Statement of Profit and Loss, Statement of Change in Equity and Statement of Cash Flows together with the notes thereon of Tijaria Polypipes Limited for the year ended March 31, 2018.

The Company is a public limited company incorporated and domiciled in India under the provisions of the Companies Act applicable in India. It is a company listed at Bombay Stock Exchange (BSE). The Corporate office of the Company is located at SP-1-2316 RIICO Industrial Area, Ramchandrapura Sitapura Exten. Jaipur 302022 .

The Company is primarily engaged in the business of Manufacturing of PVC Pipes and Mink Blankets.

1.2 Basis of Preparation and Statement of compliance

The financial statements have been prepared in accordance with Ind ASs notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) (Amendment) Rules, 2016.

For all periods upto and including the year ended March 31, 2017, the Company prepared Its financial statements in accordance with the requirements of previous GAAP prescribed under section 133 of the Companies Act, 2013 (''the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014. The financial statements for the financial year ended March 31, 2018 are the Company''s first Ind AS compliant annual financial statements with comparative figures for the year ended March 31, 2017 also under Ind AS. The date of transition is April 1, 2016. Please refer to note 5 for detailed disclosure on the first time adoption of Ind AS. for the details of significant first-time adoption exemptions availed by the Company and an explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, it''s performance and cash flows.

The financial statements are prepared under the historical cost convention, on the accounting principles of a going concern. All assets and liabilities have been classified as current or non-current in accordance with the operating cycle criteria set out in Ind AS 1 and Schedule III to the Companies Act, 2013.

Accounting Policies not specifically referred to otherwise are consistent and in consonance with the applicable accounting standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules,2014.

All expenses and incomes to the extent ascertainable with reasonable certainty are accounted for on accrual basis. All taxes, duties and cess etc paid on purchases have been charged to the Statement of Profit and Loss except such taxes, duties and cess, which are subsequently recoverable with reasonable certainty from the taxing authorities.

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) in India sometimes requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual result could differ from these estimates. Any revision to such estimate is recognised in the period in which same is determined.

The financial statements are presented in Indian Rupees (''INR'') and all values are rounded to the nearest rupee, except otherwise indicated.

Explanatory notes to Reconciliation

1) Property, plant and equipment

The Company has elected to continue with the carrying value of all of its property plant and equipment recognised as of April 1, 2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

2) Intangible Assets

The Company has elected to continue with the carrying value of all of its intangible assets recognised as of April 1, 2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

3) Borrowings

Under Previous GAAP, transaction costs incurred in connection with borrowings are amortized upfront and charged to profit or loss for the period. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method.

4) Deferred tax

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Previous GAAP.

In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity. On the date of transition, the net impact on deferred tax liabilities is of Nil. (31 March 2015: Nil).

5) Other comprehensive income

Under Previous GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Previous GAAP profit or loss to profit or loss as per Ind AS. Further, Previous GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

6) Statement of cash flows

The transition from Previous GAAP to Ind AS has not had a material impact on the statement of cash flows.

7) Financial Instruments: Classifications and Fair Value Measurement

This note provides information about how the Company determines fair values of various financial assets and financial liabilities (which are measured at fair value through profit or loss).

Fair value of financial assets and financial liabilities

The management consider that the carrying amounts of non-current and current financial assets and liabilities recognised in the financial statements approximate their fair values.

Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(i) Debt is defined as long-term and short-term borrowings (excluding derivative and contingent consideration).

2.-Other Notes on Financials Statements.

(a) All the balance shown under the heads Trade Receivables, Trade Payables, Loans and Advances, Security Deposits, Other Current Assets, Other Current Liabilities and Unsecured Loans are subject to confirmation and reconciliation.

(b) Corporate Social Responsibility (CSR)

As the net worth of the company is below Rs. 500 crores, Turnover is below Rs. 1000 crores and Net Profit is below Rs. 5 crores, provision of Section 135 of Companies Act, 2013 are not applicable on the company.

(c) The Company has provided the provision for liability of works carried/supplies received pertaining to financial year 2017-18 till such invoices are received by the Company upto 15.05.2018.

(d) Figures have been taken to nearest rupees. Previous year figures have been regrouped / rearranged wherever considered necessary to make them comparable with the Current Year figures.

(f) Consumption of Raw Materials, Stores and Spares, Diesel, Furnace Oil, Lubricants and Power etc. have been considered in the accounts as made available by a Director of Company being technical in nature.

(j) Stores & Spares Consumed is all Indigenous. (k) CIF Value of Imports

3.- Related party disclosure

The related parties where control and significant influence exists are Parents and associates respectively. Key Management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any Director whether executive or otherwise.

4.- Events after the reporting period:

In respect of the financial year ending March 31, 2018, no events are required to be reported which occurred after the reporting period.

5.- Approval of financial statements:

The financial statements were approved for issue by the Board of Directors on 30 th May, 2018.

6.- Disclosure under Micro, Small and Medium Enterprises Development Act:

The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), based on the available information with the Company are as under:

7.- Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company operates in a competitive environment and is exposed in the ordinary course of its business to risk related to changes in foreign currency exchange rates, commodity prices and interest rates. The fair value of future cash flows of sale of products manufactured and traded will depend upon the demand and supply as well as import of raw material mainly from China which has major effect on prices in local markets.

8.- Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the company. It encompasses of both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration risks. Company''s credit risk arises principally from the trade receivable and advances.

Trade Receivables:

Customer credit risk is managed by the company through established policy, procedures and controls relating to customer credit risk management. Credit quality of a customer is assessed based on financial position, past performance, business/economic conditions, market reputation, expected business etc. Based on that credit limits and credit terms are decided. Outstanding customer receivables are regularly monitored.

Trade receivables consists of large number of customers spread across diverse segments and geographical areas with no significant concentration of credit risk. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

The average credit period on sales of Pipes and PVC Tubes lignite is 60-180days.

Trade receivables are disclosed below in the aged analysis and during the reporting period, the Company has not recognised an allowance for doubtful debts because there has not been a significant change in credit quality and the amounts are considered recoverable.

9.- Operating segment:

The Managing Director of the Company is Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. The CODM evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators, however only for two segments viz. one is "Pipes includes DHPE/PVC Pipe, irrigation System" and second one is Textile includes Mink Blanket. Hence the Company considered business segment for reportable Segments as per Indian Accounting Standard 108 "Operating Segments".

10.- Earnings per share:

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the parent by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent (after adjusting for interest on the convertible preference shares) by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

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Mar 31, 2015

1. Background and Nature of Operations

The Tijaria Polypipes Ltd (the ''Company''), was originally incorporated in India on July 17, 2006 as Tijaria Polypipes Private Ltd. After having duly passed the necessary resolution on July 18, 2006, the name of the said company changed to Tijaria Polypipes Ltd on conversion to Public Ltd Company. The Company is engaged primarily in the business of manufacturing of pipes, yarn and mink blankets located at Jaipur.

2. SHARE CAPITAL

Rights, preferences and restrictions attached to Equity Shares :

The Company has one class of equity shares of Rs. 10 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

3. a. Secured loans are covered by :

Term loans from Bank of India including current maturities are secured by way of first charge as under:

First charge on all movable and immovable properties of the company and secured by deposit of title deeds by way of creation of equitable mortgage in respect of land situated at various locations in the name of the company.

Hypothecation of all fixed assets namely land, building, plant & machineries, miscellaneous fixed assets furniture & fixtures and entire current assets of the company. First charge on residential property of promoter directors of the company and secured by deposit of title deeds by way of creation of equitable mortgage on the said property.

Corporate guarantee, jointly & severally, of two group companies, namely Tijaria Vinyl Pvt. Ltd. and Tijaria Industries Ltd. Further, loan is secured by deposit of title deeds by way of creation of equitable mortgage in respect of land in the name of the said companies.

Personal guarantee, jointly and severally, of all the four promoter directors of the company and their relatives.

b. Repayment terms of outstanding long term borrowings as on March 31, 2015 are as follows:

Repayment terms for secured rupee term loans:

Facility 1 corporate loan (Rs. 9,28,36,352.00) balance amount is repayable on bullet payment basis within next 12 months with interest @13.70%.

Facility 2 funded interest term loan (Rs. 74,04,344.00) balance amount is repayable in 36 equal monthly installments with interest @13.45%, starting from November, 2015. Facility 3 funded interest term loan (Rs. 1,67,45,527.00) balance amount is repayable in 36 equal monthly installments with interest @13.45%, starting from November, 2015.

Facility 4 term loan (Rs. 27,08,353.00) balance amount is repayable in 13 equal monthly installments with interest @13.70%, starting from November, 2015. Facility 5 term loan (Rs. 19,91,91,002.78) balance amount is repayable in 60 equal monthly installments with interest @13.70%, starting from November, 2015.

Facility 6 working capital term loan (Rs. 8,92,75,168.84) balance amount is repayable in 36 equal monthly installments with interest @13.70%, starting from November, 2015. Facility 7 vehicle loan (Rs. 8,53,457.53) balance amount is repayable in 56 equal monthly installments with interest @10.45%, starting from April, 2015.

Facility 8 vehicle loan (Rs. 11,49,316.00) balance amount is repayable in 29 equal monthly installments with interest @10.38%, starting from April, 2015.

4. Contingent Liabilities:

The following contingent liabilities have not been provided for in respect of:

a. Letter of Credit is Rs. 1,64,95,080/- (Previous Year Nil).

b. Bank Guarantees for Rs. 4,63,71,654/- (Previous Year Rs. 2,85,27,000/-).

c. The following litigations against the company are pending as on date:

Sl. Name of Party/ Nature No. Department

1. M/s Gateway Carrying Petition pending for hearing before the C0rp0rati0n Delhi Hon''ble High Court,Jaipur under Section 433(e), 434 & 439(1) of the Companies Act, 1956.

2. Commercial Taxes Appeal pending before the Tribunal, Mumbai Department, Nashik against the demand order passed by Sales Tax Authority, Nashik under section 26 of MVAT'' 2002.

3. Income Tax Appeal pending for hearing before the Commissioner, Jaipur Tribunal Jaipur against the order passed by CIT(A), Jaipur for refund of advance tax already deposited for Rs.2,61,25,750/-

Sl. Name of Party/ Amount Pending No. Department Involved before

1. M/s Gateway Carrying 37,14,200/- Hon''ble High C0rp0rati0n Delhi Court, Jaipur

2. Commercial Taxes 3,90,26,553/ Sales Tax Department, Nashik Appellate Tribunal, Mumbai

3. Income Tax 2,63,31,545/ Income-tax Commissioner, Jaipur Appellate Tribunal, Jaipur

5. The Securities & Exchange Board of India, Mumbai vide their Order dated June 20, 2014 pursuant to section 19 read with section 11(4) and 11(B) of Securities and Exchange Board of India Act, 1992 and Regulation 11(1) of the PFUTP Regulations and ICDR Regulations, 2009 has advised for call back of project advances of Rs. 20.40 crores from the vendors and keep in separate account till further direction. Aggrieved with the order, Company has replied to the SEBI and filed an appeal in this regard before the SAT, Mumbai.

6. The company has not received any intimation from its suppliers being registered under Micro, Small and Medium Enterprises Development Act, 2006. Hence, the disclosure relating to amount unpaid as at the end of the year together with interest paid/payable under this Act have not been given separately.

7. The company has sold two industrial vacant plots of land to repay the demand loan taken from Bank of India. This will not have any effect on the going concern of the company as the plots were vacant.

8. In the opinion of the Board, Loans & Advances, Sundry Debtors and other Current Assets, if realised in the ordinary course of business, have the value at which they are stated in the Balance Sheet.

9. The Company is having balance of Rs. 8940/- in its IPO - Refund Account which is pending for refund due to non-presentation of refund order by the investor. The Registrar & Share Transfer Agent M/s Sharex Dynamic (India) Pvt. Ltd., Mumbai has sent letters to the respective investors for refund of the application money.

10. The Company has been awarded a work order under Narmada Canal Project. Sales/Revenue under this project have been recorded on the basis of running bills and credited in Profit and Loan Account.

11. The company has recognised and written off Rs.1,21,63,717/- on account of Bad Debt, as the same seems unrecoverable.

12. The Company has a defined benefit gratuity plan.Every employee who has completed five years or more of service gets a gratuity on departure at 15 days last drawn salary for each completed year of service. The scheme is funded with LIC in the form of a qualifying insurance policy. Gratuity expense has been provided as per actuarial valuation made by the LIC under projected unit credit method.

13. Related Party Transactions :

As per Accounting Standard-18 on "Related Party Disclosures", the transactions entered into with the related parties are disclosed below which were entered in the ordinary course of business:

1. Key Management Personnel

a. Mr. Alok Jain Tijaria - Managing Director

b. Mr. Vikas Jain Tijaria - Whole Time Director

c. Mr. Praveen Jain Tijaria - Whole Time Director

d. Mr. Vineet Jain Tijaria - Whole Time Director

e. Mr. Vinod Sharma - Chief Financial Officer

f. Mr. Satish Sharma - Company Secretary & Compliance Officer

2. Companies under the same Management

a. Tijaria Industries Limited

b. Tijaria International Limited

c. Tijaria Vinyl Private Limited

14. All the figures are rounded off to the nearest rupee and the previous year figures have been reclassified in accordance with current year requirements.

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Mar 31, 2014

Rights, preferences and restrictions attached to Equity Shares :

The Company has one class of equity shares of Rs. 10 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

a. Secured Loans are covered by :

Term Loans from Bank of India including current maturities are secured by way of first charge as under:

First charge on all movable and immovable properties of the Company and secured by deposit of title deeds by way of creation of equitable mortgage in respect of land situated at various locations in the name of the Company.

Hypothecation of all fixed assets namely land, building, plant & machineries, miscellaneous fixed assets, furniture & fixtures and entire current assets of the Company.

First charge on residential property of promoter directors of the Company and secured by deposit of title deeds by way of creation of equitable mortgage on the said property. Corporate Guarantee, jointly & severally, of two group companies, namely Tijaria Vinyl Pvt. Ltd. and Tijaria Industries Ltd. Further, loan is secured by deposit of title deeds by way of creation of equitable mortgage in respect of land in the name of the said companies.

Personal guarantee, jointly and severally, of all the four promoter directors of the Company and their relatives.

Deferred development charges from RIICO Ltd. Including current maturities is secured by hypothecation of land against which the deferred development charges is due for payment.

b. Repayment Terms of outstanding long term borrowings (excluding current maturities) as on March 31, 2014 after Restructuring is as follows:

Repayment Terms for Secured Rupee Term Loans:

TL-IV (Rs.27,08,353) Balance amount is repayable in 13 equal monthly installments with interest @13.70%, starting from November, 2015.

TL-V (Rs. 20,71,23,017) Balance amount is repayable in 60 equal monthly installments with interest @13.70%, starting from November, 2015.

FITL-I (Rs. 1,30,000) Balance amount is repayable in 10 equal monthly installments with interest @13.45%, starting from November, 2015.

FITL-II (Rs. 74,04,344) Balance amount is repayable in 36 equal monthly installments with interest @13.45%, starting from November, 2015.

FITL-III (Rs. 1,67,45,527) Balance amount is repayable in 36 equal monthly installments with interest @13.45%, starting from November, 2015.

WCTL (Rs. 8,92,00,000) Balance amount is repayable in 36 equal monthly installments with interest @13.45%, starting from November, 2015.

Repayment Terms for Secured Buyer Credit Loan in Foreign Currency :

Buyer Credit Loan in Foreign Currency has been granted for a period of six months subject to roll over maximum up to three years. Upon expiry of three years or not opting to roll over after expiry of six months, whichever is earlier, the said loan will be converted into rupee term loan at the exchange rate prevailing at that point of time and shall be merged into TL-V . Repayment shall be made as per terms stated in TL-V above. The interest rate is varying between 1.9514% to 2.3514%.

c. Deferred Development Charges (excluding current maturities) are repayable in 6 equal quarterly installments with interest @12%, the first being due on June 30, 2013

Notes attached to and forming part of the Financial Statement as on and for the year ending March 31, 2014:

1. Background and nature of operations

The Tijaria Polypipes Ltd (the ''Company''), was originally incorporated in India on July 17, 2006 as Tijaria Polypipes Private Ltd. After having duly passed the necessary resolution on July 18, 2006, the name of the said company changed to Tijaria Polypipes Ltd on conversion to Public Ltd Company. The Company is engaged primarily in the business of manufacturing of pipes, yarn and mink blankets located at Jaipur.

1. Contingent Liabilities:

The following contingent Liabilities have not been provided for in respect of:

a. Letter of Credit is NIL (Previous Year Rs 7,74,66,966/-).

b. Bank Guarantees for Rs. 2,85,27,000/- (Previous Year Rs. 3,79, 88,475/-).

c. The Company has imported various machineries under EPCG concessional duty scheme and the duty saved amount is Rs.3,50,79,107/- (previous year Rs.3,50,79,107/-). The Company is to fulfil export obligations within the stipulated time; otherwise there will be imposition of interest and penalty under the Scheme.

d. The following litigations against the company are pending as on date:

2. The company has not received any intimation from its suppliers being registered under Micro, Small and Medium Enterprises Development Act, 2006. Hence, the disclosure relating to amount unpaid as at the end of the year together with interest paid/payable under this Act have not been disclosed separately.

3. The company has been sanctioned its restructuring proposal tabled with Bank of India and the repayment of Term Loans has been deferred and all the overdue amounts in company''s Cash Credit Account has been converted in to Working Capital Term Loan.

4. Previous year figures have been reclassified in accordance with current year requirements.

5. In the opinion of the Board, Loans & Advances, Sundry Debtors and other Current Assets, if realised in the ordinary course of business, have the value at which they are stated in the Balance Sheet.

6. The Company is having balance of Rs. 8940/- in its IPO - Refund Account which is pending for refund due to non-presentation of refund order by the investor. The Registrar & Share Transfer Agent M/s Sharex Dynamic (India) Pvt. Ltd., Mumbai has sent letters to the respective investors for refund of the application money.

7. The Company has been awarded a work order under Narmada Canal Project. Previously, The Sales / Revenue under this project have been recorded on the basis of running bills and credited in Profit and Loas Account. Expenses have been recorded on the basis of expenses incurred and charged to Profit & Loss Account.

8. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days last drawn salary for each completed year of service. The scheme is funded with LIC in the form of a qualifying insurance policy. Gratuity expense has been provided as per actuarial valuation made by the LIC under projected unit credit method.

9. The information in respect of employee benefits for gratuity as per AS 15 managed by LIC is as under:

Deffered tax Asset are recognised and carried forward only to the extent that there is virtual certainty of realisation. In view of heavy current year and unabsorbed losses, the deferred tax realised in earlier years have been written off.

19. Related Party Transactions :

As per Accounting Standard-18 on "Related Party Disclosures", the transactions entered into with the related parties are disclosed below which were entered in the ordinary course of business:

1. Companies under the same Management:

a) Tijaria Industries Limited

b) Tijaria International Limited

c) Tijaria Vinyl Private Limited

2. Key Management Personnel:

a) Mr. Alok Jain Tijaria - Managing Director

b) Mr. Vikas Jain Tijaria - Whole Time Director

c) Mr. Praveen Jain Tijaria - Whole Time Director

d) Mr. Vineet Jain Tijaria - Whole Time Director

3. Relatives to Key Management Personnel:

a) Mrs. Anu Jain Tijaria b) Mrs. Purnima Jain Tijaria

c) Mrs. Reema Jain Tijaria d) Mrs. Sonal Jain Tijaria

e) Mr. Ramesh Jain Tijaria f) Mrs. Maya Jain

g) Mrs. Kunti Jain

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Mar 31, 2013

1. Background and nature of operations

The Tijaria Polypipes Ltd (the ''Company''), was originally incorporated in India on July 17, 2006 as Tijaria Polypipes Private Ltd. After having duly passed the necessary resolution on July 18, 2006, the name of the said company changed to Tijaria Polypipes Ltd on conversion to Public Ltd Company. The Company is engaged primarily in the business of manufacturing of pipes, yarn and mink blankets located at Jaipur.

2. Contingent Liabilities:

The following contingent Liabilities have not been provided for in respect of:

a. Letter of Credit forRs. 7,74,66,966/- (Previous Year Rs. 2,97,05,559/-).

b. Bank Guarantees for Rs. 3,79,88,475/- (Previous Year Rs. 2,31,82,821/-).

c. The Company has imported various machineries under EPCG concessional duty scheme and the duty saved amount is Rs. 3,50,79,107/- (previous year Rs. 2,55,62,950/-). The Company is to fulfill export obligations within the stipulated time; otherwise there will be imposition of interest and penalty under the Scheme.

d. The following litigations against the company are pending as on date:

3. The company has not received any intimation from its suppliers being registered under Micro, Small and Medium Enterprises Development Act, 2006. Hence, the disclosure relating to amount unpaid as at the end of the year together with interest paid/payable under this Act have not been disclosed separately.

4. Previous year figures have been reclassified in accordance with current year requirements.

5. In the opinion of the Board, Loans & Advances, Sundry Debtors and other Current Assets, if realised in the ordinary course of business, have the value at which they are stated in the Balance Sheet.

6. The Company is having balance of Rs. 8940/- in its IPO – Refund Account which is pending for refund due to non-presentation of refund order by the investor. The Registrar & Share Transfer Agent M/s Sharex Dynamic (India) Pvt. Ltd. Mumbai has sent letters to the respective investors for refund of the application money.

7. The Company has been awarded a work order under Narmada Canal Project. Previously, The Sales under this project have been recorded on the basis of invoice issued from time to time instead of running bills made by concerned authorities. The expenses incurred on this work side at sanchor and the payments received in accordance with running bills is directly accounted for in the project account which is not forming part of Revenue Accounts.

Now, The Company has changed its policy. The Sales / Revenue under this project have been recorded on the basis of running bills and credited in P&L account. Expenses have been recorded on the basis of expenses incurred and charged to P&L Account. The Net Effect of this change of policy in the previous years of Rs. 2,63,249/- has been credited in P&L account as a prior period Income.

8. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days last drawn salary for each completed year of service. The scheme is funded with LIC in the form of a qualifying insurance policy. Gratuity expense has been provided as per actuarial valuation made by the LIC under projected unit credit method.

9. Related Party Transactions :

As per Accounting Standard-18 on "Related Party Disclosures", the transactions entered into with the related parties are disclosed below which were entered in the ordinary course of business:

1. Companies under the same Management:

a) Tijaria Industries Limited

b) Tijaria International Limited

c) Tijaria Vinyl Private Limited

2. Key Management Personnel:

a) Mr. Alok Jain Tijaria - Managing Director

b) Mr. Vikas Jain Tijaria - Whole Time Director

c) Mr. Praveen Jain Tijaria - Whole Time Director

d) Mr. Vineet Jain Tijaria - Whole Time Director

3. Relatives to Key Management Personnel:

a) Mrs. Anu Jain Tijaria b) Mrs. Purnima Jain Tijaria

c) Mrs. Reema Jain Tijaria d) Mrs. Sonal Jain Tijaria

e) Mr. Ramesh Jain Tijaria f) Mrs. Maya Jain

g) Mrs. Kunti Jain

10. All the figures are rounded off to the nearest rupee.

Signature to Note 1 to 27 annexed to and forming part of the Balance Sheet as at 31st March, 2013 and the Statement of Profit and Loss for the year ended on that date.

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Mar 31, 2012

Rights, preferences and restrictions attached to Equity Shares:

The Company has one class of equity shares of Rs. 10 each. Each shareholder is eligible for one vote per share held* The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except In case of Interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

a. Secured Loans are covered by :

Term Loans from bank of India including current maturities are secured by way of first charge as under:

First charge on all movable and immovable properties of the Company and secured by deposit of title deeds hy way of creation of equitable mortgage in respect of land situated at various loactlons in the name of the Company.

Hypothecation of all fixed assets namely land, building, plant & machineries, miscellaneous fixed assets, furnitures & fixtures and entire current assets of the Company.

First charge on residential property of promoter directors of the Company and secured by deposit of title deeds by way of creation of equitable mortgage on the said property.

Corporate Guarantee, jointly & severally, of two group companies, namely Tijaria Vinyl Pvt. Ltd. and Tijaria Industries Ltd. Further, loan is secured by deposit of title deeds by way of creation of equitable mortgage in respect of land in the name of the said companies,

Personal guarantee, j''ointly and severally, of all the four promoter directors of the Company and their relatives.

Deferred development charges from RIICO Ltd. Including current maturities is secured by hypothecation of land against which the deferred development charges is due for payment.

Vehicle Loans including current maturities is secured by hypothecation of Vehicles against which the loans have been taken.

b. Re payment Term 5 of outstanding long term bor rowings {excluding current maturities) as on March 31, 2012 Re payment Terms for Secured Rupee Term Loans:

Facility l (T 2132193) - Balance amount Is repayable In 9 equal monthly installments, with Interest@ 12.75%, starting from April, 2013.

Facility 2 (T4661558) - Balance amount is repayable in 22 equal monthly installments with interest @ 12.75%, starting from April, 2013.

Facility 3 (Rs. 168546548) Balance amount is repayable in 60 equal monthly installments with interest @ 12.75/tf, starting from April, 2013.

Re payment Terms for Secured Buyer Credit Loan fn Foreign Currency :

Buyer Credit Loan in Foreign Currency has been granted for a period of six months subj''ect to roll over maximum upto three years. Upon expiry of three years or not opting to roll over after expiry of six months, whichever is earlier, the said loan will be converted into rupee term loan at the exchange rate prevailing at that point of time and shall be merged into facility 3, Repayment shall be made as per terms stated in facility 3 above. The interest rate is varying between 2.60% to 4.25%.

c. Deferred Development Charges (excluding current maturities) are repayable in 10 equal quarterly installments with interest 12%, the first being due on June 30, 2013.

1. Contingent Liabilities:

The following contingent Liabilities have not been provided for in respect of:

a. Letter of Credit for Rs. 2,97,05,559/- (Previous Year Rs. 9,13,59,194/-).

b. Bank Guarantees for Rs. 2,31,82,821/- (Previous Year Rs. 5,86,87,179/-).

c. The Company has imported various machineries under EPCG concessional duty scheme and the aggregate duty saved amount is Rs. 2,55,62,950/- (previous year Rs. 2,40,66,507/-). The Company is to fulfil export obligations within the stipulated time.

2. The company has not received any intimation from its suppliers being registered under Micro, Small and Medium Enterprises Development Act, 2006. Hence, the disclosure relating to amount unpaid as at the end of the year together with interest paid/payable under this Act have not been disclosed separately.

3. Closing Stock of finished goods includes excise duty ofRs. 36,87,471/- (previous yearRs. 9,28,501/-).

4. The revised Schedule VI as notified under the Companies Act, 1956, has become applicable to the Company for presentation of Its financial statements for the year ending March 31,2012. The adoption of the revised Schedule VI requirements has significantly modified the presentation and disclosures which have been complied with in these financial statements. Accordingly, previous year figures have been reclassified in accordance with current year requirements.

5. In the opinion of the Board, Loans & Advances, Sundry Debtors and other Current Assets, if realised in the ordinary course of business, have the value at which they are stated in the Balance Sheet.

6. Balance of Sundry creditors, sundry debtors and loans and advances are subject to verification.

7. The company has charged to the P&L Account final balance lying in preliminary expenses Rs. 1,00,001/- (Previous YearRs. 1,37,352/-) during the year. The share issue expenses amounting to Rs. 4,04,20,200/- (previous year - nil) has been fully charged from the securities premium account.

8. The Company is having balance of Rs. 8,940/- in its IPO - Refund Account which is pending for refund due to non- presentation of refund order by the investor.

9. The buyer credit loan taken in foreign currency for the purchase of fixed assets has been re-stated at the exchange rate prevailing as on Balance Sheet date. In view of MCA notification dated December 29, 2011 under AS 11, the Company has capitalized the exchange loss arising due to such re-statement amounting to Rs. 92,89,559/- (previous year - nil) after the same has been put to use and will be depreciated over the balance life of the assets. This has resulted into the increase in gross block of assets. Had this not been capitalized, the loss would have been higher by Rs. 92,89,559/-.

10. The company has been awarded a work order under Narmada Canal Project. The sales under this project have been recorded on the basis of invoice issued from time to time instead of running bills made by concerned authorities. The expenses incurred on this work side at Sanchor and the payments received in accordance with running bills is directly accounted for in the project account which is not forming part of Revenue Accounts.

11. The Company has a defined benefit gratuity plan. Every employee who has completed five years of more of service gets a gratuity on departure at 15 days last drawn salary for each completed year of service. The scheme is funded with LIC in the form of a qualifying insurance policy. Gratuity expense has been provided as per actuarial valuation made by the LIC under projected unit credit method.

The previous year figures are not available as the same has not been provided by the LIC.

12. Raw Material & stores are valued at cost and finished goods are valued at lower of cost and net realizable value ascertained on first in first out basis.

Cost of Inventories comprise of all cost of purchase, cost of conversion and other cost incurred in bringing them to there present location and condition.

Net realizable value is calculated on the basis of estimated sales price in the ordinary course of business less estimated gross profit margin.

The inventories have been physically verified by the management and day to day stock register has been maintained by the company as per Central Excise Rules only. The quantity and value of the same has been certified by the management. The Closing stock of finished goods has been valued including Excise Duty.

Deferred tax assets are recognized and carried forward only to the extent that there is a virtual certainty of realization of such assets. In view of unabsorbed losses and depreciation for the year, deferred tax asset has been recognized to the extent of balance of deferred tax liability as at the year end. Accordingly, deferred tax liability existing at the beginning of the year has also been written back.

13. Prior period items:

All material items of Income / Expenditure pertaining to prior period are accounted separately. However Miscellaneous expenses includes prior period expenses of Rs. 2,95,603/-. Other operating revenue includes prior period income ofRs. 8,83,423/-.

14. Related PartyTransactions:

As per Accounting Standard-18 on "Related Party Disclosures", the transactions entered into with the related parties are disclosed below which were entered in the ordinary course of business:

(a) Names of the related parties with whom transactions were entered into during the year:

1. Companies under the same Management:

a) Tijaria Industries Limited

b) Tijaria International Limited

c) Tijaria Vinyl Private Limited

2. Key Management Personnel:

Mr. Alok Jain Tijaria - Managing Director

Mr. Vikas Jain Tijaria - Whole Time Director

Mr. Praveen Jain Tijaria - Whole Time Director

Mr. Vineet Jain Tijaria - Whole Time Director

3. Relatives to Key Management Personnel:

a) Mrs. Anu Jain Tijaria

b) Mrs. Purnima Jain Tijaria

c) Mrs. Reema Jain Tijaria

d) Mrs. Sonal Jain Tijaria

e) Mr. Ramesh Jain Tijaria

f) Mrs. Maya Jain

g) Mrs. Kunti Jain

15. The company has raised an amount of Rs. 60,00,24,420/- though IPO which was subscribed by the public between 27.09.2011 to 29.09.2011.

On receipt of such IPO proceeds company was under an obligation to utilize the proceeds as per prospectus filed before the SEBI. However, an enquiry is pending before the SEBI with regard to the utilization of funds which is still subjudice hence we have not commented upon the utilization of IPO proceeds.

Vide letter No. WTM/PS/ID2/146/Dec/2011 dated 28th December, 2011, SEBI has directed the company to (Deposit) the IPO proceeds to the tune of Rs. 45.40 Crores in a Escrow Account within a specified time limit within 7 (seven) days, which has not been done and as informed by the Management, the company is taking appropriate action on the matter.

16. The company has adopted the rate of Indian Rupees as 51.50 per Dollar as conversion rate which has been prescribed by the customs department vide Notification No. 26/2012 dated 28.03.2012 for the month of April, 2012, which in the opinion of the management was more appropriate to give a true and fair view. Further the rate prescribed by the customs department for the month of March, 2012, would have adverse effect as the 31.03.2012 is the last effective day of such rate and hence rate as on 01.04.2012 has been considered.

17. The company has received subsidy of Rs. 24,18,785/- (Previous Year Nil) from Sales Tax Department and sum of Rs. l,67,200/-(Previous Year Rs. 4,75,000/-) received from Agriculture & Processed Food Products Export Development Authority.

18. All the figures are rounded off to the nearest rupee.

Signature to Note 1 to 27 annexed to and forming part of the Balance Sheet as at 31st March, 2012 and the Statement of Profit and Loss for the year ended on that date.

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Mar 31, 2011

1. Contingent Liabilities:

The following contingent Liabilities have not provided for in respect of;

a. Letter of Credit for Rs. 9,13,59,194/- (Previous Year Rs 1,35.02,556/-).

b. Bank Guarantees for Rs. 5,86,87,179/- (Previous Year Rs. 4,67,64,725/-}.

c. Export Obligations Liability (excluding interest & penalty as may be imposed) in case of failure to meet export obligation within the specified time period under EPCG Scheme- Rs. 72,96,696 (Previous Year Rs. 29,92,476).

2. Instalments of Term Loan payable within one year are Rs.3,09,53,089/- {Previous Year Rs. 1,04,24,016/-).

3. The Company has acquired three pieces of industrial land situated at RlICO Industrial Area, Sitapura (Extn.), Ram Chandra Pura. Jaipur on Deferred Payment basis from RlICO. Out of these, Bank of India has issued Letter of Comfort to RlICO in respect of two plots (plot no. SP-1-2316 & F-2243) and created their equitable mortgage over the same In respect of the term loan sanctioned for the new project Apart from it, another plot No. SP-1-2315 is secured under lease agreement executed with RlICO. Therefore, the Deferred Payments of RlICO have been accordingly classified under Secured Loans.

4. The company has not received any intimation from its suppliers being registered under Micro, Small and Medium Enterprises Development Act, 2006. Hence, the disclosure relating to amount unpaid as at the year end together with interest paid/payable under this Act have not been disclosed separately.

5. Closing Stocks have been valued as per the Accounting Policies of the Company and includes Excise Duty, wherever applicable. There was no Process Stocks (W.I.P.) as on 31.3.2011.

6. In the opinion of the Directors, Loans & Advances, Sundry Debtors and other Current Assets, if realised in the ordinary course of business, have the value at which they are stated in the Balance Sheet.

7. The company has charged 1/5th of total preliminary expenses Rs. 1,37,352/- (Previous Year Rs. 1,37,352/-) during the year, The amortization of the same commenced w.e.f. the Financial Year 2006-07.

8. The company incurred pre-operative expenses amounting to Rs. 2,08,98,150/- (Previous Year Rs. 38,52,522/-) till the end of the current year for its expansion cum diversification project which is proposed to come up at RlICO Industrial Area, Sitapura, Jaipur The pre-operative expenses comprises of travelling expenses, salaries & consultancy charges. A legitimate part of the Directors remuneration has also been allocated under this head since Directors have devoted much time towards planning this project. Apart from it, bank charges, interest on term loan and other expenses which are attributable directly to project have also beep booked under this head. The Company will capitalise the same upon commencement of the project.

9. The Company has given advances for purchase of goods to certain suppliers and others towards expenses etc, which are in the general course of business and not in the nature of loans or advances attracting provisions of Section 2957372A of the Companies Act, 1956.

10. At the year-end, there were unsecured Loans aggregating to Rs. 1,74(45.559/'' were left unpaid in the books of the Company. The loans appearing during ithe year in the books were borrowed from shareholders, directors arid corporate bodies. These advances tftd not fSff within the meaning of the expression "Deposit" as defined in sale 3{B) of the Companies {Acceptance of Deposits) Rotes,. 1975.

11. Sales include trading sales of HOPE Pipes Rs. NIL (Previous Year Rs. 44,90,95,164/-) and Grapss Rs. 2,00,97,052/- (Previous Year Rs. 94,56.533/-). Purchase of raw raatenal includes tfading goods ''purchases of HOPE Pipes Rs. NIL (Previous Year Rs. 37,83,46,909/-) and Grapes (Including packing material) R8.47,09,097/- (Previous Year Rs. 2,29,03285/-).

12. The Company has a defined benefit gratuity plan. Every employee who has completed five years of more of service gets a gratuity on departure at 15 days last drawn salary for each completed year of service. The scheme is funded with LIC in the form of a qualifying insurance policy. Gratuity expense Rs. t, 19.162/- has been provided as per actuarial valuation made by the LIC under projected anil credit method.

(A) The Ministry of Corporate Affairs, Government of India vide notification no SO 301 E dated 8th February. 2011 has exempted to disclose quantitative details required under paras 3(i)(a) and 3{ii)(a) of Part II, Schedule VI to the Companies Act, 1956. The Board of Directors has passed necessary resolution in this regard and accordingly, the value of those goods which form less than 10% of the total value of turnover, consumption of raw material has not been shown separately

13. Aii the figures are rounded off to the nearest rupee.

14. Previous year''s figures have been rearranged and regrouped wherever practicable and considered necessary.

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Mar 31, 2010

1. Contingent Liabilities:

Contingent Liabilities not provided for in respect of:

(a) Letter of Credit for Rs. 13502556 (Previous Year Rs 14917069). (b) Bank Guarantees for Rs. 46764725 (Previous Year Rs. 60908710)

2. Installments of Term Loan payable within one year are Rs. 10424016 (Previous Year Rs. 9847912).

3. The company has not received any intimation from its suppliers being registered under Micro, Small and Medium Enterprises Development Act, 2006. Hence, the disclosure relating to amount unpaid as at the year end together with interest paid/payable under this Act have not been disclosed separately.

4. Closing Stocks have been valued as per the Accounting Policies of the Company and includes excise duty. There was no Process Stocks (WIP) as on 31.3.2010.

5. In the opinion of the Directors, Loans & Advances, Sundry Debtors and other Current Assets, if realised in the ordinary course of business, have the value at which they are stated in the Balance Sheet.

6. The company has charged 1/5th of total preliminary expenses Rs. 137352 (Previous Year Rs. 137352) during the year. The amortization of the same commenced from the Financial Year 2006-07.

7. The company incurred pre-operative expenses amounting to Rs. 3852522 (Previous Year Rs. Nil) during the current year for its expansion cum diversification project which is proposed to come up at RIICO Industrial Area, Sitapura, Jaipur. The pre-operative expenses comprises of travelling expenses, salaries & consultancy charges. A legitimate part of the Directors remuneration has also been allocated under this head since Directors have devoted much time towards planning of this project. The Company will capitalise the same upon commencement of the project.

8. The Company has given advances for purchase of goods to certain suppliers and others towards expenses etc., which are in the general course of business and not in the nature of loans or advances attracting provisions of Section 295/372A of the Companies Act, 1956.

9. As at the year end, there were no Unsecured Loans left unpaid in the books of the Company. The loans appearing during the year in the books were received from shareholders and were interest-free in nature. These advances did not fall within the meaning of the expression "Deposit" as defined in rule 3(B) of the Companies (Acceptance of Deposits) Rules, 1975.

10. Sales includes trading sales of HDPE Pipes Rs. 449095164 (Previous Year Rs. Nil) and Grapes Rs. 9456533 (Previous Year Rs. Nil).

Purchase of raw material includes trading goods purchases of HDPE Pipes Rs. 376346909 (Previous Year Rs. Nil) and Grapes Rs. 22903285 (Previous Year Rs. Nil).

11. In the opinion of the management provisions made by the company are adequate. The Company is in the process of valuing the gratuity liability by an actuarial. Hence, the liability as at 31st March, 10 cannot be quantified. However, looking to the various factors, management is of the view that it would not be a material liability.

12. Information regarding transactions with related parties as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India is given below:

1. Names of the related parties with whom transaction were carried out during the year and description of relationship:

(a) Tijaria Industries Limited Holding Company

(b) Tijaria International Limited Group company

(c) Tijaria Vinyl Private Limited Group company

2. Key management personnel:

(a) Mr. Alok Jain Tijaria - Director (b) Mr. Vikas jain Tijaria - Director

(c) Mr. Vineet Jain Tijaria - Director (d) Mr. Praveen Jain Tijaria- Director

3. Relative to key management personnel :

a) Anu Jain Tijaria (b) Purnima Jain Tijaria

c) Reema Jain Tijaria (d) Sonal Jain Tijaria

13. All the figures are rounded off to the nearest rupee.

14. Previous year''s figures have been rearranged and regrouped wherever practicable and considered necessary. Signature to Schedule 1 to 16 annexed to and forming part of the Balance Sheet as at 31st March, 2010 and the Profit and Loss Account for the year ended on that date.

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Mar 31, 2009

1. Sundry Debtors & Creditors:

In the absence of confirmation from the parties the Debit and Credit balances in regard to recoverable and payables have been taken as reflected in the books of the company. In the opinion of the Directors, Loans & Advances and Current Assets, if realised in the ordinary course of business, have the value at which they are stated in the Balance Sheet.

2. Preliminary Expenses:

The company incurred total preliminary expenses worth Rs. 4, 36,761/- during the Financial Year 2006-07 and Rs. 2,50,000/- during the Financial Year 2008-09 which are subject to amortization equally over a period of 5 years. The amortization of the same commenced from the Financial Year 2006-07 and accordingly Rs. 1,37,352/- have been amortised during the current year as well.

3. Advances:

The Company has given Advances for purchase of goods to certain suppliers and others towards expenses etc., which are in the general course of business and not in the nature of loans or advances attracting provisions of Section 295/370 of the Companies Act, 1956.

4. Unsecured Loans:

Unsecured Loans include the loans received from shareholders which are interest-free in nature. These advances do not fall within the meaning of the expression "Deposit" as defined in rule 3(B) of the Companies (Acceptance of Deposits) Rules, 1975.

4. Proposed Dividend:

During the year ending on 31st March, 2009, the company declared year-end, the company proposes dividend @ 15% of paid-up share capital i.e. 15% of Rs. 1,23,15,402/-. The provision for same worth Rs. 1,23,15,402/-and corporate dividend tax worth Rs. 20,93,003/- has been made in the books of accounts of the company.

5. Bonus:

During the year under review bonus is not required to be provided.

6. Contingent Liabilities:

Contingent Liabilities not provided for – Towards Letter of Credit- Rs. 1,49,17,069/-.

7. Provisions:

The provisions made by the company are adequate. The Company has made provision for Income Tax and Fringe Benefit Tax in view of the provisions of the Income Tax Act, 1961.

8. All the figures are rounded off to the nearest rupee.

9. Additional information pursuant to Part II of Schedule VI of the Companies Act, 1956. (A) Particulars of Capacity:

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Mar 31, 2008

1. Sundry Debtors & Creditors:

In the absence of confirmation from the parties the Debit and Credit balances in regard to recoverable and payables have been taken as reflected in the books of the company. In the opinion of the Directors, Loans & Advances and Current Assets, if realised in the ordinary course of business, have the value at which they are stated in the Balance Sheet.

2. Preliminary Expenses:

The company incurred total preliminary expenses worth Rs. 4, 36,761/- during the Financial Year 2006-07 which are subject to amortization equally over a period of 5 years. The amortization of the same commenced from the Financial Year 2006-07 and accordingly Rs. 87,352/- have been amortised during the current year as well.

3. Advances:

The Company has given Advances for purchase of goods to certain suppliers and others towards expenses etc., which are in the general course of business and not in the nature of loans or advances attracting provisions of Section 295/370 of the Companies Act, 1956.

4. Unsecured Loans:

Unsecured Loans include the loans received from shareholders which are interest-free in nature. These advances do not fall within the meaning of the expression "Deposit" as defined in rule 3(B) of the Companies (Acceptance of Deposits) Rules, 1975.

5. Proposed Dividend:

During the year ending on 31st March, 2008, the company declared an interim dividend @ 7% of paid- up share capital aggregating to Rs. 28,73,594/-. At the year-end as well, the company proposes dividend @ 8% of paid-up share capital i.e. 8% of Rs. 4,10,51,340/-. The provision for same worth Rs. 32,84,107/-and corporate dividend tax worth Rs. 5,58,134/- has been made in the books of accounts of the company.

6. Provisions:

The provisions made by the company are adequate. The Company has made provision for Income Tax and Fringe Benefit Tax in view of the provisions of the Income Tax Act, 1961.

7. All the figures are rounded off to the nearest rupee.