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Texmo Pipes & Products Ltd.

BSE: 533164 Sector: Industrials
NSE: TEXMOPIPES ISIN Code: INE141K01013
BSE 00:00 | 26 Feb 13.40 -0.05
(-0.37%)
OPEN

13.30

HIGH

13.40

LOW

13.10

NSE 00:00 | 26 Feb 13.40 -0.05
(-0.37%)
OPEN

13.70

HIGH

13.70

LOW

13.20

OPEN 13.30
PREVIOUS CLOSE 13.45
VOLUME 2401
52-Week high 22.85
52-Week low 12.21
P/E 6.73
Mkt Cap.(Rs cr) 35
Buy Price 13.10
Buy Qty 500.00
Sell Price 14.95
Sell Qty 500.00
OPEN 13.30
CLOSE 13.45
VOLUME 2401
52-Week high 22.85
52-Week low 12.21
P/E 6.73
Mkt Cap.(Rs cr) 35
Buy Price 13.10
Buy Qty 500.00
Sell Price 14.95
Sell Qty 500.00

Texmo Pipes & Products Ltd. (TEXMOPIPES) - Auditors Report

Company auditors report

To

The Members

TEXMO PIPES AND PRODUCTS LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone Financial Statements of TEXMO PIPES ANDPRODUCTS LIMITED ("the Company") which comprises the Balance Sheet as atMarch 31 st 2019 the Statement of Profit and Loss the Statement of Changes in Equityand the Statement of Cash Flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as ‘standalone Ind AS financial statements').

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Financial Statements give the information requiredby the Companies Act 2013 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2019 and its Profit Changes in Equity and itsCash Flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on thestandalone Ind AS financial statements.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Financial Statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

Report on Other Legal and Regulatory Requirements

1. 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 ofthe Act we give in the "Annexure-A" a statement on the matters specified inparagraph 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account;

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors as on March31 st 2019 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 st 2019 from being appointed as a director in terms ofSection 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure-B"; and

(g) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements Refer Note-37 to the financial statements.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Anil Kamal Garg & Company
Place : Indore Chartered Accountants
Dated : May 21st 2019 ICAI Firm Reg. No. : 004186C
(Devendra Bansal)
Partner
Membership No. : 078057

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

Referred to in Paragraph 1 of the Independent Auditors' Report of even date to themembers of Texmo Pipes and Products Limited on the standalone Ind AS financial statementsas of and for the year ended March 31 st 2019 we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets (property plant & equipment) andintangible assets.

(b) As explained to us all the Property Plant & Equipment have been physicallyverified by the management in a phased periodical manner which in our opinion isreasonable having regard to the size of the Company and the nature of its assets.According to the information and explanations given to us no material discrepancies werenoticed on such physical verification.

(c) According to the information and explanations given to us by the management and onthe basis of our examination of the records of the Company the title deeds of immovableproperties recorded in the books of accounts of the Company are held in the name of theCompany.

(ii) The inventory has been physically verified by the Management during the year. Inour opinion the frequency of such verification is reasonable and adequate in relation tothe size of the Company and the nature of its business. The discrepancies noticed onphysical verification of inventory as compared to books and records were not material andhave been appropriately dealt with in the books of accounts.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the Register maintained underSection 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given to us theprovisions of section 185 and 186 of the Companies Act 2013 in respect of loans andadvances to entities in which the directors are interested have been complied with by theCompany. The Company has not granted any guarantee or security in terms of section 185 and186 of the Companies Act 2013.

(v) According to the information and explanations given to us the Company has notaccepted any deposits from the public within the meaning of Sections 73 to 76 of the Actand the rules framed there under.

(vi) Pursuant to the rules made by the Central Government of India the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.

(vii) (a) According to the information and explanations given to us and on the basis ofexamination of the records of the Company in our opinion the Company is generallyregular in depositing the undisputed statutory dues including provident fund employees'state insurance income tax sales tax service tax duty of customs duty of excisevalue added tax goods and services taxes cess and other statutory dues applicable to itwith the appropriate authorities.

According to the information and explanations given to us no undisputed amount payablein respect of aforesaid dues were in arrears as on March 31 st 2019 for a period morethan six months from the date they became payable except Excise Duty amounting toRs.158.56 Lakhs which is payable due to reversal of CENVAT Credit on the Lost Goods. Ithas been informed to us that the outstanding amount of Rs. 158.65 Lakhs will be paid bythe company as and when the insurance claim against the goods lost will be received by it.

(b) According to the information and explanations given to us there are no materialdues of income tax sales tax service tax duty of customs goods and services taxexcise duty entry tax and cess which have not been deposited with the appropriateauthorities on account of any dispute except for the following:

(Amount in Rs. Lakh)

Name of the Statute Nature of Dues Amount Amount Deposited Period to which the amount relates (F.Y.) Forum where the dispute is pending
Income Tax Act 1961 Income Tax 32.10 32.09 2009-10 Income Tax Appellate Tribunal Indore
42.75 42.75 2010-11 Income Tax Appellate Tribunal Indore
29.90 6.00 2010-11 Commissioner of Income Tax Appeals Indore
84.97 17.00 2011-12 Commissioner of Income Tax Appeals Indore
60.31 12.10 2012-13 Commissioner of Income Tax Appeals Indore
154.51 31.00 2013-14 Commissioner of Income Tax Appeals Indore
198.18 40.00 2015-16 Commissioner of Income Tax Appeals Indore
655.23 133.65 2016-17 Commissioner of Income Tax Appeals Indore
Madhya Pradesh Value Added Tax2002 Value Added Tax 119.78 5.99 2007-08 Hon'ble High Court of Madhya Pradesh Jabalpur
62.89 29.87 2010-11 M.P. Commercial Tax Appellate Board
6.70 - 2011-12 M.P. Commercial Tax Appellate Board
17.86 7.11 2014-15 M.P. Commercial Tax Appellate Board
24.25 6.06 2010-11 Additional Commissioner of Commercial Tax Indore
13.14 3.29 2015-16 Additional Commissioner of Commercial Tax Indore
39.94 9.99 2016-17 Additional Commissioner of Commercial Tax Indore
18.53 - 2010-11 Additional Commissioner of Commercial Tax Indore
Central Sales Tax Act 1956 Central Sales Tax 47.32 2.37 2007-08 Hon'ble High Court of Madhya Pradesh Jabalpur
Central Excise Act 1944 Excise Duty 34.15 - 2016-17 Custom Excise and Service Tax Appellate Tribunal
Entry Tax Act 1976 Entry Tax 38.23 1.91 2007-08 Hon'ble High Court of Madhya Pradesh Jabalpur
21.55 8.62 2008-09 M.P. Commercial Tax Appellate Board
17.46 6.99 2014-15 M.P. Commercial Tax Appellate Board

(viii) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of loans or borrowingto any financial institution or bank. There is no borrowing from the Government and thereare no debenture holders.

(ix) In our opinion and according to the information and explanations given to us theCompany had not raised money by way of further public offer (including debt instruments)during the year and the term loans taken by the Company have been applied for the purposefor which they were raised.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the Company or any fraud on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such instance by theManagement.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of Section197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the paragraph 3(xii) of the Order is notapplicable to the Company.

(xiii) In our opinion and according to the information and explanations given to usall transactions with related parties are in compliance with section 177 and 188 of theAct and the details as required by the applicable accounting standards have beendisclosed in the standalone Ind AS financial statements.

(xiv) According to the information and explanations given to us the Company has madepreferential allotment of shares during the year under review. Accordingly we report thatthe requirements of Section 42 of the Companies Act 2013 as applicable have beenomplied with and the amounts raised have been applied by the Company during the year forthe purposes for which the funds were raised.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with themduring the year. Accordingly paragraph 3(xv) of the Order is not applicable to theCompany.

(xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934.

For Anil Kamal Garg & Company
Chartered Accountants
ICAI Firm Reg. No. : 004186C
(Devendra Bansal)
Place : Indore Partner
Dated : May 21st 2019 Membership No. : 078057

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

Referred to in Paragraph 2(f) of the Independent Auditors' Report of even date to themembers of Texmo Pipes and Products Limited on the standalone Ind AS financial statementsas of and for the year ended March 31st 2019

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of TEXMOPIPES AND PRODUCTS LIMITED ("the Company") as of 31st March 2019 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany'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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Anil Kamal Garg & Company
Chartered Accountants
ICAI Firm Reg. No. : 004186C
(Devendra Bansal)
Place : Indore Partner
Dated : May 21st 2019 Membership No. : 078057