Tijaria Polypipes Limited auditor disclaims September conclusion

Tijaria Polypipes Limited’s auditor disclaimed a conclusion on its September 30, 2026 standalone results because it could not obtain sufficient appropriate evidence on NPA-linked borrowing, Rs 25.552 crore of receivables and supplier advances, bank balances and recoverability matters. The filing reported a quarterly loss of Rs 30.97 lakh and no revenue from operations.

Why did Tijaria Polypipes’ auditor disclaim a conclusion?

Tijaria Polypipes’ auditor disclaimed a conclusion because the matters identified were significant enough that Pramod & Associates said it could not obtain sufficient appropriate evidence to conclude whether the unaudited standalone results complied with Ind AS 34, the interim financial reporting standard, and disclosure requirements. The limited-review report, dated November 4, 2026, covers the quarter ended September 30, 2026 and the six months from April 1 to September 30, 2026.

A limited review provides moderate assurance and is narrower than a full audit, the auditor said, being based mainly on enquiries and analytical procedures. In this case, the disclaimer followed specific evidence gaps rather than a quantified restatement. The report also contained an other-matter paragraph saying nothing had come to the auditor’s attention to indicate the statement failed to disclose required information or contained a material misstatement; that statement sits alongside, rather than replaces, the express disclaimer of conclusion.

What is the Bank of India NPA and NCLT position?

Tijaria Polypipes’ Bank of India loan account was classified as a non-performing asset, or NPA, on June 30, 2022, effective November 27, 2020, with a stated loan balance of Rs 71.1627 crore and bank guarantees of Rs 57 lakh, aggregating Rs 71.7327 crore. Management has decided not to provide interest on the NPA loan account from July 1, 2022, according to the auditor’s basis for disclaimer.

The filing says Bank of India exercised powers under Section 13(8) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, to forfeit promoters’, directors’ and relatives’ equity-share investments worth Rs 5.4027 crore. Bank of India sold 71,69,116 forfeited shares for Rs 4.6527031 crore in financial year 2023-24, at Rs 6.49 per share, after selling 14,17,858 shares for Rs 76.33435 lakh in 2022-23 at Rs 5.38 per share. The sale proceeds were credited against the loan balance.

Bank of India also forfeited a fixed deposit, including interest, of Rs 66.54979 lakh in the quarter ended June 30, 2026 and credited it against the outstanding loan, the filing says. Separately, the bank has filed CP No. (IB)-54/7/JPR/2023 against Tijaria Polypipes at the National Company Law Tribunal, or NCLT, Jaipur Bench. The report records the bank’s counsel as saying that no one-time settlement, or OTS, proposal was under consideration, while company counsel referred to communication on valuation of mortgaged property; the disclosed next-hearing date was September 2, 2026.

Which balances could not be independently confirmed?

The largest evidence issue cited by the auditor was Rs 25.552 crore of receivables and advances to suppliers as of September 30, 2026, for which independent confirmations were not received for the majority of outstanding loans and advances. Tijaria Polypipes had not accrued interest on those balances, and the auditor said it could not comment on their existence or recoverability without sufficient evidence.

The September 30 balance sheet separately reported trade receivables of Rs 25.2195 crore, loans and advances of Rs 39.42 lakh, and other current assets of Rs 2.5904 crore. Trade receivables rose from Rs 25.1435 crore at March 31, 2026 to Rs 25.2195 crore at September 30, 2026. The auditor also said some trade receivable and trade payable balances remained subject to counterparty confirmation and any resulting reconciliation or adjustment.

External confirmations sought for bank balances at September 30, 2026 had not been received, the auditor said, citing Standard on Auditing 505 on external confirmation. The report further noted that directors continued to make payments and receive money on behalf of Tijaria Polypipes through their own bank accounts during the period because the company’s accounts had been declared NPA and seized. The auditor described this practice as a violation of Section 185 of the Income Tax Act, 2025.

What did the September-quarter financial results show?

Tijaria Polypipes reported no revenue from operations in the September 2026 quarter, while other income was Rs 3.30 lakh, down from Rs 5.29 lakh in the June 2026 quarter and Rs 10.06 lakh a year earlier. The company recorded a net loss of Rs 30.97 lakh, compared with a loss of Rs 36.11 lakh in the preceding quarter and Rs 39.60 lakh in the September 2025 quarter.

For the six months ended September 30, 2026, the loss was Rs 67.08 lakh, versus Rs 66.22 lakh in the corresponding prior-year period. Finance cost rose to Rs 28.95 lakh from Rs 20.06 lakh, while depreciation declined to Rs 34.33 lakh from Rs 38.19 lakh. Pipe-segment loss before interest and tax narrowed to Rs 13.98 lakh from Rs 19.45 lakh, and textile-segment loss narrowed to Rs 24.14 lakh from Rs 26.72 lakh.

What further accounting and operating issues did the auditor flag?

Tijaria Polypipes’ auditor flagged a Rs 29.82 lakh land-and-building asset at Daulatpura, Jaipur that has been classified as held for sale for a long time, but for which management did not provide a future execution plan. The auditor referred to Ind AS 105 requirements that an asset be available for immediate sale and that a sale be highly probable with management committed to a plan.

The report also identified a gross tax asset of Rs 26.34 lakh for which Tijaria Polypipes had not provided assessment, refund or appeal status, leaving the auditor unable to comment on recoverability or any required provision. Income tax, including deferred tax, had not been determined or provided for the financial year. The company additionally carried Rs 44 lakh of director loans classified as short-term borrowings without interest provision, while it obtained Rs 5 crore from directors in 2024-25 to deposit with Bank of India for an OTS under a February 12, 2025 board resolution.

There was no production during the September 2026 quarter, although certain plant and machinery were rented to related party Vasa Industries under a special resolution passed at the September 29, 2021 annual general meeting. The textile segment has been closed for a long time; its gross assets stood at Rs 83.98 crore and net block at Rs 11.92 crore after plant-and-machinery impairment. The auditor said it lacked sufficient evidence on whether production in the yarn division could resume.

Conclusion

The September filing combines a limited-review disclaimer with zero operating revenue, a Rs 30.97 lakh quarterly loss and evidence limitations across borrowing, receivables, bank balances, tax assets and assets held for sale. The Bank of India NPA exposure of Rs 71.7327 crore and the NCLT case are central to the uncertainty, while the company’s negative total equity of Rs 34.4604 crore at September 30, 2026 provides further context for the reported balance-sheet position.

The next disclosures to watch are any update from Tijaria Polypipes or Bank of India on the NCLT proceeding, mortgaged-property valuation or an OTS proposal, since the filing says the bank had no OTS under consideration during the reported proceedings. Investors can also monitor whether management provides independent confirmations for the Rs 25.552 crore receivables and supplier advances, a plan for the Rs 29.82 lakh held-for-sale property, and physical verification of inventory at the financial year-end.