Tijaria Polypipes’ record is not a going concern in any ordinary sense: revenue has collapsed to zero, the entire bank borrowing of ₹72.83 crore is in default, and the auditor has issued a structurally contradictory report for four years running. The company is now a web of related-party transactions with a leased-out plant, an active insolvency petition, and a statutory auditor who resigned weeks into a five-year term.
Key findings
- The auditor’s report is structurally contradictory and disclaims evidence for core assets
Critical- For four consecutive years the auditor has labelled the report an unqualified opinion while simultaneously listing a “Basis for Disclaimer of Opinion”, a section that precludes an opinion, without stating a final conclusion. In FY2025-26 the auditor could not confirm the existence or recoverability of ₹2,514 Lacs of receivables and advances, could not verify fixed assets because management conducted no physical verification, and could not obtain evidence that the closed textile division’s ₹83.98 Crores of gross assets will ever resume production. - Bank of India loan is NPA and interest accrual was stopped
Major- Total borrowings stood at ₹72.83 crore as at 31 March 2026, with a negative debt-to-equity ratio of -2.16x and interest coverage of -1.63x. Bank of India declared the account an NPA on 30 June 2022 with effect from 27 November 2020, and management stopped making interest provision on that NPA-declared loan account from 1 July 2022. The bank forfeited and sold promoter shares worth ₹4.74 crore, while ₹4.25 crore of loans from directors carry no interest provision in the profit and loss account. - An active insolvency petition and unresolved tax disputes threaten the company’s survival
Major- Bank of India filed a Section 7 IBC petition on 11 December 2023 before NCLT Jaipur for a financial debt of ₹79.97 crore. The Rajasthan High Court granted an interim stay on 10 October 2025, and the company has offered a One-Time Settlement of ₹53.67 crore, which the bank has not accepted against its demand of at least ₹62 crore. Disputed tax, excise, GST, sales tax and electricity duty demands totalling ₹4.70 crore remain pending before appellate authorities with no provision made. - Revenue collapsed to zero while ₹20.97 crore of customer advances sit unchanged for two years
Major- Revenue from operations was nil in both FY2025-26 and FY2024-25, down from ₹62.46 crore in FY2020-21. Advances from customers remained frozen at ₹20,975.45 thousand as at 31 March 2026, unchanged from the prior year. The auditor could not confirm the recoverability or existence of ₹2,332 lacs in outstanding receivables and supplier advances as at 31 March 2025. - A decade of regulatory actions spans SEBI penalties, SARFAESI proceedings, and a forensic audit
Major- SEBI imposed penalties of ₹2,00,000 each on the four promoter-directors on 9 March 2021 for IPO violations. Stock exchanges fined the company ₹1,82,900 each to BSE and NSE on 30 June 2023 for non-submission of audit impact disclosures. Bank of India ordered a forensic audit on 11 October 2022 to examine fraud, siphoning or diversion of funds. The directors continued operating company payments through personal bank accounts during FY2025 and FY2026, which the company acknowledges violates Section 269SS of the Income Tax Act. - Four promoter brothers control the board while three independent directors resigned together
Major- Alok, Vikas, Praveen and Vineet Jain Tijaria, four brothers, held all executive director positions from FY2020 through FY2026 and have drawn no remuneration since August 2022. Bank of India acquired their pledged shares on 18 July 2022, and promoter shareholding fell from 65.07% in February 2021 to 36.14% in FY2026. On 30 June 2025, three independent directors resigned simultaneously. - The statutory auditor resigned abruptly weeks into a freshly approved five-year term
Major- M/s Amit Ramakant & Co. were re-appointed for a five-year term at the AGM on 18 June 2025 and resigned effective 20 June 2026 with no material reason disclosed. The audit fee had remained unchanged at ₹1,00,000 per annum since at least FY2020-21.
What to watch
- OTS outcome. The One-Time Settlement proposal submitted to Bank of India on 30 March 2026 proposed instalments over 180 days from sanction.
- Forensic audit. Bank of India’s forensic audit, assigned on 11 October 2022, had no disclosed outcome as of the FY2025-26 Annual Report.
- Auditor resignation. The resignation letter from Amit Ramakant & Co., effective 20 June 2026, was disclosed as Annexure II to the 20 June 2026 announcement.
- Personal-account payments. Directors continued operating company receipts and payments through personal bank accounts in FY2025-26, a violation of Section 269SS of the Income Tax Act.
Bottom line: This is a company whose audit report is structurally broken, whose revenue is zero, and whose entire bank debt is in default under a contested settlement. The risk is not hidden in the footnotes, it is in the headline: the auditor cannot confirm the assets exist, the plant is leased to a promoter relative, and the statutory auditor walked out weeks into a new term. Watch the NCLT hearing, the OTS outcome, and whether the forensic audit findings ever surface.