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Union Quality Plastics Ltd.

BSE: 526799 Sector: Industrials
NSE: N.A. ISIN Code: INE338N01019
BSE LIVE 12:03 | 12 Dec 41.30 -0.35
(-0.84%)
OPEN

41.30

HIGH

41.30

LOW

41.30

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 41.30
PREVIOUS CLOSE 41.65
VOLUME 500
52-Week high 59.75
52-Week low 25.45
P/E
Mkt Cap.(Rs cr) 20
Buy Price 0.00
Buy Qty 0.00
Sell Price 41.30
Sell Qty 1.00
OPEN 41.30
CLOSE 41.65
VOLUME 500
52-Week high 59.75
52-Week low 25.45
P/E
Mkt Cap.(Rs cr) 20
Buy Price 0.00
Buy Qty 0.00
Sell Price 41.30
Sell Qty 1.00

Union Quality Plastics Ltd. (UNIONQUALPLA) - Auditors Report

Company auditors report

To the Members of UNION QUALITY PLASTICS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying financial statements of M/s. UNION QUALITY PLASTICSLIMITED ("the Company") which comprise the Balance Sheet as at March 312015 the Statement of Profit and Loss and Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.

Management's Responsibilities for the Financial Statements

The management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ('the act') with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance and cash flow of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We have conducted our audit in accordance with the Standards on Auditing specifiedunder Section 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofthe Company's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2015 and its profit/loss and its cash flow for the year ended on that date.

Emphasis of Matter

We draw attention to

a) Note No. 24 (B) 14 to the financial statements which describes that the Balance ofDebtors Creditors Loans & Advances and Investments are subject to confirmation andreconciliation if any. Hence the effect thereof on Profit/ Loss Assets andLiabilities if any is not ascertainable.

b) Note No. 3 (A) (sub note 1 & 2) read with Note No 24 (B) 13 (v) to the financialstatements regarding the classification of loans taken from Ambient Media Pvt. Ltd in theFinancial Statements as Secured Long Term Borrowings for the Loans repayable on demand.

Report on other Legal and Regulatory Requirement

As required by the Companies (Auditor's Report) Order 2015 ("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 statement on the matters Specified in paragraphs 3 and4 of the Order.

As required by section 143(3) of the Act we further 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 appears from our examination of those books;

c) the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d) in our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014; subject to the non compliance by the company of theAccounting Standard 15 relating to non provision of leave salary which is being accountingby the company on cash basis instead of accrual basis (liability quantum not ascertained)and provision for gratuity is not made on actuarial basis.

e) on the basis of written representations received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164(2) of theAct.

f) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:

I. The Company does not have any pending litigations which would impact its financialposition.

II. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise

III. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise

For PAREKH SHAH & LODHA
Chartered Accountants
Ravindra Chaturvedi
Place : Mumbai (Partner)
Date : 26th August 2015 M. No. 048350

ANNEXURE TO AUDITORS' REPORT

[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'in the Independent Auditors Report of even date]

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

1. In respect of its fixed assets

a) The Company is in the process of updating of Fixed Asset Register to show fullparticulars including details and situation of fixed assets;

b) As explained to us fixed assets have been physically verified by the management atregular intervals; as informed to us no material discrepancies were noticed on suchverification;

2. In respect of its inventories

a) In our opinion the management has conducted verification of its inventory atreasonable intervals in relation to the size of the company and the nature of itsbusiness.

b) The procedures of verification of Inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

c) The Company is maintaining proper records of inventory. And no discrepancies arenoticed on verification between the physical stocks and book records.

3. In respect of loans secured or unsecured granted by the Company to companiesfirms or other parties covered in the register maintained under section 189 of theCompanies Act 2013:

a) The company has granted loan to one party listed in the aforesaid register duringthe year.

b) According to the information and explanations given to us the loans given by thecompany has been fully repaid during the year.

c) There is no overdue amount of more than Rs. one lacs in respect of loans to theparties covered in the above register.

4. In our opinion and according to the information and explanations given to us thereis adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventory and fixed assets and sale of goodsand services. Further on the basis of our examination of the books and records of thecompany carried out in accordance with the auditing standards generally accepted in Indiaand according to the information and explanations given to us we have neither come acrossnor have we been informed of any continuing failure to correct weaknesses in the aforesaidinternal control system.

5. The Company has not accepted any deposits from the public covered under Section 73to 76 of the Companies Act 2013. Hence the clause 3(v) of the Order is not applicable.

6. The Cost Records required to be maintained under Companies (Cost Accounts Records)Rules 2011 have been maintained by the company during the year. We have however not madea detailed examination of the cost records with a view to determine whether they areaccurate or complete.

7. In respect of Statutory Dues:

a) According to the information and explanations given to us and based on the recordsof the company examined by us the company is irregular in depositing the undisputedstatutory dues including Provident Fund Employees' State Insurance Income-taxSales-tax Wealth Tax Service Tax Custom Duty Excise Duty and other material statutorydues as applicable with the appropriate authorities in India ; According to theinformation made available to us no undisputed arrears of statutory dues are outstandingas at 31st March 2015 for more than six months from the date when they became except forProfessional Tax liability of Rs. 177510/-

b) According to the information and explanations given to us there are no amounts inrespect of Sales Tax Custom duty Wealth tax Excise duty and Cess that have not beendeposited with the appropriate authorities on account of any dispute except for some duesas mentioned below:-

Demand of Duties (Rs. In Lacs) Nature of Dues Status
Rs. 2.67 TDS Default in TDS deposit & Late filing fees as per 26AS. The matter is pending with A.O.
Rs. 26.02 Excise Duty Demand Notice was issued on 15.01.1997.The matter is pending with larger bench of Custom Excise & Service tax tribunal Ahmadabad.
Rs. 47.96 Excise Duty Demand Notice was issued on 10.03.2008. The matter is in appeal with the Custom Excise & Service tax tribunal Ahmadabad. (CESTAT)
Rs. 7.20 Excise Duty Notice was issued by commissioner of Custom & Excise on 30.11. 2012. Final order was passed on June 2013. The company has file appeal in the Custom Excise & Service tax tribunal Ahmadabad. (CESTAT)
Rs. 79.56 Excise Duty In the continuation of Excise raid on 25.01.2011 Show cause notice was issued by the commissioner on 14.05.2013. The same was matter of Appeal with the Appellate tribunal Ahmadabad. (CESTAT)
Rs. 57.84 Provident Fund PF commissioner has issued notice of demand of Rs. 57.84 lacs (Rs. 44.61 lacs for penalty and Rs. 13.23 lacs for interest). The company has paid Rs.15 lacs upfront and appeal into Appellate Tribunal Delhi in 2007. In May 2011 matter disposed off in favor of the company and restricts the order up to interest only. The department has challenged the decision in 'Honorable High Court' and the same was dismissed by Single Judge Bench on 27.03.2012. Department further filed an appeal with Divisional Bench and the said bench was asked for condonation of delay in filing the appeal by PF department.

c) There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question ofreporting delay in transferring such sums does not arise.

8. The Company has accumulated losses of Rs. 212756397/- as on 31st March 2015 (P.Y.Rs. 170833364/-). The company has incurred cash loss of Rs 35455713/- during thefinancial year (Nil during the immediately preceding financial year).

9. In our opinion and according to the information and explanations given to us thecompany has not defaulted in the repayment of any dues from any financial institution orbanks and has not issued debentures.

10. In our opinion and according to the information and explanations given to us theCompany has not given any guarantee for loan taken by others from a bank or financialinstitution during the year.

11. In our opinion and according to the information and explanations given to us thecompany has not raised any term loans from a bank or financial institution during theyear.

12. During the course of our examination of the books and records of the companycarried in accordance with the auditing standards generally accepted in India we haveneither come across any instance of fraud on or by the Company noticed or reported duringthe course of our audit nor have we been informed of any such instance by the Management.

For PAREKH SHAH & LODHA
Chartered Accountants
Ravindra Chaturvedi
Place : Mumbai (Partner)
Date : 26th August 2015 M. No. 048350