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Notes to Accounts of Union Quality Plastics Ltd.

Mar 31, 2015

1. There are Nil ( Previous year - Nil) rights, preference and restriction attaching to each class of shares including restriction on the distribution of dividend and the repayment of capital.

2. There are nil number of shares ( Previous year Nil) in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiary or associates of the holding company or the ultimate holding company in aggregate.

3. Shares in the company held by each shareholders holding more than 5% shares, as on 31.03.2015:

4. There are nil number of shares ( Previous year Nil) reserved for issue under option and contracts /commitment for the sale of shares/disinvetment including the terms and amounts.

5. For the period of five years immediately preceding the date as at which the balance sheet is prepared

6. There are no securities issued which are convertible into equity/preference shares.

7. There are 15630 Calls unpaid (previous year 15630) of Rs 10/- each.Calls unpaid by directors & officers of the company as on Balance Sheet date are Nil.(previous year Nil).

8. There is no forfeiture of the shares of any class during the Financial Year (Previous Year -Nil).

(Working Capital facility from City Co-op Bank is secured by first charge on stock of raw materials, finished goods, work in progress and book debts of the company along with the personal sureity & security given by the directors of the company. Further the said working facility are repayable on demand and carries interest rates at 15% p. a. on monthly rest)

9. Impairment of Assets

The Company has carried out Impairment test on its fixed assets as on the date of Balance Sheet and the management is of the opinion that there is no asset for which provision for impairment is required to be made as per Accounting Standard - 28 on Impairment of Assets.

10. Contingent Liabilities:

a) Performance Bank Guarantee issued by Oriental Bank of Commerce of Rs. 46,00,000/- .

(Fixed deposits of Rs 10.75 lacs (in the name of the company) has been given to the bankers as a margin for issuing the above guarantees, along with personal guarantee and pledge of personal assets of the Directors)

b) 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.

11. No provision has been made in accounts for gratuity and other retirement benefits accruing to employees which is not in accordance with the Accounting Standard 15 and accounting policy of the company

12. Accounting standard (AS-19) Lease Transaction Disclosures

The company had entered into an agreement in the nature of lease agreements for the purpose of Lease of Factory premises and Car. This is generally in the nature of operating lease and disclosure required as per Accounting Standard 19 with regard to the above is as under:

Assets acquired on Lease / Leave and Office Premises, Factory Premises, License Guest House and Vehicles.

Period of Lease / Leave and License Varying between 2 years to 5 years

Minimum Lease payments debited to Rs. 32,91,817/- (P.Y. of Rs. 25,03,700/-) (Including Car lease payment; Factory Rent, Branch Office Rent Guest House Rent.)

The Company has only one business and geographical Segment viz. HDPE Tarpaulene and related products in India. Other business activities, including installation of pond, etc, during the year, does not qualify as the reporting segment in terms ofAS-17. Hence no further disclosures are required to be made as per AS-17 on segment reporting.

13. Related Parties Disclosures

(I). Names of related parties

Names of related parties where control exists irrespective of whether transactions have occurred or not

Nil

Names of other related parties with whom transactions have taken place during the year

Nil

Associates

Nil

Key Management Personnel

1. Mr. Zuzar A. Kathawala (Managing Director)

Relatives of key management personnel

1. Mr. Imtiaz A. Kathawala

2. Yunus Kathawala

3. Salim Kathawala

4. A. G. Kathawala

5. Qusai Kathawala

6. Naamah Kathawala

Enterprises owned or significantly influenced by key management personnel or their relatives

1. Ambient Media Solutions Pvt. Ltd.

2. Kathawala Realtors LLP

* Amount written off or written back in respect of debts due from or to related parties is "NIL".

** Figures for the previous year have been shown in the brackets.

*** Related party relationship is as identified by the management and relied upon by the auditor.

14. Segment Reporting

The Company has only one business and geographical Segment viz. HDPE Tarpaulene and related products in India. Other business activities, including installation of pond, etc, during the year, does not qualify as the reporting segment in terms ofAS-17. Hence no further disclosures are required to be made as per AS-17 on segment reporting.

15. Provision for Taxation

a) Current Tax: The company has made a appropriate provision for taxation for the year under the provision of the Income Tax Act, 1961

16. In the opinion of the Board, the assets (other than Fixed Assets and Non Current Investments) are approximately of the value stated, if realized in the ordinary course of business. The provisions for liabilities are considered to be adequate by the Board

I) In term of notification GSR (129E) dated. 22.02.99 issued by the department of the company affairs, the company is required to furnish the details of outstanding to SSI undertaking under the head "Current Liabilities & Provision" of amount more than one lacs and for the period of more than 45 days the company has requested to vendor to furnish requisite information along with their SSI registration balance sheet, therefore the company is unable to furnish the particulars.

II) Income Tax assessments of the Company have been completed till the assessment year 2011 - 2012 U/S 143 (1) (a).

III) Provision has not been made for Bonus Payable in the current year.

IV) The company has pledged the shares with Bank against loan in the year 1997 which were held and owned by the Directors Mr. A. G. Kathawala, Mr. Z. A. Kathawala and Mrs. D. Z. Kathawala and their relative Mrs. M. A. Kathawala, having market value at the time around Rs. 10.00 Lacs to secure the company's liabilities for payment of long outstanding collection bill dated 17.07.1990 for USD 29025/- (Rupees 7.42 Lacs).

We are given to understand that though the shares were pledged for a particular transaction and upto a limit of Rs. 10 Lacs only, in the year January 2000 the bank exercised their right to invoke the pledge without giving notice to the pledger and without restricting the sale to the extent of Rs. 10 Lacs only, and accordingly sold the shares for Rs. 2,88,50,988/- and credited the proceeds to the companies account. The amount credited by the bank is shown under the group of unsecured loans from related party under Note No 4 (SHORT-TERM BORROWINGS) of the Financial Statements.

V) As per the information available, the loan from Ambient Media Pvt. Ltd. for Rs. 1294.23 lacs (as mentioned in Note No. 3 of the Financial Statements) is representing a loan acquired by M/s Ambient Media Solutions Private Limited (AMSPL, Group Company) from Assets Reconstruction Company India Ltd.

During the earlier financial years, the company has paid a sum of Rs. 253.87 lacs to AMSPL as a part of settlement of loan (as mentioned in Note 15 to Balance Sheet), subject to final settlement. However during the current Financial Year, due to failure of the settlement proposal, the said amount was recovered back by the company from AMSPL. However the company is still trying to negotiate with the AMSPL for settlement of the loan.

17. The financial statements which describes that the Balance of Debtors, Creditors, Loans & Advances and Investments are subject to confirmation and reconciliation, if any. Hence, the effect thereof, on Profit/ Loss, Assets and Liabilities, if any, is not ascertainable.

18. No forward exchange contracts are outstanding on the balance sheet date which is entered to hedge foreign exchange exposures of the Company.


Mar 31, 2014

1. Impairment of Assets

The Company has carried out Impairment test on its fixed assets as on the date of Balance Sheet and the management is of the opinion that there is no asset for which provision for impairment is required to be made as per Accounting Standard - 28 on Impairment of Assets.

2 Contingent Liabilities:

a) Performance Bank Guarantee issued by Oriental Bank of Commerce of Rs. 41,00,000/-

b) PF commissioner was issued notice of demand of Rs. 57.84 lacs (Rs. 44.61 lacs for penalty and Rs. 13.23 lacs ) for interest. The company was 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 was challenged the decision in ''Honorable High Court'' and the same was dismissed by Single Judge Bench on 27.03.2012. Department further file appeal with Divisional Bench and the said bench asked for condonation of delay in filing the appeal from PF department.

d) In Case of Excise duty & TDS following demand notice issued by the authority.

3. No provision has been made in accounts for gratuity and other retirement benefits accruing to employees which is not in accordance with the Accounting Standard 15 and accounting policy of the company

4. Accounting standard (AS-19) Lease Transaction Disclosures

(a) Disclosures relating to Finance and Operating Leases

The Company has not entered in any kind of Finance and Operating Lease transactions during the Financial Year. Hence, no disclosure is required to be made as per AS-19 in this respect.

5. Related Parties Disclosures

(I). Names of related parties

6. Accounting standard (AS-19) Lease Transaction Disclosures

(a) Disclosures relating to Finance and Operating Leases

The Company has not entered in any kind of Finance and Operating Lease transactions during the Financial Year. Hence, no disclosure is required to be made as per AS-19 in this respect.

* Amount written off or written back in respect of debts due from or to related parties is "NIL".

** Figures for the previous year have been shown in the brackets.

*** Related party relationship is as identified by the management and relied upon by the auditor.

7. Segment Reporting

The Company has only one business and geographical Segment viz. HDPE Tarpaulene and related products in India. Hence no further disclosures are required to be made as per AS-17 on segment reporting.

8. Provision for Taxation

a) Current Tax: The company has made a appropriate provision for taxation for the year under the provision of the Income Tax Act, 1961

b) Deferred Tax

Deferred tax is recognized on timing differences in accordance with AS-22 issued by ICAI as per details given hereunder.

As a matter of Prudence, no provision for deferred Tax Asset has been made in the accounts.

9. Pursuant to the direction of Ministry of Corporate Affairs Cost Audit Order No.52/26/CAB-2010 dated 24.01.2012 & 06.11.2012, read with Section 233B of the Companies Act, 1956, cost audit applicable to company, Cost Audit report have not been submitted to the auditors, as the management is still in the process of cost audit exercise.

10. General Notes:

I) In term of notification GSR (129E) dated. 22.02.99 issued by the department of the company affairs, the company is required to furnish the details of outstanding to SSI undertaking under the head "Current Liabilities & Provision" of amount more than one lacs and for the period of more than 45 days the company has requested to vendor to furnish requisite information along with their SSI registration balance sheet, therefore the company is unable to furnish the particulars.

II) Income Tax assessments of the Company have been completed till the assessment year 2010-2011 U/S 143 (l)(a).

III) Provision has not been made for Bonus Payable in the current year.

IV) The company has in the year 1997 pledged with Bank against loan. Which held and owned by the Directors Mr. A. G. Kathawala, Mr. Z. A. Kathawala and Mrs. D. Z. Kathawala and their relative Mrs. M. A. Kathawala, having market value at the time around Rs. 10.00 Lacs to secure the company''s liabilities for payment of long outstanding collection bill dated 17.07.1990 for USD 29025/- (Rupees 7.42 Lacs).

We are given to understand that though the shares were pledged for a particular transaction and upto a limit of Rs. 10 Lacs only, in the year January 2000 the bank exercised their right to invoke the pledge without giving notice to the pledger and without restricting the sale to the extent of Rs. 10 Lacs only, and accordingly sold the shares for Rs. 2,88,50,988.57 and credited the proceeds to the companies account. The amount credited by the bank is shown under the group of unsecured loans from related party.

V) As per the information available the loan from Ambient Media Pvt. Ltd. for Rs. 1294.23 lacs (as mentioned in Note No. 3 of the Balance Sheet) is representing a loan purchased by M/s Ambient Media Solutions Private Limited (AMSPL, Group Company) from Assets Reconstruction Company India Ltd. The company has paid a sum of Rs. 253.87 lacs to AMSPL as a part of settlement of loan (as mentioned in Note 15 to Balance Sheet), subject to final settlement.

11. Balance of all sundry Debtors, Sundry Creditors & loan and advances are subject to confirmation and consequent reconciliation and adjustments, if any.

12. No forward exchange contracts are outstanding on the balance sheet date which is entered to hedge foreign exchange exposures of the Company.

13. Account confirmation statements were not received from some of the parties

14. In the opinion of the Board, the assets (other than Fixed Assets and Non Current Investments) are approximately of the value stated, if realized in the ordinary course of business. The provisions for liabilities are considered to be adequate by the Board


Mar 31, 2013

1. Impairment of Assets

The Company has carried out Impairment test on its fixed assets as on the date of Balance Sheet and the management is of the opinion that there is no asset for which provision for impairment is required to be made as per Accounting Standard - 28 on Impairment of Assets.

2 '' Contingent Liabilities:

a) As per the representation made by management, the company has not any contigent liability for bill discount from bank and other, futher all the Bank Guarantee with custom Authorities has been provided by DCB bank and the same has canceled. Also all the facility including Bank Guarantee and Bill purchase has been assigned by the DCB to the Asset Reconstruction Company of India Limited (Arcil). Refer Notel2 (V).

b) Bank Guarantee issued by OBC Bank of Rs. 29,46,500/-

c) PF commissioner was issued notice of demand of Rs. 57.84 lacs (Rs. 44.61 lacs for penalty and Rs. 13.23 lacs ) for interest. The company was 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 was challenged the decision in ''Honorable High Court'' and the same was dismissed by Single Judge Bench on 27.03.2012. Department further file appeal with Divisional Bench and the said bench asked for condonation of delay in filing the appeal from PF department.

d) In Case of Excise duty following demand notice issued by die audiority.

3. No provision has been made in accounts for gratuity and other retirement benefits accruing to employees which is not in accordance with the Accounting Standard 15 and accounting policy of the company

4. Segment Reporting

The Company has only one business and geographical Segment viz. HDPE Tarpaulene and related products in India. Hence no further disclosures are required to be made as per AS-17 on segment reporting.

5. Accounting standard (AS-19) Lease Transaction Disclosures

(a) Disclosures relating to Finance and Operating Leases

The Company has not entered in any kind of Finance and Operating Lease transactions during the Financial Year. Hence, no disclosure is required to be made as per AS-19 in this respect.

* Amount written offor written back in respect of debts due from or to related parties is "NIL".

* * Figures for the previous year have been shown in the brackets.

* * * Related party relationship is as identified by the management and relied upon by the auditor.

6. Provision for Taxation

a) Current Tax: The company has made a appropriate provision for taxation for the year under the provision of the Income Tax Act, 1961

b) Deferred Tax

Deferred tax is recognized on timing differences in accordance with AS-22 issued by ICAI as per details given hereunder.

As a matter of Prudence, no provision for deferred Tax Asset has been made in the accounts.

7. General Notes:

I) In term of notification GSR (129E) dated. 22.02.99 issued by the department of the company affairs, the company is required to furnish the details of outstanding to SSI undertaking under the head "Current Liabilities & Provision" of amount more than one lacs and for the period of more than 45 days the company has requested to vendor to furnish requisite information along with their SSI registration balance sheet, therefore the company is unable to furnish the particulars.

II) Income Tax assessments of the Company have been completed till the assessment year 2010 - 2011 U/S 143(1) (a).

III) Provision has not been made for Bonus Payable in the current year.

IV) The company has in the year 1997 pledged with Development Credit Bank Ltd. Share of Public Limited Companies, held and owned by the Directors Mr. A. G. Kathawala, Mr. Z. A. Kathawala and Mrs. D. Z. Kathawala and their relative Mrs. M. A. Kathawala, having market value at the time around Rs. 10.00 Lacs to secure the company''s liabilities for payment of long outstanding collection bill dated 17.07.1990 for USD 29025/- (Rupees 7.42 Lacs).

We are given to understand that though the shares were pledged for a particular transaction and upto a limit of Rs. 10 Lacs only, in the year January 2000 the bank exercised their right to invoke the pledge without giving notice to the pledger and without restricting the sale to the extent of Rs. 10 Lacs only, and accordingly sold the shares for Rs. 2,88,50,988.57 and credited the proceeds to the companies cash and the matter is under litigation by the parties concerned the amount so credited by the bank is shown under the heading suspense account failing under classified group unsecured loans.

V) As per the information available the loan from Ambient Media Pvt. Ltd. for Rs. 1294.23 lacs (as mentioned in Note No. 3 of the Balance Sheet) was originally granted by Development Credit Bank (DCB) and the same has been assigned by the DCB to the Asset Reconstruction Company of India Limited (Arcil). The Arcil has again sold its above said loan asset to one of the group company M/s Ambient Media Solutions Private Limited (AMSPL). The company has paid a sum of Rs. 253.87 lacs to AMSPL as a part of settlement of loan (as mentioned in Note 15 to Balance Sheet), subject to final settlement.

8. Balance of all sundry Debtors, Sundry Creditors & loan and advances are subject to confirmation and consequent reconciliation and adjustments, if any.

9. No forward exchange contracts are outstanding on the balance sheet date which is entered to hedge foreign exchange exposures of the Company.

10. Account confirmation statements were not received from some of the parties

11. In the opinion of the Board, the assets (other than Fixed Assets and Non Current Investments) are approximately of the value stated, if realized in the ordinary course of business. The provisions for liabilities are considered to be adequate by the Board


Mar 31, 2012

NOTE - 1 SHARE CAPITAL

a) There are Nil (Previous year - Nil) rights, preference and restriction attaching to each class of shares including restriction on the distribution of dividend and the repayment of capital.

b) There are nil number of shares (Previous year Nil) in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiary or associates of the holding company or the ultimate holding company in aggregate.

c) There are nil number of shares (Previous year Nil) reserved for issue under option and contracts/commitment for the sale of shares/disinvestment including the terms and amounts.

d) For the period of five years immediately preceding the date as at which the balance sheet is prepared

e) There are no securities issued which are convertible into equity/preference shares.

f) There are 15630 Calls unpaid (previous year 15630) of Rs 10/- each. Calls unpaid by directors & officers of the company as on Balance Sheet date are Nil.(previous year Nil).

i) There is no forfeiture of the shares of any class during the Financial Year (Previous Year - Nil).

1. Impairment of Assets

The Company has carried out Impairment test on its fixed assets as on the date of Balance Sheet and the management is of the opinion that there is no asset for which provision for impairment is required to be made as per Accounting Standard - 28 on Impairment of Assets.

2. The contingent liabilities:

a) Bills discounted with the banks amount to Rs. 479,473/- (Previous year Rs. 479,473/-) and other parties Rs. 4,636,340/- (Previous year Rs. 4,636,340)

b) Bank Guarantee with custom Authorities Rs. 9,645,768/- (Previous YearRs. 9,645,768/-)

3. No provision has been made in accounts for gratuity and other retirement benefits accruing to employees which is not in accordance with the Accounting Standard 15 and accounting policy of die company

4. Miscellaneous Expenditure:

The Company has written off balance preliminary/miscellaneous expenditure during the current year of Rs. 1.01,743.

5. Related Parties Disclosures

(I). Names of related parties

Names of related parties where control exists Nil irrespective of whether transactions have occurred or not

Names of other related parties with whom Nil transactions have taken place during the year

Associates Nil

Key Management Personnel 1. Mr. Zuzar A. Kathavvala (Managing Director)

2. Mrs. Durriya Z. Kathawala (Director)

3. Mr. Sunil Ramakanth Tripathi (Director)

Relatives of key management personnel 1. Mr. Imtiaz A. Kathawala

2. Yunus Kathawala

3. Salim Kathawala

4. A. G. Kathawala

5. Qusai Kathawala

6. Naamah Kathawala

Enterprises owned or significantly influenced 1. Alban Communications India by key management Pvt. Ltd. personnel or their relatives 2. Adamji Investment Pvt. Ltd. 3. Ambient Media Solutions Pvt. Ltd.

4. Niyuprene Plastics Co. Pvt. Ltd.

5. Kathawala Realtors LLP

6. ACCOUNTING STANDARD (AS-19) LEASE TRANSACTION DISCLOSURES

(a) Disclosures relating to Finance and Operating Leases

The Company has not entered in any kind of Finance and Operating Lease transactions during the Financial Year. Hence, no disclosure is required to be made as per AS-19 in this respect.

7. Provision for Taxation

a) Current Tax: The company has made a appropriate provision for taxation for the year under the provision of the Income Tax Act, 1961

8. Segment Reporting

The Company has only one business and geographical Segment viz. HDPE Tarpaulene and related products in India. Hence no further disclosures are required to be made as per AS-17 on segment reporting.

9. Previous Year Comparatives

The Financial Statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised schedule VI under the Companies Act, 1956, the Financial Statement for the Year ended 31st March, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year's does not impact recognisation and measurement principles followed for preparation of financial statements and the previous year's figures have been regrouped/rearranged wherever necessary to conform to current year presentation. Figures have been rounded off to the nearest rupee.

10. General Notes:

I) In term of notification GSR (129E) dated. 22.02.99 issued by the department of the company affairs, the company is required to furnish the details of outstanding to SSI undertaking under the head "Current Liabilities & Provision" of amount more than one lacs and for the period of more than 45 days the company has requested to vendor to furnish requisite information along with their SSI registration balance sheet, therefore the company is unable to furnish the particulars.

II) Income Tax assessments of the Company have been completed till the assessment year 2010 - 2011 U/S 143(1) (a).

III) Provision has not been made for Bonus Payable in the current year.

IV) The company has in the year 1997 pledged with Development Credit Bank Ltd. Share of Public Limited Companies, held and owned by the Directors Mr. A. G. Kathawala, Mr. Z. A. Kathawala and Mrs. D. Z. Kathawala and their relative Mrs. M. A. Kathawala, having market value at the time around Rs. 10.00 Lacs to secure the company's liabilities for payment of long outstanding collection bill dated 17.07.1990 for USD 29025/- (Rupees 7.42 Lacs).

We are given to understand that though the shares were pledged for a particular transaction and upto a limit of Rs. 10 Lacs only, in the year January 2000 the bank exercised their right to invoke the pledge without giving notice to the pledger and without restricting the sale to-the extent of Rs. 10 Lacs only, and accordingly sold the shares for Rs. 2,88,50,988.57 and credited the proceeds to the companies cash and the matter is under litigation by the parties concerned the amount so credited by the bank is shown under the heading suspense account failing under classified group unsecured loans.

V) As per the information available the loan taken by the company from Development Credit Bank (DCB) for Rs. 1294.23 lacs (as mentioned in Note No. 3 and 4 to the Balance Sheet) has been assigned by the DCB to the Asset Reconstruction Company of India Limited (Arcil). The Arcil has again sold its above said loan asset to one of the group company M/s Ambient Media Solutions Private Limited (AMSPL). The company has paid a sum of Rs. 231.51 lacs to AMSPL as a part of settlement of loan (as mentioned in Note 15 to Balance Sheet), subject to final settlement.

11. Balance of all sundry Debtors, Sundry Creditors & loan and advances are subject to confirmation and consequent reconciliation and adjustments, if any.

12. No forward exchange contracts are outstanding on the balance sheet date which is entered to hedge foreign exchange exposures of the Company.

13. Account confirmation statements were not received from some of the parties

14. In the opinion of the Board, the assets (other than Fixed Assets and Non Current Investments) are approximately of the value stated, if realized in the ordinary course of business. The provisions for liabilities are considered to be adequate by the Board

 
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