Notes to Accounts of Union Quality Plastics Ltd.

Mar 31, 2024

8) Provisions, contingent liabilities and contingent assets
Provision

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. Where discounting is used,
the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a
present obligation in respect of which the likelihood of outflow of resources is remote, no provision or
disclosure is made.

Contingent assets

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed
continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and
related income are recognised in the period in which the change occurs.

Revenue Recognition

Sale of goods and trade license

Effective April 1, 2018, the company has applied Ind AS 115 which establishes a comprehensive
framework for determining whether, how much and when revenue is to be recognized. Ind AS 115
replaces Ind AS 18 Revenue and Ind AS 11 Construction Contracts. The company has adopted Ind AS
115 using the cumulative catch-up method. The effect of initially applying this standard is recognized at
the date of initial application (i.e. .April 1, 2018).The effect of adoption of Ind AS 115 is insignificant

Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of
the product is transferred to the customer. Revenue from the sale of Products includes excise duty and is

measured at the fair value of the consideration received or receivable, net of returns, sales tax and
applicable trade discounts and allowances.

Other Income

Interest Income

Interest Income mainly comprises of interest on Margin money deposit with banks relating to bank
guarantee. Interest income should be recorded using the effective interest rate (EIR).However, the
amount of margin money deposits relating to bank guarantee are purely current in nature, hence effective
interest rate has not been applied. Interest is recognized using the time-proportion method, based on rates
implicit in the transactions.

9) Borrowing Costs

Borrowing costs consist of interest, ancillary and other costs that the Company incurs in connection with
the borrowing of funds and interest relating to other financial liabilities. Borrowing costs also include
exchange differences to the extent regarded as an adjustment to the borrowing costs. Borrowing costs
directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the
asset. All other borrowing costs are expensed in the period in which they occur.

10) Tax Expenses

Tax expense consists of current and deferred tax.

Income Tax

Income tax expense is recognized in the statement of profit and loss except to the extent that it relates to
items recognized directly in equity, in which case it is recognized in equity. Current tax is the expected
tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the
reporting date, and any adjustment to tax payable in respect of previous years.

Deferred Tax

Deferred tax is recognised using the balance sheet method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to the
temporary differences when they reverse, based on the laws that have been enacted or substantively
enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable
right to offset current tax liabilities and assets, and they relate to income taxes levied by the same
tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax
liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be
available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be
realized.

Dividend distribution tax arising out of payment of dividends to shareholders under the Indian Income
tax regulations is not considered as tax expense for the Company and all such taxes are recognized in the
statement of changes in equity as part of the associated dividend payment.

11) Earnings Per Share

The Company presents basic and diluted earnings per share (“EPS”) data for its ordinary shares. Basic
earnings per share is computed by dividing the net profit after tax by the weighted average number of
equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit
after tax by the weighted average number of equity shares considered for deriving basic earnings per
share and also the weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.

12) Trade receivables

Trade receivables are initially recognized at fair value and subsequently measured at amortized cost using
effective interest method, less provision for impairment.

13) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of
the financial year which are unpaid. The amounts are unsecured and are presented as current liabilities
unless payment is not due within twelve months after the reporting period.

14) Determination of fair values

The Company’s accounting policies and disclosures require the determination of fair value, for certain
financial and non-financial assets and liabilities. Fair values have been determined for measurement
and/or disclosure purposes based on the following methods. When applicable, further information
about the assumptions made in determining fair values is disclosed in the notes specific to that asset or
liability. A fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by selling it to
another market participant that would use the asset in its highest and best use.

(I) Property, plant and equipment

Property, plant and equipment, if acquired in a business combination or through an exchange of non¬
monetary assets, is measured at fair value on the acquisition date. For this purpose, fair value is based
on appraised market values and replacement cost.

(ii) Intangible assets

The fair value of brands, technology related intangibles, and patents and trademarks acquired in a
business combination is based on the discounted estimated royalty payments that have been avoided
as a result of these brands, technology related intangibles, patents or trademarks being owned (the
“relief of royalty method”). The fair value of customer related, product related and other intangibles
acquired in a business combination has been determined using the multi-period excess earnings
method after deduction of a fair return on other assets that are part of creating the related cash flows.

(iii) Inventories

The fair value of inventories acquired in a business combination is determined based on its
estimated selling price in the ordinary course of business less the estimated costs of completion
and sale, and a reasonable profit margin based on the effort required to complete and sell the inventories.

(iv) Investments in equity and debt securities and units of mutual funds

The fair value of marketable equity and debt securities is determined by reference to their
quoted market price at the reporting date. For debt securities where quoted market prices are not
available, fair value is determined using pricing techniques such as discounted cash flow analysis.

In respect of investments in mutual funds, the fair values represent net asset value as stated by the
issuers of these mutual fund units in the published statements. Net asset values represent the price
at which the issuer will issue further units in the mutual fund and the price at which issuers will
redeem such units from the investors.

Accordingly, such net asset values are analogous to fair market value with respect to these
investments, as transactions of these mutual funds are carried out at such prices between investors and
the issuers of these units of mutual funds.

(v) Non-derivative financial liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the present value of
future principal and interest cash flows, discounted at the market rate of interest at the reporting date.
For finance leases the market rate of interest is determined by reference to similar lease agreements.
In respect of the Company’s borrowings that have floating rates of interest, their fair value
approximates carrying value.

For Sagar & Associates For and on behalf of the board

Chartered Accountants UNION QUALITY PLASTICS LIMITED

FRN:003510S

(B Srinivasa Rao) Jeethendra Singh Goud

Partner Managing Director

M.No: 202352 DIN: 07678735

Place: Hyderabad
Date: 30/05/2024

Karthik Singh Javvari K

Director
DIN: 08082707

Kavitha Devi

Company Secretary

Venkata Satya Sesha Sai Munusuri

Chief Financial Officer

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Mar 31, 2016

(B) NOTES TO THE ACCOUNTS

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 lobe madras per Accounting Standard- 23 on Impairment of Assets.

2 Contingent Abilities:

a) Performance Ba’ik Guarantee sued by Orients: Bank of Commerce of Rs. 34.43 lacs.

b} PF commissioner ^as Issued notice of demand of Rs, 57. S4 lacs (Rs. 44.G1 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, for May 2011 matter disused off in favour of the company arid restricts the order impute Interest only. The department has challenged the opinion in ''Komura? High Court'' and the scamp was dismissed by Single Judge Bench tin 27.Q3.2012, Department further filed an appeals with Divisional Bench and the said bench was asked for condemnation of delay in filing the appeal by PF department.

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

4. 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 :encase and disclosure required as per Accounting Standard 19 with regard to the above Is as under;

Assets acquired an Lease / Leave Office Premises, Factory Premises, Guest House and Vehicles. and License Period of Lease / Leave and License Varying between 2 years to 5 years Lease payments debited lo Profit and Rs. 3S,34,B3G/- (P.V, of Rs, 32,91,817/-} Loss Account (Including Car lease payment; Factory Rent, Branch Office Rent Guest Mouse Rent.)

5. Segment Reporting

The Company las only one business and geographical Segment viz. HDPE Tarpaulins and related products in India. Other business activities, including installation of pond, etc, during the year, does not qualify as time reporting segment in terms of AS-17, Hence no further disclosures are retired to be ma^ AS-17 on segment reporting,

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 taxes recognized on timing differences in accordance with AS-22 issued by acacias per details given hereunder.

7. Related Parties Disclosures

(I). Names of related parties

Names of related parties were control exists i respective NI of whether transactions have occurred or not

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

Associates Nil

Key Management Personnel 1. Mr. Zuzar A, Kathawala

(Managing Director)

Relatives of key management personnel 1 A. G. Kathawala

2. Qusai Kathawala

3. Durriya Z Kathawala

4. Sunrise Carp. (Prop. Zuar Kathawala]

5. Silver Wings

(Prop. Zuiur Katriawala)

Enterprises owned or significantly influenced by key

1. Ambient Media Solutions Pvt. Ltd. management personnel or their relatives

2. Kathawala Healtori Lip

3. A.K- Packaging Pvt Ltd

4. Alban Communications (I) Pvt Ltd E. Niyuprene Plastics Co. pvt Ltd.

6. ShlrTiii Construction Pvt ltd

7. General Machinery

8. 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

9. General Notes:

I) In terror 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 under taking 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 registration balance sheet, therefore the company is unab^le to furnish the particulars.

il) Income Tax assessments of the Company have been completed Lil the assessment year 2012 -2013 U/S143

Ill) Provision has for been made for Bonus Payable in the current year.

IV) The company has pledged the shares /the Bank against loan in the year 1997 with were half and owned by the Directors Mr. A. G. Kathawaij, Mr.Z.A. Kathawa-a and Mrs. D. Z. Kathawala and their relative Mrs. M. A, Kathawala, having market value at the lima around Rs. 10.00 Lacs to secure the company''s liabilities for payment of long ''outstanding collection bill dated 17,07 1900 for USD 2 902 5/- (Rupees 7.42 La es).

We a regimens to under static that though the shares were p edged for a particular transaction and Lepton limited of Rs. 10.00 Lacs only, in theyearjanuary2000 the hank exercised their might convoke the pledge without giving notice tooth pledge and without restricting tip salt; to the profit Rs. 10 Lacs only, and according only sold the shakes for Rs. 2,83,50,938/- and created the proceeds to the companies account, The amount credited by the bank s shown under the group of unsecured loans from related party under Note No 4 (SIIDRT-TLRM 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 Mote No, 3 of the Financial Statements) is representing a son 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 made 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 fine! settlement. However during the current Financial Year, due to failure of the settlement proposal, the select amount was recovered back* by the company from AMSPL. However the company is still trying to ingot ate w it h t he A MSP Lor settlement of t h e loan.

10. 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.

11. Won forward exchange contracts are out standⁱng on the balance sheet date which is entered to hedge foreign exchange e* pushes of t h e Company,

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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.

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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

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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

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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