Union Quality Plastics reports eroded net worth and audit qualifications
Union Quality Plastics Limited reported a net loss of ₹3.20 lakh for FY26 with fully eroded net worth. Auditors issued a qualified opinion citing unconfirmed debtors, slow-moving stock, and going concern uncertainties.
*this image is generated using AI for illustrative purposes only.
Union Quality Plastics Limited reported a net loss of ₹3.20 lakh for the financial year ended March 31, 2026, as its net worth turned negative due to accumulated losses. The company's current liabilities exceeded its current assets, prompting statutory auditors to flag a material uncertainty regarding its ability to continue as a going concern. Sagar & Associates issued a qualified opinion on the audited financial results, citing significant lapses in financial reporting and asset recoverability.
The auditors identified Rs. 274.83 lakhs in sundry debtors outstanding for over three years, with a net provision of Rs. 55.57 lakhs. The report states that no additional Expected Credit Loss was provided for non-moving debtors, and the recoverability of these receivables could not be confirmed. Additionally, Rs. 158.06 lakhs in closing stock, classified as slow-moving for more than two years, lacked a determined Net Realisable Value (NRV), raising concerns about its appropriateness.
Further qualifications include Rs. 364.33 lakhs in sundry creditors outstanding for over three years without confirmations, and Rs. 429.75 lakhs in other current assets. This category includes Rs. 419.25 lakhs advanced to related party Ikon Associates without documented terms, and Rs. 10.50 lakhs receivable from Gopinath Enterprise Private Limited with no record of receipt terms. The auditors also noted they were unable to verify Rs. 1.38 lakhs held across six bank accounts due to missing statements.
The company's financial position shows total assets of Rs. 815.09 lakhs against total liabilities of Rs. 815.09 lakhs for the year ended March 31, 2026. Equity share capital remained constant at Rs. 692.64 lakhs, while other equity stood at a negative Rs. 859.49 lakhs. The management attributed the financial decline to reduced demand for products like HDPE Tarpaulins and changes in government scheme priorities post-Covid-19.
Financial Results for FY26
| Particulars | Year Ended 31/03/2026 (Rs. in Lakhs) | Year Ended 31/03/2025 (Rs. in Lakhs) |
|---|---|---|
| Total Income | 0.18 | 604.00 |
| Total Expenses | 15.48 | 217.67 |
| Net Profit/(Loss) | (3.20) | 375.49 |
| Earnings Per Share (Basic) | (0.05) | 5.42 |
Statement of Assets and Liabilities
| Particulars | As at 31-Mar-2026 (Rs. in Lakhs) | As at 31-Mar-2025 (Rs. in Lakhs) |
|---|---|---|
| Total Assets | 815.09 | 916.64 |
| Non-current assets | 152.13 | 145.05 |
| Current assets | 662.96 | 771.60 |
| Total Equity and Liabilities | 815.09 | 916.64 |
| Equity | (166.85) | (163.65) |
| Liabilities | 981.94 | 1,080.29 |
Does management have a concrete restructuring plan to address the negative net worth and satisfy the auditors' going concern uncertainties?
What specific recovery actions or legal avenues is the company pursuing to collect the Rs. 274.83 lakhs in long-overdue sundry debtors?
Will the company be able to liquidate the Rs. 158.06 lakhs in slow-moving stock, or will it require further write-downs impacting future profitability?
18
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
