NewsEarningsUnion Quality Plastics Reports Q1 FY2026 Net Loss; Auditors Raise Going Concern DoubtsUnion Quality Plastics Reports Q1 FY2026 Net Loss; Auditors Raise Going Concern Doubts
Union Quality Plastics Limited (UQPL) reported a net loss of Rs 2.63 lakhs for Q1 FY2026, down from a net profit of Rs 535.31 lakhs in Q4 FY2025. The company recorded no revenue or total income for the quarter. Auditors highlighted concerns including long-outstanding debtors, slow-moving inventory, unconfirmed creditors, unclear asset transfers, and bank statement discrepancies. They emphasized that UQPL's accumulated losses have eroded its net worth, raising doubts about its ability to continue as a going concern.
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Union Quality Plastics Limited (UQPL) has reported a net loss of Rs 2.63 lakhs for the quarter ended June 30, 2025, according to the company's latest financial results. This marks a significant downturn from the previous quarter's net profit of Rs 535.31 lakhs. The company's financial health has come under scrutiny, with auditors raising concerns about its ability to continue as a going concern.
Financial Performance
UQPL's Q1 FY2026 results paint a challenging picture:
| Particulars | Q1 FY2026 (Rs. in lakhs) | Q4 FY2025 (Rs. in lakhs) |
|---|---|---|
| Revenue from Operations | 0.00 | 0.00 |
| Total Income | 0.00 | 609.00 |
| Employee Benefits Expense | 0.56 | 1.56 |
| Other Expenses | 0.97 | 39.78 |
| Net Profit/(Loss) | (2.63) | 535.31 |
The company recorded no revenue from operations during the quarter, with total income remaining at zero. This is in stark contrast to the previous quarter, which saw a total income of Rs 609.00 lakhs.
Auditor's Concerns
The company's auditors, Sagar & Associates, have issued a qualified review report highlighting several areas of concern:
Sundry Debtors: Rs 355.35 lakhs in sundry debtors outstanding for over three years, with a provision of Rs 219.26 lakhs made in earlier years as expected credit loss.
Slow-moving Inventory: Rs 158.06 lakhs in slow-moving inventory, with the net realizable value (NRV) not determined by the company.
Outstanding Creditors: Rs 396.93 lakhs in creditors outstanding for more than three years, with no confirmations received.
Other Current Assets: Rs 454.58 lakhs, including Rs 419.25 lakhs transferred to a related party as an advance, with unclear transaction nature and terms.
Bank Balances: Discrepancies in bank statement verification for multiple accounts.
Going Concern Uncertainty
The auditors have emphasized that the company's accumulated losses have fully eroded its net worth. With current liabilities exceeding current assets and continued net losses, there is "material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern."
Management Response
The financial results were approved by the Board of Directors on August 13, 2025. However, the management's response to the auditor's concerns and plans to address the company's financial challenges were not detailed in the available information.
Investors and stakeholders will likely be watching closely for any strategic initiatives or restructuring plans that Union Quality Plastics might implement to improve its financial position and operational performance in the coming quarters.
