DIRECTORS' REPORT

The Directors have pleasure In presenting their 32^nd Annual Report together with Audited Accounts of the Company for the year ended 31^st March, 2016.

L FINANCIAL PERFORMANCE ^OPERATIONS:

(Rs. In Lacs)

Total income for the year has increase to Rs. S48.63 Lacks from Rs. (394.63) Lacs fn the previous year and profit after tax increased to Rs. 546,40 Lace from Rs (394.63} Lacs in the previous year.

2. DIVIDEND;

in view of accumulated losses by company, your Directors had not recommended any dividend for this year.

X SHARE CAPITAL

The paid up Equity Share Capital as on 31^st March, 2016 was 4-83 Crore. During the year under review, the Company has not issued shares with differential voting rights nor granted stock options nor sweat equity,

4. FJXED DEPOSIT:

The Company did not invite or accept deposit from public during the year under review,

5. PLASTICS INDUSTRY OUT LOOK AND OPPORTUNITIES:

The year 2016-17 was a challenging year for the Company due to the unstable market conditions. High volatile in raw materials supply as well as prices variation lead to fluctuation in production capacity. There was shortage of raw material! supply especially in last few quarters due to shutdown of plant by major stakeholders in India. There is increase In competition due to new entrant in these overcrowded industries that leads to lower margin of our products, the company is taking all necessary steps to maintain the optimum level of production and provide best service to customers. The company is looking for new Agri base product to serve the industry where margin is high.

QUALITY MANAGEMENT;

The company is committed to supply products and services confirming to customers' requirements by involving employees, vendors sub- contractors and customers to achieve its vision of being a cost- efficient global suppliers of quality products,

7, PARTICULARS OF EMPLOYEE:

The information required pursuant to Section 197 read with Rule, 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,2034 in respect to employees of the Company, will be provided on request.

& DIRECTORS:

in pursuance of the Companies Act, 2013 and Articles of Associations of the Company Mrs. Durriya Kathawala retires by rotation and being eligible, offer to herself re- appointment.

% DIRECTORS RESPONSIBILITY STATEMENTS:

To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements fn terms of Section 134(3MC) of the Companies Act,2Gl!J:

a. That in the preparation of the annual financial statements for the year ended March 31, 201G the applicable accounting standards have been followed along with proper explanation relating to materials departures, if any;

b. That such accounting policies as mentioned in Notes of the Financial Statements have been selected and applied consistently and judgment and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2016 and of the Profit/(Loss) of the Company for the year ended on that date.

c. That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with provisions of the Companies Act, 2013 for safeguarding the assets of the Company and preventing and detecting fraud and other irregularities;

d. that the annual financial statement have been prepared on a going concern basis.

e. that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively;

f, that systems to ensure compliance* with the provisions of all applicable laws were in place and were adequate and operating efficiency.

1ft CONSERVATION OF ENERGY, ABSORPTION OF TECHNOLOGY ANO FOREIGN EXCHANGE AND OUTGO:

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3}(m) of the Companies Act,2013is given below;

A. Conservation of Energy:

Continues monitoring and awareness amongst employees has helped to avoid waste of energy. Adequate measures had helped in reducing the consumption of energy and overall electricity bill.

It is planned to extend the measures taken during the current year which yielded good results, to other areas/equipment/offices.

U. Technology Absorption:

Company has not incurred major expenditure on R&D activity during the year under review; however the company is searching various technology and method which will help in reducing the consumption of energy, increase in input/output ration produce internationally acceptable quality products, company havetheiS09001:2000Certificate.

Information regarding technology imported during the last five years:

a. Technology imported : No

b. Year of Import : Mo

c. Has technology been fully absorbed ; N.A.

d. If not fully absorbed, are as where : N.A. this has not taken place, reasons

therefore and future plans of actions

C. Foreign Exchange:

The foreign exchange used and earned during the year:

11 AUDITORS:

1.) STATUTORY AUDITOR:-

The Company's Auditors, M/s. Parekh Shah & Lodha, Chartered Accountants, Mumbai who retire at the ensuing Annual General Meeting of the Company are eligible for re-appointment. They have confirmed their eligibility under Section 141 of the Companies Act, 2013 and the Rules framed there under for reappointment as Auditors of the Company. As required under Clause 49 of the Listing Agreement the Auditors have also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India.

2}. SECRETARIAL^ UDITOR:-

Pursuant to Section 204 of the Companies Act. 2013 read with rude 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the Company has appointed M/s. Nitrn Katkar & Co, a firm Company Secretaries in Practice to undertake the Secretaries IN PRACTICE TO NDERTAKE THE SECRETARIAL Auditor of the company The report of the sectarian Audit Reports annexed here with.12 AUDITORS OBSERVATION:

The comment of the auditors in their reports is see(-explanatory and need no further clarification. And Management also trying to comply which Is requires as per the laws applicable to the Company,

11 CORPORATE GOVERNANCE:

As per Clause 49 of the Listing Agreement with the Stock Exchanges a separate section on corporate governance practices followed by the company, together with certificate from the company's Auditors confirming compliances from an integral part of this report.

14 ACKNOWLEDGEMENTS:

Your Directors thanks all its valued customers and various Governments, Semi-Government aid Local Authorities, Suppliers and other business associates. Over Directors appreciate continued support from Banks and Financial Institutions and look forward to their co-operation in the future. Your Directors place on record their appreciation of the dedicated efforts put in by the employees at all levels and wish to thanks and shareholders and all other stakeholders for their unstinted support and co-operation.

By order of the Board of Directors of

Registered Office: Union Quality Plastics Limited

Plot NO, 42,4th Floor,

Cambattta Building, East Wine,

Sir Jamshedji Tata Road,

Churchgate,

Mumbai- 400 009

Place: Mumbai

Date: September, 2016 Zuiar Kathawala Durriya Kathawala

Managing Director Director