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Ultramarine & Pigments Ltd.

BSE: 506685 Sector: Industrials
NSE: ULTRMARINE ISIN Code: INE405A01021
BSE 00:00 | 29 Jun 303.00 3.15
(1.05%)
OPEN

295.60

HIGH

304.00

LOW

295.60

NSE 05:30 | 01 Jan Ultramarine & Pigments Ltd
OPEN 295.60
PREVIOUS CLOSE 299.85
VOLUME 18021
52-Week high 517.70
52-Week low 285.00
P/E 15.17
Mkt Cap.(Rs cr) 885
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 295.60
CLOSE 299.85
VOLUME 18021
52-Week high 517.70
52-Week low 285.00
P/E 15.17
Mkt Cap.(Rs cr) 885
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ultramarine & Pigments Ltd. (ULTRMARINE) - Auditors Report

Company auditors report

To

The Members of Ultramarine & Pigments Limited

Report on the Standalone Financial Statements

1. Opinion

1.1 We have audited the standalone financial Ultramarine & Pigments Limited (“theCompany”) which comprise the Balance Sheet as at 31st March 2021 and the Statementof Profit and Loss Statement of Changes in Equity and Statement of Cash Flows for theyear then ended and Notes to the Standalone financial statements including a Summary ofSignificant Accounting Policies and other explanatory information ( “the standalonefinancial statements”).

1.2 In our opinion and to the best of our information and according to the explanationsstandalone financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021and Profit changes in equity and its cash flows for the year ended on that date.

2 Basis for opinion

2.1 We conducted our audit in accordance with the Standards on Auditing (SAs)specifiedunder section143(10) of the Companies Act 2013. Our responsibilitiesunder thoseStandards are further described in the

Auditor’s Responsibilitiesfor the Audit of the Standalone financial statements sectionof our report. We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilledour other ethical responsibilitiesin accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.

3 Key Audit Matters

3.1 Key audit matters are those matters that in our professional judgment were ofmost significance in our of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined that there are no other key auditmatters to be communicated in our report.

4 Information Other than the Standalone financial statements and Auditor’sReport

4.1 The Company’s Board of Directors is responsible for the preparation of theother information. The other information comprises the information included inBoard’s Report including Annexures to Board’s Report and Shareholder’sInformation but does not include the standalone financial statements and ourauditor’s report thereon.

4.2 Our opinion on the standalone financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

4.3 In connection with our audit of the financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated.

4.4 If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

5 Responsibilities of Management and statements

5.1 The Company’s Board of Directors is responsible for the matters stated insection 134(5) of the Companies Act 2013 (“the Act”) with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

5.2 In preparing the standalone financial statements management is responsible forassessing the Company’s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ealistic alternativecease operations but to do so.or has no

5.3 Those Board of Directors are also responsible for over seeing the Company’sfinancial reporting process.

6 Auditor’s Responsibilities for the Audit of the Standalone financialstatements

6.1 Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone financial statements.

6.2 As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: Identify and assess therisks of material misstatement of the standalone financial statements whether

a. due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than one resulting from error as fraud may involve collusion forgery intentionalomissions misrepresentations or the override of internal control.

b. Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

c. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

d. Conclude on the appropriateness of management’s use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s report. However future events or conditionsmay cause the a going concern.

e. Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

6.3 We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

6.4 We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

6.5 From the matters communicated with those charged with governance we determinethose matters that were of most significance in the audit of the standalone financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor’s report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

7 Report on Other Legal and Regulatory Requirements

7.1 As required by the Companies (Auditor’s Report) Order 2016 (“theOrder”) issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in matters specified in paragraphs 3 and 4 of the Orderto the extent applicable.

7.2 As required by Section 143 (3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss Statement of Changes in Equityand the Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount.

d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards prescribed under section 133 of the Act read

e) On the basis of the written representations received from the directors as on 31 stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in “Annexure B”. Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting; and

g) With respect to the other matters to be included in the Auditor’s Report inaccordance with the requirements of section 197(16) of the Act: In our opinion and to thebest of our information and according to the explanations given to us the remunerationpaid by the Company to its directors during the year is in accordance with the provisionsof section 197 of the Act.

h) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations as at 31 st March 2021on its financial position in Note 39 to the standalone financial statements

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Brahmayya & Co.

Chartered Accountants

Firm’s registration No.: 000511S

R. Nagendra Prasad

Partner

Membership No.: 203377

UDIN : 21203377AAAADT1732

Place: Chennai

Date: 20th May 2021

Annexure ‘A’ to Independent Auditors’ Report

[Referred to in paragraph 7.1 under ‘Report on Other Legal and Regulatoryrequirements of our Report of even date] On the basis of such checks as consideredappropriate and in terms of the information and explanation furnished to us we state asunder:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) As explained to us the company has verification to cover all items of fixedassets in program of a phased manner which in our opinion is reasonable. Pursuant to theprogram the management carried out the physical verification of the fixed assets duringthe year. The discrepancies noticed on verific were not material; such

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company except in one case wherein a portion of land costingRs.28750/- for which the title of property in the name of the company as per revenuerecords and in occupation of a third party claiming the title and the company has takensteps to protect its title and the

(ii) As explained to us the inventories have been physically verified during the yearby the management. The discrepancies noticed on physical verification of the Company andthe same have been properly dealt with in the books of account;

(iii) In our opinion and according to the information and explanations any loanssecured or unsecured to companies firms limited liability partnerships or other partiescovered in the register maintained under Section 189 of the Act. Therefore clauses(iiia) (iiib) and (iiic) of paragraph 3 of the Order are not applicable to the companyfor the year;

(iv) In our opinion and according to the information and explanations any loans orprovided any guarantees or security to the parties covered under section Company hascomplied with the provisions of Section 186 of the Act in respect of the investments madein a subsidiary. The Company has not provided any security or guarantees to the partiescovered under Section 186 of the Act;

(v) The Company has not accepted any deposit to which the provisions of Sections 73 to76 of the Act and The Companies (Acceptance of Deposits) Rules 2014 would apply. Asinformed to us no order has been passed by Company Law Board or National Company LawTribunal or Reserve Bank of India or any court or any other tribunal related to compliancewith above provisions;

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the Companies (Cost Records and Audit) Rules 2014 prescribed by the Central Governmentunder section 148(1) of the Act and are of the opinion that prima-facie the prescribedaccounts and cost records have been made and maintained.

We have not however made a detailed examination of the cost records with a view todetermining whether they are accurate or complete;

(vii) (a) According to the information and explanations given Company is regular indepositing with appropriate authorities undisputed provident fund employees’ stateinsurance income-tax Goods and Services Tax duty of customs cess and other statutorydues and there are no undisputed statutory dues outstanding as at 31st March2021 for a period of more than six months from the date they became payable.

(b) According to the records of the company and information outstanding amounts inrespect of sales tax service tax duty of customs goods and services tax that have notbeen deposited with the appropriate authorities on account of any tax value-added taxthat have not been deposited on account of disputed matters pending before appropriateauthorities are as under:

Name of the Statute Nature of Dues Amount in Rs. Lakhs Year to which it relates Forum where dispute is pending
Income Tax Act 1961 Income tax 0.51 Financial Year 2005-06 Commissioner of Income Tax (Appeals) Mumbai
Income Tax Act 1961 Income tax 62.82 Financial Year 2009-10 2010-11 and 2011-12 Commissioner of Income Tax (Appeals) Mumbai
Tamil Nadu Value Added Tax Act 2006 Tamil Nadu Value Added Tax 12.60 Financial Year 2012-13 2013-14 and 2015-16 Appellate Deputy Commissioner of Commercial Taxes Chennai
Tamil Nadu Value Added Tax Act 2006 Tamil Nadu Value Added Tax 8.41 Financial Year 2013-14 & 2014-15 Joint Commissioner of Commercial Taxes Chennai Appel is being preferred before
Central Excise Act 1944 Excise Duty 27.62 Financial Year from 2004-05 to 2016-17 Commissioner of Central Excise (Appeals)

Disputed taxes paid under protest and not charged to Statement of Profit and Loss hasnot been included above. [Refer Note 39 to the standalone financial statements].

(viii) According to the information and explanations given to us the company hasavailed term loan from a bank during the year and repayment of term loan is not due duringthe year. The company did not avail any loan or borrowings from financial institutions andalso did not have any debentures outstanding during the year under report;

(ix) According to the information and explanations given to us the Company did notraise any money by way of initial public offer or further public offer (including debtinstruments). The company has availed a term loan from a bank during the year and utilisedterm loan for the purpose for which they were raised;

(x) To the best of our knowledge and belief and according to the information andexplanations have been no cases of fraud by the company or on the company by its officersor employees has been noticed or reported during the year under report;

(xi) According to the information and explanations given to us and based on ourexamination of the records the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act;

(xii) In our opinion and according to the information company. Accordingly paragraph3(xii) of the Order is not applicable;

(xiii) According to the information and explanations the Company transactions with therelated parties are in compliance with sections 177 where applicable and details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards;

(xiv) According to the information and explanations given to us and Company theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year;

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactionswith directors or persons connected with them. Accordingly paragraph 3(xv) ofthe Order is not applicable;

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Brahmayya & Co.

Chartered Accountants

Firm’s registration No.: 000511S

R. Nagendra Prasad

Partner

Membership No.: 203377

UDIN : 21203377AAAADT1732

Place: Chennai

Date: 20th May2021

ANNExURE - “B” TO AUDITORS’ REPORT

Referred to in paragraph 7.2(f) of our report of even date

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (“the Act”)

1. We have audited the internal financial controls over financial reporting ofUltramarine & Pigments Limited (“theCompany”)as with our audit of thestandalone31st March2021financial conjunction statements of the Company for theyear ended on that date.

Management’s Responsibility for Internal Financial Controls

2. The Company’s management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (‘ICAI’).These responsibilities design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguarding detectionof frauds and errors the accuracy and completeness its assets the prevention andpreparation of reliable financial information as required under the of the accountingrecords and the timely Companies Act 2013.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over that a material weaknessexists and testing and evaluating the design financial and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our auditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.

Meaning of Internal Financial Controls over Financial Reporting

6. A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of standalone financial statements for external purposes in accordancewith generally accepted accounting principles. A company’s internal financial controlover financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the material effect on the standalonefinancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. Because of the inherent limitations of internal financial controls over of collusionor improper management override of controls material misstatements due to error or fraudmay occur and not be detected. Also projections of any evaluation of the internalfinancial controls over financial reporting to future periods are subject to the risk thatthe internal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate

opinion

8. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India

For Brahmayya & Co.

Chartered Accountants

Firm’s registration No.: 000511S

R. Nagendra Prasad

Partner

Membership No.: 203377

UDIN : 21203377AAAADT1732

Place: Chennai

Date: 20th May2021

.