You are here » Home » Companies » Company Overview » Ultramarine & Pigments Ltd

Ultramarine & Pigments Ltd.

BSE: 506685 Sector: Industrials
NSE: ULTRMARINE ISIN Code: INE405A01021
BSE 09:40 | 22 Mar 259.75 0.55
(0.21%)
OPEN

259.75

HIGH

259.75

LOW

259.75

NSE 05:30 | 01 Jan Ultramarine & Pigments Ltd
OPEN 259.75
PREVIOUS CLOSE 259.20
VOLUME 52
52-Week high 375.00
52-Week low 205.20
P/E 14.24
Mkt Cap.(Rs cr) 758
Buy Price 252.15
Buy Qty 18.00
Sell Price 259.50
Sell Qty 10.00
OPEN 259.75
CLOSE 259.20
VOLUME 52
52-Week high 375.00
52-Week low 205.20
P/E 14.24
Mkt Cap.(Rs cr) 758
Buy Price 252.15
Buy Qty 18.00
Sell Price 259.50
Sell Qty 10.00

Ultramarine & Pigments Ltd. (ULTRMARINE) - Auditors Report

Company auditors report

To

The Members of Ultramarine & Pigments Limited

Report on the Financial Statements

1. We have audited the accompanying financial statements of Ultramarine & PigmentsLimited ("the Company") which comprise the Balance Sheet as at 31 March 2018the Statement of Profit and Loss Statement of Changes in Equity and the Statement of CashFlows for the year then ended and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act ("the Act") with respect to the preparation of these financialstatements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

4. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

5. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

6. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

7. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2018 and its profits total comprehensive income the changes in equity and its cashflows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

8. 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 the Annexure - "A" a statement on thematters specified in the paragraphs 3 and 4 of the Order to the extent applicable.

9. 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 Statement of Cash Flow dealt with by this Report are in agreement with the booksof account;

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015;

(e) On the basis of the written representations received from the directors as on 31March 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (2) of the Act; and

(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 controls overfinancial reporting; and

(g) 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 on its financialposition in its financial statements - Refer Note 37 to the financial statements;

ii) The Company did not have any long term contracts including derivative contractsfor which there were any material foreseeable losses.

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Brahmayya & Co.
Chartered Accountants
Firm's registration number: 000511S
R. Nagendra Prasad
Place: Chennai Partner
Date: 30th May 2018 Membership number: 203377

Annexure - 'A' to Independent Auditors' Report

[Referred to in paragraph 8 under 'Report on Other Legal and Regulatory requirements'of our Report of even date]

On the basis of such checks as considered appropriate and in terms of the informationand explanation furnished to us we state as under:

(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 a program of verification to cover all items offixed assets in 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 such verification were not material;

(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 case is pending disposal.

Immovable properties of land whose title deeds have been pledged with banks as securityfor term loans are held in the name of the company based on the Mortgage deed executedbetween the Bank and the Company for which confirmations have been obtained fromrespective bankers.

(ii) As explained to us the inventories have been physically verified during the yearby the management. The discrepancies noticed on physical verification of the same were notmaterial in relation to the operations of the Company and the same have been properlydealt with in the books of account;

(iii) In our opinion and according to the information and explanations given to us thecompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under Section189 of the Act. Therefore clauses (iiia) (iiib) and (iiic) of paragraph 3 of the Orderare not applicable to the company for the year;

(iv) In our opinion and according to the information and explanations given to usthere are no loans investments guarantees and securities granted in respect of which theprovisions of section 185 and 186 of the Act are applicable.

(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 adetailed examination of the cost records with a view to determining whether they areaccurate or complete;

(vii) (a) According to the information and explanations given to us and the recordsexamined by us the

Company is regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax service taxGoods and Services Tax duty of customs duty of excise value added tax cess and otherstatutory dues and there are no undisputed statutory dues outstanding as at 31st March2018 for a period of more than six months from the date they became payable.

(b) According to the records of the company and information and explanations given tous there are no outstanding amounts in respect of service tax goods and services taxthat have not been deposited with the appropriate authorities on account of any dispute.Disputed income tax value added tax duty of customs duty of excise that have not beendeposited on account of disputed matters pending before appropriate authorities are asunder:

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 30.36 Financial Year 2009-10 Commissioner of Income Tax (Appeals) Mumbai
Income Tax Act 1961 Income tax 106.80 Financial Year 2011-12 Commissioner of Income Tax (Appeals) Mumbai
Tamil Nadu Value Added Tax Act 2006 Tamil Nadu Value Added Tax 8.41 Financial Years 2013-14 and 2014-15 Joint Commissioner of Commercial Taxes Chennai
Tamil Nadu Value Added Tax Act 2006 Tamil Nadu Value Added Tax 15.46 Financial Year 2012-13 2013-14 and 2015-16 Appellate Deputy Commissioner of Commercial Taxes Chennai
Central Excise Act 1944 Excise Duty 29.37 Financial Year 2007-08 Customs Excise and Service Tax Appellate Tribunal Chennai

Amounts paid under protest and not charged to Statement of Profit and Loss has not beenincluded above. [Refer

Note 37] to the financial statements].

(viii) According to the information and explanations given to us the company did notavail any loan or borrowings from banks or financial institutions and also did not haveany debentures outstanding during the year under report. Accordingly the provisions ofclause 3(viii) of the Order are not applicable;

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and the company has not availed any term loansduring the year and accordingly the provisions of clause 3(ix) of the Order are notapplicable.

(x) To the best of our knowledge and belief and according to the information andexplanations given to us there have been no cases of fraud by the company or on thecompany by its officers or employees has been noticed or reported during the year underreport.

(xi) According to the information and explanations given to us and based on ourexamination of the records of 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 and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe 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-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the 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 number: 000511S
R. Nagendra Prasad
Place: Chennai Partner
Date: 30th May 2018 Membership number: 203377

ANNEXURE - "B" TO AUDITORS' REPORT

Referred to in paragraph 9 (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 Act2013 ("the Act")

1. We have audited the internal financial controls over financial reporting ofUltramarine & Pigments Limited ("the Company") as of 31 March 2018 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the 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 financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the 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 audit opinion on the Company's internal financial controls systemover financial reporting.

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 financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation

of financial statements in accordance with generally accepted accounting principlesand that receipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may 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 2018 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 number: 000511S
R. Nagendra Prasad
Place: Chennai Partner
Date: 30th May 2018 Membership number: 203377