You are here » Home » Companies » Company Overview » UTI Asset Management Company Ltd

UTI Asset Management Company Ltd.

BSE: 543238 Sector: Financials
NSE: UTIAMC ISIN Code: INE094J01016
BSE 00:00 | 20 Jan 1045.40 -4.25
(-0.40%)
OPEN

1055.00

HIGH

1056.75

LOW

1042.90

NSE 00:00 | 20 Jan 1046.15 -3.20
(-0.30%)
OPEN

1045.00

HIGH

1057.60

LOW

1043.00

OPEN 1055.00
PREVIOUS CLOSE 1049.65
VOLUME 2537
52-Week high 1216.55
52-Week low 536.00
P/E 30.60
Mkt Cap.(Rs cr) 13,268
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1055.00
CLOSE 1049.65
VOLUME 2537
52-Week high 1216.55
52-Week low 536.00
P/E 30.60
Mkt Cap.(Rs cr) 13,268
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

UTI Asset Management Company Ltd. (UTIAMC) - Auditors Report

Company auditors report

To

The Members of UTI Asset Management Company Limited

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

Opinion

We have audited the accompanying standalone financial statements of UTI AssetManagement Company Limited("the Company") which comprise the Balance sheetas at 31 March 2021 the statement of Profit and Loss account (including othercomprehensive income) the Statement of changes in Equity and the Cash Flows Statement forthe year ended on that date and a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "the standalone financialstatements").

In our opinion and to the best of our information and according to the explanationsgiven to us these aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the Act) in the manner so required and give a true and fairview in conformity with the Indian Accounting Standards specified under section 133 of theAct read with the Companies (Indian Accounting Standards) Rule 2015 as amended (‘IndAS') and other accounting principles generally accepted in India of the state of affairsof the Company as at 31 March 2021 and its profit and other comprehensive income thechanges in equity and its cash flows for the year ended on that date.

Basis of Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143 (10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (the ‘ICAI')together with the ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Act and Rules thereunder and we have fulfilled ourother ethical responsibilities in 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 on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Key Audit Matter Auditor's Response
1. Revenue Recognition
Refer to the accounting policies in the Financial Statements: Significant accounting policies – Note 2.3 Revenue Recognition and Note 25 to the financial statements: Revenue from Operations. Our audit procedures included:
Obtained and read the accounting policy for revenue recognition.
Revenue from operations is the most significant account balance in the Statement of Profit and Loss. Understood and evaluated the design and implementation of controls. Tested the operating effectiveness of the controls in place across the Company relevant to the recognition of the revenue.
It comprises of :
(a) Investment Management Fees.
(b) Portfolio Management Fees. On a sample basis obtained and tested arithmetical accuracy of revenue calculations and reconciled it with the amount included in the financial statements and test checked invoices and reconciled with the accounting records.
(c) Fees relating to point of presence under New Pension Scheme.
Key aspects relating to timing and recognition are:
Revenue is accrued based on a five step model as set out in Ind AS 115 "Revenue from Contract with Customers" and in accordance with the respective agreement.
The Company receives investment management fees from the mutual funds which is charged as a percent of the Asset under Management (AUM) in accordance with the guidelines prescribed under SEBI (Mutual Fund) Regulations 1996 as amended from time to time based on daily net asset value. On a sample basis obtained and read the certification reports issued by the statutory auditors of mutual fund schemes in accordance with generally accepted assurance standards.
Company also receives monthly AMC Fees from a Offshore fund floated in India. Evaluated the adequacy of disclosures relating to the revenue .
Company is registered with Pension Fund Regulatory & Development Authority (PFRDA) under NPS architecture providing Point of Presence service to subscriber for which the Company receives service charges as applicable.

INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITOR'S REPORT THEREON

The Company's Board of Directors are responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon. Our opinionon the standalone financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon. In connection with our audit of thestandalone financial statements our responsibility is to read the other informationidentified above when it becomes available and in doing so consider whether the otherinformation is materially inconsistent with the standalone financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated. When we read other information if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance and describe actions applicable in the applicable laws and regulations.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS

The Company's Board of Directors are responsible for the matters stated in Section134(5) of the Companies Act 2013 with respect to the preparation of these standalonefinancial statements that give a true and fair view of the Financial Position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theIndian accounting Standards specified under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements Board of Directors are responsiblefor assessing 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 ceaseoperations or has no realistic alternative but to do so. The Board of Directors are alsoresponsible for overseeing the Company's financial reporting process.

AUDITOR'S RESPONSIBILITY FOR THE AUDIT OF STANDALONE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are consider material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

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

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the Management.

• Conclude on the appropriateness of the Management's use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theappropriateness of this assumption. If we conclude that a material uncertainty exists weare required to draw attention in our auditor's report to the related disclosures in thestandalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern. Evaluate the overall presentation structure and content ofthe standalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the standalone financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor's report unlesslaw or regulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

As required by the Companies (Auditor's Report) Order 2016 ("the order")issued by the Central Government in terms of Section 143 (11) of the Act we give in the "AnnexureA" a statement of the matters specified in paragraph 3 and 4 of the Order tothe extent applicable.

I. 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 (including other comprehensiveincome) the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid Standalone Financial Statements comply with the Ind ASspecified under Section 133 of the Act read with Rule 3 of the Companies (IndianAccounting Standards) Rules 2015.

e) On the basis of the written representations received from the directors as on 31March 2021 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 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" to this report

g) With respect to the matter to be included in the Auditor's Report under section197(16) of the Act: In our opinion and according to the information and explanation givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provision of section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under section 197 of the Act. TheMinistry of the Corporate Affairs has not prescribed other details under section 197 (16)of the Act which are required to commented upon by us.

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 on its financialposition in its Standalone Financial Statements – Refer Note No. 33 & 34 to theStandalone Financial Statements.

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

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

For G. D. Apte & Co.
Chartered Accountants
Firm registration number: 100515W
C.M. Dixit
Partner
Place : Mumbai Membership No: 017532
Date : April 28 2021 UDIN : 21017532AAAAAC3790

ANNEXURE – A TO THE INDEPENDENT AUDITORS' REPORT ON THE STANDALONE FINANCIALSTATEMENTS OF UTI ASSET MANAGEMENT COMPANY LIMITED

(Referred to in paragraph I under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of UTI AssetManagement Company Limited on the Standalone Financial Statements for the year ended 31March 2021)

i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

b) The Company has a program to physically verify its property plant and equipment ona regular basis. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such verification.

c) According to the information and explanation given to us the records examined by usand based on the examination of the conveyance deeds/registered sale deed provided to uswe report that the title deeds comprising all the immovable properties of land andbuildings which are freehold are held in the name of the Company as on Balance SheetDate except as stated in the Note No. 11 to the ‘Financial Statements' as regards‘UTI Tower' at Bandra Kurla Complex Mumbai where the land on which building isconstructed belongs to MMRDA and the balance period of lease remaining is 52 years. Andthe sale deed is yet to be executed. ii. The Company is a service Company primarilyrendering assets management services and portfolio management services. Accordingly itdoes not hold any inventories. Accordingly reporting requirement under paragraph 3 (ii)of the Order is not applicable.

iii. According to the information and explanations given to us the Company has grantedunsecured loan to UTI Capital Private Limited covered in the register maintained undersection 189 of the Act in respect of which: a) The terms and conditions of the grant ofsuch loans are not prejudicial to the Company's interest.

b) In the case of loan granted the terms of arrangement stipulate any repaymentschedule as prescribed. Payment of interest has been stipulated and the receipts thereofare regular.

c) There are no overdue amounts for more than ninety days in respect of the loansgranted.

iv. In our opinion and according to the information and explanation given to us theCompany has complied with the section 185 and section 186 of the Act in respect of loansgiven and investments made and guarantee provided. According to the information andexplanation given to us the Company has not provided any security.

v. The Company has not accepted deposits from public hence directives issued by theReserve Bank of India and the provisions of section 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed there under are not applicablefor the year under audit.

vi. To the best of our knowledge and as explained the Central Government has notspecified the maintenance of cost records under clause 148(1) of the Companies Act 2013for the Company and therefore the provisions of clause (vi) of the order are notapplicable to the Company.

vii. a) According to the information and explanations given to us and according to therecords of the Company examined by us in our opinion the Company is generally regular indepositing with the appropriate authorities undisputed statutory dues including ProvidentFund Employees' State Insurance Income-tax Sales Tax Service Tax Goods and ServiceTax duty of Custom duty of Excise Value Added Tax Cess and any other statutory dueswherever applicable. According to the information and explanations given to us noundisputed amounts payable in respect of aforesaid dues were outstanding as at 31 March2021 for a period of more than 6 months from the date they became payable.

b) According to the information and explanations given to us there were no dues inrespect of Income Tax Duty of Excise Duty of Customs Sales Tax Service Tax Goods andService Tax and Value Added Tax which have not been deposited on account of any disputeexcept the following:

(INR in crore)

Name of the Statue Nature of Dues Forum where the case is pending Period to which the Amount relates Gross Amount Amount Paid in Protest Amount Unpaid
(Financial Year) Involved
Income Tax Act 1961 Income Tax and Interest Income Tax Appellate Tribunal 2008-09 5.26 - 5.26
2011-12 1.22 1.22 0.00
2012-13 1.33 1.33 0.00
Commissioner of Income Tax – Appeals 2009-10 2.28 - 2.28
Total 10.09 2.55 7.54

viii. The Company did not have any dues outstanding to any financial institutions /banks / Government or to the debenture holders during the year hence question of defaultdoes not arise.

ix. According to the information and explanations given to us and on the basis ofexamination of records the Company has not raised money by way of or raised any money byway of initial public offer/further public offer or term loans during the year.

x. According to the information and explanations given to us and on the basis of ourexamination of the records no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

xi. The managerial remuneration has been paid in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

xii. According to the information and explanations given to us the Company is not aNidhi Company thus reporting requirement under paragraph 3 (xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us and based on ourexamination of records of the Company the transactions entered with related parties arein compliance with provisions of section 177 and 188 of the Act where applicable and thedetails of such transactions are disclosed in the Standalone Financial Statements asrequired by the applicable accounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of records of the Company the Company during the year has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures. hence reporting under paragraph 3 (xiv) of the Order are not applicable.

xv. According to the information and explanations given to us and based on ourexamination of records of the Company the Company during the year has not entered intoany non cash transactions with directors or persons connected with the directors coveredunder the provisions of sec 192 of the Act and accordingly the provisions of clause (xv)of the Order are not applicable to the Company.

xvi. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For G. D. Apte & Co.
Chartered Accountants
Firm registration number: 100515W
C. M. Dixit
Partner
Place : Mumbai Membership No: 017532
Date : April 28 2021 UDIN : 21017532AAAAAC3790

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT ON STANDALONE FINANCIALSTATEMENTS OF UTI ASSET MANAGEMENT COMPANY LIMITED (Referred to in paragraph I (f) under‘Report on Other Legal and Regulatory Requirements' of our report of even date of UTIAsset Management Company Limited on the Standalone Financial Statements for the year ended31 March 2021)

REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (I) OFSUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 ("THE ACT")

We have audited the internal financial controls over financial reporting of UTI AssetManagement Company Limited ("the Company") as of 31 March 2021 in conjunctionwith our audit of the Standalone Financial Statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

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 Reporting("the Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

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 and the Standards on Auditing issued by the ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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 Standalone Financial Statements whether due to fraud orerror.

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

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Standalone 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 StandaloneFinancial Statements in accordance with generally accepted accounting principles and thatreceipts 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 StandaloneFinancial Statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as of 31 March 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.

For G. D. Apte & Co.
Chartered Accountants
Firm registration number: 100515W
C. M. Dixit
Partner
Place : Mumbai Membership No: 017532
Date : April 28 2021 UDIN : 21017532AAAAAC3790

.