To the Members of Ultramarine & Pigments Limited
Report on the Financial Statements
1. We have audited the accompanying financial statements of Ultramarine &Pigments Limited ("the Company") which comprise the Balance Sheet as at31st March 2016 the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.
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 financial performanceand cash lows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring 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.
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.
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 2016 and its profit and its cash lows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure - "A" a statement on the matters specified inthe 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
(e) On the basis of the written representations received from the directors as on 31March 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 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"; 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 4.1to 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 and on behalf of
Brahmayya & Co.
Firm Regn. No. 000511S
R. Nagendra prasad
27th May 2016
Annexure to Independent Auditor's 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 management carries out the physical verification of thefixed assets at reasonable intervals. The discrepancies noticed on such verification werenot 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 the title of property in thename of the company as per revenue records and in occupation of a third party claiming thetitle and the company has taken steps to protect its title and the case is pendingdisposal.
(ii) (a) As explained to us the inventories have been physically verified during theyear by the management. The discrepancies noticed on physical verification of the samewere not material in relation to the operations of the Company and the same have beenproperly dealt 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 authoritiesundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax cessand other statutory dues and there are no undisputed statutory dues outstanding as at 31stMarch 2016 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 duty of customs duty ofexcise that have not been deposited with the appropriate authorities on account of anydispute. Disputed income tax value added tax that have not been deposited on account ofdisputed matters pending before appropriate authorities are as under:
|Name of the Statute ||Nature of the dues ||Amount (Rs.) ||Year to which relates ||Forum where dispute is pending |
|Income tax Act 1961 ||Income-tax ||51434 ||Financial Year 2005-06 ||Commissioner of Income tax (Appeal) Mumbai |
|Income tax Act 1961 ||Income-tax ||3035744 ||Financial Year 2009-10 ||Commissioner of Income tax (Appeal) Mumbai |
|Income tax Act 1961 ||Income-tax ||10680474 ||Financial Year 2011-12 ||Commissioner of Income tax (Appeal) Mumbai |
|Tamilnadu Value Added Tax 2006 ||Tamilnadu Value Added Tax ||412758 ||Financial Year 2012-13 ||Appellate Deputy Commissioner of Commercial Taxes Chennai |
|Tamilnadu Value Added Tax 2006 ||Tamilnadu Value Added Tax ||840846 ||Financial Year 2013-14 & 2014-15 ||Joint Commissioner of Commercial Taxes Chennai |
Amounts paid under protest and not charged to Statement of Profit and Loss has not beenincluded above. [Refer Note 4.1 (c)(i) 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(ix) 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(xi) 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 of secton 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 and on behalf of |
| ||Brahmayya & Co. |
| ||Chartered Accountants |
| ||Firm Regn. No. 000511S |
| ||R. Nagendra prasad |
| ||Partner |
|Mumbai 27th May 2016 ||Membership No.203377 |