Ultramarine & Pigments’ record is built on a clean auditor rotation, a simple two-entity subsidiary structure that has been stable for four years, and small voluntary accounting changes quantified as immaterial. Three things deserve attention: a ₹65 crore loan extended to a promoter-group company in April 2026, a ₹3.11 crore receivable that has aged three years without a provision, and disputed tax demands totalling \~₹9.64 crore with ₹7.85 crore paid under protest.
Key findings
- A ₹65 crore loan was extended to promoter-group entity Thirumalai Chemicals in April 2026
Major- Ultramarine & Pigments entered a loan agreement with Thirumalai Chemicals Ltd, a related party, on 30 April 2026 for ₹65 crore at 10% p.a. compounding quarterly with a three-year tenure; the two companies hold cross-shareholdings of 18.23% and 14.38%. The loan amount equals roughly 80% of FY2026 profit after tax. Royalty revenue from a wholly owned subsidiary rose from ₹1.37 crore in FY2025 to ₹1.84 crore in FY2026, while CSR spending to a promoter-linked trust was ₹1.4 crore in FY2025. - Disputed tax demands total \~₹9.64 crore, with ₹7.85 crore paid under protest
Minor- As at 31 March 2025, disputed income tax demands stood at ₹7.57 crore (₹7.57 crore deposited under protest), sales tax matters at ₹36.22 lakhs (₹27.81 lakhs paid under protest), and customs duty matters at 1.71 crore. A contractor’s IBC Section 9 application before NCLT Mumbai has remained pending for listing since FY2023, with the Group holding counter-claims of ₹80.88 lakhs. The Group’s EPCG export obligation was fully completed as at 31 March 2025. - A ₹3.11 crore receivable is classified as doubtful and has aged three years without a provision
Minor- Trade receivables include 3.11 crore classified as “Undisputed Trade Receivables - considered doubtful,” outstanding for 2-3 years as at 31 March 2025, with the provision unchanged from the prior year. The same amount was outstanding for 1-2 years as at 31 March 2024 and for less than six months as at 31 March 2023. In FY2024, the consolidated financial statements recorded a provision for doubtful receivables of ₹nil, indicating the provision was reversed rather than utilised. - Promoter family holds board and management control with multi-crore remuneration
Minor- Promoter shareholding stood at 40.49% as of 31 March 2026, with zero pledge across all reported periods. Two Managing Directors and one Whole-time Director received total remuneration of ₹4.66 crore, ₹3.74 crore, and ₹2.16 crore respectively in FY2026, with a 15% increase versus an 8% average increase for non-managerial employees. Three promoter-group members sought reclassification to public shareholders in October 2023; BSE approved the reclassification on 31 December 2024 with promoter holding unchanged at 40.86%. - Small voluntary accounting changes are quantified as immaterial, while a land compensation gain is partly offset by a labour-code estimate
Minor- In FY2023, the company revised the useful life of certain plant and equipment, increasing depreciation by ₹10.41 lakhs. In FY2022, it changed the packing-material valuation method from FIFO to weighted average, increasing stock value by ₹0.22 lakhs. Between FY2024 and FY2025, software amortisation was extended from three years to six years. In FY2026, the company recognised an exceptional net gain of ₹2.40 crore, comprising NHAI land-acquisition compensation of ₹5.97 crore less an estimated one-time past service cost of ₹3.57 crore for gratuity and compensated absences under the new Labour Codes. - Statutory auditor rotated from Brahmayya & Co. to Sundaram & Srinivasan in FY2025 after two five-year terms
Clean- Brahmayya & Co. completed two consecutive five-year terms and was not eligible for reappointment at the FY2024 AGM; the Board recommended Sundaram & Srinivasan, who were appointed at the 63rd AGM on 25 July 2024 for five years with 1,13,93,173 votes in favour and 1 vote against. No resignation of statutory auditors occurred during FY2024 or FY2026. Total consolidated fees paid to Sundaram & Srinivasan for FY2026 were ₹20.75 lakhs. - A simple two-entity wholly-owned subsidiary structure has been stable for four years
Clean- Ultramarine & Pigments held two wholly-owned subsidiaries across FY2023-FY2026: Ultramarine Specialty Chemicals Limited and Ultramarine Fine Chemicals Limited. USCL’s revenue grew from ₹16 crore in FY2023 to ₹74.17 crore in FY2026, with profit before tax of ₹10.87 crore. Ultramarine Fine Chemicals Limited had not commenced operations as of FY2026.
What to watch
- Inter-corporate loan repayment. The ₹65 crore loan to Thirumalai Chemicals Ltd, with compounding interest, is due by April 2029.
- APIIC title registration. Registration of the sale deed for 14.20 acres of land (gross carrying value 8.98 crore) was awaited as at 31 March 2025, following APIIC approval of the company's application during the year.
- Contractor’s IBC application. The Section 9 application before NCLT Mumbai was last reported as pending for listing in the FY2023 Annual Report.
- Doubtful receivable. The ₹3.11 crore “Undisputed Trade Receivables - considered doubtful” was outstanding for 2-3 years as at 31 March 2025.
- Managing Director term expiry. Mr. V. Bharathram’s current term as Managing Director expires on 31 July 2027.
Bottom line: This is a disclosed and consistently audited record with a simple group structure. The risk sits in two places: the ₹65 crore loan to Thirumalai Chemicals, which is material and ties up capital with a promoter-group entity until 2029, and the ₹3.11 crore doubtful receivable that has aged without a provision. Watch the loan repayment schedule and whether the receivable is finally provided for or collected.