Ushanti Colour Chem Limited fully deploys Rs 15.37 crore

Ushanti Colour Chem fully utilised the Rs 15.37 crore raised through its 12 February 2026 preferential issue by 30 September 2026, allocating Rs 6.84 crore to an investment or advance to its subsidiary, Rs 4.78 crore to working capital and Rs 3.75 crore to general corporate purposes.

How did Ushanti Colour Chem use the preferential-issue proceeds?

Ushanti Colour Chem used the full Rs 15.37 crore of preferential-issue proceeds across the three objects disclosed in its 28 January 2026 offer document. The utilisation certificate, covering the half year ended 30 September 2026, records Rs 15.37 crore as both the original allocation and funds utilised, with no unutilised balance. The company raised the amount through equity shares issued on a preferential basis on 12 February 2026.

The largest allocation, Rs 6.84 crore, was designated for an investment or advance to the subsidiary company. That represented about 44.5% of the Rs 15.37 crore issue amount, based on the disclosed allocations. Ushanti Colour Chem has one subsidiary, UC Colours and Intermediates Private Limited, according to the explanatory notes accompanying its half-yearly consolidated financial results for 30 September 2026.

The remaining Rs 8.53 crore was split between Rs 4.78 crore for funding working-capital requirements and Rs 3.75 crore for general corporate purposes. These accounted for about 31.1% and 24.4%, respectively, of the February 2026 proceeds. The certificate describes each of the three objects as fully utilised, rather than reporting an amount pending deployment after 30 September 2026.

What were Ushanti Colour Chem's original allocations?

Ushanti Colour Chem made no modification to the Rs 15.37 crore allocation plan set out for the 12 February 2026 preferential issue. The allocation and utilisation figures were identical for each object at 30 September 2026, while the modified-allocation column was marked nil. This provides a direct comparison between the stated use of funds and the reported use at the end of the reporting period.

The subsidiary-related allocation of Rs 6.84 crore exceeded the Rs 4.78 crore working-capital allocation by Rs 2.06 crore. It also exceeded the Rs 3.75 crore general-corporate-purpose allocation by Rs 3.09 crore. The disclosure labels the use as “investment/advance”, so it does not break the Rs 6.84 crore into separate investment and advance amounts.

Ushanti Colour Chem separately listed issue-related expenses of Rs 3.46212 lakh in the utilisation certificate. However, the same certificate states proceeds to be utilised at Rs 15.37 crore and reports the full Rs 15.37 crore as allocated and utilised. The filing does not provide a reconciliation between the stated issue expenses and the allocation total, so the reported figures should be read as presented.

Was there any deviation in Ushanti Colour Chem's use of funds?

Ushanti Colour Chem reported no deviation or variation from the objects stated in the 28 January 2026 offer document. For all three objects, the amount of deviation or variation was recorded as nil, and the certificate explicitly confirms that proceeds were used without deviation from the disclosed purposes. No shareholder approval date for a changed object was reported because the deviation fields were marked not applicable.

The certificate records nil comments from the audit committee after its review and nil comments from the auditors. It also lists a monitoring agency as not applicable. These are disclosure fields in the utilisation statement, and they do not provide a separate assessment of the business effect of deploying Rs 6.84 crore with the subsidiary or Rs 4.78 crore toward working capital.

For the half year ended 30 September 2026, Ushanti Colour Chem’s consolidated statement of assets and liabilities showed cash and cash equivalents of Rs 12.74 lakh, compared with Rs 7.28 crore at 31 March 2026. That balance-sheet movement is reported separately from the Rs 15.37 crore utilisation schedule, which confirms use by object but does not specify the dates, counterparties or payment tranches for the three allocations.

What other disclosures accompanied Ushanti Colour Chem's certificate?

Ushanti Colour Chem’s utilisation certificate was issued by DJNV & Co on 5 November 2026, the same date the company recorded its unaudited consolidated results for the half year ended 30 September 2026. The accounting firm certified the Rs 15.37 crore preferential issue and the nil deviation from the stated objects. The certificate identifies the issue date as 12 February 2026 and the covered reporting period as the half year ended 30 September 2026.

DJNV & Co also resigned as statutory auditor with effect from the close of business on 5 November 2026, stating that it planned to dissolve the firm and cease professional activities. The resignation letter said there were no other material reasons, no dispute, and no concern relating to suppression of information by management for audit procedures. The utilisation certificate and auditor resignation are both dated 5 November 2026, but the disclosures do not state that one event caused the other.

The half-yearly explanatory notes state that Ushanti Colour Chem operates in a single business segment and that Accounting Standard 17, Segment Reporting, does not apply. Consequently, the filing does not show segment-level revenue, profit or asset data that would separately measure the operating outcome of the Rs 4.78 crore working-capital deployment or the Rs 6.84 crore subsidiary investment or advance.

Conclusion

The 30 September 2026 utilisation disclosure shows that Ushanti Colour Chem completed deployment of all Rs 15.37 crore raised in February, with the largest Rs 6.84 crore allocation directed to an investment or advance to UC Colours and Intermediates Private Limited. The reported allocation, utilisation and unutilised figures match for all three objects, and the certificate records nil deviation, nil audit-committee comments and nil auditor comments.

The next disclosures to watch are those addressing the unresolved detail around the Rs 6.84 crore subsidiary allocation and Rs 4.78 crore working-capital allocation. The 30 September 2026 certificate does not identify transaction dates, counterparties, payment tranches or operational outcomes for those uses, while DJNV & Co’s resignation took effect on 5 November 2026 after it issued the utilisation certificate and half-year limited review.