Atul Ltd 2010-11

Directors’ Report Dividend The Board recommends payment of dividend of ` 4.5 per share on 2,96,61,733 Equity Shares of ` 10 each fully paid up. The dividend will entail an outflow of ` 15.51 crores (including dividend distribution tax) on the paid-up Equity Share capital of ` 29.66 crores. Financial Performance Net sales increased by 29% to ` 1508 crores. While Life Science Chemicals segment grew by 28% to ` 492 crores, Performance & Other Chemicals segment grew by 30% to ` 1016 crores. Profit after tax increased from ` 53 crores to ` 96 crores. Higher profit was mainly on account of higher sales resulting from volume growth of around 16%. The return on average capital employed improved from 13% to 18%. Interest to sales ratio reduced from 2.2% in the previous year to 1.7%. Borrowings increased by ` 33 crores as a result of higher working capital employed due to growth in sales and also payments towards capital expenditure of ` 47 crores. During the year, CARE upgraded credit rating to PR1+ (from PR1 in the previous year) for short-term debts and to A (from A- in the previous year) for long-term debts of the Company. Insurance The Company has taken adequate insurance to cover the risks to its people, plant and machineries, buildings and other assets, profits and third parties. Directors According to Article 134 of the Articles of Association of the Company, Mr H S Shah, Dr S S Baijal and Dr K Aparajithan retire by rotation and being eligible offer themselves for reappointment at the forthcoming Annual General Meeting scheduled on August 4, 2011. Corporate Governance A Report on Corporate Governance along with a certificate from the Statutory Auditors regarding compliance of the conditions of Corporate Governance pursuant to Clause 49 of the Listing Agreement is annexed. Dear Members, The Board of Directors presents the Annual Report of Atul together with the audited statement of accounts for the year ended March 31, 2011. Financial results ( ` crores) 2010-11 2009-10 Net sales and operating income 1548 1198 Other income 6 6 Total revenues 1554 1204 Profit before tax and exchange rate difference 148 89 Exchange rate difference income | (expense) (9) (9) Profit before tax 139 80 Provision for tax 43 27 Profit for the year 96 53 Tax adjustments for the earlier years (6) 4 Profit available for appropriation 90 57 Balance brought forward 265 227 Disposable surplus 355 284 Appropriations General reserve 5 5 Proposed dividend 14 12 Dividend distribution tax on above 2 2 Balance carried forward 334 265 22 | 23