Atul Ltd 2013-14

25 Dear Members, The Board of Directors (Board) presents the Annual Report of Atul Ltd together with the audited statement of accounts for the year ended March 31, 2014. Financial Results ( ` cr) 2013-14 2012-13 Sales 2,307 1,964 Revenue from operations 2,365 2,001 Other income 40 21 Total revenue 2,405 2,022 Profit before tax 297 192 Provision for tax 84 56 Profit for the year 213 136 Tax adjustments for the earlier years - - Profit available for appropriation 213 136 Balance brought forward 498 397 Disposable surplus 711 533 Appropriations General reserve 21 14 Proposed dividend 22 18 Dividend distribution tax 4 3 Balance carried forward 664 498 Performance Sales increased by 17% from ` 1,964 cr to ` 2,307cr aided by both higher volumes (8%) and prices (9%). Sales in India increased by 22% from ` 986 cr to ` 1,199 cr. Sales outside of India increased by 13% from ` 978 cr to ` 1,108 cr. Revenue from operations increased by 18% from ` 2,001 cr to ` 2,365 cr. PBT for the year includes about ` 20 cr of one-time special dividend income received; including such special income, the earnings per share increased from ` 45.69 to ` 71.74. While the operating profit before working capital changes increased by 38% from ` 260 cr to ` 360 cr, the net cash flow from operating activities declined by 16% from ` 167 cr to ` 141 cr mainly on account of the growth in working capital consequent to the higher level of sales achieved. Both the Segments of the Company, namely, Life Science Chemicals Segment (LSC) and Performance and Other Chemicals Segment (POC) showed improvement in performance. The sales of LSC increased by 6% from ` 699 cr to ` 738 cr, aided by higher sales of Crop Protection and Pharmaceuticals and Intermediates and its EBIT increased by 8% from ` 139 cr to ` 150 cr. The sales of POC increased by 24% from to ` 1,265 cr ` 1,569 cr, supported by growth in Colors and Polymers and its EBIT increased from ` 90 cr to ` 173 cr. More details are given in the ‘Management Discussion and Analysis’ Report. The Company reduced its borrowings (including current maturities on long-term borrowings) by 1% from ` 355 cr to ` 351 cr despite the growth in working capital to support higher sales and payments towards capital expenditure of about ` 100 cr. The Company improved its credit rating from ‘AA-‘ (double A minus) to ‘AA’ (double A) for its long-term borrowings, awarded by CARE. Its rating for short-term borrowings and commercial paper remained at A1+, the highest possible, awarded by CARE. The Company is in the process of implementing 33 projects with a total outlay of about ` 480 cr; these projects are expected to be commissioned in during 2014-15 and 2015-16. It completed 14 projects related to environment protection during 2013-14 and is expected to complete 8 more projects for reducing and treating pollutants. Dividend The Board recommends payment of dividend of ` 7.50 per share on 2,96,61,733 Equity Shares of ` 10 each fully paid- up. The dividend will entail an outflow of ` 26 cr (including dividend distribution tax) on the paid-up Equity Share capital of ` 29.66 cr. Management Discussion and Analysis Management Discussion and Analysis covering performance of the two Reporting Segments, namely, Life Science Chemicals and Performance and Other Chemicals, is given at page no 27 to 33. Directors’ Report