Atul Ltd 2017-18

19 Dear Members, The Board of Directors (Board) presents the Annual Report of Atul Ltd together with the audited Financial Statements for the year ended March 31, 2018. 01. Financial results ( ` cr ) 2017-18 2016-17 Sales 3,050 2,639 Revenue from operations 3,148 2,848 Other income 38 43 Total revenue 3,186 2,891 Profit before tax 397 400 Provision for tax 127 115 Profit for the year 270 285 Balance brought forward 1,397 1,145 Transfer from Comprehensive Income 3 3 Disposable surplus 1,670 1,433 Less: Dividend paid 30 30 Dividend distribution tax (net) 3 6 Balance carried forward 1,637 1,397 02. Performance Sales increased by 16% from ` 2,639 cr to ` 3,050 cr mainly due to higher volumes (12%) and prices (4%). Sales in India increased by 24% from ` 1,239 cr to ` 1,536 cr. Sales outside India increased by 8% from ` 1,400 cr to ` 1,514 cr. The Earnings per share decreased from ` 96.18 to ` 91.16. Cash flow from operating activities before working capital changes marginally decreased by 1% from ` 485 cr to ` 480 cr and the net cash flow from operating activities decreased by 12% from ` 370 cr to ` 325 cr. Sales of Life Science Chemicals (LSC) Segment increased by 27% from ` 807 cr to ` 1,026 cr, mainly because of higher sales in Sub-segments Crop Protection and Pharmaceuticals; its EBIT decreased by 8% from ` 130 cr to ` 120 cr. Sales of Performance and Other Chemicals (POC) Segment increased by 10% from ` 1,832 cr to ` 2,024 cr mainly because of higher sales in Sub-segments Aromatics - II and Polymers; its EBIT decreased by 3% from ` 290 cr to ` 281 cr. More details are given in the Management Discussion and Analysis (MDA) Report. The Company fully repaid entire borrowings of ` 155 cr despite payment towards capital expenditure of ` 114 cr during the year. Credit Analysis and Research Ltd (CARE) maintained its credit rating at ‘AA+’ (double A plus) for long-term borrowings of the Company. Its rating for short-term borrowings and commercial paper remained at ‘A1+’ (A1 plus), the highest possible awarded by CARE. 03. Dividend The Board recommends payment of dividend of ` 12 per share on 2,96,61,733 equity shares of ` 10 each fully paid up. The dividend will entail an outflow of ` 42.91 cr {including dividend distribution tax (net)} on the paid-up Equity share capital of ` 29.66 cr. 04. Conservation of energy, technology absorption, foreign exchange earnings and outgo Information required under Section 134 (3) (m) of the Companies Act, 2013, read with Rule 8 (3) of the Companies (Accounts) Rules, 2014, as amended from time to time, forms a part of this Report which is given at page number 24. 05. Insurance The Company has taken adequate insurance to cover the risks to its employees, property (land and buildings), plant, equipment, other assets and third parties. 06. Risk Management Risk Management is an integral part of business practices of the Company. The framework of Risk Management concentrates on formalising a system to deal with the most relevant risks, building on existing management practices, knowledge and structures. With the help of a reputed international consultancy firm, the Company has developed and implemented a comprehensive Risk Management System to ensure that risks to the continued existence of the Company as a going concern and to its growth are identified and remedied on a timely basis. While defining and developing the formalised Risk Management System, leading standards and practices have been considered. The Risk Management System is relevant to business reality, pragmatic and simple and involves the following: Directors’ Report