Atul Ltd 2018-19

Directors’ Report 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, 2019. 01. Financial results ( ` cr ) 2018-19 2017-18 Sales 3,845 3,052 Revenue from operations 3,916 3,148 Other income 31 38 Total revenue 3,947 3,186 ¡ƑūǛƥ ċĚljūƑĚ ƥîNJ 652 397 ¡ƑūDŽĿƙĿūŠ ljūƑ ƥîNJ 223 127 ¡ƑūǛƥ ljūƑ ƥĺĚ NjĚîƑ 429 270 Balance brought forward 1,637 1,397 Transfer from comprehensive income - 3 Disposable surplus 2,066 1,670 Less: Dividend paid 36 30 'ĿDŽĿēĚŠē ēĿƙƥƑĿċƭƥĿūŠ ƥîNJ ȳŠĚƥ ȴ 4 3 Balance carried forward 2,026 1,637 02. Performance Sales increased by 26% from ` 3,052 cr to ` 3,845 cr mainly due to better price realisation. Sales in India increased by 26% from ` 1,538 cr to ` 1,937 cr. Sales outside India increased by 26% from ` 1,514 cr to ` 1,908 cr. The earnings per share increased from ` 91.16 to ` ǧǪǪȦǫǧȦ îƙĺ ǜūDž ljƑūŞ operating activities before working capital changes increased by 60% from ` 480 cr to ` 770 cr and the ŠĚƥ Čîƙĺ ǜūDž ljƑūŞ ūƎĚƑîƥĿŠij îČƥĿDŽĿƥĿĚƙ ĿŠČƑĚîƙĚē ċNj 22% from ` 325 cr to ` 397 cr. Sales of Life Science Chemicals (LSC) segment increased by 26% from ` 1,027 cr to ` 1,289 cr, mainly because of higher sales in sub-segments Aromatics-I, Crop Protection and Pharmaceuticals; its EBIT increased by 81% from ` 120 cr to ` 217 cr. Sales of Performance and Other Chemicals (POC) segment increased by 26% from ` 2,025 cr to ` 2,556 cr mainly because of higher sales in sub-segments Aromatics - II and Polymers; its EBIT increased by 61% from ` 281 cr to ` 453 cr. More details are given in the Management Discussion and Analysis (MDA) Report. 03. Dividend The Board recommends payment of dividend of ` 15 per share on 2,96,61,733 equity shares of ` 10 each ljƭŕŕNj ƎîĿēȹƭƎȦ ¹ĺĚ ēĿDŽĿēĚŠē DžĿŕŕ ĚŠƥîĿŕ îŠ ūƭƥǜūDž ūlj ` ǫǩȦǬǪ ČƑ ȯĿŠČŕƭēĿŠij ēĿDŽĿēĚŠē ēĿƙƥƑĿċƭƥĿūŠ ƥîNJ ȳŠĚƥ ȴȰ 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, (the Act ) 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 29. 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 The Board has constituted Risk Management Committee effective April 01, 2019. 23