Atul Ltd 2018-19

The products falling under these product groups are used by customers belonging to Aerospace, Automobile, Composites, Construction, Defence, Electrical and Electronics, Footwear, Paint and Coatings, Paper, Sport and Leisure andWind Energy industries. The product groups comprise about 96 synthetic products and 300 formulations. B11, P62 and P101 are some of the key products. Synthetic îŠē ljūƑŞƭŕîƥĚē ƎƑūēƭČƥƙ îƑĚ ǄĚƑƙîƥĿŕĚ îŠē ĺîƙ ƙĿijŠĿǛČîŠƥ applications in Aerospace, Automobile, FRP Composites, Wind Energy, Electrical and Electronics, Paint and Coatings, Construction, Defence, Sport and Leisure and Paper industries. During 2018-19, sales increased by 22% from ` 858 cr to ` 1,048 cr. Sales in India increased by 23% from ` 580 cr to ` 711 cr; bulk sales in India increased by 22% from ` 487 cr to ` 593 cr, whereas retail sales increased by 27% from ` 93 cr to ` 118 cr. Sales outside India increased by 21% from ` 278 cr to ` 337 cr and formed 32 % of the total. Growth on account of volume was 5%. ¹ĺĚ ǅūƑŕē ŞîƑŒĚƥ ljūƑ ĚƎūǊǋ ƑĚƙĿŠƙ îŠē ČƭƑĿŠij îijĚŠƥƙ Ŀƙ estimated at US$ 7.3 bn and is growing at about 2% and Indian market is estimated at US$ 285 mn and is growing at about 6%. There are about seven major companies which dominate the world marketplace. The world market for sulfones (curing agents) is estimated at US$ 367 mn and is growing at about 5%. Internal control systems of the Company are commensuratewith the nature of its business îŠē ƙĿǕĚ îŠē ČūŞƎŕĚǊĿƥǋ ūlj Ŀƥƙ ūƎĚƑîƥĿūŠƙȦ ¹ĺĚ controls, based on the prevailing business conditions and processes, are tested during the year and no reportable material weakness in the design or effectiveness was observed. The Company has an in-house Internal Audit department ČūŠƙĿƙƥĿŠij ūlj ƎƑūljĚƙƙĿūŠîŕŕǋ ƐƭîŕĿǛĚē ŞîŠîijĚƑƙȦ Tƥ ĺîƙ The user industries, Construction, Defence, Electrical and Electronics, Paint and Coatings are growing well particularly in India. The Company will participate in this growth by i) widening its market reach, ii) increasing its manufacturing îŠē ǅūƑŒĿŠij ČîƎĿƥîŕ ĚljǛČĿĚŠČĿĚƙȡ ĿĿĿȴ ijĚŠĚƑîƥĿŠij îŠē îēēĿŠij ŠĚǅ ČîƎîČĿƥĿĚƙ ūlj ĚƎūǊǋ ƑĚƙĿŠ îŠē ČƭƑĿŠij îijĚŠƥƙ ċǋ ūƑijîŠĿČ and inorganic mode. Cheaper imports and new players in the market will keep the market competitive and may keep the margins under pressure. Since the two main raw materials, namely ĿƙƎĺĚŠūŕȹ îŠē /ƎĿČĺŕūƑūĺǋēƑĿŠȡ îƑĚ ĿŞƎūƑƥĚēȡ ǜƭČƥƭîƥĿūŠƙ ĿŠ ljūƑĚĿijŠ ĚǊČĺîŠijĚ Şîǋ ĿŞƎîČƥ ŞîƑijĿŠƙȦ also ĚŠijîijĚē ƥĺĚ ƙĚƑǄĿČĚƙ ūlj ƑĚƎƭƥĚē ǛƑŞƙ ƙƎĚČĿîŕĿƙĿŠij in Internal Audits. The Internal Audit function provides assurance to the Audit Committee on the adequacy and effectiveness of internal controls and compliance with operating systems at all locations of the Company, its subsidiary and joint venture companies. Internal audits are also carried out for Atul Foundation and entities overseen by ĿƥȦ ¹ĺĚ ūƎĚƑîƥĿŠij ĚljljĚČƥĿǄĚŠĚƙƙ ūlj ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ Ŀƙ îŕƙū ƥĚƙƥĚē ēƭƑĿŠij ČūƭƑƙĚ ūlj ĚîČĺ îƭēĿƥȦ eĚǋ îƭēĿƥ ǛŠēĿŠijƙ POLYMERS Product groups: Epoxy Resins, Curing agents, Reactive diluents, Sulfones, Protective paints and Adhesives based on Epoxy, Synthetic rubber, Polyurethane, Cyanoacrylate, PVC and PVA. INTERNAL CONTROL SYSTEMS Corporate Overview 01-22 Statutory Reports 23-105 Financial Statements 107-250 60 Atul Ltd | Annual Report 2018-19