Atul Ltd 2018-19

1. Philosophy Transparency and accountability are the two basic tenets of Corporate Governance. Atul is proud to belong to a Group whose Founder lived his life with eternal Values and built the business enterprises on the foundation of good governance. The Company is committed to conducting business the right way, which means taking decisions and acting in a way that is ethical and in compliance with the applicable legal requirements. It endeavours to continuously improve its Corporate Governance performance with a view to earn trust and respect of all its stakeholders. The Board of Directors (Board) is responsible for and is committed to good Corporate Governance and plays a critical role in overseeing how the Management serves the short and long-term interests of the shareholders and other stakeholders. 2. Board 2.1 Board business The normal business of the Board comprises: 2.1.1 Approving: i) appointment of the Cost Auditors ii) short, medium or long-term borrowings ĿĿĿȴ ČîƎĿƥîŕ ĚNJƎĚŠēĿƥƭƑĚ îŠē ūƎĚƑîƥĿŠij ċƭēijĚƥƙ iv) commission payable to the Directors within the limit set by the shareholders v) contracts in which the Director(s) are deemed to be interested vi) cost audit reports vii) creation of charge on assets in favour of lenders viii) declaration of interim dividend ĿNJȴ ŏūĿŠƥ DŽĚŠƥƭƑĚƙȡ ČūŕŕîċūƑîƥĿūŠƙȡ ŞĚƑijĚƑƙ îŠē îČƐƭĿƙĿƥĿūŠƙ NJȴ ŕūîŠƙ îŠē ĿŠDŽĚƙƥŞĚŠƥƙ NJĿȴ ŞîƥƥĚƑƙ ƑĚƐƭĿƑĿŠij ƙƥîƥƭƥūƑNj ʈ ūîƑē ČūŠƙĚŠƥ NJĿĿȴ ƙîŕĚ ūlj ĿŠDŽĚƙƥŞĚŠƥƙ îŠē îƙƙĚƥƙ NJĿĿĿȴ ƭŠîƭēĿƥĚē ƐƭîƑƥĚƑŕNj ǛŠîŠČĿîŕ ƑĚƙƭŕƥƙ îŠē îƭēĿƥĚē ƭîŕ îČČūƭŠƥƙȡ ċūƥĺ ČūŠƙūŕĿēîƥĚē îŠē ūŠ î ƙƥîŠēîŕūŠĚ ċîƙĿƙ including segment revenue, results and capital employed 2.1.2 Monitoring: Ŀȴ ƎūƥĚŠƥĿîŕ ČūŠǜĿČƥƙ ūlj ĿŠƥĚƑĚƙƥ ūlj ƥĺĚ qîŠîijĚŞĚŠƥȡ ƥĺĚ ūîƑē qĚŞċĚƑƙ îŠē ƥĺĚ ƙĺîƑĚĺūŕēĚƑƙȡ ĿŠČŕƭēĿŠij ŞĿƙƭƙĚ ūlj corporate assets and abuse in related party transactions ii) implementation of performance objectives and corporate performance iii) effectiveness of the governance practices and making desirable changes ĿDŽȴ ƥĺĚ ūîƑē ŠūŞĿŠîƥĿūŠ ƎƑūČĚƙƙ ƙƭČĺ ƥĺîƥ Ŀƥ Ŀƙ ƥƑîŠƙƎîƑĚŠƥ îŠē ƑĚƙƭŕƥƙ ĿŠ ēĿDŽĚƑƙĿƥNj ūlj ĚNJƎĚƑĿĚŠČĚȡ ijĚŠēĚƑȡ ŒŠūDžŕĚēijĚȡ perspective and thoughts in the Board v) the Management and providing strategic guidance while ensuring that encouraging positive thinking does not ƑĚƙƭŕƥ ĿŠ ūDŽĚƑȹūƎƥĿŞĿƙŞ ƥĺîƥ ĚĿƥĺĚƑ ŕĚîēƙ ƥū ƙĿijŠĿǛČîŠƥ ƑĿƙŒƙ Šūƥ ċĚĿŠij ƑĚČūijŠĿƙĚē ūƑ ĚNJƎūƙĚƙ ƥĺĚ ūŞƎîŠNj ƥū ĚNJČĚƙƙĿDŽĚ ƑĿƙŒ 2.1.3 Noting: i) general notices of interest of the Directors ii) minutes of the meetings of the Board and its committees and also the resolution(s) passed by circulation 63 Corporate Governance Report