Atul Ltd 2018-19

5.4 Related party transactions The Company has formulated a Related Party Transactions Policy and the same is disclosed on the website of the Company at https://www.atul.co.in/investors/policies 5.5 ‘Material’ subsidiary companies The Company has formulated a policy for determining ‘material’ subsidiary companies and the same is disclosed on the website of the Company at https://www.atul.co.in/investors/policies 5.6 Familiarisation programs The details of Familiarisation programs imparted to Independent Directors are disclosed on the website of the Company at https://www.atul.co.in/investors/policies 5.7 Commodity price risk or foreign exchange risk and hedging activities i) Risk management policy on commodities including through hedging The Company has in place a Risk Management Policy and mechanism to assess risks, periodically review it and steps are taken to mitigate the risks. The Company uses certain raw materials, which are derivatives of various commodities, from various sources, for manufacturing products of the Company. Hedging products are not available for the major chemicals purchased by the Company. However, for minimising procurement risk for short duration, the Company enters into annual purchase contracts for key raw materials linked to input costs | published benchmark prices. ĿĿȴ /ǊƎūƙƭƑĚ ūlj ƥĺĚ ūŞƎîŠǋ ƥū ČūŞŞūēĿƥǋ îŠē ČūŞŞūēĿƥǋ ƑĿƙŒƙ ljîČĚē ƥĺƑūƭijĺūƭƥ ƥĺĚ ǋĚîƑȠ s ĿĿĿȴ GūƑĚĿijŠ ĚǊČĺîŠijĚ ƑĿƙŒƙ îƑĚ ƥƑîČŒĚē îŠē ŞîŠîijĚē ǅĿƥĺĿŠ ƥĺĚ ƑĿƙŒ ŞîŠîijĚŞĚŠƥ ljƑîŞĚǅūƑŒȦ ¬ĺūƑƥȹƥĚƑŞ ljūƑĚĿijŠ ČƭƑƑĚŠČǋ îƙƙĚƥ ȹ ŕĿîċĿŕĿƥǋ ŞĿƙŞîƥČĺ Ŀƙ ČūŠƥĿŠƭūƭƙŕǋ ŞūŠĿƥūƑĚē îŠē ĺĚēijĚēȦ ¹ĺĚ ljūƑĚĿijŠ ĚǊČĺîŠijĚ ŞîƑŒĚƥ Ŀƙ ĺĿijĺŕǋ regulated and the Company ensures compliance with all the regulations. 5.8 Credit ratings ƑĚēĿƥ ŠîŕǋƙĿƙ îŠē ¤ĚƙĚîƑČĺ gƥē ŞîĿŠƥîĿŠĚē Ŀƥƙ ČƑĚēĿƥ ƑîƥĿŠij îƥ Ƀ ɤɄ ȳēūƭċŕĚ Ǝŕƭƙȴ ljūƑ ŕūŠijȹƥĚƑŞ ċūƑƑūǅĿŠijƙ ūlj ƥĺĚ ūŞƎîŠǋȦ Tƥƙ ƑîƥĿŠij ljūƑ ƙĺūƑƥȹƥĚƑŞ ċūƑƑūǅĿŠijƙ îŠē ČūŞŞĚƑČĿîŕ ƎîƎĚƑ ƑĚŞîĿŠĚē îƥ Ƀ ǧɤɄ ȳ ǧ ƎŕƭƙȴȦ ǬȦ ljǛƑŞîƥĿūŠ îŠē ēĿƙČŕūƙƭƑĚ ¹ĺĚƑĚ ǅĚƑĚ Šū ŞîƥĚƑĿîŕŕǋ ƙĿijŠĿǛČîŠƥ ƑĚŕîƥĚē ƎîƑƥǋ ƥƑîŠƙîČƥĿūŠƙȡ ƎĚČƭŠĿîƑǋ ƥƑîŠƙîČƥĿūŠƙ ūƑ ƑĚŕîƥĿūŠƙĺĿƎƙ ċĚƥǅĚĚŠ ƥĺĚ Company and its Directors or the Management and their subsidiary companies or relatives, among others, during ǨǦǧǮȹǧǯ ƥĺîƥ Şîǋ ĺîǄĚ î ƎūƥĚŠƥĿîŕ ČūŠǜĿČƥ ǅĿƥĺ ƥĺĚ ĿŠƥĚƑĚƙƥƙ ūlj ƥĺĚ ūŞƎîŠǋ îƥ ŕîƑijĚȦ ŕŕ ēĚƥîĿŕƙ ƑĚŕîƥĿŠij ƥū ǛŠîŠČĿîŕ and commercial transactions where the Directors may have a pecuniary interest are provided to the Board and the interested Directors neither participate in the discussion nor vote on such matters. The Company complied with the statutory provisions, rules and regulations relating to the capital markets during the ŕîƙƥ ƥĺƑĚĚ ǋĚîƑƙ îŠē ƥĺĚ ¬ƥūČŒ /ǊČĺîŠijĚƙ ūƑ ƥĺĚ ¬ĚČƭƑĿƥĿĚƙ îŠē /ǊČĺîŠijĚ ūîƑē ūlj TŠēĿî ūƑ îŠǋ ƙƥîƥƭƥūƑǋ îƭƥĺūƑĿƥǋ ēĿē not impose any penalties or strictures on the Company for the said period. Corporate Overview 01-22 Statutory Reports 23-105 Financial Statements 107-250 76 Atul Ltd | Annual Report 2018-19