Atul Ltd 2019-20

Corporate Overview Statutory Reports Financial Statements 01-21 22-91 92-228 22 Atul Ltd | Annual Report 2019-20 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, 2020. 01. Financial results ( ` cr ) 2019-20 2018-19 Sales 3,824 3,845 Revenue from operations 3,906 3,916 Other income 77 31 Total revenue 3,983 3,947 Profit before tax 803 652 Provision for tax 163 223 Profit for the year 640 429 Balance brought forward 2,026 1,637 Transfer from comprehensive income (2) - Disposable surplus 2,664 2,066 Less: Dividend paid 126 36 Dividend distribution tax (net ) 25 4 Balance carried forward 2,513 2,026 02. Performance Sales decreased by 1% from ` 3,845 cr to ` 3,824 cr mainly due to negative price realisation. Sales in India increased by 3% from ` 1,937 cr to ` 1,985 cr. Sales outside India decreased by 4% from ` 1,908 cr to ` 1,839 cr. The earnings per share increased by 49% from ` 144.51 to ` 215.82. Cash flow from operating activities before working capital changes increased by 13% from ` 770 cr to ` 869 cr and the net cash flow from operating activities increased by 115% from ` 397 cr to ` 852 cr. Sales of Life Science Chemicals (LSC) segment decreased by 9% from ` 1,289 cr to ` 1,174 cr, mainly because of lower prices in sub-segments Aromatics-I and Crop Protection; its EBIT decreased by 2% from ` 217 cr to ` 213 cr. Sales of Performance and Other Chemicals (POC) segment increased by 4% from ` 2,556 cr to ` 2,650 cr, mainly because of higher sales in sub-segments Colors and Bulk Chemicals and Intermediates; its EBIT increased by 28% from ` 453 cr to ` 579 cr. More details are given in the Management Discussion and Analysis (MDA) Report. 03. Dividend The Board declared special interim dividend of ` 12.5 per share on 2,96,61,733 equity shares of ` 10 each fully paid-up to commemorate the 125 th birth anniversary of the illustrious Founder Mr Kasturbhai Lalbhai. The dividend entailed an outflow of ` 44.70 cr {including dividend distribution tax (net)} on the paid-up equity share capital of ` 29.66 cr. The Board also declared interim dividend of ` 15 per share on 2,96,61,733 equity shares of ` 10 each fully paid-up. The dividend entailed an outflow of ` 53.19 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, (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 27. 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 the Risk Management Committee effective April 01, 2019.