Atul Ltd 2021-22

24 Atul Ltd | Annual Report 2021-22 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, 2022. 01. Financial results (` cr) 2021-22 2020-21 Sales 4,929 3,460 Revenue from operations 4,993 3,512 Other income 90 104 Total revenue 5,083 3,616 Profit before tax 804 828 Tax expenses (196) (197) Profit for the year 608 631 Balance in retained earnings at the beginning of the year 3,143 2,513 Transfer from comprehensive income (28) (1) Dividend (59) - Balance in retained earnings at the end of the year 3,664 3,143 02. Performance Sales increased by about 42% from ` 3,460 cr to ` 4,929 cr mainly due to higher price levels (of both inputs and finished goods) in 2021-22 and also because of the low sales in Q1 of 2020-21 on account of the COVID-19 pandemic. Sales in India increased by about 32% from ` 1,885 cr to ` 2,479 cr. Sales outside India increased by about 56% from ` 1,575 cr to ` 2,450 cr. Profit before tax decreased by 3% from ` 828 cr to ` 804 cr, mainly due to non-recurring dividend income of ` 55 cr received in 2020-21. Sales of Life Science Chemicals (LSC) segment increased by 29% from ` 1,124 cr to ` 1,445 cr, mainly because of higher sales prices and volume in the sub-segments Crop Protection and Pharmaceuticals; the EBIT decreased by about 4% from ` 199 cr to ` 191 cr. Sales of Performance and Other Chemicals (POC) segment increased by about 49% from ` 2,336 cr to ` 3,484 cr, mainly because of higher sales volume in three sub-segments; the EBIT increased by about 2% from ` 574 cr to ` 586 cr. More details are given in the Management Discussion and Analysis. 03. Dividend and buy-back of equity shares The Board recommends payment of dividend of ` 25 per equity share of ` 10 each fully paid-up. During 2021-22, the Board approved ` 70 cr for buy-back of equity shares through the open market stock exchange route to return surplus funds to the members of the Company and to improve earnings per share by a decrease in the equity base, thereby leading to an long-term increase in value for the members. Till date 53,748 equity shares are bought back at an aggregate consideration of ` 52.72 cr. The buy-back is still in process. 04. Conservationof energy, technologyabsorption, 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 30. 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 Risk management is an integral part of business practice of the Company. The framework of risk management concentrates on formalising a system to

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