Atul Ltd 2008-09

| Annual Report 2008-09 29 declined towards the end of the year). Libor rates declined and the interest rates linked to them also declined resulting in savings. Efforts are on to shrink the interest as a % of sales through improvement in working capital efficiency and higher utilisation of assets as well as replacement of high-cost debt with cheaper loans. The Company follows a prudent financial policy and aims to maintain an optimum financial gearing. The debt to equity ratio was 0.87 as at March 31, 2009. The Company repaid loans of Rs61 crores (net) during the year. Loans taken were used for the purpose that they were sanctioned for by the respective banks or financial institutions. The Company takes forward contracts and uses other basic derivative products from time to time as permitted by the RBI to cover its net exports. These are purely based on the actual exposure or likely future anticipated export receivables, but never in the nature of speculation. The Company does not hold or issue derivative financial instruments for trading or speculative purposes and all derivative transactions entered into by the Company are to mitigate or offset the risks that arise from normal business activities only. The Board wishes to thank the banks and financial institutions for their continued support in meeting various long-term, short-term and emerging credit needs. Insurance The Company took adequate insurance to cover the risks to its assets, profits, employees and third parties. Directors Mr J L Shah resigned as an Executive Director with effect from December 31, 2008; the Board places on record its appreciation for the contribution made by Mr Shah. Mr B N Mohanan was appointed as an Additional Director (Wholetime) on January 01, 2009. According to Article 134 of the Articles of Association of the Company, Dr K Aparajithan and Mr G S Patel retire by rotation and being eligible offer themselves for reappointment at the forthcoming Annual General Meeting scheduled on August 07, 2009. Corporate Governance A Report on Corporate Governance along with a certificate from the Auditors of the Company regarding compliance of the conditions of Corporate Governance pursuant to Clause 49 of the Listing Agreement is annexed. Fixed deposits As at March 31, 2009, fixed deposits amounting to Rs38 lacs were not claimed by the depositors from the Company. The fixed deposits which matured on or before March 31, 2002, but remained outstanding since then were transferred to the Investor Education & Protection Fund as required under Section 205 C of the Companies Act, 1956. Information regarding conservation of energy, technology absorption, foreign exchange earnings and outgo, employees and subsidiary companies Information required under Section 217(1)(e) of the Companies Act, 1956, read with Rule 2 of the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 and information as per Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, as amended from time to time, forms a part of this Report. However, as per the provisions of Section 219(1)(b)(iv), the Report and accounts are being sent to all the Members of the Company excluding the information relating to conservation of energy, technology absorption, foreign exchange earnings and outgo and the statement of particulars of employees. Any shareholder interested in obtaining such particulars may inspect the same at the registered office of the Company or write to the Company Secretary for a copy. The Company has five wholly-owned subsidiary companies namely, Ameer Trading Corporation Limited, Atul Americas Inc., Atul Deutschland GmbH, Atul Europe Limited and Atul International Trading (Shanghai) Co. Limited. The Company got exemption from attaching the details as provided under Section 212(1) of the Companies