Atul Ltd 2008-09

6 “At Atul, we have interpreted the ongoing downturn in key markets as an opportunity: an opportunity to raise the efficiency and productivity bar; an opportunity to work more closely with end customers and an opportunity to introduce value added products. We are looking forward to the impending growth and at the same time we are fortifying the Company for the decades ahead by bringing out the best in us…” - Sunil S Lalbhai The world passed through an unprecedented economic meltdown, reflected in the sharp decline in confidence, demand, earnings, fresh investments and growth across most sectors. This is evident from the performance of the major economies. India though relatively less affected given the internal demand had to suffer because of the high price of crude oil for almost 3 quarters of the year. Indian Re moved differently against the US$ than most anticipated. These two developments adversely affected many companies in India. In the midst of these vagaries, we continued our drive to improve our performance. Even as our performance was nowhere close to where it ought to be, I trust you will take a note of the following numbers which reflect a change for the better: 1) Operating revenues grew by 17% to Rs1,181 crores 2) Contribution improved by 46% to Rs354 crores 3) Profit before forex impact and tax rose by 219% to Rs90 crores 4) Borrowing came down to Rs368 crores from Rs428 crores What the numbers above do not reveal is that even while reducing the borrowing, we have already spent Rs72 crores during the year on several projects, the benefits of which will accrue in the years ahead. Please find below the increase in capacity in a few key products: 1) A crop protection product by 1500 MT or 14% 2) A fragrance intermediate by 2400 MT or 40% 3) A chemical intermediate by 1000 MT or 71% 4) A composite intermediate by 540 MT or 68% More importantly, we remained steadfast in our resolve to build Atul for the coming decades and accordingly continued with several initiatives to secure the future. The numbers and the percentages above thus do not convey the real potential of the Company, and we are yet to witness the best. Dear friends, Overview by the Chairman