Atul Ltd 2011-12

27 Dear Members, The Board of Directors presents the Annual Report of Atul together with the audited statement of accounts for the year ended March 31, 2012. Financial results ( ` cr) 2011-12 2010-11 Revenue from operations 1795 1534 Other income 12 19 Total revenues 1807 1553 Profit before tax and exchange rate difference 134 148 Exchange rate difference - expense 12 9 Profit before tax 122 139 Provision for tax 34 43 Profit for the year 88 96 Tax adjustments for the earlier years - (6) Profit available for appropriation 88 90 Balance brought forward 334 265 Disposable surplus 422 355 Appropriations General reserve 9 5 Proposed dividend 14 14 Dividend distribution tax 2 2 Balance carried forward 397 334 Dividend The Board recommends payment of dividend of ` 4.50 per share on 2,96,61,733 Equity Shares of ` 10 each fully paid-up. The dividend will entail an outflow of ` 15.52 cr (including dividend distribution tax) on the paid-up Equity Share capital of ` 29.66 cr. Financial Performance Net sales grew by 17% to ` 1761 cr including a growth of 21% in exports and 14% in domestic market. However, the margins were under pressure and reduced slightly; the PBT before exceptional items reduced from ` 129 cr to ` 116 cr. The reduction in profitability was mainly on account of increase in input prices, fixed costs, exchange loss and interest. During the year, CARE assigned CARE A1+ rating to the proposed CP issue. CARE also upgraded credit rating to CARE A+ (from CARE A in the Previous year) for long-term debts, while maintaining top notch CARE A1+ for short-term debts. Insurance The Company has taken adequate insurance to cover the risks to its people, plant and machineries, buildings and other assets, profits and third parties. Directors According to Article 134 of the Articles of Association of the Company, Mr G S Patel, Mr B S Mehta and Mr B N Mohanan retire by rotation and being eligible offer themselves for reappointment at the forthcoming Annual General Meeting scheduled on July 27, 2012. Corporate Governance A Report on Corporate Governance along with a certificate from the Statutory Auditors regarding compliance of the conditions of Corporate Governance pursuant to Clause 49 of the Listing Agreement is annexed. Directors’ Report