Atul Ltd 2014-15

21 Directors’ Report Dear Members, The Board of Directors (Board) presents the Annual Report of Atul Ltd together with the audited statement of accounts for the year ended March 31, 2015. 2014-15 2013-14 Sales 2,510 2,307 Revenue from operations 2,556 2,365 Other income 15 40 Total revenue 2,571 2,405 Profit before tax 312 297 Provision for tax 95 84 Profit for the year 217 213 Profit available for appropriation 217 213 Balance brought forward 664 498 Disposable surplus 881 711 Appropriations General reserve - 21 Proposed dividend 25 22 Dividend distribution tax 5 4 Balance carried forward 851 664 1. Financial Results ( ` cr) 2. Performance Sales increased by 9% from ` 2,307 cr to ` 2,510 cr aided by both higher volumes (5%) and prices (4%). Sales in India increased by 7% from ` 1,199 cr to ` 1,283 cr. Sales outside India increased by 11% from ` 1,108 cr to ` 1,227 cr. PBT in previous year included ` 20 cr of one-time dividend received; including such one-time income, the Earning per share increased from ` 71.74 to ` 73.30. While the operating profit before working capital changes increased by 6% from ` 360 cr to ` 383 cr, the net cash flow from operating activities increased by 125% from ` 141 cr to ` 317 cr, mainly on account of the reduction in working capital and other current assets. Sales of Life Science Chemicals (LSC) Segment decreased by 8% from ` 738 cr to ` 676 cr, mainly because of lower sales in Crop Protection Business; its EBIT decreased by 21% from ` 150 cr to ` 119 cr. Sales of Performance and Other Chemicals (POC) Segment increased by 17% from ` 1,569 cr to ` 1,834 cr, supported by growth in Aromatics, Colors and Polymers Businesses; its EBIT increased by 40% from ` 173 cr to ` 242 cr. More details are given in the Management Discussion and Analysis (MDA) Report. The Company reduced its borrowings (including current maturities on long-term borrowings) by 20% from ` 351 cr to ` 281 cr despite the growth in sales and payments towards capital expenditure of ` 192 cr. The Company improved its credit rating from ‘AA‘ (double A) to ‘AA+’ (double A plus) for its long-term borrowings awarded by Credit Analysis & Research Ltd (CARE). Its rating for short-term borrowings and commercial paper remained at ‘A1+’ (A1 plus), the highest possible awarded by CARE. The Company completed 4 projects with an investment of ` 33 cr which are expected to generate sales of ` 143 cr at full capacity utilisation. 3. Dividend The Board recommends payment of dividend of ` 8.50 per share on 2,96,61,733 Equity shares of ` 10 each fully paid up. The dividend will entail an outflow of ` 30.34 cr (including dividend distribution tax) on the paid-up Equity share capital of ` 29.66 cr. 4. C onservation of energy, technology absorption, foreign exchange earnings and outgo Information required under Section 134 (3) (m) of the Companies Act, 2013, 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 26. 5. Insurance The Company has taken adequate insurance to cover the risks to its people, plants and machineries, buildings and other assets, profit and third parties.