Atul Ltd 2015-16

21 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, 2016. 01. Financial results ( ` cr ) 2015-16 2014-15 Sales 2,407 2,510 Revenue from operations 2,459 2,556 Other income 46 15 Total revenue 2,505 2,571 Profit before tax 393 312 Provision for tax 125 95 Profit for the year 268 217 Profit available for appropriation 268 217 Balance brought forward 851 664 Disposable surplus 1,119 881 Appropriations Proposed dividend 30 25 Dividend distribution tax (net) 2 5 Balance carried forward 1,087 851 02. Performance Sales decreased by 4% from ` 2,510 cr to ` 2,407 cr mainly due to lower prices (7%) partly offset by higher volumes (3%). Sales in India decreased by 6% from ` 1,283 cr to ` 1,202 cr. Sales outside India decreased by 2% from ` 1,227 cr to ` 1,205 cr. The Earning per share increased from ` 73.30 to ` 90.37. While the operating profit before working capital changes increased by 21% from ` 383 cr to ` 462 cr, the net cash flow from operating activities increased by 18% from ` 317 cr to ` 374 cr. Sales of Life Science Chemicals (LSC) Segment increased by 11% from ` 676 cr to ` 748 cr, mainly because of higher sales in Sub-segment Crop Protection; its EBIT increased by 45% from ` 119 cr to ` 173 cr. Sales of Performance and Other Chemicals (POC) Segment decreased by 10% from ` 1,834 cr to ` 1,659 cr mainly because of lower sales in Sub-segment Colors; its EBIT remained stagnant at ` 242 cr. More details are given in the Management Discussion and Analysis (MDA) Report. The borrowings of the Company increased marginally (including current maturities of long- term borrowings) by 8% from ` 281 cr to ` 303 cr despite payments towards capital expenditure of ` 363 cr. Credit Analysis and Research Ltd (CARE) maintained its credit rating at ‘AA+’ (double A plus) for long- term borrowings of the Company. Its rating for short- term borrowings and commercial paper remained at ‘A1+’ (A1 plus), the highest possible awarded by CARE. The Company completed 5 projects with an investment of ` 213 cr which are expected to generate sales of ` 530 cr at full capacity utilisation. 03. Dividend The Board recommends payment of dividend of ` 10 per share on 2,96,61,733 Equity shares of ` 10 each fully paid up. The dividend will entail an outflow of ` 32.14 cr {including dividend distribution tax (net)} on the paid-up Equity share capital of ` 29.66 cr. 04. Conservation 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. Directors’ Report