Remain lean on fixed cost and conserve cash while evolving the future (measure performance by free cash flow). The financial position* of our Company even in these tumultuous times is strong; we are working to make it stronger: Our Company is debt-free; it has cash surplus of ` 269 cr (net of debt of its subsidiary and JV entities). Osia Infrastructure, a 100% subsidiary and Rudolf Atul Chemicals are debt-free. Atul Products has taken an external debt of ` 158 cr. Its debt equity ratio is 0.2. Atul Bioscience is expected to bring down its debt of ` 55 cr to ` 45 cr in 2024-25. Its debt equity is 0.8. DPD has a debt of £ 0.5 m and is expected to become debt-free in 2024-25. Its debt equity is 0.1. Atul Rajasthan Date Palms, 74-26 JV with the Government of Rajasthan, has a debt of 13 cr. Consolidated Amal, a 50% associate, has a debt of ` 19 cr; its debt equity is 0.3. A strong financial position will allow each entity to energetically seize emerging opportunities and implement new projects. Once we have streamlined the investment made in the last three fiscals, we will expand further by growing in selected downstream and upstream products, related products and new businesses, executing opportunities to acquire onemoremanufacturing | production base and investing further in the two retail businesses in India and beyond. In its own small way, Atul Foundation (AF) exemplified that a business must give back to the society more than it takes from it. 33,000 square feet Atul Foundation Healthcare Center was opened on June 26, 2023. After putting up a state-of-the-art waste management facility for Atul village, AF took up the same for 45 nearby villages. Atul Adhyapikas are now going to anganwadis (pre-primary) beyond their earlier mandate to teach at primary level. new team members - from campus to corporate The schools run by AF continued to deliver. One of the students of AV was in the first 1% of India in Class 12 exam. Performance of the two PPPs and the four ITIs managed by AF is considered excellent. Our Company Board is changing, and it is time to say ‘thank you’ and ‘welcome’. Mr Rajendra Shah, Mr Bansi Mehta, Mr Susim Datta and Mr Srinivasa Rangan retired after 41, 31, 21 and 13 years. My colleagues and I thank them for their astute guidance, insightful questioning and consistent contribution. Mr Rangaswamy Iyer, Mr Sharadchandra Abhyankar, Mr Sujal Shah and Mr Praveen Kadle were appointed as Independent Directors. We welcome the newly appointed Directors and look forward to their valuable inputs. The Board will recommend additional Independent Directors in the course of 2024-25. An understanding of the past shapes our existence, grounds our ideals and widens our vision. So we remind ourselves of the legacy of eternal and universal Values: integrity, perseverance and trusteeship and the attributes: bias for action, continuous improvements and learning agility left behind by the legendary Founder of our Company, Mr Kasturbhai Lalbhai. These Values and attributes will guide us on how we will work in the present to build our Company for the years ahead. I take this opportunity to thank you for your enduring trust in our Company - its best days are still ahead. Sincerely, Sunil Siddharth Lalbhai Chairman and Managing Director *as on June 30, 2024 What has changed? A lot and very little. On the one hand, a lot has changed in the larger world around us; daily life has changed drastically. On the other, very little has changed. Teamwork, for example, remains just the same ever since people started working together. Even so, teamwork can remain elusive and requires people with the courage to sit down with one another and accept the dissent and discomfort that is necessary to improve and innovate. This is the endeavour at Atul – to have and develop team members who understand and believe that teamwork is amongst the ultimate competitive advantages both because it is so powerful and so rare (and therefore nurture and promote it). Corporate Overview Performance Overview Governance Overview 17
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