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Directors’ Report
Dividend
The Board recommends payment of dividend of
`
4.5 per
share on 2,96,61,733 Equity Shares of
`
10 each fully paid up.
The dividend will entail an outflow of
`
15.51 crores (including
dividend distribution tax) on the paid-up Equity Share capital
of
`
29.66 crores.
Financial Performance
Net sales increased by 29% to
`
1508 crores. While Life
Science Chemicals segment grew by 28% to
`
492 crores,
Performance & Other Chemicals segment grew by 30% to
`
1016 crores. Profit after tax increased from
`
53 crores
to
`
96 crores. Higher profit was mainly on account of
higher sales resulting from volume growth of around 16%.
The return on average capital employed improved from
13% to 18%. Interest to sales ratio reduced from 2.2%
in the previous year to 1.7%. Borrowings increased by
`
33 crores as a result of higher working capital employed
due to growth in sales and also payments towards capital
expenditure of
`
47 crores. During the year, CARE upgraded
credit rating to PR1+ (from PR1 in the previous year) for
short-term debts and to A (from A- in the previous year) for
long-term debts of the Company.
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 H S Shah, Dr S S Baijal and Dr K Aparajithan
retire by rotation and being eligible offer themselves for
reappointment at the forthcoming Annual General Meeting
scheduled on August 4, 2011.
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.
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, 2011.
Financial results
(
`
crores)
2010-11
2009-10
Net sales and operating income
1548
1198
Other income
6
6
Total revenues
1554
1204
Profit before tax and exchange rate difference
148
89
Exchange rate difference income | (expense)
(9)
(9)
Profit before tax
139
80
Provision for tax
43
27
Profit for the year
96
53
Tax adjustments for the earlier years
(6)
4
Profit available for appropriation
90
57
Balance brought forward
265
227
Disposable surplus
355
284
Appropriations
General reserve
5
5
Proposed dividend
14
12
Dividend distribution tax on above
2
2
Balance carried forward
334
265
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