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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