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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, 2012.
Financial results
(
`
cr)
2011-12
2010-11
Revenue from operations
1795
1534
Other income
12
19
Total revenues
1807
1553
Profit before tax and exchange rate difference
134
148
Exchange rate difference - expense
12
9
Profit before tax
122
139
Provision for tax
34
43
Profit for the year
88
96
Tax adjustments for the earlier years
-
(6)
Profit available for appropriation
88
90
Balance brought forward
334
265
Disposable surplus
422
355
Appropriations
General reserve
9
5
Proposed dividend
14
14
Dividend distribution tax
2
2
Balance carried forward
397
334
Dividend
The Board recommends payment of dividend of
`
4.50 per
share on 2,96,61,733 Equity Shares of
`
10 each fully paid-up.
The dividend will entail an outflow of
`
15.52 cr (including
dividend distribution tax) on the paid-up Equity Share capital
of
`
29.66 cr.
Financial Performance
Net sales grew by 17% to
`
1761 cr including a growth of
21% in exports and 14% in domestic market. However, the
margins were under pressure and reduced slightly; the PBT
before exceptional items reduced from
`
129 cr to
`
116 cr. The
reduction in profitability was mainly on account of increase in
input prices, fixed costs, exchange loss and interest. During the
year, CARE assigned CARE A1+ rating to the proposed CP issue.
CARE also upgraded credit rating to CARE A+ (from CARE A in
the Previous year) for long-term debts, while maintaining top
notch CARE A1+ for short-term debts.
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 G S Patel, Mr B S Mehta and Mr B N Mohanan
retire by rotation and being eligible offer themselves for
reappointment at the forthcoming Annual General Meeting
scheduled on July 27, 2012.
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.
Directors’ Report