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Directors’ Report
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, 2015.
2014-15
2013-14
Sales
2,510
2,307
Revenue from operations
2,556
2,365
Other income
15
40
Total revenue
2,571
2,405
Profit before tax
312
297
Provision for tax
95
84
Profit for the year
217
213
Profit available for appropriation
217
213
Balance brought forward
664
498
Disposable surplus
881
711
Appropriations
General reserve
-
21
Proposed dividend
25
22
Dividend distribution tax
5
4
Balance carried forward
851
664
1. Financial Results
(
`
cr)
2.
Performance
Sales increased by 9% from
`
2,307 cr to
`
2,510 cr
aided by both higher volumes (5%) and prices (4%).
Sales in India increased by 7% from
`
1,199 cr to
`
1,283 cr. Sales outside India increased by 11% from
`
1,108 cr to
`
1,227 cr. PBT in previous year included
`
20 cr of one-time dividend received; including such
one-time income, the Earning per share increased from
`
71.74 to
`
73.30. While the operating profit before
working capital changes increased by 6% from
`
360 cr
to
`
383 cr, the net cash flow from operating activities
increased by 125% from
`
141 cr to
`
317 cr, mainly on
account of the reduction in working capital and other
current assets.
Sales of Life Science Chemicals (LSC) Segment
decreased by 8% from
`
738 cr to
`
676 cr, mainly
because of lower sales in Crop Protection Business;
its EBIT decreased by 21% from
`
150 cr to
`
119
cr. Sales of Performance and Other Chemicals (POC)
Segment increased by 17% from
`
1,569 cr to
`
1,834 cr, supported by growth in Aromatics,
Colors and Polymers Businesses; its EBIT increased
by 40% from
`
173 cr to
`
242 cr. More details are
given in the Management Discussion and Analysis
(MDA) Report.
The Company reduced its borrowings (including
current maturities on long-term borrowings) by 20%
from
`
351 cr to
`
281 cr despite the growth in sales
and payments towards capital expenditure of
`
192 cr.
The Company improved its credit rating from ‘AA‘
(double A) to ‘AA+’ (double A plus) for its long-term
borrowings awarded by Credit Analysis & Research
Ltd (CARE). Its rating for short-term borrowings and
commercial paper remained at ‘A1+’ (A1 plus), the
highest possible awarded by CARE.
The Company completed 4 projects with an
investment of
`
33 cr which are expected to generate
sales of
`
143 cr at full capacity utilisation.
3.
Dividend
The Board recommends payment of dividend of
`
8.50 per share on 2,96,61,733 Equity shares of
`
10 each fully paid up. The dividend will entail
an outflow of
`
30.34 cr (including dividend
distribution tax) on the paid-up Equity share capital
of
`
29.66 cr.
4.
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.
5.
Insurance
The Company has taken adequate insurance to
cover the risks to its people, plants and machineries,
buildings and other assets, profit and third parties.