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
 
                                                            (Rs. 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
 
 Dividend
 
 The Board recommends payment of dividend of Rs. 4.5 per share on
 2,96,61,733 equity shares of Rs. 10 each fully paid up.  The dividend
 will entail an outflow of Rs. 15.51 crores (including dividend
 distribution tax) on the paid-up equity share capital of Rs. 29.66
 crores.
 
 Financial Performance
 
 Net sales increased by 29% to Rs. 1508 crores. While Life Science
 Chemicals segment grew by 28% to Rs. 492 crores, Performance & Other
 Chemicals segment grew by 30% to Rs. 1016 crores. Profit after tax
 increased from Rs. 53 crores to Rs. 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 Rs. 33 crores as a result of higher working
 capital employed due to growth in sales and also payments towards
 capital expenditure of Rs. 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.
 
 Listing
 
 The Company has paid the annual listing fees for the year 2011-2012 to
 Bombay Stock Exchange Ltd and National Stock Exchange of India Ltd.
 
 Fixed Deposits
 
 Fixed deposits amounting to Rs. 0.20 crore as on March 31, 2011 were not
 claimed by the depositors. The fixed deposits which matured on or
 before March 31, 2004, but remained outstanding since then were
 transferred to the Investor Education and Protection Fund as required
 under Section 205 C of the Companies Act, 1956.
 
 Information regarding conservation of energy, technology absorption,
 foreign exchange earnings and outgo, employees, etc.
 
 Information required under Section 217(1)(e) of the Companies Act,
 1956, read with Rule 2 of the Companies (Disclosure of Particulars in
 the Report of the Board of Directors) Rules, 1988 and information as
 per Section 217(2A) of the Companies Act, 1956, read with the Companies
 (Particulars of Employees) Rules,1975, as amended from time to time,
 forms a part of this Report. However, as per the provisions Section
 219(1) (b)(iv), the Report and Accounts are being sent to all the
 Members excluding the information relating to conservation of energy,
 technology absorption, foreign exchange earnings and outgo and the
 statement of particulars of employees. Any Member interested in
 obtaining such particulars may inspect the same at the registered
 office of the Company or write to the Company Secretary for a copy.
 
 Subsidiary Companies
 
 The Company has six subsidiary companies namely, Ameer Trading
 Corporation Ltd, Atul Americas Inc, Atul Deutschland GmbH, Atul Europe
 Ltd, Atul Rajasthan Date Palms Ltd and Atul International Trading
 (Shanghai) Co Ltd. It has got exemption from attaching the details as
 provided under Section 212(1) of the Companies Act, 1956 in respect of
 the subsidiary companies. However, the Investors may seek the copies of
 the Annual Reports and related detailed information of the subsidiary
 companies by writing to the Company Secretary at the registered office.
 
 Directors Responsibility Statement
 
 Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
 confirm that to the best of their knowledge and belief:
 
 (i) In the preparation of the annual accounts, the applicable
 accounting standards were followed
 
 (ii) Such accounting policies were selected and applied consistently
 and such judgements and estimates were made that were reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the Company as on March 31, 2011 and of the profit of the Company for
 the year ended on that date
 
 (iii) Proper and sufficient care was taken to maintain adequate
 accounting records in accordance with the provisions of the Companies
 Act, 1956 for safeguarding the assets of the Company and for preventing
 and detecting fraud and other irregularities
 
 (iv) The attached annual accounts for the year ended March 31, 2011
 were prepared on a going concern basis.
 
 Auditors
 
 Dalal & Shah, the Auditors of the Company, will retire at the
 conclusion of the ensuing AGM. They have given their consent to
 continue to act as the Auditors for 2011-12, if reappointed.
 
 The relevant notes forming a part of the accounts are self explanatory
 and give full information and explanation in respect of the
 observations made by the Auditors in their Report.
 
 Acknowledgements
 
 The Board of Directors expresses its sincere thanks to all the
 customers, employees, investors, lenders, suppliers, regulatory and
 government authorities and the Stock Exchanges for their continuing
 support.
 
                                              For and on behalf of the 
                                                Board of Directors
 
 Mumbai                                            Sunil S Lalbhai
 May 13, 2011                             Chairman & Managing Director