Atul Ltd, a Lalbhai Group Company, was founded by Mr Kasturbhai Lalbhai
in 1947 as an initiative mainly for backward integration and import
substitution (for the textiles business of the Group). The Company
commenced its business with production of a few dyes for the Group.
Atul is one of the leading chemical manufacturers of India. The Company
is currently engaged in the manufacture of a wide range of chemicals
comprising Fungisides, Herbisides, Insecticides,Pharma intermediate,
Epoxy resins, Hardners, Sulphones, Textile dyes and other specialities
It is listed on the Bombay Stock Exchange and the National Stock
Exchange of India and has around 32,000 Shareholders. Promoters hold a
little in excess of 50% of the equity capital.
Atul operates in the international markets through its subsidiaries
located in Brasil, China, Germany, the UK and the USA.
The Company has two classes of shares referred to as Equity Shares
having a par value of Rs 10 and Cumulative Redeemable Preference Shares
having a par value of Rs 100.
In the event of liquidation of the Company, the holders of Equity
Shares will be entitled to receive any of the remaining assets of the
Company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of Equity Shares held
by the Shareholders.
Each holder of Equity Shares is entitled to one vote per share.
The Company declares and pays dividends in Indian rupees. The dividend
proposed by the Board of Directors is subject to the approval of the
Shareholders in the ensuing Annual General Meeting.
Secured by hypothecation of tangible current assets (other than movable
plant and machinery), namely, inventories and book debts of the Company
as a whole and also secured by second and subservient charge on
immovable and movable assets of the Company to the extent of individual
bank''s limit as mentioned in joint consortium documents. This also
extends to guarantees given by the bankers.
Above disclosures have been made based on information available with
the Company, for suppliers who are registered as Micro, Small and
Medium Enterprise under ''The Micro, Small and Medium Enterprise
Development Act, 2006'' as at March 31, 2012.
(a) At cost, except land - freehold, certain leasehold land, building
premises and plant and equipment stated at revalued value.
(b) Land - leasehold at cost less amounts written off.
(c) Includes premises on ownership basis Rs 1.10 cr (Previous year Rs
1.10 cr) and cost of fully paid share in co-operative society Rs 2,000
(Previous year Rs 2,000).
(d) The Company has revalued (i) Leasehold land and (ii) Commercial
land and building at Ahmedabad, Mumbai and Delhi as at March 31, 2008
at fair market value as determined by an independent valuer appointed
for the purpose. Resultant increase in book value amounting to Rs 107.47
cr has been transferred to Revaluation Reserve.
(e) Pursuant to the order passed by Honourable High Court of Gujarat,
dated November 17, 2008 and April 17, 2009 in case of water charges,
the Company has created first charge over its certain land and
buildings in favour of Government of Gujarat.
(f) The Company has opted to recognise exchange differences arising on
reporting of long-term foreign currency monetary items in line with
paragraph 46 of Accounting Standard-11 ''The effects of changes in
Foreign Exchange Rates'' inserted vide Notification dated December 29,
2011 issued by the Ministry of Corporate Affairs. Pursuant to the
above, the effect of exchange differences on long-term foreign currency
monetary items, so far as they relate to acquisition of depreciable
capital assets, are amortised over the remaining life of such assets.
Had the Company continued to follow the earlier Accounting Policy, the
net foreign exchange loss recognised in the Statement of Profit and
Loss would have been higher by Rs 1.89 cr and Fixed Assets would have
been lower by Rs 1.89 cr.
* An amount of Rs 11.29 cr (Previous year Rs 11.29 cr) is given to an
associate company as a secured loan. Ihe said company is registered
under BIFR and is implementing its revival plan. First charge over all
their assets has been assigned exclusively in favour of the Company.
The Company has also given an unsecured loan of Rs 3.59 cr (Previous
year Rs 3.59 cr) as Promoter''s contribution (repayable in two equal
installments in financial year 2015- 16 and 2016-17). Considering the
progress of the revival plan and the present market value of assets,
these amounts included under loans and advances are considered as
good and recoverable.
Note 1.1 CONTINGENT LIABILITIES 2011-12 2010-11
(i) Claims against the Company not
acknowledged as debts in respects of:
(a) Excise 6.25 5.73
(b) Income tax 27.70 25.50
(c) Sales tax 0.74 0.74
(d) Customs 2.78 -
(e) Water charges 68.63 65.50
(f) Others 13.26 11.00
Note: Future cash outflows in respect of (a)
to (f) above are determinable on receipt of
judgments | decisions pending with various
forums | authorities.
(ii) Guarantees given by bankers of the Company:
(a) Guarantees have been given by the bankers
of the Company in the normal course of business
and are not expected to result in any
liability on the Company - 9.50
(b) Corporate guarantee to a bank on behalf
of subsidiary company for facilities availed
by them 1.11 1.21
1 Segments have been identified in line with the Accounting Standard-17
''Segment Reporting'' taking into account the organisation structure as
well as the differing risks and returns.
2 The Company has disclosed business segment as the primary segment.
4 The Segment revenue, results, assets and liabilities include
respective amounts identifiable to each segment and amounts allocated
on a reasonable basis.
5 The Company accounts for inter segments sales and transfers at market
NOTE 1.2 LEASE
(a) The Company has taken various residential and office premises under
operating lease or leave and license Agreements. These are generally
cancellable, having a term between 11 months and 3 years and have no
specific obligation for renewal. Payments are recognised in the
Statement of Profit and Loss under ''Rent'' in Note 26.
(b) The Company has given certain buildings and plant and machinery on
operating lease, the details of which are as under:
(c) Financial Derivatives Hedging Transactions:
Pursuant to the announcement issued by The Institute of Chartered
Accountants of India dated March 29, 2008 in respect of derivatives,
the Company has applied the Hedge Accounting Principles set out in the
Accounting Standard-30 ''Financial Instruments : Recognition and
Measurement''. Accordingly, Derivatives are mark-to-market and the Loss
aggregating Rs 0.78 cr (Previous year Rs 5.09 cr) arising consequently on
contracts that were designated and effective as hedges of future cash
flows has been recognised directly in the Hedging Reserve Account.
Actual gain or loss on exercise of these Derivatives or any part
thereof is recognised in the Statement of Profit and Loss. Hedge
accounting will be discontinued if the hedging instrument is sold,
terminated or no longer qualifies for hedge accounting.
*Fc = Foreign currency.
(b) Defined contribution plan:
Amount of Rs 6.97 cr (Previous year Rs 6.21 cr) is recognised as expense
and included in the Note 24 ''Contribution to Provident and Other
(c) Provident Fund Liability:
In case of certain employees, the Provident Find contribution is made
to a trust administered by the Company. In terms of the guidance note
issued by the Institute of Actuaries of India, the actuary has provided
a valuation of Provident Fund liability based on the assumptions listed
below and determined that there is shortfall of Rs 0.06 cr as at March
31, 2012. This amount is provided by the Company in 2011-12.
(d) The estimates of future salary increases, considered in actuarial
valuation, take account of inflation, seniority, promotion and other
relevant factors, such as supply and demand in the employment market.
Mortality rates are obtained from the relevant data.
(e) Amount recognised as an expense in respect of compensated leave
absences is Rs 5.45 cr (Previous year Rs 2.42 cr).
NOTE 1.3 INTEREST IN JOINT VENTURE COMPANY
The Company has acquired 50 percent interest in Rudolf Atul Chemicals
Limited (RACL), a joint venture company in India between ''IB
Industriechemie Beteiligungs GmbH'', Germany and ''Atul Ltd'' on August
18, 2011. RACL is engaged in the business of manufacturing and
marketing textile chemicals. As per the contractual arrangement between
the Shareholders of RACL, both the parties have significant
participating rights such that they jointly control the operations of
the Joint Venture company. The aggregate amount of assets, liabilities,
income and expenses related to the share of the Company in RACL as at
and for the year ended March 31, 2012 as per unaudited financial
statements as given below:-
Note 1.4 NON-CURRENT INVESTMENTS
In the opinion of the Management, the diminution in the value of any of
the investment as shown in Note 12, held by the Company is temporary in
nature and accordingly, no provision is considered necessary by the
Note 1.5 REGROUPED RECAST RECLASSIFED
The financial statements for the year ended March 31, 2011 were
prepared as per the applicable, pre-revised Schedule VI to the
Companies Act, 1956. Consequent to the notification of Revised Schedule
VI under the Companies Act, 1956, the financial statements for the year
ended March 31, 2012 are prepared as per Revised Schedule VI.
Accordingly, previous year figures have also been restated to conform
to classification as per current year.
Note 1.6 ROUNDING OFF
Figures less than Rs 50,000 has been shown at actual in bracket.