General information
 
 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
 and commodities.
 
 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.
 
 *Security details:
 
 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.
 
                                                             (Rs cr)
 
 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
 price.
 
 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
 Funds''.
 
 (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
 Management.
 
 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.