Atul Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021

Standalone financial results for the quarter / year ended on March 31, 2021

Notes:



1. These results have been prepared in accordance with the Indian Accounting Standard (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.



2. These results have been reviewed and recommended for adoption by the Audit Committee in its meeting held on April 29, 2021, and approved by the Board of Directors in its meeting held on April 30, 2021 through video conferencing. The Statutory Auditors report does not have any qualification / modification.



3. The Company publishes standalone financial results along with the consolidated financial results. In accordance with the Ind AS 108, 'Operating Segments', the Company has disclosed the segment information in the consolidated financial results and therefore no separate disclosure on segment information is given in the standalone financial results for the quarter / year ended on March 31, 2021.



4. Following items are included in other income:

(` cr)

No. Particulars Quarter ended on Year ended on

March 31,

2021 December 31,

2020 March 31,

2020 March 31,

2021 March 31,

2020

Unaudited Unaudited Unaudited Unaudited Audited

a) Exchange rate difference - gain / (loss) 1.07 (2.02) 12.43 (7.52) 18.59

b) Dividend - 24.37 8.24 58.03 23.09





5. "Manufacturing facilities of the Company which were shutdown in the last week of March 2020 due to countrywide lockdown, resumed operations in a phased manner from the last week of April 2020 after obtaining the requisite approvals.

The Company has considered possible effects that may result from COVID-19 in preparation of these standalone financial results including recoverability of inventories, trade receivables and other assets. In developing the assumptions relating to future uncertainties in the economic conditions due to COVID-19, it has, at the date of approval of these standalone financial results, used relevant internal and external sources of information including economic forecasts and expects that the carrying amounts of these assets are recoverable. The impact of COVID-19, including the current wave, may be different from that estimated as at the date of approval of these standalone financial results. "



6. The Parliament of India has approved the Code on Social Security, 2020 (the Code) which may impact the contributions by the Company towards provident fund, gratuity and ESIC. The Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. Final rules are yet to be notified. The Company will assess the impact of the Code when it comes into effect and will record related impact, if any.






7. The Board of Directors in its meeting held on January 29, 2021 had approved a proposal to buy-back fully paid-up equity shares of face value of ` 10/- each of the Company. The buy-back of equity shares through stock exchange commenced on February 10, 2021 and it was completed on February 19, 2021. The Company bought back and extinguished a total of 74,682 equity shares at an average buy-back price of ` 6,678.58/- per equity share, comprising 0.25% of the pre buy-back paid-up equity share capital of the Company. The buy-back resulted in a cash outflow of ` 49.88 cr (excluding transaction costs). The Company funded the buy-back from its free reserves. In accordance with Section 69 of the Companies Act, 2013, the Company has created capital redemption reserve of ` 7.47 lakhs equal to the nominal value of the share bought back as an appropriation from general reserve.



8. The figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to-date figures up to the third quarter of the respective financial years and there are no material adjustments made in the results of the quarter ended March 31, 2021 which pertain to earlier periods. These have been subjected to limited review by the auditors.



9. The Board of Directors has recommended a dividend of ` 20 per share (200%) subject to approval of the shareholders.



10. The Annual General Meeting of the Members will be held on July 30, 2021.