Atul Auto Limited

ASSIGNMENT 1.2

FINANCIAL REPORT
Submitted By-

Rahul Gupta 2016A4PS0366H

1
Atul Auto Limited

Atul Auto Limited is leading three wheeler manufacturing company in Rajkot, Gujarat,
India. The company's origins lie in the 1970s , when Jagjivan bhai Chandra sought to
modify motorcycles to make transport to meet the needs of rural areas of Saurashtra,
and adapted the engines from golf carts scrapped by the Maharaja of Jamnagar,
resulting in his first chhakada vehicles . The company incorporated in 1986,and
production begin in 1992. Over more than 1 million ATUL vehicles ply on Global roads,
since the first rolled out in 1970s . They are the fastest growing 3 Wheeler Company in
India, with the presence across 21 states with 200 primary and 130 secondary
networks .

2
Atul Auto Limited

Board Structure and Corporate Governance

Table 1.2.1

3
Atul Auto Limited

ANALYSIS OF CORPORATE BOARD

1. The Company has an active, well-informed and independent Board i.e necessary
to ensure highest standards of Corporate Governance.
2. The number of independent directors are 50% of the total number of Directors,
this is in line with SEBI regulations. This also ensures that the interests of the
minority shareholders are protected by the independent directors which do not
have any vested interest.
3. A quality Board, being at the core of its Corporate Governance Practice, plays the
most pivotal role in overseeing how the management serves and protects the
long-term interests of all our stakeholders
4. The compay like many other family owned companies in India has given high
preference to the family in the Mangement Board with 3 members from the
family of the CEO.
5. The performance evaluation of the chairman and the non independent directors
are carried by the independent Directors.
6. The Board is broad-based and consists of eminent individuals from financial and
marketingindustry, management, technical, background.
7. The Company has a judicious mix of Executive and Non-Executive Director. As on
31st March, 2017, the Board comprised of eight Directors out of which four are
Independent Directors which includes one Woman Independent Director, one is
Non-Executive Non-Independent Director and the remaining three are Executive
Directors which are Promoter/ Part of promoter group. The Chairman of the
Company is Executive Director.
8. There are also women directors on the board, complying with the SEBI
regulation to have at least 1 women director on the board.

Conclusion

The Atul Auto Board complies with all SEBI regulations, good independent
directors who sit on the board of multiple companies and have a good track
record, they could however have some Public/Government members in the
board.

4
Atul Auto Limited

SHAREHOLDER ALONG WITH SHARE PERCENTAGE

NAME SHARE
Chandra Maheshbhai J (Family) 17.95
Chandra Jayantibhai Jagjivandas (Family) 12.32
Chandra Dharmendrabhai Jagjivandas 11.55
(Family)
Chandra Harishbhai J (Family) 10.62
Chandra Bharat Jagjivandas (Family) 8.89
Chandra Manishaben A (Family) 8.5
Multiple Portfolios 8.19
HDFC Small and Mid Cap Fund 5.54
HDFC Hybrid Equity Fund 2.65
Multiple Portfolios 5.81
Aditya Birla Sun Life Small Cap Fund 3.53
Aditya Birla Sun Life Dividend Yield Fund 0.8
Aditya Birla Sun Life Emerging Leaders Fund - 0.46
S
Aditya Birla Sun Life Resurgent India Fund - 0.41
Se
Aditya Birla Sun Life Resurgent India Fund - 0.3
Se
Aditya Birla Sun Life Resurgent India Fund - 0.24
Se
Aditya Birla Sun Life International Equity 0.04
Fund
Aditya Birla Sun Life Dual Advantage Fund - 0.02
Ser
Aditya Birla Sun Life Capital Protection Orient 0.02
Aditya Birla Sun Life Capital Protection Orient 0.01

Table 1.2.2

5
Atul Auto Limited

Type of Share Holder

Type of Share Holder Share

Promoters 52.70 %
Mutuals Fund and UTI 11.87 %
FIIs 5.42 %
Corporate bodies 2.83 %
Indian Public 20.89 %
NRI/OCB 5.40 %
Clearing Member and others 0.89 %

Table 1.2.3

Fig 1.2.1

Analysis on Type of Shareholders

1. The promoter holding of the company is at a stable 57.40% for a long period of
time. This is a very good indicator for minority shareholders as the Promoter has
not diluted his stake and also the stake is very high. This means that the
promoter believes in the business and is not looking to cash out
2. Higher promoter’s stake is a positive sign because promoters will commit
additional fund only when they are optimistic about future growth of their
company.
3. Mutual Funds are having a sizeable stake in the company hence the Market is
trusting the growth potential of the company in the long run.
4. FII’s stake signify that on the global arena company is not much looked upon but
the DII’s shows full confidence in the company.

6
Atul Auto Limited

Meetings and Disclosures to Shareholders

Analysis of Meetings and Disclosures to Shareholders

1. The Board met at regular intervals to discuss and decide on financial and
economic performance of business strategies and overview the the Company.
2. During the meetings of Board of Directors held on following dates: 30th May,
2016, 09th August, 2016, 29th September, 2016, 12th November, 2016, 04th
February, 2017, 31st March, 2017 The Interval between two meetings was well
within the maximum period mentioned under Section 173 of the Companies Act,
2013
3. The Company Regularly reports its monthly Auto Sales number every month,
providing a outlook to future results.

7
Atul Auto Limited

Sector Prospects

The current government has been trying to revive the economy and has been very
aggressive in terms of infrastructure spending. The spending on constructing roads,
airports and expected high GDP growth will benefit auto sector in general. In fact, the
lower interest regime also bodes well the for the sector as more than 80% of the
vehicles in India are financed

8
Atul Auto Limited

9
Atul Auto Limited

10