MIRA
INFORM REPORT
|
Report Date : |
23.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
ADOR WELDING LIMITED (16.10.2003) |
|
|
|
|
Formerly Known As : |
ADVANI
OERLIKON LIMITED |
|
|
|
|
Registered Office : |
Ador
House, 6, K. Dubash Marg, Fort, Mumbai – 400001, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
22.10.1951 |
|
|
|
|
Com. Reg. No.: |
11-008647 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L70100MH1951PLC008647 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMA20507E MUMA20506D |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACA9076B AAACA9076A |
|
|
|
|
Legal Form : |
A
Public Limited Liability company. The company’s shares are listed on the
Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturing of Welding Consumable and Equipments. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 5899000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established and a reputed company having good track. Financial position of
the company appears to be sound. Directors are reported to be experienced and
respectable businessmen. Trade relations are reported as fair. Business is
active. Payments are reported to be regular and as per commitments. Company can be
considered normal for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Ador
House, 6, K. Dubash Marg, Fort, Mumbai – 400001, |
|
Tel. No.: |
91-22-22842525 / 22872548 |
|
Fax No.: |
91-22-22873083 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
17/B,
|
|
Tel. No.: |
91-22- 22702485 / 22641376 |
|
Fax No.: |
91-22- 22641349 |
|
|
|
|
Corporate Marketing Office : |
5/A, Corpora, L.B.S Marg, Bhandup (west), Mumbai-400078, |
|
Tel. No.: |
91-22-66239300 / 25962564 / 77 |
|
Fax No.: |
91-22-25966562 / 6062 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Melakottiyur, Via Vandalur, Chennai-600048, |
|
|
|
|
Factory 2: |
Survey No. 59/11/1, |
|
|
|
|
Factory 3 : |
Industrial Estate, |
|
|
|
|
Factory 4 : |
Akurdi, Pune-411019, |
|
|
|
|
Factory 5 : |
54-55, F-11 Block MIDC, Pimpri, Pune-411018, |
|
|
|
|
Territory offices : |
Located at :- |
|
|
|
|
Area offices : |
Located at :-
|
|
|
|
|
Sales Offices: |
Located at:
|
|
|
|
|
Overseas Office: |
|
|
Tel No.: |
0097165578601 |
|
Fax No.: |
0097165578602 |
|
E mail: |
|
|
|
|
|
Branches : |
Unit No. 1, Luthra Industrial Premises, Andheri Kurla
Road, Safed Pool, Andheri (E), Mumbai - 400 072, India |
|
Tel. No.: |
91-22- 2851-5606 / 44 |
|
Fax No.: |
91-22- 2851-2885 |
|
Website : |
DIRECTORS
AS ON 31.03.2010
|
Name : |
Ms.
A. B. Advani |
|
Designation : |
Executive
Chairman |
|
|
|
|
Name : |
Mr.
Raman Kumar |
|
Designation : |
Managing
Director |
|
Name : |
Mrs.
N. Malkani Nagpal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
R. A. Mirchandani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. T. Malkani
|
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. A. Lalvani
|
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
J. N. Hinduja |
|
Designation : |
Director (upto
30.03.2010 since superannuated) |
|
|
|
|
Name : |
Mr. Anil
Harish |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
M. K. Maheshwari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. K. Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. N. Sapru |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. Digvijay
Singh |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr.
V. M. Bhide |
|
Designation : |
Company Secretary
|
|
|
|
|
Executive
Management Team: |
|
|
|
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2010
|
Names of
Shareholders |
No. of0 Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
810364 |
5.96 |
|
|
6784362 |
49.89 |
|
|
7594726 |
55.85 |
|
|
|
|
|
|
91200 |
0.67 |
|
|
91200 |
0.67 |
|
Total
shareholding of Promoter and Promoter Group (A) |
|
|
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
1488270 |
10.94 |
|
|
632 |
-- |
|
|
10 |
-- |
|
|
20109 |
0.15 |
|
|
1509021 |
11.10 |
|
|
|
|
|
|
451560 |
3.32 |
|
|
|
|
|
|
2813741 |
20.69 |
|
|
649529 |
4.78 |
|
|
488690 |
3.59 |
|
|
8796 |
0.06 |
|
|
300 |
-- |
|
|
479594 |
3.53 |
|
|
4403520 |
32.38 |
|
Total
Public shareholding (B) |
5912541 |
43.48 |
|
Total
(A)+(B) |
13598467 |
100.00 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
-- |
-- |
|
Total
(A)+(B)+(C) |
13598467 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Welding Consumable and Equipments. |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
||||||||
|
Exports : |
|
||||||||
|
Products : |
Manufacturing of welding consumable and equipment |
||||||||
|
Countries : |
|
||||||||
|
|
|
||||||||
|
Imports : |
|
||||||||
|
Products : |
Raw Materials, Capital Goods and Spares etc |
||||||||
|
Countries : |
|
PRODUCTION STATUS (As on 31.03.2009)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Welding Consumables (Arc welding Electrodes/ Continuous Welding Wires and Fluxes) |
M.Tones |
26000 |
26000 |
1696576 |
|
Welding Equipments (Welding and Cutting Equipments/ Systems, Accessories Spares/
Services) |
Value |
125Crs |
125Crs |
Not Enumerable |
|
Power Generators |
Nos. |
5000 |
5000 |
166.00 |
GENERAL INFORMATION
|
No. of Employees : |
761
(Approximately) |
|
|
|
|
Bankers : |
|
|
|
|
||||||||||||||||||
|
Banking
Relations : |
Good |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Auditors : |
|
||||||||||||||||||
|
Name : |
Dalal
and Shah Chartered
Accountants |
||||||||||||||||||
|
Address : |
Mumbai,
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Associates/Subsidiaries : |
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Group Companies: |
|
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Share |
Rs.10/- Each |
Rs.300.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13598467 |
Equity Share |
Rs.10/- Each |
Rs.135.985
millions |
*1, 35, 98,467 Equity Shares of Rs.10/- each, fully paid-up
*85, 26,100 Equity Shares of Rs.10/- each, were alloted as fully paid-up bonus shares, by way of Capitalisation of Securities Premium Account and General Reserve.
*52,200 Equity Shares of Rs. 10/- each, were alloted as fully paid up, at par, to the shareholders of advanced Welding Alloys Limited, pursuant to a Scheme of Amalgamation.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
135.985 |
135.985 |
135.985 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1338.779 |
1177.952 |
1119.981 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1474.764 |
1313.937 |
1255.966 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
9.350 |
12.247 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1484.114 |
1326.184 |
1255.966 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
818.387 |
823.714 |
813.803 |
|
|
Capital work-in-progress |
4.154 |
99.599 |
35.872 |
|
|
|
|
|
|
|
|
INVESTMENT |
110.743 |
0.002 |
40.002 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
2.804 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
379.916
|
358.087
|
336.169
|
|
|
Sundry Debtors |
262.734
|
130.663
|
229.623
|
|
|
Cash & Bank Balances |
130.245
|
74.797
|
64.033
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
146.114
|
212.640
|
135.675
|
|
Total
Current Assets |
919.009
|
776.187 |
765.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
97.016
|
129.659 |
|
|
|
Other Current Liabilities |
137.999
|
135.092
|
224.411
|
|
|
Provisions |
133.164
|
108.567
|
177.604
|
|
Total
Current Liabilities |
368.179
|
373.318 |
402.015 |
|
|
Net Current Assets |
550.830
|
402.869
|
363.485
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1484.114 |
1326.184 |
1255.966 |
|
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2607.335 |
2238.381 |
2605.480 |
|
|
|
Other Income |
46.342 |
23.556 |
32.354 |
|
|
|
TOTAL (A) |
2653.677 |
2261.937 |
2637.834 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
1485.514 |
1242.719 |
1449.602 |
|
|
|
Manufacturing Expenses |
161.018 |
161.029 |
187.912 |
|
|
|
Employee Cost |
253.163 |
246.329 |
229.148 |
|
|
|
Selling and Administration
Expenses |
240.643 |
245.693 |
292.141 |
|
|
|
Other Expenses |
9.607 |
3.262 |
23.983 |
|
|
|
Finished Goods Capitalised |
(2.018) |
(7.994) |
(1.299) |
|
|
|
TOTAL (B) |
2147.927 |
1891.038 |
2181.487 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
505.750 |
370.899 |
456.347 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5.659 |
19.813 |
22.997 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
500.091 |
351.086 |
433.350 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
131.136 |
132.817 |
119.147 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
368.955 |
218.269 |
314.203 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
105.603 |
92.551 |
85.042 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
263.352 |
125.718 |
229.161 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
47.545 |
69.574 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
70.000 |
80.000 |
|
|
|
|
Proposed Dividend |
81.591 |
54.394 |
|
|
|
|
Provision for Tax on Proposed Dividend |
13.551 |
9.244 |
|
|
|
BALANCE CARRIED
TO THE B/S |
138.372 |
47.545 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
18.82 |
8.94 |
16.59 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Audited / UnAudited |
UnAudited |
UnAudited |
UnAudited |
|
|
|
|
|
|
Net Sales |
582.530 |
752.220 |
704.230 |
|
Total Expenditure |
493.230 |
617.180 |
593.480 |
|
PBIDT (Excl OI) |
89.300 |
135.040 |
110.750 |
|
Other Income |
2.900 |
8.420 |
2.610 |
|
Operating Profit |
92.200 |
143.460 |
113.370 |
|
Interest |
1.210 |
1.380 |
1.470 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
90.990 |
142.080 |
111.900 |
|
Depreciation |
29.240 |
31.040 |
31.270 |
|
Profit Before Tax |
61.750 |
111.040 |
80.630 |
|
Tax |
16.840 |
31.880 |
24.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
44.910 |
79.160 |
56.630 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
9.92 |
5.56 |
8.69 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.15 |
9.75 |
12.06 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.24 |
13.64 |
19.90 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25 |
0.17 |
0.25 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.25 |
0.28 |
0.32 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.50 |
2.08 |
1.90 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject , formerly known as Advani Oerlikon Limited, was
promoted on 22 Oct.'1951 by J B Advani and Company and the Oerlikon-Buhrle
group (now UNAXIS),
Subject has six manufacturing plants at Bhandup, Chinchwad,
The company came out with a rights issue in Jan.'1994 to part- finance the
modernisation of its plants for consumables and equipment manufacture. The
company has technical collaborations with two welding companies -
During 1998-99 'Semiconductor Limited' a 100% subsidiary company was
amalgamated with AOL. Now company has no subsidiary company. The company has
provided facilities for holding shares in demat mode by signining agreement
with NSDL and Central Depositary Services (I) Limited and the same is expected
to start its operation soon and expand its reach.
The company made buy back of 22,29,833 equity shares @ Rs.20/- per shares
totalling to Rs.44.600 Millions in 2002-03. M/s Oerlikon Welding Limited, the
overseas promoter has exited from their financial particpation from the company
by offering entire stake in the buy back scheme. Pursuant to the court order,
an associate company M/s Ador Technologies Limited was amalgamated with the
company with effect from appointed date 1st April,2002.
In 2006, the manufacturing operations at Ahmednagar plant have been shifted to
Chennai plant for attaining economies of scale in wire products.
OPERATIONS
In the financial year 2009-10, the
operational and other income went up by over 17%. The year ended with an operational
and other income of Rs.2653.700 millions (Rs.2261.900 millions)*.
The Company’s Sales and Income
during the financial year 2009-10 comprised of the following:
- Welding
Consumables at Rs.1960.100 millions (Rs.1651.700 millions)*
- Equipment
and Project Engineering at Rs.647.300 millions (Rs.586.700 millions)*
- Other
Income at Rs.46.300 millions (Rs.23.600 millions)*
DOMESTIC BUSINESS
Welding Consumables
Domestic Sales of Consumables
recorded a volume growth of 57% over the previous year. This was driven by
aggressive Sales policies, market demand and the expansion of their reach to
more and more end-users / project sites. Their product portfolio expansion in
wires and fluxes, were key to this success.
Welding Equipment and Project Engineering
The Welding Equipment /
Accessories / spares volume business grew by 63% over the previous year. The
Project engineering business grew by 50% over the last year. The volume growths
were facilitated by the strategic cost reduction projects successfully implemented
across most products for mass markets as well as aggressive sales initiatives
taken to increase market share.
EXPORTS
During the year, there has been a
decline in their exports compared to the previous year. The Export Income
during the financial year 2009-10 was at Rs.248.200 millions (Rs.327.600
millions)* Since their main exports have been to the Oil producing Gulf
countries, the slow-recovery in the oil-based economies in these countries has
adversely affected their business. Similarly impact of recession in UAE has
also contributed to the decline in the sale. They are in the process of
restructuring their business in countries of
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
BUSINESS SCENARIO
The year saw the Company achieve a
growth of around 17% over last year. The over all market opportunities were
better as compared to the earlier year. The Indian Economy grew at an annual
GDP rate of around 7%. The Company could achieve a better PBT from the
unprecedented sales volume growth and strong cost control measures undertaken.
The stable steel prices also contributed to some extent. The Company
successfully followed high impact strategies which included conserving cash,
driving down the cost of goods sold, getting closer to customers and improving
per employee productivity.
The economy in the Current Year is
expected to continue to gradually improve and is expected to attain a
reasonable GDP growth level by the HY2 of this year. The emphasis on
accelerating infrastructure growth is a good augury for their business and they
are fully geared to meet the requirements.
The new submerged – Arc Flux Line
has been commissioned which will substantially improve their business of
consumables in the current year. The Company is also in the process of
introducing several new products which will generate a sizeable turnover in the
coming years. The additional investments in the coming year in R and
D and manufacturing facilities
will help us grow their business substantially.
PERFORMANCE SNAP SHOT
The year was marked by efforts to
have profitable revenue streams sustainable over the years. Selling and
manufacturing efficiencies led to healthy profit growth of 69%. Total operating
revenues for the year reported a growth of 17%. The total consumable business
for the year was Rs.1960 millions registering a growth of about 19% over the
previous year. The Equipment business was Rs.647.300 millions registering a
growth of about 10% over the previous year.
The total operating cost excluding
depreciation and interest was Rs.2147.900 millions for the FY 2009-10 compared
to Rs.1891.000 millions for FY 2008-09. The ratio of the operating cost to
total sales works out to 82% for FY 2009-10 as against 84.5% for FY 2008-09.
The PBT was Rs.369.000 millions for FY 2009-10 compared to Rs.218.300 millions
for FY 2008-09, an increase of 69%. The
ratio of PBT to sales is 14.15% for FY 2009-10 compared to 9.75% for FY
2008-09.
The establishment of ERP, has
strengthened their financial and accounting management systems. The Company has
been able to take advantage of its ERP stabilization to focus on reducing cost
inefficiencies.
The Company has a very good
compliance track record with all legal and statutory entities in the country,
and there is a regular audit mechanism to ensure that the Company does not
violate any of the legal or statutory provisions applicable to the Company or
Industry.
WORKING CAPITAL and LIQUIDITY
The Company continues to be DEBT
FREE as on 31st March, 2010 and has a very sound financial management system.
The working capital investment (net current assets including current
investment) increased by Rs.258.700 millions, an increase of 64%. The liquidity
of the Company reflected in the cash and bank balances and current investments
increased by Rs.166.200 millions (from Rs.74.700 millions at the end of FY
2008-09 to Rs.240.900 millions at the end of FY 2009-10).
MANUFACTURING
The Company has commissioned the
Saw Flux Line at Chennai which will help in increasing the business from Flux
and Wire. The FCAW production line has stabilized for consistent and capacity
production for a range of FCAW products. The manufacturing facilities at all
the units undertook specific projects to improve in the critical areas of Cost,
Quality and Delivery. An important cost reduction programme undertaken during
the year was in the area of manufacturing expenses wherein significant savings
were achieved.
NEW CAPITAL INVESTMENT and NEW PRODUCTS
The Company plans to spend around
Rs.150 millions in the coming year in upgrading the manufacturing facility and
R and D. The Company is currently working on many interesting projects, at the
instance of key customers – in the areas of nuclear power, fossil power plants
with lower emissions, high temperature and creep resistant properties
consumables, low-cost automation solutions for accelerating power equipment
delivery cycles, more efficient and reliable steel construction for the
infrastructure sector and modern production lines for shipyards and offshore
fabrication yards.
The Company continues to invest in
significant resources in R and D. The R and D expenditure is expected to go up
substantially in the coming year.
OUTLOOK, CONCERNS and RISKS – and their RESPONSE
Welding will play a vital role in
the growth of infrastructure of their country be it Railways, Bridges, Power Plants,
Refineries, Shipyards or Pipe Lines. At least 100 industries are involved in
projects related to welding activities. Major projects in diversified sectors
like Steel, Power, Chemicals, Railways, etc. promise a lot, in terms of growth,
in Welding Industries in
The Competition meanwhile
continues to be challenging. More international players are establishing bases
in
The major challenges faced by
local market are the unorganised imports of welding products, specifically
equipment of non-standard specifications and safety aspects. This is over and
above the unequal competition from the domestic unorganized sector in the mass market
products. The other challenge will be instability in steel prices and currency
exchange rates.
CONTINGENT
LIABILITIES NOT PROVIDED FOR
(Rs.
In millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
|
a) Disputed income tax as the matters are in appeal (advance paid Rs.1.438 millions; Previous Year Rs.1.565 millions) |
1.438 |
1.565 |
|
b) Disputed Sales Tax as the matters are in appeal (advance paid Rs.0.921 million ; Previous Year Rs.0.921 million) |
6.752 |
6.752 |
|
c) Disputed Excise duties as the matters are in appeal (advance paid Rs.0.315 million; Previous Year Rs.0.100 million) |
11.838 |
11.799 |
|
d) On account of bills discounted by the Company |
0.000 |
10.526 |
|
e) Bonds/Undertakings given by the Company under concessional duty/exemption scheme to Customs Authorities. |
29.431 |
23.229 |
FIXED ASSETS
- Land
- Building
- Plant and machinery
- Electrical Installations
- Furniture and Fixtures
- Vehicles
- Air Conditioners
UNAUDITED FINANCIAL RESULTS
FOR
THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2010
Rs in Millions
|
PARTICULARS
|
31st
December 2010 |
|
|
|
Quarter
ended |
Nine
Months ended |
|
|
Unaudited |
Unaudited |
|
|
|
|
|
(a) Net Sales / Income from
operations |
702.717 |
2029.407 |
|
(b) Other Operating Income |
1.514 |
9.567 |
|
Total
Income |
704.231 |
2038.974 |
|
|
|
|
|
Expenditure |
|
|
|
a) (Increase) / Decrease in
stock in trade and work in progress |
(13.221) |
(17.707) |
|
b) Consumption of raw
materials |
425.976 |
1195.286 |
|
c) Purchase of traded goods |
7.249 |
15.632 |
|
d) Employees cost |
67.647 |
205.114 |
|
e) Depreciation |
31.272 |
91.549 |
|
f) Other expenditure |
105.824 |
305.560 |
|
Total |
624.747 |
1795.434 |
|
|
|
|
|
Profit from operations before
other income, interest and exceptional Items |
79.484 |
243.540 |
|
Other income |
2.611 |
13.929 |
|
Profit before interest and exceptional
Items |
82.095 |
257.469 |
|
Interest |
1.468 |
4.060 |
|
Exceptional Items |
-- |
-- |
|
Profit (+)/Loss(-) from
Oridinary Activities before tax |
80.627 |
253.409 |
|
Tax expense |
|
|
|
Provision for Current Tax (Including
excess / (short) provision of taxes) |
24.591 |
76.221 |
|
Deferred Tax charge / (Credit) |
(0.592) |
(3.514) |
|
Net Profit (+)/Loss(-) from
Ordinary Activities after Tax |
56.628 |
180.702 |
|
Extra Ordinary items |
-- |
-- |
|
Net Profit |
56.628 |
180.702 |
|
Paid up equity share capital
(Face value of Rs.10/- per share) |
135.985 |
135.985 |
|
Reserves excluding revaluation
reserves as per balance sheet of previous accounting year |
|
|
|
Earning per share (EPS) |
-- |
-- |
|
Basic and diluted EPS (not to
be annualised) |
4.16 |
13.29 |
|
Public shareholding |
|
|
|
Number of shares |
5912541 |
5912541 |
|
Percentage of shareholding |
43.48 % |
43.48 % |
|
|
|
|
|
Promoters and Promoters group Shareholding- |
|
|
|
a)
Pledged /Encumbered |
|
|
|
Number of shares |
-- |
-- |
|
Percentage of shares (as a %
of total shareholding of the promoter and promoter group) |
-- |
-- |
|
Percentage of shares (as a %
of total share capital of the company) |
-- |
-- |
|
|
|
|
|
b)
Non Encumbered |
|
|
|
Number of shares |
7685926 |
7685926 |
|
Percentage of shares (as a %
of total shareholding of the promoter and promoter group) |
100.00 % |
100.00 % |
|
Percentage of shares (as a % of
total share capital of the company) |
56.52 % |
56.52 % |
|
Segmentwise Revenue, Results and Capital Employed |
|
|
|
Segment Revenue |
|
|
|
Consumables |
514.055 |
1502.525 |
|
Equipments and Project Engineering |
188.662 |
526.882 |
|
Net Sales / Income from Operations |
702.717 |
2029.407 |
|
Segment Results |
|
|
|
Consumables |
77.569 |
242.475 |
|
Equipments &
Project Engineering |
20.160 |
69.360 |
|
Total |
97.729 |
311.835 |
|
Less: |
|
|
|
Interest & Finance
Charges |
1.468 |
4.060 |
|
Other Unallocable
expenses net off Unallocable Income |
15.634 |
54.366 |
|
Total Profit Before Tax |
80.627 |
253.409 |
|
Capital Employed |
|
|
|
Consumables |
845.952 |
845.952 |
|
Equipments &
Project Engineering |
409.283 |
409.283 |
|
Unallocable Corporate
Assets net of Unallocable Corporate Liabilities |
400.231 |
400.231 |
|
Total Capital Employed |
1655.466 |
1655.466 |
Note
1.
The above
results have been reviewed by the Audit Committee and approved by the Board of
Directors at their meeting held on 21st January, 2011.
2. The Statutory Auditors have carried out a limited
review of the above financial results.
3.
Information
on Investor Complaints for the quarter -(Nos.) Opening Balance -0, New -2,
Disposals -2, Closing Balance -0.
4.
Previous
Period figures have been regrouped wherever necessary.
AS PER
WEBSITE
Historical
Perspective
As a pioneer leader in the welding industry, subject
has played a significant part in the country’s industrialization and
infrastructure development. The company has progressively extended its welding
knowledge and expertise to cover many high-end specializations and cater to a
sophisticated range of user needs in
Subject is a
total solutions provider offering an uptodate suite of welding and cutting
consumables, power sources and accessories besides a full package of soft skills
and knowledge development for welding and fabrication excellence.
Group
Profile
J. B. ADVANI and COMPANY PRIVATE LIMITED
J. B. Advani and Company Private Limited (JBA) has
been the nurturing force during the nascent growth phase of various group ventures.
JBA put out its shingle in 1908 with five families joining hands for business
and trade. Recognizing emerging opportunity, JBA helped set up the partnership
with Oerlikon Welding AG Switzerland. This joint venture (the erstwhile
Advani-Oerlikon) built
ADOR FONTECH LIMITED
Life enhancing solutions for industrial components
Ador Fontech Limited (AFL) is a public listed company since 1985 and is well regarded as an industry leader in its class. Across industries and applications, AFL is a byword for Applications Engineering and Refurbishment of vital industrial metal components. AFL has a Centre for Reclamation and Surfacing Solutions which is an exclusive customer service from AFL. The Centre is engaged in development work which covers three broad areas, viz:
• Applications expertise development and
knowledge sharing
• New Applications development and innovations
• Technology adaptation aimed at converting each
application into an implementable process
ADOR POWERTRON LIMITED
Tapping
into global opportunities in Digital Power Electronics
35 years of establishing domain
competence through global technology osmosis has made ADOR OWERTRON LIMITED (APL) a dependable source of Digital Power
Solutions.
The three APL manufacturing plants carry
ISO 9001 Certification, as well as accreditation to the Government of India R
and D establishment and the benchmark environment testing CSAC-US and CE
Certification. From air-conditioning to mobile telephony and automobiles to
retail complexes or giant healthcare establishments, the APL stamp of
excellence can be found on a specialized range of high end digital electronic
equipment. The Company is also a partner of choice for several well known
Companies from all across the world.
ADOR MULTIPRODUCTS LIMITED
Dependable
Outsourcing Partnerships
ADOR MULTIPRODUCTS LIMITED
(AMPL) is another project incubated by JBA. The company originally started out
as a marketing company and then graduated to providing B2B support for
engineering products and for strategic manufacturing to leading B2C personal
care brands. AMPL is a public listed company. AMPL can be a dependable ally to
penetrate the vast potential of Pan Asian markets. It offers a captive
manufacturing base to some of the best known brands and provides the ideal
launching pad for established global brands wanting to exploit economies of
scale in the Indian market.
MILESTONES
|
Year |
Description |
|
2005 |
Consolidated ISO 14001:2004 Certification for all Consumable plants |
|
|
Sixth electrode plant at Silvasa plant commenced production. |
|
2004 |
Centre For Welding Excellence established to serve the welding
fratenity in various ways |
|
2003 |
Change of Name From "Advani-Oerlikon Limited to ADOR Welding
Limited" |
|
2001 |
Golden Jubilee Year (1951 - 2001) |
|
1998 |
Consolidated ISO 9000 Certification for all the Consumable Plants. |
|
1995 |
Single ISO 9000 Certification for all 6 Consumable Plants |
|
1992 |
Fifth Electrode plant at |
|
1986 |
Company went Public. |
|
1982 |
Set up a |
|
1979 |
Fourth electrode plant at Ahmednagar commenced production. |
|
1968 |
Change of Name From "J.B. Advani-Oerlikon Electrode Private
Limited to "Advani-Oerlikon Private Limited" due to diversified activities. |
|
1967 |
First export of there production to Middle East, |
|
1967 |
Third electrode plant commences production at Chennai ( |
|
1965 |
Electronic Division set up at Chinchwad Plant. |
|
1963 |
Welding Equipment Plant at Chinchwad. Pune commences operations. |
|
1962 |
Second electrode plant at |
|
1954 |
Setting up of Technical Service Department |
|
1952 |
First electrode plant at Bhandup, |
|
1951 |
Agreement signed between J.B. ADVANI and CO. PRIVATE LIMITED, a
holding Company and European Holding Company, Intercito Limited |
){kind=link}
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.30 |
|
|
1 |
Rs.72.92 |
|
Euro |
1 |
Rs.64.69 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.