MIRA
INFORM REPORT
|
Report Date : |
18.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
ADOR WELDING LIMITED (w.e.f. 16.10.2003) |
|
|
|
|
Formerly Known
As : |
ADVANI
OERLIKON LIMITED |
|
|
|
|
Registered
Office : |
Ador House,
6, K. Dubash Marg, Fort, Mumbai – 400001, |
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|
Country : |
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|
|
|
Financials (as
on) : |
31.03.2011 |
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|
|
|
Date of
Incorporation : |
22.10.1951 |
|
|
|
|
Com. Reg. No.: |
11-008647 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 135.985 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L70100MH1951PLC008647 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA20507E MUMA20506D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACA9076B AAACA9076A |
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|
|
Legal Form : |
A
Public Limited Liability company. The company’s shares are listed on the
Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturing of Welding Consumable and Equipments. |
|
|
|
|
No. of Employees
: |
761
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6500000 |
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|
|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old, well established and reputed company having fine track.
There appears some dip in the profitability of the company from past two
years. However, directors are reported as experienced and knowledgeable
businessmen. Trade relations are reported as trustworthy. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered good 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
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 / Corporate Office : |
Ador House,
6, K. Dubash Marg, Fort, Mumbai – 400001, |
|
Tel. No.: |
91-22-22842525 / 22872548 |
|
Fax No.: |
91-22-22873083 |
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E-Mail : |
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Website : |
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Corporate Marketing Office / International Business Division : |
5/A, Corpora,
L.B.S Marg, Bhandup (West), Mumbai-400078, Maharashtra, India |
|
Tel. No.: |
91-22-66239300 / 25962564 / 77 |
|
Fax No.: |
91-22-25966562 / 6062 |
|
E-Mail : |
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|
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Factory 1 : |
Melakottiyur, Via Vandalur, Chennai-600048, |
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Factory 2: |
Survey No. 59/11/1, Khanvel Road, Masat, Silvassa-396230,
U T of Dadra and Nagar Haveli, Union Territory |
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Factory 3 : |
Industrial Estate, |
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Factory 4 : |
Akurdi, Pune-411019, |
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Factory 5 : |
54-55, F-11 Block MIDC, Pimpri, Pune-411018, |
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Domestic Sales Offices : |
Located At: ·
Ahmedabad ·
Bangalore ·
Baroda ·
Chennai ·
Coimbatore ·
Delhi ·
Hyderabad ·
Indore ·
Jaipur ·
Jamshedpur ·
Kolkata ·
Mumbai ·
Pune ·
Raipur ·
Rourkela ·
Trichy |
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|
|
|
Overseas Office: |
|
|
Tel No.: |
0097165578601 |
|
Fax No.: |
0097165578602 |
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E mail: |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Ms.
A. B. Advani |
|
Designation : |
Executive
Chairman |
|
|
|
|
Name : |
Mr.
Raman Kumar |
|
Designation : |
Managing
Director |
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|
|
|
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 |
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|
|
|
Name : |
Mr. Vippen Sareen |
|
Designation : |
Director (Up to
23.10.2010) |
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|
|
|
Name : |
Mr.
Anil Harish |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
M. K. Maheshwari |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. P. K. Gupta |
|
Designation : |
Director |
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|
|
|
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 31.03.2012
|
Names of
Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
858626 |
6.31 |
|
|
6800531 |
50.01 |
|
|
7659157 |
56.32 |
|
|
|
|
|
|
49050 |
0.36 |
|
|
49050 |
0.36 |
|
Total
shareholding of Promoter and Promoter Group (A) |
7708207 |
56.68 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
1543311 |
11.35 |
|
|
632 |
-- |
|
|
10 |
-- |
|
|
14783 |
0.11 |
|
|
1558736 |
11.46 |
|
|
|
|
|
|
292180 |
2.15 |
|
|
|
|
|
|
2887461 |
21.23 |
|
|
646705 |
4.76 |
|
|
505178 |
3.71 |
|
|
30903 |
0.23 |
|
|
300 |
-- |
|
|
473975 |
3.49 |
|
|
4331524 |
31.85 |
|
Total
Public shareholding (B) |
5890260 |
43.32 |
|
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 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millions BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Welding Consumable and Equipments. |
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Products : |
|
PRODUCTION STATUS (AS ON : 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Welding Consumables (Arc welding Electrodes/ Continuous Welding Wires and Fluxes) |
M. Tones |
26000 (per shift) |
26000 (per shift) |
2762495 |
|
Welding Equipments / Project Engineering (Welding and Cutting Equipments/ Systems, Accessories Spares/ Service
/ Flare Tips / Incinerators / Furnaces) |
Value |
125 Cr |
125 Cr |
-- |
|
Power Generators (15-300 KVA) |
Nos. |
5000 |
5000 |
3.00 |
|
Goods for Resale (Purchases Rupees In Millions) |
-- |
-- |
-- |
39.717 |
GENERAL INFORMATION
|
No. of Employees : |
761
(Approximately) |
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Bankers : |
·
HDFC Bank Limited ·
Bank of Baroda |
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||||||||||||
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Facilities : |
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|
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Banking
Relations : |
-- |
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|
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Auditors : |
|
|
Name : |
Dalal and Shah Chartered Accountant |
|
Address : |
Mumbai, Maharashtra, India |
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|
|
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Solicitors : |
|
|
Name : |
Nanu Hormasjee and Company |
|
Address : |
Mumbai, Maharashtra, India |
|
PAN No.: |
|
|
|
|
|
Holding Company : |
J. B. Advani and
Company Private Limited (From 09th February, 2011) |
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|
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Investor having significant influence and its
associates : |
·
Ador Fontech Limited ·
Ador Multiproducts Limited ·
Ador Powertron Limited |
|
|
|
|
Other related parties where significant influence
exists : |
·
Croyolor Asia Pacific Private Limited ·
J.B.Advani Charitable Trust |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs. 300.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
*13598467 |
Equity Shares |
Rs.10/- each |
Rs. 135.985
Millions |
|
|
|
|
|
NOTES:
·
*85,26,100 Equity Shares of Rs.10/-
each, were alloted as fully paid-up bonus shares, by way of Capitalization 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.
·
*68,00,531 Equity Shares of Rs.10/-
each, are held by the holding Company M/s J.B. Advani and Company Private
Limited (w.e.f. 09th February, 2011)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
135.985 |
135.985 |
135.985 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1500.548 |
1338.779 |
1177.952 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1636.533 |
1474.764 |
1313.937 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
9.435 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
9.435 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
6.488 |
9.350 |
12.247 |
|
|
|
|
|
|
|
|
TOTAL |
1652.456 |
1484.114 |
1326.184 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
788.649 |
818.387 |
823.714 |
|
|
Capital work-in-progress |
15.701 |
4.154 |
99.599 |
|
|
|
|
|
|
|
|
INVESTMENT |
256.824 |
110.743 |
0.002 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
490.854
|
379.916
|
358.087
|
|
|
Sundry Debtors |
312.205
|
262.734
|
130.663
|
|
|
Cash & Bank Balances |
68.178
|
130.245
|
74.797
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
171.537
|
146.114
|
212.640
|
|
Total
Current Assets |
1042.774
|
919.009
|
776.187 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
136.662
|
97.016
|
129.659 |
|
|
Other Current Liabilities |
174.384
|
137.999
|
135.092
|
|
|
Provisions |
140.446
|
133.164
|
108.567
|
|
Total
Current Liabilities |
451.492
|
368.179 |
373.318 |
|
|
Net Current Assets |
591.282
|
550.830
|
402.869
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1652.456 |
1484.114 |
1326.184 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2943.735 |
2607.335 |
2238.381 |
|
|
|
Other Income |
30.404 |
46.342 |
23.556 |
|
|
|
TOTAL (A) |
2974.139 |
2653.677 |
2261.937 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
1760.206 |
1485.514 |
1242.719 |
|
|
|
Manufacturing Expenses |
185.109 |
161.018 |
161.029 |
|
|
|
Employee Cost |
283.857 |
253.163 |
246.329 |
|
|
|
Selling and Administration
Expenses |
250.524 |
240.643 |
245.693 |
|
|
|
Other Expenses |
5.451 |
9.607 |
3.262 |
|
|
|
Finished Goods Capitalized |
(0.464) |
(2.018) |
(7.994) |
|
|
|
TOTAL (B) |
2484.683 |
2147.927 |
1891.038 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
489.456 |
505.750 |
370.899 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5.535 |
5.659 |
19.813 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
483.921 |
500.091 |
351.086 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
126.262 |
131.136 |
132.817 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
357.659 |
368.955 |
218.269 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
99.138 |
105.603 |
92.551 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
258.521 |
263.352 |
125.718 |
|
|
|
|
|
|
|
|
|
Add / |
Prior Period
Adjustments |
0.000 |
(7.540) |
4.740 |
|
|
Less |
Excess / (Short)
Provision of Taxes in respect of earlier years |
(1.610) |
0.157 |
(8.849) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
138.372 |
47.545 |
69.574 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
100.000 |
70.000 |
80.000 |
|
|
|
Proposed Dividend |
81.591 |
81.591 |
54.394 |
|
|
|
Provision for Tax on Proposed Dividend |
13.551 |
13.551 |
9.244 |
|
|
BALANCE CARRIED
TO THE B/S |
200.141 |
138.372 |
47.545 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
18.89 |
18.82 |
8.94 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
741.600 |
776.880 |
785.030 |
1112.670 |
|
Total Expenditure |
661.400 |
685.710 |
716.830 |
965.450 |
|
PBIDT (Excl OI) |
80.200 |
91.170 |
68.200 |
147.220 |
|
Other Income |
3.930 |
8.090 |
5.750 |
10.240 |
|
Operating Profit |
84.130 |
99.260 |
73.950 |
157.460 |
|
Interest |
1.400 |
2.100 |
2.160 |
3.130 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
82.730 |
97.160 |
71.790 |
154.330 |
|
Depreciation |
29.550 |
30.530 |
31.470 |
32.850 |
|
Profit Before Tax |
53.180 |
66.630 |
40.320 |
121.480 |
|
Tax |
14.110 |
18.410 |
10.510 |
29.660 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
39.080 |
48.220 |
29.810 |
91.810 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
38.080 |
48.220 |
29.810 |
91.810 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.69
|
9.92 |
5.56 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.15
|
14.15 |
9.75 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
19.53
|
21.24 |
13.64 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22
|
0.25 |
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.65
|
0.25 |
0.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.31
|
2.50 |
2.08 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1. Year of Establishment |
Yes |
|
2. Locality of the firm |
Yes |
|
3. Constructions of the firm |
Yes |
|
4. Premises details |
No |
|
5. Type of Business |
Yes |
|
6. Line of Business |
Yes |
|
7. Promoter’s background |
No |
|
8. No. of Employees |
Yes |
|
9. Name of person contacted |
No |
|
10. Designation of contact person |
No |
|
11. Turnover of firm for last three years |
Yes |
|
12. Profitability for last three years |
Yes |
|
13. Reasons for variation <> 20% |
------ |
|
14. Estimation for coming financial year |
No |
|
15. Capital in the business |
Yes |
|
16. Details of sister concerns |
Yes |
|
17. Major suppliers |
No |
|
18. Major customers |
No |
|
19. Payments terms |
No |
|
20. Export / Import details |
No |
|
21. Market information |
------ |
|
22. Litigations that the firm / promoter involved |
------ |
|
23. Banking Details |
Yes |
|
24. Banking facility details |
Yes |
|
25. Conduct of the banking account |
------ |
|
26. Buyer visit details |
------ |
|
27. Financials, if provided |
Yes |
|
28. Incorporation details, if applicable |
Yes |
|
29. Last accounts filed at ROC |
Yes |
|
30. Major Shareholders, if available |
No |
OPERATIONS
In the financial
year 2010-11, the operational and other income went up by over 12%. The year ended
with an operational and other income of Rs. 2974.100 Millions (Rs. 2653.700
Millions)*.
The Company’s
Sales and Income during the financial year 2010-11 comprised of the following:
·
Welding Consumables at Rs.2228.500 Millions
(Rs.1960.100 Millions)*
·
Equipment and Project Engineering at Rs.715.300
Millions (Rs.647.300 Millions)*
·
Other Income at Rs.30.400 Millions (Rs. 46.300
Millions)*
DOMESTIC BUSINESS
CONSUMABLES
Domestic Sales of Consumables
recorded a volume growth of 14% over the previous year. This was driven by a
handsome increase in volume sales of Special Electrodes and the volume sales of
Wires and Fluxes, in particular.
EQUIPMENT
The Equipment
business grew by 11% over the previous year. The Welding Equipment numbers sold
were 22% more than that of last year – driven by a 45% increase in DC-MMAW
Equipment sales numbers. The Project Engineering Business just made past the
last year level, as the order flow improved only
towards the end of
the year by creating an order inventory of over Rs.40.000 Millions; most of
this will be executed in the first quarter of this year.
EXPORTS
During the year,
the exports registered a growth of about 12% compared to the previous year. The
Export Income during the financial year 2010-11 was at Rs.278.200 Millions (Rs.
248.200 Millions)*. The growth in exports was achieved through Welding
Consumables and Project Sales.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
BUSINESS SCENARIO
AND PERFORMANCE SNAP SHOT
In the financial
year 2010-11, the Indian economy grew at about 9%, powered by consumer spending
and growth in infrastructure related industries and project. Majority of the
Welding growth was driven by power, oil and gas, steel construction and
railways. The year was also marked by high inflation and postponement of the
much expected CAPEX plans of the industry. In the second half of the last
financial year, raw material prices went up substantially putting severe
pressure on the margins. Their Company could not pass on the increase in the
raw material price due to severe competition from the global as well as
domestic competitors. The pressure on the margins was particularly high in
general purpose welding electrodes and the solid wire business. In such
scenario, the real challenge was managing of product mix and the operating
costs, the success in which has enabled us to mitigate the negative impact on
margins, to some extent. Business of Consumables grew by 14% over the last year
and Equipment registered a growth of 11%. The profit on Consumables dropped by
2% and on Equipment by 1%.
Overall Export
business grew to Rs.280.000 Millions from Rs.250.000 Millions. This growth in Exports
came particularly from Project business, whereas the Welding business in
Overseas Markets actually dropped to Rs.190.000 Millions from Rs.210.000
Millions. However, with the oil prices hardening, HY2 business in export
markets was higher than business in HY1. They are expecting that the growth
trend will continue in the next year.
Company’s
expansion of capacity of Solid Wires was completed during the year at Raipur
Plant. The volume of business in this segment has shown significant growth and
would continue to grow in the near future. They expect to capture substantial
market share in this segment.
The Company
continues to maintain its’ unique position as a leader in Quality in the
Industry. This is evidenced by the acceptance of their special products, with
special / customized attributes for critical applications, by special
fabricators in the Oil and Gas Sector, Power sector and Equipment fabrication
with special MOC. Their quality labs are regularly upgraded to provide
certification of stringent performance qualifications demanded for new welding
applications in the growing infra sector.
INCOME STATEMENT ANALYSIS
The year was
marked by high inflation. The total operating revenues for the year reported a
growth of 13%. The total consumable business for the year was Rs.2230.000
Millions registering a growth of about 14% over the previous year. The
Equipment business was over Rs.710.000 Millions registering a growth of around
11% over the previous year.
The other income
was at Rs.30.400 Millions (Rs.46.300 Millions, last year – out of which Rs.
26.900 Millions was from sale of fixed assets), mainly accruing from prudent
Management of Investments and exchange rate difference. The material costs as a
percentage to sales at 60% (last year 57%) were higher on account of the
hardening of raw material prices during the second half of the year and which
could not be fully passed on to customers. Also, the sales product mix grew
more in favour of solid wires, which conventionally have lower margins. They are
continuously working at strategic sourcing of raw materials and improving the
sales product mix of wires, especially for the high value business in oil and
gas, power, etc.
Budgetary control
of other operating expenses resulted in a slightly improved ratio to sales over
last year. While the controls on spares and consumable stores resulted in
reduced costs, the increase in energy costs due to tariff hikes and power
supply outages added to the manufacturing costs. Transportation costs were up
by Rs. 4.700 Millions, essentially due to growth in sales. As a ratio to sales,
this was maintained at 1% through tight Management of transport contracts.
The effective tax
rate for the year has declined from 29% to 28%, due to increase in profits from
Silvassa Unit, tax free income from Mutual Funds and reduction in surcharge.
The PBT was at Rs. 357.700 Millions for financial year 2010-11 compared to Rs.
369.000 Millions (Rs. 342.000 Millions, excluding extra ordinary income) for
financial year 2009-10. The ratio of PBT to sales is 12.15% for financial year
2010-11 compared to 14.15% for financial year 2009-10.
The drop in PBT
commensurate with increase in sales is due to increase in material cost to
sales. As explained, this is because the increase in Raw Material costs could
not be fully passed on to customers and the increase in sales mostly came from
Wire products, where the margins are conventionally lower.
BALANCE SHEET ANALYSIS
The Company funded
all its operating expenses and capital investments from internal accruals and
continues to be DEBT FREE Company as on 31st March, 2011.
The Capital
expenditure of Rs. 101.400 Millions was invested primarily on additional
capacity for wire products. This has since been commissioned and expected to
add over 30% to previous capacity. Some investments were made to upgrade the
production lines for process quality and production efficiency improvements.
The R and D infrastructure for equipment was augmented for new technology
absorption.
The working
capital investment (net current assets including current investment) increased
by Rs. 186.500 Millions, an increase of about 6%. Investments increased by Rs.
146.100 Millions as a result of deployment of surplus cash in debt and liquid
schemes of Mutual Funds. The growth in value of debt funds, as on 31st March,
2011 is around Rs. 4.700 Millions.
The inventory
holding period is 61 days in the current year as against 53 days in the
previous year. It was a strategic decision to hold inventory of critical raw
material in anticipation of likely raw material price increase from April 2011.
The debtors are 39 days as at 31st March, 2011 as against 29 days due to an
increase in sales to direct customers on credit. This includes an amount of Rs.
12.700 Millions over a period of 01 year due from the project business, the
delay for which is due to commissioning delays at customer behest; however,
these dues for payment are confirmed by the customers. Current liabilities are
up by 29% due to sales growth and payables at the end of the year.
OUTLOOK, CONCERNS AND RISKS
Outlook for
financial year 2011-12 looks generally encouraging with the provision of a
higher Central Government budgetary allocation to the infra sector and the promised
focus to raise Manufacturing GDP from 15% to 25% over the next 10 years.
Expansion plan of railways for manufacturing of additional 18,000 wagons also
provides another growth opportunity. However, rising inflation, increase in the
major raw material prices and hardening interest rates are major concerns. New
competition from global players setting up manufacturing activities locally
would increase pressure on the margins. They plan to implement strategic
initiatives related to strengthening the customer relationships, new business
development and new product launches in our marketing plan and cost control,
productivity improvements in their manufacturing. These initiatives would
enable increase the market share at reasonable margins.
FIXED ASSETS
- Land
- Building
- Plant and machinery
- Electrical
Installations
- Furniture
and Fixtures
- Vehicles
- Air
Conditioners
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2012
(Rs. in millions)
|
Sr. No. |
Particular |
Quarter Ended |
Year Ended |
|
|
|
|
31.03.2012 (Unaudited) |
31.12.2011 (Unaudited) |
31.03.2012 (Audited) |
|
1. |
Net Sales/Income
from Operations |
1112.674 |
782.147 |
3409.063 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost of
Materials consumed |
742.556 |
475.598 |
2201.315 |
|
|
Purchases of
Stock-in-trade |
6.704 |
1.809 |
12.241 |
|
|
Changes in
inventories of finished goods, work-in-progress and stock-in-trade |
(34.611) |
38.305 |
(30.465) |
|
|
Employee
benefits expense |
98.885 |
76.502 |
325.374 |
|
|
Depreciation and
amortisation expense |
32.856 |
31.484 |
124.454 |
|
|
Other
Expenditure |
151.922 |
124.761 |
521.286 |
|
|
Total |
998.312 |
748.459 |
3154.205 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and Exceptional
Items (1-2) |
114.362 |
33.688 |
254.858 |
|
|
|
|
|
|
|
4. |
Other Income |
10.244 |
8.637 |
35.137 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
124.606 |
42.325 |
289.995 |
|
|
|
|
|
|
|
6. |
Interest |
3.130 |
2.159 |
8.789 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
121.476 |
40.166 |
281.206 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
121.476 |
40.166 |
281.206 |
|
|
|
|
|
|
|
10. |
Tax
Expense |
|
|
|
|
|
a) Current tax |
28.100 |
11.200 |
73.179 |
|
|
b) Deferred tax |
1.563 |
(0.840) |
(0.884) |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
91.813 |
29.806 |
208.911 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
91.813 |
29.806 |
208.911 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
135.985 |
135.985 |
135.985 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
1614.947 |
|
|
|
|
|
|
|
16. |
Earnings Per Share |
6.75 |
2.19 |
15.36 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
5890260 |
5890260 |
5890260 |
|
|
- Percentage of Shareholding |
43.32% |
43.32% |
43.32% |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital of
the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
7708207 |
7708207 |
7708207 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100% |
100% |
100% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
56.68% |
56.68% |
56.68% |
|
Particulars
|
3
Months ended on March 31, 2012 |
|
Pending at the beginning of the quarter |
-- |
|
Received during the quarter |
8 |
|
Disposed of during the quarter |
8 |
|
Remaining unresolved at the end of the quarter |
-- |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. in millions)
|
Sl. No. |
|
Particulars |
Quarter Ended |
Nine Months
Ended |
|
|
|
31.03.2012 |
31.12.2011 |
31.03.2012 |
||
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumables |
807.327 |
623.630 |
2628.115 |
|
|
|
Equipments &
Project Engineering |
305.347 |
158.517 |
780.948 |
|
|
|
|
|
|
|
|
|
|
Net Sales /
Income from Operations |
1112.674 |
782.147 |
3409.063 |
|
|
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumables |
87.219 |
50.240 |
283.230 |
|
|
|
Equipments &
Project Engineering |
59.866 |
13.103 |
90.337 |
|
|
|
|
|
|
|
|
|
|
Total |
147.085 |
63.343 |
373.567 |
|
|
|
|
|
|
|
|
|
|
Less :Interest and Finance Charges |
3.130 |
2.159 |
8.789 |
|
|
|
Less : Other Unallocable Expenses and Extra Ordinary Items |
22.479 |
21.018 |
83.572 |
|
|
|
|
|
|
|
|
|
|
Total Profit Before
Tax |
121.476 |
40.166 |
281.206 |
|
|
|
|
|
|
|
|
3 |
|
Capital Employed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumables |
1030.778 |
958.584 |
1030.778 |
|
|
|
Equipments &
Project Engineering |
386.913 |
398.678 |
386.913 |
|
|
|
Unallocable
Corporate Assets net of Unallocable Corporate Liabilities |
333.241 |
396.684 |
333.241 |
|
|
|
|
|
|
|
|
|
|
Total Capital
Employed |
1750.932 |
1753.946 |
1750.932 |
Notes
1.
Disclosure of Balance Sheet items as per clause 41
of the Listing Agreement for the year ended 31st March 2012.
STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Millions)
|
PARTICULARS |
31.03.2012
AUDITED |
|
Equity and
liabilities |
|
|
Shareholders' fund |
|
|
Share capital |
135.985 |
|
Reserve &
surplus |
1614.947 |
|
Sub-total - Shareholders' funds |
1750.932 |
|
Non - current
liabilities |
|
|
Long term
borrowings |
10.738 |
|
Deferred tax
liability (net) |
5.604 |
|
Sub-total - Non-current liabilities |
16.342 |
|
Current
liabilities |
|
|
Short term
borrowings |
-- |
|
Trade payables |
211.496 |
|
Other current
liabilities |
187.680 |
|
Short term
provisions |
163.756 |
|
Sub-total - Current liabilities |
562.932 |
|
Total - Equity & Liabilities |
2330.206 |
|
|
|
|
Assets |
|
|
Non-current
assets |
|
|
Fixed assets |
|
|
Tangible assets |
767.992 |
|
Intangible
assets |
2.089 |
|
Capital work in
progress |
19.808 |
|
Non-current
investment |
35.002 |
|
Long term loans
& advances |
28.167 |
|
Other
non-current assets |
6.084 |
|
Sub-total - Non-current Assets |
859.142 |
|
Current assets |
|
|
Current
Investments |
327.669 |
|
Inventories |
532.226 |
|
Trade
receivables |
365.754 |
|
Cash & bank
balances |
53.429 |
|
Short term loans
& advances |
93.952 |
|
Other current
assets |
98.034 |
|
Sub-total - Current Assets |
1471.064 |
|
Total – Assets |
2330.206 |
2.
The above audited financial results for the
financial year 2011-12 have been approved by the Board of Directors at its
meeting held on 26th April, 2012.
3.
The Board has recommended a Dividend for the
financial year 2011-12 at Rs. 6 /- per share (i.e. 60% of the face value of
Rs.10/- each). 4. The figures of last quarter are the balancing figures between
audited figures in respect of the financial year and the published year to date
figures up to the third quarter of the current financial year.
4.
Previous Period figures have been regrouped
wherever necessary.
WEBSITE DETAILS
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 India and in overseas markets.
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 India's welding industry during its most
formative period and, over a 55-year time horizon, gained strong leadership
status in India's welding industry. The other strategically planned group
initiatives have also matured into growing businesses which gives the ADOR
Group a strong foothold across India's manufacturing and core sectors.
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.
KEY MILESTONES
·
AWL – All Welding Consumables plant received the Consolidated ISO 14001:2004 certification for all
consumables plants -2011
·
AWL Celebrating 60 Years of Business
·
In-house R and D units (1. TDC-Pimpri, Pune 2. TDC
- Silvassa) were registered with the Department of Scientific and Industrial
Research (DSIR) -2010
·
AWL and AMET (Advanced Manufacturing Engineering
Technologies) formed cooperative alliance to better serve the Market Segments
in India and Middle East. -2010
·
ADOR Welding Academy moved
to Pimpri, Pune – 2009
·
Project e-Genx implemented
- Complete ERP Solution for company – 2008
·
Pune plant achieves- 'U' ,
' R' and 'NB' certification and stamps from 'ASME' and 'National Board of
Boilers and Inspectors' of USA - 2008
·
Ador Group completes 100
years – 2008
·
Overseas office opened in
Sharjah –2006
·
Consolidated ISO 14001:2004
certification for all consumables plants -2005
·
Plant Commence Production
at Silvassa - 2003
·
Change of Name from Advani
– Oerlikon to Ador Welding Limited – 2003
·
Golden Jubilee Year - 2001
·
Consolidated ISO 9000
certification for all consumables plants – 1998
·
Company goes Public – 1986
·
Set up a Higher Secondary
School at Birgaon, Raipur-1982
·
First export of our
production to Middle East, Africa and South East Asian Countries-1967
·
New Electrode plant
commence production at Chennai- 1967
·
Welding Equipment plant at
Chinchwad, Pune commence production-1963
·
New Electrode plant at Raipur
in M.P. commence production-1962
·
First Electrode plant at
Bhandup, Mumbai commence production-1952
·
Agreement signed between
J.B. Advani and Company Private Limited, a holding company and European Holding
Company, Intercito Limited, Switzerland- 1951.
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. 55.14 |
|
|
1 |
Rs. 86.29 |
|
Euro |
1 |
Rs. 67.72 |
INFORMATION DETAILS
|
Information
Gathered by : |
-- |
|
|
|
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
52 |
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.