MIRA
INFORM REPORT
|
Report Date : |
12.11.2012 |
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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|
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Financials (as
on) : |
31.03.2012 |
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|
|
Date of
Incorporation : |
22.10.1951 |
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|
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Com. Reg. No.: |
11-008647 |
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|
|
Capital Investment
/ Paid-up Capital : |
Rs. 135.985
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L70100MH1951PLC008647 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA20507E /
MUMA20506D |
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|
|
|
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. |
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|
|
|
No. of Employees
: |
789 (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 7000000 |
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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 a subsidiary of J.B. Advani and Company Private Limited.
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term Bank facilities : AA |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
February 2012 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term Bank facilities : A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
February 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office / Corporate Office : |
Ador
House, 6, K. Dubash Marg, Fort, Mumbai – 400001, |
|
Tel. No.: |
91-22-22842525 / 22872548 / 66239300 / 35 |
|
Fax No.: |
91-22-22873083 /25966562 / 6062 |
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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, |
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Tel. No.: |
91-22-66239300 / 25962564 / 77 |
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Fax No.: |
91-22-25966562 / 6062 |
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E-Mail : |
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Factory 1 : |
Melakottiyur, Via Vandalur, Chennai-600048, |
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Tel. No.: |
91-44-27477115 / 116 |
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Fax No.: |
91-44-27477117 |
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E-Mail : |
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Factory 2: |
Survey No. 59/11/1, Khanvel Road, Masat, Silvassa-396230,
Union Territory of Dadra and Nagar Haveli, India |
|
Tel. No.: |
91-260-2632287/ 3258843/ 2640447 |
|
Fax No.: |
91-260-2632776 |
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E-Mail : |
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Factory 3 : |
Industrial Estate, |
|
Tel. No.: |
91-771-4016288/ 2562201 |
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Fax No.: |
91-771-2562204 |
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E-Mail : |
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Factory 4 : |
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Tel. No.: |
91-20-40706000 |
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Fax No.: |
91-20-40706001 |
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E-Mail : |
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Factory 5 : |
54-55, F-11 Block MIDC, Pimpri, Pune-411018, |
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Tel. No.: |
91-20-27470224 |
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Fax No.: |
91-20-27470224 |
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Domestic Sales Offices : |
Located At: ·
Ahmedabad ·
·
·
Chennai ·
·
·
·
·
Jaipur ·
·
Kolkata ·
Mumbai ·
Pune ·
·
·
Trichy |
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|
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Overseas Office: |
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|
Tel No.: |
0097165578601 |
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Fax No.: |
0097165578602 |
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E mail: |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Ms.
A. B. Advani |
|
Designation : |
Executive
Chairman |
|
|
|
|
Name : |
Mr.
Raman Kumar |
|
Designation : |
Managing
Director (upto 10th May 2012) |
|
|
|
|
Name : |
Mr. S. M. Bhat |
|
Designation : |
Managing Director (w.e.f.
11th May 2012) |
|
|
|
|
Name : |
Mrs. N.
Malkani Nagpal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
R. A. Mirchandani |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. A. T. Malkani
|
|
Designation : |
Director |
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|
|
|
Name : |
Mr. D. A. Lalvani
|
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Vippen Sareen |
|
Designation : |
Director |
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|
|
|
Name : |
Mr.
Anil Harish |
|
Designation : |
Director |
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|
|
|
Name : |
Mr.
M. K. Maheshwari |
|
Designation : |
Director |
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|
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|
Name : |
Mr. P. K. Gupta |
|
Designation : |
Director |
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|
|
Name : |
Mr. R. N. Sapru |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. K. Digvijay
Singh |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr.
V. M. Bhide |
|
Designation : |
Company Secretary
|
|
|
|
|
Executive
Management Team: |
Ř Mr.
S. M. Bhat Ř Mr.
G. Banerjee Ř Mr.
Joseph Mani Ř Mr.
L. Sundar Ř Mr.
V. M. Bhide Ř Mr.
H. K. Bhatia Ř Mr.
S. S. Bhoi Ř Mr.
J. Rajagopalan Ř Mr.
S. Ajay Kumar Ř Mr.
M. G. Gadre Ř Mr.
A. Vilekar Ř Mr.
H. Venkataraman Ř Mr.
M. Pandey Ř Mr.
S. Ragit Ř
Mr. N. Sankarasubramaniyam |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
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 |
|
|
|
|
|
|
|
|
1484843 |
10.92 |
|
|
632 |
0.00 |
|
|
10 |
0.00 |
|
|
3925 |
0.03 |
|
|
1489410 |
10.95 |
|
|
|
|
|
|
298519 |
2.20 |
|
|
|
|
|
|
2928081 |
21.53 |
|
|
671533 |
4.94 |
|
|
502717 |
3.70 |
|
|
32511 |
0.24 |
|
|
300 |
0.00 |
|
|
469906 |
3.46 |
|
|
4400850 |
32.36 |
|
Total
Public shareholding (B) |
5890260 |
43.32 |
|
Total
(A)+(B) |
13598467 |
100.00 |
|
© Shares held by Custodians and against which Depository Receipts have
been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
13598467 |
0.00 |
(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 : |
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GENERAL INFORMATION
|
No. of Employees : |
789 (Approximately) |
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Bankers : |
Ř HDFC
Bank Limited Ř Bank
of |
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|
||||||||||||
|
Facilities : |
|
||||||||||||
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|
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Dalal and Shah Chartered Accountants |
|
Address : |
Mumbai, |
|
|
|
|
Solicitors : |
Nanu Hormasjee and Company |
|
Address : |
Mumbai, |
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|
|
|
Holding Company : |
J. B. Advani and Company Private Limited |
|
|
|
|
Investor having
significant influence and its associates : |
Ř Ador Powertron
Limited Ř
Ador Fontech Limited Ř Ador
Multiproducts Limited |
|
|
|
|
Other related
parties where significant Influence exists : |
Ř Croyolor Asia
Pacific Private Limited Ř J. B. Advani Charitable
Trust |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3,00,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 300.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,35,98,467 |
Equity Shares |
Rs.10/- each |
Rs. 135.985
Millions |
|
|
|
|
|
Reconciliation of shares
|
Particulars |
No. of shares |
Rs. in Millions |
|
Equity shares: |
|
|
|
Shares
outstanding at the beginning of the year |
1,35,98,467 |
135.985 |
|
Shares issued during the year |
-- |
-- |
|
Shares bought back during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
1,35,98,467 |
135.985 |
Rights, preferences
and restrictions attached to shares
The Company has
only one class of shares referred to as equity shares having a par (face) value
of Rs. 10/- per share. Each shareholder is eligible for one vote per share
held. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting, except in
case of interim dividend.
In the event of
liquidation of the Company, the equity shareholders will be entitled to receive
the remaining assets of the Company, after distribution of all the preferential
amounts, in proportion to their shareholding.
Shares held by Holding Company
|
Particulars |
No. of shares |
|
Equity shares: |
|
|
J. B. Advani and Company Private Limited |
68,00,531 |
Details of shares held by shareholders holding more than 5% of aggregate
shares in the Company
|
Particulars |
No. of shares |
% of holding |
|
Equity shares: |
|
|
|
J. B. Advani and Company Private Limited |
68,00,531 |
50.01 |
|
Reliance Capital Trustee Company Limited |
6,85,770 |
5.04 |
|
Total |
74,86,301 |
55.05 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
135.985 |
135.985 |
135.985 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1614.947 |
1500.548 |
1338.779 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1750.932 |
1636.533 |
1474.764 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
10.738 |
6.414 |
0.000 |
|
|
TOTAL BORROWING |
10.738 |
6.414 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
5.604 |
6.488 |
9.350 |
|
|
|
|
|
|
|
|
TOTAL |
1767.274 |
1649.435 |
1484.114 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
770.081 |
788.649 |
818.387 |
|
|
Capital work-in-progress |
19.808 |
9.902 |
4.154 |
|
|
|
|
|
|
|
|
INVESTMENT |
362.671 |
256.824 |
110.743 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
532.226
|
490.854 |
379.916
|
|
|
Sundry Debtors |
365.754
|
312.205 |
262.734
|
|
|
Cash & Bank Balances |
53.429
|
62.970 |
130.245
|
|
|
Other Current Assets |
104.118
|
86.333 |
0.000
|
|
|
Loans & Advances |
122.119
|
96.211 |
146.114
|
|
Total
Current Assets |
1177.646
|
1048.573 |
919.009
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
211.496
|
136.662 |
97.016
|
|
|
Other Current Liabilities |
187.680
|
177.405 |
137.999
|
|
|
Provisions |
163.756
|
140.446 |
133.164
|
|
Total
Current Liabilities |
562.932
|
454.513 |
368.179 |
|
|
Net Current Assets |
614.714
|
594.060 |
550.830
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1767.274 |
1649.435 |
1484.114 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3409.063 |
2952.029 |
2607.335 |
|
|
|
Other Income |
35.137 |
22.110 |
46.342 |
|
|
|
TOTAL (A) |
3444.200 |
2974.139 |
2653.677 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2201.315 |
1759.627 |
|
|
|
|
Purchase of Stock-in-Trade |
12.241 |
39.717 |
|
|
|
|
Changes in
inventories of finished goods, work-in-progress and stock-in-trade |
(30.465) |
(39.138) |
|
|
|
|
Employee benefit
expense |
325.374 |
283.857 |
|
|
|
|
Other expenses |
521.286 |
441.055 |
|
|
|
|
TOTAL (B) |
3029.751 |
2485.118 |
2147.927 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
414.449 |
489.021 |
505.750 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
8.789 |
5.535 |
5.659 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
405.660 |
483.486 |
500.091 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
124.454 |
126.327 |
131.136 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
281.206 |
357.159 |
368.955 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
72.295 |
100.248 |
105.603 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
208.911 |
256.911 |
263.352 |
|
|
|
|
|
|
|
|
|
Add / |
PRIOR PERIOD
ADJUSTMENTS |
N.A. |
0.000 |
(7.540) |
|
|
|
|
|
|
|
|
|
Less |
EXCESS / (SHORT)
PROVISION OF TAXES IN RESPECT OF EARLIER YEARS |
N.A. |
(1.610) |
0.157 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
200.141 |
138.372 |
47.545 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
N.A. |
100.000 |
70.000 |
|
|
|
Proposed Dividend |
|
81.591 |
81.591 |
|
|
|
Provision for Tax on Proposed Dividend |
|
13.551 |
13.551 |
|
|
BALANCE CARRIED
TO THE B/S |
N.A. |
200.141 |
138.372 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports (Net of Returns) |
339.150 |
278.221 |
246.837 |
|
|
|
Commission received |
0.371 |
0.000 |
1.377 |
|
|
TOTAL EARNINGS |
339.521 |
278.221 |
248.214 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Components |
123.288 |
69.727 |
128.599 |
|
|
|
Capital Goods |
37.810 |
28.329 |
0.000 |
|
|
|
Spares, etc. |
3.983 |
0.000 |
5.306 |
|
|
|
Purchase of goods for resale |
8.733 |
0.000 |
1.193 |
|
|
TOTAL IMPORTS |
173.814 |
98.056 |
135.098 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
15.36 |
18.89 |
18.82 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
|
|
1st Quarter |
2nd Quarter |
|
Sales Turnover |
843.660 |
863.840 |
|
Total Expenditure |
765.650 |
772.460 |
|
PBIDT (Excl
OI) |
78.010 |
91.380 |
|
Other Income |
12.640 |
-1.900 |
|
Operating
Profit |
90.650 |
89.480 |
|
Interest |
1.450 |
1.920 |
|
Exceptional
Items |
0.000 |
0.000 |
|
PBDT |
89.200 |
87.560 |
|
Depreciation |
28.000 |
29.320 |
|
Profit
Before Tax |
61.200 |
58.240 |
|
Tax |
16.020 |
16.930 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Reported PAT |
45.180 |
41.310 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
45.180 |
41.310 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
6.07 |
8.64
|
9.92 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.25 |
12.10
|
14.15 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.44 |
19.44
|
21.24 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16 |
0.22
|
0.25 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.33 |
0.28
|
0.25 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.09 |
2.31
|
2.50 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
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
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
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 |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
OPERATIONS
In the financial
year 2011-12, the operational and other income went up by over 16%. The year ended
with an operational and other income of Rs. 3444.200 Millions (`2974.100
Millions)*.
The Company’s
Sales and Other Income during the financial year 2011-12 comprised of the
following:
Welding
Consumables at Rs. 2628.100 Millions (Rs. 2234.500 Millions)*
Equipment &
Project Engineering at Rs. 781.000 Millions (Rs. 717.500 Millions)*
Other Income at Rs. 35.100 Millions (Rs. 22.100 Millions)*
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
BUSINESS
SCENARIO AND PERFORMANCE SNAP SHOT:
During
the Financial Year (FY) 2011-12 the Indian Economy saw its GDP slip to about 7%
from the higher rates of growth of 8.5% - 9% seen in the past years. In
addition to a slowing GDP, the economy also saw inflation average in excess of
9% for FY 2011-12 with the peak seen close to double digits in the third
quarter. Fiscal deficit which was earlier projected at 4.6% of GDP failed to
meet its target and ended the year at 5.9%. Compounded to this was the
Liquidity crunch which was felt all throughout the year. Money supply was short
and this affected the cash flows severely. Major slowdown was observed in the
Power projects, Construction / Infra projects and Auto sector - which are
traditionally the growth engines for the Welding Industry. The year was also
marked by high inflation and consequent postponement of the much expected CAPEX
plans of the relevant industries. During the financial year the raw material
prices went up substantially - some to unforeseen levels - putting severe
margin pressure for all in the industry.
Notwithstanding
the unfavourable economic environment, our Company pursued its aggressive
campaign to improve its market share and move forward in its quest for
regaining the industry leadership position. The Company registered a growth in
its Turnover of 16% over last year. The business of Consumables grew by 18%
over the last year and Equipments by 9%. It is their estimate that based on the
mere 5% growth rate, attained by the leading competitor in the last year, they
should have gained about 2% in their market share! The marketing drive was
spearheaded by a sustained expansion of their distribution network - they
increased the numbers from 92 in the previous year to 120 in the current year.
Motivational policies drove the distribution – based business growth of 11%
over last year, notwithstanding the 13% increase from direct end-user business
segment, over the same period. Continuous efforts over the last 3 years at
improving the effectiveness of Field Sales management to retain existing
customers as well as gain new customers have created a funnel of opportunities
that they will harness on a continuous basis.
During
the year, the Company executed its first biggest single order for PEB amounting
to Rs. 164.300 Millions. However, the profit on Consumables dropped by 20.4%
whereas on Equipment it grew by 1%. The overall PBT dropped by 21% over last
year. This was due to the 4% drop in gross margins, because of their inability
to fully pass on the impact of Raw Material cost increases to customers and the
product mix shifting to lower contribution products in line with market trends.
Most of the other expenses were kept under check.
Overall
Export business grew to Rs. 340.000 Millions from Rs. 270.000 Millions. This
growth in Exports came particularly from the Welding business in Overseas
Markets where the sales of Consumables grew from Rs. 140.000 Millions to Rs.
240.000 Millions and in the Equipment business from Rs. 50.000 Millions to Rs.
90.000 Millions. However the Project business dropped to Rs.10.000 Millions
from Rs. 80.000 Millions of last year. They are expecting that the growth trend
will continue in the next year and aim to achieve a turnover of Rs. 500.000
Millions in FY 2012-13.
Company’s
expansion of capacity of Solid Wires at Raipur Plant and improved capacity
utilization of SAW wires and Fluxes as well as FCAW wires, has delivered
significant increase in the volume of business in this segment. This will
continue to grow in the near future and they expect to capture substantial
market share in this segment.
Quality
remains the main focus area for the Company and this has helped it maintain its
unique position as a leader for Quality products in the Industry. This was
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.
OUTLOOK,
CONCERNS AND RISKS:
Outlook
for the financial year 2012-13 looks generally encouraging with the Government
bringing in higher budgetary allocation to the infra sector and the promised
focus to raise Manufacturing GDP over the next 10 years. Expansion plan
especially in the railway sector for manufacturing of additional 18,000 wagons
also provides another growth opportunity. RBI has recently announced rate cuts
in the CRR and this is encouraging as it will bring in liquidity in the market.
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 their marketing plan and cost control, productivity
improvements in their manufacturing. These initiatives would enable increase
the market share at reasonable margins. Also the Company is exploring
opportunities for Technology Tie-ups beyond the shores of
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2012
(Rs. in millions)
|
Particular |
For the Quarter
Ended |
|
|
|
30.09.2012 (Unaudited) |
30.06.2012 (Unaudited) |
|
Income from Operations |
|
|
|
Net Sales/Income from Operations |
859.840 |
840.473 |
|
Other Operating Income |
4.003 |
3.182 |
|
Total Income from
operations (net) |
863.843 |
843.655 |
|
|
|
|
|
Expenses |
|
|
|
(a) Cost of
Materials consumed |
545.062 |
571.348 |
|
(b) Purchases of Stock-in-trade |
8.335 |
4.260 |
|
(c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
(1.245) |
(31.014) |
|
(d) Employee
benefits expense |
87.022 |
83.581 |
|
(e) Depreciation and
amortisation expense |
29.316 |
27.998 |
|
(f) Other
Expenditure |
133.298 |
137.475 |
|
Total Expenses |
801.788 |
793.648 |
|
Profit from Operations
before Other Income, Finance costs and Exceptional item |
62.055 |
50.007 |
|
Other Income |
(1.896) |
12.638 |
|
Profit/ Loss from
Ordinary Activities before Finance costs and Exceptional item |
60.159 |
62.645 |
|
Finance costs |
1.920 |
1.445 |
|
Profit/ Loss from
Ordinary Activities after Finance costs but Exceptional item |
58.239 |
61.200 |
|
Exceptional
item |
-- |
-- |
|
Profit/ Loss from Ordinary Activities
before tax |
58.239 |
61.200 |
|
Tax Expenses |
|
|
|
- Provision for
Current Tax{incl excess/(short) provision of taxes} |
16.500 |
17.100 |
|
- Deferred Tax
Charge /(Credit) |
0.427 |
(1.079) |
|
Net Profit/ Loss from Ordinary Activities
after tax |
41.312 |
45.179 |
|
Extraordinary
Items |
-- |
-- |
|
Net Profit for the period |
41.312 |
45.179 |
|
Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
135.985 |
135.985 |
|
Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
-- |
-- |
|
Earnings per
share (before extraordinary items) Basic and diluted EPS (not annualised) (in Rs.) * Includes exchange fluctuation gain/(loss) |
3.04 |
3.32 |
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
1. Public
shareholding |
|
|
|
Number of
Shares |
5890260 |
5890260 |
|
Percentage of Shareholding |
43.32% |
43.32% |
|
2. Promoters
and promoter group shareholding |
|
|
|
a)
Pledged/Encumbered |
|
|
|
- Number of Shares |
-- |
-- |
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
-- |
-- |
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
-- |
-- |
|
|
|
|
|
Non - encumbered |
|
|
|
- Number of
Shares |
7708207 |
7708207 |
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter group) |
100.00% |
100.00% |
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
56.68% |
56.68% |
|
|
Particulars |
3 Months ended
30.09.2012 |
|
B |
Investor
complaints |
|
|
|
Pending at the beginning of the quarter |
0 |
|
|
Received during the quarter |
6 |
|
|
Disposed of during the quarter |
6 |
|
|
Remaining unresolved at the end of the quarter |
0 |
SEGMENT – WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Particulars |
Quarter Ended |
Half Ended |
|
|
|
30.09.2012 Unaudited |
30.06.2012 Unaudited |
30.09.2012 Unaudited |
|
1. Segment Revenue |
|
|
|
|
a. Consumables |
678.653 |
664.845 |
1343.498 |
|
b. Equipments and Project Engineering |
185.190 |
178.810 |
364.000 |
|
Net Sales / Income from Operations |
863.843 |
843.655 |
1707.498 |
|
|
|
|
|
|
2. Segment Results |
|
|
|
|
a. Consumables |
64.072 |
76.435 |
140.507 |
|
b. Equipments and Project Engineering |
23.639 |
10.907 |
34.546 |
|
Total |
87.711 |
87.342 |
175.053 |
|
Less: Finance Costs |
1.920 |
1.445 |
3.365 |
|
Other Unallocable expenses net off Unallocable Income |
27.552 |
24.697 |
52.249 |
|
Total Profit Before Tax |
58.239 |
61.200 |
119.439 |
|
|
|
|
|
|
3. Capital Employed |
|
|
|
|
a. Consumables |
1046.026 |
1055.221 |
1046.026 |
|
b. Equipments and Project Engineering |
409.972 |
411.074 |
409.972 |
|
c. Unallocable Corporate Assets net of Unallocable Corporate
Liabilities |
381.425 |
329.816 |
381.425 |
|
Total Capital Employed |
1837.423 |
1796.111 |
1837.423 |
STANDALONE STATEMENT OF ASSETS AND
LIABILITIES
(Rs. in millions)
|
Particulars |
30.09.2012 |
|
A. EQUITY AND LIABILITIES |
Unaudited |
|
1.
Shareholders Funds |
|
|
(a) Share Capital |
135.985 |
|
(b) Reserves and Surplus |
1701.438 |
|
Total
Shareholders' Funds |
1837.423 |
|
|
|
|
(2) Share
application money pending allotment |
-- |
|
|
|
|
(3) Non-Current
Liabilities |
|
|
(a) Long-term borrowings |
6.557 |
|
(b) Deferred tax liabilities (Net) |
4.952 |
|
Total Non
Current Liabilities |
11.509 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Short-term borrowings |
-- |
|
(b) Trade payables |
304.058 |
|
(c) Other current liabilities |
155.372 |
|
(d) Short-term provisions |
70.896 |
|
Total Current Liabilities |
530.326 |
|
TOTAL - EQUITY
AND LIABILITIES |
2379.258 |
|
|
|
|
II.ASSETS |
|
|
(1) Non-current
assets |
|
|
(a) Fixed assets |
|
|
(i) Tangible assets |
793.701 |
|
(ii) Intangible assets |
2.321 |
|
(iii) Capital work-in-progress |
9.708 |
|
(b) Non-current investments |
23.374 |
|
(c) Long term loans and advances |
23.872 |
|
(d) Other non-current assets |
6.124 |
|
Total Non
Current Assets |
859.100 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
224.184 |
|
(b) Inventories |
571.670 |
|
(c) Trade receivables |
472.487 |
|
(d) Cash and Bank balances |
37.213 |
|
(e) Short-term loans and advances |
90.811
|
|
(f) Other current assets |
123.793 |
|
Total Current
Assets |
1520.158 |
|
TOTAL - ASSETS |
2379.258 |
2. The above
results have been reviewed by the Audit Committee and approved by the Board of
Directors at their meeting held on 25th October, 2012.
3. The Statutory Auditors
have carried out a limited review of the above financial results.
4. Previous Period figures have been regrouped wherever necessary.
CONTINGENT LIABILITIES NOT PROVIDED FOR
(Rs.
in millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
a)
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 |
|
b)
Disputed Excise duties as the matters are in appeal (advance paid Rs.0.315 Million; Previous year Rs.0.315
Million) |
11.378 |
10.339 |
|
c) On account of bills discounted by the Company |
99.998 |
Nil |
|
d)
Bonds / Undertakings given by the Company under Concessional duty / exemption
scheme to Customs Authorities. |
7.879 |
14.728 |
|
e) Other matters |
7.209 |
7.486 |
FIXED ASSETS
Ř
Land – Freehold
Ř
Land - Leasehold
Ř
Building
Ř
Plant and machinery
Ř
Electrical
Installations
Ř
Furniture and Fixtures
Ř
Office Equipments
Ř
Vehicles
Ř
Temporary Shed
Ř
Air Conditioners
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
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.
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
·
·
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
·
First export of our
production to Middle East,
·
New Electrode plant
commence production at Chennai- 1967
·
Welding Equipment plant at
Chinchwad, Pune commence production-1963
·
New Electrode plant at
·
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,
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 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. 54.34 |
|
|
1 |
Rs. 86.97 |
|
Euro |
1 |
Rs. 69.43 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
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 |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--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.