BOARD of DIRECTORS We Care for the Well-Being of All Our Stakeholders and We Are Ethical & Responsible in Our Approach Towards Business

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BOARD of DIRECTORS We Care for the Well-Being of All Our Stakeholders and We Are Ethical & Responsible in Our Approach Towards Business Make in India with ADOR WELDING LIMITED 65th Annual Report 2017-18 Utah REGISTERED & CORPORATE OFFICE CONSUMABLES MUMBAI RAIPUR PLANT SILVASSA PLANT Ador House, 6, K. Dubash Marg, Industrial Estate, Bilaspur Road, Survey No. 59 / 11 / 1, Fort, Mumbai 400 001-16, Raipur 493 221, Khanvel Road, Masat, Silvassa 396 230, Maharashtra, India. Chhasgarh, India. U.T. of Dadra & Nagar Haveli, India. Tel: +91 22 6623 9300 / 2284 2525 Tel: +91 771 6452 201 Tel: +91 704 6097 910 / 11 / 12 Fax: +91 22 2287 3083 Fax: +91 771 6542 201 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] [email protected] Abu Dhabi CONSUMABLES EQUIPMENT & PROJECT ENGINEERING CHENNAI PLANT AHMEDNAGAR PLANT CHINCHWAD PLANT Vandalur, Kelampakkam Road Plot B-5, MIDC Industrial Area, Survey No. 147/2B, Akurdi, Melakoaiyur, Nagar Manmad Road, Near Khandoba Mandir, Chinchwad, Chennai 600 127, Ahmednagar – 414 111 Pune 411 019, Maharashtra, India. Tamil Nadu, India. Maharashtra, India. Tel: +91 20 4070 6000 Tel: +91 44 2747 7116 Tel: +91 241 777 350 Fax: +91 20 4070 6001 E-mail: [email protected] E-mail: [email protected] To achieve high level of coustomer over satisfaction by INR 600 Cr providing innovative, Reliable and Quality Products & Services in a Prompt, Safe and Cost-effective manner & CORPORATE INFORMATION CORPORATE Annual Report 2017-18| 1 CONSOLIDATED FINANCIALS STANDALONE FINANCIALS STATUTORY REPORT CORPORATE PROFILE BOARD OF DIRECTORS We care for the well-being of all our stakeholders and we are ethical & responsible in our approach towards business. MS. ARUNA B. ADVANI Executive Chairman Participated in “Kellogg's Global advance Management program” organized by ISB and Kellogg's school of Management, Chicago. Managing Director Recently awarded “CEO with HR Orientation” award by Global HR MRS. N. MALKANI NAGPAL Whole–Time Director Ador Group's parent Company, M/s. J. B. Director (Non-Executive) Pvt. Limited, based in Chennai Presently he is part of the leadership team of M/s. Ador Powertron Pvt. Ltd. and Mack Valves 2 | ADOR WELDING LIMITED - General Counsel, and with O’Melveny & Meyers LLP (an General Counsel,andwithO’Melveny &MeyersLLP Annual Report 2017-18| 3 CONSOLIDATED FINANCIALS STANDALONE FINANCIALS STATUTORY REPORT CORPORATE PROFILE . the Group’s travel related business, Mercury Travels Ltd. BA (Hons) Economics from St Stephen’s College, Delhi 4 | ADOR WELDING LIMITED of the world’s leadingcommunicationsagencies. of theworld’s realizes that in today’s digitalworld,bigideasneedgreat realizes thatintoday’s Annual Report 2017-18| 5 CONSOLIDATED FINANCIALS STANDALONE FINANCIALS STATUTORY REPORT CORPORATE PROFILE MANAGING DIRECTOR’S REVIEW Dear Shareholders, It gives me immense pleasure to report that the Company has performed well, again in FY 2017-18, especially in welding business, which is good news. The Company's total net operating revenue of Rs. 458 Crore is the highest in the history of the Company. Our mantra for growth continues to be “customer focus” & “move fast, break barriers”. Culture of Innovation is now a part of our DNA and is imbibed at all levels across the Company. This enables us to offer customized solutions which ultimately result into “higher customer satisfaction index”. During FY 2017-18, we launched new products in welding and cutting segment & also in WAPS and Project Engineering Business to meet with customer requirements. FY 2017-18 PERFORMANCE During FY 2017-18, our net operating revenue grew by around 4% with EBITDA and PAT margins of around 9.5% and around 4% respectively. The good news is our EBITDA has gone up by around Rs. 4.2 Crore in FY 2017- 18 compared to FY 2016-17. We delivered higher volumes in consumables and equipment which further strengthened our industrial leadership. Automation business performed exceptionally well owing primarily due to the launch of new products during the year. During the previous year, for the first time, we ventured into an EPC project outside India, in Kuwait, related to Oil & Gas industry, which will be completed by August 2018. RESEARCH & DEVELOPMENT Our DSIR approved R&D Centre works closely with customers' to deliver custom made solutions. This makes us invulnerable to competition and aids in improving customer relations. We will be offering 3 (three) years warranty on our select range of equipment during the year. This speaks volume of our ability to offer indigenously developed products and solutions of consistent & reliable quality to our customers. Our consumable R&D setup has received NABL accreditation. This will benefit self-certification in product testing area and will enable us to reach new products to the market, faster. During the year, we developed products with greater performance / productivity in automobile, infrastructure and other relevant industries. These initiatives have enhanced our market share in varied segments. ADOR WELDING ACADEMY Ador Welding Academy is known for its skill development service to the Nation through Welding over the last few years. This year, we have trained 529 people on various welding practices mostly from Below Poverty Line (BPL) / Under Privileged youth and offered them employment opportunities. Many small and medium companies including few individuals participated with us in this mission by supporting Academy with their CSR contribution. The academy is envisioned to be an independent talent hub under the guidance of seasoned Adorians. We, further, have a vision to make the Academy financially independent and a sustainable model for service. 6 | ADOR WELDING LIMITED ADOR VISION We continue to aim to become “best-in-class” enterprise known for continuous innovation in products & solutions with significant growth by FY 2019-20, notwithstanding the economic or market scenario. We will focus on sustaining the initiatives taken over the past few years, in addition to the following: • We firmly believe “Happy Adorian can create Happy Customer” • Capitalize on our customer relations, as well as on technical and manufacturing capabilities • Build Synergies with our current capabilities and resources in order to offer new products across domestic and export markets • Create value through forward as well as backward integration • Imbibe innovation culture & implement advance lean manufacturing process to maximize efficiency and offer zero Defect with zero effect on environment and zero wastage CORPORATE PROFILE CORPORATE • We continuously explore learning and growth opportunities for Adorians, empower them so that “best-in-class” service and quality products are offered to customers. • Emphasize on the brand “Ador Welding” assurance. • Strengthen IT for implementing digitization across processes and systems REPORT Y CLOSING THOUGHTS Enhanced levels of Corporate Governance and ethical standards have TUTOR been maintained across our organization. We have ensured a safe, STA healthy and secured working environment for our esteemed “Culture of employees and have imbibed this culture through regular trainings & interventions. Our strive towards Corporate Social Responsibility (CSR) endures in the sectors of providing education, vocational Innovation training, drinking and clean water facilities, hygiene and development of the society at large, mostly around our factory premises. I express is now a my sincere gratitude towards our valued customers & comprehensive FINANCIALSSTANDALONE vendors for their constant trust in us, as this continues to be the part of our primary cornerstone of our operations. Our diversified expertise, products and, in particular, services are the wheel, whose DNA and is characteristics we will keep improving in the direction indicated by our customers. I truly appreciate our Board of Directors and the Management Team for their persistent direction and commitment. imbibed at Lastly, I express thanks and applaud all our talented 'Adorians' for contributing enormously to the organizational progress and attaining FINANCIALS CONSOLIDATED all levels success , every year , in transforming the Company's vision into reality. We look forward to your endless support and anticipate your across the vital involvement in the Company's journey towards achieving its long term objectives. Company” Best Wishes, Satish M. Bhat Managing Director Annual Report 2017-18 | 7 Five Year Financial Performance (Standalone) Turnover (Rs. in Lakhs) Profit Before Tax (PBT) (Rs. in Lakhs) 50,000 45,083 46,745 4,000 45,000 41,239 3,378 39,225 3,500 40,000 36,779 37,341 2,850 2,825 35,000 3,000 2,665 2,720 30,000 2,500 2,016 25,000 2,000 20,000 1,500 15,000 1,000 10,000 5,000 500 0 0 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Market Capitaliza on (Rs. in Lakhs) Net Worth (Rs. in Lakhs) 60000 30,000 50,959 24,771 50000 25,000 23,740 41,976 21,848 20,401 39,005 40000 20,000 18,463 18,090 29,458 30000 15,000 20,164 20000 15,293 10,000 10000 5,000 0 0 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Book Value Per share (BVPS) (Rs.) Earning Per Share (EPS) (Rs.) 200.00 182.14 25 23.80 174.56 180.00 160.65 160.00 150.01 20 135.76 140.00 133.01 16.65 120.00 15 14.03 13.32 13.65 100.00 80.00 10 60.00 40.00 5 3.11 20.00 0.00 0 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 8 | ADOR WELDING LIMITED Five Year Financial Highlights (Standalone) (Rupees in lakhs) FY 2017-18 FY 2016-17$ FY 2015-16 FY 2014-15 FY 2013-14 FY 2012-13 PROFIT & LOSS ACCOUNT Sales & Other Income (net of excise duty) 46,745 45,083 41,239 39,225 37,341 36,779 Manufacturing & Other Expenses 42,382 41,137 36,609 35,928 33,146 32,799 Operating Profit / EBITDA 4,363 3,946 4,630 3,297 4,195 3,980 Depreciation 1,008 1,122 1,166 1,243 1,203 1,234 EBIT 3,355 2,824 3,464 2,054 2,992 2,746 Interest 530 104 86 38 142 81 Profit before Tax (PBT) 2,825 2,720 3,378 2,016 2,850 2,665 Exceptional Items (Net) - - (195) 2,811 (1,478) - Taxation 969 908 918 1,590 949 757 Profit after Tax (PAT) 1,856 1,812 2,265 3,237 423 1,908 Comprehensive Income / Loss (7) 3 - - - - Total Comprehensive Income / (Loss) 1,849 1,815 - - - - Dividend (incl.
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