ADOR WELDING

1) AUDITORS –

The auditors for the financial year 2020-21 have been “Walker Chandiok & Co LLP” and they
have not changed from the previous year. They conduct the audit on Ador Welding every
quarter. The auditors seem to be promising and fair, this is the reason they haven’t changed
from last year moreover, this helps them in providing recommendations accurately.
According to the Auditors, the financial report(audited):-
i) Discloses financial results in accordance with Regulation 33 of the Listing
Regulations,
ii) Provides a true and fair view of the standalone net profit after tax and other
comprehensive income and other financial information in accordance with
the Accounting Standards (Section 133) of Companies Act, 2013, 

2) NON-CURRENT ASSETS –

Total investment in non-current assets as % of total assets include:-

 Equipment & automation
 Process Equipment Division
 Corporate assets
The above classified assets amount to Rs. 170.73 crores
Total assets amount to Rs. 392.73 crores
Therefore, we calculate the non-current assets as % of total assets:-
170.73 * 100 = 43.472%
392.73

The tangible assets amount to Rs. 108.74 crores for the year ended March 2022.
The intangible assets amount to Rs. 65 lakhs for the year ended March 2022.
From the financial report, we see that:-
 The investment in tangible assets has increased to 108.74 (FY 2021-22) from 107.78
(FY 2020-21)
 The Intangible assets have decreased to 65 lakhs (FY 2021-22) from 75 lakhs (FY
2020-21)
 Capital work-in-progress has been increased significantly to 7.06 crores (FY 2021-22)
from 3.27 crores (FY 2020-21)
 Because of the financial year 2021 being under the influence of Covid-19, the
company incurred huge losses because of no new significant increase in the
infrastructure globally and the large percentage of fixed costs year on year.
From the balance sheet, it can be derived because of the revival phase from Covid, the
company decided to increase its investment in working capital and also tangible assets so as
to increase production, this has led to a significant increase in the profits from FY 2021 to FY
2022.
Depreciation and Amortisation expenses amounted to Rs. 11.10 crores during FY 2021 and
Rs. 10.83 crores during FY 2022.
The depreciation as % of total revenues is :-
10.83_ * 100 = 1.623%
666.89
Total Revenue = Rs. 666.89 crores (FY 2021-22)
Total fixed assets = Rs. 123.78 crores (FY 2021-22)
Therefore, revenue per rupee of fixed assets = 666.89 = 5.388
 123.78
(For every 1 rupee of fixed asset, there was Rs. 5.388 of revenue generated)

Total assets for FY 2021-22 = Rs. 392.73 crores

Earnings before interest and tax = Rs. 58.23 crores
Return on total assets = Net income = 58.23 = 0.148
Total Assets 392.73
Return on fixed assets = Net income = 58.23 = 0.47
Fixed Assets. 123.78
Additional Fixed assets = Rs. (123.78 - 119.69) crores = Rs. 4.09 crores
Last year’s total revenue = Rs. 454.59 crores
Therefore, % of last year’s total revenue invested in additional fixed assets
= 4.09 * 100 = 0.89%
454.59

3) REVENUES & INCOME –

The major sources of revenues are from operations which include sales from various product
segments, for example :-
 Welding Electrodes
i) C-Mn Steels
ii) Hard facing
iii) Low alloy steel
iv) Stainless steel
v) Cast iron
vi) Mild steel general purpose
 Wires and Fluxes
i) Gas-metal Arc welding
ii) Flux-cored Arc welding
iii) Metal-cored arc welding
 Brazing products
i) Brazing rods
ii) Brazing fluxes
iii) Coated brazing rods
 MMA equipment
 TIG equipment
 MIG equipment
 Advanced multipurpose Synergic Equipment
 CNC cutting machines
 Gas cutting products

The revenues included revenue from operations (contracts from customers) and sale of
consumables for FY 2021-22 and amounted to Rs. 657 crores.
The total revenue decreased from Rs. 535.90 crores (FY 2019-20) to Rs. 454.59 crores (FY
2020-21) due to the covid outbreak. But it somehow managed to partially revive with
revenues rising to Rs. 666.89 crores (FY 2021-22).
 Growth from FY 2019-20 to FY 2020-21 = -81.31 * 100 = -17.89%
454.59

Growth from FY 2020-21 to FY 2021-22 = 130.99 * 100 = 24.44%

535.90

When a business fulfils a performance obligation by transferring a promised good or service

to the customer at a price that reflects the consideration to which the company expects to
be entitled in return for those goods or services, revenue from contracts with customers is
recognised. The amounts disclosed as revenue include excise tax and are net of returns,
trade allowances, rebates, and discounts as well as applicable value added taxes, goods and
services taxes, and other taxes that are gathered on behalf of the government or on behalf
of third parties.

4) Corporate Social Responsibility (CSR) –

Out of its budgeted yearly CSR spending of Rs. 47.36 Lakhs, the Company spent Rs. 6.17
Lakhs under its "Corporate Social Responsibility" (CSR) programme, while Rs. 10.50 Lakhs
were parked in the Unspent Corporate Social Responsibility Account (UCSR) for a "Ongoing
Project."

The following areas were covered by the company's different projects and initiatives:
1.Encouraging employment-enhancing vocational skills, including skill development and
encouraging safety practises in welding & related industries for economically
disadvantaged / financially poorer parts of the Society's children, women, elderly, and
differently abled
2. Promoting chances for women's personal and professional growth
3. Promoting access to safe drinking water for the impoverished and those without access to
these things.

A set of criteria for a company's conduct known as environmental, social, and governance
(ESG) investing is used by socially responsible investors to evaluate possible investments.

Environmental criteria takes into account a company's environmental protection efforts,

such as corporate climate change policies. The management of relationships with customers,
suppliers, employees, and the communities in which it operates is examined under the social
criteria. Leadership, executive compensation, audits, internal controls, and shareholder
rights are all topics covered by governance.