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Notes to Accounts of Ador Multiproducts Ltd.

Mar 31, 2015

1. Corporate information:

Ador Multiproducts Limited ( "the Company") is a public limited company domiciled in India and is listed on the Bombay Stock Exchange [BSE]. CIN is L85110KA1948PLC000545.

The Company is engaged primarily in the business of manufacturing of Personal Care Products and Trading in Welding equipments & consumables.

The Company's registered office is in Bengaluru and branches at Puducherry & Chennai.

2. Share capital:

The Company has a class of shares, referred to as equity shares, having a par value of Rs.10, per share. Each holder of equity shares is entitled to one vote per share.

The shareholders' right to dividend and other matters are governed by the Articles of Association of the Company and the Companies Act, 2013

In the event of liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

As informed by the company, the above share holding represent both legal and beneficial ownership of shares.

(i) As on the balance sheet date,

(a) The Company did not issue any equity shares as fully paid equity shares pursuant to contracts without payment being received in cash & and also

(b) The Company did not issue any fully paid bonus shares,

(ii) The Company also did not buy back any equity shares as on the balance sheet date.

3. Share warrants

During year the Company has issued 2,50,000 share warrants of Rs. 16.50 to promoters on a preferential basis.

(i) Issue/conversion of equity shares:

During the year, the Company had issued 1,24,500 equity shares of Rs. 10/- each at a premium of Rs. 6.50/- against warrants conversion allotted to promoters on a preferential basis. These shares are ranking pari-passu with the old equity shares of the Company.

(ii) 125500 share warrants of Rs. 16.50, each partly paid (Each warrant carry/option entitlement to one equity share of Rs.10/- each at premium of Rs. 6.50 convertible within eighteen months, on which 25% has been paid.

4. Operating Lease

a. The Company has executed lease agreements under operating leases, which are not non-cancellable and are renewable by mutual consent on mutually agreeable terms. Lease rental payments of Rs.4,57,180(Pr.Yr Rs. 4,97,370) made by the Company are recognized in the Statement of Profit & Loss.

5. Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006:

The Company is in the process of compiling relevant information relating to Micro, Small and Medium Enterprises (MSME). Since the relevant information is not available, no disclosures have been made in the financial statements. However, in the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provisions of MSMED Act, 2006, is not expected to be material.

6. Foreign Currency earnings and expenditure:

(i) Income in foreign currency:

The Company has not exported any goods and not earned any foreign currency income during the year

(ii) Expenditure in foreign currency:

The Company did not incurred any foreign currency expenditure during the year.

7. Related party transactions:

Disclosures as per Accounting Standard 18, transactions with the related party are given below:

Sl Name of the related party Relationship no.

1 J.B Advani and Company Private Limitd Associate Company

2 Ador Welding Limited Associate Company

3 Ador Powertron Limited Associate Company

4 Ador Fontech Limited Associate Company

Key management personnel :

1 Mr. Deep A Lalvani Chairman

2 Sriee. Aneetha M Company Secretary

8. During the year, the Company has adopted estimated useful life as stipulated in the schedule II to the Companies Act, 2013. Accordingly, depreciation of Rs. 5,28,861/- on account of assets whose useful life is already exhausted as on 01/04/2014 and deferred tax of Rs. 1,71,589/- thereon have been adjusted to General reserve.

9. Defind contribution scheme - Superannuation fund

The Company has contributed to superannuation fund year on year. Hence, no further liability accrues to the Company on this account. Cumulative defined benefit obligation of compensated absence (unfunded) amounts to 4,10,210/-

10. Contractual liabilities:

In the opinion of the Management, all other contractual liabilities connected with the business operations of the Company have been appropriately provided for.

11. Contingent liabilities and Commitments:

a) Guarantees given by the banks on behalf of the Company Rs. 3.20 lakhs (Pr. Yr Rs. 3.05 lakhs)

b) Uncalled liability on partly paid shares of South Zone Paper Distributors Limited : Rs. 800 (Pr.Yr Rs. 800)

12. Segment reporting:

a) Segment policies:

Revenues and identifiable operating expenses in relation to the segments are categorized based on items that are individually identifiable to that segment. In case where the management believes it is not practical to provide disclosure relating to some expenses, then these expenses are separately disclosed as 'unallocated' and adjusted against the total income of the Company.

b) Business segments:

For management reporting purpose, the Company is organized into two major operating segments-

i) Manufacturing of personal care products and job work thereon

ii) Trading of welding equipments and accessories

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments.

c) The accounting policies adopted for segment reporting are in line with the accounting policies adopted by the Company for the purpose of these financial statements

d) In the opinion of the Company, all revenues are from India and hence, it has only one geographical segment. Accordingly secondary segment is not applicable.

13. Figures in the financial statements are rounded off to the nearest rupee.

14. Previous year's figures have been recaust/restated.


Mar 31, 2014

1.01:Share capital:

The Company has a class of shares, referred to as equity shares, having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share.

The shareholders'' right to dividend and other matters are governed by the Articles of Association of the Company and the Companies Act, 1956

In the event of liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

As informed by the company, the above share holding represent both legal and beneficial ownership of shares.

(d) (i) As on the balance sheet date,

(a) The Company did not issue any equity shares as fully paid equity shares pursuant to contracts without payment being received in cash and also

(b) The Company did not issue any fully paid bonus shares,

(ii) The Company also did not buy back any equity shares as on the balance sheet date.

(e) Issue/conversion of equity shares:

As on the date of this Balance sheet, the Company has not issued any securities like Convertible Preference Shares, Convertible debentures, etc., which are convertible into equity /preference shares.

2.01 Deferred tax:

Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

2.2. Operating Lease

a. The Company has executed lease agreements under operating leases, which are not non-cancellable and are renewable by mutual consent on mutually agreeable terms. Lease rental payments of Rs.4,97,370 (Pr.Yr Rs.5,43,911) made by the Company are recognized in the Statement of Profit & Loss.

2.3. Contingent liabilities and Commitments:

a) Guarantees given by the banks on behalf of the Company Rs.3.05 lakhs (Pr. Yr Rs.3.05 lakhs)

b) Uncalled liability on partly paid shares of South Zone Paper Distributors Limited :Rs.800 (Pr.Yr Rs. 800)

2.4. Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006:

The Company is in the process of compiling relevant information relating to Micro, Small and Medium Enterprises (MSME). Since the relevant information is not available, no disclosures have been made in the financial statements. However, in the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provisions of MSMED Act, 2006, is not expected to be material.

2.5 Export earnings/payments:

(i) The Company has not exported any goods during the year nor earned any foreign income during the year ( Pr. Yr. Nil ) (ii) Expenditure in foreign currency earnings and payments

(a) The Company did not made any payments in Foreign Currency during the year.

2.6. Related party transactions: Disclosures as per Accounting Standard 18:

1. Names of related parties and description of relationship with the Company:

a) Associate Companies : J B Advani and Company Private Limitd, Ador Welding Limited,

Ador Powertron Limited and Ador Fontech Limited

b) Key managerial personnel : Mr. Deep A. Lalvani, Chairman, Ador Multiproducts Limited

2.7 A sum of Rs.32,21,625 was received from J B Advani and Company Private Limited, the promoter towards issue of 400,000 share warrants of the face value of Rs. 10, each, at a premium of Rs. 6/50, per share warrant, on preferential basis. Since necessary approvals was not received before the close of the year, the share warrants were not issued. The amount has been refunded after the balance sheet date.

2.8 Defind contribution scheme - Superannuation fund

The Company has contributed to superannuation fund year on year. Hence, no further liability accrues to the Company on this account. Cumulative defined benefit obligation of compensated absence (unfunded) amounts to Rs.3,80,400/-

2.9 In the opinion of the Management, all other contractual liabilities connected with the business operations of the Company have been appropriately provided for.

2.10. Segment reporting:

a) Segment policies:

Revenues and identifiable operating expenses in relation to the segments are categorized based on items that are individually identifiable to that segment. In case where the management believes it is not practical to provide disclosure relating to some expenses, then these expenses are separately disclosed as ''unallocated'' and adjusted against the total income of the Company.

b) Business segments:

For management reporting purpose, the Company is organized into two major operating segments- i) Manufacturing of personal care products and job work thereon

ii) Trading of welding equipments and accessories

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments.

c) The accounting policies adopted for segment reporting are in line with the accounting policies adopted by the Company for the purpose of these financial statements

d) In the opinion of the Company, all revenues are from India and hence, it has only one geographical segment. Accordingly secondary segment is not applicable.

2.11 Figures in the financial statements are rounded off to the nearest rupee.


Mar 31, 2013

1.1 Operating Lease:

a. The Company has executed lease agreements under operating leases, which are not non-cancellable and are renewable by mutual consent on mutually agreeable terms. Lease rental payments of Rs.5,74,800/- (Pr.Yr. Rs.4,93,950/-) made by the Company are recognized in the Statement of Profit and Loss.

b. Lease rental payables:

1.2 Contingent liabilities and commitments:

a) Guarantees given by the banks on behalf of the Company - Rs.3.05 lakhs (Pr.Yr Rs.0.95 lakhs)

b) Uncalled liability on partly paid shares of South Zone Paper Distributors Limited : Rs.800/- (Pr.Yr Rs.800/-)

1.3 Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006:

The Company is in the process of compiling relevant information relating to Micro, Small and Medium Enterprises (MSME). Since the relevant information is not available, no disclosures have been made in the financial statements. However, in the opinion of the management, the impact of interest, if any, that may be payable in accordance with the provisions of MSMED Act, 2006, is not expected to be material. .

1.4 Export earnings:

The Company has not exported any goods during the year nor earned any foreign income during the year (Pr. Yr. Rs. Nil)

1.5 Related party transactions : Disclosures as per Accounting Standard 18:

1. Names of related parties and description of relationship with the Company:

a. Associates Companies : J B Advani and Company Private Limited, Ador Welding Limited,

Ador Powertron Limited and Ador Fontech Limited

b. Key managerial personnel: Mr. Deep A. Lalvani, Chairman, Ador Multiproduct Limited

* figures in brackets represent previous year''s amount.

The above information is as certified by the Actuary,

b. Compensated absences

Cumulative defined benefit obligation of compensated absence (unfunded) amounts to 72,88,274/-.

1.6 Defined contribution scheme

The Company has contributed to superannuation fund year on year. Hence, no further liability accrues to the Company on this account.

1.7 All other contractual liabilities connected with the business operations of the Company have been appropriately provided for.

1.8 In the opinion of the Board and to the best of its knowledge and belief, the value on the realization of current assets, loans and advances, will in the ordinary course of its business, not be less than the amounts at which they are stated in the Balance Sheet.

1.9 Segment reporting:

a) Segment policies:

Revenues and identifiable operating expenses in relation to the segments are categorized based on items that are individually identifiable to that segment. In case where the management believes it is not practical to provide disclosure relating to some expenses, then these expenses are separately disclosed as ''unallocated'' and adjusted against the total income of the Company.

b) Business segments: .

For management reporting purpose, the Company is organized in to two major operating segments:

i) Manufacturing of personal care products and job work thereon.

ii) Trading of welding equipment and accessories.

The above segments have been identified taking in to account the organization''s structure as well as the differing risks and returns of these segments.

d) In the opinion of the Company all revenues are from India and hence, it has only one geographical segment. Accordingly secondary segment is not applicable.

1.10 Figures in the financial statements are rounded off to the nearest rupee.


Mar 31, 2012

Basis of preparation of the financial statements:

These financial statements are prepared under the historical cost basis of accounting and evaluated on a going concern basis, with revenues recognized and expenses accounted for on their accrual to comply in all material aspects with the applicable accounting principles, the applicable Accounting Standards notified u/s. 211 (3C) of the Companies Act, 1956, other relevant provisions of the Companies Act, 1956 and the guidelines issued by the Securities and Exchange Board of India (SEBI).

Use of estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported balances of assets on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Accounting estimates could change from period to period. Actual results could differ from these estimates. Appropriate changes in estimates are made as and when the Management becomes aware of changes in the circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which the changes are made and if material, their effects are disclosed in the notes to the financial statements. The following significant accounting policies adopted in the preparation and presentation of these financial statements are:

Note 1: Notes on financial statements:

The financial statements for the year ended March 31,2011 had been prepared as per the then applicable pre-revised Schedule VI of the Companies Act, 1956. Consequent to the notification of the revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31,2012 are prepared as per the Revised Schedule VI. Accordingly, the previous year figures have also been re-classified to conform to this year's classification. The adoption of the Revised VI for the previous year's figures does not impact recognition and measurement principles followed for the preparation of these financial statements.

1.1: Share capital:

The Company has a class of shares, referred to as equity shares, having a par value of 710, per share. Each holder of equity shares is entitled to one vote per share.

1.1 (d) (i) As on the balance sheet date,

(a) The Company did not issue any equity shares as fully paid equity shares pursuant to contracts without payment being received in cash & and also

(b) The Company did not issue any fully paid bonus shares,

(ii) The Company also did not buy back any equity shares as on the balance sheet date.

1.1 (e) Issue/conversion of equity shares:

As on the date of the Balance sheet of March 31,2012 the Company has not issued any securities like Convertible Preference Shares, Convertible debentures, etc., which are convertible into equity /preference shares. However, share warrants outstanding as at March 31, 2011 were converted to equity shares during the year.

1.1 (f) Every shareholder is entitled to one vote for each equity share held. The shareholders right to dividend and other matters are governed by the Articles of Association of the company and companies Act, 1956.

The Company does not have any outstanding diluted potential equity shares as at March 31, 2012.Consequently, the basic and diluted earnings per share of the Company remain the same as at March 31, 2012. The Company had outstanding potential equity shares as at March 31, 2011 and hence had basic and diluted earnings per share, as above, for FY 2010-11.

1.2 Operating Lease:

The Company has executed lease agreements under operating leases, which are not non-cancellable and are renewable by mutual consent on mutually agreeable terms. Lease rental payments of Rs493,950 (Pr.yr 7480,000) made by the Company are recognized in the Statement of Profit & Loss.

1.3. Contingent liabilities and Commitments:

a) Guarantees given by the banks on behalf of the Company - Rs 0.95 lakhs (Pr. Yr 7 0.95 lakhs)

b) Uncalled liability on partly paid shares of South Zone Paper Distributors Limited: Rs 800 (Pr. Yr Rs 800)

1.4. Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006:

The Company is in the process of compiling relevant information relating to Micro, Small and Medium Enterprises (MSME). Since the relevant information is not available, no disclosures have been made in the financial statements. However, in the opinion of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of MSMED Act, 2006, is not expected to be material.

1.5 Export earnings:

The Company has not exported any goods during the year nor earned any foreign income during the year [Pr. yr. Rs. Nil]

1.6. Related party transactions: Disclosures as per Accounting Standard 18:

Names of related parties and description of relationship with the Company:

A. Associates Companies: J B Advani & Company Private Limited, Ador Welding Limited,

Ador Fontech Limited and Ador Powertron Limited

B. Key managerial personnel: Mr. Deep A. Lalvani, Chairman, Ador Multiproduct Limited

C. Relative of key managerial personnel: Ms. Reshma A. Lalvani

1.7. Purchase of traded goods constitutes purchases of welding electrodes and accessories.

1.8. All other contractual liabilities connected with the business operations of the Company have been appropriately provided for.

1.9. In the opinion of the Board and to the best of its knowledge and belief, the value on the realization of current assets, loans and advances, will in the ordinary course of its business, not be less than the amounts at which they are stated in the balance sheet

1.10. Segment reporting:

a) Segment policies:

Revenues and identifiable operating expenses in relation to the segments are categorized based on items that are individually identifiable to that segment In cases where the management believes it is not practical to provide disclosure relating to some expenses, then these expenses are separately disclosed as 'unallocated' and adjusted against the total income of the Company.

b) Business segments:

For Management reporting purposes, the Company is organized into two major operating segments -

i) Manufacturing of persona) care products and job work thereon

ii) Trading of welding equipments and accessories

The above segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments.

c) The accounting policies adopted for segment reporting are in line with the accounting policies adopted by the Company for the purpose of these financial statements.


Mar 31, 2011

1. Micro, Small and Medium Enterprises Development Act, 2006:

Under the Micro, Small and Medium Enterprises Development Act, 2006, read with Notification no. 9/7/2006-CDN dt 17.05.2007, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Company is in the process of compiling relevant information in this regard. Since the relevant information is not available, no disclosures have been made in the accounts. However, in the view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of this Act is not expected to be material.

2. The Company has not exported any goods during the year nor earned any foreign income during the year.

3. Related party Disclosures:

a Holding companies : Nil

b. Subsidiary companies : Nil

c. Associate companies : J.B. Advani & Company Private Limited (JBA)

Ador Welding Limited ( AWL )

d. Key management personnel: Mr. Deep A. Lalvani

4. Leases:

The Company has entered into cancelable operating lease with an option to renew in respect of certain official premises. The expenditure incurred thereon is charged to Profit and loss account amounting to Rs. 4,80,000/- (Previous year Rs. 4,83,070/-)

5. Disclosure as per AS 15 - Revised

Defined Benefit Plans -

a. Gratuity is applicable to all permanent and full time employees of the Company. Gratuity paid out is based on the last drawn basic salary and dearness allowance at the time of termination or retirement. The Company recognizes actuarial gains and losses as and when the same arise. Based on actuarial valuation, the charge in respect of the same is taken to the Profit and loss account.

b. Contribution to Super Annuation Fund it is a defined contribution scheme and hence no further liability arise to the Company on this account.

c. Defined benefits obligations of compensated absence (unfunded) amount to Rs. 3,62,701/- as at March 31, 2011.

6. Contingent liabilities: (Rs. In lakhs)

As at 31.03.2011 As at 31.03.2010

a. Counter guarantees to banks for guarantees given by the Banks on behalf of the Company 0.95 0.95

b. Uncalled liability on partly paid up shares 0.01 0.01

c. Capital commitment 0.00 9.00

7. a. Loans and advances includes Rs. 8,82,635/- (Pr. Year Rs. 14,99,855) due from certain ex-employees of the Company on whom legal action has been initiated, which, in the opinion of management, are fully recoverable.

b. Sundry debtors includes Rs. 10,31,165/- representing dues from certain parties on whom legal action has been initiated, which in the opinion of the management are fully recoverable.

8. Previous years figures are re-grouped / re-classified, wherever necessary to confirm to the current years classification. Figures in brackets, shown in the account indicate negatives values.


Mar 31, 2010

1. Micro, Small and Medium Enterprises Development Act, 2006:

Under the Micro, Small and Medium Enterprises Development Act, 2006, read with Notification no. 9/7/2006-CDN dt 17.05.2007, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Company is in the process of compiling relevant information in this regard. Since the relevant information is not available, no disclosures have been made in the accounts. However, in the view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of this Act is not expected to be material.

2. The Company has not directly exported any goods during the year nor earned any foreign income during the year.

3. Related party Disclosures:

a. Enterprises over which key management personnel and their relatives exercise significant control. (i) Ador Welding Limited

(ii) Ador Fontech Limited (iii) Ador Powertron Limited

b. The following are the volume of transactions with related parties during the year and outstanding balances as at the year end disclosed in aggregate:

4. Leases:

The Company has entered into cancelable operating lease with an option to renew in respect of certain official premises. The expenditure incurred thereon is charged to Profit and loss account amounting to Rs. 4,83,070/- (Previous year Rs. 3,95,569/-)

5. Disclosure as per AS 15 - Revised

Defined Benefit Plans -

a. Gratuity is applicable to all permanent and full time employees of the Company. Gratuity paid out is based on the last drawn basic salary and dearness allowance at the time of termination or retirement. The Company recognizes actuarial gains and losses as and when the same arise. Based on actuarial valuation, the charge in respect of the same is taken to the Profit and loss account.

6. Contingent liabilities: (Rs. In lakhs)

As at 31.03.2010 As at 31.03.2009

1 a. Counter guarantees to banks for guarantees given by the

Banks on behalf of the Company 0.95 0.95

b. Uncalled liability on partly paid up shares 0.01 0.01

c. Capital commitment 9.00 0.00

7. a. Loans and advances includes Rs. 14,99,855/- (Pr. Year Rs. 14,99,855) due from certain ex-employees of the Company on whom legal action has been initiated, which, in the opinion of management, are fully recoverable.

b. Sundry debtors includes Rs. 10,31,166/- representing dues from certain parties on whom legal action has been initiated, which in the opinion of the management are fully recoverable.

8. Previous years figures are re-grouped / re-classified, wherever necessary to confirm to the current years classification. Figures in brackets, shown in the account indicate negatives values.

 
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