Esab India Ltd. — Annual Report 2019

May 9, 2019

9 May 2019

ESAB/BSE/2019

Bombay Stock Exchange Limited P J Towers Dalal Street Mumbai 400 023.

Scrip Code: 500133

Dear Sir,

Sub : Submission of Audited Financial Results and other decisions of the Board

Audited Resu Its

This is to inform you that in terms of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audited Results for the year ended 31 March, 2019 have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 9 May, 2019. The meeting of the Board of Directors commenced at 14:30 hours and concluded at 17:40 hours.

We are sending herewith the textual matter of Audited Financial Results for the year ended 31 March 2019, which is scheduled for publication in (i) Business Standard- in English and (ii) Makkal Kural - in Tamil. The Audit Report issued by M/s. S R Batliboi & Associates, LLP, Chennai, the Statutory Auditors with respect to the audited financial results and declaration for audit report with unmodified opinion are enclosed. The results would also be uploaded in the Company's website www.esabindia.com.

Dividend

The Board of Directors of the Company after careful consideration of the financial results for the year ended 31 March, 2019 and taking into account the interim dividend already declared for this financial year, has not recommended any further final dividend for the Financial year ended 31 March, 2019.

Annual General Meeting

The Thirty Second Annual General Meeting of the Members of the Company is scheduled to be held on Tuesday the 13 August, 2019 at 10.00 a.m. at P Obul Reddy Hall, Vani Mahal, 103, G N Road, T.Nagar, Chennai 600 017

Company : ESAB INDIA LIMITED Plot No.13, 3rd Main Road, Industrial Estate, Ambattur, Chennai - 600 058

Telephone : 91 -(0)44- 42281100 Fax: 91-(0)44- 42281150 Website: www.esabindia.com CIN: L29299TN1987PLC058738 Registered Office : ESAB INDIA LIMITED Plot No.13, 3rd Main Road, Industrial Estate, Ambattur, Chennai - 600 058

Book Closure dates

The Board of Directors approved the book closure dates from 7 August, 2019 to 13 August, 2019 (both days inclusive)

SecurityCode	Type ofSecurity	Book Closure dates		Purpose
500133	Equity	From7 August, 2019	To13 August,2019	Annual GeneralMeeting of theCompany
		Both d~s inclusive

Kindly bring this to the attention of the members and investors.

Thanking you,

Yours truly, For ESAB India Limited

~

Company S. Venkatakrishnan Secretary

Company : ESAB INDIA LIMITED Plot No.13, 3rd Main Road, Industrial Estate, Ambattur, Chennai - 600 058

Telephone: 91 -(0)44 - 42281100 Fax :

Website: www.esabindia.com 91-(0)44 - 42281150CIN : L29299TN1987PLC058738 Plot No.13, 3rd Main Road.

Registered Office : ESAB INDIA LIMITED Industrial Estate, Ambattur, Chennal - 600 058

9 May 2019

ESAB/BSE/2019

Bombay Stock Exchange Limited P J Towers Dalal Street Mumbai 400 023.

Scrip Code: 500133

Dear Sir,

Sub : Declaration with respect to the Audit Report with unmodified opinion to the Audited Financial Results for the financial year ended 31 March, 2019

Pursuant to the regulation 33(3)(d) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended by the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2016 vide notification number SEBl/LAD-NRO/GN/2016-17/001 dated May 25, 2016 and Circular no. CIR/CFD/CMD/56/2016 dated May 27, 2016, we declare that the Statutory Auditors M/s. S R Batliboi and Associates, LLP, Chennai (Firm registration No. 101049W/ E 300004) have issued an audit report with unmodified opinion with respect to the Audited Financial Results for the financial year ending 31 March, 2019.

Kindly bring this to the attention of the members and investors.

Thanking you,

Yours truly, For ESAB India Limited

S. Venkatakrishnan B Mohan Company Secretary Vice President - Finance and Chief Financial Officer

Company : ESAB INDIA LIMITED Plot No.13, 3rd Main Road, Industrial Estate, Ambattur, Chennai - 600 058

Telephone: 91 -(0)44 - 42281100 Fax : 91 -(0)44 - 42281150 Website : www.esabindia.com CIN: l29299TN1987PLC058738 Registered Office : ESAB INDIA LIMITED Plot No.13, 3rd Main Road. Industrial Estate, Ambattur, Chennai - 600 058

ESAB L'IDIA LIMlTED CIN No. L29299TN1987PLC058738 Regd Oflice: Plot No. 13, 3rd Main Road,

Industrial Estate, Ambattur, Chermai - 600 058 Telephone No. 044-42281100 email id : investor.relations@esab.co.in

Extract of Statement of Audited Financial Results for the quarter and year ended March 31,2019

				Quarter ended Quarter ended Quarter ended	Rs. in Lakhs (Except EPS)Year ended
SlNo	Particulars	March 31,2019	December 31,2018	March 31,2018	March 31,2019	March31,2018
		Audited	Unaudited	Audited	Audited	Audited
	1 Total income from operations	18,278	15,829	15,750	68,835	55,558
2	Net Profit for the period (before Tax, Exceptional and I orExtraordinary items)	2,350	1,655	1,221	8,482	5,452
3	Net Profit for the period before Tax (after Exceptional and Ior Extraordinary items)	2,350	1,655	1,147	8,414	5,264
	4 Net Profit for the period after Tax (after Exceptional and I orExtraordinary items)	1,636	1,155	919	5,759	3,715
	Total Comprehensive income for the period [Comprising5 Prolit for the period (after tax) and Other Comprehensive1ncome (after tax)]	1,567	1,165	1,033	5,721	3,756
	6 Equity Share Capital	1,539	1,539	1,539	1,539	1,539
7	Earning Per Share (ofRs 10/each) (for continuing anddiscontinued operations)
	- Basic	10.63	7.50	5.97	37.41	24.13
	• Diluted	10.63	7.50	5.97	37.41	24.13

Note:

The above is an extract of the detailed Statement of Audited Financial Results for the year and quarter ended March 3 1, 2019 filed with tbe Stock Exchanges under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The same would be available on the Company's website www.esabindia.com and on the website of the Stock Exchanges- BSE Limited and National Stock Exchange of India Limited.

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Your Partner in Welding & Cutting - Visit our website : http://www.esabindia.com L(l'\DI~

ESAB INDIA LIMITED CIN No. L29299TNI987PLC058738

Regd Office: Plot No. 13, 3rd Main Road,

Industrial Estate, Ambattur, Chennai • 600 058

Telephone No. 044-42281100 email id : investor.re1ations@esab.co.in

Statement of Audited Financial Results for the quarter and year ended March 31,2019

		Quarter ended Quarter ended Quarter ended			Rs. in Lakhs (Except EPS)Year ended March 31
Particulars	March 31,2019	December 31,2018	Marcb 31,2018	March 31,2019	.March 31,2018
	Audited	Unaudited	Audited	Audited	Audited
Revenue from contract with customers	18,090	15,245	15,315	67,163	54,267
Other income	188	584	435	1,672	1,291
Total Income from operations	18,278	15,829	15,750	68,835	55,558
Expenses
Cost of raw materials and components consumed	9,897	9,005	9,565	35,958	29,028
Cost oftraded goods sold	1,558	1,389	1.196	7,084	6,451
(Increase)/ decrease in inventories of work-in-progress and	86	(423 )	(66 1)	78	(57 1)
finished goods
Employee benefits expenseDepreciation and amortisation expense	1,944268	1,666272	1,9!3248	7,0041,070	5,9151,009
Other expenses	2,175	2,265	2 268	9,159	8,274
Total Expenses	15,928	14,174	14,529	60,353	50,106
Profit before Exceptional items	2,350	1,655	1,221	8,482	5,452
Less: Exceptional Items (refer note 3)		-	74	68	188
Profit after Exceptional items before tax	2,350	1,655	1,147	8,414	5,264
Tax expense
• Current tax	767	437	234	2,586	1,494
-Adjustment of tax relating to earlier years	24			24
-Deferred tax· expense I (credit)	(77)	63	(6\	45	55
	7 14	500	228	2,655	1,549
Profit for the period	1,636	1,155	919	5,759	3,715
Other comprehensive income/( expense)- net of tax	(69)	10	114	(38)	41
Total comprehensive income	1,567	1,165	1,033	5,721	3,756
Earnings per equity share (EPS)
Basic and Diluted (in rupee)	10.63	7.50	5.97	37.41	24.13
Weighted average number of shares (Nos.)Par value of equity share (in rupee)I	15,393,02010	15,393,02010	15,393,02010	15,393,02010	15,393,02010

ESAB INDIA LIMITED CIN No. L29299TNI987PLC058738 Regd Office: Plot No. 13, 3rd Main Road, Industrial Estate, Ambattur, Cheonai- 600 058 Telephone No. 044-42281 !00 email id : investor.re1ations@csab.co. in

Statement of Audited Financial Results for the quarter and year ended March 31,2019

Statement of Assets and Liabilities

		Rs. in Lakhs (Except EPS)
	As at	As at
	March 31,	March 31,
	2019	2018
Assets
Non-current assets
Property, plant and equipment	8,118	7.697
Capital work in progress	3 14	759
Intangible assets	194	271
Financial assets
(i) Other financial assets	513	283
Deferred tax assets (net)	141	166
Other assets	326	131
	9,606	9,307
Cu rrcnt assets
Inventories	6,815	7,273
Financial assets
(i) Investments	3,026	12,457
(ii) Loans	3,850	4,000
(iii) Trade receivables	6,362	5,898
(iv) Cash and cash equivalents	4,307	3,713
(v) Bank balances other than (iv) above	1,308	2,679
(vi) Other financial assets	228	284
Other assets	1,674	1,643
Current tax assets (net)	491	587
	28 061	38,534
Asset held for sale	209	196
Total assets	37 876	48 037
Equity and liabilities
Equity
Equity share capital	1,539	1,539
Other equity	25, 120	36,287
Total equity	26,659	37,826
Non-current liabilities
Long term provisions	362	288
	362	288
Current liabilities
Financial liabilities
Trade payables
(A) total outstanding dues of micro enterprises and small enterprises; and	1,314	-
(B) total outstanding dues of creditors other than micro enterprises and small enterprises	7,129	7,447
Other fmancial liabilities	213	166
Short term provisions	929	823
Liabilities for Current tax (net)	131	-
Other current liabilities	1,139	1,487
	10,855	9,923
Total liabilities	' 11,217	10,211
Total equity and liabilities	R 37 876	48 037
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ESAB INDIA LIMITED CIN No. L29299TN1987PLC058738

Notes:

l. The above audited financial results for the quarter and year ended March 31, 20 19 were reviewed by the Audit Committee and approved by dte Board of Directors at their meeting held on May 09, 2019.

1. lnd AS 115 Revenue from contracts with customers, is mandatory for reporting periods begitming on or after April I, 2018, and replaces existing revenue recognition requirements. Under the modified retrospective approach, there were no significant adjustments required to the retained earnings at 1st April 20 18. Also, the application ofiND AS 115 did not have any significant impact on recognition and measurements of revenue and related items in the financial results.

2. TI1e Company undertook a restructuring exercise during the previous years at Taratala involving optimizing its capacities, which had resulted in impainnent of property, plant and equipment. Such amounts have been disclosed as Exceptional items.

3. Based on a detailed evaluation of key financial parameters reviewed, the Company believes that it operates in only one segment i.e. Fabrication Technology artd bas been reporting the financial statements of the Company in a single reportable segment from the quarter ended June 30, 2018. Consequently, prior period comparatives have been modified to conform to current period's presentation.

4. The Board of Directors on November 23, 2018 approved an interim Dividend of Rs.90/- per equity share of Rs.lO/- each on a total equity capital o Rs.l ,539 lakhs be paid to the equity shareholders of the Company whose name appear as on the record date December 4, 2018 and such interim dividend entailed a total outflow ofRs.l6,701lakhs- inclusive of dividend distribution tax ofRs.2,848lakbs.

5. Previous period's figures have been regrouped or reclassified wherever necessary.

6. Tbe results would be uploaded and available for viewing on the Company's website www.esabindia.com and on the website of the Stock Exchanges-BSE Limited and National Stock Exchange ofindia Limited.

Chennai May 9, 2019

Your Partner in Welding & Cutting Visit our website : h ://www.esabindia.com

F"' ESA!'t,[J;,m;ted

Lp 6th Floor "A" Block S.R. BATL/80/ & ASSOCIATES L Tidel Park. No.4

Rajiv Gandhi Sala1 Chartered Accountants Taramani, Chennai 600 1 13 , India Tel t91 44 6 1179000

Auditor's Report on Quarterly Financial Results and Year to Date Results of ESAB India Limited Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To Board of Directors of ESAB India Limited

• 1. We have audited the accompanying statement of quarterly lnd AS financial results of ESAB India Limited ('the Company') for the quarter ended March 3 I, 2019 and for the year ended March 31 , 20 19 ('the Statement'), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('the Regulation'), read with SEBI Circular No. CIR/CFD/FAC/62/20 16 dated July 5, 2016 ('the Circular'). The Ind AS fmancial results for the quarter ended March 31 , 2019 and year ended March 31, 20 19 have been prepared on the basis of the Ind AS financial results for the nine-month period ended December 31, 2018, the audited annual Ind AS financial statements as at and for the year ended March 31, 2019, and the relevant requirements of the Regulation and the Circular, which are the responsibility of the Company's management and have been approved by the Board of Directors of the Company. Our responsibility is to express an opinion on these financial results based on our audit of the Ind AS financial results for the nine-month period ended December 31, 2018 which was prepared in accordance with the recognition and measurement principles laid down in. Indian Accounting Standard (rnd AS) 34 Interim Financial Reporting, specified under Section 133 of the Companies Act 20 I3 read with relevant rules issued thereunder and other accounting principles generally accepted in India; our audit of the annual Ind AS financial statements as at and for the year ended March 31, 2019; and the relevant requirements of the Regulation and the Circular.
• 1. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial results are free of material misstatement(s). An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion.
• 1. In our opinion and to the best of our information and according to the explanations given to us, these quarterly Ind AS financial results as well as the year to date results:
  • i. are presented in accordance with the requirements of the Regulation read with the Circular, in this regard; and
  • ii. give a true and fair view of the net profit including other comprehensive income and other financial information for the quarter ended March 3 1, 20 19 and for the year ended March 3 I, 2019.
• 1. Further, read with paragraph 1 above, we report that the figures for the quarter ended March 3 I, 20 19 represent the derived figures between the audited figures in respect of the fmancial year ended March 31, 2019 and the published year-to-date figures up to December 3 I, 20 18, being the date of the end of the third quarter of the current fmancial year, as required under the Regulation and the Circular.

For S.R BATLIBOI & ASSOCIATES LLP Chartered Accountants ICAI Firm Registration Number: 101049W/E300004

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per S Balasubra Partner Membership No.: 0 Place: Chennai Date: May 09, 2019