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Excellence in Engineering.
It is an art; it is a science
It requires skill; it requires vision
It needs flair; it needs innovation
It involves execution .
. With perfection
We are WELSPUN
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FINANCIAL HIGHLIGHTS (Consolidated)
@@:For FY11and FY12,Other Income,a partof ReportedEBITDAincludes InterestIncome forthe respectiveyears.
# FY 09: Figures are excluding the extraordinary item :Forex provision of Rs. 1,256 million, Provision on ECB of Rs. 178 million and Inventory
writedownofRs. 385million during FY2008 09.
@ FY 10:Forex Provisoningmade inthe previousyear wererecoveredduringthe year.
##FY 2010 11:Includesexport rebateof Rs.734 million onreceipt of favourable judgementfromHonorable Supreme Court andprovision of
Rs.2,007 millionon accountof settlementwithone ofthe customerstherebyendinglongpendinglitigation.
###FY 2011 12: Includes OtherIncomeof Rs. 2,676millionwhich includesinterestincome of Rs. 1,339million. Operational Performance was
impacted by foreign exchange provisions of Rs. 1,248 million, and Rs. 269 million in other expenses & finance costs, and provisions madetowardsamicable settlementwitha customerof Rs.649 million.
* Networth includesCCDs of Rs.7,884 million.
-
2,000
4,000
6,000
8,000
3,408
2,135
6,104
2007-08 2008-09 2009-10 2010-11
6,330
PAT (Rs. Mn)
2011-12
2,385
0.0%
5.0%
10.0%
15.0%
20.0%
EBITDA Margin (%)
16.6%
2007-08
11.3%
2008-09
18.1%
2009-10
16.9%
2010-11
12.2%
2011-12
Fixed Assets (Gross Block- Rs. Mn)
29,213
2007-08
40,682
2008-09
44,248
2009-10 2010-11
58,339*
2011-12
86,957*
-
25,000
50,000
75,000
100,000
25,000
45,000
65,000
Exports/Overseas Revenue (Rs. Mn)
5,000
32,750
41,515
52,603 52,860
2007-08 2008-09 2009-10 2010-11
46,139
2011-12
11.0
21.0
31.0
41.0
Basic EPS (Rs. / Share)
20.9
11.5
31.7 30.9
2 00 7- 08 2 00 8- 09 2 00 9- 10 2 01 0- 11
1.0
10.9
2011-12
2007-08
40,05257,582
73,82281,360
2008-09 2009-10 2010-11
Total Income (Rs. Mn)
92,442
2011-12
5,000
105,000
55,000
1,000
10,000
20,000
30,000
Networth (Rs. Mn)
15,672
2007-08
15,597
2008-09
29,011
2009-10
33,735
2010-11
49,139*
2011-12
40,000
50,000
500
2,5004,500
6,5008,500
10,50012,500
14,500
6,662
2 00 7- 08 2 00 8- 09 2 00 9- 10 2 01 0- 11
6,535#
13,372@
13,784##
2011-12
11,247###
Reported EBITDA (Rs. Mn)@@
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Corporate Information .......................... 2
Chairmans Statement .......................... 6
Directors Report .......................... 10
Corporate Governance Report .......................... 18
Management Discussion and Analysis .......................... 31
Catalysing Change (CSR) .......................... 70
Financial Section .......................... 73
C rp Ltd
CONTENTS
Excellence in Engineering has been the driving force
behind every venture that Welspun Corp has undertaken
and it continued to be evident during the last financial
year. It was the unending quest for excellence, the
constant striving to do even themost ordinary thingswell
thathasmadetheCompanyaclassapart.
Thelast financialyear wasa greatone for WelspunCorp
Ltd (WCL). In spite of the downturn the company was
able to commission most of the projects it had
committed to and registered a sustained performance
withstrongorderbook positionof Rs. 7,447crore. Thisis
really creditable as overall industrial production
continuedto slidethroughoutthe year.
Last fiscal, one of the biggest achievements
undoubtedly was the investment by Apollo Global
Management, LLC (together with its subsidiaries,
Apollo) in the company. This partnership will pave the
way forWelspun to strengthen its leadership position as
oneof thetopline pipe companiesin theworld.
Another significant development was the
announcement of expansion plans at the Little Rock
facilityin Arkansas.Another200 jobs will be added atan
investment of additional $80 million. During FY12, the
Company also commissioned a 0.10 million tonne
capacity HSAW Plant at Mandya in Karnataka which will
mainly cater to the water segment. The Company also
commenced operations at the new LSAW plant at Anjar
with a capacity of 0.35 million tonnes. The plant will
cater to thegrowingLSAW demandin India andglobally
towardstransportationof offshore Oiland Gas.
Meanwhile, to strengthen the management, Mr Braja K
Mishra has rejoined the Company as Managing Director,
WCL after a brief stint of three years outside Welspun. He
bringsalongwithhim 25yearsof experiencewithimmense
criticalknow howaboutthepipeandplateindustry.
With the Companys continued focus on excelling in
every sphere of its operations and generating
sustainablevalue forits customers andstakeholders,it is
sureto reach tostronger heights in theyearsahead.
Excellence in Engineering
In this Annual Report we have disclosed forward-looking information to enable
investors comprehend our prospects and take informed investment decisions.
We havetried, whereverpossible,to identify suchstatements by usingwordsas
'anticipate', 'estimate', 'expects', 'projects', 'intends', 'plans', 'believes', and
words of similar substance in connection with any discussion of the future
performance. We cannot guarantee that these forward-looking statements will
be realized, although we believe we have been prudent in our assumptions.
Should known or unknown risks or uncertainties materialize, or should
underlying assumptions prove inaccurate, actual results could vary materially
from those anticipated, estimated or projected. Readers should bear this in
mind. We undertake no obligation to publicly update any forward-looking
statements,whetheras a resultof newinformation,future eventsor otherwise.
FAQs .......................... 172
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The ability to see future prospects and turn them into
profitable business ventures. Thats something that sets us
apart. FromAnjar to Dahej, fromArkansas to Dammam,
wehave always anticipatedour customersneeds.
Excellence .. It flows from our Vision
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KEY MANAGEMENT TEAM
2726
C rp Ltd
CERTIFICATE OF PRACTICING COMPANY SECRETARY ON CORPORATE
GOVERNANCEREPORT
TotheMembersof
WelspunCorpLimited
Wehaveexaminedthecomplianceof conditionsofCorporateGovernancebyWelspunCorpLimited,for theyear
ended on March 31, 2012, as stipulated in Clause 49 of the Listing Agreement of the said Company with stock
exchange.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our
examinationwas limitedto procedures andimplementationthereof, adoptedby theCompanyforensuringthe
complianceofthe conditionsof theCorporateGovernance.Itis neitheran auditnoran expressionofopinionon
thefinancial statementsof theCompany.
Inour opinionandtothe bestofour informationand accordingtotheexplanationgivento us,we certifythatthe
Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned
Listing Agreement.
Westatethatin respectof investorgrievancesreceivedduringthe yearendedMarch 31,2012,theRegistrarsof
the Company have certified that as at March 31, 2012, there were no investor grievances remaining
unattended/pendingfor morethan 30days.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the
efficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.
For S.S.Risbud&Co.
CompanySecretaries
SanjayRisbud
Proprietor
Certificateof PracticeNo. 5117
Mumbai
May29,2012
Mr. R.R. Mandawewala
Director
Group Managing
Mr. B.R. Jaju
Director & Chief
Financial Officer
Mr. Prashant Mukherjee
Director, Welded Pipes
Mr. L. T. Hotwani
Director, (Taxation &
Accounts CMD Office)
Mr. Vipul Mathur
Director,
Sales & Marketing
Mr. David J. Delie
President,
Welspun Pipes Inc.
Mr. B.K. Goenka
Executive Chairman
Mr. Braja Mishra
Managing Director
Mr. Akbar Umatiya
Vice President,
Welspun Middle East
Mr. Akhil Jindal
Director,
Group Finance& Strategy
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Excellence .. Driven by Innovation
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Excellence .. Hand-in-hand with Sustainability
Act responsibly today so that future generations may enjoy a
better tomorrow. It is with this vision that we have launched
initiatives like Welspun Vidya Mandir, Light of Life Trust,
Project Anando, Mission Mangalam Scheme, to name a
few. So along with our own advancement, we help the world
achieveall-roundeconomic,environmentaland socialprogress.
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71
C rp Ltd
to equip the candidates with computer skills. It also emphasises learning of other soft skills and
Englishlanguageskillsto boosta candidatesemploymentpotentialin todayscompetitivejobmarket.
Empowermentand Health
Anjar, Kutch Gujaratand Salav Maharashtra
a. Anti-TobaccoandHealthProject
Welspuninitiatedan Anti Tobaccoandhealth campaignin Alibaug governmentschools. Thisproject
was in collaboration with Salaam Bombay Foundation and disseminates information and creates
awarenessaboutthe ill effectsof tobacco through activeteacherparticipation.The projectreaches
outto 33Schools,53 Teachers,7 Clustercoordinatorsand 5 blockauthorities.Variousactivitieshave
been held such as teachers training workshops, students leadership development camps andAnganwadiworkerst rainingsessions.
b . H ea lt h Ca re
Dahej
Welspunorganiseda freeHealthCampat JolwaPrimarySchool,Jolwa.TheCamp wasinauguratedby
Mr. Sulemanbhai (Sarpanch, Jolwa village) and Mr. Ghanshyambhai (Sarpanch of Vadadala village)
withWelspunvolunteersandparticipantsin attendance.
The camp was the first of its kind in the locality. Doctors from the leading hospital Bharuch Global
Hospital volunteered to offer their medical expertise and service.The event was welcomed by local
villagers. Around 170 adults, including mothers with children, were screened and diagnosed for
varioushealth ailments.
c . M ob il e He al th V an
Mumbai
Welspun, in collaboration with the Wockhardt Foundation, launched a mobile health unit to reach
out to five underprivileged neighbouring communities in Mumbai. About 1,100 people have
benefited from the facilities provided by this van. The emphasis is on the health of the mother and
child.Regularawarenessworkshops arealso carried outin thesecommunitiesas partof preventive
health careeducation.
d. Blo o dDonatio nCamp
WelspunHO,Mumbai
Welspun took a small step towards saving lives when it organised a blood donation camp at HO incollaborationwith TataMemorial Hospital.
Altogether 123 people donated blood and 93 units were collected. As a token of appreciation,
participating employeeswere givendonorcards fromTataMemorialHospitalwhichcan be usedby
the donor or their immediate family to get blood from Tata Memorial Hospital or any other blood
bankintimesof emergency.
e. WomenEmpowermentInitiative
Varsamedi,Anjar
Welspun pioneered Mission Mangalam Scheme with the Gujarat Government. Currently there are
threeSakhiSwarnimCentersbeingrunin Varsamedi,DudhaiandBhadreshwar.Thisinitiativewidens
70
CATALYSING CHANGE
TherearetwoimportantsocialcornerstonestoWelspunscorporatephilosophy astrongcommitment to
wider, all roundsocialprogress,and to a sustainabledevelopmentthat balancesthe needsof thepresent
withthoseofthe future.
Our vision has been enshrined in the three Es which have become the Guiding Principles of our CSR
initiatives Education, Empowerment & Health, and Environment, which in actual terms, has manifested
itselfinthe WelspunFoundationforHealthand Knowledge(WFHK).
The Foundation is an essential part of our organisation, and is active wherever we have a business
presence. Through it we engage with local stakeholders, and in a process that is both consultative and
collaborative, we have taken up a range of innovative programmes in the spheres of health, education,
environment,as wellasculturalandcivicprojectsoverthelastfewyears.
In mostof ourprojectcenterswe havesuccessfullymanagedto integratewith the localcommunitiesand
developmutuallybeneficialrelationshipswiththem.
During FY 2011 12, we took up a number of programmes in key economic, environmental and social
spheres.
Education
Welspun is dedicated to improving and enhancing the quality of education thus equipping the
children of todayto become theleadersof tomorrow.We workcloselywith thegovernment and
non profit organisations to provide quality education to 3,000 tribal, rural and urban children.
Someofour keyinitiativesare:
a. Naandi Fo undatio n: (Quality Education Programme at Primary School level) Mumbai Welspun
Foundationfor Healthand Knowledgehas joined handswith NaandiFoundationin a projectthat
covers six Municipal Corporation of Greater Mumbai (MCGM) schools in Mumbai. With our financial
support,NaandiFoundationreachesoutto700schoolchildrenandprovidesthemwithqualityeducation.
b. Lighto f LifeTrust:ProjectAnando: (Quality Education at Secondary School Level) Salav, Alibaug,
Maharashtra.This initiativeaimsto providequalityeducationto underprivilegedchildrenatSalav
andAlibaug.The LightofLife Trust,in associationwithWelspun,supportscloseto 100rural/tribal
childrenat SalavandAlibaug.
LivelihoodGeneration
Welspun has given importance to equipping youth with the skills that will help them to earn a
livelihood.Thefocusison helpingthe youthfromneighbouringcommunitiesgettrainedforbetter
livelihoodoptionsthatwillaccelerateeconomicandsocialdevelopment.
a. JeevanAshaComputerTrainingCentre
Salav,Alibaug,Maharashtra
Welspun has recently launched a computer training centre in Alibaug as part of its livelihood
generationprogramme.Thecentrerunsincollaborationwiththe LightofLifeTrust.
In the current academic year, approximately 200 students from rural /tribal underprivileged
familieswillbe trainedin basiccomputercoursesto ensureemployability. Thecourseisdesigned
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72
theirlivelihoodoptionsby buildingcapacitiesandprovidingtrainingto ruralwomen. Approximately
250 women have been trained under this scheme. All of them are engaged in livelihood activity
whichhas enhancedtheiresteem,confidenceand mostimportantlythe familyseconomicstandards.
Approximately700 ruralwomenare beingempowered.The sameprojectwill be replicatedin other
potentialvillagesincollaborationwiththeGujaratGovernment.
CharitableDo nations
Donationof bedsheets and curtainsto REAPorganisation and theLight of LifeTrust. School stationery donated by Welspun employees and distributed to students f rom the
VatsalyaFoundation.
EmployeeVoluntary Programme
Special emphasis is being given on employee participation in the various schemes. An employee
voluntaryworkshopwasorganisedat Salavwhere20 employeesdiscussed theplan of actionforthe
voluntaryinit iatives.
CommunityDevelop ment
a. Sanitatio nPro ject
Kharapasvariya,Gujarat
Sanitation work was undertaken at Kharapasvariya village as part of a health drive. Welspun
supported the event by providing gutter covers and road widening repair work to enhance
cleanliness and hygienic conditions. The villagers were overwhelmed when they were selected to
receiveanAward andCertificatefromthe ChiefMinisterof Gujaratforcleanlinessand overallhygiene.
Other Activities
a . C SR E xp re ss io n
WelspunHO,Mumbai
To portray the various Welspun CSR projects at different locations a special event Welspun CSR
Expression,wasorganisedat theHead Office.It washeld onthe eveof TeachersDay,and thefocus
wastocapturetheessenceofthe coreobjectivesofthe companysCSRinitiatives.
NGOs such as Salaam Bombay Foundation, Light of Life Trust and Naandi Foundation, which had
worked in collaboration withWelspunCSR teamsat Salavand Anjar, participatedin theprogramme
by organising exhibitions. They also made a presentation of their activities to Mrs. Dipali Goenka,
ManagingDirector,WGBL,the SeniorManagementandotherWelspunemployees.
b. WelspunsChristmasGetTogetherParty
Welspunorganiseda ChristmasGet Together Partyfor120 childrenfrom Welspun supportedNGOs.
Welspunemployeevolunteersorganisedgamesforthe children.
73
C rp Ltd
................... 74
FINANCIAL SECTION
Consolidated Accounts
Audit Report Consolidated Accounts
Consolidated Balance Sheet
Consolidated Statement of Profit & Loss
Consolidated Notes to Accounts
Consolidated Cash Flow Statement
Section 212 (8) Disclosure
Standalone Accounts
Audit Report Standalone Accounts
Standalone Balance Sheet
Standalone Statement of Profit & Loss
Standalone Notes to Accounts
Standalone Cash Flow Statement
Section 212 Disclosure
................... 76
................... 77
................... 78
................... 120
................... 122
................... 123
................... 128
................... 129
................... 130
................... 163
................... 171
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13. Non current investments
(Valued at cost unless stated otherwise)
A. Trade investments unquoted
Associates
Red Lebondal Limited (Extent of holding 25%)
450 (450) Equity Shares of Euro 1 each
Less: Share of accumulated loss
Add : Share of Profit for the year
Welspun Energy Limited (Extent of holding 26%)
17,515,300 (273,000) Equity Shares of Rs 10 each
Less: Share of accumulated loss
Add: Share of Profit/(Loss) for the year
Investment in Joint Ventures
B. Other investments
i) Quoted
Welspun Investments and Commercials Limited *
5 (5) Equity Shares of Rs 10 each
Welspun Global Brands Limited * [Rs 459 (Rs 459
10 (10) Equity Shares of Rs 10 each
Standard Chartered Bank PLC IDR #
334,331 (334,331) IDR of Rs 100 each)
Naonal Minerals Development Corporaon Limit
100,000 (Nil) Equity Share of Rs 10 each
Corporaon Bank
1,600 (1,600) Equity Shares of Rs 10 each
ii) UnquotedWelspun Capve Power Generaon Limited
5,000 (5,000) Equity Shares of Rs 10 each
Welspun Enterprises (Cyprus) Limited
11,800 (11,800) Equity Shares of Euro 1 each
Notes forming part of the Cons olidated Fina
NotesformingpartoftheConso
lidatedFinancialStatements
12.FixedAssets
(Rs.inmillion)
GrossBlock
Depreciaon/Amorsaon/Impairment
NetBlock
As
at
1April
2011
Acquired
onAcqui-
sion
Addions
Foreign
Currency
Fluctua-
ons
Deduc-
ons
Asat
31March
2012
Upto
1Aprl
2011
Acquired
on
Acquisi-
on
Forthe
year
Foreign
Currency
Fluctua-
ons
Deduc-
ons
Impair-
mentUpto
01Aprl
2011
Upto
31March
2012
Asat
31March
2012
Asat
31March
2011
a)TangibleAssets
Land-Freehold
41
4.5
2
13.6
6
9.1
5
30.0
3
2.2
3
465.1
2
-
-
-
-
-
-
-
465.1
2
414.5
2
Land-Leasehold
1,20
3.8
1
398.4
1
514.8
1
78.5
5
-
2,1
95.5
8
118.7
5
10.5
6
64.0
2
9.0
0
-
-
202.3
2
1,9
93.2
6
1,0
85.0
6
Buildings
6,51
9.8
9
238.2
7
1,5
78.4
9
373.1
1
14.1
1
8,6
95.6
5
650.9
6
9.8
2
228.1
7
20.6
2
-
0.4
2
910.0
0
7,7
85.6
6
5,8
68.5
0
PlantandMachinery
34,87
2.2
3
5,5
02.4
3
10,9
40.0
0
1,0
80.3
0
126.5
0
52,2
68.4
5
7,0
99.9
5
846.2
6
2,7
95.3
2
136.8
0
59.1
1
41.1
0
10,8
60.3
2
41,4
07.3
3
27,7
31.1
7
ConstruconAssets
23
6.3
3
-
0.9
3
-
-
237.2
6
93.6
1
-
19.6
1
-
-
-
113.2
2
124.0
4
142.7
2
Officeandother
Equipments
64
1.3
6
83.3
6
131.7
5
43.2
4
36.7
4
862.9
6
198.1
8
37.3
1
112.3
1
11.5
7
12.8
7
0.6
2
347.1
3
515.8
3
442.5
6
Vehicles
31
6.4
0
43.5
4
18.4
4
5.8
2
6.3
8
377.8
1
181.0
1
22.4
7
41.6
9
1.5
5
4.2
1
-
242.5
1
135.3
1
135.3
9
FurnitureandFixtures
16
2.7
3
10.8
3
40.2
0
5.5
1
5.9
6
213.3
1
54.6
1
4.3
6
22.5
5
1.5
9
3.1
5
0.0
1
79.9
7
133.3
4
108.1
1
LeaseholdImprovement
-
21.9
0
19.4
7
-
1.1
4
40.2
3
-
11.3
5
4.5
1
-
1.1
3
-
14.7
3
25.5
0
-
Total(a)
44,36
7.26
6,312.40
13,253.24
1,616.56
193.07
65,356.39
8,397.08
942.13
3,288.18
181.12
80.46
42.16
12,770.20
52,585.39
35,928.02
b)IntangibleAssets
Goodwll
12
0.2
3
16.7
0
-
17.0
7
-
153.9
9
120.2
3
7.3
2
2.2
3
17.0
7
-
-
146.8
4
7.1
6
-
GoodwllonConsolidaon
85
8.7
1
-
9,0
29.1
5
-
-
9,8
87.8
6
-
-
-
-
-
-
-
9,8
87.8
6
858.7
1
Soware
46
1.7
6
8.4
4
16.1
8
-
0.0
9
486.2
9
115.8
2
6.7
6
93.9
2
-
-
-
216.4
9
269.7
9
345.9
4
Build
,Operateand
Transfer(BOT)
4,75
8.9
8
-
122.3
3
-
-
4,8
81.3
1
160.6
2
-
148.8
4
-
-
-
309.4
6
4,5
71.8
5
4,5
98.3
5
Total(b)
6,19
9.67
25.14
9,167.66
17.07
0.09
15,409.45
396.67
14.07
244.98
17.07
-
-
672.79
14,736.66
5,803.01
Total(a+b)
50,56
6.93
6,337.54
22,420.90
1,633.62
193.16
80,765.84
8,793.74
956.20
3,533.16
198.19
80.46
42.16
13,442.99
67,322.05
41,731.02
PreviousYear
38,80
1.3
4
5,9
59.1
8
7,1
20.4
5
(939.2
1)
374.8
2
50,5
66.9
3
5,8
46.7
5
525.0
0
2,4
64.0
2
(8.2
1)
33.8
2
42.1
6
8,8
35.9
0
41,7
31.0
2
CapitalWorkinProgress
6,190.89
7,772.41
Notes:
1)Deprecaon
ortheyearncudesRs1793
m
on(Rs.2455m
on)transferredtoPreoperaveexpenses.
2)GrossbockofPantandMachneryncude
sRs63.49m
on(Rs.63.49m
on)nrespectofexpendtureoncaptaassets,ownershpofwhchdoesnotvestwththecompany.
3)Fordetasofexchangedfferencecaptazed/decaptazedasperamendedAS11[ReerNote31(b)].
4)Captawork-n-progressncudespre-operaveexpensesRs.3,793.28m
on(Rs.830.16m
on).
5)Pre-operaveexpensesofRs.249.45m
o
n(Rs.47.02m
on)nrespectofprojectshavebeencaptazeddurngtheyear.
6)Borrowngcosts(net)transferredtofixeda
ssets/captawork-n-progresssRs.749.58m
on(Rs103.25m
on).
7)Incaseofasubsdary,engagednmanufac
turngofSpongeron,easehodandaggregangtoRs.398.41m
on(grossbock)a
cquredunderSchemeofArrangementsyettobetransferrednthenameofcompa
ny.
8)Incaseofasubsdary,engagednmanufac
turngofSpongeron,BudngsncudeRs.54.43m
on(grossbock)bengcontrbu
onforconstruconofkharandbunds(structure),ownershpofwhchvestswthth
estategovernmentauthores.
9)Durngtheyear,theparentcompanyhasre
vsedusefu
feofcomputersandmobephone(officeequpments)to4yearsand3yearsrespecveyduetowhchdeprecaonshgherbyRs.15.49m
onhasbeen
chargedtostatementofprofitandoss.
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104
(Rs. in million)
2012 2011
25. Purchases of traded goods
Purchases of traded goods 378 37 457 60
Total 378.37 457.6026. Changes in inventories of finished goods, work/goods in process
Inventories at the end of the year
Work / Goods in process 1,833 10 1,197 02
Finished Goods 8,527 48 5,835 24
10,360 58 7,032 26
Inventories at the beginning of the year
Work / Goods in process 1,197 02 1,476 84
Finished Goods 5,835 24 3,071 06
Add: On Acquision 613 67 4,100 08
7,645 93 8,647 98
(2,714 65) 1,615 72
Total (2,714.65) 1,615.72
27.Employee benefits expenses
Salaries, wages and Bonus 4,508 41 3,687 09
Contr buon to Provident and other funds 130 20 119 33
Employee compensaon expenses (1 51) (0 56)
Staff Welfare expenses 238 59 102 92
Total 4,875.68 3,908.78
28.Other expenses
Store and Spares consumed 2,375 99 1,692 52
Coang and Other Job charges 1,440 32 572 71
Power, Fuel and Water charges 1,923 68 1,420 53
Freight, Material Handling and Transportaon 3,504 95 4,464 14
Excise duty on (increase)/decrease on stock (9 25) 54 98
Construcon Cost
Sub contract costs 1,234 42 375 25
Plant hire costs 560 70
Tools and equipment 80 61
Temporary site installaons 160 14
Labour charges 170 97
Rent 397 43 330 79
Rates and Taxes 689 62 216 60
Repairs and Maintenance
Plant and machinery 342 89 228 23
Buildings 48 10 28 17
Others 169 21 81 63
Travelling and Conveyance expenses
Communicaon expenses
Professional and Consultancy fees Insurance
Directors' sing fees
Prinng and Staonery
Security charges
Membership and Subscripon
Vehicle expenses
Exchange difference (net)
Loss on sale / discard of fixed assets
Auditors remuneraon
Product Compensaon and Claims (Refer note 35)
Sales promoon expenses
Liquidated damages
Commission and discounts on sales
Provision for doubul debts and advances (net)
Bad debts and advances wrien off
Miscellaneous expenses
29.Finance costs
Interest on
Term Loans
Debentures / Bonds
Working Capital
Others
Other borrowing costs
Exchange difference (Net)
Notes forming part of the Consolidated Financial Statements Notes forming part of the Consolidated Fina
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140
12.FixedAssets
(Rs.inmillion)
GrossBlock
Depreciaon/Amorsaon
NetBlock
AsAt
01.04.2011
Addions
deducons
AsAt
31.03.2012
up
to
01.04
.2011
Addions
deducons
upto
31.03.2012
AsAt
31.03.2012
AsAt
31.03.2011
a)Tangibleassets
-
-
-
FreeholdLand
185.7
5
9.1
5
2.2
3
192.6
6
-
-
-
-
192.6
6
185.7
5
Buildings
3,8
67.7
1
800.9
9
-
4,6
68.7
1
503.3
8
112.3
8
-
615.7
6
4,05
2.9
5
3,3
64.3
3
PlantandMachinery
2
6,7
55.5
0
6,4
76.3
9
16.2
3
33,2
15.6
6
5,916.1
1
1,5
78.5
6
5.1
7
7,4
89.5
0
25,72
6.1
6
20,8
39.3
9
OfficeandOtherEquipments
308.9
8
62.6
7
32.0
9
339.5
6
104.1
4
53.0
0
9.0
9
148.0
5
191.5
1
204.8
5
Vehicles
56.9
1
2.7
0
3.2
3
56.3
9
21.2
6
5.2
5
1.3
5
25.1
7
31.2
2
35.6
5
FurnituresandFixtures
110.0
5
20.5
8
3.3
6
127.2
8
38.2
8
8.9
9
0.9
1
46.3
5
80.9
2
71.7
7
Total(a)
3
1,284.90
7,372.49
57.13
38,600.26
6,583.17
1,758.18
16.52
8,324.83
30,275.43
24,701.73
b)Intangibleassets
Soware
459.9
5
3.6
0
-
463.5
5
115.3
4
89.6
5
-
204.9
9
258.5
6
344.6
0
Total(b)
459.95
3.60
-
463.55
115.34
89.65
-
204.99
258.56
344.60
Total(a+b)
3
1,744.85
7,376.09
57.13
39,063.81
6,698.51
1,847.83
16.52
8,529.82
30,533.99
25,046.34
PreviousYear
2
9,683.49
2,101.21
39.85
31,744.85
5,057.64
1,658.03
17.15
6,698.52
25,046.34
-
CapitalWorkinprogress
1,979.48
4,951.39
Notes
1.
GrossblockofPlantandMach
ineryincludesRs63.4
9million(Rs.63.4
9million)inrespectofexpenditureincurredoncapitalasset,ownershipofwhichdoesnotvest
intheCompany.
2.
Depreciaon/AmorsaonfortheyearincludesRs.4.3
0million(Rs.1.3
8million)transferre
dtopre-operaveexpenses.
3.
Fordetailsofexchangediffere
ncecapitalisedasperamendedAS-11,
refernote31(b)
4.
Pre-operaveexpensesofRs.
249.4
4million(Rs.42.5
8million)inrespectofprojectshaveb
eencapitaizedduringtheyear.
5.
Borrowingcostalocatedtofixedassets/CapitalworkinprogressisRs.241.4
1million(Rs.Nil)
6.
CapitalWorkinprogressincludesPre-operaveexpensesofRs.52.6
0million(Rs.18.5
5million)
7.
Duringtheyear,thecompany
hasrevisedusefullfeofcomputersandmobilephone(Offi
ceequipments)to4yearsand3yearsrespecvelyduetow
hichdepreciaon
ishigherbyRs.15.4
9milionc
hargedtostatementofprofitandloss.
13. Non Current Investments
(valued at cost unless stated otherwise)
A. Trade Investments Unquoted
i) Wholly owned subsidiaries
Welspun Pipes Inc
10,001 (10,001) Equity Shares of USD 1 each
16,000 (16,000) Redeemable Preferred Stock of U
Welspun Pipes Limited
50,000 (50,000) Equity Shares of Rs 10 each
Welspun Infratech Limited (Refer note 43)
48,639,899 (24,750,000) Equity Shares of Rs 10 ea
28,300 (22,500) 7% Unsecured Oponally Converb
Welspun Tradings Limited
5,013,402 (5,013,402) Equity Shares of Rs 10 each
Welspun Natural Resources Private Limited
1,875,000 (1,425,000) Equity Shares of Rs 10 each
ii) Other Subsidiaries
Welspun Maxsteel Limited (Refer note 42(a))
113,622,058 (Nil) Equity Shares of Rs 10 each
Welspun Maurius Holdings Limited
102,089 (99,969) Equity Shares of USD 1 each
14,999,968 (14,999,968) Preference Shares of USD
Welspun Construcons Private Limited
Nil (10,000) Equity Shares of Rs 10 each
iii) Joint Venture
Dahej Infrastructure Private Limited (Extent of hol
500,000 Equity Shares of Rs 10 each
Less: Provision for diminuon in the value
iv) Associates
Red Lebondal Limited (Extent of holding 25%)
450 (450) Equity Shares of Euro 1 each
Welspun Energy Limited (Extent of holding 26%)
17,515,300 (273,000) Equity Shares of Rs 10 each
Notes forming part of the Financial Statemen
NotesformingpartoftheFinancialStatements
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(Rs. in million)
2012 2011
17. Inventories
(As taken, valued and cerfied by management)
Raw materials (including Goods in transit of Rs 2,775 64 million (Rs 3,633 54 million) 8,930 06 6,67015
Goods in Process 1,300 61 508 28
Finished goods 4,861 07 4,809 84
Stores and spares 1,406 75 1,168 08
Total 16,498.49 13,156.35
Details of Inventories Underbroad head.
Raw Materials
H R Coils 902 51 858 39
H R Plates 2,967 19 205 62
M S Slabs 1,915 39 1,775 03
Others 369 33 197 57
Goods in transit 2,775 64 3,633 54
Total 8,930.06 6,670.15
Goods in process
Welded Pipes 229 57 203 67
Coang 14 94 7 61
Plates and Coils 461 43 212 29
Others 594 68 84 71
Total 1,300.61 508.28
Finished goods
Welded Pipes 3,809 74 3,117 40
M S Plate 907 30 1,187 01
H R Coils 120 41 404 64
Coang 23 62 97 40
Others 3 39
Total 4,861.07 4,809.84
18. Trade receivables
(Unsecured and considered good, unless otherwise stated)
Over six months
Considered good 1,289 06 741 57
Considered Doubul 62 60 50 57
Less: Provision for doubul debts (62 60) (50 57)
1,289 06 741 57
Others considered good * 9,638 57 8,099 73
Total 10,927.63 8,841.30
* includes receivable from Subsidiaries Rs 2,760 50 million (Rs 127 15 million)
19. Cash and Bank balances
Cash and cash equivalents
Balances with banks:
Current accounts *
Unclaimed dividend accounts
Deposits having original maturity period of less t
Cheques on hand
Cash on hand
Other Bank balances
Deposits having original maturity period of more
twelve months
Deposits having original maturity period of more t
Margin Money Deposits
* includes Rs 25 56 m llion (Rs 29 51 million) bein
account, not available for use by the company
20. Short term loans and advances
(Unsecured considered good unless otherwise
Deposits
Related pares (Refer note 40)
Others
Loans and Advances to Subsidiaries
Share Applicaon Money to Subsidiaries
Other Loans and Advances
Advances recoverable in cash or in kind
Balances with government authories
Prepaid expense
Loans and advances to employees
Less: Provision for doubul advances
Notes forming part of the Financial Statements Notes forming part of the Financial Stateme
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150
(Rs. in million)
2012 2011
21. Other current assets
Interest accrued on
Subsidiaries 248 33 26 11
Current Investment 616 13 145 04
Fixed deposits 45 79 67 18
Others 17 80 15 52
Receivable towards claim 76 31
Export benefits receivable 226 43 508 71
Assets held for disposal 8 46 8 46
Total 1,239.26 771.02
22. Revenue from Operaons
Sale of Product
Finished Goods 49,357 62 52,428 61
Traded goods 7,252 48 9,414 36
Other Operang Revenues (Refer note 46) 3,931 29 3,488 13
Revenue from Operaons (gross) 60,541.39 65,331.10
Less: Excise Duty 2,844 27 2,627 07
Revenue from Operaons (net) 57,697.11 62,704.03
Details of Sale of Product under broad head.
Finished Goods
Welded Pipes 29,227 10 33,336 45
M S Plates 14,793 23 15,360 89
H R Coils 3,097 70 2,113 02
Coang 460 97 393 21
Power 195 84 418 01
Steam 786 56 589 60
Others 796 22 217 42
49,357.62 52,428.61
Traded Goods
H R Coils 7,252 48 9,414 36
7,252.48 9,414.36
23. Other Income
Interest from
Subsidiaries 269 36 29 01
Current Investments 692 64 269 11
Fixed Deposits 133 64 197 26
Others 124 30 173 59
Profit on Sale of Fixed Assets (net) 0 10
Dividend Income 405 00 98 60
Profit on Sale of Investments
Miscellaneous Income
24. Cost of Materials consumed
Inventory at the beginning period
Add: Purchases
Less: Inventory at the end of the year
Details of Raw Material Consumed
H R Coils
H R Plates
M S Slab
Welding and Coang Materials
Others
25. Purchases of Traded GoodsPurchases of Traded Goods
26. Changes in inventories of Finished Goods, Goo
Inventories at the end of the year
Goods in process
Finished goods
Inventories at the beginning of the year
Goods in process
Finished goods
27. Employee benefits expense
Salaries, Wages and Bonus
Contribuon to Provident and other funds
Employee compensaon expenses (Net)
Staff Welfare expenses
Notes forming part of the Financial Statements Notes forming part of the Financial Stateme
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166
Note 45 Earnings Per Share (EPS)
2012 2011
I) Profit computaon for Basic and Diluted EPS
Profit aer Tax (Rs. in million)
64938 3,644 52
Add: Interest on Foreign Currency Converble Bonds (net of tax)(Rs in mil ion)
14998 233 98
Add: Interest on Compulsar ly Converble Debentures (net of tax)
(Rs in mil ion)
165 61
Profit aer Tax for Diluted EPS (Rs in mil ion) 964 97 3,878 50
II) Weighted average number of equity shares for EPS computaon
a) For Basic EPS (Nos) 219,028,187 204,549,256
b) For D luted EPS (Nos) 278,200,370 229,020,787
III) EPS on Face Value of Rs. 5 each
Basic (Rs ) 2 96 17 82
Diluted (Rs ) 2 96 16 94
Note 46 Other operang revenues
(Rs. in million)
2012 2011
Scrap sales 1,308 44 1,432 54
Value added tax incenve 670 30 508 15
Export benefits 480 50 1,321 77
Excess provisions wrien back 1,135 91 57 25
Others 336 14 168 43
Total 3,931.29 3,488.13
Note 47 Remuneraon paid or provided in accordance with secon 198 of the Companies Act, 1956 to the
Directors is as under:
(Rs. in Million)
2012 2011
Execuve
Chairman
Managing
Director
Whole
Time
Directors
Execuve
Chairman
Managing
Director
Whole
Time
Directors
Salaries and Allowances 10 00 10 00 9 01 5 50 4 74 17 62
Commission 1 78 52 08
Perquisites /
Contribuon to Provident Fund 0 26 0 50
Total 11.78 10.00 9.27 57.58 4.74 18.12
Note 48 Value of Raw Material Consumed
Imported
Indigenous
Total
Note 49 Value of Stores and Spares Consu
Imported
Indigenous
Total
Note 50 Value of Imports on CIF Basis in re
Raw Materials
Capital Goods
Stores and Spares
Traded Goods
Coal
Note 51 Expenditure in Foreign Currency
Freight, Material hand ing and Transp
Membership and other fees
Sales Commission (Net)
Finance Cost (including Bank charges
Professional and Consultancy fees
Coang and other Job work charges
Others
Notes forming part of the Financial Statements Notes forming part of the Financial Statemen
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170
C) Cash Flow from Financing Acvies
Proceeds from issue of equity shares (including securies premium)
(Refer note 2) 5,079 47 27 63Proceeds from issue of Compulsorily Converble Debentures 7,883 75
Proceeds from issue of debentures 10,000 00
Redempon of debentures (1,300 00)
Repayment of long term borrowi ng s (16 6 9) (3,181 13)
Increase/(decrease) in short term borrowings (net) 1,549 17 1,362 32
Interest expenses paid (1,506 0 1) (1,312 8 9)
Div idend paid ( includ ing corporate d iv idend tax ) ( 47507) (475 65)
Net cash from financing acvies ( C ) 12,514.62 5,120.29
Net changes in cash and cash equivalents (A+B+C) 244.72 (3,047.70)
Cash and cash equivalents at the beginning of the year 6,164 71 9,212 41
Cash and cash equivalents at the end of the year 6,409.43 6,164.71
Notes:1 Cash and Cash equivalents at end of year includes unrealised Profit of Rs 29 11 mil ion (Unrealized Loss of Rs49 29 mil ion)
being on account of Current Account/Fixed Deposits in foreign currency
2 Proceeds from equity shares includes Rs 5,072 68 million (net of issue expenses of Rs 108 17 mi lion) received from
"Global Depository Receipts" (GDR) (Refer note 2 (e) of Notes to Ac counts)
3 Cash and Bank balances include Rs 813 33 million (Rs 765 44 million) which is not available for use by the Company
4 Previous year figures have been regrouped/recast wherever necessary
As per our aached report of even date For and on behalf of the Board
For MGB & Co. B.K.Goenka R.R.Mandawewala
Chartered Accountants Execuve Chairman Director
Firm Registraon Number 101169W
Jeenendra Bhandari Braja Mishra B.R.Jaju
Partner Managing Director Chief Financial Officer
Membership Number 105077
Place: Mumbai Pradeep Joshi
Date: 29 May 2012 Company Secretary
STATEMENTPURSUANTTOSECTION212OFTHECOMPANIESACT,1956,RELATEDTOSUBSIDIARYCOMPANIES
NAMEOFTHESUBSIDARYCOPANY
WELSPUN
NATURA
RSOURCES
PVT.LTD.
WELSPUN
PLASTICS
PVT.LTD.
WELSPUN
MAXSTEEL
LTD.(1)
WELSPUN
PPES
NC
WELSPUN
TUBULAR
LLC
WELSPUN
GLOBAL
TRADE
LLC
WELSPUN
PIPES
LTD.
WELSPUN
TRADNGS
LTD.
WELSPUN
INFRATECH
TD.
WELSPUN
ROAD
PROJECTS
PVT.LTD
WELSPU
N
PROJECTS
LTD
MSK
PROJECTS
(HMMATNAGAR
BYPASS)
PRVATELTD.
MSK
PROJECTS
(KMMANDAVI
CORRDOR)
PVT.LTD.
WELSPUN
INFRA
PROECTS
PRVATE
LMITED
WELSPUN
ENERGY
TRANSPORTATON
PVT.LTD.
WELSPUN
WATER
NFRASTRUCTURE
PVT.LTD
ARSSBUS
TERMINAL
PRVATE
LTD(2)
WELSPUN
BOT
PROJECTS
PRIVATE
LTD(3)
ANAR
ROAD
PRIVATE
LTD(4)
WELSPUN
MAURTUS
HOLDNGS
LTD
WELSPUN
MIDDLE
EAST
DMCC
WELSPUN
MIDDLE
EASTPPES
COATNGS
COMPANYLLC
WELSPUN
MIDDLE
EASTPIPES
COMPANY
LLC
FINANCIALYEAROFTHE
SUBSIDIARYENDEDON
31stMarch,
2012
31tMarch
2012
31stMa
rch,
2012
31stMarch,
2012
31stMarch,
2012
31tMach
2012
31stMarch,
2012
31stMarch,
2012
31stMarch,
2012
31tMach
2012
31stMarch
2012
31stMarch,
2012
31stMarch,
2012
31stMarch,
2012
31stMarch,
2012
31stMarch,
2012
31tMach
2012
31stMarch,
2012
1stMarch
2012
31stMach
2012
31stMarch,
2012
31stMarch,
2012
31stMarch,
2012
SHARESOFTHESUBSIDIARYCOMPANY
HELDONTHEABOVEDATE
ANDEXTENTOFHOLDING
(i)Equityshares
18
75
000
equ
ty
sharesof
Rs10
each
-
113622
058
equtysh
ares
ofRs10e
ach
10001
common
stockof
US$1each
-
-
50000
equty
sharesof
Rs10
each
5013402
equ
y
sharesof
Rs10
each
48
639
899
equty
sharesof
Rs10
each
-
-
-
-
-
-
-
-
-
-
102089
equ
y
sharesof
US$
1
each
-
-
-
(ii)PreferenceStock
-
-
-
16000
preference
stockof
US$1000
each
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
49
99
968
preference
sharesof
US$1each
-
-
-
(ii)Extentofhoding/Contro
100%
100%
87.35
%
100%
100%
100%
100%
100%
100%
100%
61.12
%
100%
100%
60%
100%
100%
45%
100%
100%
8998%
100%
50.0
1%
50.0
1%
Netaggregateamount
Cash Flow Statement for the year ended 31 March
(Rs Million)
2012 2011
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173172
C rp Ltd
PIPESEGMENT
PLATE CUMCOIL MILLSEGMENT
INFRASTRUCTURESEGMENT
1. Whatis thecurrentcapacityofPipesin India,US &Saudi?Whetherthecompanyis lookingforanyfurther
expansionplans?
The current pipe manufacturing capacity is 2.20 million MTPA as explained on page no.50 (Figure 24),
includes the US capacity of 0.35 million MTPA and Saudi capacity of 0.30 million MTPA. The new LSAW
capacityof0.35millionMTPAin Indiagotcommissionedin Q3FY12.TheCompanyhasinitiatedthe capacity
expansionof0.175millionMTPAofERWin US,whichwouldgetcommissionedby FY13,and the0.05million
MTPA of HSAW capacity extension of the Mandya plant to be commissioned in FY13. With these additions,
thetotalworldwidemanufacturingcapacitywouldstandat2.425millionMTPA.
2. WhatisthecurrentutilizationlevelfortheCompanyinIndia,SaudiandUS pipeplants?
The combined utilization levels in India, Saudi and US plants was ~ 44% for FY12 on an annualized basis.
The capacity utilization depends on the diameter and thickness of the pipes. The new LSAW plant in Anjar
was commissionedin December2011,thereforeutilizationhasbeencalculatedon anannualizedbasis.The
plantwouldtake2 3yearstorampupand reachoptimalutilizationlevel.
3. WhatistheproductionandsalesvolumeinpipesforFY12?
Theproductionofweldedpipeswas819KMTin FY12andthesalesvolumeofpipeswas835KMTin FY12.
4. HowmuchwastheUSProductionduringtheyear?WhatwastheSalesfromtheUSPlantduringtheyear?
During the year, the US plant has produced 210K MT of spiral welded pipes with utilization level of 60%.
RevenuefromtheUSPlantwasRs. 16,987million(US$354million)forFY12.
5. HowmuchwastheSaudiProductionduringtheyear?WhatwastheSalesfromtheSaudiPlantduringtheyear?
TheSaudiPlantstartedproductioninthe lastquarterof FY11,and produced136KMTof spiralweldedpipes
inFY12.RevenuefromtheSaudiPlantis~Rs.6,012millionduringtheyear.
6. WhatistheproductioninthePlateMill? Whatistotalsaleof platesduringtheyear(ExternalandInternal)?
TheCompanyproduced507KMTof platesduringthe year.The total platesaleduringtheyearwas 531KMT,
outofwhich441KMTisexternalsalesand90KMTisinternalconsumption.
7. Whatistheoutlookontheinfrasegment?WhatistotalSalesinInfraaddedtoWCL duringtheyear?
Welspuns infrastructure business (Welspun Projects Limited & Leighton Welspun Contractors Private
Limited) has shown positive EBITDA growth and resultant PAT has remained marginally positive after
accountingfor interestanddepreciationinFY12.As farasthe developmentofthebusinessis concerned,the
opportunitysizecontinuesto bestrong,withWelspunhavingitsfootprintsacrossall thecoreinfrastructure
sectors.ThetotalInfrabusinesssalesforFY12are~ Rs.8,970millionafteraccountingfortheconsolidationof
WelspunProjectsLi mitedand LeightonWelspun ContractorsPrivateLimited (w.e.f.28thApril 2011).During
the year, Welspun Infratech Limited, subsidiary of the Company, acquired 45% stake in ARSS Bus Terminal
PrivateLimitedatacostofRs.77million.
8. Whatis thecurrentOrderBookPositionin PipesandPlatesby Value?Whatis thepercentageexportand
domesticbreakupby volume?
Thecombinedorderbookpositionof thecompanystandsat Rs.91,850million(~ US$1.67billion)asof June
22,2012.Thecurrentorderbook consists ofpipe orders of1,242KMT andexternal plateorders of55K MT,
with additional internal plate orders of 107K MT. 81% of pipe orders are from international markets like
NorthAmerica,MiddleEast,NorthAfrica,andSouthEastAsia.
9. WhoaretheMajorClientsonthe OrderBook?
TCPL,Enbridge(Canada) GAIL,(India) SaudiAramco,RTCCWasia,Al WASIT,(MiddleEast)
Zakhim,(Nigeria) PTTEP,(Thailand) Enterprise EPCO,Access,(US)
10. Whatarethekeyexportmarketsforthecompany?
The key export markets for the Company are the markets in North America, Middle East, South East Asia,
Africa, Bangladesh, and Europe. The Company has a well established sales network across the globe with
marketingofficesin MumbaiandDelhi(India),Dammam(SaudiArabia),Dubai(UAE)andHouston(USA).
11. Whatarethenewmarketsinpipessector,thecompanyislookingfor?
ThenewmarketsfortheCompanyaremainlyCIScountries,Europe,partsofMiddleEast,Africa,Iraqand Far
East. TheCompanyhas asizeableexistingbusinessin FarEastbutfrom ourbusinessdevelopmentinitiative,
wearelookingtoreinforceandthisaddsto oureffortsto gathermoremarketsharein theFarEasternmarket.
Further, with growing popularity of natural gas and major investment taking place in the under exploited
regions likeIraqin Middle EastandNigeria,Ghana,Angolain Africa providea significantopportunityto the
company for focusing upon and securing sizeable market share for line pipes in these regions. On the Latin
Americaside,we areseeingthreemarketswhicharefairlyactive;Brazil,Venezuela,ColumbiaandArgentina.
WearealsoseeingsomedemandemerginginMexicowhichwilladdfurthervaluetotheUSmill.
12. HowisthecompanylookinginPipessectortowardsthegrowingdomesticmarket?
Thedomesticmarket is growingat areasonable pace.Basedon theexistingpipelineprojects,the domesticpipelinerequirementsisexpectedtobegoodin thenextyearstocomewithexpenditureplansfrommajoroil
& gas pipeline players like GAIL (Gas Authority of India Limited), RGTIL (Reliance Gas Transportation India
Limited) and GSPL (Gujarat State Petronet Limited). GAIL plans to invest majorly over the next 2 3 years in
expanding its pipeline network to connect consumption centers, as the company looks to expand its gas
network in North India. Welspun is looking towards this opportunity in the domestic market and started
bidding forthe recentlyannounced projects.
ORDERBOOKPOSITION
FAQ SECTION
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13. Whoarecustomersthatthecompanyhasgotaccreditationsfrom?
TheCompanyhasgotaccreditationsfromover50OilandGasmajorsworldwide.Tolist,someofthemare:
14. Whatisthecurrentgrossandnetdebtpositionasat31stMarch2012?
Thegrossdebt(secured& unsecured)isRs. 53,407millioncomprisingof longtermborrowingsof Rs.39,714
million,currentportionoflong termborrowingsof Rs.5,920million,andshorttermborrowingsof Rs.7,773
millionasof31stMarch2012.
The Net Debt Position for the company is Rs. 23,721 million after taking into account Cash and Liquid
Investmentsof Rs.29,686million.
15. WhatistheNetDebttoNetworthratioforthecompany?
TheNetDebtof theCompanystandsat Rs.23,721million,whilethe NetWorthofthe Companyis Rs.49,139
million comprising of Share Capital of Rs. 1,139 million, Reserves & Surplus of Rs. 40,117 million and
CompulsoryConvertible Debenturesof Rs.7,884 million.
TheNetDebttoNet worthratioforthe companyforFY12standsat0.48indicatinga strongBalanceSheet.
16. WhatistheInventoryleveloftheCompany?WhatistheInventoryturnoverforthecompanyduringtheyear?
Inventory increased by Rs. 7,348 million to Rs. 25,827million mostly due to increasei n raw materials of Rs.
3,454 million, finished goods of Rs. 2,692 million, and stores and spares of Rs. 566 million. This increase ininventory also includes the inventory consolidated after the acquisition of Welspun Maxsteel Limited and
aftertheacquisitionof35%stakeinLeightonWelspunContractorsPrivateLimitedduringFY12.
Theinventoryturnoverdayshaveincreasedfrom84daysofNetSalesinFY11to 105daysof NetSalesinFY12.
17. Whatwerethefundsraisedduringtheyearby theCompany?
Asof 31stMarch 2012totalshareoutstandingwere 227.78millionshares.InFY12,InsightSolutionsLimited
andGraneleLimitedinvestedapproximatelyUS$293millioninWCL.ApproximatelyUS$178millionhave
DEBT/ INVENTORYPOSITION
OTHERS
been invested by way of the preferential allotment of Compulsorily Convertible Debentures (CCDs) and
approximately US$ 115 million by way of non voting Global Depository Receipts (GDRs). The CCDs carry a
coupon of 5% and will be mandatorily fully converted within 18 months into equity shares at Rs. 225 per
share, which represents 13.3% of the equity capital of WCL. Funds affiliated with Insight Solutions Limited
have also subscribed for non voting GDRs of US$ 115 million at the same price of Rs. 225 per share. The
above outstanding shares of 227.78 million include the GDRs of 23.02 million shares. The total shares
outstandingaftertakingintoconsiderationofCCDsandsomeESOPswouldbe263.47million.
18. WhatistheplannedCAPEXforthecompanyforthefurtherexpansionplans?
There are no further expansion plans for the company besides the ongoing expansion of 175,000 MTPA ERW
plant in Little Rock, US for US$ 80 million. There would be regular maintenance and need based capex during
FY13andFY14.
19. Whatarethestrategicinitiativestakenbythecompany?
During FY12 the Company acquired 87.35% equity stake in Welspun Maxsteel Limited, major producer of
SpongeIronandhas consolidatedit asa subsidiaryfromAugust13,2011.
The Company also bought 35% stake in Leighton Contractors (India) Private Limited subsequently renamed
asLeighton WelspunContractorsPrivateLimited, LWIN.
Welspun Infratech Limited (100% subsidiary of the Company) has acquired 45% equity stake in ARSS Bus
TerminalPrivateLimitedinAugust2011.
COMPANY NAME COMPANY NAME COMPANY NAME
GAIL India
GASCO
GASCO Egypt
GAZPROM Russia (STROYTRANSGAZ)
KINDER MORGAN US
N A O C Nigeria
NPCC
NTPC
ONGC India
PETRO CHINA
PETRONAS Malaysia
PDO Oman
PGN Indonesia
PTTEP Thailand
UAE
UAE
India
AGIP Jordon
AL WAS T UAE
BECHTEL US
BRITISH GAS
BRITISH PETROLEUM
CHINA NATIONAL PETROLEUM CORPORATION
CPMEC China
CHEVRON US (Framework Agreement)
DOW
EL PASO US
EGYPTIAN GENERAL PETROLEUM CORPORATION
ENTERPRISE US
EXXON MOBIL (GOLDEN PASS PIPELINE) US
GROUP F VE Saudi Arabia
US
QATAR PETROLEUM
RELIANCE NDUSTRIES LIMITED
SA PEM taly
SAUDI ARAMCO
SHELL
S TO LT O FF SH OR E U K
SONATRACH Alger a
TOTAL France
TECHN P
TRANSCANADA (Long Term Contract)
UNOCAL
PERU LNG (HUNT OIL)
VIETSOPETRO
SWCC
India
US
ACERGY
France
US
US
Russ a/Vietnam
Ind a
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