MIRA
INFORM REPORT
|
Report Date : |
19.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
WELSPUN INDIA LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
17.01.1985 |
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Com. Reg. No.: |
04-033271 |
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Capital
Investment / Paid-up Capital : |
Rs.939.760 Millions |
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CIN No.: [Company Identification
No.] |
L17110GJ1985PLC033271 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
RKTW00055G |
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PAN No.: [Permanent Account No.] |
AAACW1259N |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of Home Textile. |
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No. of Employees
: |
11546 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 26480000 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory
track. The company has incurred some losses in the current year i.e. 2010-11.
However, networth appears to be satisfactory. Trade relations are reported as
fair. Business is active. Payments are reported to be usually correct and as
per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED BY
|
Name : |
Mr. Jayvant Pansare |
|
Designation : |
Finance Executive |
|
Date : |
17.12.2011 |
LOCATIONS
|
Registered
Office/Plant I : |
|
|
Tel. No.: |
91-2836-573428/9 / 279000 / 09/ 661111 / 279051 |
|
Fax No.: |
91-2836-247070/ 279010 / 279050 |
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E-Mail : |
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Websites : |
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Location : |
Owned |
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|
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Corporate Office : |
Welspun House, 6th Floor, Kamala Mills Compound,
Senapati Bapat Marg, Lower Parel, Mumbai – 400013, |
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Tel. No.: |
91-22-66136000/ 24908000 |
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Fax No.: |
91-22-24908020/ 24908021 |
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E-Mail : |
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Plant II : |
Survey No. 76 Village and P.O. Morai, Vapi District Valsad, Gujarat – 396194, India |
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Tel. No.: |
91-260-2437437 |
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Fax No.: |
91-260-2437088 |
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Email : |
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Plant III : |
KIADB Industrial Area, Gejjalagere, Taluka Maddur, District Mandya, Karnataka – 571428, Bangalore, India |
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Branch Office : |
Located at : ·
· Ahmedabad |
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Overseas Office 1 : |
Suite no.
1118-1120, 295 Textile Building, 5th Avenue, |
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Tel. No.: |
+1-212-620-2000 |
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Fax No.: |
+1-212-696-2831 |
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Overseas Office 2 : |
Suite - 580, |
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Tel. No.: |
+1-704-362-3942 |
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Overseas Office 3 : |
Rosarito, Baja California, Mexico, Novelty Home Textiles SA DE CV, Ave De La Hospitalidad S/N, Col. Parque Industrial Rosarito C.P. 22710 Rosarito Baja California |
|
Tel. No.: |
+52-1-661-613-4411 |
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Fax No.: |
+52-1-661-613-4409 |
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Overseas Office 4 : |
Post Box No. 19, |
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Tel. No.: |
+ 44-2613-514-150 |
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Fax No.: |
+ 44-1613-514-327 |
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|
Sorema - Tapates e
Cortinas de Banho SA : ( |
Apartado 195-4501-860, |
|
Tel. No.: |
+ 351-227-330-780 |
|
Fax No.: |
+ 351-227-330-789 |
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|
|
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Overseas
Office Warehouse : |
|
|
Tel. No.: |
+1-614-945-5100 |
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Fax No.: |
+1-614-945-5099 |
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KOJO Office : |
SAN DIEGO, CALIFORNIA, Welspun KOJO, 9654 Siempre viva road suite 1, San Diego, California 92154, USA |
|
Tel. No.: |
+1-619-205-5656 |
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Fax No.: |
+1-619-710-0952 |
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Website : |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. B. K. Goenka |
|
Designation : |
Chairman |
|
Date of
Birth/Age : |
15.08.1965 |
|
Date of
Appointment : |
17.01.1985 |
|
|
|
|
Name : |
Mr. Dadi B Engineer |
|
Designation : |
Director |
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|
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|
Name : |
Mr. A. K. Dasgupta |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Arun Todarwal |
|
Designation : |
(Nominee Dunearn Investments (Mauritius
Pte. Limited) |
|
|
|
|
Name : |
Mr. Ram Gopal Sharma |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. R. R. Mandawewala |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. M. L. Mittal |
|
Designation : |
Executive Director (Finance) |
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|
|
|
Name : |
Mr. Shailendra Nadkarni |
|
Designation : |
Nominee – IDBI Bank |
KEY EXECUTIVES
|
Name : |
Mr. Shashikant Thorat |
|
Designation : |
Company Secretary |
|
|
|
|
Audit Committee : |
·
Mr. Ram Gopal Sharma ·
Mr. Dadi B Engineer ·
Mr. A. K. Dasgupta ·
Mr. Arun Todarwal |
|
|
|
|
Remuneration Committee: |
·
Mr. A. K. Dasgupta ·
Mr. Dadi B Engineer ·
Mr. Arun Todarwal ·
Mr. Ram Gopal Sharma |
|
|
|
|
Share Transfer and Investor Grievance Committee : |
·
Mr. A. K. Dasgupta ·
Mr. B. K. Goenka ·
Mr. R. R. Mandawewala ·
Mr. M. L. Mittal |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holdings |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
254453 |
0.29 |
|
Bodies Corporate |
36804936 |
41.35 |
|
|
37059389 |
41.64 |
|
|
-- |
-- |
|
Total shareholding of Promoter and Promoter Group (A) |
37059389 |
41.64 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
Mutual Funds / UTI |
2820956 |
3.17 |
|
Financial Institutions
/ Banks |
18717522 |
21.03 |
|
Insurance Companies |
1573171 |
1.77 |
|
Foreign Institutional
Investors |
3094354 |
3.48 |
|
Sub Total |
26206003 |
29.44 |
|
|
|
|
|
|
4576510 |
5.14 |
|
|
|
|
|
|
8705256 |
9.78 |
|
|
3374648 |
3.79 |
|
|
9079463 |
10.20 |
|
|
9079463 |
10.20 |
|
|
25735877 |
28.92 |
|
Total Public shareholding (B) |
51941880 |
58.36 |
|
Total (A)+(B) |
89001269 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
Total (A)+(B)+(C) |
89001269 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionShareholding belonging to the category : "Promoter and Promoter
Group"
|
Category of Shareholders |
No. of Shares |
Percentage of
Holdings |
|
Radhika Goenka |
182,600 |
0.21 |
|
B K Goenka Jointly Deepali Goenka |
44,598 |
0.05 |
|
B K Goenka |
17,575 |
0.02 |
|
Deepali Goenka |
9,580 |
0.01 |
|
Rajesh R Mandawewala |
100 |
0.00 |
|
Welspun Mercantile Limited |
9,061,092 |
10.18 |
|
Welspun Fintrade Limited |
17,409,268 |
19.56 |
|
Welspun Wintex Limited |
7,179,577 |
8.07 |
|
Krishiraj Trading Limited |
2,653,360 |
2.98 |
|
Welspun Finance Limited |
493,094 |
0.55 |
|
Methodical Investment and Fin
Private Limited |
6,995 |
0.01 |
|
Welspun Syntex Limited |
1,350 |
0.00 |
|
Welspun Zucchi Textiles Limited |
100 |
0.00 |
|
Welspun Steel Limited |
100 |
0.00 |
|
Total |
37,059,389 |
41.64 |
Shareholding belonging to the category "Public" and holding
more than 1% of the Total No.of Shares
|
Category of Shareholders |
No. of Shares |
Percentage of
Holdings |
|
Dunearn Investment Mauritius Pte
Limited |
9,079,463 |
10.20 |
|
IFCI Limited |
6,034,069 |
6.78 |
|
IDBI Bank Limited |
4,385,551 |
4.93 |
|
Reliance Capital Trustee Company
Limited |
2,509,943 |
2.82 |
|
Bank of Baroda |
2,000,000 |
2.25 |
|
HSBC Global Investment Funds A/c HSBC
Global Investment Funds Mauritius Ltd |
1,690,657 |
1.90 |
|
State Bank of Bikaner And Jaipur |
1,700,000 |
1.91 |
|
Life Insurance Corporation of India |
1,523,340 |
1.71 |
|
Baytree Investments Mauritius Pte
Limited |
1,233,000 |
1.39 |
|
Central Bank of India |
1,095,665 |
1.23 |
|
United Bank of India |
1,000,000 |
1.12 |
|
Total |
32,251,688 |
36.24 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Home Textile. |
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
|
Cotton Terry Towels |
M.T. |
NA |
41500 |
|
Cotton Yarn |
M.T. |
NA |
33130 |
|
Bed Sheets |
000’ Mtrs |
NA |
45000 |
|
Rugs |
M.T. |
NA |
10151 |
GENERAL INFORMATION
|
No. of Employees : |
11546 (Approximately) |
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Bankers : |
·
State Bank of Bikaner and Jaipur ·
State Bank of India ·
Punjab National Bank ·
Andhra Bank ·
Canara Bank ·
Exim Bank Limited ·
Bank of India ·
State Bank of Patiala ·
Bank of Baroda ·
Oriental Bank of Commerce ·
IDBI Bank |
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Facilities : |
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|
|
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse and Company Chartered Accountants |
|
|
|
|
Associates : |
·
Welspun USA Inc., USA (WUSA) ·
Welspun Holdings Private Limited, Cyprus (WHPL) ·
Welspun Captive Power Generation Limited (WCPGL)
(with effect from January 27, 2011) |
|
|
·
|
|
Subsidiaries : |
·
Welspun AG (WAG) ·
Besa Developers and Infrastructure Private Limited
(BESA) ·
Welspun Mexico S.A. de C.V (WMEX) (Held through
WAG) |
|
|
·
|
|
Joint Venture : |
·
Welspun Zucchi Textiles Limited (WZTL) ·
MEP Cotton Limited (MCL) (upto January 31, 2010) |
|
|
|
|
Enterprises over
which Key Management Personnel or relatives of such personnel exercise
significant influence or control and with whom transactions have taken place
during the year : |
·
Welspun Global Brands Limited (WGBL) ·
Welspun Investments and Commercials Limited
(WICL) ·
Welspun Sorema Europe, S.A. (SOREMA) ·
Welspun UK Limited (WUKL) ·
Welspun Home Textiles Limited (WHTL) ·
Welspun Retail Limited (WRL) ·
Welspun Corp Limited (WCL) (Formerly known as
Gujarat Stahl ·
Rohren Limited (WGSRL)) ·
Welspun Power and Steel Limited (WPSL) ·
Welspun Syntex Limited (WSL) ·
Welspun Trading Limited (WTL) ·
Welspun Wintex Limited (WWL) ·
Welspun Mercantile Limited (WML) ·
Krishiraj Trading Limited (KTL) ·
Welspun Logistics Limited (WLL) ·
Welspun Realty Private Limited (WRPL) ·
Vipuna Trading Limited (VTL) ·
Mertz Securities Limited (MSL) ·
Welspun Polybuttons Limited (WPBL) ·
Wel-treat Enviro Management Organisation Limited
(WEMO) ·
Remi Metals Gujarat Limited (RMGL) ·
Welspun Maxsteel Limited (WMSL) ·
Welspun Projects Limited ( WPL) ·
Methodical Investment and Trading Company Private
Limited (MITCPL) ·
Welspun FinTrade Limited (WFTL) ·
Welspun Finance Limited (WFL) ·
Welspun Foundation for Health and Knowledge
(WFHK) ·
Welspun Urja Gujarat Private Limited (WUGPL) |
CAPITAL STRUCTURE
As on 31.08.2011
Authorised Capital : Rs.1300.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.940.013
Millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
125000000 |
Equity Shares |
Rs.10/- each |
Rs.1250.000 Millions |
|
500000 |
0% Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.50.000 Millions |
|
|
Total |
|
Rs.1300.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
88976269 |
Equity Shares |
Rs.10/- each |
Rs.889.760
Millions |
|
500000 |
0% Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.50.000
Millions |
|
|
Total |
|
Rs.939.760 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
939.760 |
780.900 |
780.900 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5682.690 |
5397.960 |
4821.370 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6622.450 |
6178.860 |
5602.270 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
16371.680 |
16163.590 |
16089.090 |
|
|
2] Unsecured Loans |
834.500 |
417.380 |
500.030 |
|
|
TOTAL BORROWING |
17206.180 |
16580.970 |
16589.120 |
|
|
DEFERRED TAX LIABILITIES |
1878.760 |
1562.090 |
1039.830 |
|
|
|
|
|
|
|
|
TOTAL |
25707.390 |
24321.920 |
23231.220 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
15288.460 |
15068.530 |
14889.770 |
|
|
Capital work-in-progress |
830.030 |
239.820 |
884.040 |
|
|
Incidental Expenditure Pending Capitalisation/ Allocation |
0.000 |
0.000 |
54.050 |
|
|
|
|
|
|
|
|
INVESTMENT |
1065.880 |
929.440 |
1046.710 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4527.320
|
3544.270
|
2105.630 |
|
|
Sundry Debtors |
1330.430
|
1733.530
|
1523.910 |
|
|
Cash & Bank Balances |
1452.720
|
830.120
|
888.130 |
|
|
Loans & Advances and Other Current Assets |
3766.770
|
4035.040
|
3705.660 |
|
Total
Current Assets |
11077.240
|
10142.960
|
8223.330 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1507.760 |
1773.050 |
1081.290 |
|
|
Other Current Liabilities |
934.110
|
139.180
|
740.350 |
|
|
Provisions |
112.350
|
146.600
|
45.040 |
|
Total
Current Liabilities |
2554.220
|
2058.830
|
1866.680 |
|
|
Net Current Assets |
8523.020
|
8084.130
|
6356.650 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
25707.390 |
24321.920 |
23231.220 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
19907.620 |
18235.410 |
13444.400 |
|
|
|
Other Income |
726.200 |
577.300 |
171.600 |
|
|
|
TOTAL |
20633.820 |
18812.710 |
13616.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials and Manufacturing Expenses |
15595.890 |
13378.730 |
9466.050 |
|
|
|
Employees' Remuneration and Benefits |
1478.580 |
1163.630 |
1035.180 |
|
|
|
Selling, Administration and Other Expenses |
609.950 |
632.490 |
975.980 |
|
|
|
TOTAL |
17684.420 |
15174.850 |
11477.210 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
2949.400 |
3637.860 |
2138.790 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
785.600 |
870.050 |
921.110 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
2163.800 |
2767.810 |
1217.680 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
1135.130 |
1063.250 |
952.980 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
1028.670 |
1704.560 |
264.700 |
|
|
|
|
|
|
|
|
|
|
Exceptional Item |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
Profit/ (Loss) Before Taxation From Ordinary Activities |
1028.670 |
1704.560 |
264.700 |
|
|
|
|
|
|
|
|
|
|
Profit/ (Loss) Before Taxation From Ordinary Activities And From
Continuing Operations |
1028.670 |
1704.560 |
(50.470) |
|
|
|
|
|
|
|
|
|
|
Provision For
Taxation |
|
|
|
|
|
|
Current Tax |
202.020 |
288.930 |
27.100 |
|
|
Less |
Minimum Alternative Tax Credit Availed |
(201.210) |
(288.930) |
27.100 |
|
|
|
Excess Provision for Tax in Earlier Years |
4.600 |
(16.760) |
0.000 |
|
|
|
Reversal of Minimum Alternative Tax Credit Availed in Earlier Year |
27.400 |
49.000 |
0.000 |
|
|
|
Deferred Tax |
316.670 |
522.260 |
(60.400) |
|
|
|
Fringe Benefit Tax |
|
0.000 |
5.990 |
|
|
|
Profit After Taxation From Ordinary Activities And From Continuing
Operations |
679.190 |
1150.060 |
3.940 |
|
|
Less |
Extraordinary Item |
1677.030 |
0.000 |
7.330 |
|
|
|
Profit/ (Loss) After Taxation From Continuing Operations (A) |
(997.840) |
1150.060 |
(3.390) |
|
|
|
|
|
|
|
|
|
|
Profit Before Taxation From Ordinary Activities And From Discontinuing
Operations |
0.000 |
0.000 |
315.170 |
|
|
|
Fringe Benefit Tax |
0.000 |
0.000 |
2.750 |
|
|
|
Profit After Taxation From Ordinary Activities And From Discontinuing
Operations (B) |
0.000 |
0.000 |
312.420 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (A+B) |
(997.840) |
1150.060 |
309.030 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3046.180 |
2001.650 |
1692.620 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Equity Shareholders |
0.000 |
73.090 |
0.000 |
|
|
|
Preference Shareholders |
0.000 |
17.410 |
0.000 |
|
|
|
Final Dividend for Previous Year |
15.600 |
0.000 |
0.000 |
|
|
|
Tax on Final Dividend |
2.600 |
15.030 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
2030.140 |
3046.180 |
2001.650 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
8.690 |
1044.380 |
8321.120 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
802.450 |
1801.810 |
544.830 |
|
|
|
Stores & Spares and Dyes & Chemicals |
175.480 |
143.790 |
203.870 |
|
|
|
Capital Goods |
1248.160 |
149.020 |
1003.110 |
|
|
|
Packing Material |
13.150 |
114.260 |
12.850 |
|
|
|
Others |
8.690 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
2247.930 |
2208.880 |
1764.660 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic and Diluted before Extraordinary Item |
7.71 |
15.73 |
4.33 |
|
|
|
Basic and Diluted after Extraordinary Item |
7.66 |
15.73 |
4.23 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
30.09.2011 |
|
Type |
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
|
5418.800 |
6856.080 |
|
Total Expenditure |
|
|
4557.490 |
5823.300 |
|
PBIDT (Excl OI) |
|
|
861.310 |
1032.780 |
|
Other Income |
|
|
41.700 |
44.390 |
|
Operating Profit |
|
|
903.010 |
1077.160 |
|
Interest |
|
|
290.440 |
289.350 |
|
Exceptional Items |
|
|
0.000 |
0.000 |
|
PBDT |
|
|
612.570 |
787.820 |
|
Depreciation |
|
|
291.040 |
295.710 |
|
Profit Before Tax |
|
|
321.530 |
492.110 |
|
Tax |
|
|
57.380 |
166.720 |
|
Provisions and contingencies |
|
|
0.000 |
0.000 |
|
Profit After Tax |
|
|
325.380 |
166.720 |
|
Extraordinary Items |
|
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
0.000 |
|
Other Adjustments |
|
|
0.000 |
0.000 |
|
Net Profit |
|
|
325.380 |
166.720 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.83
|
6.11
|
2.27 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.16
|
9.35
|
1.97 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.90
|
6.76
|
1.15 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.28
|
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.98
|
3.02
|
3.29 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.34
|
4.93
|
4.41 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
(Rs.
In Millions)
|
Particulars |
As
on 31.03.2011 |
As
on 31.03.2010 |
As
on 31.03.2009 |
|
Total Outstanding Dues of Micro Enterprises and Small Enterprises |
6.690 |
1.070 |
0.790 |
|
Total Outstanding Dues of Creditors other than Micro Enterprises and
Small Enterprises |
1501.070 |
1771.980 |
1080.500 |
|
Total |
1507.760 |
1773.050 |
1081.290 |
FINANCIAL RESULTS
During the year under report, the Company registered a growth of 9.17% in
Turnover. Further, the Company witnessed a fall of 18.92% in PBIDT, 39.65% in
PBT, and 186.76% in PAT over those in the previous year. The financial year
2010-11 was turbulent year for their Company. Steep increase in prices of
cotton severely affected performance of global textile industry and this has
resulted in reduced margins for their Company.
Company Overview
Subject continues to maintain its leading manufacturer status for a wide
range of home textile products. WIL, through Welspun Global Brands Limited
(WGBL), is a strategic vendor to some of the top global retailers. Its
manufacturing, sales and distribution network is spread over 38 countries.
Worldwide, the ranking of WIL amongst the top 3 manufacturers of terry towels,
having capacities of 41,500 MT in Terry Towels, 10,151 MT in Rugs and 45 mn
mtrs in Bed Sheets.
WIL's is selling its products largely through Welspun Global Brands
Limited (WGBL) and Welspun Retail Limited (WRL). WGBL and WRL are the marketing
and distribution arm of WIL in the international and the domestic markets
respectively. WGBL is operating as the international sales and marketing
intermediary of WIL. The major customers (through WGBL) in the international
market include major retail chains, specialty stores and fashion stores like
Target, WalMart, Bed Bath and Beyond, J C Penney, Tesco, IKEA and many others.
WRL caters to the domestic market through a chain of company-owned and
franchisee retail-outlets and other channels like Institutional, B2B and
Distribution. WRL provides a one stop home solution for evolving customers with
its brands ‘Welhome’ and ‘Spaces- Home and Beyond’.
Global Overview
Economic
Environment is turning positive in important markets
US economy in 2010, overcame the recessionary pressures, which it was
facing in the previous year. Its GDP grew at a healthy 2.8% in 2010 while the
world economy grew at 3.9%. Euro area (EU17) GDP grew at 1.7% with a projection
of 1.4% growth for 2011. Developing countries GDP grew at 7% with South Asia
growing at a whopping 8.7%. Comparative retail sales in the US, UK and Eurozone
have shown strong sustainability with most months showing a positive growth
year-on-year. Labour costs also saw an upward correction in India, China,
Brazil and most other countries earlier recognized for their availability of
cheap labour.
World Textile Market projected to show growth in the coming years
The global textiles and apparels trade is currently estimated at about
US$ 500 billion. The global market for textile trade includes yarns, fabrics,
apparel and non-apparel finished products. Welspun estimates that the global
home textiles market is around US$ 25 billion, amounting to about 5% of the
total global textile market. The home textiles market includes:
1. Household textiles: Rugs, bed linen, table linen, bathroom and
kitchen linen, etc.
2. Furnishing textiles: Curtains, bedspreads and other furnishing
articles for home interiors, etc.
Post the expiry of the Agreement on Textiles and Clothing in 2005,
India's share of textile imports into the EU and the US has significantly
increased. India is consistently among the top 3 leading suppliers of bed and
bath linen in the EU. India along with China and Pakistan is amongst the top 3
suppliers of textile globally.
Global Demand -
Supply Scenario
While starting at the end of second quarter of 2010-11 the cotton crisis
spread across the globe and resulted in high prices of cotton breaking all
previously attained records around the world. The crisis has been attributed to
various reasons including floods in Pakistan, poor crop in China, export
restrictions on cotton and yarn, growing domestic consumption in China, along
with the fact that lesser cotton was grown this year due to competition from
other crops. However, retail sales in most of the markets went on to gain
momentum. Manufacturers started de-specking their offerings, introducing new
technologies to offer better consumer value on one hand and reducing the costs
on the other hand. Cotton blends have seen resurgence during the year and
facilitated introduction of innovative products in the market. The largest
consumers for home textile continue to be dominated from the markets of US,
Europe and Japan. Over the years, consumer’s wallet share for textiles has been
declining leading to great demand in the value segment and relatively lower
demand for premium segment. In the last quarter of FY10, they observed a
cautious optimism in the consumer demand which has grown at a gradual pace
across the geographies. The Industry is expected to grow at a CAGR of 14% over
the next 4 years to reach approximately US $ 850 billion by 2014. The United
States of America, India, China and Pakistan together account for 81% of the
total home textiles imports. India is the largest supplier of terry towels and
sheets in the United States at 30% and 33% of total imports respectively.
Overview of the
Indian Economy
Economic
Indicators
India’s GDP registered a growth of 8.5% during 2010-11, contributed
mainly by manufacturing and services sectors. GDP growth estimates for 2011-12
provided by the Finance ministry indicated that the economy will better its
performance and touch the 9% mark. Overall inflation rate for 2010-11 stood at
9.4% while Industrial production trend showed some weakness, registering a
growth of 7.8% in 2010-11 against a growth of 10% seen during 2009-10. Core
sectors recorded an overall growth of 5.7% during 2010-11 which is better than
5.4% growth seen in 2009-10. Exports grew phenomenally by 35% during the year,
while imports increased by 21.2%. Strong tax revenues, 3G/BWA spectrum windfall
and moderation in growth of overall expenditure have helped the Government to
rein in fiscal deficit in 2010-11.
Industry Structure
The industrial restructuring process has led to significant changes in
the location of production activities in the home textiles sector. In the last
two decades, many Western European home textiles companies have moved
manufacturing activities to countries in Eastern Europe or to non-European
countries, where costs of production are lower. Home textile manufacturers in
developed economies have responded to pressures by continuing to pursue the
strategy of:
·
Relocating production or sourcing to Low Cost Countries;
and
·
Development of value-added products and higher
value to customers through product innovation and cost management
Major retailers have integrated their supply chain through production facilities
or sourcing tie-ups. This results in most economic cost and best quality
products being offered to customers across the globe. Besides, it also brings
in multidimensional implications like lower cost, value for money, innovation
in product and services, supply chain efficiency, environment awareness and
stiff conditions to be complied for production facilities in line with global
standard. The buyers are also required to monitor working conditions and
manufacturing practices in all parts of the value chain, including those at
subcontracting companies.
Some trends that influence the production for household and furnishing
textiles in the developed markets includes:
Availability of Raw Material: Cotton saw its most unpredictable year
ever; with the benchmark index reaching as high as $2.5/lb from its usual
$0.8/lb in the previous year. Manufacturers were caught unaware with this
massive price rise and their inability to pass the entire cost increase to end
consumers. Product innovation and use of alternative fibers have been the most
prominent ways to deliver better value to customers in this high cost
environment.
Increasing Internationalization: Textile retail companies have enhanced
their sourcing activities on a global scale at a rapid pace and their products
are available in many developed markets.
High Degree Value Chain Integration: Several producers have opened their
own chain(s) and many suppliers have started a close and long-term co-operation
with distribution channels, thereby increasing the entry barriers for new
suppliers. Despite this market has witnessed huge amount of sales erosion and
at the same time in many of the established players have also ceased to exist.
Consolidation: The industry has witnessed numerous mergers and acquisitions,
bankruptcies, scaling down of operations as well as market capitalization
getting eroded for top players across the industry and the emergence of newer
players with cost advantages.
Innovation and Brands: Several manufacturers of home textiles have
brought innovative products and designs for each market and have also resorted
to private labels/ newer brands and established brands have changed hands at
much lower royalty terms.
Market Structure
Consumers
In the recent years the customer has clearly indicated preference for
value for money product with better quality and superior design preferences. As
majority of purchases in the home textiles segment are made for replacement
purposes and are also discretionary in nature. This consumption patterns also
varies substantially by households across geographies due to differences in
culture, traditions and tastes. Consumer preferences and economic environment
have resulted in private label and textile discounters gaining ground and the
super and hyper markets have been successful in pushing unknown or fancy brand
names as well. Some of the emerging markets have also witnessed an interesting
trend in consumption pattern as increasing per capita income is resulting in
bigger aspirations and big brand purchases. Internationally renowned brands
have initiated market presence in these markets and are looking forward to
meaningful growth. In any case the home markets for bigger brands in the
developed markets are not growing at a faster pace whereas newer markets are
providing opportunity to grow.
Distribution
channels
Importers purchase products from manufacturers abroad and they estimate
that they generally add a 30-40% mark-up to cover commissions, credit risk,
after-sales service and the cost of carrying a local inventory to meet small
orders. In contrast to the agent, this importer holds his own stocks at his own
risk.
Wholesalers cater to specialist shops as well as to department stores
and home shopping companies. The wholesaler also holds stocks at own risk. This
non-importing distributor purchases from domestic manufacturers and importers.
The mark-up of wholesalers, Welspun estimates the mark-ups of wholesalers are
approximately 20-30%. Large retail companies are increasingly purchasing from
abroad, thereby bypassing these intermediaries.
Purchasing agents widely used by retailers and wholesalers due to their
network and knowledge of foreign markets. They do not carry their own stock but
purchase solely on request from their customers.
Domestic manufacturers either import the raw material required for the
finishing operations or are primarily manufacturing products which are freight
unfriendly or difficult to manage with long supply chains. These manufacturers
have the advantage of proximity to the source of raw material as well as the
customer.
Sale agents independent intermediaries between the (foreign)
manufacturer and the retailer or retail organization, receiving a commission
from the former. The sales agents do not take title to the merchandise, they
are responsible for presenting samples to potential clients, obtaining orders,
and forwarding these to the exporters.
Retailers constitute the final stage before products reach the consumer.
A criterion for dividing the market is the composition of the total assortment:
wholly or partly specialized in selling home textiles.
Indian Textiles Industry
The Indian textile industry contributes about 14 per cent to industrial
production, 4 per cent to the country's gross domestic product (GDP) and 17 per
cent to the country’s export earnings. It provides direct employment to over 35
million people and is the second largest provider of employment after
agriculture. The industry is expected to grow from the present US$ 70 billion
to US$ 220 billion by 2020, according to Mr. Dayanidhi Maran, Union Minister of
Textiles. In order to capture the additional market of US$ 150 Bn, investments
to the tune of US$ 68 Bn across the textile supply chain will be required.
OUTLOOK
The Textile business is passing through a tough phase due to increase in
raw material cost , higher oil price , high inflation and higher wage cost,
volatile forex rates and limited ability to pass on price rise due competitive
business environment.
The opportunity lies in building efficiency in operating processes,
better control over input costs, bring design and innovation in the product
portfolio and providing complete solution to the customers. The markets in the
developed countries are shaping up well despite some challenges in some of the
countries and the potential for domestic Indian market continues remain loss.
They believe the home textile business will see increasing share in the
organized sector and better capacity utilization and sweating of assets will
deliver better profitability.
However during the current fiscal the cotton prices are now showing the
downward trend and settling at a sustainable level, while the company is
showing an upward curve in order booking for its products. With such
encouraging twin effects the future prospects looks promising.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER
2011
(Rs.
In Millions)
|
Particulars |
Quarter ended |
Half year ended |
|
|
30.09.2011 (Unaudited) |
30.09.2011 (Unaudited) |
|
Net Sales/ Income from operations |
6687.653 |
11989.779 |
|
Other Operating Income |
168.422 |
285.095 |
|
Net Sales /
Income from operations |
6856.075 |
12274.874 |
|
Expenditure |
|
|
|
Increase/ Decrease in stock in trade and work-in –progress |
342.128 |
369.545 |
|
Consumption of Raw Materials |
3129.158 |
5933.590 |
|
Purchase of Traded Goods |
8.093 |
11.698 |
|
Power and Fuel |
568.203 |
1049.389 |
|
Employees Cost |
408.186 |
780.436 |
|
Depreciation |
295.712 |
586.754 |
|
Other Expenditure |
1228.123 |
2143.778 |
|
Total |
5979.603 |
10875.190 |
|
Profit from operations before unrealized exchange (Gain)/ Loss, Other
Income, Interest and Exceptional Item |
876.472 |
1399.684 |
|
Unrealised Exchange (Gain)/ Loss – Net |
139.409 |
92.347 |
|
Profit from operations before Other Income, Interest and Exceptional
Item |
737.063 |
1307.337 |
|
Other Income |
44.389 |
86.093 |
|
Profit Before Interest and Exceptional Item |
781.452 |
1393.430 |
|
Interest (Net) |
289.347 |
579.788 |
|
Profit After Interest but before Exceptional Item |
492.105 |
813.642 |
|
Exceptional Item |
0.000 |
0.000 |
|
Profit from ordinary Activities Before Tax |
492.105 |
813.642 |
|
Tax Expenses |
166.722 |
224.105 |
|
Net Profit from ordinary Activities after tax |
325.383 |
589.537 |
|
Extraordinary Items (Net of tax expenses) |
91.954 |
91.954 |
|
Net Profit for the
period |
233.429 |
497.583 |
|
Paid-up Equity Share Capital (Face Value Rs.10/- each) |
890.013 |
890.013 |
|
Reserve (Excluding Revaluation Reserve) |
-- |
-- |
|
Earning per share (EPS) |
|
|
|
a) Basic before extraordinary items |
3.65* |
6.62* |
|
b) Diluted before extraordinary items |
3.64* |
6.60* |
|
c) Basic after Extraordinary items |
2.62* |
5.59* |
|
d) Diluted after Extraordinary items |
2.61* |
5.57* |
|
Public Shareholding |
|
|
|
- Number of Shares |
51941880 |
51941880 |
|
- Percentage of Shareholding |
58% |
58% |
|
|
|
|
|
Promoters and promoter group shareholding |
|
|
|
a) Pledged/ Encumbered |
|
|
|
- Number of Shares |
-- |
-- |
|
- Percentage of Shares (% to total shareholding of promoters and
promoter group) |
-- |
-- |
|
- Percentage of Share ( % to the total share capital of the company) |
-- |
-- |
|
b) Non Encumbered |
|
|
|
- Number of Shares |
37059389 |
37059389 |
|
- Percentage of Shares (% to total shareholding of promoters and
promoter group) |
100.00 |
100.00 |
|
- Percentage of Share ( % to the total share capital of the company) |
42% |
42% |
* Not Annualised
Notes:
1.
The above financial results were reviewed by the Audit
Committee and were thereafter approved by the Board of Directors at its meeting
held on November 8, 2011.
2.
Extraordinary items for the quarter ended September
30, 2011 pertains to incremental provision for doubtful loans given to Welspun
AG, a wholly owned subsidiary, arising out of the restatement at the period end
of the foreign currency balance which was fully provided as at March 31, 2011.
The corresponding gain on restatement is included in Unrealised Exchange
(Gain)/ Loss - Net
3.
The auditors’ report for the year-ended March 31,
2011 and the limited review report for the quarter ended June 30, 2011 were
qualified for non-determination of valuation allowance in respect of accounts
receivable due from Welspun Retail Limited (“WRL”), a group company. During the
quarter ended September 30, 2011, the Company has received the overdue
receivables from WRL. Accordingly, as the matter has been resolved, the limited
review report for the quarter ended September 30, 2011 has not been qualified
in this respect.
4.
The Company operates in only primary business
segment. Hence, information relating to primary segments has not been
furnished.
5.
Information relating to Secondary Geographical
Segments is as under:
|
Particulars |
Quarter ended |
Half year ended |
|
30.09.2011 (Unaudited) |
30.09.2011 (Unaudited) |
|
|
India |
|
|
|
External Revenue |
6687.653 |
11989.779 |
|
Carrying Amount
of Segment Assets |
29797.329 |
29797.329 |
|
Capital
Expenditure |
793.950 |
1206.168 |
|
Outside India |
|
|
|
External Revenue |
-- |
-- |
|
Carrying Amount
of Segment Assets |
272.731 |
272.731 |
|
Capital
Expenditure |
-- |
-- |
|
Total |
|
|
|
External Revenue |
6687.653 |
11989.779 |
|
Carrying Amount
of Segment Assets |
30070.060 |
30070.060 |
|
Capital
Expenditure |
793.950 |
1206.168 |
6.
Disclosure of Balance Sheet items as per Clause 41
of the Listing Agreement
|
Particulars |
As at |
|
30.09.2011 (Unaudited) |
|
|
Shareholders'
Funds |
|
|
(a) Capital |
940.013 |
|
(b) Reserves and
Surplus |
6191.590 |
|
Loan Funds |
17803.360 |
|
Deferred Tax
Liability (Net) |
210.284 |
|
Total |
27037.787 |
|
|
|
|
Fixed Assets |
16729.160 |
|
Investments |
1135.321 |
|
Current Assets,
Loans and Advances |
|
|
(a) Inventories |
3474.627 |
|
(b) Sundry
Debtors |
2079.948 |
|
(c) Cash and Bank
Balances |
2353.474 |
|
(d) Other
Current Assets |
560.375 |
|
(e) Loans and
Advances |
3737.155 |
|
Less: Current
Liabilities and Provisions |
|
|
(a) Liabilities |
2866.428 |
|
(b) Provisions |
165.845 |
|
Total |
27037.787 |
7.
Information on investors complaints pursuant to
Clause 41 of the Listing Agreement for the quarter ended September 30, 2011
|
|
Opening Balance |
Additions |
Disposals |
Closing Balance |
|
Number of
Complaints |
-- |
63 |
63 |
-- |
8.
Prior period comparatives have been reclassified to
conform with the current period's presentation, wherever applicable.
CONTINGENT LIABILITIES
|
PARTICULARS |
As
on 31.03.2011 |
|
Excise, Customs and Service Tax |
|
|
Alleged improper
re-credit of duty paid through PLA under Notification no. 39/2001 –CE dated
July 31, 2001 in respect of goods sold from the factory during the period
from February 2006 to
September 2007. The Assistant Commissioner of Central Excise passed the order
against the Company. The Company paid pre-deposit of Rs. 100 million as
required by Central Excise authorities and obtained stay on payment of
remaining amount. The case was
remanded back to the lower authority to consider the claim of the Company by
Commissioner Appeals. Further,
separate show cause notice had been issued by Commissioner of Central Excise
seeking recovery of allegedly improper re-credit of duty along with interest
and penalty. The Company is in the process of filing reply against this show
cause notice. The case is remanded back by Tribunal to lower authority and
directed them for reassessments of liability vide order dated March 29, 2011. |
318.580 |
|
Alleged improper
grant of refund for duty paid through PLA by Assistant Commissioner under Rule
18 of Central Excise Rules during the period from September 2005 to July 2006. The
Commissioner (Appeals) of Customs and Central Excise had passed the order
against the Company. The Company has filed Revision Application with the
Joint Secretary, Ministry of Finance, Department of Revenue. |
69.570 |
|
Alleged improper
Cenvat credit availed and non-payment of excise duty under Notification No.
214/86 – CE dated 25-03-1986, on furnace oil used for manufacturing of goods on
job work during the period April 2002 to May 2005. The Company has filed its
reply against the show cause
notices issued by Joint Commissioner and Commissioner of Customs and Central
Excise, Daman. |
3.670 |
|
Alleged improper
abatement of service tax on payments made to Goods Transport Agency under
Notification No. 32/04-ST dated December 31, 2004. The Company has filed its reply against
the show cause notice issued by the Commissioner of Central Excise and
Customs, Daman. |
50.460 |
|
Alleged availment of service tax credit based on improper documents.
The Company has received an order from Commissioner, Central Excise and
Customs, Daman demanding the amount of duty, interest and penalty. The
Company filed an appeal against the order with Commissioner of Central Excise
and Customs (Appeals), Daman |
-- |
|
Alleged improper
Cenvat credit availed on “racks” classified as capital goods, which are used
for storage of finished goods. The Company received an order from Additional
Commissioner, Central Excise and Customs; Daman dated 11.02.2009 demanding
the amount of duty, interest and penalty. The Company paid Rs. 0.69 million
under protest and filed an appeal against the order with Commissioner of
Central Excise and Customs (Appeals), Daman in March 2009. The Company has
obtained stay order with respect to the payment of duty. |
2.000 |
|
Alleged improper
availment of Cenvat credit on service tax paid on insurance premium paid for
availing insurance services that are not used in or in relation to
manufacture of final products. During the year Commissioner of Central Excise
and Customs (Appeals), Daman decided this matter in favour of the Company. |
-- |
|
Alleged
non-reversal of cenvat credit contained in raw material stock, raw material
in process and raw material contained in finished stock on exit from cenvat
scheme. The Commissioner of Central Excise issued a show cause notice seeking
recovery of the nonreversed amount. During the year, the Company has received
favorable order with respect to part of the amount in dispute. The Company
has filed an appeal before Commissioner of Central Excise and Customs
(Appeals) for the balance amount disallowed. |
10.520 |
|
Alleged
erroneous sanction of refund of service tax by Assistant Commissioner of Central
Excise. The Deputy Commissioner of Central Excise issued a show cause notice
regarding recovery of the refund erroneously sanctioned. The Company has
submitted its reply to the Deputy Commissioner of Central Excise. |
3.040 |
|
Alleged improper
availment of Cenvat credit on service tax paid on sales commission. The Company has
received a show-cause notice from Assistant Commissioner of Central Excise and Customs,
Vapi against which a reply has been filed by the Company. |
20.240 |
|
Alleged improper
availment of Cenvat credit on service tax on outward freight of
transportation for export clearance. The Company has received a show-cause
notice from Additional Commissioner Central Excise Custom and Service Tax
(Daman) against which reply has been submitted to Commissioner of Central
Excise. |
7.490 |
|
Alleged improper
availment of Cenvat credit on service tax on commission on sales. The Company
has submitted its reply for the show cause notice received to Commissioner of
Central Excise. |
0.040 |
|
Alleged
misinterpretation of Notification No 4/ 2006-2007 under the Customs Act for
which a reply to the show causes notice has been submitted. |
1.240 |
|
Alleged
availment of Cenvat credit on service tax. The Company has received an order
from Commissioner, Central Excise and Customs, demanding the amount of duty,
interest and penalty. The Company has filed an appeal against the order with
Commissioner of Central Excise and Customs (Appeals). |
0.200 |
|
Alleged dual
availment of duty drawback and DEPB scheme simultaneously. Appeal of Central
Excise department was rejected by Central Excise and Customs (Appeals). The
Central Excise Department has filed appeal with Revisionary Authority, New
Delhi. |
1.140 |
|
Alleged improper
payment of service tax on services received and used in export of goods and
applied for refund under 17/2009-ST without taking credit of the same. The
department has rejected the refund claims made by the Company and issued a
show cause notice dated March 7, 2011. The Company has filed its reply
against the show cause notice to Deputy Commissioner, Central Excise
Division, Gandhidham. |
0.350 |
|
|
|
|
Alleged
availment by the Company re-credit under 39/2001-CE to the extent of balance
of cenvat credit lying as at 31-03-2005, which was rejected by the
department. The show cause notice is being contested by the Company with
Additional Commissioner of Central Excise and Service tax on the grounds of
devoid of merits. |
3.740 |
|
Stamp Duty : |
|
|
Disputed stamp
duty liability on De-merger Scheme. The Company paid Rs. 1.74 million under
protest. |
4.460 |
|
Sales Tax : |
|
|
The Deputy
Commissioner of Sales Tax has issued an assessment order for the financial year
2003 to 2004 and raised the demand on purchase of Furnace oil during the year
2003 to 2004 in respect of purchases made by the Company at a concessional
rate of tax. The Company had
deposited Rs. 0.09 million under protest and has filed an appeal with the
Joint Commissioner of Sales Tax, Vadodra. |
1.280 |
|
The Deputy
Commissioner of Sales Tax has issued an assessment order for the financial
year 2004 to 2005 and raised the demand on purchase of Furnace oil during the
year 2004 to 2005 in respect of purchases made by the Company at a
concessional rate of tax. The Company has filed an appeal with the Joint
Commissioner of Sales Tax, Vadodra. |
7.870 |
|
The Assistant
Commissioner of Sales Tax has passed an order vide No. 3442 dated February
24, 2005 on purchase of Furnace oil during the year 2000-2001 at a
concessional rate of tax. Deputy Commissioner Sales Tax re-assessed and
passed revised order vide No. 3181/83 on December 5, 2005 increasing the
original demand. The Tribunal has granted stay order for this matter |
1.460 |
|
Others: |
|
|
Claims against the Company not acknowledged as debts |
7.850 |
|
Bills discounted in respect of export debtors |
-- |
FIXED ASSETS
·
Freehold Land
·
Buildings
·
Leasehold Improvements
·
Plant and Machinery
·
Vehicles
·
Furniture and Fixtures
·
Office Equipments
·
Computer
·
Computer Software
·
Goodwill
BUSINESS DESCRIPTION
Subject manufactures a range of home textile products. The Company’s principal products include terry towels, cotton bed sheet and cotton yarn. During the fiscal year ended March 31, 2011 (fiscal 2011), it produced 39,416 million tons of terry towels, and 5,079 million tons of rugs. The Company has manufacturing capacities of 41,500 million tons in terry towels, 10,151 million tons in Rugs and 45 million meters in bed sheets. WIL, through Welspun Global Brands Limited (WGBL), is a strategic vendor to the global retailers. Its manufacturing, sales and distribution network is spread over 38 countries. WIL is selling its products through Welspun Global Brands Limited (WGBL) and Welspun Retail Limited (WRL). WGBL and WRL are the marketing and distribution arm of WIL in the international and the domestic markets, respectively. Customers (through WGBL) in the international market include retail chains, specialty stores and fashion stores. For the fiscal year ended 31 March 2010, Welspun India Limited's revenues increased 20% to RS20.77M. Net income from continuing operations totaled RS1.59B vs. a loss of RS758.2M. Revenues reflect an increase in income from net sales and higher other operating income. Net income reflects a decrease in employee's cost, a fall in miscellaneous expenses, an increase in interest income and lesser interest expenses.
BOARD OF DIRECTORS
Mr. Rajesh R. Mandawewala
(Managing Director, Non-Independent Executive Director)
Mr. Rajesh R. Mandawewala is Managing Director, Non-Independent Executive Director of subject. He was Non-Executive Non-Independent Director of the Company. He joined the board of Directors in 1989. He is a Chartered Accountant.
PRESS RELEASES
Clarification
- No Fire in Welspun Corp Limited or Welspun India Limited
India, October 24 -- Welspun India Limited has informed BSE that there was a small fire on the night of October 22, 2011 in the coal conveyor belt of Welspun Steel Limited due to a spark in coal at its Gujarat factory which is a separate factory and not a part of Welspun India Limited. The fire was doused immediately. There is no effect of this fire on the operations and on the Plant and Machinery of either Welspun Corp Limited or Welspun India Limited and they are fully operational. Even the Welspun Steel Limited’s factory is also operational except that certain parts of the affected machine are under replacement.
Wockhardt
Foundation and Welspun join hands to launch Mobile Medical Unit in Mumbai
India,
Oct. 17 -- Wockhardt Foundation has entered into a strategic alliance with
Welspun to jointly launch Mobile Health Reach, a healthcare programme in
Mumbai. Flagging off the mobile healthcare unit launched the initiative in
Lower Parel, Mumbai. Dipali Goenka, Director, Welspun India Limited announced
the official launch of Mobile Medical Unit during the flag-off ceremony; she
was also accompanied by Ms. Mangala Tambe, DGM-CSR, Welspun India Limited and
Mr. Vijay Batna-ED, CEO Welspun Max Steel India Limited.
Wockhardt
Foundation through its Mobile Health Reach aims to provide free primary
healthcare at the doorstep of the poor families in slum areas of urban India
through a pan-India network of mobile healthcare units. Through its Mobile
Health Reach healthcare outreach programme in Mumbai, Wockhardt Foundation and
Welspun aim to offer free primary healthcare aid to nearly 22,500 patients
annually in this area.
Commenting
on the partnership with Welspun, Dr. Huzaifa Khorakiwala, CEO and Inspiration,
Wockhardt Foundation said, "Having successfully launched MMUs across
various slums of Mumbai like Bharatnagar, Dharavi, Madraswadi, Nargis Dutt
Nagar and Antop Hill, Malad, Dombivali, Kurla, Santacruz Golibhar, Bhayander
and other areas in Maharashtra, it has now become imminent that we put the
programme's pan-India expansion on a fast-track. Our partnership with Welpsun
provides us a like-minded partner to aid in the expansion of Mobile Health
Reach in Mumbai. Through this strategic collaboration, we are expanding the
programme in slums of Mumbai. Over the next one year we aim to further expand
this programme across other States of the country."
Dipali
Goenka, Director, Welspun India Limited says on the occasion, "We at
Welspun are delighted to initiate the Mobile Health Van project for Mumbai.
Through this project we strive to enhance the medical facilities and in turn
improve the quality of life amongst the underprivileged families. Welspun as a
responsible corporate urge to have concrete and positive contribution towards
the sustainable development."
Notes
to Editor
About
Wockhardt Foundation:
Wockhardt
Foundation is a national, secular, non-profit organization engaged in human
welfare and social service activities. It is headed by its inspiration - the
noble philanthropist, inspiring thinker, voracious writer, and spellbinding
orator Dr. Huzaifa Khorakiwala. Wockhardt Foundation is a three-part movement
of human values, social awakening and social development carried on by its
Warriors. The Warriors take the following pledge "I am humbled to be a
warrior. I will work towards the upliftment of the poor, weak, and needy".
Welspun
India fixes book closure for AGM
India, August 12 -- Welspun India has informed that the register of members and share transfer books of the company will remain closed from August 24, 2011 to August 30, 2011 for the purpose of Annual General Meeting (AGM) of the company. The above information is part of the company's filing submitted to the BSE.
Welspun
India Posts 69.83% Rise in June Quarter Net Profit
NEW
DELHI, August 8 Asia Pulse - Diversified business group Welspun India (BSE:514162)
has posted a 69.83 per cent increase in its net profit to Rs.264.100 Millions
for the quarter ended June 30, 2011 as against the same period last fiscal
year.
The
company had a net profit of Rs.155.500 Millions for the quarter ended June 30,
2010, Welspun India said in a filing to the Bombay Stock Exchange.
During
the reported quarter, the firm's net sales increased by 17.86 per cent to
Rs.5302.100 Millions from Rs.4498.500 Millions posted in the corresponding
quarter last fiscal year.
Welspun
India has interest in various businesses including line pipes, home textiles,
infrastructure, energy and oil and gas.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions between
a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.81 |
|
|
1 |
Rs.82.00 |
|
Euro |
1 |
Rs.68.81 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.