MIRA INFORM REPORT

Report Date :

02.11.2011

IDENTIFICATION DETAILS

Name :	WELSPUN CORP LIMITED (w.e.f. 27.04.2010)

Formerly Known As :	WELSPUN GUJARAT STAHL ROHREN LIMITED

Registered Office :	Welspun City, Village Versamedi, Taluka Anjar- 370110, Gujarat

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	26.04.1995

Com. Reg. No.:	04-25609

Capital Investment / Paid-up Capital :	Rs.1023.340 Millions

CIN No.: [Company Identification No.]	L27100GJ1995PLC025609

IEC No.:	0895004801

TAN No.: [Tax Deduction and Collection Account No.]	BRDW00071B / RKTW00064B

PAN No.: [Permanent Account No.]	AAACW0744L

Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

Line of Business :	Manufacturing of Steel Pipes, Coils and Plates

No. of Employees :	2500 (Approximately)

RATING and COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial and operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 120000000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. 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.

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previotus Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Welspun City, Village Versamedi, Taluka Anjar – 370110, Gujarat, India
Tel. No.:	91-2461-266011/ 256281 – 91-2836-661111
Fax No.:	91-2461-256285/91-2836-279060
E-Mail :	wgsrl@bom5.vsnl.net.in sales@wgsrl.com sales_wgsrl@theylspun.com CompanySecretary_WGSRL@theylspun.com
Website :	http://www.theylspunpipes.com
Area:	Owned

Corporate Office :	Welspun House, 5^th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lotheyr Parel, Mumbai-400013, Maharashtra, India
Tel. No.:	91-22-56503000/ 56503333/ 24908000/ 66136000
Fax No.:	91-22-24908020/ 21
E-Mail :	CompanySecretary_WGSRL@theylspun.com
Area :	http://www.theylspunpipes.com
Location :

Factory 1 :	Village Versamedi, Taluka Anjar, District – Kutch – 370110, Gujarat, India
Tel. No.:	91-2836-279000/ 573428/ 29
Fax No.:	91-2836-279010/ 247070
Area :	4950518 Sq .ft.
Location :	Owned

Factory 2 :	Village Jolva and Vadadia, Near Dahej, Taluka : Vagra, District Bharuch – 392130, Gujarat, India

Factory 3 :	KIADB Industrial Area, Gejjalagere, Taluka Maddur, District Mandya – 571428, Karnataka, India

USA Office :	9301, Frazier Pike, Little Rock , Arkansas 72205, USA

Saudi Arabia Office :	2^nd Ind City Dammam, Kingdom of Saudi Arabia, P.O. Box 12943

DIRECTORS

As on 31.03.2011

Name :	Mr. Balkrishan Goenka
Designation :	Chairman and Executive Director
Address :	6, Chancellore Court, A/88, Carmicheal Road, Mumbai – 400026, Maharashtra, India.
Qualification :	B. Com

Name :	Mr. Rajesh R. Mandawewala
Designation :	Managing Director
Address :	171, B Wing, 17^th Floor, Tanna Redisency, Bay view, 392, V. S. Marg, Prabhadevi, Mumbai – 400026, Maharashtra, India.
Qualification :	B. Com , A.C.A

Name :	Mr. Murarilal Mittal
Designation :	Executive Director (Finance)
Address :	1601, Marathon Heights, P. B. Marg, Jia Bharat Oil Mills Compound, Lower Parel, Mumbai – 400013, Maharashtra, India.
Qualification :	A.C.A

Name :	Mr. Raj Kumar Jain
Designation :	Director
Address :	A/ 42, Manali, Evershine Nagar, Malad (West), Mumbai – 4000064, Maharashtra, India.
Qualification :	A. C. A.

Name :	Mr. K. H. Viswanathan
Designation :	Director
Address :	Plat No. 4, Kalyani Uttam Society, Antony Road, Chembur, Mumbai – 400071, Maharashtra, India.
Qualification :	ICWA

Name :	Mr. Ram Gopal Sharma
Designation :	Director
Address :	707, Look Shrtia, Military Road, Off. Marol Maroshi Road, Andheri (East). Mumbai – 400059, Maharashtra, India.
Qualification :	B. Com, Master in Ecomomics

Name :	Mr. Nirmal Gangwal
Designation :	Director

Name :	Mr. Mukul Sarkar
Designation :	Nominee Director of Exim Bank Limited

Name :	Mr. Asim Chakraborty
Designation :	Whole time Director

KEY EXECUTIVES

Name :	Mr. Pradeep Joshi
Designation :	Company Secretary

Name :	Mr. Brijgopal Jaju
Designation :	Chief Financial Officer

Name :	Mr. Akbar Umatiya
Designation :	Vice President

Name :	Dave J. Delie
Designation :	President

Name :	Mr. Vipul Mathur
Designation :	Director, Sales and Marketing

Name :	Mr. L.T. Hotwani
Designation :	Director, (Taxation and Accounts CMD Office)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Category of Shareholder	Total No. of Shares	% of total No. of Shares

(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	347	-
Bodies Corporate	69,492,623	30.51
Sub Total	69,492,970	30.51
(2) Foreign
Bodies Corporate	14,565,523	6.39
Sub Total	14,565,523	6.39
Total shareholding of Promoter and Promoter Group (A)	84,058,493	36.90
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	109,944	0.05
Financial Institutions / Banks	6,103,318	2.68
Insurance Companies	19,547,980	8.58
Foreign Institutional Investors	46,787,175	20.54
Sub Total	72,548,417	31.85
(2) Non-Institutions
Bodies Corporate	15,418,721	6.77
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	18,404,994	8.08
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	6,820,578	2.99
Any Others (Specify)	7,503,832	3.29
Overseas Corporate Bodies	7,503,832	3.29
Sub Total	48,148,125	21.14
Total Public shareholding (B)	120,696,542	52.99
Total (A)+(B)	204,755,035	89.89
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	23,026,000	10.11
Sub Total	23,026,000	10.11
Total (A)+(B)+(C)	227,781,035	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Steel Pipes, Coils and Plates.

Products :

Product Description	Item Code No.
Steel Pipes and Tubes	73-05
Steel Plates	72-08

PRODUCTION STATUS AS ON 30.06.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Welded Pipes	MT	NA	1200000	1150000
Coating of Pipes	‘000 SQMS	NA	14500	14500
M.S. Plates/H.R. Coils	MT	NA	1500000	1500000
Power (co-generation)	KWH	NA	330000	330000

GENERAL INFORMATION

No. of Employees :

2500 (Approximately)

Bankers :

Andhra Bank
Bank of Baroda
Bank of India
Canara Bank
Citibank N.A.
Corporation Bank
Dena Bank
Export Import Bank of India
ICICI Bank Limited
Industrial Development Bank of India Limited
Oriental Bank of Commerce
Punjab National Bank
Standard Chartered Bank
State Bank of Bikaner and Jaipur
State Bank of India
State Bank of Travancore
The Hongkong and Shanghai Banking Corporation Limited
Union Bank of India

Facilities :

SECURED LOANS	31.03.2011 Rs.in millions	31.03.2010 Rs. in millions
Debentures
Secured Redeemable Non Convertible Debentures	11700.000	3000.000

From Banks
In Foreign Currency	0.000	398.760
In Rupee	0.000	2782.370

EXTERNAL COMMERCIAL BORROWINGS	6789.680	6789.990

Working Capital From Banks
In Foreign Currency	0.000	0.000
In Rupee	0.000	0.000

Total	19868.690	12971.120

UNSECURED LOANS	31.03.2011 Rs. in millions	31.03.2010 Rs. in millions

Foreign Currency Convertible Bonds	6689.250	6735.000
Deferred Sales Tax Loan (Repayable in six equal annual instalments from Financial year 2009/ 2015)	66.770	83.460

Total	6756.020	6818.460


Banking Relations :	--

Auditors :
Name :	MGB and Company Chartered Accountants
Address :	Mumbai, Maharashtra, India

Associates/Subsidiaries :	· Welspun Pipes Limited · Welspun Tradings Limited · Welspun Natural Resources Private Limited · Welspun Plastics Private Limited · Welspun Pipes Insurance · Welspun Tubular LLC · Welspun Global Trade LLC · Welspun Mauritius Holdings Limited · Welspun Middle East Pipes Coatings Company LLC · Welspun Middle East Pipe Company · Welspun Middle East DMCC · Welspun Construction Private Limited · Welspun Infratech Limited · Welspun Road Projects Private Limited · Welspun Projects Limited · Welspun Infra Projects Private Limited · MSK Projects (Himmatnagar Byepass) Private Limited · MSK Projects (Kim Mandavi Corridor) Private Limited · Welspun Water Infrasturcture Private Limited · Welspun Energy Transportation Private Limited · Welspun Energy Maharashtra Private Limited

CAPITAL STRUCTURE

As on 31.08.2010

Authorised Capital : Rs.2500.000 Millions

Paid up Capital : Rs.1138.905 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount

304000000	Equity Shares	Rs.5/- each	Rs.1520.000 Millions
98000000	Preference Shares	Rs.10/-each	Rs.980.000 Millions

Issued, Subscribed and Paid-up Capital :

No. of Shares	Type	Value	Amount

204668910	Equity Shares	Rs.5/- each	Rs.1023.340 Millions

Note: Of the above, 8120,000 Equity Shares of Rs.5 each fully paid u are allotted for consideration other than cash, pursuant to the Scheme of Agreement

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		1023.340	1021.610	932.460
2] Share Application Money		0.000	0.000	0.000
3] Reserves and Surplus		29503.580	26366.000	14865.530
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		30526.920	27387.610	15797.990
LOAN FUNDS
1] Secured Loans		19868.690	12971.120	21634.020
2] Unsecured Loans		6756.020	6818.460	103.410
TOTAL BORROWING		26624.710	19789.580	21737.430
DEFERRED TAX LIABILITIES		3431.420	2954.680	2487.630
FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT		65.140	75.420	354.980

TOTAL		60648.190	50207.290	40023.050

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		25054.800	24634.310	22910.340
Capital work-in-progress		6039.580	4011.170	3803.150

INVESTMENT		17703.390	2796.140	1718.380
DEFERRED TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS and ADVANCES
	Inventories	13156.340	13042.920	23236.410
	Sundry Debtors	8860.230	8040.870	5838.550
	Cash and Bank Balances	6164.700	9212.400	9193.710
	Other Current Assets	145.040	13.410	25.180
	Loans and Advances	5854.760	6194.150	11149.810
Total Current Assets		34181.070	36503.750	49443.660
Less : CURRENT LIABILITIES and PROVISIONS
	Sundry Creditors	7548.360	8133.800	6087.410
	Others Current Liabilities	13815.830	8469.480	31519.770
	Provisions	966.460	1134.800	600.280
Total Current Liabilities		22330.650	17738.080	38207.460
Net Current Assets		11850.420	18765.670	11236.200

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		60648.19	50207.290	40023.050

PROFIT and LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	62694.400	66273.350	58783.140
		Other Income	161.420	127.740	178.790
		TOTAL (A)	62855.820	66401.090	58961.930

Less	EXPENSES
		Cost of Goods Sold	44419.490	44928.460	42113.920
		Manufacturing Expenses	10426.870	10246.490	10322.780
		TOTAL (B)	54846.360	55174.950	52436.700

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8009.460	11226.140	6525.230

Less	FINANCIAL EXPENSES (D)		1089.180	1661.700	1734.960

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6920.280	9564.440	4790.270

Less/ Add	DEPRECIATION/ AMORTISATION (F)		1656.650	1479.200	1254.190

	PROFIT BEFORE TAX (E-F) (G)		5263.630	8085.240	3536.080

Less	TAX (I)		1619.110	2683.280	1200.410

	PROFIT AFTER TAX (G-I) (J)		3644.520	5401.960	2335.670

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		11074.890	6795.960	5305.600

Less	APPROPRIATIONS
		General Reserve	364.500	540.000	234.000
		Debenture Redemption Reserve	463.390	106.250	268.750
		Proposed Dividend on Equity Shares	409.340	408.640	279.740
		Tax on above Dividend	66.400	67.870	47.540
		Dividend on Equity Shares for earlier period	0.250	0.220	13.060
		Tax on Dividend	0.040	0.040	2.220
	BALANCE CARRIED TO THE B/S		13415.490	11074.900	6795.960

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	22054.680	22190.570	17540.710
		Interest Income	0.000	204.100	203.200
		Other Earnings	718.810	669.490	2504.500
	TOTAL EARNINGS		22773.490	23064.160	20248.410

	IMPORTS
		Raw Materials	22131.500	17608.520	37488.550
		Stores and Spares	946.530	929.970	727.070
		Capital Goods	81.500	1147.640	1169.730
		Others	9062.090	3518.720	3611.960
	TOTAL IMPORTS		232221.620	23204.850	42997.310

	Earnings Per Share (Rs.)
	Basic		17.82	28.04	12.59
	Diluted		16.94	25.18	12.50

QUARTERLY RESULTS

PARTICULARS

31.06.2011

Type

MIRA INFORM REPORT

SECURED LOANS

Debentures

From Banks

Working Capital From Banks

13156.340

13042.920

23236.410

8860.230

8040.870

5838.550

6164.700

9212.400

9193.710

145.040

13.410

25.180

5854.760

6194.150

11149.810

34181.070

36503.750

49443.660

13815.830

8469.480

31519.770

966.460

1134.800

600.280

22330.650

17738.080

38207.460

11850.420

18765.670

11236.200