1. Summary Information

		Country	India
Company Name	WELSPUN CORP LIMITED	Principal Name 1	Mr. Rajesh R. Mandawewala
Status	Good	Principal Name 2	Mr. Balkrishan Goenka
		Registration #	--
Street Address	Welspun City, Village Versamedi, Taluka Anjar- 370110, Gujarat
Established Date	26.04.1995	SIC Code	--
Telephone#	91-2461-266011/ 256281 – 91-2836-661111	Business Style 1	Manufacturing of Steel Pipes, Coils and Plates
Fax #	91-2461-256285/91-2836	Business Style 2	--
Homepage	--	Product Name 1	--
# of employees	2500	Product Name 2	--
Paid up capital	Rs.1,023,340,000	Product Name 3	--
Shareholders	Bodies Corporate - 35.02	Banking	Andhra Bank
Public Limited Corp.	--	Business Period	17 years
IPO	---	International Ins.	-
Public Enterprise	---	Rating	A
Related Company
Relation Associates/Subsidiary	Country India	Company Name	Welspun Pipes Limited
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2011		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	21,024,730,000	Current Liabilities	22,330,650,000
Inventories	13,156,340,000	Long-term Liabilities	26,624,710,000
Fixed Assets	25,054,800,000	Other Liabilities	3,496,560,000
Deferred Assets	--	Total Liabilities	52,451,920,000
Invest& other Assets	23,742,970,000	Retained Earnings	29,503,580,000
		Net Worth	30,526,920,000
Total Assets	82,978,840,000	Total Liab. & Equity	82,978,840,000
Total Assets (Previous Year)	67,945,370,000
P/L Statement as of	31.03.2011		(Unit: Indian Rs.)
Sales	62,694,400,000	Net Profit	3,644,520,000
Sales(Previous yr)	66,273,350,000	Net Profit(Prev.yr)	5,401,960,000

MIRA INFORM REPORT

Report Date :

10.05.2012

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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 31.03.2012

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	342	--
Bodies Corporate	71701327	35.02
(2) Foreign
Bodies Corporate	14565523	7.11
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1003855	0.49
Financial Institutions / Banks	22383791	10.93
Insurance Companies	270000	0.13
Foreign Institutional Investors	48328967	23.60
(2) Non-Institutions
Bodies Corporate	15143614	7.40
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	15271393	7.46
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	4623481	2.26
Any Others (Specify)
Overseas Corporate Bodies	7503832	3.66
Clearing Members	3124966	1.53
Non Resident Indians	833944	0.41
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	--	--
(2) Public	23026000	10.11
Total	227781035	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	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	14903.300	9742.000	13852.300
Total Expenditure	13219.700	9637.500	14521.000
PBIDT (Excl OI)	1683.600	104.500	(668.700)
Other Income	111.400	214.900	234.200
Operating Profit	1795.000	319.400	(434.500)
Interest	249.100	250.000	356.000
Exceptional Items	0.000	0.000	0.000
PBDT	1545.900	69.400	(790.500)
Depreciation	448.100	432.400	467.200
Profit Before Tax	1097.800	(363.000)	(1257.700)
Tax	343.200	(129.400)	(329.500)
Reported PAT	754.600	(233.600)	(928.200)
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	754.600	(233.600)	(928.200)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.79	8.13	3.96
Net Profit Margin (PBT/Sales)	(%)	8.39	12.19	6.02
Return on Total Assets (PBT/Total Assets}	(%)	8.89	13.22	4.89
Return on Investment (ROI) (PBT/Networth)		0.17	0.29	0.22
Debt Equity Ratio (Total Liability/Networth)		1.60	1.37	3.79
Current Ratio (Current Asset/Current Liability)		1.53	2.06	1.29

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	Yes
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	--
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

PERFORMANCE:

 
Plate cum Coil Mill, the Company registered almost 100% growth in Plate production to 383,577 MT as compared to 192,569 MT in the preceding year showing stabilization of production throughout the year whereas, the coil mill which commenced production at the end of the year under report, recorded production of 2,691 MT. On the coating side, the Company registered manifold growth of 7.5 times to 5,036K sqm as compared to 688K sqm in the preceding year mainly due to higher ratio of coated pipes to bare pipes. On the revenue side, the Company
 achieved growth of 12.38% in the Total Income mainly due to higher realization.

Management Discussion and Analysis

The Management Discussion and Analysis (MD and A) should be read in conjunction with the Audited Consolidated Financial Statement of Welspun Corp Limited (formerly known as Welspun-Gujarat Stahl Rohren Limited) ("Welspun" or the "Company"),and the notes thereto for the year ended 31 March, 2010. This MDandA covers Welspun's financial position and operations for the year ended 31 March, 2010. Amounts are stated in Indian Rupees unless otherwise indicated. Abbreviations and acronyms themed in this MD and A are identified in the Glossary of Terms in Welspun's Annual Report of 2010. The numbers used in the analysis are on a consolidated basis, the corresponding number for the previous year has been regrouped and reclassified, wherever necessary.

Forward-Looking Statements

This report contains forward-looking statements, which may be identified by their of words like 'plans', 'expects', 'will','anticipates', 'believes', 'intends', 'projects','estimates' or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the Company's strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

Company Overview

Welspun Corp is a one-stop service provider offering complete pipe solutions with a capability to manufacture line pipes ranging from1/2 inch to 120 inches, along with specialized coating, double jointing and bending. The Company has global current commissioned capacity of 1.85 mn tons at Dahej and Anjar in Gujarat- India, at Little Rock in the USA, and Damman in Saudi Arabia.

During FY 11, the Company has commissioned 0.10 mn tons capacity HSAW Plant at Mandya in Karnataka to cater the water segment at a lower transportation cost to the South India Market. The Company has also commissioned operations at Damman in Saudi Arabia with a capacity of 0.30 mn tons of HSAW Plant. The Company has also embarked on a new LSAW plant at Anjar with the capacity of 0.35 mn tons and is expected to start commercial production in the first half of FY 12.

The Company has continued to further strengthen its services to become an integrated pipe manufacturer by setting up a world class plates and coils manufacturing facility. The state-of-the-art Plate cum Coil mill in India (Anjar) has production capacity of 1.5 mn tons, of API grade Plates and Coils. This backward integration assures high grade plate and coil requirement for pipe manufacturing.

The Company has deployed state of the art technology in its plants and adopted some of the highest standards for quality and service delivery The Company has developed unmatched expertise to manufacture pipes of varying qualities, grades and sizes that are themed in long distance transportation of oil and gas for critical purposes and in complex regions. They are amongst the few manufacturers of high grade pipe of X 80 and are also the first Company to manufacture the largest diameter pipe -56 inches-in both HSAW as they will LSAW in X8o grade.

The Company’s strategy is to have full-integration and provide one stop solution in the Line Pipe segment thereby capture the entire value chain from manufacturing of Plate and Coils to Line Pipes and also Pipe laying.

The Company has undertaken some of the most challenging projects in different parts of the world. The Company has emerged as a referred supplier to most of the Fortune 100 Oil and Gas companies. Marketing office in Houston (USA) and Dubai (UAE) enables greater freach to the customers, along with various facilities and offices spread across the Globe.

The Company has been exporting pipes in the global market including some of the most demanding markets like THEM and Middle East in terms of quality and innovation in products and services.

The Company has become approved supplier to over 50 major oils and gas companies across the world. This enables the Company to participate and bid in the key projects across the world.

The Company has been pie-approved by some of the major international oil and gas companies like British Gas, British Petroleum (UK), Shell (Netherland), Golden Pass Pipeline LP (Exxon Mobil), TransCanada, Chevron (USA), Saipem (Italy), Total (France), Enterprise, Peru ING S.R.L (Hunt Oil), Saudi Arabian Oil Company (Kingdom of Saudi Arabia), Ruby (Elpaso), Qatar Petro DOW and Gazprom (Stroytransgaz) along with Indian oil and gas players like Reliance Industries Limited, GAIL, ONGC and Indian Oil Corporation.

GIobal Energy demand on growth trajectory

The ongoing global recovery coupled with rising demand for energy, is prompting oil and gas companies to invest more in new pipe infrastructure and push the energy demand. Progressing countries in Africa, Asia Pacific, Middle East etc are expected to pull in most of the energy investment in order to boost its economic operation. For Oil and Gas Sector, the investment to the tune of $12 trillion will be required for next 2oyears resulting in an annual investment of over $500 billion as per International Energy Agency (lEA).

As per the lEA’s estimate, the global oil demand in ZOll will be at 89.4 million barrels per day (“mb/d”) (which is5.2% higher or up by 4.4 mb/d as compared with 2009).

Global Gas Scenario

Currently global gas demand and production is the range of 3.3 tcm (2010) and shall reach to 5.1 tcm by 2035 by recording a compounded annual growth rate of 1.8%, which is an increase of 1.8 tcm over this period. This growth will increase the share of natural gas in global energy mix from about 21% to 25% in 2035.

According to the World Energy outlook (2011) report released by International Energy Agency, global gas demand under the GAS scenario (Golden Age of Gas), Gas will play a more prominent role in meeting world’s energy needs till 2035. Non OECD countries especially China and India are expected to account for large part of total increase in demand.

Shale Gas

Shale gas has been referred to as “the biggest energy innovation of the decade” by world renowned energy economist Daniel Yergin. It has become an increasingly important source of natural gas in the United States over the past decade and interest has spread to potential gas shale In Canada, Europe, Asia, and Australia. Although many other nations are pursuing shale gas, commercial success is so far limited to THEM and Canada. Shale Gas production in the THEM has increased from virtually nothing in 2000 to over 10 billion cubic feet per day (bcfd) in 2010. Currently Shale gas contributes to nearly 17% of the total gas production in THEM and is expected to form 50% of total THEM natural gas production by 2030’s.

Oil and Gas sector remains primary demand driver for pipes industry

The oil and gas industry has been the primary end user and the biggest demand driver for pipes historically with water infrastructure development and industrial applications being the other demand centers. Higher oil and gas prices typically drive exploration capex which in turn fuels demand for drilling activity (seamless pipes) and for the transportation of resources from the oil they will to the end consumer (Line pipes — [SAW, HSAW and ERW pipes).

Global Pipe Demand Outlook

Global business potential for new pipeline projects augments they will for the pipe demand. Based on the existing pipeline projects, the global pipeline demand is projected to be around 102 mn tons for about 772 projects resulting in an opportunity for supplies of more than $123 bn across the globe for the next four years (Source: Slmdex)

Crude Oil

With the recovery in global economies and particularly in the THEM market the potential of steel pipes industry looks better. Rising oil prices and further stimultus-led tax breaks will lead to higher capex spends in the oil and gas sector which will entail more demand for pipes. Thus an upturn is expected in order inflow, both domestic as they will as international, for pipes majors.

With the oil prices range between THEM$ 90-100 and a steady revival In global economies with stimultus-led tax break leading to increased corporate capex the demand for steel pipes is becoming stronger. In USA, the recovery in oil prices has also resulted in an increased rig count of 1,713 in December’10 from 1,550 In July’10 reflecting a ramp-up in drilling activity.

On the back of faster-than-expected global recovery and an Uptick in industrial activity in various economies, overall crude demand is to post a CAGR of 1.3% or average 1.2 mbpd, from 87.3 mbpd in CY1O to 93.2 mbpd in CY15E. The surging demand of crude in CY1OE (87.3 mbpd) has surpassed the previous demand peak of 86.7 mbpd (CYO7) (Source: lEA).

This growth is expected to be led by buoyant growth in non-OECD economies (+7.7 mbpd, ÷3.5% CAGR), marginally offset by flat-to- marginally-negative growth in OECD economies (-1.8 mbpd or -0.8% CAGR).

Natural Gas

Natural Gas production increasingly will come from unconventional sources and their share in total output shall increase from 12% in 2008 to nearly 25% in 2035. The natural gas supply is becoming larger and is getting spread over many regions and locations, which shall continue to fuel the demand for pipeline infrastructure. The global gas production is estimated to match the demand from 3.3 tcm in 2010 to 5.ltcm by2035, with larger share of OECD, Middle East and Africa.

Shale Gas

Positive developments are also taking place across the globe for Shale Gas development U.S. Energy Information Administration (EIA) released a major report in 2011 assessing the potential for shale gas developments in48 basins in 32 countries around the world. According, to the report, the assessed basins, could contain 6,622 trillion cubic feet of gas contained in shale. China holds 1,275 tcf of technically recoverable Shale Gas resource. Following is the list of major countries holding Shale resources. Poland and Australia are the countires where major shale gas work is under process.

Also increase in Shale Gas Production in the THEM will expedite the development of LNG Export Terminals in the US. The transition of the US from a net importer of LNG to a net exporter looks inevitable with the increase in shale gas production there over the last five years. The first LNG export terminal in the THEM commenced operations in 2010 and two more terminals are planned to start operations during 2011-2016. The total planned LNG liquefaction capacity of the THEM will reach 17.5 MTPA by 2016.

.

Alaska Pipeline Project

TransCanada and ExxonMobil intend to invest US $32 bn— $41 bn on an Alaska pipeline project translating to strong demand prospects for pipe manufacturers. The Alaska Pipeline Project is continuing to advance the technical, engineering, commercial, and regulatory work needed to make the project a reality. The Alaska Pipeline Project is actively working to file major permit applications with U.S. and Canadian regulatory agencies in 2012. The Alaska Pipeline Project is advancing ongoing technical and engineering work to refine plans for project design and construction.

Demand upside from potential replacement market

Replacement demand from developed nations remains strong. This has been debated for a long period of time and actual demand has not materialized them far. Given the fact that a large percentage of pipelines in the US have reached the end of their lifespan (30 years) the replacement is required. The BP oil spill may prompt the US to accelerate the process to replace old infrastructure. More than 1 mn miles of the total 1.5 mn miles of USA pipelines they are laid during the 1960’s and 1970’s.

Considering that the actual annual demand-supply of pipes currently is around 16-17 mn tones per year, the replacement of even half of 1 mn miles of pipelines would take at least 10-12 years to complete.

Liquefied Natural Gas (IJIG) Terminals to enhance Pipe Demand in India

Currently, India has an LNG import capacity of 13.5 MTPA through two terminals, accounting for about 20% of the country’s gas requirements. Petronet LNG runs India’s first LNG receiving and regasification terminal at Dahej in Gujarat is having a capacity of 10 MTPA (which may be further expanded), equivalent to 40 MMSCMD of natural gas. A joint venture of Shell Gas BV and Total Gaz Electricite Holdings France runs a 3.5 MTPA capacity LNG terminal at Hazira, Gujarat.

Shale Gas in India

Schlumberger, a global leader in oilfield services, has pegged the reserves of gas in shale deposits across India at 300 times higher than the largest gas basin in India. In the Damodar Valley Shale gas basin alone an initial gas-in-place estimates are of 300-2l00 trillion cubic feet (tcf) in lndian shale gas basins.

Water sector opportunity in India

Water pipelines offer another opportunity to pipe manufacturers as the government is increasing thrust on creating water infrastructure across the country. As per the estimates of The High Powered Expert Committee (HPEC) for urban infrastructure services, the total investment required to meet the current backlog and future needs for eight core urban infrastructure sectors during FY12 to FY31 is Rs.39200000.000 Millions which translates into an yearly average of approximately Rs.2000000.000 Millions. Water supply, sewerage, solid waste management, and storm water drains account for about 20% of estimated investment requirements. Further, Rs 19900000.000 Millions, or almost Rs.1000000.000 Millions a year is estimated to be required for O and M on urban infrastructure during the FY12-31.The largest programme for urban infrastructure development led by Government of India, the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), which has been supporting the urban infrastructure development over the period 2007-2012, has disbursed Rs. 384630.000 in 4 years till 31st March 2011. About 58% of the projects that has been approved are in the water supply and sanitation sectors. Investment In water supply infrastructure has increased, especially after the launch of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) by the government in 2006.

Strengths

· Approvals and Accreditations from major oil and gas companies leveraging strong market share by some players

· Safe and cost effective mode of transport for liquids and gases

· Cost effectiveness of the Indian Players compared to International Players.

· Some of the players capable to execute most stringent global projects.

· Thriving Domestic market

Weaknesses

· Dependence on government spending and changing regulations

· Intensifying competition with capacity increases by domestic players and participation from foreign players

· Larger reliance on Domestic Orders

Opportunities

· Low pipeline penetration in India vis-à-vis developed nations compared to USA and France

· Increasing O and G exploration activity across the country provides opportunity for creating pipeline infrastructure

· PNGRB initiating new pipeline projects and building of City Gas Distribution

· Increasing Government layout for Infrastructure building with specific focus on O and G and water infrastructure

Threats / Risks

· Volatile Crude Oil prices

· Appropriate thrust on pipeline investment by Government

· Changing Government policies on Pipeline Investment

· Sharp fluctuations in steel prices between the bid and award of the contract

· Volatile Forex rates

· Intensifying competition, impacting margin

· Freight costs on pipeline Investments

· Global Economic environment

FIXED ASSETS

• Freehold Land
• Buildings
• Plant and Machinery
• Office and Other Equipments
• Vehicle
• Furniture And Fixtures
• Software

PRESS RELEASE

Welspun Corp bags New Orders of Rs. 9230.000 Millions

taking order book to Rs. 5,3770.000 Millions

Mumbai, 24 April 2012: Welspun Corp Limited, the flagship Company of the $ 3.5 billion Welspun Group and the 2nd largest line pipe company in the World (Source: Financial Times, UK) has won Pipes and Plates orders worth Rs. 9230.000 Millions (143 KMT of Pipes and 32 KMT of Plates) from international and domestic markets. With the addition of these orders, the current order book of the company stands at Rs. 5,3770.000 Millions (approx 787 KMT for pipes, and external plate orders of 49 KMT) without excluding the order being executed in the current quarter.

Commenting on the receipt of the new order, Mr. B.K. Goenka, Chairman, Welspun said, “Continuity of the orders from the export markets further strengths Welspun’s global positioning and is testimony to our enduring emphasis on Engineering Excellence.”

About Welspun Corp Ltd. (WCL) www.welspuncorp.com

Welspun Corp (www.welspuncorp.com) is a one-stop service provider offering complete pipe solution with a capability to manufacture line pipes ranging from ½ inch to 120 inches, along with specialized coating, double jointing and bending. With current capacity of 2.2 mn MTPA in Dahej and Anjar, Gujarat, India, Little Rock in the USA and Saudi Arabia, Welspun take pride in being a preferred supplier to most of the Fortune 100 Oil and Gas companies. With 360 degree abilities, Welspun Corp has undertaken some of the most challenging projects in different parts of the world. Welspun Corp has continued to further strengthen its services to become an integrated Pipe manufacturer by setting up a world class plates and coils manufacturing facility. Since its inception, Welspun Corp is committed to its strategy of complete integration by being a one stop solution in the Line Pipe segment, capturing the entire value chain from manufacturing of Plate and Coil to Line pipe and finally to Pipe laying. With business excellence being a clear focus of Welspun Corp, the company will persist with its clear mandate on innovation and technology, state-of-the-art facilities and global scale operations.

CMT REPORT (Corruption, Money Laundering and Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

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 theyre 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
USA Dollar	1	Rs.53.46
UK Pound	1	Rs.86.27
Euro	1	Rs.69.40

INFORMATION DETAILS

Report Prepared by :

SDA

SCORE and RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		64

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 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
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	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.