MIRA INFORM REPORT

Report Date :

17.07.2014

IDENTIFICATION DETAILS

Name :	WELSPUN INDIA LIMITED
Registered Office :	Welspun City, Village Versamedi, Taluka Anjar – 370110, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	17.01.1985
Com. Reg. No.:	04-033271
Capital Investment / Paid-up Capital :	Rs.1003.465 Millions
CIN No.: [Company Identification No.]	L17110GJ1985PLC033271
TAN No.: [Tax Deduction & Collection Account No.]	RKTW00055G
PAN No.: [Permanent Account No.]	AAACW1259N
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of wide range of home textile products, mainly terry towels, bed linen products and rugs.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a part of “Welspun Group”. It is a well established company having fine track record. The company possesses a favourable financial profile marked by adequate networth base along with fairly leveraged capital structure and slightly restrained working capital position leading to moderate debt protection metrics. Management has reported a drastic dip in its net profitability which has harshly impacted the profit margins during FY14. The ratings also take into consideration the exposure to inherent industry risks such as volatility in raw material prices and forex currency. However, trade relations are fair. Business is active. Payment terms are reported as regular and as per commitments. In view of promoters and management’s extensive experience and subject’s dominance in the home textile segment by virtue of being the market leader with strong brand image, it can be considered 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.

INDIAN ECONOMIC OVERVIEW

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term Bank facilities : (CARE) A
Rating Explanation	Adequate degree of safety and low credit risk.
Date	October 11, 2013

Rating Agency Name	CARE
Rating	Short term Bank facilities : (CARE) A1
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	October 11, 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION DENIED

Management Non Co-Operative (91-22-66136000)

LOCATIONS

Registered Office/ Plant I :	Welspun City, Village Versamedi, Taluka Anjar – 370110, Gujarat, India
Tel. No.:	91-2836-573428/ 9 / 279000 / 09/ 661111 / 279051
Fax No.:	91-2836-247070/ 279010 / 279050
E-Mail :	companysecretary_wil@welspun.com ashish_shah@welspun.com
Website :	www.welspun.com
Corporate Office :	Welspun House, 6^th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-66136000/ 24908000
Fax No.:	91-22-24908020/ 24908021
E-Mail :	subrata_pal@welspun.com
Plant II :	Survey No. 76 Village and P.O. Morai, Vapi District Valsad, Gujarat – 396194, India
Tel. No.:	91-260-2437437
Fax No.:	91-260-2437088
Email :	wttvapi@welspun.com

DIRECTORS

As on: 31.03.2013

Name :	Mr. B. K. Goenka
Designation :	Chairman
Name :	Mr. Dadi B. Engineer
Designation :	Director
Name :	Mr. A. K. Dasgupta
Designation :	Director
Name :	Mr. Ram Gopal Sharma
Designation :	Director
Qualification :	MA (Econ), B.Com and Fellow of Insurance Institute of India
Name :	Mr. Ajay Sharma
Designation :	Nominee – IDBI Bank
Name :	Mr. Arun Todarwal
Designation :	Director
Name :	Mr. R. R. Mandawewala
Designation :	Managing Director
Name :	Ms. Dipali Goenka
Designation :	Executive Director

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. Ram Gopal Sharma
Share Transfer and Investor Grievance Committee :	· Mr. A. K. Dasgupta · Mr. B. K. Goenka · Mr. R. R. Man dawewala

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2014

Category of Shareholder	No. of Shares	Percentage of Holdings
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	344401	0.34
Bodies Corporate	73010633	72.76
Sub Total	73355034	73.10
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	73355034	73.10
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2940380	2.93
Financial Institutions / Banks	7951709	7.92
Insurance Companies	64243	0.06
Foreign Institutional Investors	2517	0.00
Sub Total	10958849	10.92
(2) Non-Institutions
Bodies Corporate	6022834	6.00
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	5334620	5.32
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	4195306	4.18
Any Others (Specify)	479872	0.48
Clearing Members	133287	0.13
Non Resident Indians	200294	0.20
Trusts	2000	0.00
Directors & their Relatives & Friends	4289	0.00
Unclaimed Suspense A/c	140002	0.14
Sub Total	16032632	15.98
Total Public shareholding (B)	26991481	26.90
Total (A)+(B)	100346515	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	100346515	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Details of Shares held		Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Radhika Goenka	2,00,860	0.20	0.20
2	Dipali Goenka	72,360	0.07	0.07
3	B K Goenka	68,389	0.07	0.07
4	Dipali Goenka Jointly with B K Goenka	2,680	0.00	0.00
5	Rajesh R Mandawewala	103	0.00	0.00
6	B K Goenka JTLY Dipali Goenka	9	0.00	0.00
7	Krishiraj Trading Limited	5,00,37,192	49.86	49.86
8	Welspun Mercantile Limited	1,12,46,576	11.21	11.21
9	Welspun Wintex Limited	84,25,291	8.40	8.40
10	Welspun Infra Developers Private Limited	27,49,773	2.74	2.74
11	Welspun Finance Limited	5,42,402	0.54	0.54
12	Methodical Investment and Trading Company Private Limited	7,694	0.01	0.01
13	Welspun Syntex Limited	1,485	0.00	0.00
14	Welspun Zucchi Textiles Limited	110	0.00	0.00
15	Welspun Steel Limited	110	0.00	0.00
	Total	7,33,55,034	73.10	73.10

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Reliance Capital Trustee Company Limited A/c Reliance Growth Fund	2928314	2.92	2.92
2	Bank Of Baroda	2000000	1.99	1.99
3	IDBI Bank Limited	1779410	1.77	1.77
4	State Bank of Bikaner and Jaipur	1634000	1.63	1.63
	Total	8341724	8.31	8.31

Details of Locked-in Shares

Sl. No.	Name of the Shareholder	No. of Shares	Locked-in Shares as % of Total No. of Shares
1	B K Goenka	9	0.00
2	Dipali B Goenka	3	0.00
3	Krishiraj Trading Limited	19,01,467	1.89
4	Welspun Mercantile Limited	7,37,308	0.73
5	Welspun Wintex Limited	5,27,757	0.53
	Total	31,66,544	3.16

BUSINESS DETAILS

Line of Business :

Manufacturer of wide range of home textile products, mainly terry towels, bed linen products and rugs.

Products :

ITC Code	Product Descriptions
63049250	Cotton Terry Towel
63041910	Cotton bed Sheet
52051100	Cotton Yarn

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Unit	Actual Production
Towels	M.T.	41477.85
Bed Sheets	Million Mtrs	37.33
Cotton Yarn	M.T.	33507.06
Rugs	M.T.	4808.99

GENERAL INFORMATION

No. of Employees :

Information declined by the management

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 Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
Long-term Borrowings
Term Loans :
Rupee Term Loans from Banks		9276.330
Short-term Borrowings
Working Capital Loans from Banks		5859.160
Total	NA	15135.490

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountants
Subsidiaries Companies (As on: 31.03.2013) :	· Welspun AG (WAG) (Up to March 27, 2013) · Besa Developers and Infrastructure Private Limited (BESA) · Welspun Mexico S.A. de C.V (WMEX) (Up to March 28, 2013) · Welspun Retail Limited (WRL) · Welspun Holdings Private Limited, Cyprus (WHPL) · Welspun Home Textiles UK Limited (WHTUKL) (Held through WHPL) · CHT Holdings Limited (CHTHL) (Held through WHTUKL) · Welspun USA Inc., USA (WUSA) · Welspun Decorative Hospitality LLC (WDHL) · Kojo Canada Inc. (Held through WDHL) · Welspun Mauritius Enterprises Limited (WMEL) · Novelty Home Textiles SA de CV (Held through WMEL) · Christy Home Textiles Limited (CHTL) (Held through CHTHL) · Welspun UK Limited (WUKL) (Held through CHTL) · Christy 2004 Limited (Held through WUKL) · Christy Welspun GmbH (CWG) (Held through WUKL) (Formerly known as Christy Europe GmbH (CEG)) · Christy UK Limited (CUKL) (Held through CHTL) · ER Kingsley (Textiles) Limited (ERK) (Held through CHTL)
Joint Venture Company (As on: 31.03.2013):	Welspun Zucchi Textiles Limited (WZTL)
Associate Company (As on: 31.03.2013):	Welspun Captive Power Generation Limited (WCPGL)
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 (As on: 31.03.2013):	· Welspun Investments and Commercials Limited (WICL) · Welspun Corp Limited (WCL) · Welspun Steel Limited (WPSL) · Welspun Wintex Limited (WWL) · Welspun Mercantile Limited (WML) · Welspun Energy Limited (WEL) · Krishiraj Trading Limited (KTL) · Welspun Logistics Limited (WLL) · Welspun Syntex Limited (WSL) · Welspun Realty Private Limited (WRPL) · Vipuna Trading Limited (VTL) · Mertz Securities Limited (MSL) · Welspun Polybuttons Limited (WPBL) · Wel-treat Enviro Management Organisation Limited (WEMO) · 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 Infra Limited (W INFRA)

CAPITAL STRUCTURE

As on: 31.03.2014

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs.1003.465 Millions

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
155500000	Equity Shares	Rs.10/- each	Rs.1555.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100027015	Equity Shares	Rs.10/- each	Rs.1000.270 Millions

(a) Reconciliation of number of shares

Equity Shares :	31.03.2013
	Number of Shares	Amount (Rs. millions)
Balance as at the beginning of the year	89012269	890.120
Add : Shares issued pursuant to Scheme of Amalgamation	10475496	104.750
Add : Shares issued to Employees under Employee Stock Option Scheme	539250	5.400
Balance as at the end of the year	89012269	1000.270

(b) Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company

Equity Shares :	31.03.2013
	Number of Shares	% of holdings
Welspun Fintrade Limited	20059540	20.05
Welspun Mercantile Limited	11203976	11.20
Dunearn Investment Mauritius Pte Limited	-	-
Welspun Wintex Limited	8425291	8.42
Krishiraj Trading Limited	27717421	27.71

(c) Rights, preferences and restrictions attached to shares

Equity Shares :

The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend, in case proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(d) Shares alloted as fully paid up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceeding March 31, 2013):

(i) 10,475,496 equity shares of Rs. 10 each fully paid were issued in January 2013 to the erstwhile shareholders of Welspun Global Brands Limited pursuant to the composite scheme of arrangement between Welspun Global Brands Limited, the Company and Welspun Retail Limited without payment being received in cash.

(ii) Nil Equity Shares were issued in the last 5 years under the Employee Stock Options Plan as consideration for services rendered by employees.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1003.465	1000.270	890.120
(b) Reserves & Surplus	9489.334	9603.400	8317.260
(c) Share Suspense Account	0.000	0.000	104.750
(d) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.516	0.000	0.000
Total Shareholders’ Funds (1) + (2)	10493.315	10603.670	9312.130
(3) Non-Current Liabilities
(a) long-term borrowings	13353.618	9276.330	9566.480
(b) Deferred tax liabilities (Net)	925.535	2352.810	2161.990
(c) Other long term liabilities	3.700	6.300	16.500
(d) long-term provisions	980.324	45.660	33.010
Total Non-current Liabilities (3)	15263.177	11681.100	11777.980
(4) Current Liabilities
(a) Short term borrowings	8123.686	6700.280	4917.510
(b) Trade payables	4298.945	2641.530	2637.150
(c) Other current liabilities	2793.724	1718.300	3375.460
(d) Short-term provisions	432.973	245.810	83.030
Total Current Liabilities (4)	15649.328	11305.920	11013.150
TOTAL	41405.820	33590.690	32103.260
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	17780.367	16082.310	15551.080
(ii) Intangible Assets	0.000	31.740	14.740
(iii) Capital work-in-progress	0.000	541.440	1198.420
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	7069.132	3769.400	852.070
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1212.880	1437.430	3482.910
(e) Other Non-current assets	896.520	1202.760	705.540
Total Non-Current Assets	26958.899	23065.080	21804.760
(2) Current assets
(a) Current investments	435.227	393.950	1197.290
(b) Inventories	6872.292	5100.120	4547.340
(c) Trade receivables	2183.028	1136.840	2059.790
(d) Cash and cash equivalents	1916.210	1479.050	966.450
(e) Short-term loans and advances	2393.075	2047.420	761.030
(f) Other current assets	647.089	368.230	766.600
Total Current Assets	14446.921	10525.610	10298.500
TOTAL	41405.820	33590.690	32103.260

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	32954.605	30429.460	25909.950
	Other Income	1036.243	491.720	375.880
	Other Operating Income	2357.418	0.000	0.000
	TOTAL (A)	36348.266	30921.180	26285.830
Less	EXPENSES
	Cost of Materials Consumed	19717.882	16944.250	13541.490
	Purchases of Stock-in-Trade	69.741	81.140	153.460
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(1033.997)	44.730	240.180
	Employees benefits expense	2342.689	1817.710	1541.650
	Provision for diminution in value of investments [exceptional items]	0.000	7049.310	5931.790
	Provision for diminution in value of investments [extraordinary items]	0.000	0.000	81.790
	Power, Fuel and Water Charges	2700.503	0.000	0.000
	Other expenses	4438.065	83.850	284.350
	TOTAL (B)	28234.883	26020.990	21774.710
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	8113.383	4900.190	4511.120
Less	FINANCIAL EXPENSES (D)	1439.143	1384.310	1438.510
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	6674.240	3515.880	3072.610
Less/ Add	DEPRECIATION/ AMORTISATION (F)	6227.915	1328.090	1187.430
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	446.325	2187.790	1885.180
Less	TAX (I)	147.973	473.740	714.080
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	298.352	1714.050	1171.100
	IMPORTS
	Raw Materials		1182.210	735.550
	Stores and Spares and Dyes and Chemicals		176.060	245.630
	Capital Goods		246.450	1248.670
	Packing Material		24.040	28.000
	Others		0.000	90.980
	TOTAL IMPORTS	NA	1628.760	2348.830
	Earnings / (Loss) Per Share (Rs.)	2.98	17.19	11.77

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 May 20, 2014.

2. During the quarter ended September 30, 2013, the management re-assessed the method of providing depreciation on its plant and machinery (other than electrical installations) after taking into consideration the type of assets, nature of their re-assessment, the Company changed the method of providing depreciation from straight-line method to reducing balance method as it was considered that it would result in more appropriate preparation and presentation of the Financial Statements of the company. Accordingly, depreciation was recalculated under the reducing balance method for the period from the date on which the assets came into use upto June 30. 2013 in accordance with Accounting Standard 6 "Depreciation Accounting" notified under Section 211 (3C) [Companies (Accounting Standards) Rules 2006, as amended]. The incremental depreciation of Rs. 4630.958 Millions for the period upto June 30, 2013 arising from the change was provided during the year, in addition to the aforementioned incremental depreciation, depreciation for the period July 1, 2013 to March 31, 2014 is higher by Rs. 107.131 Millions due to the change in the method. Accordingly, depreciation and amortization expenses for the year ended March 31, 2014 is higher by Rs. 4738.089 Millions on and profit before tax for the year ended March 31, 2014 is lower by Rs. 4738.089 Millions with a consequential impact on profit after tax for the year.

Had the method of depreciation not been changed, profit before tax for the year ended March 31, 2014 would have been Rs. 5184.414 Millions as against the profit before tax of Rs. 446.325 Millions.

3. Pursuant to the WELSOP 2005, 2,265,000 options were granted to certain eligible employees upto March 31 2014 of which 953,500 options were forfeited and 1,193,000 options have been exercised.

During the quarter ended March 31, 2014, on exercise of the stock options, the Company has alloted 144,500 equity shares of Rs. 10 each to employees resulting in increase in paid-up share capital by Rs. 14.45 Millions and Securities Premium Account by Rs. 3.699 Millions. As on March 31, 2014, 118,500 options were outstanding.

4. The Company operates in only one primary business segment i.e. Home Textiles Segment. Hence information relating to primary segments is not required to be separately furnished.

5. The Board of Directors at their meeting held on May 20, 2014 recommended final dividend of Rs 3 per equity share having nominal value of Rs. 10 per share

6. Prior period comparatives have been reclassified to conform with the current period's presentation, wherever applicable.

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	0.82	5.54	4.46
Net Profit Margin (PBT/Sales)	(%)	1.35	7.19	7.28
Return on Total Assets (PBT/Total Assets}	(%)	1.30	7.47	6.27
Return on Investment (ROI) (PBT/Networth)		0.04	0.21	0.20
Debt Equity Ratio (Total Debt/Networth)		2.05	1.51	1.56
Current Ratio (Current Asset/Current Liability)		0.92	0.93	0.94

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	890.120	1000.270	1003.465
Reserves & Surplus	8317.260	9603.400	9489.334
Share Application money pending allotment	0.000	0.000	0.516
Share Suspense Account	104.750	0.000	0.000
Net worth	9312.130	10603.670	10493.315
long-term borrowings	9566.480	9276.330	13353.618
Short term borrowings	4917.510	6700.280	8123.686
Total borrowings	14483.990	15976.610	21477.304
Debt/Equity ratio	1.555	1.507	2.047

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	25909.950	30429.460	32954.605
		17.443	8.298

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	25909.950	30429.460	32954.605
Profit	1171.100	1714.050	298.352
	4.52%	5.63%	0.91%

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT

(Rs. In Millions)

Particular	31.03.2014	31.03.2013	31.03.2012
Current maturities of long-term debt
Rupee Term Loans from Banks		940.770	2283.140
Inter-corporate Loan from Welspun Investments and Commercials Limited		0.000	79.50
Inter-corporate Loan from Welspun Retail Limited		0.000	333.790
Total	NA	940.770	2696.430

Sr. No.	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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
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
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATIONS DETAILS

HIGH COURT OF GUJARAT

LETTERS PATENT APPEAL No. 512 of 2007

In SPECIAL CIVIL APPLICATION/ 19753/ 2006 ( DISPOSED ) On : 30/11/2006

Status : PENDING CCIN No : 001014200700512

Next Listing Date : 12/08/2013

Coram

· HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI · HONOURABLE MR.JUSTICE A.G.URAIZEE

Not Before :

· HONOURABLE MR. JUSTICE B.J.SHETHNA · HONOURABLE MR.JUSTICE C.K.BUCH · HONOURABLE MR.JUSTICE DN PATEL · HONOURABLE MR.JUSTICE K.M.THAKER · HONOURABLE MR.JUSTICE RAJESH H.SHUKLA

S.NO.	Name of the Petitioner	Advocate On Record
1 2 3	UNION OF INDIA MINISTRY OF COMMERCE, GOVERNMENT OF INDIA DIRECTOR GENERAL OF FOREIGN TRADE	(MR RM CHHAYA) for: Appellant(s)  1 MR PS CHAMPANERI for: Appellant(s)  1 - 3

S.NO.	Name of the Respondant	Advocate On Record
1 2	WELSPUN INDIA LIMITED UIIUR SUBRAMANYA RAO	M/S TRIVEDI & GUPTA for :Respondent(s)  1 MR RAKESH GUPTA for :Respondent(s)  1 - 2

Presented On	: 06/03/2007	Registered On	: 06/03/2007
Bench Category	: DIVISION BENCH	District	: VALSAD
Case Originated From	: THROUGH ADVOCATE	Listed	: 60 times
StageName	: FOR FINAL HEARING
Act	LETTERS PATENT, 1865

OFFICE DETAILS

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	10/08/2010	APPEARANCE NOTE	MR PS CHAMPANERI ADVOCATE for PETITIONER(s)  1	-	MR PS CHAMPANERI:1-3
2	08/10/2010	APPEARANCE NOTE	(MR RM CHHAYA) ADVOCATE for PETITIONER(s)  1	-	(MR RM CHHAYA):1

COURT PROCEEDINGS

S. No.	Notified Date	Court Code	Board Sr. No.	Stage	Action	Coram
1	29/11/2012	6	26	FOR FINAL HEARING	NEXT DATE	HONOURABLE MR.JUSTICE JAYANT PATEL  HONOURABLE MR.JUSTICE MOHINDER PAL
2	24/12/2012	5	24	FOR FINAL HEARING	NEXT DATE	HONOURABLE MR.JUSTICE JAYANT PATEL  HONOURABLE MR.JUSTICE MOHINDER PAL
3	22/02/2013	4	51	FOR FINAL HEARING	NEXT DATE	HONOURABLE MR.JUSTICE RAVI R.TRIPATHI  HONOURABLE MR.JUSTICE R.D.KOTHARI
4	15/03/2013	3	-	FOR FINAL HEARING	NEXT DATE	HONOURABLE MR.JUSTICE RAVI R.TRIPATHI  HONOURABLE MR.JUSTICE R.D.KOTHARI
5	22/03/2013	3	-	FOR FINAL HEARING	NEXT DATE	HONOURABLE MR.JUSTICE RAVI R.TRIPATHI  HONOURABLE MR.JUSTICE R.D.KOTHARI
6	10/05/2013	3	7	FOR FINAL HEARING	NEXT DATE	HONOURABLE MR.JUSTICE RAVI R.TRIPATHI
7	27/06/2013	2	29	FOR FINAL HEARING	NEXT DATE	HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI  HONOURABLE MR.JUSTICE A.G.URAIZEE
8	12/08/2013	2	-	FOR FINAL HEARING	undefined	HONOURABLE MR.JUSTICE VIJAY MANOHAR SAHAI  HONOURABLE MR.JUSTICE A.G.URAIZEE

AVAILABLE ORDERS

S. No.	Case Details	Judge Name	Order Date	CAV	Judgement	View	Download
1	LETTERS PATENT APPEAL/512/2007	HONOURABLE THE CHIEF JUSTICE Y.R.MEENA  HONOURABLE MR.JUSTICE J.C.UPADHYAYA	24/04/2008	N	N	View	Download
2	LETTERS PATENT APPEAL/512/2007	HONOURABLE THE CHIEF JUSTICE MR. S.J.MUKHOPADHAYA  HONOURABLE MR.JUSTICE AKIL KURESHI	11/05/2010	N	N	View	Download
3	LETTERS PATENT APPEAL/512/2007	HONOURABLE MR.JUSTICE JAYANT PATEL  HONOURABLE MR.JUSTICE MOHINDER PAL	29/11/2012	N	N	View	Download
4	LETTERS PATENT APPEAL/512/2007	HONOURABLE MS. JUSTICE R.M.DOSHIT  HONOURABLE MR.JUSTICE SHARAD D.DAVE	25/07/2008	N	N	View	Download
5	LETTERS PATENT APPEAL/512/2007	HONOURABLE THE CHIEF JUSTICE Y.R.MEENA  HONOURABLE MR.JUSTICE ANANT S. DAVE	10/04/2007	N	N	View	Download
6	LETTERS PATENT APPEAL/512/2007	HONOURABLE MR.JUSTICE RAVI R.TRIPATHI  HONOURABLE MR.JUSTICE R.D.KOTHARI	15/03/2013	N	N	View	Download
7	LETTERS PATENT APPEAL/512/2007	HONOURABLE THE CHIEF JUSTICE Y.R.MEENA  HONOURABLE MR.JUSTICE J.C.UPADHYAYA	27/02/2008	N	N	View	Download
8	LETTERS PATENT APPEAL/512/2007	HONOURABLE THE CHIEF JUSTICE Y.R.MEENA  HONOURABLE MR.JUSTICE J.C.UPADHYAYA	02/04/2008	N	N	View	Download

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2014	As on 31.03.2013
Short-term Borrowings
Working Capital Loans from Banks		841.120
Total	NA	841.120

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular	As on 31.03.2013
Excise, Customs and Service Tax Matters	696.460
Income Tax Matters	135.770
Stamp Duty Matter	4.460
Sales Tax	36.810
Corporate Guarantees	7672.850
Bank Guarantees	82.490
Claims against Company not acknowledged as debts	3.660

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10481283	04/03/2014	10,650,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG,, BA  LLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	B97927073
2	10467453	06/12/2013	1,000,000,000.00	STATE BANK OF BIKANER AND JAIPUR	WELSPUN HOUSE, GROUND FLOOR, KAMALA MILLS COMPOUN  D, LOWER PAREL, MUMBAI, MAHARASHTRA - 400013, INDI  A	B92482405
3	10468684	05/12/2013	2,000,000,000.00	Bank of India	MUMBAI LARGE CORPORATE BRANCH, ORIENTAL BUILDING,  GROUND FLOOR, 364 D N ROAD, FORT, MUMBAI, MAHARAS  HTRA - 400001, INDIA	B92927847
4	10454107	27/09/2013	945,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BUILDING, GROUND FLOOR, 17, R. KAMANI MARG,  BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400013, IND  IA	B87122453
5	10413664	26/03/2013	840,000,000.00	Export-Import Bank of India	CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE,  COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400  005, INDIA	B71405740
6	10420866	26/03/2013	2,050,000,000.00	IDBI Bank Limited	CBG, 9TH FLOOR, IDBI TOWER, CUFFE PARADE, MUMBAI,  MAHARASHTRA - 400005, INDIA	B73487514
7	10391380	23/06/2014 *	6,926,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG, BA  LLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	C07991615
8	10350551	11/04/2012	340,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG, BA  LLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	B37832508
9	10351905	11/04/2012	340,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG, BA  LLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	B38284428
10	10322999	25/11/2011	900,000,000.00	IDBI TRUSTEESHIP SERVICES LIMITED	ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG, BA  LLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA	B27819218

* Date of charge modification

FIXED ASSETS

Tangible Assets

· Freehold Land

· Buildings

· Leasehold Improvements

· Plant and Machinery

· Vehicles

· Furniture and Fixtures

· Office Equipment

· Computers

Intangible Assets

· Computer Software

· Goodwill

PRESS RELEASE

WELSPUN INDIA ACQUIRES 13.03% EQUITY STAKE IN WELSPUN RETAIL

Feb 02, 2013

Welspun India Limited has informed BSE that the Company has acquired 13.03% equity stake in Welspun Retail Limited (a subsidiary Company) through the Company's wholly owned subsidiary. Pursuant to this transaction, the effective shareholding of the Company in Welspun Retail Limited stands at 98.03%.Source

CMT REPORT (Corruption, Money Laundering & 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 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 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.60.19
UK Pound	1	Rs.103.14
Euro	1	Rs.81.66

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUB
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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	--

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.