Dare to Commit

WELSPUN City entrance, Anjar, Gujarat.

Vision Statement .

and words of similar substance in connection with any discussion of future performance. whether as a result of new information. . 'expects'. although we believe we have been prudent in assumptions. This report and other statements that set out anticipated results based on the management's plans and assumptions. We undertake no obligation to publicity update any forward-looking statements. estimated or projected. Readers should bear this in mind. 'believes'. 'plans'. We cannot guarantee that these forward-looking statements will be realized. actual results could vary materially from those anticipated. 'estimate'. 'intends'. 'projects'. or should underlying assumptions prove inaccurate. future events or otherwise.Contents Corporate Information Chairman and Managing Director's Statement Directors' Report Corporate Governance Report Practicing Company Secretary’s Certificate Management Discussion and Analysis Financial Section 05 06 10 20 26 28 44 Forward looking statement In this Annual Report we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. Should known or unknown risks or uncertainties materialize. We have tried wherever possible to identify such statements by using words as 'anticipate'.

Penney.Greenhouse Gas Mitigation) Times of India & Jindal Steel Works. USA Dun & Bradstreet 2008 Earth Care Awards – (1st Runner Up .WELSPUN INDIA LIMITED Annual Report 2008 -09 YEAR 2008 2008 2008 AWARD / RECOGNITION 5 Star Award Supplier of the Year Indian Exporters Excellence Awards – Textile Sector BESTOWED BY Macy's Inc..C. USA J. 4 .

76. INDIA Tel: (0260) 2437437.400 013. Email: wttvapi@welspun.) Mr. Dadi B. Bandra (E). Dist. Fax: (0260) 2437088. Mandawewala Mr. Revathy Ashok (Director) Mr. Lower Parel. Goenka Mr. Engineer Mr. Mittal Registered Office and Works Welspun City. Dalal Street. Ram Gopal Sharma Remuneration Committee Mr. K. Bank of India State Bank of Patiala Bank of Baroda Oriental Bank of Commerce IDBI Bank Corporate Office Welspun House. Arun T odarwal Mr. Engineer (Director) Mr. A. Patil Auditors Price Waterhouse & Co. M. L. Dasgupta Mr. Senapati Bapat Marg. K. Audit Committee Mr. Gujarat – 370 110. Gujarat – 396 191. Dasgupta Mr. Vapi. R. A. R. Tal. M. D. Mumbai – 400 051 5 . R. Goenka Chairman & Managing Director Mr.CORPORATE INFORMATION Board of Directors Mr. R. K. Village Morai. B. K. Anjar. A.welspuntowels. Mittal (Executive Director – Finance) Company Secretary Mr. Arun Todarwal Share Transfer and Investor Grievance Committee Mr. Kamala City. Phiroze Jeejeebhoy Towers. Ram Gopal Sharma (Additional Director) Mr. B. K. Valsad. Dasgupta Mr. Mumbai – 400 051 The National Stock Exchange of India Exchange Plaza. Dist. Dasgupta (Director) Mrs.com th Stock Exchanges where the Company’s securities are listed Bombay Stock Exchange Ltd. Mandawewala (Joint Managing Director) Mr. Ltd. Mumbai . K. Arun Todarwal (Nominee – Dunearn Investments (Mauritius) Pte. Kutch.com Bankers: State Bank of Bikaner & Jaipur State Bank of India Punjab National Bank Andhra Bank Canara Bank Exim Bank Ltd. Bandra Kurla Complex. Dadi B. INDIA Tel: 022-66136000/ 2490 8000 Fax: 022-24908020 Website: http://www. L. Dadi B. A. 6 Floor. Engineer Mr. Fax: (02836) 279010 Works: Survey No. INDIA Tel: (02836) 661111. K.

'Weiji'. in the first half. Both companies. distribution. I strongly believe in the Chinese word for 'Crisis' i. energy cost etc. marketing. particularly Welspun Global Brands Ltd. This process has created a clear focus on each element of our business. to a complete U-Turn reversal in the second half. I always enjoy this forum as it gives me an opportunity to take a step back. I strongly believe that this Company has the potential of becoming one of the most sort-out Global 6 . is going to be our torch bearer in the International arena encompassing all brands. where Financial Institutes across the world were jolted creating the lowest confidence index since the depression days of 1920-30's. which is incidentally the central focus of Welspun. introspect on our achievements and short comings and evaluate prospects for the year ahead. the Board of Directors decided to demerge its non-core investments and its marketing and distribution network into 2 separate entities Welspun Investments Ltd and Welspun Global Brands Ltd respectively. To begin with. retrospect on the year that went by.e. This has been a very eventful year for the World economy from surge in commodity prices including cotton. 'Wei' means 'danger' while 'ji' means 'Opportunity'. customer relationship and international operations. We took multiple steps this year to create long-term sustainable values for our stakeholders.WELSPUN INDIA LIMITED Annual Report 2008 -09 Message from Chairman and Managing Director My dear fellow stakeholders.

'Quick Dry Towels' and 'The Perfect Sheet' are ideal examples of how innovation can enhance functionality in our product offerings. we offer comprehensive solutions to retailers all over the World to satisfy the complete range of consumer requirements. This facility is perhaps one of the best in the world utilizing latest technology in plant and machinery. Sorema. Welspun is truly a global brand Company with balanced portfolio and product offerings within Christy. The extension of a world-renowned brand license for fashion bedding. Today.brand companies and a force to reckon with in the home textiles segment. Our focus have facilitated our production lines to be operating at optimal capacity levels thereby retaining jobs in an environment where job losses have become synonymous within the textile industry. have enabled your company to remain competitive even in this macro environment. Gujarat. softening of commodity prices and energy costs. To widen 7 . Supported by our state-of-art manufacturing facilities and multi-location design studios. We also take pride in bringing consumer research driven innovations within our product offerings. In line with our strategy to offer more inter-related products within the home textile segment. Friends. particularly the US Dollar. Our initiative of setting up a factory in Mexico for the decorative bedding segment has played a key role in creating such enviable market position in the entire North American territory for the foresaid products. Gracciozza. Amy Butler amongst other well sort-after brands. India successfully commissioned its maiden bath rug manufacturing. coupled with rupee depreciation against global currencies. our factory at Vapi. fashion bath in addition to earlier license of towels and bed sheets is another example of how Welspun can enhance its brand personality by offering 360 degree product range within the home textile segment.

banks. my sincere appreciation to financial institutions. a project undertaken with HAY Group. K. sustainability has remained a prime focus for Welspun thereby enabling improvements in areas like energy efficiency. Last but not the least. we can consolidate our status of being the preferred partner with almost all top retailers of the World. I dedicate this space to the hard work of each and every Welspunite who stood like rocks in testing times and now ready to transcend with the opportunities ahead. thereby increasing efficacy and efficiency within all our employees. waste reduction and usage of eco-friendly material. The past one year 'Parivartan' (meaning 'change' in Hindi)..S. Recognizing our efforts.WELSPUN INDIA LIMITED Annual Report 2008 -09 our Global footprints. Governmental authorities and each Welspunite for their unflinching support. I believe. Finally I would like to put on record. bestowed their most prestigious 5 Star Award to Welspun. Macy's one of the most premium departmental chain in the U.S. Japan. equity partners. notably offices in San Francisco to cater to our client base in the West-coast of U. Yours sincerely B. We also plan to reach new markets particularly Mexico. Russia and China in our quest to be a truly Global Home Textile Company. we have expanded by opening new facilities at multiple locations. Goenka Chairman & Managing Director 8 . With our focus on cost optimization and our aim to be one of the largest producers of Home Textiles globally. we have all ingredients for being one of the largest and best home textile companies and for that I solicit your continued support. We dedicate this Global recognition towards the trust bestowed by our stakeholders. We have to live up to the true Chinese meaning of 'Crisis'. (World's leading Human Resource consultant) have re-defined roles and responsibilities within our organization. waste recycling.

India . India – Vapi. Gujarat.TERRY TOWELS Capacity – 45000 tons Facilities – Anjar. Gujarat.

your company undertook severe cost curbing exercise which not only mitigated to a great extent the impact but also sharpened the competitive edge to exploit business opportunities going forward.00 15.95 30.66 309. QUALITY AND RESEARCH & DEVELOPMENT Your Company continues to emphasize qualitative growth and believes that quality of its product has to be its strength in this complex market environment.23 Despite severe recession in the Company's major market geographies.28 1.65 4.65 % age to Total Income 98.692.38 2. During the period under report. 10 ..03.00 15. IV.34% y-o-y.692.03 1.86 262. Chairman of the Company and 'Babuji' of the Welspun family passed away for heavenly abode on December 28.656.00 2.6 13.67 1692.001. 1956. 2008.138.74 1. he is proposed to be appointed as a director. Particulars of activities relating thereto have been given in Annexure I hereto. AWARDS Your Company has been in recognition by spectrum of relations in textile arena and the following accolades add to the list of awards and honours received over the years: Ÿ '5 Star Award' by Macy's Inc.44 246. DIRECTORS During the year. your Company's Turnover increased by 8.59 % age to Total Income 98.03.26 100.001. Mr.08 - 2.62 3. Your Company is committed to bringing about positive change in each and every process and has a team fully focused on Research & Development. 2009. Your Directors welcome him on the Board. Gopi Ram Goenka.) Current year 31. FINANCIAL HIGHLIGHTS Particulars Turnover Other Income Total Income Profit before Interest. liable to retire by rotation. The Members.2008 12. Reduction in overall volume of Sales and adverse impact of foreign currency fluctuation arrested the growth in sales and reduced Profit Before Tax.66 1. at the ensuing Annual General Meeting. WELSPUN INDIA LIMITED Your directors have pleasure in presenting their 24th Annual Report on the Audited Financial Statement of the Company for the financial year ended 31st March.27 - (Rs.52 151. Improved quality fetched better unit value realization in both towel as well as bed linen.10 1935. Pursuant to section 257 of the Companies Act.62 2.40 171.89 -0.29 3.95 100.04 414. in million) Previous year 31. Depreciation and Tax (PBIDT) PROFIT BEFORE TAX (PBT) Less: Provision for taxation PROFIT / (LOSS) AFTER TAX (PAT) Add: Balance brought forward from the previous Year Profit available for appropriation Less : Transfer to Capital Redemption Reserve Add: Transfer from Debenture Redemption Reserve Balance carried to Next Year Earnings Per share (EPS) (Basic & Diluted) (Rs. 1956.00 29. USA Ÿ Four 'Gold Awards' by Cotton Textile Promotion Council of India III. Mr.79 257.37 -51. II.66 12.444.05 1.29 1.WELSPUN INDIA LIMITED Annual Report 2008 -09 DIRECTORS' REPORT To. Your directors pay homage to the departed soul and pray the almighty to give courage to the bereaved family to withstand the colossal loss.616. I. To counter the impact of recession on the business.2009 13. Ram Gopal Sharma has been appointed as an additional director of your Company pursuant to section 260 of the Companies Act.71 1.430.20 2.409.

UK (8) Christy 2004 Limited. Cyprus (3) Welspun Home Textiles UK Limited.80 per share i. Rajesh R. Since the grants were made at an exercise price equal to the closing market price at the time of grant. Your Company had granted 20. a statement giving certain information as required by the Ministry is placed along with the Consolidated Accounts. details about these directors are given in the Notice of the ensuing Annual General Meeting being sent to the shareholders along with Annual Report. The Company has adopted intrinsic value method for the valuation and accounting of the aforesaid stock options as per SEBI guidelines. The Board recommends their reappointment.each) to a whole-time director and employees including an employee of a subsidiary company at an exercise price of Rs. Had the company valued and accounted the aforesaid options as per the “Black Scholes” model.10/.05. K. Mexico (13) SOREMA . 212 of the Companies Act to the shareholders upon their request. (16) Besa Developers and Infrastructure Private Limited. VIII.000 stock options on 17th May. UK (10) Christy Europe GmbH.23per share. (1) Welspun USA Inc. FIXED DEPOSIT During the year under review. The fair value of the options as per the “Black Scholes” model comes to Rs. technology absorption and foreign exchange earnings and outgo is given in the Annexure I forming part of this report. 1956. EMPLOYEE STOCK OPTION SCHEME: The particulars required to be disclosed pursuant to Clause 12 of SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines. V. Mr.58.09 (30%) and 17.In the ensuing Annual General Meeting.. 110. Switzerland (12) Welspun Mexico SA de CV. VII. 2009. ENERGY. (11) Welspun AG. Mandawewala and Mr. 1956. 2006 (each option carrying entitlement for one equity share of the face value of Rs. the net profit for the year would have been lower by Rs. A.14.39 per option. 4.. Therefore.03 instead of Rs.4.each) would have been Rs. 63. 212 of the Companies Act. The Company shall provide a copy of Annual Report and other documents of its subsidiary companies as required u/s. UK (6) Welspun UK Limited (Formerly Christy UK Limited). 1999 are as under: During the year 2008 09. VI. UK (7) E R Kingsley (Textiles) Limited. 516. India. Dasgupta is an independent director. Mandawewala is a Joint Managing Director whereas Mr.10 (30%).Tapetes E Cortinas DE Banho. The dates of vesting of remaining options are 17. S. Holland are not attached herewith. (14) Welspun Global Brands Limited.A.000 were vested. UK (9) Christy UK Limited (Formerly Flyspark Limited). The stock option can be exercised during a period of 3 years from the date of vesting. your Company has not accepted any fixed deposit within the meaning of Section 58-A of the Companies Act. The “Black Scholes” model captures all the variables with their respective appropriateness which influences the fair value of 11 . K. 40% of the outstanding options i. (15) Welspun Investments Limited. UK (4) CHT Holdings Limited. India. TECHNOLOGY AND FOREIGN EXCHANGE Information in accordance with the provisions of Section 217 (1) (e) of the Companies Act. India. (17) Sorema Welspun Distribution and Logistics. UK (5) Christy Home Textiles Limited. Mr.36 mn and the Basic and Diluted earning per share (with face value of Rs. However. 1988. Spain and (19) Sorema Welspun Benelux. free of cost. no new stock options were granted. Further. 10/. regarding conservation of energy. Dasgupta will be retiring by rotation and being eligible have offered themselves to be reappointed. (18) Sorema Welspun España.e. A. 1956 and the Rules made thereunder.05. Government of India has exempted the Company from attaching the Annual Reports and other particulars of its subsidiary companies along with the Annual Report of the company required u/s. Till 31st March.e. the latest closing market price of the company's equity share at the time of grant. USA (2) Welspun Holdings Private Limited. SUBSIDIARY COMPANIES: Ministry of Corporate Affairs. the said Reports of the subsidiary companies viz. read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. no amount was required to be accounted as employee compensation cost. Portugal. Rajesh R.

as per the provisions of Section 219(1)(b)(iv) of the Companies Act. The other employees have been granted 12. 2006.90. equal to or exceedi ng 1% of the issued capital of the company at the time of grant Diluted Earnings Per Share (EPS) of Option calculated in accordance with Accounting Standard AS-20.WELSPUN INDIA LIMITED Annual Report 2008 -09 stock options. The significant assumptions to estimate the fair value of options as per “Black Scholes” model are : 1. h. k. (a) Details of options granted to / exercised by the Whole time Directors 1. 1956. f.000 NIL Total number of shares arising as a result of exercise of options shall be 12.71% 4. M. L. 4.000 NIL NIL NIL NIL Rs. number of options granted : : : 38 12. during any one year. Options lapsed /surrendered Variation of terms of Option Money realized by exercise of Options Total number of Options in force Particulars 20.000 No. of Options No. 17 May. of Options exercised granted j. Weighted average exercise price of options Weighted average fair valu e of options. 12 .00. i.000 31.000 stock options. m. Mittal.90.23 NIL Rs.00% Mr.000 of Rs. number of options granted Avg.e. 1975 as amended.2 years 3. the latest available closing market price of th share prior to the date of grant i. 2009 as required to be disclosed under the SEBI's guidelines are as follows: Cumulative position as on 31st March. Expected life of the option : 4.000 ---NIL 12. b. Mr. Risk-free interest rate : 7.579 Cumulative disclosure The particulars with regard to the stock options as on 31st March. The details of options granted to other employees are: Total number of employees Max. being a senior management personnel has been granted 90.68. d. the Report and Accounts is being sent to all the shareholders of the Company excluding the aforesaid information. 10/.39 As required by the provisions of Section 217(2A) of the Companies Act.000 The exercise price is Rs. 110. 7.63. g.80 per equity share i. the names and other particulars of the employees are set out in the Annexure to the Directors' Report. However.000 options. c.58. 2009 Nature of disclosure a. Options granted The pricing formula Options vested Options exercised The total number of shares arising as a result of exercise of Options.e. e. l.00. Mittal (b) Any other employee who received a grant in any one year of option amounting to 5% or more of options granted during that year. Executive Director (Finance). Expected volatility : 63. M. 516. Expected dividend yield : 0. Any shareholder interested in obtaining such particulars may write to the Company Secretary at the Registered Office of the Company.each.L. 90. 1956 read with the Companies (Particulars of Employees) Rules. Employees who were granted options.06% 2.

Banks. For and on behalf of the Board Mumbai July 30.K. it is hereby confirmed: (i) That in the preparation of the accounts for the financial year ended 31st March. creditors and Shareholders and for the devoted services rendered. GOENKA Chairman & Managing Director R. A separate report on Corporate Governance is annexed hereto as a part of this report. (iii) That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. (iv) That the Directors have prepared the accounts for the financial year ended 31st March. Staff and Workers of the Company. 1956. 2009 on a 'going concern' basis. 1956. ACKNOWLEDGEMENT Your directors express deep sense of appreciation for the assistance and co-operation received from the Financial Institutions. (ii) That the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for the year under review. MANDAWEWALA Joint Managing Director 13 . Government Authorities. R. 2009. for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. the applicable accounting standards have been followed alongwith proper explanation relating to material departures. Management Discussion and Analysis Report is separately given in the Annual Report. XI. 2009 B. Your Company continuously endeavors to follow healthy Corporate Governance practices to nurture interest of all stakeholders in the Company. by the Executives. with respect to Directors' Responsibility Statement. DIRECTORS' RESPONSIBILITY STATEMENT Pursuant to the requirement under section 217(2AA) of the Companies Act. X. CORPORATE GOVERNANCE Your Company believes that Corporate Governance is a voluntary code of self-discipline.IX. A certificate from a practicing company secretary regarding compliance of conditions of Corporate Governance as prescribed under Clause 49 of the Listing Agreement is attached to this report.

202. in Lac) Cost/ Unit of Furnace Oil (Rs.24 4 NATURAL GAS Quantity (Giga Calorie) Tot al Amount (Rs.41 - PRODUCTS Cotton Yarn & Te rry Towels and Bed Sheet Electricity Furnace Oil Coal Others 14 .97 110.71 9.47 199.42 - 5 B.824.918. CONSUMPTION PER UNIT OF PRODUCTION STANDARD Mt Kwh Ltr CURRENT YEAR 68.93 2.743 2.67 0.263.Ltrs) Total Amount (Rs.78 4.93 402.) 75.07 149.997.02 27.339.202.96 - 80.00 5.82 68.WELSPUN INDIA LIMITED Annual Report 2008 -09 Form A (See Rule 2) FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY 2008-09 A.Ltrs) Total Amount ( Rs.78 17.094.78 2.873.791 3. in Lacs) Cost / KWH Unit (Rs.71 - 199.78 1.90 3.97 4.21 4.530.81 3.19 35. POWER AND FUEL CONSUMPTION 1 ELECTRICITY (A) PURCHASED KWH Units (in '000s) Total Amount (Rs in Lac) Rate/Unit (Rs) (B) OWN GENERATION UNIT (I) Through Diesel Generator (Furnace Oil) KWH Units (in '000s) Unit per Ltr of Furnace Oil Furnace Oil Consumption (Rs. in Lac) Cost / Giga Calorie of Natural Gas (Rs.824 386.58 PREVIOUS YEAR 66.) (ii) Diesel Oil Quantity (K.685.45 20.24 4.71 2.88 3.) (II) Through Diesel Generator (Diesel Oil) KWH Units (in '000s) Unit per Ltr of Diesel Oil Diesel Consumption (Rs.58 111.340.286.36 5.49 3.863. in Lacs) Cost / KWH Unit (Rs.90 37.997.286. in Lacs) Cost / KWH Unit (Rs.75 - 2 3 COAL FURNACE OIL & HSD (i) Furnace Oil Quantity ( K.19 34.) OTHERS/INTERNAL GENERATION 195.25 6.) 2007-08 1.685.20 3.116.89 1.90 0.49 1.) 36.90 40.02 2.55 (III) Through Gas Turbine / Generator KWH Units (in '000s) Giga Calorie Consumption KWH per Giga Calorie of Natural Gas Gas Cost (Rs.14 9.727 195.733 4.70 3.19 8.282 7.00 2.00 3.90 10. in Lac Cost / Unit of Diesel Oil (Rs.41 4.

4) Bleach safe towel was introduced by incorporating cert ain chemicals during processing. Over all toweling production increased 10 Tons per da y in towel dyeing and in rugs plant. Shaggy rugs and artificial rugs and yarn dyed rugs. 1. enhancing the dyeing capacity by 10 Tons per day toweling production. This not only has replaced the non bio degradable PVA. In rugs plant Juki bar tracker. Hygro rugs . Use of cationic dyes as a method of creating design on towels. RESEARCH AND DEVELOPMENT (R&D) 01 Specific areas in which R&D is carried out by the Company : 1) Use of wool fibers in place of PVA fibers for manufacture of Hygro yarns. 03 Future plan of action 04 Expenditure on R&D (a) Capital (b) Recurring(PVA replacement) (c) Total (d) Total R&D expenditure as a percentage of total turnovers. Further it has resulted in addition to of a saving in cost per kg of towel to an extant of Rs 20/-. Dry nylon rugs. made towards technology absorption. import substitution. Hygro rugs. In rugs division new products in wool carpet. where unraveling of threads is prevented during industrial washes because of double row stitching. Product improvement. 02 Benefits derived as a result of the above efforts. product development. Dry Nylon rugs. Further innovation in bleach safe towel to eliminate any possible failure in the long run. Trial with natural dyes is to be made successful as the organ ic product with natural dyes will attract more buyers . 3. the samples have been appreciated in the market place. Dry nylon rugs.e. Technology absorption. Shaggy rugs and artificial rugs are introduced. The new technology has adaptability for producing wool based carpets.45 Lac NIL Rs. Open packet dyeing. 5) The liquor to material ratio has been reduced from 1:10 to 1:7 there by saving 30% water consumption. but also has brought down the cost by as much as Rs 20/. 3. 15 . adaptation. 2. 6) In rugs division new products in wool carpet. 1. thus making the towel bleach resistant i.FORM B (See Rule 2) FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION. 1. etc. in brief. 2. etc. 3) Introduced twin needle length hemming machines for catering to institutional towels. This has resulted in 70% improvement in production in embroidery as a result of reduced idle time.45 Lac - 02 Benefits derived as a result of the above R&D. cost reduction. adaptation and innovation 01 Efforts. 2) Spider Embroidery frame was introduced in place of normal embroidery frame. Three Numbers of MCS Machines of 1200 kg batch dyeing machines have been installed. Rs. Hygro rugs. Bleach safe towels has been put into the market and is expected to be received well. Wool hygro towels have proved to be new kind of hygro towel which has been accepted well in the market. which has reduced ETP load. the color does not fade or bleed even if bleach is used during domestic washing.per kg of Towel . Cut pile tufting and loop tufting and auto bulk dispensing and dosing system and Gerber comp cam machines have been installed. 4. Pegasus covering and overlock. and innovation. Tumble dryer. 4. Jumbo rewinding. Shaggy n rugs and artificial rugs are introduced. 2.

Matellese Weaves 6. reasons therefore and future plans of action. 2. Bleach Friendly towel and sheet 4. 4. cross-stitch etc. sheetings. following information may be furnished: (a) Technology imported 1. Dobby 4. Tumble dryers 5 machines in rugs Open packet dyers 4 machines Juki and Pegasus stitching 38 machines Garber Cutting one machine Lattex coating machine( Brukner) (b) Year of import (c) Has technology absorbed? been fully 2008-09 YES (d) If not fully absorbed. Technology absorption. 7.WELSPUN INDIA LIMITED Annual Report 2008 -09 FORM B (See Rule 2) FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION. 5. Jacquard 3. borer embroidery . MCS dyeing machines 3 nos. Antibacterial 2. Yarn dyed 5. MXL finish Special Collections: Developed special collections for high end buyers in TOB segments: Special Designs 1. blankets): 1. Vitamin E / Aloe 5. the se functional products have attributed to meeting the specific end use requirements (towels. Printing 2. adaptation and innovation 03 In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year). triple run. areas where this has not taken place. Flannel print collection • Sheets with specialty Finishes for enhancing performance like 1. Decorative stitch collections • • 16 . zig –zag. Embroidery with different stitches like single run. chawal embroidery . Luxury collection for sheet and towel 7. Eucalyptus towel and sheets 2. MXL specialised smart sheet 5. 6. Moisture Management 3. Not applicable Research and Development (R&D)(Anjar Plant) 01 Specific areas in which R&D is carried out by the Company : In continuation with innovation of new products-developed wide range of new functional products for varieties of end uses have been developed. double run. piping stitch. 3. Metallic Finish 4. Quick Dry (Ecolite Towel) 6. satin serial. Cotton touch sheet 3.

FORM B (See Rule 2) FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION. 2. Incorporated Mitsubishi – singing machine in sheeting where double singing in one operation Incorporated single end sizing machine in case of sample which is minimized the loss of production for sampling. this is a unique product & market demanding value addition on sheeting fabric. 3. To create wider range of Sheets. Incorporated MXL finish fabrics through Matex 6000 Monforts machine where sheets will be wrinkle free. fast and cost effective. 01 Efforts. and processing to packing. 8. Future plan of action Expenditure on R&D (a) Capital (b) Recurring (c) Total (d) Total R&D expenditure as a percentage of total turnover. Incorporated New Sanforizing machine at sheeting (Monforts-Monfortex-finishing shrinker) for effective finish on fabric. 6.09% • • • • 02 03 04 Benefits derived as a result of the above R&D. Knotting the Union. Maa . Installed new finishing process of Anglada for improving quality & production in towel. made towards technology absorption. Fins and Oysters for Kid’s bedding . weaving. 13. Earlier the system was fully manual and now with the help of automatic system the process has become more reliable. towels and ‘Top of the Bed’ collections in future with innovations. 10. Widened the range of products and create a brand image for better penetration in market. 11. This technology helps pile orientation thru air knife technology and drying in hot air resulting unique look of the towel. Post pone Sun -rise. 14. .3million 0. Adopted new technology in dyeing –( thermosol dyeing Monforts Thermex machine) which improve quality as well as production also. Ready access for information anywhere in the world with the plant for customer enquiries and tracking. in brief. adaptation and innovation. Up-gradation in ERP system to accomplish growing need of fast material tracking. Incorporated fully automatic cut & sew system (sheeting ) -Texpa -espritex which also improve productivity & quality. 17 . Nationalist Buoyancy for Living room items . 12. 4. certified by International agencies (SKAL & IMO) Adopted new technology of drying in towel (Alea Dryer). 5. As on date. data management. 9. Incorporated auto-conveyer system (E-tone from Sweden) at cut & sew (sheeting) to improve product quality and productivity. The Ethos. quality. Incorporated new technology of auto-drawing (Staubli-from Germany) in sheeting weaving. Organic product processing established and we are certified manufacturers to manufacture organic products. NIL Rs12. Incorporated in sample process Suzuki single end warping machine this is help faster processing sample without hampering suffering loss of production. Technology absorption. adaptation. 15. Designed processes to manufacture products made from special fibers. 16. 7. and ready access to useful information.like Barren Beauty. Incorporated auto-cutting system (Hauser-COMTAC-3000) in sheeting cut & sew section enabling us to improve productivity. 1. Better Connected . and innovation. The Santa Kukri for bedding. spinning.3 million Rs12. Research and Development (R&D)(Anjar Plant) Blankets Flannels collections both print and solid Flexi fit sheet with different color pallets Innovative approach of making TOB beds and Living room collections depicting different themes.

cost reduction. Germany & Mitsubishi. 02 Benefits derived as a result of the above efforts. 03 1. Initiatives taken to increase exports. Product improvement. Printing from Stork. Imported new embroidery m/c Meca which is completely automatic & digital base. Japan and Dornier. MXL finish m/c Matex 6000 from Monforts. Imported world’s best quality Testing lab equipments in spinning from Uster. Used : Rs. 4. 3. Looms from Psudokama. following information may be furnished: (a) Technology imported Better feel and finish for the product to help better market penetration The continuous effort has resulted in achieving improvement and consistency of product quality. In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year). Imported Singeing Osthoff.30 million Earned : Rs. & Kissoki. CDR from Benninger. Switzerland/ USA. Not applicable Foreign outgo: exchange earnings and Activities relating to exports. PTR. Japan. Development of new export markets for products and services and export plans. Total foreign exchange used and earned. adaptation and innovation. Japan. Technology absorption. (b) Year of import (From year 2004to2008) (c) Has technology absorbed? been fully Yes (d) If not fully absorbed. 2. etc. Stenter from Monforst and best quality Sanforiser (from Monforts) and Calendering m/cs from Kusters .WELSPUN INDIA LIMITED Annual Report 2008 -09 FORM B (See Rule 2) FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION. 2179. reasons therefore and future plans of action. areas where this has not taken place. 9224.35 million 18 . etc. import substitution. Preparatory (Warping/ Sizing) from Benninger. product development.

BASIC BEDDING Capacity – 3 million units Facilities – Mexico .

The composition of the Committee and attendance of 20 . 2008.e.1C 4M 4M. III. I = Independent.f. I NE. 2009.R. E. C P. C = Chairperson. number of other companies on the Board or Committees of which. S E NE. Abbreviations: P = Promoter. 2008 and 31st January.Goenka .2009) Mr. S = Shareholders. 28th July. 29th May. E = Executive. Board lays strong emphasis on transparency.2008 and retired at AGM 27. Five meetings of the Committee were held during the year under review (17th May.L. The Chairperson of the Committee is an independent director. A.10. dates on which held.2009 I. 2008.*Chairman & Managing Director (Chairman w. D. 2008.Mandawewala – Joint Managing Director Mr.K. G. L = Lenders.K Dasgupta Mrs. II.f. 16.e. of Category Attended during the Last AGM Board Committees Overthe Year 2008-09 (attended) including other PLC PTC Other seas Companies @ P P. B. I NE. Composition: The Audit Committee was constituted by the Board of Directors in the year 1997.2008 and again appointed w. I 0 4 4 5 3 4 0 2 5 3 YES 13 15 14 9 2 1 4 2 2 1 7 2 6 3 1 4 13 2 3M 2M.2008) PLC = Public Limited Company incorporated in India PTC = Private Limited Company incorporated in India Over-seas = Bodies Corporate incorporated outside India Other = Others including companies Incorporated under Section 25 of the Companies Act @ Finance & Administration Committee. R. M = Member. 31st October.01. AUDIT COMMITTEE A.12. 2009). 28th July. 2008. Philosophy on Corporate Governance: Board of Directors of the Company acts as a trustee and assumes fiduciary responsibility of protecting the interests of the shareholders and other stakeholders of the Company. B. Composition and category of directors. 1C 1M Name of Director Mr. NE = Non-Executive.Executive Director (Finance) Mr.Goenka (Died on 28. 31. In order to attain the highest level of good Corporate Governance practice. Revathy Ashok Mr. 31st October. Five meetings of the board of directors were held during the financial year 2008-09. Remuneration Committee & Project Management Committee memberships not included as the same are not considered with reference to the limit of the committees on which a director can serve.B. accountability and integrity. M. 2008. E. S NE. and number of board meetings. Board supports the broad principles of Corporate Governance.Mittal .ships Board Meetings Attendance at (As declared to the Company) Chairperson (C) in No. Ram Gopal Sharma (appointed on 25. R . are as under: Member (M) / No. Engineer Mr. I NE. Arun Todarwal – Nominee – Dunearn Investments Mr. of other Director.09.08. One each on 30th May. attendance of each director at the board meetings and the last AGM. Bala Deshpande Mrs. 15th September. 2008 and 31st January.2008) Mr. Terms of reference: The terms of reference stipulated by the Board of Directors to the Audit Committee are as contained under clause 49 of the Listing Agreement. 2C 1M 2M 3M. a director is a Director.WELSPUN INDIA LIMITED Annual Report 2008 -09 CORPORATE GOVERNANCE REPORT . 2008. Board of Directors. I NE.

the members is given hereunder:
Name of Member Mr. D. B. Engineer Mrs. Bala Deshpande Mr. Arun Todarwal Mr. A. K. Dasgupta Mr. R. G. Sharma (Since 16.10.2008) Member/ Chairman Chairman Member Member Member Member Category Non-Executive Independent Non-Executive Independent Non-Executive Shareholder Non-Executive Independent Non-Executive Independent Number of Meetings Attended 4 0 5 5 2

The Company Secretary of the Company, Mr. D.K. Patil is the Secretary of the Committee. Executive Director (Finance), Internal Auditors and Statutory Auditors attended each of the meetings as per the provisions of section 292A of the Companies Act, 1956. IV. REMUNERATION COMMITTEE: The Remuneration Committee was constituted by the Board of Directors in its meeting held on 22nd June, 2002. One meeting of the Committee was held on 28-07-2008 during the year. The terms of reference, compositions are as under: a. Terms of reference: To recommend appointment of Managerial Personnel and consider the remuneration payable to them and review thereof from time to time. b. Composition:
Name of Member Mr. A. K. Dasgupta Mrs. Bala Deshpande Mr. Arun Todarwal Member/ Chairman Chairman Member Member

c. Remuneration to Executive Directors The details of remuneration paid/ payable to the directors for the Financial Year 2008-09 are as under: 1) Mr. B.K Goenka - Chairman and Managing Director
* @ 1 % on the profits determined under Section 349 of the Companies Act, 1956.

(Rs. in million)

Salary & Allowances Perquisites Commission * Service Contract Tenure Notice Period Severance Fees Stock Option

2.85 Dated 04-11-2000 extended upto 10-10-2010 11-10-2005 to 10-10-2010 1 Month NIL NIL

2) Mr. R.R. Mandawewala Joint Managing Director
* @ 1 % on the profits determined under Section 349 of the Companies Act, 1956.

Salary & Allowances Perquisites Commission * Service Contract Tenure Notice Period Severance Fees Stock Option

(Rs. in million) 1.90 0.26 Upto June 30, 2011 subject to reappointment upon retirement by rotation and approval of the members in the ensuing Annual General Meeting 1 month NIL NIL

21

WELSPUN INDIA LIMITED
Annual Report 2008 -09

3) Mr. M.L.Mittal - Executive Director (Finance) D. Remuneration to Non Executive Directors:
(Rs. in million)

Salary & Allowances Perquisites Commission Service Contract Tenure Notice Period Severance Fees Stock Options (Granted)

2.97 0.19 Upto June 30, 2011 subject to approval of the members in the ensuing Annual General Meeting 1 month NIL 90,000

The Non Executive Directors do not draw any remuneration from the Company. Non Executive directors are entitled to the sitting fees for every meeting of the Board and Audit Committee attended. Non Executive Directors are paid Rs. 5,000 for attending a Board Meeting, Rs. 3,000 for Audit Committee Meeting and Rs. 3,000 for Remuneration Committee Meeting. SHARE TRANSFER AND INVESTOR GRIEVANCE COMMITTEE
Sr. No. 1 2 3 4 5 6 Director Mr. D. B. Engineer Mr. A. K. Dasgupta Mrs. Bala Deshpande Mrs. Revathy Ashok Mr. Arun Todarwal Mr. Ram Gopal Sharma Fees paid for attending Board and Committee Meetings 27,000 38,000 0 10,000 43,000 21,000

V.

The Share Transfer Committee was constituted by the Board of Directors at its meeting held on 30th December, 1996 and was later on renamed and re-constituted as Share Transfer and Investor Grievance Committee. The Chairman of the Committee Mr. A. K. Dasgupta is a Non Executive Independent Director. The Committee meets once in a fortnight. Compliance Officer: Mr D.K. Patil - Vice President (Legal) & Company Secretary. a. Constitution of the Share Transfer and Investor Grievance Committee and attendance in its meetings: b. Number of Shareholders complaints received during the year:
Name of Member Mr. A. K. Dasgupta Mr. B. K. Goenka Mr. R.R.Mandawewala Mr. M.L.Mittal Member/ Chairman Chairman Member Member Member Meetings attended 23 17 16 18

During the Year under review, total 90 Investor complaints were received. Break-up of number of complaints received under different category is given hereunder: All the complaints received during the year under review were solved within the time limit to the satisfaction of the
Sr. 1. 2. 3. 4. 5. 6. 7. 8. Nature of Grievance Non receipt of Share certificates after transfer Non receipt of warrant Non receipt of end stickers Non receipt of Annual Report Non receipt of demat credit / remat certificate Rejected demat request Non receipt of exchange certificate Others Total Nos. 20 5 1 16 35 2 2 9 90

investors/shareholders and no complaint is pending as at 31st March, 2009 for a period over 30 days.

22

VI. MANAGEMENT a. Management Discussion and Analysis Management Discussion and Analysis of various businesses of the Company will be separately given in the Annual Report. b. Disclosures by Management to the Board All details relating to financial and commercial transactions where directors may have a pecuniary interest are provided to the Board, and the interested directors neither participated in the discussion, nor do they vote on such matters. VII. GENERAL BODY MEETINGS The details of Annual General Meetings held in the last three years are given hereunder:
Meeting st 21 Annual General Meeting nd 22 Annual General Meeting rd 23 Annual General Meeting Day & Date of Meeting rd Wednesday, 23 September, 2006 th Saturday, 29 September, 2007 th Saturday, 28 September, 2008 Time 10.30 a.m. 10.30 a.m. 10.30 a.m. Place Registered Office : Survey No.76, Village Morai, Vapi, Dist. Valsad, Gujarat – 396191 Registered Office : Survey No.76, Village Morai, Vapi, Dist. Valsad, Gujarat – 396191 Registered Office : Survey No.76, Village Morai, Vapi, Dist. Valsad, Gujarat – 396191

VIII. DISCLOSURE a) Details of related party transactions Refer Note No. 22 (ii) of Schedule 19 to the Accounts in the Annual Statement for list of related party transactions. b) Details of information on appointment of new directors A brief resume, nature of expertise in specific functional areas, names of companies in which the person already holds directorship and membership of committees of the Board and his shareholdings in the Company forms part of the Notice of General Meeting, annexed to this Annual Report. c) Details of non-compliance There was no non compliance by the Company, nor there was any penalty or stricture imposed on the Company by the Stock Exchange or SEBI or any authority on any matter related to capital market during the last 3 years.

IX. MEANS OF COMMUNICATION The Company published its un-audited quarterly results / audited annual financial results in one or more of the following newspapers: (i) Western Times (English and Gujarati Editions) (ii) Business Standard (English Edition) (iii) Economic Times (English Edition) (iv) The Financial Express (English Edition) Results are published immediately after the same are approved / taken on record by the Board of directors. Address of Website on which quarterly results are posted: www.welspun.com Management Discussion and Analysis form part of this Annual Report. X. GENERAL SHAREHOLDER INFORMATION AGM will be held on Wednesday, 30th September, 2009 at 10.30 a.m. at the Registered Office of the Company at Welspun City, Village Versamedi, Taluka Anjar, District Kutch, Gujarat 370 110. Financial Year of the Company is 1st April to 31st March. Date of Book Closure: 18th September, 2009 to 25th September, 2009 (Both days inclusive) Dividend payment date: Not applicable. Listing on Stock Exchanges: Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The equity shares of the Company have been voluntarily delisted from Ahmedabad and Delhi Stock Exchanges and all the
23

Suresh Kadam 24 .06 9.10 2959. Bhandup (West). Stock Code: Bombay Stock Exchange : 514162 National Stock Exchange : WELSPUNIND (SERIES BE) Market Price Data: High & Low price of equity shares on Bombay Stock Exchange Limited is as under.00 17.00 20.) 57.400078 Contact person: Mr.860.95 Closing price of Shares (Rs.60 36.70 40.) 43. Market Price Data: High & Low price of equity shares on The National Stock Exchange is as under.50 Closing price of Shares (Rs.60 Low Amount (Rs.2008 Nov .75 14.415.10 35.25 16. Pannalal Silk Mills Compound.) 58.647.05 14.00 3921.2009 Feb .2008 Aug .45 16.95 17.WELSPUN INDIA LIMITED Annual Report 2008 -09 formalities for delisting of equity shares from Calcutta Stock Exchange have been completed and formal intimation is awaited.35 Registrar and Transfer Agent: The Company has appointed Registrar and Transfer agent to handle the share transfer work Month Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2008 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 BSE Index 17.00 49.092.57 13.75 18.2008 Jan .10 16.2008 May .00 33.00 14.80 49. Month Apr .50 28.20 13.20 17.40 and to solve the complaints of Shareholders.75 50.00 36.60 35.25 20.90 18.70 50.20 Performance in comparison to broad-based indices i.10 20. BSE Sensex and NSE S & P CNX is as under: Month Apr .355.2008 Jan .20 17.2009 Feb .287.2008 Nov .55 4332.10 4040.) 43.53 12.61 9.65 48.00 24.2009 Mar .) 52.00 64.80 2763.2008 Oct .2009 High Amount (Rs.00 43.2008 Aug .25 12.95 41.00 17.90 4870.60 35.90 24.50 15.2009 Mar . Address and telephone number of Registrar and Transfer Agent is given hereunder: M/s.2008 Sep .e.60 14.2008 Sep .2009 High Amount (Rs.43 9.90 64.90 37.30 22.00 Low Amount (Rs.25 38.424.00 13.65 3020.2008 Jun . Mumbai .2008 Oct .31 9.) 53.461.2008 May .31 16.70 48.2008 Dec .708.20 34.564.30 20.60 2755.2008 Dec .95 39.50 15.00 36.891. LBS Marg.00 44.15 39.50 27.24 8.95 4360. Link Intime India Private Limited Unit: Welspun India Limited C-13.00 33.2008 Jun .00 27.50 15.55 23.40 NSE Nifty 5165.72 9.2008 Jul .788. Name.90 35.20 2885.50 39.20 24.45 43.95 11.50 27.00 50.2008 Jul .70 39.00 34.20 36.00 17.15 2874.35 25.

00 10. Dist.00 14.com Sep 08 Mar 09 Oct 08 Feb 09 Jan 09 0.00 16.00 0.00 Total No. Gujarat .286 4.00 10.above Total No.00 40.37.000.48.00 BSE & Welspun India Limited 20.37.02 0.00 25 Share Price 4000 40.604 6.00 60.86 1.19 1.00 50. Distt.190 7.03 0. Vapi.00 20.00 50.29 0.66 0.00 . of shares held 60.00 8. Village Morai.000.57 0.01 0.00 2000 1000 0 May 08 Nov 08 July 08 Dec 08 Apr 08 June 08 May 08 Nov 08 July 08 Dec 08 June 08 Aug 08 Sep 08 Mar 09 Oct 08 Feb 09 Apr 08 Jan 09 Aug 08 Sensex Welspun India Ltd Month NSE NIFTY Welspun India Ltd Month Outstanding GDR's/ADR's/Convertible ( As at 31/3/2009) Nil.00 18. of shareholders 36. of Equity Shares held Upto-5000 5001-10000 10001-20000 20001-30000 30001-40000 40001-50000 50001-100000 100001.00 NSE & Welspun India Ltd 6000 60.18.00 10.37.348 7.000.519 Percentage of Shares held 8.20 100.89.03 0. if the same are found in order.396191 (India) and Village Varsamedi.760 8.00 2. Tal Anjar. Mumbai .608 4. Lower Parel. Gujarat 370110 (India) Address for correspondence: Company Secretary Welspun India Limited B Wing. Valsad.203 83 51 20 12 3 12 24 36. Kachchh.06 0.30.23 0.000.76.000.00 0.000. +91-22-66136000 Fax: +91-22-4908020 E-mail : CompanySecretary_WIL@welspun.400 013 Tel: +91-22-4908000.00 5000 Sensex NIFTY 12. Distribution of Shareholding: Dematerialisation of shares and liquidity: 98.21 87.14 0.00 30.000.07 100.79.408 Percentage of Shareholders 99.00 20.000.844 1. Plant locations: Survey No.879 6.000.25.000.44 0. 9th Floor.00 Share Price 3000 30.Share Transfer System: Shares sent for transfer in physical form are registered by the Company's Registrars and Share Transfer Agents within 20 days from the receipt of the documents.84% have been dematerialized and has reasonable liquidity on Bombay Stock Exchange.00 6.00 4.56. No. Shares under objection are returned within two weeks. Kamala Mills Compound.85. Trade World.

S. Company Secretaries Sanjay S. there were no investor grievance remaining unattended/pending for more than 30 days. We state that in respect of investor grievance received during the year ended 31st March. For S. In our opinion and to the best of our information and according to the explanation given to us. 2009. Risbud & Co. 2009. Risbud Proprietor Mumbai July 30. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company. as stipulated in Clause 49 of the Listing Agreement of the said Company with Stock Exchanges. 2009 26 . the Registrars of the Company have certified that as at 31st March. It is neither an audit nor an expression of opinion on the financial statements of the Company. Our examination was limited to procedures and implementation thereof. The compliance of conditions of Corporate Governance is the responsibility of the management. we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.WELSPUN INDIA LIMITED Annual Report 2008 -09 Practicing Company Secretary's Certificate TO THE MEMBERS OF WELSPUN INDIA LIMITED We have examined the compliance of conditions of Corporate Governance by Welspun India Limited for the year ended on 31st March. 2009. adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance.

DECORATIVE BEDDING Capacity – 1 million sets Facilities – Mexico .

8 percent in the last four fiscal years (2003-4 to 2006-7). the Indian economy grew @ 6. performances or achievements.” and “expected” and other similar expressions as they relate to the Company or its business are intended to identify such forward-looking statements. In 200708 there were visible signs of a slowdown in the developed economies which exacerbated with the fall of several large financial institutions in the US and Europe during 2008. is the hallmark of servicing our consumers better and being one of the largest and the most respected Home Textile Company in the World! Rajesh R. The economy has been growing at an average growth rate of 8. When used in this discussion.” “believe.” “intend. one-of-its-kind design studio and stringent practices on sustainability.6 million bales. Europe and Japan entered into a recession.” “estimate. Mandawewala Joint Managing Director BUSINESS ORGANIZATION Overview of the Indian economy The Global economy saw a period of high growth from 2003.8 per cent which was estimated to grow at 15 to 18 per cent.2% in 2007-08. rising foreign exchange reserves and rapidly expanding FDI inflows. However.5%. The Government has taken initiatives to stimulate the economy. With positive indicators such as a stable 8-9 percent annual growth. The slowdown had a huge impact on the world economic growth in 2008 as all the developed economies of USA. down 7. 28 .” “will. Welspun’s wide range of products provides one-stop solution in Home Textiles . Actual results.from terry towels to bath rugs & robes and from bed linen to decorative bedding. Inspite of the current global crisis.5 to 6. The Indian industry is likely to see a lot of capacity additions in 2009-10 in various Industry sectors. The World Textile overview The world cotton production for 2008-09 is estimated at 111.6 percent being the highest in the last decade. future events. The Company undertakes no obligation to publicly update or revise any forward-looking statements. Dec 2008) The manufacturing sector in India has also been adversely affected by the global slowdown growing by a meager 2. or otherwise.4 million bales in 2007-08 to 116. Readers are cautioned not to place undue reliance on these forward-looking statements as these are relevant at a particular point of time & adequate restrain should be applied in their use for any decision making or formation of an opinion. risks and opportunities could differ materially from those expressed or implied in these forward-looking statements.5% during 2009-10. (Source: IBEF Presentation on Textiles and Apparels. Our innovative product portfolio. It is estimated by the International Monetary Fund (IMF) that in 2009 the world economy will contract by 1. While the growth is expected to slow down further in 2009-10 but most of the agencies believe that India will still grow at 5. with the 2006-7 growth rate of 9.4% from 2007-08.9% in 2010.6 million bales in 2008-09.3% and show a modest recovery of 1.4% in 200809 against 8.WELSPUN INDIA LIMITED Annual Report 2008 -09 MANAGEMENT DISCUSSION AND ANALYSIS Readers are cautioned that this discussion and analysis contains forward-looking statements that involve risks and uncertainties. on the Indian textile export front the country could only achieve a growth rate of at 11. the words “anticipate.2007 with the world economy growing at a CAGR of 4. The following discussion and analysis should be read in conjunction with the Company's financial statements included herein and the notes thereto. India's economy is on the fulcrum of an ever-increasing growth curve. The lack of credit.7% during 2008-09. India has emerged as the second fastest growing major economy in the world after China. whether as a result of new information. The global cotton consumption is also expected to reduce from 123.

48% in 2008. The global Textile & Clothing trade was estimated at US $ 598 billion in 2008 recording a growth of 2. from 15.88% (albeit much slower than the growth of 17. The Indian Textile industry overview The textile industry plays a crucial role in the Indian economy.5%.8 million bales in 2001-2 to 31 million bales in 2008-09. In the first half of 2008-09 the commodity prices like cotton. China State Council recently announced further policies including tax breaks. have paralysed the performance of the Indian textile industry. It contributes about 14 per cent to the industrial production of the country. The yield per hectare has also improved drastically from 278 kgs In 2000-01 to 526. (including the organized & unorganized sector) (1. As of March 2009. year 2008-09 was a tough year for the Indian textile Industry. another 50 million people are engaged in allied activities. the prices crashed after September 2008 and reached lows in the second half of 2008-09.33 million looms. The UK market also showed a decline in imports of Cotton made ups by 6%. However. Germany showed an increase of 4. (Source: Texprocil) India has overtaken the US to become the world's 2nd largest cotton producing country. with an improvement in the business sentiment since April 2009. It contributes 16 percent to gross export earnings and 4 percent to national GDP. export rebates. it has a total market size of USD 52 billion and accounts for 26 percent of the manufacturing sector. Besides. Textiles sector has been identified as one of the priority sectors having high growth potential and higher multiplier effects for employment generation. The total T & C exports from China reached US $ 34.24% shown in 2007) and Japan showed an increase in imports by 14. In addition to the global economic crisis some other steps taken by the government like 40% increase in the minimum support price (MSP) of raw cotton. Textile and clothing industry plays a dominant role in the country's economy. hardening of bank interest rates etc. The world trade in cotton made ups was estimated at US$ 33. India accounts for: Ÿ Ÿ Ÿ Ÿ * 41 percent of the global loomage. bulk discount offered by CCI.4 billion in 2008 considering a growth rate of 4. out of this 1. fuel and other inputs like power. dyes & chemicals were at multi year highs. 20 percent share in the total world trade of cotton yarn. drastic reduction in export incentive. heavy backlog in government dues. 20 percent of industrial production and 18 percent of industrial employment.06 billion in Jan-Mar'09 a drop of 9% Y-o-Y. the latest being an increase from 15% to 16% effective 1st April 2009. employing nearly 35 million people & accounting for 20 per cent of the total workforce of the nation. (Source: Texprocil Newsletters. after China.7 million out of 236 million spindles) * # 12 percent of the world's production of textile fibres and yarn. BT cotton was a major factor contributing to higher rate of production. The world trade in cotton textiles in 2008 was estimated at US $ 96. financial access and expanded export credit insurance to support the exporters.International Textile Manufacturers Federation 2008 Shipment Statistics # Texprocil) However. with the clothing trade at US $ 363 billion and textile trade at US $ 235 billion. As of 2008. the prices have again increased by 15-20%. introduction of trade protection measures.70 billion. as per a study by International Service for the Acquisition of Agri-biotech Application. it is the second largest after agriculture.sharp drop in cotton prices and a drop in cotton consumption led to difficult conditions for the cotton industry across the world.4%. As regards employment. currency appreciation and increase in raw material cost. (38. The key reasons for this are slackening demand. Even in 29 . The Chinese government has increased the tax rebate on textile exports five times since August'08.15 kgs in 2008-09.93% supported by the appreciation in the Japanese Yen (20%).3 million are non mill sector powerlooms) 16 percent of the global spindlage. USA which is the largest market for Cotton made ups in the world registered a marginal decline of 1.2009) China which is the largest cotton producer in the world and exporter of Textile & Clothing has been facing a difficult period since the beginning of the global economic crisis. Its contribution to forex earnings is around 14 per cent. 5% export incentive for cotton exports. (US $ 2 billion out of $ 10 billion) # (Source: * ITMF .38 million out of 3. Even the best performing mills in the country have incurred huge losses for the last two years.

As per a recent survey conducted by the trade bodies on the Textile & Clothing Industry. the exports are heavily tilted towards the US and European market (70%). Besides this. This provides a huge opportunity for companies like us with a global manufacturing footprint to cater to these markets. It will require a well defined multi prong strategy to achieve this kind of growth in the current challenging environment. there has been a closure of a lot of small manufacturing units. JMA. THE HOME TEXTILE INDUSTRY The global home textiles industry is estimated at US$ 70 billion (at the retail level) with US and EU together accounting for nearly 70% of the overall market. household linen. However. the Indian Textile & Clothing exports dropped by 2% to US $ 21. The manufacturing plants in USA and Europe have been shutting down and adapting their business model to either relocating to low cost manufacturing locations (as done by Springs Global in moving to Brazil and WestPoint Home getting products manufactured from Bahrain and Pakistan).WELSPUN INDIA LIMITED Annual Report 2008 -09 competing manufacturing locations like China and Pakistan.7 billion. The domestic demand accounts for more than 60% of the Indian textile and apparel industry. La Meirinho on the brink of closure. However. mature and well-established production base. increase in consumer spending led to an increase in the US and European home textile markets. reducing the dependence on the international markets. In the current scenario. reduction in raw material prices and improvement in cost efficiencies by the companies. (Source: OTEXA) Even in case of Europe. India and Pakistan and other emerging manufacturing locations like Bangladesh and Vietnam have been increasing since 2004 after the end of quotas. with the drop in sales of new homes and most of the developed economies entering a recession the overall home textiles market stagnated in 2008. It also wants to secure a 7% share in global T&C trade by the end of the Eleventh Five Year Plan. the companies across the value chain have been adversely affected by the global economic slowdown. USA imports of home textiles account for nearly 75% of the overall market. sourcing from Asia or getting acquired by companies from these manufacturing centres. curtain tapestry and yardage made with different textures and varying thickness.5 percent and 12 percent CAGR respectively during the tenth five year plan. due to the economic crisis.europa. The imports from China. which is a pretty challenging target. 2009) Growth Plan for textiles and apparel industry The Indian domestic and export markets for textile and apparel grew at 6.eu) During 2004-2007. (Source: Texprocil Newsletter. manufacturing companies from Portugal have been struggling with many small companies like Mundo Textil.75 billion in 2008-09 in which Textile exports accounted for US $ 12. sales of new homes. 30 . Thus. India has several advantages in terms of abundant supply of cotton and human-made fibre. government incentives to exporters and entry of foreign retailers into the Indian market would also act as a fillip to retail sourcing from India. ec. (Source: OTEXA) In the current scenario. (Source: Home Textiles Today. The Indian textile & clothing industry is estimated to grow from USD 52 billion in 2008-09 to USD 115 billion by the year 2012. Ministry of Textiles has targeted a growth of 16% per annum for the Indian T&C industry to reach US $ 115 billion by the end of Eleventh Five Year Plan. This figure is expected to go up with the finishing facilities for Towels and basic bedding manufacturing plants also moving out of the USA. The outlook for textile industry in India is optimistic. it appears difficult to achieve the target of US $ 40 Billion in 2009-10 as planned in the 11th five year plan. The performance is however expected to improve in the coming quarter with improvement in Demand. It is expected that Indian textile industry would achieve 7-8% growth rate in the remaining period of the 11th Five year plan. cheap and skilled labour and good design capabilities. However. India produces a wide range of home furnishings. the global growth. the projected growth rate is 34 percent per annum during these years. comprising domestic market of USD 60 billion and exports of USD 55 billion.7 billion and Garment exports accounted for US $ 9.

Emerging economies have been affected China GDP growth slowed to 6. ADVANTAGE INDIA Building Sustainable Business Model Ÿ Availability of Cotton with a marginal cost advantage: As mentioned above India is now the second largest cotton manufacturer in the world after China.7 billion (only 3. Economic Slowdown: As mentioned earlier in the document.LNT.1% for JanMar'09 (slowest in 20 years) India has shown negative exports growth since in Oct'08. business profitability etc.CHALLENGES AND THREATS-GLOBAL CHALLENGE Bankruptcies Retailers. Boscov’s. Mervyn’s Liquidated. consumer demand. This provides easy availability of yarn with good quality.7% is also available. the competition is increasing. for FY'09 Indian exports @ US $ 168. Cost Advantages in inputs: In terms of the key inputs. job availability. Ÿ Strong presence in Yarn Market: India contributes to nearly 20% of Yarn trade in the world and enjoys top exporter status in 17 large markets. defaults & foreclosures liquidity has been a concern. With the low freight costs the overall cost advantage of 5. With the improvement in area under cultivation and yield per hectare. This has severely affected tradeflows. UK. While most of the Central banks have reduced rates & infused liquidity in the system. challenging the business scenario. Gottschalks filed for Chap 11 Suppliers. most of the companies have access to captive power or public power at competitive costs. there has been a shift from Developed economies to Developing Asian Economies. the availability of funds to businesses has been low. UK and Japan have dropped since 2008 which has adversely affected the order position. Liquidity Crisis: With the collapse of large financial institutions in USA and Europe and the sub prime mortgage crisis. the availability of cotton is very good. Weak Consumer Demand: The Retail sales in USA. Even in case of other key inputs like Dyes. Chemicals and packaging material which account for 12-15% of overall product cost.4% Y-o-Y growth) Economic Slowdown Liquidity Crisis Liquidity Crisis Low Lending by Institutions Purchase postponement Defaults & Foreclosures Ÿ Ÿ Ÿ Ÿ Increasing Competition: As mentioned above. most of the developed economies are into recession.APE is an example Retailer Bankruptcies Weak Consumer Demand Consumer confidence index lowest in Decade Retail Comp store sales showing negative growth in US Weak Consumer Demand Oct Dec’08 Retail comp store sales growth negative in UK Increasing competition High Inventory Levels Obsolescence costs Increasing Competition Global Challenges Economic Slowdown All Major economies USA. Japan and EU in Recession. most of the multinationals are present in India and there is also a development of 31 Ÿ . Now with the emergence of new centres and slowdown in consumer spending.

eco-lite towels (quick dry).07.200 tonnes 10 mn sets 1. India is also comparable with other manufacturing centres like Bangladesh. bring a tremendous opportunity for Companies making home products.496 spindles 1 mn sets 10 mn pieces 1 mn pieces 3 mn units 3 mn units 11 mn pieces • One stop shop for Home: With the expansion from Terry Towels & Bed Sheets to Rugs. this consumer research is also shared with the key retailers during strategic meetings which are the foundation for all product recommendations. eucalyptus towel and texture towels in its product basket. the Company has added new products like nanospun towels.07. cotton bamboo towel.STRENGTHS AND OPPORTUNITIES • Global Scale: Welspun is today amongst the top 3 Home Textile manufacturers in the world.WELSPUN INDIA LIMITED Annual Report 2008 -09 local vendors ensuring low delivery lead time and competitive pricing for inputs. However. Vietnam. Stable Political & Business Scenario: Most of the competing manufacturing centres lose out to India in terms of the Political & Business Climate. today Welspun is an integrated Home Textile supplier across all customer requirements. The total capacity of Welspun is as under: India Towel Bed Linen Yarn Spindles (nos) Decorative Beddings Basic Bedding Bath Rugs 38. Charlotte (Bedding). residential complexes.seven years. Ÿ Availability of Skilled Manpower and comparatively lower cost: As per the Werner International Study.200 tonnes 10 mn sets 1. the pegging of yuan against the dollar & dependence on exports has also made china manufacturing uncompetitive in the recent past. Considering that a lot of technology in India is better than other competitors. • • • 32 . India has the advantage of a pool of skilled manpower. Multi Location Design Team: To meet the differing expectations of the consumers in different markets and products Welspun has design teams in India. In all the product areas the company has capacity amongst the top 5 manufacturers in the world. Increasing demand: The increasing shopping malls. New York (Bath). Investment in Technology & Infrastructure: With the TUFS program. Porto (Sorema Rugs). USA . Hyde (UK Bed & Bath). Ÿ Ÿ Ÿ ADVANTAGE WELSPUN . While Bangladesh & Pakistan are battling Political Issues. Pakistan and China. Most of the Asian countries are competitive in terms of labour costs. Product Development and Innovation: Welspun believes that Product Development & Innovation is a key area to create a sustainable competitive advantage. Basic Bedding & Fashion Bedding as also window treatments and blankets. Infact. sophisticated life style and surge in hotel industry. Consumer Research: Welspun actively uses the organizations like NPD and Just Ask a Woman to get insights into consumer requirements and identify the key product attributes to help in consumer communication. Using the inputs from the consumer research and through tracking the new developments. It has capacities at multiple locations which is a derisking for the customers. San Francisco. China has also seen closure of a lot of small units in the recent economic turmoil.496 spindles Portugal Mexico 1 mn sets Total 38. India saw a lot of Investment in the textile sector in the last five.

Benelux. which has shown consistent growth over the last three years.On the Bed Linen front. Quick Dry Sheets. Christy. • • • • • • • Welspun's efforts to sharpen competitive edge In a time when the main competitors like Springs Global & WestPoint Home have been losing revenues and money.(Home Textiles Today. Global Market intelligence: Welspun has presence at multiple locations across the world and uses this presence to build the market intelligence for different markets. Planning and Replenishment to its customers over more than 30 programs from POS to production at plant level. Flexifit sheets and the Perfect Sheet incorporating all the qualities mentioned. Graccioza by Sorema are finding increasing customer recognition and acceptance. In addition to this secondary research using published Industry sources helps to build the market intelligence. Access to raw materials: Cotton is sourced locally. helping in lean manufacturing. 33 . Spain. Licensed Brands like Amy Butler. In 2008-09 Welspun started its state of the art Rugs Plant at Vapi and has already placed product with large customers like Bed Bath & Beyond and Macy's. Reliability: A strong client base and a great track record in terms of client servicing and on time delivery is a key strength. Welspun will get significant jump in revenues & volumes through the bed linen products. Projected growth of textile industry: The exponential growth anticipated in the textile industry gives a great futuristic hope for companies like us which have implemented process and technology of global standards and are ready to meet future demands. Welspun is flexible. In order to ensure that the key functional product attributes are communicated to the consumer at the retail floor. It has been able to retain its market share of the Terry Towels product category and increase its share in the bed linen category. the Company has really established synergies between raw material sourcing. a lot of product development has taken place in the second half of 2008-09 and Welspun has added products like Ever Smooth Wrinkle Free. change oriented and innovative. Advantage of Brands: Welspun has a portfolio of Own Brands and Licensed Brands. Welspun has over the last year been able to cement its position as a fully integrated complete home textile supplier. Welspun has been able to sustain its revenues in the global slowdown. While own brands like Hygrocotton. the customers have appreciated the new products developed by the company and it is expected that in 2009-10. gives the Company a very strong footprint in this particular industry. Welspun has been able to set up a sales network in Europe in the key markets of Germany. Scandinavia in addition to UK and Portugal. the Point Of Sale communication is also developed. manufacturing facilities and markets. co. inspite of a difficult market has been able to sustain its market share in Terry Towels in the UK market. It has been successful in the optimisation of raw material cost and major input cost. Waverly and Umbra provide access to retailers. During the year under review. In a nutshell. Christy UK. The business for Mexico Bedding factory also improved since November'08 and with the License of an eminent brand the business is expected to improve in 2009-10. Extended SCM: Welspun is amongst the few manufacturers which provide Collaborative Forecasting. websites) Welspun has followed its defined strategy. In the Bed Linen category in UK the consumer response has been good and the business is expected to grow In the coming years. machinery know-how from the best international suppliers and vertically integrated plants. In fact Welspun is the only supplier in the Top 15 Suppliers as per Home Textiles Today. Luxus. Technology: State-of-the art technology. • Packaging and Point Of Sale: Welspun has a Marketing team in USA at Charlotte and in India which works on developing the Packaging for different products. Smart and Eversmooth. Through Sorema of Portugal. improved product mix and optimised the utilisation of assets.

Mexico. Basic Bedding and Bath Rugs Ÿ Develop new Markets like Mexico. the Times of India and Jindal Steel Works in an effort to recognize local and relevant action in tackling challenges posed by climate change. In 2009-10 Welspun plans to: Ÿ Sustain its market share in Towels in USA and UK Ÿ Improve its market share in Bed Linen in all Markets Ÿ Utilise the Sales Network set up in Europe to increase sales across all product categories Ÿ Stabilise the sales of Faupel products in UK Ÿ Acquire/ License Brands Ÿ Increase revenues in Fashion Bedding. Russia and China Ÿ Create a Sourcing & Quality infrastructure Ÿ Create sustainable products Ÿ Continuous focus on cost reduction at plants and subsidiaries Ÿ Product Development & Innovation Developing a Competitive Advantage • Offering a Business Proposition § Be a strategic partner to Customers • Sharing of Common Objective with Customer § Maximize inventory turns § Optimize ROI for Customer & Welspun • Integration § Supply Chain Integration with Client data base • Quick response through USA distribution • Efficient supply chain for filled products through Mexico Building global scale • Towel capacity among top three in the world • Sheet capacity will be among top two in India and top five in the world • Dec bedding and rugs also global scaleamong top 5 capacities in the world • Manufacturing base in Mexico. Portugal. RO Plant & Salt Recovery • Employee Benefits § Schooling. better quality and replacement of old technology with world class technology. UK Welspun “Social” Initiatives • Health & Environment § Initiation towards Carbon Credit . Earth Care awards was founded by India's largest media house.VAPI changing over to gas-based turbines in place of Furnace Oil generation § Social forestry by planting eucalyptus saplings outside the company premises. Lean Six Sigma. Japan. Charlotte. Welspun targets cost optimization with an aim to become the lowest cost producer of home textiles globally and further aims to become the preferred partner in home textiles for global initiative with its business model. § Walmart Sustainability Award • Training § 5S. Portugal and India • Distribution facilities in India. Process Training 34 . Transportation § Good Working Environment • Awards & Certifications § EARTH CARE AWARD for major reduction of carbon emissions. § Zero Discharge Effluent treatment plant with Sludge disposal.WELSPUN INDIA LIMITED Annual Report 2008 -09 Welspun is further expanding/modernising its manufacturing capacities with an objective to attain increase in volume with lower overhead.

experienced and independent Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of internal controls systems and suggests improvements for strengthening them. The new license will help Welspun in becoming a key player in the Fashion Bedding segment through the manufacturing facility at Mexico. In 2008-09 Welspun has signed a License for a leading brand for North America covering the categories of Fashion Bedding.OUTLOOK Welspun is already a strategic vendor to the major retailers in the USA. In order to make its internal control effective and sound. the internal control system encompasses the policies. Welspun's objectives. Welspun thoroughly and regularly evaluates the nature and extent of the risks to which the Company is exposed. planning and accounting processes. Fashion Bath. objectivity and understanding of the Company and the industries and markets in which it operates.end solution to the customers. The system is improved and modified continuously to meet the changes in business conditions. Welspun has a strong Management Information System which is an integral part of the control mechanism. A recent example of a consumer research driven innovation has been the Quick Dry Towel and the Perfect Sheet. is in advanced stage of implementation at WUSA. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY At Welspun. quality of internal and external reporting. compliance with applicable laws and regulations. Welspun also outsources management auditors to periodically check the adequacy of its systems and processes so as to make it more responsive in this volatile environment. processes. as a result. The qualified. tasks. use of new technologies. Welspun has successfully implemented an enterprise wide solution (ERP) in its textile plants. Welspun today differentiates itself from the other manufacturers by focusing on Consumer Research driven innovations. a global manufacturing & sales footprint and ability to offer a comprehensive end-to. statutory and accounting requirements. the risks it faces are continually changing. WAG and Welspun Mexico and is in the process of covering all its businesses. technical knowledge. The operation and monitoring of the system of internal control has been taken by individuals who collectively possess the necessary skills. behaviours and other aspects of the Company that taken together facilitates effective and efficient operation. As a result of reduced consumer spending the retailers also corrected the inventory in the entire supply chain leading to low orders. Solid Sheets and rugs. It has been able to sustain its growth even in the current economic scenario where the retail sales in its key market of US dropped since Sept'08. 35 . its internal organisation and the environment in which it operates are continually evolving and. Blankets/ Throws and Area Rugs in addition to the earlier license of Bath.

34 .40 mn in FY 2009 registering an increase of 8.33 309.34 15.92 mn to Rs.28 43.09 12.61 17.14 3.66 5. 246.57 26.670.96 (75.34% over the previous financial year on account of better unit price realization despite slowdown in major global markets and lower foreign exchange realization.60 5.59 3.59 5.822 28.43 14.30 - FY 07-08 12.83 F Y 07-08 Actual Production 29.91 6.44 246.70 7. 171.88% Installed Capacity 37. Changes in the fair value of the hedging instruments that do not qualify for hedge accounting are recognised in profit and loss account to the extent of Rs 231.98 (51.114.83 1.38mn Capacity Utilisation 80.00 1.11 952.00 1. 36 .65 . Other income The income from other sources dropped from Rs.784.0.30.56 1. REVENUE a.33 71.30.034.20.36 0.03 4.45 6.35 mn.59 % 100.74 0.60 mn in FY 2009.444.76% 54.82) 204.23 963.54 3.WELSPUN INDIA LIMITED Annual Report 2008 -09 DISCUSSION ON FINANCIAL PERFORMANCE KEY FINANCIAL DATA ( Standalone) Particulars Net Sales(net of excise) Other Income Cost of Material Manufacturing Expenses Employee Cost Selling Administration and Other Expenses Reported EBIDTA Financial Expenses Depreciation Taxes Net Income from Ordinary Activities Extraordinary Item (net of tax expense) Exceptional Items PAT (Profit After Tax) EPS (Basic and Diluted before Extraordinary Item) EPS (Basic and Diluted after Extraordinary Item) CAPACITY UTILIZATION FY 08.13 mn in FY 2009.12 2.89 11.81 46.51mn Capacity Utilisation 78.418.57 244.04 676.37 3.52 262.06) 749.59 17.76 11.088 23.85 847.79 (203.85 7. b.074 35.18 987.034.035.92 1.63 7.21. Ÿ This has offset the non operating income from the sale of Welspun Gujarat Stahl Rohren Limited shares amounting to Rs 221.79 921.86 259. Ÿ The Company was proactive in adoption of Accounting Standard 30 'Financial Instruments: Recognition and Measurement.00 366.81 (431.22 2.73 7.133.304.86 mn in FY 2009 vis-à-vis Rs 18.201 42.80 mn.66) 316.43 15.66 3.935.26 105.33 4.09 7.64 8. Net Sales The Company achieved net sales of Rs 13.12 - (In Rs million except per share data) YOY change YOY % change 1.99 40. Ÿ Profit on cancellation of forward contracts dropped from Rs.99 20.444. Ÿ The bearish capital market had its effect on the dividend income from the mutual fund transactions which stands at Rs 5.02 27.138.38 2.84mn Actual Production 30.05 2.409.37 1.10 2.44% 79.50% Terry Towel Bed Linen Products MTPA Mtrs 1.7mn FY 08-09 13.49 .19 151.09 .45 .53 36.40 171.66) 58.66 mn in FY 2008 to Rs.18 3.30 7.09 Product Unit Installed Capacity 38.36 0.70 mn in FY 2008.43 10.23 % 100.

3.807. e.866. the Company's borrowings has increased by Rs 1. b.23 mn on unabsorbed depreciation pertaining to Assessment Year 1998-99 and 2001-2002 due to Appellate Tribunal ruling in Company's favor.65% on year to year basis . Administration and Other Expenses The selling.602.19 12.33 1.821.27 13. KEY FINANCIAL RATIOS Particulars Share capital Reserves and Surplus Total Shareholders Equity Less: Miscellaneous Expenditure to the extent not written off or adjusted Net Worth Net Sales Net Sales/ Net Worth Net Profit/Loss after Tax Return on Net Worth Current Assets Current Liabilities and Provisions Current Ratio Inventory Turnover Ratio Inventory (Days) Debtors Turnover Ratio (Sales / Debtors) Days Sales Outstanding (In Rs million except ratios) FY 08-09 780. due to better profit after tax position. Further due to increase in the banks lending rate and resetting of interest on old borrowings the total financial expenses are higher.84 mn mtrs in FY 2009. 6. Depreciation The installed capacity of the Company 's terry towel production units increased from 37. EARNING PER SHARE (Basic) The Earning Per Share (Basic) (before extra-ordinary item) in FY 2009 stands at Rs.19 5. In Q4 of FY 2009.3670. discounts and rebates have also reduced due to better quality production and negotiation of claims.81 31.37 5.23 37 .37 68.47 mn in FY 2009 vis-à-vis Rs 1018. This increase in installed capacity has resulted in higher depreciation cost for the FY 2009.66 mn. the installed capacity of the Company's Bed-Linen products increased from 35. 5. the Company has routed its export sales through its then Indian subsidiary Welspun Global Brands Ltd . c. Finance Expenses (Net) The Company has relied heavily on borrowings from the financials institutions for the Phase II expansion at Anjar.44 2. Cost of Materials The Cost of Material stands at Rs.41 5. 2.468. administration and other expenses saw a considerable drop of 30.16 11.444.172.588.90 4.7 mn mtrs in FY 2008 to 42.43% on year to year basis.09 5.25 mn in FY 2008.09% and amounted to Rs.00 FY 07-08 780. 75. The major contributing factor was recognition of Deferred Tax Asset of Rs.71 77. 5.03 5. Hence all the related selling and marketing expenses are booked in the subsidiary company .588.56 mn for FY 2009 mainly due to increase in power fuel and water charges.40 309.90 4.074 mtpa in FY 2008 to 38201 mtpa in FY 2009 . Similarly.223.33 per share as compared to Rs. it is 43. Selling.52% 8.69 15.546.37 mn and as a % age of Net sales.602. During the FY 2009. 4.59 per share in the FY 2008.70% 7. Manufacturing Expenses Manufacturing Expenses on year to year basis has increased by 11.69 1.27 5.29 5.The claims .68 4.14 4. EBIDTA The EBIDTA has remained constant for the two financials at 16% as a percentage of sales due to meager increase on both sale prices and volume .02% in FY 2009 vis-à-vis 40. 3.57% in FY 2008. d.11 24. PROFIT AFTER TAX The Profit after tax from ordinary activities remained constant at approximate 2%as a percentage of sales but registered an increase of 17.40 2.409. This was mainly due to increase in the minimum support prices (MSP) for cotton by the government.EXPENDITURE a. The power fuel and water charges amounted to Rs 1408.66 4.784. 4.22 262.

8) B.Ltd. 2) Dipali Goenka.. B.20%.41mn was lower by 18% as compared to EBIDTA of Rs.34% the consolidated sales is not up by the same % as sales to Subsidiaries made in March ‘09 were in transit or in subsidiary’s inventory. 4) R. Profit / ( Loss) Before Tax (PBT) from Ordinary Activities at (Rs. 13) Welspun India Ltd. Though the standalone sales have gone up by 8.Goenka Family Trust. Government policies and other incidental factors “Group for Inter-Se Transfer of Shares: As required under Clause 3(1)(e) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations. India for Change Path Exercise with focus for business stability and robust organization to achieve the Company's vision.Goenka. depending upon economic condition.. 14) Methodical Inv & Fin Pvt. 17) Welspun Power & Steel Ltd. Net Sales at Rs.K.20 mn was marginally higher by 3. Actual results may vary from those expressed or implied. Cautionary Statement: Statements in the Management Discussion and Analysis describing Welspun's objectives.. Earning Before Interest. 11) Welspun Trading Ltd. 16) Welspun Zuchhi Textile Ltd.1.K.Goenka Trustee. persons constituting “Group” (within the meaning as defined in the Monopolies and Restrictive Trade Practices Act. 7) Yash Mandawewala. 765.This variation in EBDITA.Mandawewala. 3) Radhika Goenka. 643. 1969) for the purpose of availing exemption from applicability of the provisions of Regulations 10 to 12 of the aforesaid SEBI Regulations are 1) B.57 mn as against Net Loss of Rs. Depreciation and Tax (also before Exceptional Items) (EBIDTA) from Ordinary Activities at Rs. projections and estimates are forward looking statements and progressive.27 mn) was lower by 289% of PBT of Rs. 38 . The Industrial Relations across the units remained cordial during the year.K. 6) Abhishek Mandawewala. PBT and PAT is mainly on account of sluggish market conditions prevailing across the globe and underutilization of the capacity at some of the subsidiaries. This project has added significant value to business in terms of global realignment and streamlined operations. Net Loss after adjusting for share of Associates and Minority Interest was Rs. 5) Pratima Mandawewala. 12) Krishiraj Trading Ltd.55 mn for FY 08. However. 1997. 1658. HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL RELATIONS The Company has undertaken “Project Parivartan” with eminent consultants. 15) Welspun Syntex Ltd. 4) Vanshika Goenka. 341. 2031. The HAY Group.WELSPUN INDIA LIMITED Annual Report 2008 -09 CONSOLIDATED ACCOUNTS: During FY 09. within the meaning of applicable security laws and regulations.01 mn in FY 08. 16991.R.04 mn for FY07-08. 9) Welspun Wintex Ltd. 10) Welspun Mercantile Ltd.

SHEETS Capacity – 10 million sets Facilities – Vapi. India – Anjar. Gujarat. India . Gujarat.

We ensure to provide maximum employment and economic opportunities in the communities where we operate and we make sure that employees are treated fairly and with dignity and consideration for their goals and aspirations and that diversity in the workplace is embraced. Shareholders. environment. education. consultative approach in our communities by supporting innovative programs in health. These are Enrichment of mind. Besides this.WELSPUN INDIA LIMITED Annual Report 2008 -09 CORPORATE SOCIAL RESPONSIBILITY (CSR) Welspun is committed to conduct business in a socially responsible and ethical manner. not just a business character.particularly those of our employees. Our commitments towards Corporate Social Responsibility (CSR) have been carefully selected in align with our six guiding path (6E's). Ÿ Ÿ Follow practices laid down by various UN and International bodies in our business to meet society's expectations. Welspun has adopted Corporate Social Responsibility policy in the year 2008. language or disability At Welspun we believe that Local Stakeholder Engagement is extremely important and we adhere to a collaborative. We take utmost care to integrate community investment considerations into decision-making and business practices and assist in local capacity building to develop mutually beneficial relationships with communities. intimidation. its systems and the conduct of its business. we serve with passion to our Customers. Work with government and agencies to support and respect Human Rights. Sustaining mutually accountable and responsible synergies. Ensure consistency in performance of various activities/ projects. including discrimination. Some of the main features of the policy are given below… Ÿ Build a civic character. The policy outlines processes. gender. religion. without distinction as to ethnicity. open and transparent dialogue with all our key stakeholders Sustaining mutually accountable and responsible synergies. Employees & Society at large. origin. we strictly comply with all the laws that regulate and apply to the company. Through stakeholder engagement we have been able to review our issues and objectives and ensure we have in place a process to enable thorough. Empowerment of Women and Environment sustenance. Ÿ Ÿ Ÿ Ÿ 40 . or harassment. Provide maximum employment and economic opportunities and strengthen Human Relations. Enrichment of body. We are additionally committed to provide equal opportunity in all aspects of employment and will not engage in or tolerate unlawful workplace conduct. systems and minimum standards for managing CSR related activities throughout Welspun. Empathy. while respecting the national and local laws of the countries and communities where we operate are practiced. the communities within which we operate and parties with whom we do business. honesty and integrity in all business aspects. We promote universal respect for observance of human rights and fundamental freedom . Follow Ethical business conduct and practice the principles of accountability. A dedicated CSR team consisting of a cross-section of different functions from across the company reviewed and prioritized the issues to be addressed now and in the future. as well as cultural and civic projects. Fair labour policies. Education.

employment.. quality education. Education In our seamless effort to improve the lives of children through education. These overwhelming responses bolster our spirit to lead the initiatives in a long run. Local Gram Panchayat & local hospitals. etc. Naya Savera. Welspun builds and strengthens partnerships with civil society. Princey eye care. occupational health and safety. We work for equal access to women on health care. We are determined to priorities the cause of the Girl child. Right to Information Act. we conduct work/life balance & stress management workshops. we also support various education initiatives at all levels. Welspun scholars are a group of approximately 14 students. Relaxation and yoga AV (Audio-video) collections to de-stress and re-energize are available at library resources. physical and social wellbeing.6E's. In all. psychological. We recognize knowledge as information in action. communication and relationships are essential to develop solutions and avoiding or diffusing conflict. We believe achieving health and remaining healthy is an active process. User friendly library software is being developed and designed to meet the needs of the readers. It is a dynamic blend of experience. Welspun has started the drive in upgrading libraries across its facilities. We support these students. seek full study-assistance from Welspun. over one thousand populations have been benefited by the CSR activities of Welspun. By helping others. with all humility and passion. equal remuneration. This involves granting aid to schools.000 people received aids and appliances. It has served over 1500 people. Welspun has organized a number of health and eye camps in the last year in association with the local NGOs like Abhishyam foundation.. Differently-able. In this endeavour. Effective understanding. we help ourselves to grow. a handful of warmth and a heart full of love for a girl child can make a big difference. orphanage children etc. acknowledging and rewarding meritorious students and an initiative called Welspun scholars. In this endeavour. 41 . Empowerment of Women Welspun enables women to realize their full potential. Enrichment of body Living a healthier life improves the quality of life. At Welspun. a pre-primary school has been set up for not only the children of Welspun employees but children of the other local families could also attend. campaign was launched in Mumbai. Legal Rights for Women.. a school up to Standard 10 and 'Welspun Anganvadi'.. values. the future of tomorrow. Feeling physically better and having control over life can greatly increase mental health as well. career and vocational guidance. In this regard from the CSR front we have worked with several NGOs and helped to promote the social cause like. It signifies a state of flourishing of the overall being.Enrichment of mind Mental Wellness is an important dimension of health and wellness. Around 10 people availed of eye surgical facilities and over 1. Girl child is a cause very close to our hearts at Welspun. particularly women's organizations and work towards changing societal attitudes and community practices by active participation and involvement of women. A little amount of care. Around 35 employees took the pledge and adopted more than fifty girl child. Further. who yearly. against which new experiences and information can be evaluated and consolidated. information and insights. Empathy Welspun consider empathy as a salient component in our activities. “Welspun Vidya Mandir”. we believe that nurturing of the mind helps to reach high levels of emotional. This endeavour also focuses upon accessing materials by electronic means.

large scale tree plantation. Our commitment is the beacon towards many new innovation and initiatives in CSR. rain water harvesting and many more. We are making every effort in social commitment and contribute one per cent of its profit after tax on several CSR initiatives. We consider environmental conservation is closely intertwined with human welfare. establishment and project sites. including the beneficiaries. 42 . use of clean energy.WELSPUN INDIA LIMITED Annual Report 2008 -09 Environment Sustenance. campaigns on energy conservation. families of employees. Thus we sustain our efforts and not sporadic attempts at community development. This is reflected from the change in the lives of people whom we have touched through our various programs and activities. eco-friendly production processes. Companies care concern for the environment manifests itself at all its facilities. year after year our CSR initiative has started doing better and even today its work has been recognized and appreciated as amongst top 38 Companies contributing in the field of CSR (Source: Social Corporate Governance Award. the management. a green cover in its factories. reuse and recycling. etc. it gave rise to a snowball effect. In coming years. due to this strength of people. Ensures compliance with applicable Health Safety and Environment (HSE) legislation Welspun environment conservation initiatives includes. effluent treatment. families of management staff. Welspun is determined to face newer challenges and newer avenues with a meaningful approach and interventions towards social welfare activities. the employees. 2008). It goes beyond charity to capacity building. CSR activities of Welspun have touched the lives of many.

India .BATH ROBES Capacity – 1 million pieces Facilities – Vapi. Gujarat.

WELSPUN INDIA LIMITED Annual Report 2008 -09 Financials Section Standalone Accounts Audit Report Balance Sheet Profit & Loss Account Schedules Cashflow Statement Balance Sheet Abstract Section 212 disclosure 45 48 49 50 78 79 80 Consolidated Accounts Audit Report Balance Sheet Profit & Loss Account Schedules Cashflow Statement 81 82 83 84 109 44 .

Chartered Accountants Mumbai. evidence supporting the amounts and disclosures in the financial statements. 2009 45 . 2004 (together the “Order”) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of The Companies Act. 2009 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act. (b) In our opinion. of the state of affairs of the Company as at March 31. of the cash flows for the year ended on that date. and (iii) in the case of the Cash Flow Statement. 2009 and the related Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. to the best of our knowledge and belief. Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. as well as evaluating the overall financial statement presentation. An audit also includes assessing the accounting principles used and significant estimates made by Management. F055158 For and on behalf of Price Waterhouse & Co. none of the Directors is disqualified as on March 31. 2. Our responsibility is to express an opinion on these financial statements based on our audit. the Balance Sheet. Further to our comments in the Annexure referred to in paragraph 3 above. of the profit for the year ended on that date. and taken on record by the Board of Directors. were necessary for the purposes of our audit. proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. the information required by the Act. as on March 31. 3. We have audited the attached Balance Sheet of Welspun India Limited (the “Company”) as at March 31. and also give. 4.AUDITORS' REPORT TO THE MEMBERS OF WELSPUN INDIA LIMITED 1. Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act. 2009. We conducted our audit in accordance with the auditing standards generally accepted in India. give in the prescribed manner. on a test basis. (e) On the basis of written representations received from the Directors. 2003. (d) In our opinion. together with the Notes thereon and attached thereto. We believe that our audit provides a reasonable basis for our opinion. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. the said financial statements. and to the best of our information and according to the explanations given to us. 1956 of India (the “Act”) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us. An audit includes examining. (ii) in the case of the Profit and Loss Account. As required by the Companies (Auditor's Report) Order. (f) In our opinion. These financial statements are the responsibility of the Management of the Company. June 30. a true and fair view in conformity with the accounting principles generally accepted in India: (i) in the case of the Balance Sheet. (c) The Balance Sheet. 2009. Neeraj Gupta Partner Membership No. as amended by the Companies (Auditor's Report) (Amendment) Order. we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. we report that: (a) We have obtained all the information and explanations which. which we have signed under reference to this report.

the procedures for the physical verification of inventory followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business. income tax. investor education and protection fund. Further. in our opinion. In our opinion. a substantial part of fixe d assets has not been disposed-of by the Company during the year. fixed assets and sale of goods. firms or other parties covered in the register maintained under Section 301 of the Act. pursuant to the rules made by the Central Government of India. On the basis of our examination of the inventory records. and according to the information and explanations given to us. the maintenance of cost records has been prescribed under clause (d) of sub section (1) of Section 209 of the Act. made a detailed examination of the records with a view to determine whether they are accurate or complete. we have neither come across nor have been informed of any instances of major weaknesses in the aforesaid internal control system. sales tax.WELSPUN INDIA LIMITED Annual Report 2008 -09 Annexure to Auditors' Report referred to in paragraph 3 of the Auditors' Report of even date to the members of Welspun India Limited on the financial statements for the year ended March 31. (ix) (a) According to the information and explanations given to us and the records of the Company examined by us. customs duty. wealth tax and cess which have not been deposited on account of any dispute. No material discrepancies between the book records and the physical inventory have been noticed. the Company has maintained proper records of inventory. According to the information and explanations given to us and records of the Company examined by us. The inventory has been physically verified by the Management during the year. the prescribed accounts and records have been made and maintained. excise duty. on the basis of our examination of the books and records of the Company. (v) (b) (vi) The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the rules framed there under. the Company has been generally regular in depositing the undisputed statutory dues in respect of provident fund. to companies. cess and other material statutory dues . In our opinion. In our opinion. as applicable. the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Act and exceeding the value of Rupees Five Lakhs in respect of any party during the year. The Company has not granted any loans. firms or other parties covered in the register maintained under Section 301 of the Act. the frequency of verification is reasonable. the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section. In our opinion. secured or unsecured. with the appropriate authorities. (a) In our opinion and according to the information and explanations given to us. The Company’s operations do not involve sale of services. secured or unsecured. there are no dues of income tax. In our opinion. however. the frequency of verification is reasonable. the Company has an internal audit system commensurate with its size and the nature of its business. in respect of products where. The Company has not taken any loans. In our opinion and according to the information and explanations given to us. 2009 (i) (a) The Company has maintained proper records showing full particulars. employees’ state insurance. The fixed assets of the Company have been physically verified by the Management during the year. customs duty. service tax. The discrepancies noticed on physical verification of inventory as compared to book records were not material. and according to the information and explanations given to us. The particulars of dues of sales tax and excise duty as at March 31. and are of opinion that. have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. We have not. in our opinion. wealth tax. from companies. prima facie. (b) (c) (ii) (a) (b) (c) (iii) (a) (b) (iv) In our opinion. there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory. (vii) (viii) We have broadly reviewed the book s of account maintained by the Company. service tax. 2009 which have not been (b) 46 . including quantitative details and situation of fixed assets.

short-term unsecured debentures aggregating Rs. According to the records of the Company examined by us and the information and explanations given to us.28 Service Tax 0. 1944 Nature of dues Sales Tax including penalty and interest Excise Duty including penalty and interest Excise Duty including penalty and interest Excise Duty Amounts (Rs.2). Ministry of Fi nance. the question of our commenting on the creation of security or charge in respect of such debentures does not arise.15 (x) (xi) * Net of amounts paid under protest The Company has no accumulated losses as at March 31. (xxi) During the course of our examination of the books and records of the Company. are as follows: Name of the Statute Gujarat Sales Tax Act. the Company is not a dealer or trader in shares. the terms and conditions of the guarantees given by the Company to banks that have given loans to certain subsidiary companies of the Company. 2009 deposited on account of a dispute. F055158 For and on behalf of Price Waterhouse & Co. (xix) The Company issued and redeemed during the year. nor have we been informed of such case by the Management. in our opinion and according to the information and explanations given to us. on an overall basis. 1944 Central Excise Act. 2009 47 . carried out in accordance with the generally accepted auditing practices in India. 500 million. and according to the information and explanations given to us. (xvi) In our opinion. 1944 Central Excise Act. the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders during the year. Vadodra Commissioner of Central Excise Custom (Appeals). the term loans have been applied for the purpose for which they were obtained. debentures and other securities. Ahmedabad Revision Application with the Joint Secretary. Chartered Accountants Mumbai. 2009 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year. (xiii) The provisions of any special statute applicable to chit fund/ nidhi/ mutual benefit fund/ societies are not applicable to the Company.74 1. are not prejudicial to the interest of the Company. Neeraj Gupta Partner Membership No. (xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares. (xiv) In our opinion. 1944 Central Excise Act. 1969 Central Excise Act.75 69. Department of Revenue The Company is in the process of filing appeal with Commissioner of Central Excise and Custom (Appeals) 18. Hence. (xx) The Company has not raised any money by public issues during the year. (xv) In our opinion and according to the information and explanations given to us. and according to the information and explanations given to us. we have neither come across any instance of fraud on or by the Company. Daman Custom. in million)* 7. noticed or reported during the year. there are no funds raised on a short -term basis which have been used for long-term investment. debentures and other investments. securities. June 30.13 Period to which Forum where the dispute is pending the amount relates 2003-04 and 2004-05 March 2004 to July 2006 September 1999 to April 2000 September 2005 to July 2006 April 2004 to May 2005 Joint Commissioner of Sales Tax (Appeals . Excise and Service Tax Appellate Tribunal. (xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year. (xvii) On the basis of an overall examination of the Balance Sheet of the Company.Annexure to Auditors' Report referred to in paragraph 3 of the Auditors' Report of even date to the members of Welspun India Limited on the financial statements for the year ended March 31.

2009 D.83 23. L.04 1.41 920. Mittal Executive Director (Finance) Mumbai.58 13. K.60 22.12 1.033.046.231.231.49 62.05 1.27 16.901.19 15.33 1.104.807.105.62 6B 7 8 9 10 11 12 This is the Balance Sheet referred to in our report of the even date.231.327.418.432. R.77 884.602.75 2.43 1.85 7. 2009 B.089.66 8.064.62 3 4 5 17.30 1.22 NOTES TO ACCOUNTS The Schedules referred to herein form an integral part of the Balance Sheet.88 3.81 54. Goenka Chairman & Managing Director R.866.706. Patil Company Secretary 48 .19 15.92 753.91 888.523. In million) As at March 31.68 6.00 22.589.37 5.78 904.71 182. 2009 (Rs.90 4.223.64 45.121.468.29 5.110. 2008 1 2 780. June 30.705. 19 0 As at March 31. Chartered Accountants Mumbai.71 2.07 36.65 23.42 14.09 6.039.09 500.69 1. For and on behalf of the Board of Directors Neeraj Gupta Partner Membership No.19 4.588.356.235.078.72 15. June 30.358.02 1. LOANS AND ADVANCES Inventories Sundry Debtors Cash and Bank Balances Loans and Advances and Other Current Assets LESS: CURRENT LIABILITIES AND PROVISIONS Liabilities Provisions NET CURRENT ASSETS 6A 19.970.821.63 1.WELSPUN INDIA LIMITED Annual Report 2008 -09 BALANCE SHEET AS AT MARCH 31. F055158 For and on behalf of Price Waterhouse & Co.04 15.773.03 16.13 3.110.821.51 2.22 780. Mandawewala Joint Managing Director M.889.546. K.90 4. 2009 SCHEDULES SOURCES OF FUNDS SHAREHOLDERS' FUNDS Capital Reserves and Surplus LOAN FUNDS Secured Loans Unsecured Loans DEFERRED TAX LIABILITY (NET) APPLICATION OF FUNDS FIXED ASSETS Gross Block Less: Depreciation Net Block Capital Work-in-progress Incidental Expenditure Pending Capitalisation/ Allocation INVESTMENTS CURRENT ASSETS.

245.10 (27.10 921.11 952.Deferred Tax (Refer Note 26 on Schedule 19) .17 2.33 4.77 963.351.47) 12. June 30.692. F055158 For and on behalf of Price Waterhouse & Co.Current Tax . 2009 B.440.67) 1.035.454.00 9. Mittal Executive Director (Finance) Mumbai.42 309.430. Patil Company Secretary 49 .59 Profit Before Taxation From Ordinary Activities And From Discontinuing Operations .66 1. K.692.18 987.) . 2009 (Rs.95 30.62 1.62 2.418.00 3.93 1.453.03 Expenditure Materials and Manufacturing Expenses Employees' Remuneration and Benefits Selling.77 million) (Refer Note 27 on Schedule 19) Profit/ (Loss) After Taxation From Continuing Operations (A) 13 14 13.44 246.40 171.03 1.98 13. R.52 305.75 312.91 155.00 15 16 17 18 27.10) (60.91 109.Fringe Benefit Tax Profit After Taxation From Ordinary Activities And From Discontinuing Operations Profit After Taxation Profit and Loss Account Balance Brought Forward Profit Available For Appropriation Appropriations Transfer to Capital Redemption Reserve Transfer from Debenture Redemption Reserve Profit and Loss Account Balance Carried to Balance Sheet Earnings Per Share (Rs. 2009 D.99 3. Goenka Chairman & Managing Director R.95 3. For and on behalf of the Board of Directors Neeraj Gupta Partner Membership No.50) 142.75 262.66 12.001.77 106.52 2.60 13.Fringe Benefit Tax Profit After Taxation From Ordinary Activities And From Continuing Operations Extraordinary Item (net of deferred tax credit of Rs.PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.10 8.39) 315. This is the Profit and Loss Account referred to in our report of the even date.65 2.70 (50.15 13.015. 3.10 411.37 1.85 847.692.001.69 6.30 264. 2009 Year ended March 31. L.55 9. June 30. In million) Year ended March 31. Administration and Other Expenses Finance Expenses (Net) Depreciation Profit Before Exceptional Item And Taxation Exceptional Item Profit Before Taxation From Ordinary Activities Profit/ (Loss) Before Taxation From Ordinary Activities And From Continuing Operations Provision For Taxation .136.23 44.19 12.33 (3. Mandawewala Joint Managing Director M. K.52 414.656.40 155.444.65 2.65 4.409.Basic and Diluted after Extraordinary Item NOTES TO ACCOUNTS (B) (A) + (B) 19 The Schedules referred to herein form an integral part of the Profit and Loss Account. 2008 SCHEDULES Income Sales Less : Excise Duty Other Income 1.29 1.Less : Minimum Alternative Tax Credit Availed .40) 5.Basic and Diluted before Extraordinary Item .00 (29.338.616.70 264.06 12.001.59 3.94 7.471. Chartered Accountants Mumbai.50 (44.692.50 31.(Refer Note 24 on Schedule 19) .92 676.

104.Provision for Diminution in Value of Investments .16 8.90 50.03 0.638.00 780. 10 each fully paid up 500. 100 each fully paid up (Refer Note 9 on Schedule 19) SCHEDULE 2 : RESERVES AND SURPLUS Securities Premium Account As per last Balance Sheet Add : Additions during the year Less : Premium on Redemption of Preference Shares Capital Redemption Reserve As per last Balance Sheet Add : Transferred from Profit and Loss Account Debenture Redemption Reserve As per last Balance Sheet Less : Transferred to Profit and Loss Account Capital Reserve . 2010) (Repayable within one year Rs.32 182.59 14.03 182.26 2. Subscribed and Paid Up 73.In Foreign Currency Working Capital Loans from Banks (Refer Notes 10(c) and (d) on Schedule 19) SCHEDULE 4 : UNSECURED LOANS Interest Free Sales Tax Loan (Repayable in six annual installments for each disbursement till October 7.00 50 .75 4.039.Unabsorbed Depreciation as per the Income Tax Act.38 48. In million) As at March 31.38 29.90 (Rs.90 2.638.500. 0.00 235.18 (294.710. 1961 .90 50. 0.00 1.67 8.33 1.66 865. 2008 815. 2009 815. 10 each 1.638.53 498.932.02 39.00 110.37 million) Short Term Loans from Banks SCHEDULE 5 : DEFERRED TAX LIABILITY (NET) (Refer Note 1(viii)(b) on Schedule 19) Deferred Tax Liability arising on account of Timing differences in : .00 428.089.02 11.11 398.92 3.645. 2008 : Rs.01 million.305.00 730.50 2.049.00 780.18 1.37 72.001.Provision for Unpaid Statutory Dues under Section 43B of the Income Tax Act.519 Equity Shares of Rs.Depreciation Deferred Tax Asset arising on account of Timing differences in: .72 1.807.29 13.11 2.638.In Rupee .000 Redeemable Cumulative Preference Shares of Rs.67 29. 2009 SCHEDULE 1 : CAPITAL Authorised 81.160.00 730.500.11 428.65 4.000 Equity Shares of Rs.37 2.Provision for Others 0.08 19.95) 2. March 31.62 4.11 2.90 2.100.17 16.Provision for Doubtful Debts/ Advances .Provision for Employee Benefits . 100 each 23.000 0% Redeemable Cumulative Preference Shares of Rs.235. 1961 .160.692.00 235.089.00 500.09 12.Forfeiture of Equity Warrants Hedging Reserve Account Profit and Loss Account #REF! SCHEDULE 3 : SECURED LOANS Term Loans (Refer Notes 10(a) and (b) on Schedule 19) From Banks .38 30.00 110.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.67 1.890.039.67 48.58 1.00 892.29 541.40 As at March 31.71 500.79 15.000 Redeemable Cumulative Preference Shares of Rs.38 428.37 2.821.83 1. 10 each Issued.710.00 1.

67 23. 61.85 19.03 million (Previous year : Rs.56 2.63 22.32 1.82 15.033.SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.93 98.605.49 Notes 1) Deletions/ Adjustments for Plant and Machinery includes adjustments for the capital subsidy of Rs.110.42 3.85 952.46 4.07 104.62 0.033.43 13.80 32.231.29 1.58 Capital Work-in-progress [(including Capital Advances Rs.88 Previous Year 17.04 15.77 72.327.327.490.03 47.98 Leasehold Improvements Plant and Machinery (Refer Note 1 below) 41. (v).56 2.98 847.72 2.43 127.02 3.611.62 million (March 31.28 3.37 1.56 123.48 28.61 11.07 70.76 - 99.706. 2009 DEPRECIATION For the Year On Deletions during the year Rs. 28.63 13.84 13.65 2.32 Vehicles Furniture and Fixtures Office Equipment Computer Hardware 30.58 2.71 36.81 1.93 Computer Software Goodwill TOTAL 2. 2009 Accumulated upto March 31.56 43.21 1.39 25.358.72 2.79 million) granted under the Technology Upgradation Fund (TUF) Scheme.613.56 80.88 13.72 38.09 1.12 30.12 45.99 28. 2) Capital Work-in-progress includes adjustment for the capital subsidy of Rs.937.283.26 7.62 53.60 1.94 2.773.79 7.05 44.98 1.79 57.18 11.30 Buildings 2.41 851.10 million)] (Refer Note 2 below).078.064.81 43.33 23.15 3.97 3. 884.16 83. 2008 : Rs. 14.19 17.54 73.13 72.15 38. 2008 Accumulated upto March 31. 31.93 136.14 10.121.60 99.68 261. 2009 2008 Freehold Land 72.23 14.728.15 15. (xiii) . 2009 SCHEDULE 6A : FIXED ASSETS (Refer Notes 1(ii).94 392.920.96 92.11 0.77 3.84 1.889.65 51.19 15.65 26.157.60 8.78 14. (iv).24 million (Previous Year : Rs.19 49. 11. Nil) granted under the Technology Upgradation Fund (TUF) Scheme.37 6.959.86 31.17 2.544. 2008 GROSS BLOCK Additions during Deletions/ the year Adjustments during the year As at March.62 0.25 2.72 40.47 68.25 331. 51 .882.05 2. million NET BLOCK As at March 31. As at March 31.63 25. 20 and 23 on Schedule 19) PARTICULARS As at March 31.72 3.36 1. (xii).180.91 1. 184.68 10.07 3.

(C) Less : Transferred to : Plant and Machinery Buildings Incidental Expenditure Pending Capitalisation/ Allocation 110.Others Salaries.52 0.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.05 8.00 8.24 million) Interest on Bonds .63 0.15 4. 2009 SCHEDULE 6B : INCIDENTAL EXPENDITURE PENDING CAPITALISATION/ ALLOCATION (Refer Notes 1(iii) and 20 on Schedule 19) As at March 31.21 62.11 18.20 0.48 2.17 5.90 13.86 199.84 0. 2008 41.78 52 .10 (B) Less : Sales during Trial Run Sale of Scrap Export Benefits Interest on Deposit Accounts . Previous Year : Rs.07 4.79 1.65 0.11 0.44 191.20 118.01 1.01 0.10 59. In million) As at March 31.Gross (Tax Deducted at Source : Rs.47 8.43 0.65 33.65 0. Wages.02 9.21 million) Profit on Redemption/ Sales of Units of Mutual Funds Dividend Increase in Stocks During Trial Run (C) (A) + (B) .09 72.14 0.91 46.Gross (Tax Deducted at Source Rs.84 3.18 0.14 191.91 1.84 3.83 4.02 320.48 3. Forwarding and Coolie Charges Repairs and Maintenance .40 4.77 15.03 0.99 6.78 81.58 8.13 0.79 168. 7.19 5. 2009 (Rs.49 0.24 Opening Balance Add : Raw Material Consumption during Trial Run Stores and Spares Consumed Dyes and Chemicals Consumed Packing Material Consumed Job Work Expenses Power and Fuel Freight. 1. Previous Year : Rs.45 4.34 1. Bonus and Allowances Contribution to Provident and Other Funds Staff and Labour Welfare Rent Rates and Taxes Printing and Stationery Travelling and Conveyance Legal and Professional Charges Insurance Communication Loss on Redemption/ Sale of Units of Mutual Funds (Net) Postage and Courier Vehicle Expenses Advertising and Sales Promotion Interest on Fixed Loans Interest on Working Capital Loans Discounting and Bank Charges Loan Processing Charges Miscellaneous (A) 62.36 27.66 2.25 26.66 0.06 million.42 2.52 97.02 1.83 0.55 0.03 0. Nil.14 9.43 54. 3.09 138.05 87.29 30.

CHF 200 paid up of Welspun AG.34 5.Less than Rs.800. fully paid up of Welspun Holdings Private Limited. 2008 : 13.000 each.05 34. In million) As at March 31..320.08 37.000 (March 31.05 18.34 5. Unlisted) Investment In Mutual Funds Units of Rs.009.At Book Value .05 0.06 6.000 Equity Shares of Rs.78 53 .60 32. 10 each fully paid up of Welspun Syntex Limited Less : Provision for Diminution 4.SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31. 10. 2008 : Nil) Equity Shares of Rs.437.000 Equity Shares of Rs.668) Principal Floating Rate Fund . 2008 : 4.75 842. 10 each fully paid up of Welspun Zucchi Textiles Limited 9. 10 each fully paid up of Welspun Investments Limited In Others 2.63 * 99.Treasury Plan Retail Option Investment In Bonds Nil (March 31.750.06 0.000) Equity Shares of Rs.000 (Quoted) 283. 10 each fully paid up of BESA Developers and Infrastructure Private Limited 500.000 shares have been pledged with bank for securing the loan given to Welspun Home Textiles UK Limited.18 2.500. 2008 : 23.Trade Investment in Government Securities National Saving Certificates (Lodged with District Magistrate.39 1.67 337.Daily Dividend Reinvestment Plan Nil (March 31.60 56.78 million has been made) 5. Cyprus) Nil (March 31.50 62. 2008 0.00 0.Short Term Plan Dividend Option Nil (March 31.000 (March 31.05 0.114) LICMF Liquid Fund .10 10.50 0.94 13. 10 each fully paid up of Welspun Global Brands Limited 50. 2009 SCHEDULE 7 : INVESTMENTS (Refer Note 1(vi) on Schedule 19) Long Term Non .000 Equity Shares of Rs.Daily Dividend Plan Nil (March 31. additional contribution of Rs.000 Equity Shares of GBP 1 each.046.65 - 6.K. 1. 275.000 (March 31. 10 each fully paid up of Welspun Retail Limited 100 Equity Shares of Rs.01 282. the wholly owned subsidiary of Welspun Holdings Private Limited.000 Equity Shares of Rs. 2008 : 600) Equity Shares of CHF 1.133.01 0. 5 each fully paid up of Welspun Gujarat Stahl Rohren Limited Current (At Lower of Cost and Fair Value) Non Trade . 2008 : 241.71 Aggregate of Unquoted Investments .490) Reliance Liquid Fund .(Unquoted.14 61. 2009 (Rs.89 337. Cyprus (Of the above. U.Dividend Plan Nil (March 31.94 13.32 904. 2008 : 217) Zero Coupon Redeemable Deep Discount (2007 Series-II) Punjab Infrastructure Development Bonds As at March 31. 10 each fully paid up of MEP Cotton Limited Share Application Money Pending Allotment * . (During the year.10 each.500 Equity Shares of Rs.10 - 34.63 * 99.65 45.63 301. fully paid up of Welspun USA Inc.At Market Value 1.033.357) DWS Installment Cash Plus Fund . Valsad) Trade (At Cost) (Unquoted) In Wholly Owned Subsidiaries 1.740.300) LICMF Floating Rate Fund . 10 each Nil (March 31.50 4.50 0.56 244. 2008 : Nil) Equity Shares of Rs.25 2.000 Equity Shares of US $ 0.At Book Value Aggregate of Quoted Investments .56 244.03 18. 2008 : 600. 2008 : 7. Switzerland (Refer Note 6 on Schedule 19) 10. 10 each fully paid up of Welspun Power and Steel Limited 3.24 0.

51 320.42 243.BESA Developers and Infrastructure Private Limited Loan to Others Advance to Subsidiary Companies .Considered Doubtful Less : Provision for Doubtful Debts SCHEDULE 10 : CASH AND BANK BALANCES Cash on Hand Cheques on Hand Balances with Scheduled Banks .Considered Good .41 191. .46 209. In million) As at March 31.07 507.56.41 888. ADVANCES AND OTHER CURRENT ASSETS (Refer Notes 11(b) and 25 on Schedule 19) LOANS AND ADVANCES Unsecured Loans to Subsidiary Companies .077.83 6.16 3.13 0.In Current Accounts . March 31.In Fixed Deposit Accounts (includes deposits aggregating Rs.Welspun Holdings Private Limited.89 16.00 10.33 4.21 34. 229. Cyprus Advances Recoverable in Cash or in Kind or for Value to be Received .140.91 45. Excise.50 851. Switzerland .93 708.83 16.92 155.Welspun USA Inc. 536. 2008 : Rs.70 8.12 828. Cyprus .68 0.64 332.42 236.63 304.91) SCHEDULE 11 : LOANS.Considered Doubtful Other Debts : .21 168.Welspun AG.41 5.37 2. 257 million.38 2. 446.75 296.50 306.44 393.35 753.07 8.901.Welspun Global Brands Limited . overdraft.26 920. Spares.90 million) Minimum Alternative Tax Credit Entitlement Deposits 54 As at March 31.89 1.12 7.Welspun AG.In Exchange Earners Foreign Currency Accounts (USD 8.31 million. Sales Tax and other Government Authorities Advance Tax and Tax Deducted at Source (Net of Provision of Rs.00 2.80 348.Considered Good .37 0.83 617. letters of credit and bank guarantee facilities) .02 16. 2008 758.44 236. Previous Year : USD 5.61 million pledged with banks against term loans.519. 2009 504.42 713.264.519.95 65.16 15.282. March 31.83 743.97 31.40 1.54 7.47 622.63 296. 2008: Rs.84 6.44 1.21 1.34 31.523.976.Considered Doubtful Less : Provision for Doubtful Advances Balances with Customs.60 150.78 44.35 1.40 348.39 182.50 646.256.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.41 1.38 253.54 2. 2009 SCHEDULE 8 : INVENTORIES (Refer Note 1(vii) on Schedule 19) Raw Materials Work-in-Process Finished Goods Stores.38 1.Welspun Holdings Private Limited.93 55.38 20.63 (Rs.47 261.39 . Dyes and Chemicals Traded Goods SCHEDULE 9 : SUNDRY DEBTORS (Refer Note 11(a) on Schedule 19) Unsecured Debts Outstanding for a period exceeding six months : .Considered Good . Switzerland .105.24 42.60 1.92 4.

93 36. de C.07 688. .57 36.68 1. 2008 621.61 41. 2008 March 31.80 1.66 SCHEDULE 12 : CURRENT LIABILITIES AND PROVISIONS CURRENT LIABILITIES Sundry Creditors .866.440.82 million) Gratuity (Refer Note 1(ix)(b) and 18 on Schedule 19) Leave Entitlement (Refer Note 1(ix)(c) on Schedule 19) 1.64 0.50 596.79 1.A.53 45.Total Outstanding Dues of Creditors other than Micro Enterprises and Small Enterprises Mark-to-Market Loss on Options/ Forward Contracts Amounts due to Subsidiary Companies .Total Outstanding Dues of Micro Enterprises and Small Enterprises (Refer Note 14 on Schedule 19) .33 739.90 1.195.27 88.79 21.85 0.27 9. 2009 OTHER CURRENT ASSETS Technology Upgradation Fund Credit Receivable Receivable from Welspun Holdings Private Limited.60 54.V .02 1.04 0.92 0.080.Welspun Mexico S.821.SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31. 2009 March 31. 27.77 48.Welspun USA Inc.49 7.45 34.46 2.12 112.78 53.432.970.71 3.94 1.11 17. 2009 As at As at March 31.29 79. March 31. In million) As at As at March 31. Cyprus (Refer Note 6 on Schedule 19) Interest Accrued on Loans given to Subsidiaries Interest Receivable under Subvention Scheme Interest Accrued on Deposits 525.468.12 5. 36. 2008 : Rs.94 39.07 PROVISIONS Fringe Benefit Tax (Net of Advance Tax Rs.11 million.75 1.29 1.705.09 55 .Christy UK Limited Advance Received from Customers Temporary Overdraft with Scheduled Banks Interest Accrued but not Due (Rs.11 38.04 1.86 8.

95 92.71 2.53 900.782.86 0.43 21.56 9.148.44 4.70 5.670.338.05 323.05 1.47 633. 2009 8.053. 2.36 3. 2008 10.44 5.55 8.94 114.34 116.59 622.71 267.Export Sales .878.488.18) 22.44 191.90 million.50 11.553. Previous Year : Rs.78 778.68 1.55 7.02 13.35) 212.25 621.Others Insurance Claim Profit on Redemption/ Sale of Units in Mutual Funds Profit on Sale of Bonds Profit on Sale of Shares Liabilities Written Back as no Longer Required Provision for Doubtful Advances Written Back Provision for Doubtful Debts Written Back Profit on Cancellation of Forward Contracts Exchange Gain/ (Loss) .23 36.454.34 237.077.Trade Investments Dividend .878.256.77 Manufacturing Expenses Stores and Spares Consumed Dyes and Chemicals Consumed Contract Labour Charges Job Work Expenses Excise Duty On Closing Stocks Power.42 6.18 7.Net Job Work and Processing Charges Excise and Sales Tax Benefit Miscellaneous SCHEDULE 15 : MATERIALS AND MANUFACTURING EXPENSES Raw Materials Consumed Opening Stock Add: Purchases Less: Closing Stock Cost of Traded Goods Sold Decrease/ (Increase) in Stocks Opening Stock Finished Goods Work-in-Process Add: Stock Transferred from Trial Run Production Finished Goods Work-in-Process Less: Loss of Finished Goods and Work-in-Process inventory due to floods Closing Stock Finished Goods Work-in-Process 758.59 212.85 10.43 3.41 46.779.54 3.97 0.46 11.402.38 89.19 33.23 4.66 SCHEDULE 13 : SALES Sales .894.60 2.65 5.53 4.60 (Rs.320.47 1.47 1.408.062.13 (231.018.03 30.48 12.35 1.47 1.453.64 1.30 10.05 4.45 5.06 20.91 12.077.653.13 18. 2009 Year ended March 31.47 1.41 1.80) 25. 1. In million) Year ended March 31.62 332.410.93 .256.09 84.51 2.94 (558.18 1.80 622.59 660.70 17.24 1.94 16.35 1.23 8.Local Export Benefits SCHEDULE 14 : OTHER INCOME Rent (Tax Deducted at Source Rs.13 997.00 221.266.80 171.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.304.21 5.52 246.08 6.88 311.508.151.92 (2.88 1.67 million) Dividend .09 504. Fuel and Water Charges Packing Charges Repairs and Maintenance: Plant and Machinery Factory Building 56 219.89 0.440.53 758.89 1.

ADMINISTRATION AND OTHER EXPENSES Claims. 0.98 231.34 74.As Auditors .75 8.41 91.85 57 .059. 38. Forwarding and Coolie Charges Repairs and Maintenance .33 million) Interest on Debentures Interest on Working Capital Loans (net of interest subvention of Rs.31 760. Previous Year : Rs.76 3. 2009 919.03 1.23 2.88 million.69 43.92 64.14 8.52 987.12 0.Gross (Tax Deducted at Source Rs.28 6.78 0. Discounts and Rebates Brokerage and Commission Freight. 0. Development and Testing Expenses Excise Benefits Receivable Written Off Royalty Advertising and Sales Promotion Donations Auditors' Remuneration .08 0.32 17.035.81 6. 0.48 0.71 138.73 56. 2008 842.94 0.21 963.92 1.41 62.01 million.59 million) Interest on Loans given to Subsidiaries and Affiliates (Tax Deducted at Source Rs.In other capacity .08 464.60 0. Previous Year : Rs.42 64.60 22.99 million) Interest on Bonds (Tax Deducted at Source Rs.15 676.17 12. Previous Year : Rs.SCHEDULES ANNEXED TO AND FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. 2009 Year ended March 31.10 223.47 million.02 million) Cash Discount received 91. In million) Year ended March 31.54 34.96 6.58 43. Previous Year : Rs.92 634.44 million) Interest on Others .57 11.17 32. 24.83 24.69 13.43 41.38 55.53 355.418. Allowances and Other Benefits (Refer Note 18 on Schedule 19) Contribution to Provident and Other Funds (Refer Note 18 on Schedule 19) Managerial Remuneration (Refer Note 13 on Schedule 19) Staff and Labour Welfare SCHEDULE 17 : SELLING.37 million. 0.28 5.09 40. Previous Year : Rs.90 0.59 0.Others Directors' Sitting Fees Rent Rates and Taxes Printing and Stationery Travelling and Conveyance Legal and Professional Charges Insurance Communication Postage and Courier Loss on Sale/ Discarding of Fixed Assets (Net) Provision for Doubtful Debts Provision for Doubtful Advances Debts/ Advances Written off Design.26 5.97 4.41 5.72 15.20 55.63 79.26 270.11 409.21 4.54 83.92 1.58 921.65 36.25 12. 412.31 1. 1.53 21.09 4.42 11.10 21.10 53.As Tax Auditors .14 88.18 (Rs.64 million) Interest to Others Discounting and Bank Charges Less: Interest on Fixed Deposits -Gross (Tax Deducted at Source Rs.65 0.65 197.69 0.17 10.46 14.95 20.47 1.36 3.37 SCHEDULE 16 : EMPLOYEES' REMUNERATION AND BENEFITS Salaries.00 24. 534.28 2. 4. Wages.Out of Pocket Expenses Miscellaneous SCHEDULE 18 : FINANCE EXPENSES (NET) Interest on Fixed Loans (net of interest subsidy of Rs.10 213.09 53.37 88.93 10.18 59.Certification and Other Matters .83 million. 0.22 0.91 13. Nil. Previous Year : Rs.21 8.

WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31. direct labor. at the current/ substantially enacted rate of tax to the extent that the timing differences are expected to crystallise. 5. Cost of work-in-process and finished goods comprises of raw material. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. (iii) Incidental Expenditure Pending Capitalisation/ Allocation Incidental expenditure pending capitalisation/ allocation represents expenses incurred during setting-up of manufacturing facility including preoperative expenses for trial runs and borrowing cost incurred prior to the date of commencement of commercial production. less the estimated costs of completion and estimated selling expenses. 2009 SCHEDULE 19: NOTES TO ACCOUNTS 1. (d) Assets individually costing Rs. (viii)Accounting for Taxes on Income/Minimum Alternate Tax Credit (a) Current Taxation The current tax is determined as the amount of tax payable in respect of taxable income for the year as per the Income Tax Act. for diminution in value other than temporary. 58 . (vii) Inventories (a) Inventories are valued at lower of cost and net realisable value. of India. (ii) Fixed Assets Fixed Assets are stated at cost (net of cenvat credit. 1961. (iv) Borrowing Costs Borrowing costs directly attributable to the acquisition/ construction of fixed assets are apportioned to the cost of the fixed assets up to the date on which the asset is put to use/ commissioned. Cost of traded goods is determined on first-in-first-out basis. Significant Accounting Policies (i) Accounting Convention The Financial Statements are prepared to comply in all material aspects with all the applicable accounting principles in India.000 or less are fully depreciated in the year of purchase. Ÿ Deferred tax assets arising in situations where there are brought forward losses and unabsorbed depreciation as per the Income Tax Act. (b) Cost of raw materials and stores and spares is determined on weighted average basis. construction. The cost includes cost of acquisition. Depreciation on additions/ deletions to fixed assets is calculated pro-rata from/ up to the date of such additions/ deletions. Net realisable value is the estimate of the selling price in the ordinary course of the business. preoperative expenses (including trial run) and borrowing costs incurred during pre-operational period. 1956 (the “Act”) and the other relevant provisions of the Act. (b) Deferred Taxation Ÿ Deferred tax resulting from timing differences between book and tax profits is accounted for under the liability method. Current investments are carried at the lower of cost and fair value. These expenses are net of sales during trial run and other income accrued prior to the commencement of commercial production.. other direct costs and related overheads but exclude interest expense. the applicable accounting standards notified under sub-section (3C) of Section 211 of the Companies Act. erection. if any. is provided on straight-line method at the rates and in the manner prescribed under Schedule XIV to the Act. (b) Leasehold improvements are amortised on straight-line basis over the primary period of lease. 1961. (v) Depreciation (a) Depreciation on fixed assets. if any. (c) Computer software is amortised on the straight-line method over a period of five years. of India. wherever applicable) less accumulated depreciation and impairment loss. are recognised only when there is a virtual certainty supported by convincing evidence that such assets will be realised. (vi) Investments Long term investments are stated at cost less provision. other than leasehold improvements. Cost of software includes license fees and implementation/ integration expenses. installation etc.

2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. (c) Employee Leave Entitlement The employees of the Company are entitled to leave as per the leave policy of the Company. 2008. 59 . Nonmonetary foreign currency items are carried at cost. Employee's State Insurance Fund and Employee's Pension Scheme towards post employment benefits. is amortised as expense or income over the life of the contract. in accordance with the terms and conditions for sales.SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31. it is probable that the future economic benefits associated with it will flow to the Company and the assets can be measured reliably. Realised exchange differences on export debtors are included in sales. based on convincing evidence. Derivative Instruments and Hedge Accounting (a) Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions. is recognized as an asset only when. which give rise to future economic benefits in the form of adjustment of future tax liability. Exchange differences on such contracts are recognised in the Profit and Loss Account in the reporting period in which the exchange rates change. calculated using projected unit credit method. which is expensed in the year to which it pertains. the Company has early adopted the principles of AS 30 'Financial Instruments: Recognition and Measurement”. Any profit or loss arising on cancellation or renewal of such a forward exchange contract is recognised as income or as expense for the period. Changes in the fair value of these hedging instruments that are designated and considered as effective hedges of highly probable forecasted transactions are recognised directly in shareholders' funds under 'Hedging Reserve Account' to be recognised in the Profit and Loss Account when the underlying transaction occurs. (xi) Revenue Recognition (a) Sales revenue is recognised on transfer of significant risks and rewards of ownership of the goods to the buyer. foreign currency fluctuations relating to firm commitments and highly probable forecast transactions are fair valued at each reporting date. other than forward contracts in respect of firm commitments and highly probable forecast transactions. The liability in respect of unutilised leave balances is provided based on an actuarial valuation carried out by an independent actuary as at the year end and charged to the Profit and Loss Account. Export sales are recognised on the date of cargo receipts. (b) In respect of forward contracts. (x) Foreign Currency Transactions. Gratuity Fund is recognized by the income tax authorities and is administered through trustees. The liability for the defined benefit plan of Gratuity is determined on the basis of an actuarial valuation. (b) Defined Benefit Plans The Company has a Defined Benefit Plan namely Gratuity for all its employees. The Employee's Gratuity Trust takes group gratuity policies with insurance companies. and has no further obligation beyond making its contribution. (ix) Employee Benefits (a) Defined Contribution Plans The Company contributes on a defined contribution basis to Employee's Provident Fund. with effect from April 1. (c) In respect of forward contracts and currency options taken to hedge the risks associated with foreign currency fluctuations relating to firm commitments and highly probable forecast transactions. Actuarial gains and losses which comprise experience adjustments and the effect of changes in actuarial assumptions are recognised in the Profit and Loss Account. Domestic sales are recognised on dispatch to customers. Gains and losses arising on account of differences in foreign exchange rates on settlement/ translation of monetary assets and liabilities are recognised in the Profit and Loss Account. Monetary assets and liabilities as at the Balance Sheet date are translated at the rates of exchange prevailing at the date of the Balance Sheet. the premium or discount arising at the inception of forward exchange contract. bill of lading or other relevant documents. 2009 (c) Minimum Alternate Tax Credit Minimum Alternate Tax (MAT) paid in accordance with tax laws. by an independent actuary at the year end. Accordingly. Changes in the fair value of the hedging instruments that do not qualify for hedge accounting are recognised in the Profit and Loss Account as they arise. all of which are administered by the respective Government authorities.

45 As at March 31. Further. (xv) Employees Stock Option Schemes Stock options granted to employees under Employee Stock Option Schemes are accounted as per the accounting treatment prescribed in the Guidance Note on Accounting for Employee Share-based Payments issued by the Institute of Chartered Accountants of India. Excise and Service Tax Appellate Tribunal (CESTAT). The Company has deposited Rs. 2. no provision or disclosure as specified in Accounting Standard 29 “ Provisions. Capital grants relating to specific assets are reduced from the gross value of the Fixed Assets. in the nature of interest subsidy under the Technology Upgradation Fund Scheme (TUFS) are adjusted against 'Interest on Fixed Loans'. Alleged manufacture and clearance of texturised yarn without payment of excise duty and without entering into statutory records. 2009 Rs. Revenue grants in the nature of interest subvention on 'Rupee Export Credit Loans' are adjusted against 'Interest on Working Capital Loans'. If any such indication exists. there was an alleged shortage of Polyester Texturised yarn in physical stock as compared to the stock as per statutory records. require an outflow of resources. 2009 (b) Export benefits arising from Duty Entitlement Pass Book (DEPB) and Duty Drawback scheme are recognised on shipment. The Company has preferred an appeal with the Commissioner of Central Excise (Appeals) – Rajkot. million 18. issued by the Institute of Chartered Accountants of India is made. Ahmedabad against the order passed by Commissioner (Appeals) of Central Excise and Customs. Alleged improper re-credit of duty paid through PLA under Notification no. The Assistant Commissioner of Central Excise has passed the order against the Company. the recoverable amount is reassessed and the asset is reflected at the recoverable amount. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists. but probably will not. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may. (xiv)Provisions and Contingent Liabilities The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. (xvi)Accounting Estimates The preparation of financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reporting period. 2008 Rs.70 million under protest and filed an appeal with the Customs. If such recoverable amount of the asset or recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31. Customs and Service Tax Alleged excess clearance of cotton yarn in Domestic Tariff Area over and above the limit specified in para 9. the carrying amount is reduced to its recoverable amount. Contingent Liabilities not provided for : Description Excise. Where there is a possible obligation or a present obligation but the likelihood of outflow of resources is remote.58 - 60 . As at March 31. 0. Difference between the actual results and the estimates are recognized in the period in which the results are known/ materialised. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. 39/2001 –CE dated July 31.58 318. Revenue grants. 2001 in respect of goods sold from the factory during the period from February 2006 to September 2007.50 - 12. Contingent Liabilities and Contingent Assets”. (c) Dividends are accounted for when the right to receive dividend is established.9 (b) of the Exim Policy 1997-2002. the Company estimates the recoverable amount of the asset. The case has been settled in the Company’s favour during the current year.76 318. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account. (xii) Government Grants Government grants are accounted for when it is reasonably certain that ultimate collection will be made. million 19. (xiii)Impairment of Assets The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired.

The case has been settled in the Company’s favour during the current year. 0.46 1. Vapi. 32/04-ST dated 3 -12-2004. Sales Tax : The Deputy Commissioner of Sales Tax has issued an assessment order for the financial year 2003-04 and raised the demand on purchase of Furnace oil during the year 200304 in respect of purchases made by the Company at a concessional rate of tax. 53/97-CUS 03-06-1997. As at March 31.2009 demanding the amount of duty. interest and penalty.The Company has received an order from Commissioner. The Company has deposited Rs. Daman. The Deputy Commissioner of Sales Tax has issued an assessment order for the financial year 2004-05 and raised the demand on purchase of Furnace oil during the year 200405 in respect of purchases made by the Company at a concessional rate of tax. The Company has filed its reply against the show cause notices issued by Joint Commissioner and Commissioner of Customs and Central Excise.46 4. 1/95-CE 04-01-1995. The Company has filed appeals with Commissioner of Custom and Central Excise. the Commissioner has made an application to CESTAT to withdraw his order passed in April 2008 in respect of non payment of excise duty.03 - 4. on furnace oil used for manufacturing of goods on job work during the period April 2002 to March 2008. During the year. The Company has filed Revision Application with the Joint Secretary. Ahmedabad order. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.60 - 1.09 million under protest and has filed an appeal with the Joint Commissioner of Sales Tax.28 As at March 31. The Supreme Court has upheld the matter in the Company’s favour in January 2009. Stamp Duty : Disputed stamp duty liability on De-merger Scheme. Vadodra.SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31. Alleged improper abatement of service tax on payments made to Goods Transport Agency under Notification No. 1966'.33 72. 2009 Rs.15 0.81 - 11. 2009 Description Alleged improper grant of refund for duty paid through PLA by Assistant Commissioner under Rule 18 of Central Excise Rules during the period from September 2005 to July 2006. Daman demanding the amount of duty. The Company has paid Rs. Daman. The Company has paid Rs. Daman against the orders passed by the Assistant Commissioner of Custom and Central Excise. Ahmedabad’s order passed in favour of the Company. which are used for storage of finished goods. million - 3. The excise department had preferred an appeal with the Supreme Court against CESTAT. Alleged improper availment of cenvat credit on service tax paid on insurance premia paid for availing insurance services that are not used in or in relation to manufacture of final products.02.15 - 14. The Supreme Court has upheld the matter in the Company’s favour in January 2009. Vadodra. Alleged improper cenvat credit availed on “racks” classified as capital goods. Central Excise & Customs. The excise department had preferred a civil appeal with the Supreme Court against CESTAT. The Company received an order from Additional Commissioner. Alleged procurement of furnace oil without payment of duty by wrongly availing the exemptions contained in the Notification No. Centr al Excise & Customs.07 0. interest and penalty. The Company has filed an appeal with the Joint Commissioner of Sales Tax. Daman Alleged procurement of furnace oil without payment of duty by wrongly availing the exemptions contained in the Notification No. 1. Alleged service tax credit based on improper documents.07 million under protest and filed an appeal against the order with Commissioner of Central Excise & Customs (Appeals). 2008 Rs.51 29.56 45.97 6. The Company has received a show-cause notice from Assistant Commissioner of Central Excise and Customs. The Company filed an appeal against the order with Commissioner of Central Excise & Customs (Appeals). 214/86 – CE dated 25-03-1986. million 69.47 1. Department of Revenue.74 million under protest. Alleged non-payment of cess on cotton consumed during the period April 2002 to February 2007 under 'The Produce Cess Act. The Company has filed its reply against the show cause notice issued by the Commissioner of Central Excise and Customs.27 0. The Commissioner (Appeals) of Customs and Central Excise has passed the order against the Company. Ministry of Finance. Vapi against which it has filed a reply. Alleged improper cenvat credit availed and non payment of excise duty under Notification No. based on the review and comments made by the Committee of Chief Commissioners.75 - 61 .82 - 0. Daman dated 11. 0. Daman in March 2009.

30. million 19.67 724.999.32 As at March 31. million 79. in respect of all payment obligations of W ELMEX under the License Agreement entered between W ELMEX and Nautica Apparel Inc. credit and such other facilities extended / to be extended by HSBC Mexico to WELMEX Guarantee of USD 19 million on behalf of WUSA to Verde Chihuahua Industrial S de RL de CV (Verde).WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31. in future. 2008 Rs.81 - - 210.8 million) on behalf of Welspun USA Inc.5 million given by the bank to Welspun Home Textile UK Limited Guarantees aggregating USD 7. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.74 - 401. (WUSA) (Subsidiary Company) to Nautica Apparel Inc.23 - 300. for securing loan of GBP 10 million granted to Welspun Home Textiles UK Limited for acquisition of CHT Holdings Limited. The Company has filed an appeal with the Delhi High Court. Manchester Branch. 1999 in respect of non-realisation of export proceeds. 2008 Rs.75 72. the Company would fulfill its export obligation within the specified time period.13 (d) 62 Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for.41 2. Guarantee of USD 1.41 2.12 . 2008 : USD 1. Amount of duty saved on imports of above goods against which export obligation is yet to be fulfilled.14 Description 3 (a) (b) Guarantees given by banks on behalf of the Company Corporate Guarantees / Undertakings given by the Company : Guarantee issued in the current year in lieu of the indemnity and undertaking provided in an earlier year in favour of Bank of India.92 million (March 31. 2009 Description FEMA : The Appellate Tribunal for Foreign Exchange. imports of raw material are allowed to be made duty free. Institución de Banca Múltiple. Amount as at March 31. 36. New Delhi has issued an order for contravention of the provision of Section 18(2) of the Foreign Exchange Regulation Act. million 0. 2009 Rs. Based on the current operating plan. million 0.12 million on behalf of WELMEX to Nautica Apparel Inc.90 17. in respect of partly paid 600 equity shares of Welspun AG. S.A. subject to the condition that the Company will fulfill. 1973 read with Section 49(3) and (4) of Foreign Exchange Management Act. In accordance with the EPCG Scheme.37 17. in respect of all paymen t obligations of WUSA under license agreements entered between WUSA and Nautica Apparel Inc. Guarantee on behalf of Welspun Global Brands Limited (WGBL) (Subsidiary Company) in favour of Bank of India to secure repayment of loans extended / to be extended by Bank of India to WGBL. Manchester Branch for the term loan of GBP 7..00 - 963.90 As at March 31.00 - (c) 55.68 762. a specified amount of export obligation within a specified time.38 - 56..89 597.00 300. Grupo Financiero (HSBC Mexico) to secure repayment of advances. Others: Uncalled liability of 800 CHF per share. in respect of all payments by WUSA as a tenant under lease agreement between WUSA and Verde. a subsidiary company Accumulated dividend on cumulative redeemable preference shares Claims against the Company not acknowledged as debts Bills discounted in respect of export debtors As at March 31. imports of capital goods are allowed to be made duty free and under Advance License Scheme.22 781. Guarantee on behalf of Welspun Mexico SA de CV (WELMEX) (Subsidiary Company) to HSBC México.65 684. 2008 represents the aforesaid indemnity and undertaking provided to Bank of India. 2009 Rs.55 As at March 31.41 274.17 1.

.34 As at March 31.95 million (equivalent to CHF 16. S. Marketing Division Particulars As at March 31. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. certain loans aggregating Rs. the Company transferred the entire investment aggregating CHF 17 million at cost in equity shares of WAG to Welspun Holdings Private Limited. 2009 and March 31. 2009 Total As at March 31. with effect from April 1. 2012 and January 1.356 million. (ii) As per the Scheme. respectively. the Company acquired 500. 726. acquired the remaining 15% of the equity shareholding in CHT Holdings Limited at a consideration of GBP 2.75 As at March 31. has entered into a Put and Call Option Agreement to buy remaining 24% equity shareholding in SOREMA. WINL was formed for the purpose of transfer of “Investment & Treasury Division” of the Company to a wholly owned subsidiary pursuant to the Scheme. WGBL will issue 1 equity share of Rs. the Company. 10 each credited as fully paid up to the shareholders of Welspun India Limited for every 10 equity shares held by them in Welspun India Limited. 2008 56. 2008 649. 2009. 2008 (ii) Period in which the discontinuance is expected to be completed : Financial year 2009-2010 (iii) Carrying amounts as at March 31. 2009. Further.63 - Investment & Treasury Division As at March 31. 10 per share.431.329.V.2009 Total Assets to be disposed of Total Liabilities to be settled 880. 10 each credited as fully paid up to the shareholders of Welspun India Limited for every 20 equity shares held by them in Welspun India Limited.000 in the equity share capital of WINL. through WHPL. On September 17.55 As at March 31. on March 16. a wholly owned subsidiary of the Company.88 million) given to Welspun AG (WAG). On October 7. WINL will issue 1 equity share of Rs. 6. 2006. were converted into investments in the equity share capital of WAG. the Company formed WINL by investing Rs. at a consideration to be determined based on the respective average EBITDA of SOREMA for last two financial years prior to these dates. for consideration of Euro 6. 10 each representing the entire share capital of WGBL at a premium of Rs.51 653. (iii) Further. 2009 4. on or after January 1. Upon the transfer. 2013 respectively. (a) (i) Pursuant to 'the Composite Scheme of Arrangement in the nature of demerger and transfer of Marketing Division of Welspun India Limited to Welspun Global Brands Limited and Investment & Treasury Division to Welspun Investments Limited and Restructure of Capital of these companies' (the “Scheme”) as approved by the Board of Directors of the Company on September 15. January 1. 500. 2011. 2009 233. 8% each. the Company acquired 76% of the equity shareholding in SOREMA-Tapetes E Cortinas DE Banho.75 . 2007.18 63 1113. assets and liabilities of the Marketing Division of the Company will be transferred to WGBL with effect from the Appointed date. 2008 and the shareholders in the Court convened meeting held on January 13.000 equity shares of Rs. as per the Scheme. On July 3.holding company of Christy Group (“Christy”) through conduits of wholly owned subsidiaries (“WOS”) and through these WOS had also entered into a put and call option agreement to buy the remaining 15% equity shareholding in Christy. 7.SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.85 653. 2008 592. 2008. WGBL was acquired for the purpose of transfer of “Marketing Division” of the Company to a wholly owned subsidiary pursuant to the Scheme. On April 2. Subsequently. the assets and liabilities of the Investment & Treasury Division of the Company will be transferred to WINL with effect from the Appointed date. 2008. During the year. the Company had acquired 85% of the equity shareholding in CHT Holdings Limited . 2009 (the “Appointed date”). its wholly owned subsidiary. the Marketing Division of the Company and the Investment & Treasury Division of the Company were transferred to Welspun Global Brands Limited (WGBL) and Welspun Investments Limited (WINL). 2009 and filed with the Registrar of Companies on June 12. 2009 vide an Assignment dated March 16. (b) Information relating to the discontinuing operations : (i) Date of the initial disclosure event : September 15. 2008 of the total assets to be disposed of and the total liabilities to be settled: Rs. the Company. 2008. Upon the transfer. Portugal (“SOREMA”) through Welspun Holdings Private Limited (WHPL). On December 20.21 as specified in the Share Purchase Agreement. through the conduits. million 5. a wholly owned subsidiary.

05 232.000 387.77 Investment & Treasury Division For the year For the year ended March ended March 31.80 110.04 - Investment & Treasury Division For the year ended For the year ended March 31.189.13 7.000 110. 2008 86. 110. 2008 31.000 1.80 per equity share (closing market price as on May 16.94 102. 2009 Options vested but not exercised on March 31. of Stock Options Weighted Average remaining life in years 258.46 1. 2008 31.182.13 258.17 2. 2008 256.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.13 . prior to the date of grant. million Particulars Marketing Division For the year ended For the year ended March 31.494.25 691. pre . 2009 iv) Amount of revenue.000 110.39 2. 2009 1.079.13 3.80 516.006. 2009 No.000 64 Weighted Average Exercise Price (Rs.80 1.80 110. the Company issued Employee Stock Options under the Employee Stock Options Scheme (the “Scheme”) to employees of the Company and its subsidiaries with a right to subscribe to equity shares at a price of Rs.77 Revenue Operating Expenses Pre . million Particulars Marketing Division For the year For the year ended March ended March 31. Summary of Stock Options Options outstanding on April 1.08 315.00 - - - 8.) 1.20% of the Options granted to vest at each of the 1st and 2nd Anniversaries of the date of grant.05 7. 2009 March 31.80 Information in respect of options outstanding as at March 31.80 204. In the event of cessation of employment due to death.08 83.30% of the Options granted to vest at each of the 3rd and 4th Anniversaries of the date of grant. (ii) Exercise: Options vested with an employee will be exercisable within 3 years from the date of their vesting by subscribing to the number of equity shares in the ratio of one equity share for every option.13 Cash flows from Operating activities Cash flows from Investing activities Cash flows from Financing activities 50.33 1. 2006.Tax Profit s Fringe Benefit Tax (v) Amounts of net cash flows attributable to discontinuing Operations Rs.67 7.13 - Total For the year ended March 31. . 2009 March 31.000 387. 2009 774. On May 17. of Stock Options Weighted Average Exercise Price (Rs.tax profit and tax in respect of the ordinary activities attributable to the discontinuing operations Rs.80 110.20 691. 2009 No. 2008 Options granted during the year Options forfeited/lapsed during the year Options exercised during the year Options outstanding on March 31. resignation or otherwise the Options may lapse or be exercisable in the manner specifically provided for in the Scheme.75 1.290.12 2.94 109.13 4.) 110.01 108. 2006).000 110.079. The salient features of the Scheme are as under: (i) Vesting : Options to vest over a period of four years from the date of their grants as under : . 2009 232. at the latest available closing market price of the equity shares.52 2. 2008 1.80 2. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.000 110. expenses.75 For the year ended March 31.

20 million) and Rs.16 32. 70. 266.61 million (March 31.V Welspun AG Welspun Global Brands Limited SOREMA – Tapetes E Cortinas De Banho. respectively. are secured by exclusive charge pari passu. no expense or liability arising from the Scheme has been recognised. (c) The Company's share of the aggregate amounts of assets and liabilities as at March 31. 2008: Rs. de C. 2008 As at March 31. 2000 and interest and dividend thereon.20 million) given against use of office premises to a company in which some of the Directors are interested as members. 12. whichever is later. 2009 The compensation costs of stock options granted to employees are accounted by the Company using the intrinsic value method.A. 2008: Rs. 11. The fair value of the options as per the 'Black Scholes' model is Rs.08 150. 10. 15.88 2.08 million (March 31. on specific fixed assets of the Company and by lien on fixed deposits of the Company.000 0% Redeemable Preference Shares of Rs. 2008: Rs.509.121. the employee compensation cost would have been higher by Rs.215. packing credit. subject to prior charge on specific assets as per 10(b) below and on current assets as per 10(c) and (d) below against borrowing from banks for working capital finance. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. 500. (a) Term loans from banks including interest thereon are secured by way of first charge on entire movable and immovable properties of the Company.SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.73 (b) Deposits of Rs. finished and semi finished goods.04 8.10 million) and interest thereon. (d) The working capital loans (other than referred in 10(c) above). S.95 172. Christy UK Limited Christy USA LLC Welspun Mexico S. (b) In addition to 10(a) above.50 million (March 31. Profit After Tax lower by Rs. 9.73 million) due from subsidiaries as below : Rs. 7. Accounting for Investments. are secured by hypothecation of raw materials.34 million). 2009 Welspun USA Inc. (c) The working capital loan towards overdraft facility aggregating Rs. 1. Since.121. 47. 9. inter se.39.34 1. 0.13 8. 63. Nil (March 31. quoted market price of the underlying equity shares of the Company was equal to the exercise price of an option.000/- * 37.67 million) and Rs. Had the Company adopted fair value method in respect of options granted. million As at March 31. Interest in Joint Venture (a) The Company has accounted the investments in Joint Ventures in Welspun Zucchi Textiles Limited (WZTL) and MEP Cotton Private Limited (MCPL) in accordance with Accounting Standard 13.(a) Sundry debtors include Rs.75 million (March 31. and demand loans from banks. 179. on the date of grant of option. both present and future. Nil (March 31.53 6. Total *Less than Rs. 2009 and income and 65 .10 872.91 9. respectively.A. (b) The Company's share of contingent liability of WZTL and MCPL is Rs.43 million (March 31.20. 3.36 million and the basic and diluted earning per share would have been lower by Re. 100 each fully paid up are redeemable at par in the year 2009-2010 or after repayment of all outstanding term liabilities and preference shares held by banks and financial institutions as on April 1. ranking pari passu. 14. term loans from Banks aggregating Rs. which includes cash credit.77 179. 14. 2008: Rs. 2008: Rs. stores and spares and book debts of the Company and second charge on entire fixed assets of the Company.36 million. 2008: Rs. Nil) is secured by subservient charge on company's entire current asset and Technology Upgradation Fund subsidy receivable from Government of India for textile industries towards term loan borrowing by the Company and against collateral of post dated cheques. 2008: Rs. 4. 4. 10.

88 140. 2008 414.34 431.19 442. Such excess awaits approval of the shareholders of the Company.33 March 31.45 8. 2009 101.83 1.91 1. 1956: Rs.22 17.84 539. million Year ended March 31.18 17.72 0.13 0. 0.20 34.17 Year ended March 31.23 4. Remuneration paid to the Managing Director and a Whole Time Director is in excess of the maximum amount payable as prescribed under Schedule XIII to the Act by Rs.18 44.31 7. 0. Million Year ended March 31. respectively. 2008 649.45 million and Rs.304.93 166.33 MCPL March 31. 2008 in accordance with Section 198 of the Companies Act.14 8. 2009 are as under: WZTL Particulars Assets Liabilities (excluding Share capital and Reserves and Surplus) Income Expenditure (including provision for taxes) March 31. 2009.76 million.22 355. 1956 @ 10% of the above Restricted to 17.69 6. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. 2008 8.46 523.43 0.92 5.55 March 31. by a special resolution in a general meeting of the Company. Due to inadequacy of profits as computed under Section 198 of the Act.51 431. no commission is being paid for the year ended March 31.61 Note: Provisions for leave entitlement and post retirement benefits which are based on actuarial valuations done on an overall company basis are excluded above. million 13.46 8.43 66 . 2009 422.97 3. 2009 expenditure of WZTL and MCPL for the year ended March 31.19 18. Computation of Net Profit for the year ended March 31.72 140.84 17.89 585.52 Net Profit Add: Managerial Remuneration and Sitting Fees Depreciation as per the Profit and Loss Account Provision for doubtful debts/ advances Loss on sale/ discarding of fixed assets Provision for diminution in value of Investments Less: Provision for doubtful debts/ advances written back Profit on redemption/ sale of units in Mutual Funds Profit on sale of bonds Gain on Premature Redemption of Debentures Depreciation as per Section 350 of the Act Net profit as per Section 198 of the Act Maximum remuneration payable under the Companies Act.52 847.73 171.01 Rs.61 847. 2008 89. Managerial Remuneration and Sitting Fees paid/ payable to directors: Rs.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.63 40. 2009 Managing / Whole time directors (i) Salary and Allowances (ii) Perquisites (iii) Commission to Managing Director and a Wholetime Director Total Directors other than Managing / Whole time directors Sitting fees Total 0.

796 48.Daily Dividend Option .Treasury Plan Retail Option SBI Magnum Insta Cash Fund .694.Institutional Daily Dividend Principal Floating Rate Fund SMP Institutional Option . 2006.Institutional Plan .890 2.78 0.880.327 4. million i) Particulars the principal amount and the interest due thereon (to be shown separately) remaining t unpaid to any supplier as at the end of each accounting year.924. Disclosure for Micro and Small Enterprises: Rs.064. for the purpose of disallowance as a deductible expenditure under section 23 of the Micro.000 3.046 13.188.159 29.004.162 184.593 31.801.446 10. along with the amount of the payment made to the supplier beyond the appointed day during each accounting year.000 16. 2009 Year ended March 31.358 268.Reinvestment Option LICMF Floating Rate Fund .400 17.Daily Dividend Reinvestment Option ING Liquid Fund Super Institutional . -Total interest Accrued .045.000 The above information and that given in Schedule 12.537 5.358 2.584 1.01 0.064.650 237.01 0.322 273.Daily Dividend Plan Fortis Overnight Fund .Daily Dividend Reinvestment Canara Robeco Liquid Fund .01 * * * v) * less than Rs.Interest due thereon Year ended March 31.000 5. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.764.Daily Dividend Plan HSBC Cash Fund .Dividend Plan LICMF Saving Plus Plan .622 295.Daily Dividend Reinvestment Option JM High Liquidity Fund .829 12.Principal .157.046 12.291 100.Reinvestment UTI Treasury Advantage Fund . 15. 2006.Daily Dividend Option .Institutional Plus .27 - iv) 0. 2009 500.Institutional .Daily Dividend Reinvestment Option JP Morgan India Liquid Fund . 2009 INVESTMENTS Number of Shares/ Number of Shares/ Units Sold during Units Purchased during the Year ended the Year ended March 31.Daily Dividend UTI Money Market Fund .045.Short Term Plan .446 5.Daily Dividend Reinvestment Reliance Liquid Fund .351 1.004.427 237.Daily Dividend Plan LICMF Liquid Fund .243.Interest the amount of interest due and payable for th e period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Micro.Daily Dividend Plan Fortis Money Plus Institutional Plan .880.602.773 29.Daily Dividend Option SBI Premier Liquid Fund .Daily Dividend Reinvestment Option DBS Chola Liquid Inst Daily Dividend Reinvestment Plan DWS Installment Cash Plus Fund .764.593 2.618 1.Institutional .910 10. 2009 March 31.602.01 0.574. Small and Medium Enterprises Development Act. until such date when the interest dues as above are actually paid to the small enterprise.544 4.544 858.10 0.924.75 * - 0.004.243.Reinvestment 67 .890 13.SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.042. .75 * ii) iii) the amount of interest paid by the buyer in terms of section 16 of the Micro. the amount of interest accrued and remaining unpaid at the end of each accounting year.100.472 603.157.291 5.Institutional Plan .884.884. Switzerland Birla Sun Life Cash Plus .351 1.584 184.162 5.Dividend Plan LICMF Income Plus Fund .751. Details of Purchase and Sale of Investments during the year ended March 31. Small and Medium Enterprises Development Act.694. 2009 14.Daily Dividend Reinvestment Plan LICMF Liquid Plan .252.Super Institutional Daily Dividend.574.159 47.Interest remaining unpaid the amount of further interest remaining due and payable even in the succeeding years.Daily Dividend Reinvestment Lotus India Liquid Fund . 2006.004.Daily Dividend Tata Liquid Super High Investment Fund .000 50.427 2. Small and Medium Enterprises Development Act.418 3.Institutional Plan .Super Institutional .773 295.418 858.447 128 13.252. 1.116 Welspun Global Brands Limited Welspun Investment Limited Welspun Gujarat Stahl Rohren Limited Welspun AG. 1.327 5.537 779 24.Principal .“Current Liabilities and Provisions” regarding micro and small enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. 2008 0.116 100. .650 31.

44 (3.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.60) (39.963.50) 520.27 (26.85) 255.11) (2.82 140.22 (281.58 30. 5.303.91) 12.51) 57.72) 211.80 MT (Previous Year : 21.50) 7.15 Purchases Quantity (Rs.41 (625.00 (11.948 MT).36) 30.70 (24.85 (267.82 (188.30 (7.840 (March 31.60 (159.54 MT (Previous Year : Nil) of Rs. million) Quantity 31. 2009 (As certified by Management) Cotton Terry Towels Cotton Yarn Bed Sheets Rugs 38.70 (248.45 (3. 2. 16. a) Additional information pursuant to Part II of Schedule VI to the Companies Act. Grey Fabric . as amended in April 1993.Bed Linen Products production includes captive consumption of 2.264.49) Quantity 30.20) 231. Previous Year figures are given in brackets.40 3.83 million (Previous Year : Rs.04) 24.195.465.40 128.18) 15. 118.349.79 4.18 (66.151 (March 31. 2008 : 28.975.04 (30.513.40 (496.59) (54.072.618.201 (March 31.18) 286.40 (88.21) 884.980.17) 26.05) 67.85 (646.836.018.822.04) 118.557.99 MT (Previous Year : Nil). production.59 (295.72) 37.75) (1.T.83 262.51 (262.326 (March 31.65 (10.162.38 625.67) 2. 3.62 (545.90 (3.58 (41.30 687. Nil) sold during Trial Run (Refer Schedule 6B).68 (0.09) 359.38 (32.17) 308.125.34) 6. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.471. 68 .05 1.51) 60.40 (496.40 (2. 0.23 (490. 2009 16.79) 0. 2008 : Nil) M.618.672.61 - Decorative Bedding 000 Mtrs Grey Fabric .94 (11.10) 109.T.04) 141.00) (359.Bed Linen Products 000 Mtrs (Refer Note 3) Rugs (Refer Note 4) MT - Others (Refer Note 5) Traded Cotton MT Cotton Yarn MT 54. b) Detailed information in respect of opening and closing stocks.61) - (3.072.779.32 (28.92 (29. Cotton Yarn production includes captive consumption of 26.50) 209.51) 1. Nil) sold during Trial Run (Refer Schedule 6B). purchases and sales in respect of each class of goods produced and traded : Unit Stocks at Commencement Production Quantity (Rs. 28. no licences are required for the products manufactured by the Company. million) Stocks at Close Quantity (Rs. Installed Capacity as at March 31.62 (6.54 Sales (Rs. Sales Rugs includes 309.85) Bed Linen Products 000 PCS Others Total Notes: 1.552.65) 295.28) 23.700) 000' Mtrs 10. 4. 42.85) - 7. million) 281.74) 309.38 (38.87) 39.17 (29.74) 450.T.23 (9.00 (11.38) 332.97 2.303.295) M.724.89) 520.10) 54.05 (894.074) M.78 (0.49 (312. 2008 : 37.79 (10.91 (36. 1956. million) 141.49) Cotton Yarn (Refer Note 2) MT Bed Linen Products 000 Mtrs 3. Not Applicable a) Licensed Capacity As per the Industrial Policy declared in July 1991.223.088.61 - 3.381. 2008 : 35.35) - 286.098.58 million (Previous Year : Rs.455.65) Class of Goods Manufactured Terry Towels MT 1. Sales Others includes Rs.51) 2.

171.317.30 5.653.42% 87.11% 100. Nil) consumed during Trial Run (Refer Schedule 6B) d) Value of Imported and Indigenous Raw Materials and Stores. Raw Material Imported @ Indigenous @ Total @ Includes imported raw material Rs.764. 2008 (Rs.00% 379.47 166.52 23.00 29.92 5.80 1.35 3. 2.836. Nil) and indigenous stores & spares and dyes & chemicals Rs.64 10. 63.003.573.75 1.65 6.58% 100% 163.SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.62 5.508. million) 20.17 9.03 Year ended March 31.37 million (Previous Year : Rs.48 210.66 2.87 91.35 4.09 1.47 5. (Rs.537.94 Packing Material 12. 2009 Year ended March 31.03 Year ended March 31.27 103.64 Stores & Spares and Dyes & Chemicals 203.131.317.14 7.57 53.83 455.230.00 846. Spare Parts Consumed and Percentage Year ended March 31. 2009 % (Rs.11 1.43 1. 17.87 121.37 165. 2009 Qty.55 207.36% 100.22 FOB Value Of Exports Expenditure in Foreign Currency Travelling Commission Professional Charges Claims.153. million) 19.80 1.78 million (Previous Year : Rs.79 21.32 5.766.604.09 1.00 113. 2009 March 31.65 24.84 23. million) 10.00 2.13 100.00 6.89% 93.230.308.60 million (Previous Year : Rs.057. Nil) and indigenous raw material Rs.28 2.91 52.52 e) # Includes imported stores & spares and dyes & chemicals Rs. million) Value of Imports on CIF Basis: Raw Materials 544.48 102.83 522.274.30 8. Nil) consumed during Trial Run (Refer Schedule 6B) Year ended Year ended March 31.19 78.55 1.68 5. Nil) consumed during Trial Run (Refer Schedule 6B) ** Includes 139. million) (Rs.67 Total 1.00% 556.85 9.91 414.161. (Rs.85 69 f) g) . Nil) consumed during Trial Run (Refer Schedule 6B) 2. 42. Discount and Rebate Freight Advertisement and Sales Promotion Interest Others Total 9.06 MT (Previous Year : Nil) of Rs. 38.09 UNIT c) Raw Material Consumed: Cotton Yarn* Cotton Fabric Consumed** Bed Linen Fabrics Total MT MT MT 000 Mtrs. 2008 Qty.89 MT (Previous Year : Nil) of Rs.224.38 703.714. 2008 % (Rs. 17.97 Capital Goods 1.508.673.21 million (Previous Year : Rs. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.44 1.94 million (Previous Year : Rs.358. million) 6. Stores and Spares and Dyes and Chemicals Imported # Indigenous # Total 12.26 793.128.84 8.64% 89.22 million (Previous Year : Rs.711. *Includes 381.

2009 March 31. 2008 as given in Note 1(x)(c) above.33) 0.93) (4. As of the Balance Sheet date. 2009 (Rs.98 million).00 (46. million) Currency USD (Equivalent Rs.26) 59.95 million pertaining to 'Marketing Division' of the Company will be transferred to Welspun Global Brands Limited with effect from April 1. 2008 1. Disclosure of Derivative Instruments A.38 (73. in the ‘Hedging Reserve Account’ instead of the earlier policy of recognising such losses in the Profit and Loss Account.62) (647.95) The entire balance of Hedging Reserve Account as at March 31. 2008 : Rs.54) C. the Company has debited and carried forward loss aggregating Rs.769. million) Currency USD (Equivalent Rs. 2009 (903. 2009 of Rs. 2008 161.) EURO (Equivalent Rs. 294. The following table summarizes activity in the Hedging Reserve related to all derivatives classified as cash flow hedges during the year ended March 31.03 million (March 31. 1. Pursuant to the adoption of AS-30 with effect from April 1.95) (496. to Welspun Global Brands Limited 70 .69 2.44 12.) Forward Exchange Contracts and Option Contracts March 31. 294.774.76 10.95 million arising on fair valuation of hedging instruments that are considered effective.28 (7.91 (49.59) (294.640. pursuant to demerger and transfer of 'Marketing Division' as referred in Note 7 above. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. 1.40 (23.87) 0. 2009 March 31.38 114. the foreign currency exposure not hedged by a derivative instrument or otherwise is amounting to Rs.372.44) (116.83) B. million) Particulars Balance as at the beginning of the year Unrealised gain/ (losses) on cash flow hedging derivatives during the year Net gains/ (losses) reclassified into net income on occurrence of hedged transactions Balance as at Year end Year ended March 31. (608.) Forward Exchange Contracts and Option Contracts March 31. Derivative instruments outstanding at the year end : i) Forward Exchange and Option Contracts to hedge the foreign currency exposure for payments to be received against exports and other receivables: (Rs. 2009 17.33) ii) Forward Exchange and Option Contracts to hedge the foreign currency exposure for payments to be made against imports and other payables: (Rs.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.) JPY (Equivalent Rs.) EURO (Equivalent Rs. 2009.

72 4.26) 8. Amount recognised in the Balance Sheet Present Value of Obligation Fair Value of Plan Assets Liability/ (Assets) recognised in the balance Sheet and included under Current Liabilities and Provisions (Refer Schedule 12) respectively and under Loans. million 2007-08 11. Wages.21 (3. Allowances and Other Benefits (Refer Schedule 16) 52.50 7.72 5.53) 9. Major Assumptions Discount Rate : .92) 8.90) 50.24 2008-09 47.72) (2.26 (7.19 3.55 1.61 47.Employers' Contribution to Employee’s Pension Scheme * * Included in Contribution to Provident and Other Funds (Refer Schedule 16) II Defined Benefit Plan Contribution to Gratuity Fund a.24 (6.13 (6.16 50. million As At As At March 31. 1995 During the year.00 Rs.23 53. Change in Fair Value of Plan Assets Opening Fair Value of Plan Assets Expected Return on Plan Assets Actuarial (loss)/gain on Plan Assets Contributions Benefits paid Closing Fair Value of Plan Assets d. The Company has classified the various benefits provided to employees as under :I Defined Contribution Plans a.) 2007-08 8. Employers' Contribution to Employee’s State Insurance c.00 (% p.50 (6.18 47.24 6. Advance & Other Current Assets (Refer Schedule 11) f.Staff .16 2008-09 53.a. Change in the Present Value of Obligation Opening Present Value of Obligation Current Service Cost Interest Cost Benefit paid Actuarial Loss on Obligations Closing Present Value of Obligation c.01 - Present Value of Funded Obligation Fair Value of Plan Assets Funded Status Present Value of Unfunded Obligation Assets recognised in the balance Sheet and included under Loans.01) 1.44 2008-09 7. million 2007-08 34.02 2.10 17.61) 1.23 11. Reconciliation of Present Value of Defined Benefit Obligation and the Fair Value of Assets SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31. 2008 52.32 29.69 36.10) 2.82 2008-09 11.01 6. the Company has recognised the following amounts in the Profit and Loss Account: . Employers' Contribution to Provident Fund b.Employers' Contribution to Employee’s State Insurance * .83 11.50 8. Expenses Recognised in the Profit and Loss Account Current Service Cost Interest Cost Expected Return on Plan Assets Net Actuarial Loss/(gain) Recognised in the period Total expenses Recognised in the Profit and Loss Account ** Actual (Loss)/Return on Plan Assets ** Included in Salary.13 (2.01) Rs.73 20.03 6.48 (8. Advances and Other Current Assets (Refer Schedule 11) Unfunded Net Liability Recognised in the Balance Sheet disclosed under Current Liabilities and Provisions (Refer Schedule 12) e. b.Employers' Contribution to Provident Fund * .02 (12. million 2007-08 36.61 47. million 2007-08 25.55 Rs.18.Worker Expected Rate of Return on Plan Assets Salary Escalation Rate @ @ The estimates for future salary increases considered takes into account the inflation.23 53.27) 71 .25 8. promotion and other relevant factors. 2009 March 31.00 5.19 3.16 50.55 (1. Employers' Contribution to Employee’s Pension Scheme.03 Rs.02 (4.00 6.20 52. 2009 2008-09 32. seniority.72 4.23 Rs. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.61 1.68 7.24 4.56 7.10) 53.50 8.

In accordance with the Company's policy given in Note 1(x) above.87 March 31. million External Revenue Carrying Amount of Segment Assets Capital Expenditure (excluding the Incidental Expenditure Pending Capitalisation/ Allocation) India March 31.88 21.578. total cost incurred to acquire segment assets. 2009 13. total carrying amount of segment assets.302.07 11. Thus. 156. segment results.167.67 1. 2009 and as on that date.443.87 3.037.90 1.142. March 31. 379. 2009 19. 2008 12.44 23. in the context of Accounting Standard 17 on Segment Reporting.02 1. the segment revenue.167. March 31. 90. total carrying amount of segment liabilities. net exchange loss of Rs.48 (iii) Notes: (a) The Segment revenue in the geographical segments considered for disclosure are as follows: .40 25. (I) Information about Primary Business Segment The Company is exclusively engaged in the business of Home Textiles which. 1. results.581.705.Revenue within India includes sales to customers located within India and earnings in India. total amount of charge for depreciation during the year are all as reflected in the financial statements for the year ended March 31.097.66 million.99 million.16 million) attributable to the acquisition or construction of qualifying assets are capitalised during the year as part of the cost of such assets. (b) Segment revenue.69 million (net of interest subsidy of Rs. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.060. 72 .71 3.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31. Previous Year: Rs.59 million (Previous Year: net exchange gain of Rs. 2009 2008 4. (ii) Information about Secondary Geographical Segments: Rs. 2009 2008 9.33 966. 2009.04 2060.705.409.Revenue outside India includes sales to customers located outside India.40 23. is considered to constitute a single primary segment.21 million) has been accounted in Profit and Loss Account.04 - Total March 31. .48 Outside India March 31. issued by the Institute of Chartered Accountants of India.997. Borrowing Costs aggregating Rs. 20. 99. Segment Information for the year ended March 31. 21. assets and liabilities include the respective amounts identified to each of the segments and amounts allocated on a reasonable basis. 145. Previous Year: Rs. earnings outside India and export benefits on sales made to customers located outside India.444.

2009) (b) Joint Venture Companies Welspun Zucchi Textiles Limited (WZTL) MEP Cotton Limited (MCL) (c) (d) Associate Company Enterprises over which Key Management Personnel or relatives of such personnel exercise significant influence or control and with whom transactions have taken place during the year Welspun Retail Limited (WRL) Welspun Gujarat Stahl Rohren Limited (WGSRL) Welspun Power and Steel Limited (WPSL) Welspun Syntex Limited (WSL) Welspun Trading Limited (WTL) Welspun Wintex Limited (WWL) Welspun Mercantile Limited (WML) Krishiraj Trading Limited (KTL) Welspun Logistics Limited (WLL) Welspun Realty Private Limited (WRPL) Mertz Securities Limited (MSL) Welspun Polybuttons Limited (WPBL) Vipuna Trading Limited (VTL) Goodvalue Polyplast Limited (GVPL) Welspun Foundation for Health and Knowledge (WFHK) Refined Salts Private Limited (RSPL) B. Holland (Held through SOREMA w. LLC (CUSA) (merged with WUSA w.f. L.Goenka (BKG) R. S. July 24.SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31. 2008) SOREMA Welspun Espana S.f. March 16. 2008) Welspun Investments Limited (WINL) (w.e. U. R. 2009) Besa Developers and Infrastructure Private Limited (BESA) Welspun Global Brands Limited (WGBL) ( w. V. Portugal (SOREMA) (Held through WHPL) SOREMA Welspun Distribution and Logistics.. Related Party Disclosures (i) Relationship Control Subsidiary Companies (a) Welspun USA Inc. Portugal (Held through SOREMA w. L.A. USA (WUSA) Welspun Holdings Private Limited.A.e.e. Cyprus (WHPL) Welspun AG (WAG) (Held directly till March 15.. September 3. September 17.f.e. A. Mittal (MLM) Deepali Goenka (DBG) (e) Key Management Personnel (f) Relatives of Key Management Personnel 73 . S. 2008) Christy Europe GmbH (Held through CHTL) ER Kingsley (Textiles) Limited (ERK L) (Held through CHTL) SOREMA – Tapetes E Cortinas D e Banho.e. February 6. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. 2009 22.f..f.e.f.. 2008) Welspun Mexico S. April 1. Spain (Held through SOREMA w. de C.f. October 7.K.e.V (WMEX) (Held through WAG) Welspun Home Textiles UK Limited (WHTUKL) (Held through WHPL) CHT Holdings Limited (CHTHL) (Held through WHTUKL) Christy Home Textiles Limited (CHTL) (Held through CHTHL) Christy UK Limited (CUKL) (Held through CHTL) Christy 2004 Limited (Held through CUKL) Flyspark Limited (Held through CHTL) Christy USA. 2009 and through WHPL w.. Mandawewala (RRM) M. 2008) SOREMA Welspun Benelux B.

@ Shares of WAG sold to WHPL # Less than Rs.66) 49.24 (13.10) (0.27 (3.47) - (31.06 - - - - - 20.45) - (122.86) 22.43) # (150.68) 3.35) 2.91) - Dividend Received - - Donation - - 10.63) - Investments Share Application Money Pending Allotment (71.07 0.16 32.23 Loans. * Investment made during the year is out of conversion of loans given.151.33 (12.83 (6.10 (0.02 (20.94 WELSPUN INDIA LIMITED Sale of Fixed Assets 30.10) - - Sale of investment during the year - 737.50 3.78) - Interest Income Claims.50) - 74 0.63) 1.88 (4.89) 11.005.48 (1.45) 655.01 0.18) 5.50) 5.51) 32.56) - Creditors - (6.76 (16.42) - 22 (ii) Following are the transactions with related parties mentioned in (i) above and the year-end balances PARTICULARS Transactions during the year Loans.70 (7.65) - Notes: Previous year figures are given in brackets.46 (3.14 (0.48) (0.47 (4.68 (220.16) (11.64) (0.06) - (156.86 (53.04 10.86 10.50) # (6.05) (11.17 (25.72 (8.00 (34.63 (480.05 (0.01) 511.36) 212.77) 0. Advances and Deposits received 181.00 (11.95 (2.60 1.00 0.20) (0.89) - Remuneration and Commission 16.10) - (425. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.00) (100.02) - - 3.03 (56.61) 1.13) # (42.63 (244.07) 13.60 31.35 (412.62) - - Annual Report 2008 -09 Sale of Services/ Expenses incurred 4.89) 13.31 0.000 .67) - Purchase of Fixed Assets / Capital Goods - Capital Advance (9.23) 4.387.50 10.24) - 99.01 (71.91) 44.21) 40.SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31. 2009 Rs.73 (51.10 (8.50 (99.95* 0 (4.89) - 337.88) - (20.50) - (8.14 (0.00) 10.61) - - (0.00) 42.00) - Debtors (Net of Bills Discounted with Banks) 872.15) 259.66) - Purchase of Goods - - Purchase of Services/ Expenses incurred - Sale of Goods/ DEPB Licenses - Job Charges Received 193.14 (31.92) 172.46 0.16 0.94) 282.05) 26.06 (337.49 (1.20 (2.49 (24.88) - - (1.00) 0.29 2.05) 0.00 (10.74 (203.05) - 37.31 (2.92 (254.16 4. million BESA WGBL WINL SOREMA WAG WMEX CUSA WZTL WRL WGSRL 0.05) - Purchase of shares of WGBL during the year @ (0.16) (12.95) 16.29 (141.50 - 5.66 MCL ERKL CUKL 0.29 (89.35 (2.56 (34.44) 6.34 0. 10.12) 21. Discount and Rebate 32.50) - Closing Balance Loans.04 (1.07) 10.45) 18.72 (35.62 (705.37) (65.40) 498.03 42.78* - (0.95 (3.93 726.04) - 257.48 (111.44) 7. Advances and Deposits given Deposits Received 545.40) # 244.58 (155.84 (98. Advances and Deposits given WUSA WHPL Repayment of Loans.46 (15.34 (1.36) (4.78) 0. Advances and Deposits given (Including Other Current Assets) 345.11) - 69.06 0.94 (2.05 34.40 1.28) 9.94 (0.67 (6.13) - Share Application Money Paid - - Investment Made during the year 275.28 0.50) 0.53 (9.18) 0.73) 4.28 33.41 (618.77) 3.87 (98.04) 64.

@ Shares of WAG sold to WHPL # Less than Rs.40 (250.27) - 2.74) # - 3.60) - Notes: Previous year figures are given in brackets.00) - # 0.51) # - Donation - - Share Application Money Paid - - Investment Made during the year - - Purchase of shares of WGBL during the year - - Sale of investment during the year - - Closing Balance Loans.41 (23.23 (2.63 (111.00) (9.40 - - - - Loans. million MSL WPBL RSPL WFHK BKG RRM MLM DBG 9.16 (3.27) 0.50 (1.05 (6.52) 4. Advances and Deposits given (Including Other Current Assets) 0.93 0.50) - - - (0.42) - - Creditors - Investments # Share Application Money Pending Allotment - 0.72) 2.59) - Sale of Services/ Expenses incurred Sale of Fixed Assets 12. 10.16 (6.60 (5.29) - Interest Income - - Claims. Advances and Deposits given - - Repayment of Loans.10) # 2.28 - Debtors (Net of Bills Discounted with Banks) - - 1.82) - 3.34 - - 29. Advances and Deposits given - - Deposits Received - - Purchase of Goods Purchase of Services/ Expenses incurred Sale of Goods/ DEPB Licenses Job Charges Received 58. 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.63 (77.85 (7.61) 3.69 (0.50) 0.67 2.00) (23.SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31.20 17.20) - (11.90 (11.50 - WPSL WSL PARTICULARS Transactions during the year Loans.000 75 .55) - 5.95 (0.23 (0.42) (4. Discount and Rebate - - Remuneration and Commission - - Dividend Received - - 2.50 (12.51) 1.80 - - - - - 13.47 (12.67 - 22 (ii) Following are the transactions with related parties mentioned in (i) above and the year-end balances WTL WWL WML KTL WLL WRPL VTL GVPL 24.82) 47.57) 5. 2009 Rs.39 (26.83) 4.40) 23.42 (3.71 (9.00) 1.63 (4.20 1. Advances and Deposits received 233.42) 2.50 2.42) (2.00) 16. * Investment made during the year is out of conversion of loans given.53 (1.54) - (20.36 Purchase of Fixed Assets / Capital Goods Capital Advance 3.44 (0.42) (4.04 - (9.01 2.00) - - - (15.40) - (250.

WELSPUN INDIA LIMITED
Annual Report 2008 -09

SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009
23. Leases A. Where the Company is a lessor: Operating Lease The Company has given certain buildings and plant and machinery on operating lease, details of which are as under:
Particulars Buildings Gross Block Accumulated Depreciation Depreciation recognised in the Profit and Loss Account for the year Plant and Machinery Gross Block Accumulated Depreciation Depreciation recognised in the Profit and Loss Account for the year
* includes depreciation of Rs. 3.40 million on Plant and Machinery which was given on lease upto July 2007.

March 31, 2009 10.25 1.82 0.17

Rs. Million March 31, 2008

10.25 1.65 0.17

42.49 30.63 3.73

42.49 26.90 6.33*

B. Where the Company is a lessee: Operating Lease The Company has taken various residential, office premises, godowns, equipment and vehicles under operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. The initial tenure of lease is generally for eleven months to sixty months. The aggregate rental expenses of all the operating leases for the year are Rs. 88.97 million (Previous Year: Rs. 59.81 million). 24. Earnings per Share
Particulars Profit after Tax and before Extraordinary Item (A) Less : Extraordinary Item Profit after Tax and after Extraordinary Item (B) Number of Equity Shares - Weighted Number of equity shares outstanding during the year ( C) Basic and Diluted earnings per share before Extra Ordinary Item (A/C) (Rs.) Basic and Diluted earnings per share after Extra Ordinary Item (B/C) (Rs.) Nominal value of an equity share (Rs.) March 31, 2009 316.36 7.33 309.03

Rs. Million

March 31, 2008 262.66 262.66

73,089,519 4.33 4.23 10

73,089,519 3.59 3.59 10

25. As required by the Clause 32 of the listing agreement, the following disclosure is made:
Balance as on March 31, 2009 Particulars Maximum amount outstanding during the year ended March 31, 2009 Balance as on March 31, 2008
Rs. Million Maximum amount outstanding during the year ended March 31, 2008

i.

Loans and advances in the nature of loans to subsidiary (excluding interest accrued), - Welspun USA Inc. - Welspun Holdings Private Limited, Cyprus - Welspun AG - Besa Developers and Infrastructure Private Limited

320.80 348.60 150.34 31.50

590.30 442.93 692.85 31.50

65.44 393.92 155.97 31.50

131.21 605.16 155.97 31.50

76

SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2009 AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009
Balance as on March 31, 2009 Particulars Maximum amount outstanding during the year ended March 31, 2009 Balance as on March 31, 2008 Maximum amount outstanding during the year ended March 31, 2008

ii. Loans and advances in the nature of loans to associates - Welspun Retail Limited iii. Loans and advances in the nature of loans where there is no repayment schedule, or interest below rate specified as per Section 372A of the Companies Act, 1956. - Welspun USA Inc. - Welspun Holdings Private Limited, Cyprus - Welspun AG - Besa Developers and Infrastructure Private Limited

42.68

42.68

-

-

-

-

65.44 393.92 155.97 31.50

131.21 605.16 155.97 31.50

iv. Loans and advances in the nature of loans to firms/ companies in which directors are interested v. Investments by the Loanee in the shares of the Company as on March 31, 2009

-

-

-

-

-

-

-

-

26. The Income Tax Department had disallowed certain expenditure claimed by the Company in its income tax returns for the Assessment Years 1998-1999 and 2001-2002. During the year, the Income Tax Appellate Tribunal decided the matter in the Company's favour, consequent to which, the Company has recognised deferred tax asset aggregating Rs. 75.23 million on unabsorbed depreciation pertaining to the aforesaid assessment years. 27. Due to floods at the Company's manufacturing unit at Anjar in the year 2008, certain inventory, machinery and buildings were damaged. Loss arising on account of these floods (net of insurance claim received) aggregating Rs. 11.10 million has been included under 'Extraordinary item' in the Profit and Loss Account. The extraordinary item disclosed is net of tax impact of Rs. 3.77 million. 28. Refer Annexure for additional information to Part IV of Schedule VI to the Act. 29. Prior year comparatives have been reclassified to conform with the current year's presentation, wherever applicable.
Signatures to Schedules 1 to 19 forming part of the Accounts For and on behalf of the Board of Directors Neeraj Gupta Partner Membership No. F055158 For and on behalf of Price Waterhouse & Co. Chartered Accountants Mumbai, June 30, 2009 B. K. Goenka Chairman & Managing Director R. R. Mandawewala Joint Managing Director

M. L. Mittal Executive Director (Finance) Mumbai, June 30, 2009

D. K. Patil Company Secretary
77

WELSPUN INDIA LIMITED
Annual Report 2008 -09

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2009
For the Year Ended March 31, 2009 Rs. million 264.70 952.98 (49.93) 15.08 (3.60) (2.00) (221.35) (16.56) (1.43) 1.24 4.25 (11.10) (138.58) 1,059.69 1,588.69 1,853.39 For the Year Ended March 31, 2008 Rs. million 414.52 847.19 (20.84) 6.91 (3.52) (1.23) (4.97) (25.83) (0.53) (5.83) 18.69 5.57 43.23 (83.15) 760.00 1,535.69 1,950.21

Rs. million A. CASH FLOW FROM OPERATING ACTIVITIES Net Profit Before Tax Adjustments for : Depreciation Unrealised Foreign Exchange Differences Loss on Sale of Fixed Assets Gain on Premature Redemption of Debentures Profit on Redemption/ Sale of Units of Mutual Funds Profit on Sale of Bonds Profit on sale of Shares Dividend Liabilities Written Back as no Longer Required Provision for Doubtful Debts/ Advances Written Back Provision for Doubtful debts/ Advances Debts/ Advances Written off Excise Benefits Receivable Written Off Extraordinary Item Provision for diminution in value of Investments Interest Income and Cash Discount Received Interest and Other Expenses Operating Profit Before Working Capital Changes Adjustments for changes in working capital : Trade and Other Receivables Inventories Current Liabilities and Provisions Cash Flow Generated from Operations Income Tax and Fringe Benefit Tax paid Net Cash Flow from Operating Activities B. CASH FLOW USED IN INVESTING ACTIVITIES Purchase of Fixed Assets (Including Capital Work-in-progress) Sale of Fixed Assets Capital Subsidy Purchase of Investment in Subsidiaries (net of sales) Sale of Other Investments (net of purchases) Dividend Received Interest Received Net Cash Flow used in Investing Activities CASH FLOW FROM FINANCING ACTIVITIES Redemption of Preference Shares Redemption of Debentures Proceeds from Borrowings - Long Term Repayment of Borrowings - Long Term Proceeds/ Repayments of Other Borrowings Interest and Other Finance Expenses Paid Net Cash Flow from Financing Activities (A+B+C) Cash and Cash Equivalents at the beginning of the year Cash and Cash Equivalents at the end of the year Net Decrease in Cash and Cash Equivalents

(1,395.52) 796.29 68.63 (530.60) 1,322.79 (45.46) 1,277.33 (1,739.59) 17.46 39.27 (282.23) 367.22 16.56 14.96 (1,566.35)

(653.30) (535.48) 526.88 (661.90) 1,288.31 (88.41) 1,199.90 (3,160.72) 4.69 14.79 (4.15) 771.03 25.83 9.35 (2,339.18)

C.

1,770.73 (1,074.23) 465.69 (905.55) 256.64 (32.38) 920.51 888.13 (32.38)

(102.26) (168.08) 2,012.08 (788.12) 432.82 (966.53) 419.91 (719.37) 1,639.88 920.51 (719.37)

(0.00) NOTES : 0.00 1. The Cash Flow Statement has been prepared under the "Indirect method" as set out in Accounting Standard - 3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India. 2. Previous year's comparatives have been reclassified to conform with the current year's presentation, wherever applicable. This is the Cash Flow Statement referred to in out report of even date. For and on behalf of the Board of Directors Neeraj Gupta B. K. Goenka R. R. Mandawewala Partner Joint Managing Director Chairman and Managing Director Membership No. F055158 For and on behalf of Price Waterhouse & Co. Chartered Accountants M. L. Mittal Director (Finance) Mumbai, June 30, 2009 D. K. Patil Company Secretary

78

Mumbai, June 30, 2009

2009 R. K.Additional Information pursuant to Part IV of Schedule VI to the Act. (ITC Code) 6 6 5 3 3 2 0 0 0 4 9 4 1 5 1 2 9 1 5 1 0 0 0 0 C C C O O O T T T T T T O O O Product Description N N N T B Y E E A R D R N R Y S H T E O E W E T L On behalf of the Board of Directors B. Thousands) Total Liabilities 7 7 0 3 Paid-up Capital 0 9 0 0 Total Assets 7 0 3 2 Sources of Funds 5 0 9 2 5 0 9 7 7 8 Equity Warrants N I L Secured Loans 9 0 9 0 4 8 Reserves and Surplus 2 1 3 7 2 Unsecured Loans 0 0 3 0 1 6 0 8 5 0 Deferred Tax Liability (Net) 1 0 3 9 8 3 0 Application of Funds 1 5 7 Net Fixed Assets 7 3 8 1 0 Investments 7 1 0 Incidental Expenditure Pending Capitalisation/ Allocation 5 4 0 5 2 Net Current Assets 5 6 6 5 0 1 0 4 6 6 3 Accumulated Losses N I L IV Performance of Company (Amount in Rs. 2 3 (Please tick appropriate box + for Positive. Mittal Executive Director (Finance) Mumbai. June 30. Thousands) Turnover (including Other Income) 1 3 6 1 6 0 0 0 + 2 Profit/Loss Before Tax 5 3 6 9 7 + - Miscellaneous Expenditure N I L 1 3 3 6 Total Expenditure 2 3 0 3 3 Profit/Loss after Tax 0 9 0 2 8 (Please tick appropriate box + for Positive. Goenka Chairman & Managing Director M. . .) 4 .for Negative) Earnings Per Share after extraordinary items (Basic and Diluted) (In Rs. U Balance Sheet Date II 9 9 9 9 9 M H 1 9 8 5 2 P T C 9 0 3 5 0 9 2 State Code 0 4 3 1 Date 0 3 Month 0 0 Year Capital Raised During the Year (Amount in Rs. R. Patil Company Secretary 79 . L. Thousands) Public Issue N I L Bonus Issue N I L Rights Issue N I L Private Placement N I L III Position of Mobilisation and Deployment of Funds (Amount in Rs. K. Mandawewala Joint Managing Director D.for Negative) + - Dividend Rate % - V Generic Names of Three Principal Products / Services of Company (as per monetary terms) Item Code No. Balance Sheet Abstract and Company's General Business Profile ANNEXURE I Registration Details Registration No.

775.A. 2009 M. each each each each 10 each 50.A.A.A. Home Ltd.A.81 EUROS 9.6 6) N. E R Kingsley Christy 2004 Flyspark Ltd.1 (479.A. N.50 GBP 193.600 10. Besa Developers and Infrastructur e Private Limited SOREMA Welspun Distribution & Logistics.071.965) N.000 EUROS 31.564. N. (151.A. N. N. Net aggregate amount of profits / (losses) for previous financial years of the subsidiary as far as it concerns the members of Welspun India Limited 5 (i) Dealt with in the accounts of Welspun India Limited USD 11847 GBP (158131) GBP (985826) (ii) Not dealt with in the accounts of Welspun India Limited N. N.A.100 ordinary shares of GBP 0.06) N. For and on behalf of the Board of Directors R. 10 Euro 10 each shares of Rs.A. N. Portugal SOREMA Welspun Espana S.A. Spain SOREMA Welspun Benelux B. N.001 Equity Shares of GBP 1 each fully paid up (ii) Extent of holding 100% 100% 100% Net Aggregate amount of profits/ (losses) of subsidiary for the above financial year so far as they concern Members of Welspun India Limited 4 (i) Dealt with in accounts of Welspun India Limited USD (202. 5.A. Textiles Ltd.364) GBP 763.A.A.127.A. N. N. NOT APPLICABLE AS THESE COMPANIES BECAME SUBSIDIARIES OF WELSPUN INDIA LIMITED DURING THE YEAR 2008-09 1 Name of the subsidiary company Welspun USA Welspun Welspun Inc.29 (351. N.01 each 400 ordinary shares of GBP 1 each 600 'A' ordinary shares of GBP 1 each 100% 100% 100% 100% 100% 100% 100% 100% 100% 76% 100% 76% 76% 76% 100% 100% GBP* (33..000 of CHF 1.820. R.000. N.STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT.A..A.A.000 equity shares of equity of Euro 10 of Euro 10 of Euro 10 shares of Rs. V. N. 2 Financial Year of the subsidiary ended on 31-Mar-09 31-Mar-09 31-Mar-09 Shares of the subsidiary Company held on the above date and extent of holding (i) Equity shares 1. N.000 GBP 424.. USD (88. N.A.000 common stock of USD 0.000 Equity Shares of GBP 1 each fully paid up Annual Report 2008 -09 WELSPUN INDIA LIMITED 3 4.A.A.000 3800 shares 3800 shares 1368 shares 500.A.000 1 ordinary 1 ordinary EURO ordinary share of GBP share of GBP 25. N.718. K. N.A. N. N. N. Mandawewala Joint Managing Director D. A.083 (ii) Not dealt with in the accounts of Welspun India Limited N.000 ordinary shares of GBP 1 each 2. N. Holdings Pvt.456.020. N.A.937.A. . N. S. N.500.A.603) GBP (422. L.A. GmbH Welspun AG Welspun Mexico SA de CV SOREMA Tapetes E Cortinas DE Banho. K. 10 each 40.000 GBP 200. Mittal Director (Finance) * Consolidated Figure for the Company and all it's subsidiaries is given. U. 1. N.A. RELATING TO SUBSIDIARY COMPANIES CHT Christy Christy UK Holdings Ltd.757. GBP* N.A.A. Patil Company Secretary B. 6. N.A. USD USD (1.212.68 N. N.02) 3) N.313. N. Holland Welspun Global Brands Limited Welspun Investments Limited 80 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 1. Christy (Textiles) Ltd.403.A.10 each.07 7) N.50 N.75.A. Europe Ltd. Goenka Chairman and Managing Director Place : Mumbai Date : 30th June. GBP* 231.098. N.A. Home Ltd.58) N.59 shares of 1 each 1 each GBP 1 each 17000 shares 50.000 GBP 832. Textiles UK Ltd.000 equity shares of Rs.A. EUROS N.391.A.A. 1956. S.A.51. N. (14. N.A. N.5 39.000 Euro* 166.559.000 shares of 1 each paid up peso each per share 45.A.31.A. L.A.A.A.A. N.A. USD EUROS N. N.A.A.

These consolidated financial statements are the responsibility of the Company's Management. total revenues aggregating Rs. (b) in the case of the consolidated Profit and Loss Account. on a test basis. 5. is based solely on those management certified financial statements. hereinafter referred to as the “Group” (refer Note 1B(ii) on Schedule 19 to the attached consolidated financial statements) as at March 31. The financial statements of the other two aforesaid subsidiaries.AUDITORS' REPORT TO THE BOARD OF DIRECTORS OF WELSPUN INDIA LIMITED 1. On the basis of the information and explanations given to us and on consideration of the separate audit reports on individual audited financial statements of the Company. F055158 For and on behalf of Price Waterhouse & Co. An audit includes examining. whose financial statements include the Company's share of total assets aggregating Rs. 2009 81 . in so far as it relates to the amounts included in respect of the said subsidiaries. 31. 0.31 million for the year then ended. in our opinion. of the consolidated results of operations of the Group for the year ended on that date. 204. is based solely on the reports of the other auditors. We conducted our audit in accordance with the auditing standards generally accepted in India. An audit also includes assessing the accounting principles used and significant estimates made by Management. the attached consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India: (a) in the case of the consolidated Balance Sheet. its jointly controlled entities and associate company. its aforesaid subsidiaries. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. Accounting Standard 23 Accounting for Investments in Associates in Consolidated Financial Statements and Accounting Standard 27 . Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.Consolidated Financial Statements. total revenues aggregating Rs. and our opinion. 4. the jointly controlled entities and the associate company. whose financial statements include the Company's share of net loss aggregating Rs. as well as evaluating the overall financial statement presentation. 5.26 million as at the balance sheet date. The financial statements of five of the aforesaid seven subsidiaries. We believe that our audit provides a reasonable basis for our opinion.39 million and net cash outflows aggregating Rs. We have audited the attached consolidated Balance Sheet of Welspun India Limited (the “Company”) and its subsidiaries.41 million for the year then ended.Financial Reporting of Interest in Joint Ventures. 2009. the jointly controlled entities and the associate company have been audited by other auditors.591. which include the Company's share of total assets aggregating Rs.75 million as at the balance sheet date. which we have signed under reference to this report. all of which are considered in the attached consolidated financial statements. and (c) in the case of the consolidated Cash Flow Statement. Chartered Accountants 2. in so far as it relates to amounts included in respect of the subsidiary. issued by the Institute of Chartered Accountants of India. Neeraj Gupta Partner Membership No. June 30. Nil and net cash inflows aggregating Rs.510. of the state of affairs of the Group as at March 31. 3. jointly controlled entities and the associate company. and (ii) the associate company. the related consolidated Profit and Loss Account and the consolidated Cash Flow Statement for the year ended on that date annexed thereto. We report that the consolidated financial statements have been prepared by the Company's Management in accordance with the requirements of Accounting Standard 21 . and our opinion. of the consolidated cash flows of the Group for the year ended on that date. 1.52 million for the year then ended. and management certified financial statements in case of two subsidiaries. 2009. Mumbai. We did not audit the financial statements of (i) the jointly controlled entities and seven subsidiaries. 3. evidence supporting the amounts and disclosures in the financial statements. have been certified by its directors. whose reports have been furnished to us.

84 DEFERRED TAX LIABILITY (NET) 5 1.25 20.223.65 74.216.20 5.28 1.90 3.141. million As at March 31. Advances and Other Current Assets LESS : CURRENT LIABILITIES AND PROVISIONS Liabilities Provisions 6B 7 8 9 10 11 12 4.46 APPLICATION OF FUNDS FIXED ASSETS Gross Block Less : Depreciation Net Block Capital Work-in-progress 6A 21.434.405.00 6.90 4.298.085.827. Mandawewala Joint Managing Director M.186. million SCHEDULES SOURCES OF FUNDS SHAREHOLDERS' FUNDS Capital Reserves and Surplus 1 2 780.556.85 9.35 6.07 1.215.65 1.37 2.35 4.189.13 4.65 1.048.500.189.46 (0.223.42 16.33 17.48 15.00) NET CURRENT ASSETS NOTES TO ACCOUNTS 19 (0.79 17. June 30.19 55. Mittal Executive Director (Finance) Mumbai.98 40.95 24.58 3.281.912. L.00) (0. 2008 Rs.WELSPUN INDIA LIMITED Annual Report 2008 -09 CONSOLIDATED BALANCE SHEET AS AT MARCH 31. 2009 As at March 31.94 273. K. 2009 82 .664.744.71 529.384. Goenka Chairman & Managing Director R.351. LOANS AND ADVANCES Inventories Sundry Debtors Cash and Bank Balances Loans.934. Patil Company Secretary Mumbai.912.197.148.62 18. For and on behalf of the Board of Directors Neeraj Gupta Partner Membership No.87 2.666. R.95 3.10 194.30 780.00) The Schedules referred to herein form an integral part of the Consolidated Balance Sheet.34 5.95 1.05 303.00 2.599. 2009 D.557.58 1.327.27 17.35 3. Chartered Accountants B.146.404.33 16.659.846.046.28 314. K.70 24.440. This is the Consolidated Balance Sheet referred to in our report of the even date.716.51 23. June 30.813.89 Incidental Expenditure Pending Capitalisation/ Allocation INVESTMENTS CURRENT ASSETS. F055158 For and on behalf of Price Waterhouse & Co.228.65 23.98 65. 2009 Rs.64 8.92 997.16 19.01 Minority Interest LOAN FUNDS Secured Loans Unsecured Loans 3 4 18.64 2.

Fringe Benefit Tax PROFIT/ (LOSS) AFTER TAXATION FROM ORDINARY ACTIVITIES AND FROM CONTINUING OPERATIONS Extraordinary Item (net of deferred tax credit of Rs.97 (43.58 2.26 53.86 2.16 (53. 2009 Mumbai.374.99) 2.85 (62.57 17.83 609.Current Tax .374.79) (1.Current Tax .24 0.375.26 2. 2009 83 .034. Executive Director (Finance) Company Secretary Chartered Accountants Mumbai.19 31.850.16 Loss Per Share (Rs. Mandawewala Neeraj Gupta Chairman & Managing Director Joint Managing Director Partner Membership No. K. Patil M.000.54 11.24 194.88 45.52) (544. R.93 377.90) 16.) . million Rs.35 9.54 10.57) 1.04 146.75 (146.495. K. Administration and Other Expenses Finance Expenses (Net) Depreciation PROFIT/ (LOSS) BEFORE EXCEPTIONAL ITEMS AND TAXATION Exceptional Items (Refer Note 20 on Schedule 19) PROFIT/ (LOSS) BEFORE TAXATION FROM ORDINARY ACTIVITIES PROFIT/ (LOSS) BEFORE TAXATION FROM ORDINARY ACTIVITIES AND FROM CONTINUING OPERATIONS Provision For Taxation .26 16.51 148.339. 2009 March 31.31) 27.47 0.15 16.375.991.698.71 1.34 17.31 (14.26 609.95 (27.61 16.94 2.16 30.84 6.95) (14.64) (204.Basic and Diluted before Extraordinary Item 10.33 43.74) (38.41) 6.45) 2.21 297. For and on behalf of the Board of Directors B.95 1.56 1.74 16.71 341.02 NOTES TO ACCOUNTS 19 The Schedules referred to herein form an integral part of the Consolidated Profit and Loss Account.90) (715.55) 1.83 1.783. Mittal Price Waterhouse & Co.245. 2008 Rs.37 0. June 30. 2009 Year ended Year ended SCHEDULES March 31.Fringe Benefit Tax PROFIT/ (LOSS) AFTER TAXATION FROM ORDINARY ACTIVITIES AND FROM DISCONTINUING OPERATIONS AND BEFORE SHARE OF LOSS OF ASSOCIATE AND MINORITY INTEREST Share of Associate's Net Loss PROFIT/ (LOSS) AFTER TAXATION FROM ORDINARY ACTIVITIES AND FROM DISCONTINUING OPERATIONS AND BEFORE SHARE OF LOSS OF MINORITY INTEREST Minority's Share of Profit/ (Loss) in Certain Subsidiary Companies PROFIT/ (LOSS) AFTER TAXATION FROM ORDINARY ACTIVITIES AND FROM DISCONTINUING OPERATIONS NET PROFIT/ (LOSS) Profit and Loss Account Balance Brought Forward PROFIT AVAILABLE FOR APPROPRIATION APPROPRIATIONS Transfer to Capital Redemption Reserve Transfer from Debenture Redemption Reserve Profit and Loss Account Balance Carried to Balance Sheet (B) (A) + (B) 13 14 15 16 17 18 17.086.33 (50.(Refer Note 26 on Schedule 19) .26) (98. L.Less : Minimum Alternative Tax Credit Availed .09 (1.20 254. 3.14 1.21 (525.52) (643.30 4.05) (765. F055158 For and on behalf of D.31) (729.50) 0.Basic and Diluted after Extraordinary Item 10.10) 4.328.376.Deferred Tax .77 million) (Refer Note 25 on Schedule 19) PROFIT/ (LOSS) AFTER TAXATION FROM CONTINUING OPERATIONS (A) PROFIT/ (LOSS) BEFORE TAXATION FROM ORDINARY ACTIVITIES AND FROM DISCONTINUING OPERATIONS AND BEFORE SHARE OF LOSS OF ASSOCIATE AND MINORITY INTEREST Provision For Taxation .841.28 (604.94 951. June 30.00 (29.39 (44.212. million INCOME Sales Less : Excise Duty Other Income EXPENDITURE Materials and Manufacturing Expenses Employees' Remuneration and Benefits Selling.02 .176.89 0.81 781.Deferred Tax .89 142.26 609.463.544. Goenka R.36) 31.19) 7.67) 1. This is the Consolidated Profit and Loss Account referred to in our report of the even date.CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.

38 428.00 110.81 million)] SCHEDULE 3 : SECURED LOANS Term Loans (Refer Notes 11(a) & 11(b) on Schedule 19) .186. 20. 2009 March 31. million Rs.11 398.00 110.03 500.90 2.08 0. * Less than Rs.710.63) (140.96 303.63 18.57 514.638.00 780.00 780.18 0.305.46 million (March 31.20 13.000 0% Redeemable Cumulative Preference Shares of Rs. a jointly controlled entity.100. 10 each 1.In Foreign Currency Working Capital Loans from Banks (Refer Notes 11(c) & 11(d) on Schedule 19) Hire Purchase Finance Loans from Banks Share in Joint Venture SCHEDULE 4 : UNSECURED LOANS Interest Free Sales Tax Loan (Repayable in six annual installments for each disbursement till October 7.From Banks .49) 609.44 3.62 1.049.79 84 .67 29.38 48.38 29. 2010) (Repayable within one year Rs.62 12.76 3.00 1.90 * 780.00 1.79 5.00 235.08 276. 2008 Rs.37 72.02 1.Arising on Dilution in Shareholding of Associate Company (Refer Note 7 on Schedule 19) . 2009 As at As at March 31.54 (332.40 288.519 Equity Shares of Rs.00 29.83 4.39 28.71 0. 10 each Issued. March 31.67 48.90 50. 2008 : Rs.000 Equity Shares of Rs.00 428. 0.Loss of Rs.35 2.59 529. 0.153.533.00 730.07 0. 100 each 23.160. 27.160.11 2.000 Redeemable Cumulative Preference Shares of Rs.603.90 815. 2008 : Profit of Rs. million SCHEDULE 1 : CAPITAL Authorised 81.374.90 50.01 million.Arising on Acquisition of Interest in Joint Venture Hedging Reserve Foreign Exchange Translation Reserve Profit and Loss Account [includes Share in Joint Ventures .048.00 16.659.Forfeiture of Equity Warrants Capital Reserve . 10 each fully paid up 500.38 30.638. 1. Subscribed and Paid Up 73.00 730.500.256.500.000 Redeemable Cumulative Preference Shares of Rs.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31.08 408.08 10.638.90 * 780.37 million) Short Term Loans from Banks Share in Joint Venture 815.18 380.92 1.910.48 17.26 2.Arising on Dilution of Interest in Joint Venture .05 0.069.43 14.11 428.00 235.500.In Rupee .72 17.26 3.089. 100 each fully paid up (Refer Note 12 on Schedule 19) Less : Adjustment for 50 Equity Shares representing 50% of 100 equity shares of Welspun India Limited held by Welspun Zucchi Textiles Limited.000 SCHEDULE 2 : RESERVES AND SURPLUS Securities Premium Account As per last Balance Sheet Less : Premium on Redemption of Preference Shares Capital Redemption Reserve As per last Balance Sheet Add : Transferred from Profit and Loss Account Debenture Redemption Reserve As per last Balance Sheet Less : Transferred to Profit and Loss Account Capital Reserve .

36 142.60 million) is acquired under finance lease.44 16.98 72.48 3.22 36.85 3.41 23.085.Deferred Rent .28 (1.37 11.327.926.666. 2) Net book value of Vehicles of Rs.31 192.Provision for Employee Benefits . (ii).87 21.29 74.14 64.827.35 21.40 33. 21.75 4. 2008 March 31.65 2. 2008 261.556.28 498.25 2.70 38.53 331.27 17.08 5. 2009 March 31.62 12.39 1.Provision for Diminution in Value of Investments .14 131.81 885.18 150.15 49.34 35.39 253.56 51. 2008 : Rs. 2008 March 31.45 278.03 92.07 37.28 218.23 14.545.Provision for Doubtful Debts/ Advances .98 Notes: 1) Net book value of Plant and Machinery of Rs.975.71 Rs.03 0.73 30.53 1.74 0.47 37.54 million (March 31.SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31.115.599. 2009 March 31. 2008 : Rs. 2008 : Rs. 2008 : Rs. 215.53 0.88 1.94 5.956. million SCHEDULE 5 : DEFERRED TAX LIABILITY (NET) (Refer Note 1C(vii)(b) on Schedule 19) Deferred Tax Liability arising on account of Timing differences in : .68 19.33 16.48 57.13 1.42 4.549. million DEPRECIATION NET BLOCK Accumulated upto Accumulated upto As at As at March 31. 2008 Rs.56 70.23 4.74 69.578.21 5. million Rs. 3) Capital Work-in-progress includes adjustment for capital subsidy of Rs.70 1.48 16.21 31.00 259.49 157.51 SCHEDULE 6A : FIXED ASSETS (Refer Notes 1(C)(i).25 50.71) 1.17 1.113.664.813.65 Capital Work-in-progress [including Capital Advances Rs. 15.65 2. 28.78 203. 5.Provision for Others Share in Joint Venture 1.66 8.34 19.56 66.59 84. 2009 72.58 88. 14 and 19 on Schedule 19) PARTICULARS GROSS BLOCK As at As at March 31.66 0.69 99.26 15.985.327.046.34 883.47 16.543.54 292.69 20.14 16. Nil) granted under the Technology Upgradation Fund (TUF) Scheme.302.Depreciation Deferred Tax Asset arising on account of Timing differences in: .99 234.330.68 3.23 836.75 80.02 11.21 12.426.51 102.97 million (March 31.25 2.95 95.Provision for Unpaid Statutory Dues .57 997. 85 .16 Freehold Land Buildings Leasehold Improvements Plant and Machinery (Refer Note 1 below) Vehicles (Refer Note 2 below) Furniture and Fixtures Office Equipment Computer Hardware Computer Software Goodwill on Consolidation of Subsidiaries and Jointly controlled Entities Goodwill on Amalgamation Development Expenditure 933.556.92 14.56 52.406. (xi).15 19.30 390.Unabsorbed Depreciation and Net Operating Losses .65 TOTAL Share in Joint Venture TOTAL Previous Year 19.653.49 1.86 3.00 878.228.146.84 27.98 million)] 958. 8.99 4. 2009 March 31.53 137.18 million (March 31.06 25.41 34.13 4. 5. Nil) is acquired under finance lease.78 14.57 1.13 15. (iii).99 198.32 million)] Share in Joint Venture [including Capital Advances Rs.30 542.626.22 961.167. 86.57 75. 2009 As at As at March 31.76 55.11 38.24 million (Previous year : Rs.283.77 million (March 31. (iv).463.277.259.42 4.19 1.73 99.

17 5.20 118. 2009 Rs.Gross (Tax Deducted at Source : Rs.44 191.29 30.47 8.20 0. 3.18 0.14 9.52 0. 2009 SCHEDULE 6B : INCIDENTAL EXPENDITURE PENDING CAPITALISATION/ ALLOCATION (Refer Notes 1C(ii) on Schedule 19) As at March 31.23 55.24 Opening Balance Add : Raw Material Consumption during Trial Run Stores and Spares Consumed Dyes and Chemicals Consumed Packing Material Consumed Job Work Expenses Power and Fuel Freight.94 (B) Less : Sales during Trial Run Sale of Scrap Export Benefits Interest on Deposit Accounts . Forwarding and Coolie Charges Repairs and Maintenance .90 13.91 46.00 8. million (A) 65.28 3.01 0.03 0.05 1.65 0.84 3.79 1.14 0.49 0.19 5. 1.10 87.13 0.34 1.16 65.58 8.45 4.07 4.(C) Less : Transferred to : Plant and Machinery Buildings Incidental Expenditure Pending Capitalisation/ Allocation Share in Joint Venture Total Incidental Expenditure Pending Capitalisation/ Allocation 86 .03 0. million 41.86 199.01 1.02 1.21 62.43 0.06 million.99 6.09 72.02 320.66 2. 7.11 18.15 4.84 0.91 1. 2008 Rs.14 195.05 8.94 As at March 31.65 33.02 9.55 0.43 54.10 59.63 0.24 million) Interest on Bonds . Bonus and Allowances Contribution to Provident and Other Funds Staff and Labour Welfare Rent Rates and Taxes Printing and Stationery Travelling and Conveyance Legal and Professional Charges Insurance Communication Loss on Redemption/ Sale of Units of Mutual Funds (Net) Postage and Courier Vehicle Expenses Advertising and Sales Promotion Interest on Fixed Loans Interest on Working Capital Loans Discounting and Bank Charges Loan Processing Charges Miscellaneous 81.66 0.42 2.77 15.09 138.11 0.52 27.52 97.Gross (Tax Deducted at Source Rs.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31.78 3.25 26.83 4.21 million) Profit on Redemption/ Sales of Units of Mutual Funds Dividend Increase in Stocks During Trial Run (C) (A) + (B) .Others Salaries.83 0. Previous Year : Rs.48 3. Nil.48 2.00 113.40 4.65 0. Wages. Previous Year : Rs.79 168.

2008 : 23. 10 each fully paid up of Welspun Power and Steel Limited * .Daily Dividend Plan Nil (March 31.437.60 32.65 87 .099.65 45.114) LICMF Liquid Fund .77 95.25 2.500 Equity Shares of Rs.63 244.86 * 18.32 794.58 6.63 380.80 1.02 million) Add : Increase in carrying value arising on dilution in shareholding (Refer Note 7 on Schedule 19) Less : Company's Share of Loss as at the year end 100 Equity Shares of Rs.08 271.846.94 * 244.65 309. 2008 : 217) Zero Coupon Redeemable Deep Discount (2008 Series-II) Punjab Infrastructure Development Bonds 0.49 264.53 37.94 13.260.Dividend Plan Nil (March 31. 0. 10 each Nil (March 31.33 3. 2008 : 241.19 209. Valsad) Trade . 5 each fully paid up of Welspun Gujarat Stahl Rohren Limited Current (At Lower of Cost and Fair Value) Non Trade . 2008 Rs.133. Spares.34 5.000 Equity Shares of Rs.215.91 167.300) LICMF Floating Rate Fund .77 0.At Book Value Aggregate of Quoted Investments . 2008 : 4.24 0.58 314.36 3.89 211.60 56.Less than Rs. Dyes and Chemicals Share in Joint Venture 276.800.52 4.28 848.740.39 625.64 62. million Rs. 10 each fully paid up of Welspun Retail Limited Cost of acquisition (including goodwill of Rs.SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31. 2008 : 600.944.03 18. 10.000) Equity Shares of Rs. million SCHEDULE 7 : INVESTMENTS (Refer Note 1(C)(v) on Schedule 19) Non .Short Term Plan .At Book Value Aggregate of Quoted Investments . Unlisted) Investment In Mutual Funds Units of Rs. 2008 : 13. 10 each fully paid up of Welspun Syntex Limited Less : Provision for Permanent Diminution 4.05 0.490) Reliance Liquid Fund .26 61.16 Aggregate of Unquoted Investments .01 0.41 1.Long Term (At Cost) (Unquoted) In Others 9.39 273.Treasury Plan Retail Option Investment In Bonds Nil (March 31.Trade Investment in Government Securities National Saving Certificates (Lodged with District Magistrate.033.94 13.29 160.02 353.Daily Dividend Reinvestment Plan Nil (March 31. 2008 : 7.63 148.047. 2009 March 31.14 54.18 2.63 301.000 (March 31.(Unquoted.37 4.668) Principal Floating Rate Fund .34 5.Dividend Option Nil (March 31.357) DWS Installment Cash Plus Fund . 2009 As at As at March 31.01 244.78 Share in Joint Venture 4.40 1.12 273.000 (Quoted) 283.At Market Value SCHEDULE 8 : INVENTORIES (Refer Note 1(C)(vi) on Schedule 19) Raw Materials Work-in-Process Finished Goods and Traded Goods (Refer Note 23 on Schedule 19) Stores.313.686.06 1.

07 4.40 353.18 9.31 million (March 31.33 262. overdraft. million Rs.07 649.905.74 1.00 59.95 2.90 525.55 37.52 9. ADVANCES AND OTHER CURRENT ASSETS LOANS AND ADVANCES Unsecured .58 1.84 228.12 591.56 9.113.700.54 1.66 7.42 320.10 25.61 41.61 million) pledged with banks against term loans.97 228.82 71.97 1.404.92 1.266. letters of credit and bank guarantee facilities. 2009 SCHEDULE 9 : SUNDRY DEBTORS Unsecured Debts Outstanding for a period exceeding six months : .50 315.97 54.32 1.42 313.65 2.61 9. 2008 : Rs.71 2.65 1.141.37 1.with Others .15 242.97 74.204.90 1.26 7.178.69 617.57 1.298.11 7.93 46.99 38.In Current Accounts in Foreign Currency . million 4.197. 536.60 41.34 2.90 1.38 19.65 70.63 182.29 596.63 660.384.02 1.38 269.24 828.66 2.384.40 1.21 22.390.93 36.53 1.24 7.54 1. 446.192.94 3.16 1.56 1.58 50.16 55.45 34.39 8.Considered Good . Excise.66 15.107.77 79.45 35.557.36 40.384.38 2.148.00 3.48 17.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31.with Scheduled Banks .434.56 209.38 20.02 8.75 31.213.79 21.189.33 11.071.380.In Current Accounts .Considered Good .Considered Doubtful Less : Provision for Doubtful Debts Less : Provision for debtors not covered under Group Credit Insurance Arrangements Share in Joint Venture SCHEDULE 10 : CASH AND BANK BALANCES Cash on Hand Cheques on Hand Bank Balances .16 242.64 200.In Fixed Deposit Accounts [includes deposits aggregating Rs.914.Considered Good .85 313. Sales Tax and other Government Authorities Advance Tax and Tax Deducted at Source (Net of Provision for Tax) Minimum Alternative Tax Credit Entitlement Deposits OTHER CURRENT ASSETS Technology Upgradation Fund Credit Receivable Interest Receivable under Subvention Scheme Interest Accrued on Deposits Share in Joint Venture SCHEDULE 12 : CURRENT LIABILITIES AND PROVISIONS CURRENT LIABILITIES Acceptances Sundry Creditors Advance received from Customers Temporary Overdraft with Scheduled Banks Mark-to-Market Loss on Options/ Forward Contracts Interest Accrued but not Due Share in Joint Venture PROVISIONS Fringe Benefit Tax (Net of Advance Tax) Gratuity (Refer Note 1(C)(viii)(b) on Schedule 19) Leave Encashment (Refer Note 1(C)(viii)(c) on Schedule 19) Provision for Closure Costs (Refer Note 20 on Schedule 19) Share in Joint Venture 88 287.01 Share in Joint Venture SCHEDULE 11 : LOANS.22 10.89 1.35 3.39 10.189.42 88.01 2.64 651.01 621.Considered Doubtful Less : Provision for Doubtful Advances Balances with Customs.05 180.39 700.37 2.35 54. 2008 Rs.35 .31 744.87 248.Considered Doubtful Other Debts : .06 1.61 51.] .03 21. 2009 March 31.Joint Deposit Account (Escrow) Less : Held in Trust As at As at March 31.98 1.02 16.81 1.216.63 651.33 5.

000.33 3. Work-in-Process.15 371.97 79.53 4.08 693.28 3.Factory Building Share in Joint Venture 3.96 7.325.25 0.67 4.493.76 44. Finished Goods and Traded Goods Add : Adjustment on acquisition of Subsidiaries Add : Purchases of Raw Material and Traded Goods Less : Closing Stock of Raw Material.00 1.261.17) 22.96 3.46 118.67 million) Dividend Insurance Claim Profit on Redemption/ Sale of Units in Mutual Funds Profit on Sale of Shares Profit on Sale of Bonds Profit on Sale of Fixed Assets Liabilities Written Back as no Longer Required Provision for Doubtful Advances Written Back Provision for Doubtful Debts Written Back Profit on Cancellation of Forward Contracts Exchange Loss (Net) Job Charges Received Excise and Sales Tax Benefits Royalty Income Miscellaneous Share in Joint Venture 15.94 2.045. Finished Goods and Traded Goods Manufacturing Expenses Stores and Spares Consumed Dyes and Chemicals Consumed Contract Labour Charges Job Work Expenses Power and Fuel Packing Charges Repairs and Maintenance: . 2009 March 31.27 17.25 526.95 92.85 16.59 10.61 SCHEDULE 15 : MATERIALS AND MANUFACTURING EXPENSES Materials Consumed (Refer Note 23 on Schedule 19) Opening Stock of Raw Material.96 114. 2.83 3.90 million.35 7.838.89 0.30 7.747. 1.065.23 36.74 7.87 10.90 635.53 8. Work-in-Process.56 0.291. 2008 Rs.057. 2009 Year ended Year ended March 31.043.783.077.71 631.96 6.96 660.35 2.86 35.83 17.52) 25.95 1.19 11.38 114.421.939.267.59 212.307. million Rs.37 1.11 25.52 10.909.27 377.49 1.69 613.387.29 1.08 3.80 11.34 6.13 (169.92 (2.32 16.34 15.816.45 249.24 4.60 221.421.87 566.05 1.869.38 6.84 20.57 237.14 89 . Previous Year : Rs.37 241.43 3.91 15.79 2.13 16.18 25.Plant and Machinery .SCHEDULES FORMING PART OF THE CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.421.495.43 21.32 3.339.233.34 127.55 9.73 1.55 254. million SCHEDULE 13 : SALES Sales Export Benefits Share in Joint Venture SCHEDULE 14 : OTHER INCOME Rent (Tax Deducted at Source Rs.87 251.928.

73 5.46 10.75 1.24 0.60 122.As Tax Auditors .013.26 282.54 6.02 187.90 11.00 40. 534.07 62.70 71. Previous Year : Rs.86 17.72 15.21 74.13 119.23 116.74 69.44 0.328.91 11.32 40.33 million) Interest on Debentures Interest on Working Capital Loans (net of interest subvention of Rs.25 4.25 166. 26.538.94 401.56 451.94 0.43 52. Previous Year : Rs.321.61 29.196.69 374.24 2. Wages.683.As Auditors . 2009 Year ended Year ended March 31.27 2. 0. 38.74 2.791.71 1. Nil.59 million) Interest on Bonds . Previous Year : Rs.56 28.09 78.95 20.64 million) Interest to Others Discounting and Bank Charges Lease Rentals Less : Interest on Fixed Deposits .83 million.18 83. million SCHEDULE 16 : EMPLOYEES' REMUNERATION AND BENEFITS Salaries.28 15.28 5.71 112.61 11. Previous Year : Rs. Discounts and Rebates Brokerage and Commission Freight.21 824.25 287.87 20.62 20.05 255.129.176.08 1.165.Certification and Other Matters .698.Gross (Tax Deducted at Source Rs.54 767.00 6. 2008 Rs.33 20.03 0.59 43.Gross (Tax Deducted at Source Rs. 412.44 million) Interest on Others .01 million.26 15.11 26. Previous Year : Rs.11 136.81 1.69 47. 2009 March 31. 1.04 38.30 2.034.212.26 2.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES FORMING PART OF THE CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.92 14.75 21.Gross (Tax Deducted at Source Rs.81 46.93 million.22 568.22 1.77 2.58 90 .02 million) Cash Discount received Share in Joint Venture 660.97 0. 0.32 1.In other capacity .23 31. 0.46 108.88 73.40 4.06 1.51 14. 4.53 128.12 10. million Rs.Out of Pocket Expenses Miscellaneous Share in Joint Venture 235.75 74.18 0.62 21.01 2.71 169. ADMINISTRATION AND OTHER EXPENSES Claims.50 45.22 0.69 0.95 SCHEDULE 18 : FINANCE EXPENSES (NET) Interest on Fixed Loans (net of interest subsidy of Rs.47 million.31 2.45 2.17 45.13 5. Forwarding and Coolie Charges Repairs and Maintenance .91 3.29 13. Allowances and Other Benefits (Refer Note 15 on Schedule 19) Contribution to Provident and Other Funds Managerial Remuneration Staff and Labour Welfare Share in Joint Venture 1.26 SCHEDULE 17 : SELLING.Others Directors' Sitting Fees Rent Rates and Taxes Printing and Stationery Travelling and Conveyance Legal and Professional Charges Insurance Communication Postage and Courier Loss on Sale/ Discarding of Fixed Assets (Net) Provision for Doubtful Debts Provision for Doubtful Advances Debts/ Advances Written off Design Development and Testing Expenses Excise Benefits Receivable Written Off Royalty Advertising and Sales Promotion Donations Auditors' Remuneration .43 781.17 58.51 7.20 258.48 83.53 415.

in the same manner as the Company's separate financial statements. (b) The difference between the cost of investment in the subsidiaries over the Company's portion of equity of the subsidiary is recognised in the financial statements as Goodwill or Capital Reserve. The consolidated statement of profit and loss reflects the investor's share of the results of operations of the investee. using proportionate consolidation method whereby the Company's share of each of the assets. The consolidated financial statements have been prepared on the following basis: (a) The financial statements of the Company and its Subsidiary Companies have been combined on a line-by-line basis by adding together the book values of like items of assets. On occasion. Basis of Accounting The consolidated financial statements are prepared under historical cost convention in accordance with generally accepted accounting principles applicable in India and the Accounting Standards issued by the Institute of Chartered Accountants of India. (c) Minority Interest in the net assets of consolidated subsidiaries consist of : . an associate company accounted for by the equity method may issue its shares to third parties as either a public offering or private placement at per share amounts in excess of or less than Parent Company's average per share carrying value. liabilities. (f) The consolidated financial statements have been prepared using uniform accounting policies for like transactions and other events in similar circumstances and are prepared to the extent possible. 2009 SCHEDULE 19 : NOTES TO ACCOUNTS 1) Significant Accounting Policies A. 91 .SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31. income and expenses. intra-group transactions and resulting unrealised profits or losses on intragroup transactions. its Subsidiary Companies. after fully eliminating intra-group balances. Principles of Consolidation (i) The consolidated financial statements relate to Welspun India Limited (the “Company”). (d) In the consolidated financial statements. the Company has reported its interest in the Joint Venture Companies. liabilities. the resulting gains/ losses arising from the dilution of interest are recorded as Capital Reserve/ Goodwill. With respect to such transactions. income and expenses of the jointly controlled entities is reported as separate line items. The carrying amount of the investment is adjusted thereafter for the post acquisition change in the investor's share of net assets of the investee. identifying any goodwill/ capital reserve arising at the time of acquisition. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. Joint Venture Companies and Associate Company. after eliminating proportionate unrealised profits or losses attributable to the interest of the Company. (e) Investments in Associates have been accounted for under AS-23 using equity method whereby the investment is initially recorded at cost. B.the minorities' share of movements in equity since the date the parent subsidiary relationship comes into existence.the amount of equity attributable to minorities at the date on which investment in a subsidiary is made and .

92 . preoperative expenses (including trial run) and borrowing costs incurred during pre-operational period.f. 2009) Besa Developers and Infrastructure Private Limited (BESA) Welspun Global Brands Limited (WGBL) (w.00 100. July 24. 2008) SOREMA Welspun Espana S. Joint Venture Companies and Associate Company considered in the consolidated financial statements are: Name of the Company Welspun USA Inc.00 100.f.. 2008 ) Welspun Zucchi Textiles Limited (WZTL) MEP Cotton Limited (MCL) Welspun Retail Limited Relationship Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Joint Venture Joint Venture Associate Country of Incorporation U.S.K.A.e. (ii) Incidental Expenditure Pending Capitalisation/ Allocation Incidental expenditure pending capitalisation/ allocation represents expenses incurred during setting-up of manufacturing facility including preoperative expenses for trial runs and borrowing cost incurred prior to the date of commencement of commercial production.00 26. 2009 100.f. September 17. Portugal (Held through SOREMA w. (iii) Borrowing Costs Borrowing costs directly attributable to the acquisition/ construction of fixed assets are apportioned to the cost of the fixed assets up to the date on which the asset is put to use/ commissioned.e. U. Cost of software includes license fees and implementation/ integration expenses. The cost includes cost of acquisition.00 76. U.00 100.00 100. U.K.00 100.00 100.94 41. February 6.K. S. Significant Accounting Policies (i) Fixed Assets Fixed Assets are stated at cost (net of cenvat credit.A.. S.V (WMEX) (Held through WAG) Welspun Home Textiles UK Limited (WHTUKL) (Held through WHPL) CHT Holdings Limited (CHTHL) (Held through WHTUKL) Christy Home Textiles Limited (CHTL) (Held through CHTHL) Christy UK Limited (CUKL) (Held through CHTL) Christy 2004 Limited (Held through CUKL) Flyspark Limited (Held through CHTL) Christy Europe GmbH (Held through CHTL) ER Kingsley (Textiles) Limited (Held through CHTL) SOREMA – Tapetes E Cortinas De Banho.00 100. construction.e. U.e. These expenses are net of sales during trial run and other income accrued prior to the commencement of commercial production.K. Germany U.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31. (WUSA) Welspun Holdings Private Limited.e. March 16.00 100. 2009 and through WHPL w.00 76. Cyprus (WHPL) Welspun AG (WAG) (Held directly till March 15. (SOREMA) (Held through WHPL) SOREMA Welspun Distribution & Logistics. Cyprus Switzerland Mexico U.00 100.00 100.00 100. A.K. 2008) SOREMA Welspun Benelux B. Holland (Held through SOREMA w.00 76..65 C. Spain (Held through SOREMA w. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. October 7. installation etc.00 100. U. V.e. 2009) Welspun Mexico S.00 50.00 100.f.f.00 76.f. 2009 (ii) The Subsidiary Companies.00 100. U. wherever applicable) less depreciation. 2008) Welspun Investments Limited (WINL) (w. Portugal Portugal Spain Holland India India India India India India % Voting power held as at March 31. de C.A. erection.K. L.K.. September 3.

(e) Goodwill arising on consolidation of a certain subsidiary sub-group is amortised on a straight line basis over its estimated useful economic life of 20 years. (vii) Accounting for Taxes on Income/ Minimum Alternate Tax Credit Income tax expense comprises current tax and deferred tax charge or credit. which is not in excess of the estimated useful lives of such improvements. Deferred tax assets arising in situations where there are brought forward losses and unabsorbed depreciation. based on convincing evidence. (b) Deferred Taxation Ÿ Deferred tax resulting from timing differences between book and tax profits is accounted for under the liability method. other direct costs and related overheads but exclude interest expense. are recognised only when there is a virtual certainty supported by convincing evidence that such assets will be realised. (f) Development Expenditure is amortised on a straight line basis over a period of 3 years. which give rise to future economic benefits in the form of adjustment of future tax liability.SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31. (vi) Inventories (a) Inventories are valued at lower of cost and net realisable value. (b) Investment in Associate is accounted for using the equity method (Refer note 1(B)(i)(e) above). at the current/ substantially enacted rate of tax to the extent that the timing differences are expected to crystallise. less the estimated costs of completion and estimated selling expenses. Current investments are carried at the lower of cost and fair value. Depreciation on additions/ deletions to fixed assets is calculated pro-rata from/ up to the date of such additions/ deletions except in case of a subsidiary company. Cost of work-in-process and finished goods comprises of raw material. for permanent diminution in value. where the depreciation is calculated at 50% of the rate arrived based on the useful lives of such assets in the year of additions/ deletions. Further. if any. (a) Current Taxation Current tax is determined as the amount of tax payable in respect of taxable income for the year. goodwill on consolidation is tested for impairment on an annual basis. (c) Minimum Alternate Tax Credit Minimum Alternate Tax (MAT) paid in accordance with tax laws. where the same is determined on first-in-first-out basis. Net realisable value is the estimate of the selling price in the ordinary course of the business. it is probable that the future economic benefits associated with it will flow to the Company and the assets can be measured reliably. Cost of traded goods is determined on weighted average basis. (d) Amortisation of leasehold improvements is computed on the straight line method over the term of the related lease including extensions which are reasonably expected to occur. (b) Computer software is amortised on the straight-line method over a period of three to five years. (c) Leasehold Land is amortised over the period of lease in case of a jointly controlled entities. 93 Ÿ . (b) Cost of raw materials and stores and spares is determined on weighted average basis except in case of jointly controlled entities. direct labour. (v) Investments (a) Long term investments are stated at cost less provision. is recognized as an asset only when. 2009 (iv) Depreciation and Amortisation (a) Depreciation on Fixed Assets is provided on the straight-line method so as to write off the cost of fixed assets over estimated useful lives of the assets. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.

The liability in respect of unutilised leave balances is provided based on an actuarial valuation carried out by an independent actuary as at the year end and charged to the Profit and Loss Account as per Accounting Standard 15 (revised 2005) Employee Benefits ('AS 15'). is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the Profit and Loss Account in the reporting period in which the exchange rates change. (c) In respect of forward contracts and currency options taken to hedge the risks associated with foreign currency fluctuations relating to firm commitments and highly probable forecast transactions. 2009 (viii)Employee Benefits (a) Defined Contribution Plans Contributions made on a defined contribution basis towards post employment benefits to Employee's Provident Fund. Employee's State Insurance Fund. jointly controlled entities and associate are entitled to leave as per the applicable leave policies of their employers. assets and liabilities are translated using the exchange rates in effect at the balance sheet date. it's integral foreign operations. costs and expenses using the average exchange rates prevailing during the reporting periods and for share capital. with effect from April 1. (d) In respect of non-integral operations. it's subsidiaries incorporated in India. (x) Revenue Recognition i.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31. Changes in the fair value of these hedging instruments that are designated and considered as effective hedges of highly probable forecasted transactions are recognised directly in shareholders' funds under 'Hedging Reserve Account' to be recognised in the Profit and Loss Account when the underlying transaction occurs. jointly controlled entities and associate is determined on the basis of an actuarial valuation by an independent actuary at the year end. Non-monetary foreign currency items are carried at cost. which is calculated using projected unit credit method as per Accounting Standard 15 (revised 2005) Employee Benefits ('AS 15'). 2008. (b) In respect of forward contracts. using the exchange rate at the date of transaction. Any profit or loss arising on cancellation or renewal of such a forward exchange contract is recognised as income or as expense for the period. The resultant translation exchange gain/ loss has been disclosed as Foreign Currency Translation Reserve under Reserves and Surplus. jointly controlled entities and associate. 94 . for revenue. (b) Defined Benefit Plans The liability for the defined benefit plan of Gratuity of the Company. foreign currency fluctuations relating to firm commitments and highly probable forecast transactions are fair valued at each reporting date. Monetary assets and liabilities as at the Balance Sheet date are translated at the rates of exchange prevailing at the date of the Balance Sheet. Employee's Pension Scheme and various other social security funds generally administered by the respective Government authorities in respect of which there is no further obligation beyond making the contribution are expensed in the year to which it pertains. Derivative Instruments and Hedge Accounting (a) In respect of the Company. the Company has early adopted the principles of AS 30 'Financial Instruments: Recognition and Measurement”. (ix) Foreign Currency Transactions. Sales revenue is recognised on transfer of significant risks and rewards of ownership of the goods to the buyer. (c) Employee Leave Entitlement The employees of the Company. other than forward contracts in respect of firm commitments and highly probable forecast transactions. foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions. Changes in the fair value of the hedging instruments that do not qualify for hedge accounting are recognised in the Profit and Loss Account as they arise. Accordingly. the premium or discount arising at the inception of forward exchange contract. Gains and losses arising on account of differences in foreign exchange rates on settlement/ translation of monetary assets and liabilities are recognised in the Profit and Loss Account. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.

bill of lading or other relevant documents. (xiv)Employees Stock Option Schemes Stock options granted to employees under Employee Stock Option Schemes are accounted as per the accounting treatment prescribed in the Guidance Note on Accounting for Employee Share-based Payments issued by the Institute of Chartered Accountants of India. Dividends are accounted for when the right to receive dividend is established. the carrying amount is reduced to its recoverable amount. the recoverable amount is reassessed and the asset is reflected at the recoverable amount.SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31. If any such indication exists. iii. Where there is a possible obligation or a present obligation but the likelihood of outflow of resources is remote. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists. (xi) Government Grants Government grants are accounted for when it is reasonably certain that ultimate collection will be made. 95 . Export benefits arising from Duty Entitlement Pass Book (DEPB) and Duty Drawback scheme are recognised on shipment. the recoverable amount of the asset is estimated. in the nature of interest subsidy under the Technology Upgradation Fund Scheme (TUFS) are adjusted against 'Interest on Fixed Loans'. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account. but probably will not. Revenue grants in the nature of interest subvention on 'Rupee Export Credit Loans' are adjusted against 'Interest on Working Capital Loans'. 2009 Domestic sales are recognised on dispatch to customers. in accordance with the terms and conditions for sales. If such recoverable amount of the asset or recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount. ii. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. (xv) Accounting Estimates The preparation of financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Realised exchange differences on export debtors are included in sales. Difference between the actual results and the estimates are recognised in the period in which the results are known/ materialised. (xii) Impairment of Assets At each balance sheet date an assessment is made as to whether there is any indication that an asset may be impaired. Export sales are recognised on the date of cargo receipts. no provision or disclosure as specified in Accounting Standard 29 “ Provisions. require an outflow of resources. issued by the Institute of Chartered Accountants of India is made. (xiii)Provisions and Contingent Liabilities A provision is recognised when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities and Contingent Assets”. Capital grants relating to specific assets are reduced from the gross value of the Fixed Assets. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may. Revenue grants.

47 . Central Excise & Customs. on furnace oil used for manufacturing of goods on job work during the period April 2002 to March 2008. Daman. The excise department had preferred an appeal with the Supreme Court against CESTAT. The Company has filed Revision Application with the Joint Secretary. Daman. based on the review and com ments made by the Committee of Chief Commissioners.45 As at March 31.27 0. The case has been settled in the Company’s favour during the current year. 2009 2) Contingent Liabilities not provided for: Description Excise.9 (b) of the Exim Policy 1997-2002. 1/95-CE 04-01-1995. Alleged improper abatement of service tax on payments made to Goods Transport Agency under Notification No. million 19. Department of Revenue. Ministry of Finance. 0. million 18. Alleged service tax credit based on improper documents.50 Alleged manufacture and clearance of texturised yarn without payment of excise duty and without entering into statutory records. Alleged improper cenvat credit availed and non payment of excise duty under Notification No. interest and penalty.58 - 69. 1966'. Alleged non-payment of cess on cotton consumed during the period April 2002 to February 2007 under 'The Produce Cess Act. As at March 31.60 - 1. During the year. The excise department had preferred a civil appeal with the Supreme Court against CESTAT. 32/04-ST dated 3-12-2004. Alleged improper re-credit of duty paid through PLA under Notification no. Daman demanding the amount of duty. Customs and Service Tax Alleged excess clearance of cotton yarn in Domestic Tariff Area over and above the limit specified in para 9.76 318. Further. The Supreme Court has upheld the matter in the Company’s favour in January 2009. Alleged procurement of furnace oil without payment of duty by wrongly availing the exemptions contained in the Notification No.15 - 14. there was an alleged shortage of Polyester Texturised yarn in physical stock as compared to the stock as per statutory records. 96 - 12. The case has been settled in the Company’s favour during the current year. 53/97-CUS 03-06-1997. Alleged procurement of furnace oil without payment of duty by wrongly availing the exemptions contained in the Notification No. Excise and Service Tax Appellate Tribunal (CESTAT). Alleged improper grant of refund for duty paid through PLA by Assistant Commissioner under Rule 18 of Central Excise Rules during the period from September 2005 to July 2006.51 29. The Company has preferred an appeal with the Commissioner of Central Excise (Appeals) – Rajkot.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31. The Commissioner (Appeals) of Customs and Central Excise has passed the order against the Company. The Company has filed its reply against the show cause notices issued by Joint Commissioner and Commissioner of Customs and Central Excise. Daman against the orders passed by the Assistant Commissioner of Custom and Central Excise.214/86 – CE dated 25-03-1986. 39/2001 –CE dated July 31. The Company has deposited Rs. The Supreme Court has upheld the matter in the Company’s favour in January 2009.33 72. 2001 in respect of goods sold from the factory during the period from February 2006 to September 2007. the Commissioner has made an application to CESTAT to withdraw his order passed in April 2008 in respect of non payment of excise duty. The Company filed an appeal against the order with Commissioner of Central Excise & Customs (Appeals).15 0.70 million under protest and filed an appeal with the Customs. Daman. 2008 Rs. The Assistant Commissioner of Central Excise has passed the order against the Company. The Company has received an order from Commissioner. Ahmedabad against the order passed by Commissioner (Appeals) of Central Excise and Customs. Ahmedabad’s order passed in favour of the Company. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.81 - 11. Vapi. The Company has filed appeals with Commissioner of Custom and Central Excise.28 - 3. Ahmedabad order passed in favour of the Company.56 45. 2009 Rs. The Company has filed its reply against the show cause notice issued by the Commissioner of Central Excise and Customs.

09 million under protest and has filed an appeal with the Joint Commissioner of Sales Tax. The Company has paid Rs.75 - 0. million 7. 2008 Rs. 1973 read with Section 49(3) and (4) of Foreign Exchange Management Act.03.03 - 4. FEMA : The Appellate Tribunal for Foreign Exchange. 1999 in respect of non-realisation of export proceeds. Vadodra. Vadodra. interest and penalty. Alleged improper availment of cenvat credit on service tax paid on insurance peimia paid for availing insurance services that are not used in or in relation to manufacture of final products. The Company has filed an appeal with the Delhi High Court. As at March 31. Claims against the Company not acknowledged as debts. 0. The Company has received a show-cause notice from Assistant Commissioner of Central Excise and Customs. As at March 31.30 17.12 97 .2009. 2009 Rs. New Delhi has issued an order for contravention of the provision of Section 18(2) of the Foreign Exchange Regulation Act.97 6. Daman dated 11.17 1. Others: Accumulated dividend on cumulative redeemable preference shares . 2009 Rs.2009 demanding the amount of duty. The Company has deposited Rs.021. Bills discounted in respect of export debtors [including the Company’s share of Rs.41 2. Stamp Duty : Disputed stamp duty liability on De-merger Scheme. 2008 Rs. which are used for storage of finished goods. Company’s share of stamp duty demand raised by Gujarat Government from WZTL (a jointly controlled entity) for which WZTL has filed an Appeal with the High Court of Gujarat.SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31.07 0. 0.41 2. million - 0.856.18 4.46 0. The Deputy Commissioner of Sales Tax has issued an assessment order for the financial year 2004-05 and raised the demand on purchase of Furnace oil during the year 2004-05 in respect of purchases made by the Company at a concessional rate of tax.01 million) in jointly controlled entities]. The Company has paid Rs. Sales Tax : The Deputy Commissioner of Sales Tax has issued an assessment order for the financial year 2003-04 and raised the demand on purchase of Furnace oil during the year 2003-04 in respect of purchases made by the Company at a concessional rate of tax. The Company has filed an appeal with the Joint Commissioner of Sales Tax. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.72 1. million - 17.74 million under protest. 1.82 As at March 31.90 0. The Company received an order from Additional Commissioner. Vapi against which it has filed a reply. 2008 : 74. Central Excise & Customs. Nil (March 31. million 1. 2009 Description Alleged improper cenvat credit availed on “racks” classified as capital goods.23 As at March 31.46 - 1.02.07 million under protest and filed an appeal against the order with Commissioner of Central Excise & Customs (Appeals).90 Description INCOME TAX Company’s share of income tax demand raised by Income tax Authorities on WZTL (a jointly controlled entity) for which an appeal has been filed by WZTL before the first appellate authority. Daman on 27.

imports of raw material are allowed to be made duty free. the Parent Company's shareholding in WRL has diluted from 49% to 41. January 1. 6. 2009. Further.24 million (March 31. 6) During the year.39 million pertaining to the above fully owned subsidiaries of SOREMA. 0. the Company transferred the entire investment in equity shares of WAG aggregating CHF 17 million to Welspun Holdings Private Limited.88 million) given to Welspun AG (WAG). 0.43 As at March 31. SOREMA-Tapetes E Cortinas De Banho.A. 2008 : Rs.95 million (equivalent to CHF 16. (SOREMA). 5) On July 3. As at March 31.(a) SOREMA Welspun Distribution & Logistics (b) SOREMA Welspun Espana (c) SOREMA Welspun Benelux to expand its activity in Spain. On April 2. 380. a specified amount of export obligation within a specified time. S. for consideration of Euro 6. a wholly owned subsidiary. a Subsidiary of the Parent Company.62 million and net loss aggregating Rs. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.431. the Company.78 million) in jointly controlled entities]. Holland. 2008 : Rs.24 million) in Jointly Controlled entities and Rs.65%. Belgium.81 70. 2012 and January 1.89 876. 2008 and the shareholders in the Court convened meeting held on 98 . through the conduits.33 million) in associates] (b) In accordance with the EPCG Scheme. 726. imports of capital goods are allowed to be made duty free and under Advance License Scheme.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31.95 302. on or after January 1. 2009 3) Description (a) Guarantees given by banks on behalf of the Company and its subsidiaries [including the Company’s share of Rs. 2008: Rs. Welspun Retail Limited (“WRL”) made a private placement of its equity on November 3. Based on the current operating plan. Portugal (“SOREMA”) through Welspun Holdings Private Limited (WHPL). certain loans aggregating Rs. 15.67 million (March 31. the Company acquired 76% of the equity shareholding in SOREMA-Tapetes E Cortinas DE Banho. 2011. Subsequently. 0. The private placement was made at a price which was in excess of the Company's average per share carrying value as on the date of private placement. 0.329. million 285. The Consolidated Financial Statements include net liability aggregating Rs. subject to the condition that the Company will fulfill. 2008. its wholly owned subsidiary. the Company would fulfill its export obligation within the specified time period. the Company had acquired 85% of the equity shareholding in CHT Holdings Limited-holding company of Christy Group (“Christy”) through conduits of wholly owned subsidiaries (“WOS”) and through these WOS had also entered into a put and call option agreement to buy the remaining 15% equity shareholding in Christy. 2008.39 million has been recorded as Capital Reserve.97 36. 8) During the year. Luxembourg and other European Union countries. 2008 : Rs. at a consideration to be determined based on the respective average EBITDA of SOREMA for last two financial years prior to these dates.356 million. 2008 Rs.28 million (March 31. 9) (a) (i) Pursuant to 'the Composite Scheme of Arrangement in the nature of demerger and transfer of Marketing Division of Welspun India Limited to Welspun Global Brands Limited and Investment & Treasury Division to Welspun Investments Limited and Restructure of Capital of these companies' (the “Scheme”) as approved by the Board of Directors of the Company on September 15. Subsequent to the private placement.61 4) On December 20. The resultant gain of Rs. formed the following fully owned subsidiaries as follows . 7) An Associate of the Parent Company.2009 Rs.21 as specified in the Share Purchase Agreement.84 million) in jointly controlled entities]. has entered into a Put and Call Option Agreement to buy remaining 24% equity shareholding in SOREMA. 28. through WHPL.A. 0. on March 16. 2006. 8% each. million 296.54 million (March 31. the Company. Amount of duty saved on imports of above goods against which export obligation is yet to be fulfilled [including companies share of Rs. 33. (c) Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for [including the Company’s share of Rs. 2007. in future. a wholly owned subsidiary of the Company. were converted into investments in the equity share capital of WAG. 2013 respectively. acquired the remaining 15% of the equity shareholding in CHT Holdings Limited at a consideration of GBP 2.. S. 9.

(ii) As per the Scheme. 2009 and filed with the Registrar of Companies on June 12.18 (iv) Amount of revenue.173. 10 each representing the entire share capital of WGBL at a premium of Rs.56 2.18 3. as per the Scheme.636. 9) (b) (i) (ii) (iii) Information relating to a discontinuing operation: Date of the initial disclosure event : September 15.77 - - 2.89 5. as at March 31.84 For the year ended March 31. 2009 and as at March 31. WGBL will issue 1 equity share of Rs.05 7.672. expenses. respectively.18 2.360.81 187.895.84 3.173.77 99 .13 232. the Company formed WINL by investing Rs.13 Total For the For the year ended year ended March 31.84 Revenue Operating Expenses Pre-Tax Profits / (Loss) before share of Loss of Associate and Minority Interest Fringe Benefit Tax Investment & Treasury Division For the For the year ended year ended March 31. Upon the transfer.03 7. WINL was formed for the purpose of transfer of “Investment & Treasury Division” of the Company to a wholly owned subsidiary pursuant to the Scheme. the Company acquired 500.093.99 3. WINL will issue 1 equity share of Rs. 2009 233. of the total assets to be disposed of and the total liabilities to be settled: (Rs. the assets and liabilities of the Investment & Treasury Division of the Company will be transferred to WINL with effect from the Appointed date. 2009 Total As at March 31. 2008 Total Assets to be disposed of Total Liabilities to be settled 2.90) 5.95) 5. with effect from April 1.97 7. 2008.75 2. the Marketing Division of the Company and the Investment & Treasury Division of the Company were transferred to Welspun Global Brands Limited (WGBL) and Welspun Investments Limited (WINL). 2008 As at March 31.000 in the equity share capital of WINL.636.81 194. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. 10 per share. 2009 As at March 31.99 3.tax profit and tax in respect of the ordinary activities attributable to the discontinuing operations: (Rs. 2009 2008 232. pre . 10 each credited as fully paid up to the shareholders of Welspun India Limited for every 20 equity shares held by them in Welspun India Limited. 2008 56.79 (776.16 2.55 As at March 31. 500. On September 17.05 7. March 31. 2009 (the “Appointed date”). 10 each credited as fully paid up to the shareholders of Welspun India Limited for every 10 equity shares held by them in Welspun India Limited.037. 2009.75 2.783.34 As at March 31. 2009 January 13. 2009 6.672. March 31. assets and liabilities of the Marketing Division of the Company will be transferred to WGBL with effect from the Appointed date.854. Upon the transfer. 2008 Period in which the discontinuance is expected to be completed : Financial year 2009-2010 Carrying amounts. WGBL was acquired for the purpose of transfer of “Marketing Division” of the Company to a wholly owned subsidiary pursuant to the Scheme. 2008.SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31.79 (544.620. (Iii) Further. 2009 2008 7.01 2. On October 7. Million) Particulars Marketing Division For the year ended March 31.783.000 equity shares of Rs. 2008.127. 2008 5. Million) Particulars Marketing Division Investment & Treasury Division As at March 31.367.

000 387. prior to the date of grant. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. 2006.000 516.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31.13 Weighted Average Exercise Price (Rs. of Stock Options 1. 11) (a) Term loans from banks and financial institutions including interest thereon are secured by way of first charge on entire movable and immovable properties of the Company. Since.13 2. quoted market price of the underlying equity shares of the Company was equal to the exercise price of an option. .000 Weighted Average remaining life in years 1. 2009 Cash flows from Operating activities Cash flows from Investing activities Cash flows from Financing activities 64. subject to prior charge on specific assets as per 11(b) below and on current assets as per 11(c) and (d) below against borrowing from banks for working capital finance.39. (ii) Exercise: Options vested with an employee will be exercisable within 3 years from the date of their vesting by subscribing to the number of equity shares in the ratio of one equity share for every option. 2009 (v) Amounts of Net cash flows attributable to discontinuing Operations. 63.09) (Rs.18) (976. certain term loans of a subsidiary are secured by way of charge on it's plant and equipments.03) 256. 2008 (22. 2008 Options granted during the year Options forfeited/lapsed during the year Options exercised during the year Options outstanding on March 31.90 For the year ended March 31. 0. no expense or liability arising from the Scheme has been recognised. 100 .80 110. ranking pari passu.64) 971. 2009 Options vested but not exercised on March 31. the employee compensation cost would have been higher by Rs. both present and future. 2009 No.13 4.80 110.67 7. The salient features of the Scheme are as under: (i) Vesting: Options to vest over a period of four years from the date of their grants as under : .80 Information in respect of options outstanding as at March 31.20% of the Options granted to vest at each of the 1st and 2nd Anniversaries of the date of grant.000 258. Particulars Marketing Division For the year ended March 31.494. Had the Company adopted fair value method in respect of options granted. 2008 - (537. Summary of Stock Options Options outstanding on April 1.13 - - 10) On May 17. resignation or otherwise the Options may lapse or be exercisable in the manner specifically provided for in the Scheme.30% of the Options granted to vest at each of the 3rd and 4th Anniversaries of the date of grant. at the latest available closing market price of the equity shares. of Stock Options 258.80 The compensation costs of stock options granted to employees are accounted by the Company using the intrinsic value method.80 per equity share (closing market price as on May 16. Million) Investment and Treasury Division For the year ended March 31.80 110. Certain term loans of a subsidiary are also collaterally secured by shares owned by group companies. 2009 No. Profit after Tax lower by Rs.000 387. hence.000 1. 14.13 3.290.20.36 million. 14.13 (8. on the date of grant of option. 2006).) 110. Further. The fair value of the options as per the 'Black Scholes' model is Rs.80 110. In the event of cessation of employment due to death.36 million and the basic and diluted earning per share would have been lower by Re.000 Weighted Average Exercise Price (Rs.) 110. the Company has issued Employee Stock Options under the Employee Stock Options Scheme (the “Scheme”) to employees of the Company and its subsidiaries with a right to subscribe to equity shares at a price of Rs. 110.80 110.000 204.80 110. 2009 For the year ended March 31.

215. Employers' Contribution to Employee’s State Insurance c. Major Assumptions Discount Rate .50 million (March 31. 383. 2008-09 7. 2008 : Rs.Employers' Contribution to Employee’s Pension Scheme* . Employers' Contribution to Employee’s Pension Scheme. Nil (March 31. 4.80 million (Previous Year: Rs.32 29.25 8. seniority. * Included in Contribution to Provident and Other Funds (Refer Schedule 16) II Defined Benefit Plan Contribution to Gratuity Fund a.45 12. 14) Borrowing Costs aggregating Rs. 90. 1. Employers' Contribution to 401(k) Retirement Plan e. 2009 (b) In addition to 11(a) above. the Company has recognised the following amounts in the Profit and Loss Account: . 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.509. Nil) is secured by subservient charge on Company's entire current asset and Technology Upgradation Fund subsidy receivable from Government of India for textile industries towards term loan borrowing by the company and against collateral of post dated cheques.Worker Expected Rate of Return on Plan Assets Salary Escalation Rate @ The estimates for future salary increases considered takes into account the inflation.10 million) and interest thereon.35 million (net of interest subsidy of Rs. net exchange loss of Rs. Employers' Contribution to Provident Fund b.03 47. on specific fixed assets of the Company and by lien on fixed deposits of the Company. 4.00 6.Staff Discount Rate . 1995 d.66 million.00@ 2008-09 32. 100 each fully paid up are redeemable at par in the year 2009-2010 or after repayment of all outstanding term liabilities and preference shares held by banks and financial institutions as on April 1.Employers' Contribution to Provident Fund* .) 2007-08 8.97 (Previous Year: net exchange gain of Rs. and demand loans from banks) are secured by hypothecation of raw materials. packing credit.95 101 .82 million) in jointly controlled entities.000 0% Redeemable Preference Shares of Rs.a. respectively.SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31. 152.54 0. inter se. Previous Year: Rs.092.Employers' Contribution to Employee’s State Insurance* . has been accounted in Profit and Loss Account. book debts and fixed assets of the respective subsidiaries.79 million.Other Social Security Funds The Company's share of expenses recognised in the Profit and Loss Account in jointly controlled entities. 5. 13) In accordance with the Company's policy given in Note 1(C)(ix) above. stores and spares and book debts of the Company and second charge on entire fixed assets of the Company.82 million) in jointly controlled entities. The working capital loans of the subsidiaries are secured by hypothecation of inventory.00 5.69 36. 101.03 6. Previous Year: Rs.50 8.16 million) attributable to the acquisition or construction of qualifying assets are capitalised during the year as part of the cost of such assets which includes the Company's share of Rs. 2008 : Rs.50 7. Other Social Security Funds During the year. term loans from Banks aggregating Rs.20 million (Previous Year: net exchange gain of Rs. 156. million 2007-08 25. finished and semi finished goods. 5.75 million (March 31. (d) The working capital loans (other than referred in 11(c) above).20 million) and Rs.29 1.28 Rs. are secured by exclusive charge pari passu. 1.42 million) which includes the Company's share of net exchange loss of Rs. 2008 : Rs.00 (% p.50 8. 15) The Company has classified the various benefits provided to employees as under :I Defined Contribution Plans a. (c) The working capital loan towards overdraft facility aggregating Rs.56 7. promotion and other relevant factors. 12) 500. 266. whichever is later. 3. 47. (which includes cash credit. 2000 and interest and dividend thereon.

53) 9.48 (8.66 16) Segment Information for the year ended March 31.24 d.16 50.24 6. Wages. Change in the Present Value of Obligation Opening Present Value of Obligation Current Service Cost Interest Cost Past Service Cost Benefit paid Actuarial Losses on Obligations Closing Present Value of Obligation 2008-09 47.27 0.73 20.61 47. Change in Fair Value of Plan Assets Opening Fair Value of Plan Assets Expected Return on Plan Assets Actuarial (loss)/ gain on Plan Assets Contributions Benefits paid Closing Fair Value of Plan Assets 2008-09 53. Thus.01 - Present Value of Funded Obligation Fair Value of Plan Assets Funded Status Present Value of Unfunded Obligation Assets recognised in the balance Sheet and included under Loans. Reconciliation of Present Value of Defined Benefit Obligation and the Fair Value of Assets Rs.82 f. total cost incurred to acquire segment assets. total carrying amount of segment assets.72 4. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.34 0.55 1.26) 8. 2009 (i) Information about Primary Business Segment The companies forming part of consolidated financial statements are exclusively engaged in the business of Home Textiles.61 1. Advances and Other Current Assets Unfunded Net Liability Recognised in the Balance Sheet disclosed under Current Liabilities and Provisions (Refer Schedule 12) e.23 53.19 3. segment results.21 (3.23 b.72 5.23 53. 2009 2008 52.13 (6.02 (4.55 Rs.02 (12.02 2.68** 7.01 6.13 (2.27) 0.24 4. This.72) (2. total amount of charge for depreciation during the year are all as reflected in the financial statements for the year ended March 31. million 2007-08 34.16 50. is considered to constitute a single primary segment. 2009 Rs.01) 1. in the context of Accounting Standard 17 on Segment Reporting. 2009 and as on that date. Allowances and Other Benefits (Refer Schedule 16) The Company's share of expenses recognised in the Profit and Loss Account in jointly control entities.50 (6.10 17. Amount recognised in the Balance Sheet Present Value of Obligation Fair Value of Plan Assets Liability/ (Assets) recognised in the Balance Sheet 52.18 47. The Company's share of (Assets)/ Liability recognised in the balance Sheet in jointly control entities.10) 53.20 52.23 11.61) 1.55 (1.24 (6.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31.83 11. 2008-09 11.01) Rs.10) 2.26 (7.16 c. million 2007-08 36.90) 50. million As at March 31. Expenses Recognised in the Profit and Loss Account Current Service Cost Interest Cost Expected Return on Plan Assets Net Actuarial Loss/ (gain) Recognised in the period Total expenses Recognised in the Profit and Loss Account** Actual (Loss)/ Return on Plan Assets ** Included in Salary. issued by the Institute of Chartered Accountants of India. As at March 31. 102 . million 2007-08 11.19 3.92) 8.61 47.51 0. the segment revenue. total carrying amount of segment liabilities.72 4.

2008 1. 2009 (ii) Information about Secondary Geographical Segments: (Rs.827.51 15.58 3. 2009 16.20 27.94 66.776.24 465.58 March 31.141.991.408. L.74 79.075.30 3.439. results.94%) Welspun Retail Limited (WRL) (Extent of holding – 41. under which it could utilize certain names on towels.101. 2009 External Revenue Carrying Amount of Segment Assets Capital Expenditure (excluding the Incidental Expenditure Pending Capitalisation/ Allocation) 1. (b) Segment revenue. The future minimum annual royalties.SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31. image fund fees and merchandise coordinator fees obligations as at March 31.84 6. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.93 26. Mandawewala (RRM) M. 2009 31.60 334.163. Goenka (BKG) R. K.031.35 22.463. million) Total 146.93 Outside India March March 31.754.07 March 31.81 1.23 Image Fund and Merchandise Coordinator Fees 31. Million) India March 31. 17) A subsidiary of the Company has four separate trademark licensing agreements.88 Total March 31.17 41.86 441.49 (iii) Notes: (a) The Segment revenue in the geographical segments considered for disclosure are as follows: Revenue within India includes sales to customers located within India and earnings in India. Mittal (MLM) Deepali Goenka (DBG) 103 (b) (c) Associate Company 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 (d) Key Management Personnel Relatives of Key Management Personnel (e) . R.64 18) Related Party Disclosures (i) Relationship (a) Control Joint Venture Companies Welspun Zucchi Textiles Limited (WZTL) (Extent of holding – 50%) MEP Cotton Limited (MC L) (Extent of holding – 26.65%) Welspun Gujarat Stahl Rohren Limited (WGSRL) Welspun Power and Steel Limited (WPSL) Welspun Syntex Limited (WSL) Welspun Trading Limited (WTL) Welspun Wintex Limited (WWL) Welspun Mercantile Limited (WML) Krishiraj Trading Limited (KTL) Welspun Logistics Limited (WLL) Welspun Realty Private Limited (WRPL) Mertz Securities Limited (MSL) Welspun Polybuttons Limited (WPBL) Refined Salts Private Limited (RSPL) Vipuna Trading Limited (VTL) Goodvalue Polyplast Limited (GVPL) Welspun Foundation for Health and Knowledge (WFHK) B. Revenue outside India includes sales to customers located outside India. 2009 were as follows: Year ended March 31 2010 2011 2012 Royalty 114.30 108.36 21.48 112.388.195. 2008 16.12 222.41 (Rs.57 38.310.06 3. assets and liabilities include the respective amounts identified to each of the segments and amounts allocated on a reasonable basis.63 2.36 42. earnings outside India and export benefits on sales made to customers located outside India. 2008 15.959.

86 - - - 233.82) 3.42) (2.50 244.45) - - (0.20 (2.23 (0.16 (3.63 (77.42) - # 0.05 24.12) 21.33 (12.56) - 99.45) (122.67) 69.24 (13.52) 4.20 (23.83) 4.50) (244.20) (0.68 (20.50 1.95 0.00) - Purchase of Goods Purchase of Services/ Expenses incurred 18.40) - (250.86) 22.56 (34.40 17.60) - - Investments Share Application Money Pending Allotment 34.61) 1.16) 32.00) 1.78) 0.01) 511.65 (56.14 (0.000 .11) 3.63 (4.66 Sale of Goods/ DEPB Licenses - Annual Report 2008 -09 Job Charges Received - WELSPUN INDIA LIMITED Sale of Services/ Expenses incurred - Sale of Fixed Assets (1.10) (0.68) 3.50) - (4.92 (254.65) - Notes: Previous year figures are given in brackets.42) - - - Creditors 10. # Less than Rs.46 (15.40) # - - (23.39 (26.21) 40.53 (1. million DBG MLM 0.16 (6.23) 4.93 0.59) - 18) (ii) Following are the transactions with related parties mentioned in (i) above and the year-end balances WZTL MCL PARTICULARS Transactions during the year Loans.34 - - 29.05) (11.40) 23.73) 4.91) - Dividend Received - - 2.63 (99.01 (1. Advances and Deposits given - Deposits Received - 42.40 1.72 (35.36 5.88 (4.00) (0.05 (0.29) 3.27) - 2.50 (12.57) 5.47 (12.35 (412.70 (7.51) 56.20 WPSL GVPL WSL WTL WLL WRPL WWL KTL WML VTL MSL WPBL RSPL WFHK BKG RRM Rs.50) Closing Balance Loans.00) 257.51) 1.02 (12.71 (9.05) (89.74) # 3.90 (11.00) 16.00) - - - (15.00) (100.63) 0.00) (220.27 (3.42 (3.14 (0.00 (10.10) # 2.42) 58.80 - - 13.67 2.50 2.28 42.44 (0.20) - (11.83 (6.69 (0.42) - (4.85 (7.48 (1.67 (250.50 2.60 (5.23 (2.13) - 0.00) (9.41 # - 10.40 - - - - Loans. Discount and Rebate - Remuneration and Commission 10. Advances and Deposits received 10.37) (65.23 0.73 (51.54) (20. Advances and Deposits given - Repayment of Loans.00) 9. 10.72) 2. 2009 104 WRL WGSRL 0.18) 5.40) 498.51) # Donation - - Share Application Money Paid - Purchase of shares of WGBL during the year - (0.61) 3.27) 2.35 (2.03 Debtors (Net of Bills Discounted with Banks) (20.04 - (9.03 (11.82) 47.28) 9.48) (0.76 (16.01 (71.SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31.89) 13.42) (0.05 0.78) - - Purchase of Fixed Assets / Capital Goods - - Interest Income - - Claims.50) (6. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.63 (111.00) - 0. Advances and Deposits given (Including Interest Accrued on Loan) 1.55) 12.

65 0. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. 0.49 26. 25. 2009 10. 0.40 million on plant and machinery which was given on lease upto July 2007.01 million) in jointly controlled entities The aggregate rental expenses of all the operating leases for the year are Rs.74) 22. Nil (March 31.73 42.63 3.29 million (Previous Year: Rs. million Total MLP PV Plant and Machinery 19. The initial tenure of lease is generally for eleven months to sixty months. 2008 : Rs. 2008 10.13) Previous Year figures are given in brackets * Including the Company's share of Rs.SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31.29 (13. The minimum rental payments under the operating leases under non-cancellable lease term as at March 31.87 million (March 31.23 (22.71) 37. 287.43 million) which includes the Company's share of Rs.38* (86.98) Later than 1 year and not later than 5 years 767.04 million (March 31. 41. Where the Company is a lessee : (i) Finance Lease Future obligation towards lease rentals under the lease agreements as on March 31.61** (489.87 (25.17 42.76) 17. 2009 is Rs.56 million) in jointly controlled entities.29 million (Previous Year Rs. million Later than 5 years 100. 2009 19) Leases A. 0. Where the Company is a lessor : Operating Lease Certain buildings and plant and machinery have been given on operating lease.99) Previous Year figures are given in brackets.25 1. 3. 105 .49 30. 167.25) - - 41.90 6.34) Rs.33* * Includes depreciation of Rs. 2009 are as under: Not later than 1 year 167. million March 31. 2008 : Rs.58 (11.71 million) Description Not later than 1 year MLP PV Later than 1 year and not later than 5 years MLP PV Later than 5 years MLP PV Rs. godowns and vehicles under operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. 0. 0. office premises.82 0.11 million) in jointly controlled entities **Including the Company's share of Rs.25 1. details of which are as under: Particulars Buildings Gross Block Accumulated Depreciation Depreciation recognised in the Profit and Loss Account for the year Plant and Machinery Gross Block Accumulated Depreciation Depreciation recognised in the Profit and Loss Account for the year March 31. B.86 (12. MLP : Minimum Lease Payments PV : Present Value (i) Operating Lease The Company.37 (10.49 (229.95) 19. some of its subsidiaries and one of it's jointly controlled entities have taken various residential. 2008 : Rs.17 Rs.

Sales (net of excise duty) 2.83 (Loss)/ Profit before taxation Provision for taxation (including deferred taxation) (Loss)/ Profit after taxation 106 .71 1.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31. Depreciation 613.71 167.39 IV EXPENDITURE 1. 2009 20) Provisions for Closure Costs Exceptional items for the year represent costs incurred by one of the Subsidiaries to exit an arrangement with a retailer. Deferred Tax Asset – Net 5. Current Assets. 2009 20.58 1.36 Rs.38 2.69 570.66 II (27. Administration and Other Expenses 4. Other Income 693.35 21) Disclosure of Interest in Joint Ventures Rs.13 1.88 41. 2009 I ASSETS 1.27 2.97 For the year ended March 31.63 29.26 46.83 3. 2008 308. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31. million As at March 31. Current Liabilities and Provisions a) Liabilities b) Provisions 241.84) 526.37 50. Secured Loans 3. Fixed Assets 2.82 566.80 20. 2008 III INCOME 1.23 4.70 (47.16 9. Employees’ Remuneration and Benefit 3. Selling. Finance Expenses (Net) 5.81 514.16 0. million Opening Balance Add: Additional provision made Less: Amounts Utilised Closing Balance 1.31 47. Shareholders’ Funds – Reserves and Surplus (excluding Share Premium) 2.12 160.59 70.26 2.89 54.96 (55.34 As at March 31.58 743.30 14.54 51. million For the year ended March 31.52 31.30 0.00 19.36 180.43 6.75 15.48 14.55 695.52 15. Unsecured Loans 4.99 38. Advances and Other Current Assets LIABILITIES 1. Materials and Manufacturing Expenses 2.12 6.37 5. Loans and Advances a) Inventories b) Sundry Debtors c) Cash and Bank Balances d) Loans. The cost includes severance cost and write off of shop fixtures and fittings.27 572.96 0. Investments 4.46) 276. Incidental Expenditure Pending Capitalisation/ Allocation 3. Deferred Tax Liability – Net 5.02 31.88) 7.32 7. Rs.

finished goods and traded goods are grouped together.91 114.) (73.83) B Pursuant to the adoption of AS-30 with effect from April 1. Hence. 2009 March 31.40 (Equivalent Rs.) Forward Exchange Contracts and Option Contracts March 31.28 (9.59) (332. 2009 (Rs. opening stock of raw materials. 2008 USD 1.38 (Equivalent Rs.) (49.) (23. for the purposes of presentation in Schedule 15. forward loss aggregating Rs.33) EURO 0.00 (46. 24) The Income Tax Department had disallowed certain expenditure claimed by the Company in its income tax returns for the Assessment Years 1998-1999 and 2001-2002. inventories of finished goods and traded goods are grouped together under Schedule 8.69 2.95) (496. During the year. Similarly.SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31.22) - (608. 294. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.26) JPY 59. work in process.95 million arising on fair valuation of hedging instruments that are considered effective are debited and carried forward. in ‘Hedging Reserve Account’ instead of the earlier policy of recognising such losses in the Profit and Loss Account.62) (647.052. the Income Tax Appellate Tribunal decided the matter in the 107 . 2008 as given in Note 1(x)(c) above. 2009 Year ended March 31. purchase of raw materials and traded goods are grouped together and closing stock of raw materials.) EURO (Equivalent Rs. C The following table summarizes activity in the Hedging Reserve related to all derivatives classified as cash flow hedges during the year ended March 31. 2008 Balance as at the beginning of the year Unrealised gain/ (losses) on cash flow hedging derivatives during the year Net gains/ (losses) reclassified into net income on completion of hedged transactions Balance as at Year end (941. million) Particulars Year ended March 31.33) ii) Forward Exchange and Option Contracts to hedge the foreign currency exposure for payments to be made against imports and other payables: (Rs. 2009 22) Disclosure of Derivative Instruments A Derivative instruments outstanding at the year end : i) Forward Exchange and Option Contracts to hedge the foreign currency exposure for payments to be received against exports and other receivables: (Rs.76 10.63) - 23) Certain Subsidiary Companies' accounting systems do not track purchases/ consumption of raw materials and purchases of traded goods separately.91 (Equivalent Rs.44) (116.89) (4.87) 0. 2008 186. 2009 March 31.640.44 12. finished goods and traded goods are grouped together. million) Currency USD (Equivalent Rs. work in process. million) Currency Forward Exchange Contracts and Option Contracts March 31.

55 1.55 73.. 2009 Company's favour. Patil Company Secretary Mumbai. 26) Loss per Share Rs.089. Holland and acquisition of additional 15% in CHT Holdings Limited and it's subsidiaries. June 30. V. SOREMA Welspun Espana S.519 0.02 10 27) The current year's figures include the effect of consolidating Welspun Global Brands Limited. June 30.519 10. Hence. Mandawewala Joint Managing Director M. 75. the current year's figures are not comparable with the previous year's figures. 11. L. machinery and buildings were damaged. 25) Due to floods at the Company's manufacturing unit at Anjar in the year 2008.33 765.77 million.) Basic and Diluted loss per share after Extra Ordinary Item (B/C) (Rs. certain inventory.WELSPUN INDIA LIMITED Annual Report 2008 -09 SCHEDULES ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31.47 10 73.02 0. 2009 AND CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31.. the Company has recognised deferred tax asset aggregating Rs. consequent to which. Previous year's figures have been reclassified to conform with the current year's presentation. Portugal.24 7. 3.37 10. 2009. Signatures to Schedules 1 to 19 forming part of the Accounts For and on behalf of the Board of Directors Neeraj Gupta Partner Membership No. Spain. U. The extraordinary item disclosed is net of tax impact of Rs. A.23 million on unabsorbed depreciation pertaining to the aforesaid assessment years. SOREMA Welspun Distribution & Logistics. 2009 D.089. Mittal Executive Director (Finance) Mumbai. million Particulars Loss after Tax and before Extraordinary Item (A) Less : Extraordinary Item Losses after Tax and after Extraordinary Item (B) Number of Equity Shares . L. Goenka Chairman & Managing Director R. Welspun Investments Limited. 2008 1. 2009 108 .Weighted Number of equity shares outstanding during the year ( C) Basic and Diluted loss per share before Extra Ordinary Item (A/C) (Rs. Chartered Accountants B. 2009 758. SOREMA Welspun Benelux B.57 March 31. F055158 For and on behalf of Price Waterhouse & Co.) March 31. These investments were made by the Company during the year ended March 31.) Nominal value of an equity share (Rs. wherever applicable. R.10 million has been included under 'Extraordinary item' in the Profit and Loss Account. Loss arising on account of these floods (net of insurance claim received) aggregating Rs.. K. K. S.

74 (43.06) NOTES : 1.69 (1.70) C.66 1.086.A.05 16.14 25.00) (221.42 (1. 898.73) (79.092.92 (100. 2.56 15.14 15.79 222. million (643. F055158 For and on behalf of Price Waterhouse & Co.24) 10. S.841.12 (3.60) (2.57) 271.06) 1.75 (51.23 (56.08) 1.53) (5.87 (100.71) (27.242.26) 1. 2009 Rs.499. This is the Consolidated Cash Flow referred to in our report of the even date. million A.333.3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India.63) 715.04 951.06 1.04 146. million 341.02 (199.83) (0..95 1. For and on behalf of the Board of Directors Neeraj Gupta Partner Membership No.CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31.55 1.372. CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets (Including Capital Work-in-progress) Sale of Fixed Assets Capital Subsidy Sale of Investments Dividend Received Interest Received Net Cash Flow used in Investing Activities CASH FLOW FROM FINANCING ACTIVITIES Redemption of Preference Shares Redemption of Debentures Proceeds from Long Term Borrowings (Net of Repayments) Proceeds from Other Borrowings (Net of Repayments) Finance Expenses Paid Net Cash Flow from Financing Activities (A+B+C) Cash and Cash Equivalents at the beginning of the year Cash and Cash Equivalents taken over from erstwhile SOREMA – Tapetes E Cortinas De Banho.77) 1.57 (38.240.72) 838.64 1. CASH FLOW FROM OPERATING ACTIVITIES Net Profit Before Tax Adjustments for : Depreciation Exceptional Items (Refer Note 20 on Schedule 19) Unrealised Foreign Exchange Differences Loss/ (Profit) on Sale of Fixed Assets Profit on Redemption/ Sale of Units of Mutual Funds Profit on Sale of Bonds Profit on sale of Shares Dividend Liabilities Written Back as no Longer Required Provision for Doubtful Debts/ Advances Written Back Provision for Doubtful Debts/ Advances Debts/ Advances Written off Excise Benefits Receivable Written Off Extraordinary Item Interest Income and Cash Discount Received Finance Expenses Operating Profit Before Working Capital Changes Adjustments for changes in working capital : Trade and Other Receivables Inventories Current Liabilities and Provisions Cash Flow Generated from Operations Income Tax and Fringe Benefit Tax paid Net Cash Flow from Operating Activities B.70 (11.a subsidiary Company Cash and Cash Equivalents at the end of the year Net Decrease in Cash and Cash Equivalents For the Year Ended March 31.83 19.298.41) 1.56) 465.97) (25. Patil Company Secretary 109 . June 30. Goenka Chairman & Managing Director M.460.298.80 For the Year Ended March 31. 2009 Rs.36) (597.31) 1. R. June 30. The Cash Flow Statement has been prepared under the "Indirect method" as set out in Accounting Standard . Mandawewala Joint Managing Director D.970.776. K.67 (2.43) 15.016.70) (495.80 465.342.16 1.468.56) (1.519.46) (368.197.90) 1.25) (1. 2009 B.53 4.886.40 39.69 (3.35) 160.277.62 43.628. L.35) (16.83 (632.81 (3.045. 2009 R.98 1.56 17.36) 1.27 175.10) (66.100. K. 2008 Rs.85) 25.08) 1. Mittal Executive Director (Finance) Mumbai.77) (102.20 14.12 (101.52) 12.24) (4. Previous year's comparatives have been reclassified to conform with the current year's presentation.60 (1.15 44.64 (632.92 2. Chartered Accountants Mumbai.26) (168.36 (627. wherever applicable.

18) (7.37 (4. S.84 666.00 184.10 31.00 0.08 59.468.44 97.65 872.00 171.55 2.24) (4.88) (1.07 1.28) - 0.00 229.6 59.000/** Consolidated Figure for the Company and all it’s subsidiaries is given. K. Mandawewala Place : Mumbai M.83) (119. Ltd. V. Patil Mumbai. K.52 31-Mar-09 5.24) - 0.95 786.A.35) - * Less than Rs. A.16 41.05 (407..89 276.00 (25.10 937.56 (4.179. Goenka Chairman & Managing Director Joint Managing Director R.50 (0.484.72 0.10.74) 0.32 212.55 Annual Report 2008 -09 WELSPUN INDIA LIMITED Investment (excluding investments in subsidiaries) - - Turnover Profit before Taxation Provision for Taxation Profit after Taxation Proposed Dividend 0.07 34.18 (175.98 31-Mar-09 0. S. R.31 565.75 0.00 (1.. 1956.89) 0.88) 917.37 1..35) (0.83 (334.40) (312.51 0.00 7.853.37 (1.12 1.00 2. June 30. RELATING TO SUBSIDIARY COMPANIES Name of the subsidiary company Welspun USA Inc.00 3.50) 429. L.60 31.19) 94.32 0.00 (507. Portugal SOREMA Welspun Espana S.61) 0.48) 0. Europe Ltd. For and on behalf of the Board of Directors B. Spain SOREMA Welspun Benelux B.23 1.31) 10.151.00 2.16) (10.00 (0.14 0.03 698.35) 0.30) 0.21) (21.33 (4.45 6.01 0.00 94.38) 1.89 212.09 Share Capital Reserves & Surplus Total Assets (Fixed Assets + Investments + Current Assets) Total Liabilities (Debts + Current Liabilities) 1.00 0.96) 78.08) 436. Holland Besa Developers and Infrastructur e Private Limited Welspun Global Brands Limited Welspun Investments Limited 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 31-Mar-09 0.91 785. Financial Year of the subsidiary ended on 31-Mar-09 31-Mar-09 31-Mar-09 6.93 2.00 (7.59 - STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT.50 (157.15 339.85 5.03 0.21 66.00 90.88) 0.18) - 0. Christy (Textiles) Ltd.40 1.17 184.08 17. Christy Home Christy UK Textiles Ltd.02 0.39 1.81 0.50 1.00 2.759. in million CHT Holdings Ltd.27) (41.755.78 1.27 1.00 0.222.13 698.72 3.30 852.00 - 0.86 (181.94 0.44) (37.68 605. Welspun Welspun Holdings Pvt.96 3.91 950.65 11. SOREMA Welspun Distribution & Logistics.90 10.110 Rs.11 (2.895.86 4.54 210.69 1.00 48. 2009 .26 0.42 0. GmbH Welspun AG Welspun Mexico SA de CV SOREMA Tapetes E Cortinas DE Banho.44 (181.67 0.00 438.21 (2.48 77.00 731.87 13.40 - 0. Mittal Executive Director (Finance) Company Secretary D.818. U.33 77.43) 9.45 6. E R Kingsley Christy 2004 Flyspark Ltd.48) (9. Home Ltd.289.08 86.82 1.56 1.42 316. L.81) 0.62 (4. Textiles UK Ltd.42) 0.28) (2.07 (52.612.42) (407.11 (9.17 0.