Annual Report 2015 I Welspun India Ltd. II Annual Report 2015 Welspun India Ltd. From Welspun India From Welspun III Annual Report 2015 Welspun India Ltd. IV Annual Report 2015 Welspun India Ltd. CONTENTS information orevents. any forwardlooking statements, on thebasisof any subsequentdevelopments, amend, modifyorrevise to publicly events. TheCompanyassumesnoresponsibility Forward- statements. forward-looking statements arebasedoncertainassumptions andexpectationsoffuture looking are results, financial and expenditures, about the strategy Company’s for growth, productdevelopment,market position, but notlimitedtostatements about thefuture,including or projections expectations All statementsthataddress meaning. ‘estimates’ orotherwordsofsimilar ‘projects’, by identified be may their useof ‘intends’, words like‘plans’,‘expects’, ‘will’, ‘anticipates’,‘believes’, which statements, forward-looking contains report This Forward-Looking Statements Financial Section Business Commitment toResponsible Corporate Information Highlights andAchievements Chairman’s Message Consolidated FinancialHighlights Consolidated Financials Standalone Financials Corporate GovernanceReport Directors’ Report Management’s Discussion & Analysis 30 156 96 82 47 10 8 6 4 2 1 Annual Report 2015 Welspun India Ltd. 2 Annual Report 2015 Welspun India Ltd.Ltd HIGHLIGHTS CONSOLIDATED FINANCIAL 10,500 13,000 14,500 16,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 10.0% 15.0% 20.0% 25.0% 30.0% 3,000 4,500 6,000 7,500 9 5,000 1500 5.0% ,000 0 0 *Adjusted fortheone-off depreciation. EBITDA Revenue Networth 2012-13 2012-13 2012-13 9,902 17.7% 36,473

Margin 2013-14 2013-14 (Rs.Million) 2013-14 1 43,730 23.4% (Rs.Million) 1,097

(%)

14,318 2014-15 53,025 2014-15 25.8% 2014-15 10,500 12,000 13,500 15,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 10,000 1,500 3,000 4,500 6,000 7,500 9,000 5,000 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 0 0 0

2012-13 2012-13 Cash PAT

2012-13 (GrossBlock-Rs.Million) EBITDA 27,155 6,438 4,178 Fixed

Assets 2013-14* 2013-14 2013-14 10,253 36,052 6,237 (Rs.Million)

(Rs.Million)

2014-15 2014-15 44,933 2014-15 9,017 13,691 3 Annual Report 2015 Welspun India Ltd.Ltd 4 Annual Report 2015 Welspun India Ltd.Ltd the industry. things areonlygoingtogetbetterinthecoming yearsfor India advantagehasbeeneven moreprominentandIbelieve, are thus seeing moreandclientsincreasetheirsourcing pieof textile andapparel from India. In home textiles,the India improveits competitiveness andmarketshareintheglobalarena.We arehelping taking placeintheindustrywhich are in mylastyear’s address,certainstructuralchanges China. AsImentioned behind largest exporteroftextileproducts As you are all aware, India has emerged as a significant player in the textiles sector, and is currently ranked as the second Business Scenario to fosteringsustainability. products, path-breaking todeveloping technologies, innovative -fromleading our business into Welspun’sDNA.It “Dare tocommit”isabeliefwellentrenched drives every aspectof My dearfellowstakeholders, third yearrunning Supplier totheUS, No. 1HomeTextile been rankedasthe textile business,having a frontrunnerinthe we haveremained In theyear2014, MESSAGE CHAIRMAN’S Chairman, WelspunGroup Balkrishan Goenka and developthemintoourfuturebusinessleaders. them to attractthebesttalent,empower committed remain and e-commerce todrivefurthergrowth.Wealso hospitality such as channels underpenetrated on leveraging focusing innovative company.Weare asa highly to ourreputation last that itwillgiveafurtherboost 15 years,andwebelieve the in textiles in campaign such ever first the is This directly toend-consumers. our ownpatentedtechnology, in UStopromoteHygrocotton®, marketing campaign a well-targeted we havelaunched portfolio. Inthisdirection in ouroverall products of innovative the share be increasing CAGR overthelasttwoyears.Anotherkeyfocusareawill 40% at around has beengrowing in India sales branded very excitedabout the domestic market opportunity –our Ms. Parineeti Chopraasthebrandambassador.Weremain marketing campaignfor our domesticbrand“Spaces”with a major East. AsregardsIndia,wehavelaunched Middle the and such asChina geographies of “Christy”intonewer On theinternationalfront, we areintheprocessofexpansion sales. salesinouroverall the shareofbranded to increase such asEurope,EastAsiaandLatinAmerica.Wealsoaim on furthergrowthbytargetingthelesserpenetratedmarkets stakeholders. Inthecomingyears, we willfocusourattention community, andenhancevaluetoallour progressive and a sustainable to build continue competitiveness, evolving opportunities,improveourbusiness& market on Going forward,wewillsustainouragilitytocapitalize as dividendstoouresteemedshareholders. textile profits the our of quarter a distribute would in we where industry, first the among policy, dividend a declared operating EBITDA and profit after tax at all-time highs`. We our bestyear,withrevenue, year 2015wasundoubtedly Financial well. as results financial the in reflected is which at fullthrottle Our towelandsheetcapacitiesarerunning every tenthbedsheetsoldintheUS,comesfromWelspun. year. Inourestimate,everysixthtoweland consecutive being rankedastheNo:1suppliertoUSfor3rd position inhometextiles We maintainedourleadership integration. ourbackward and increasing development skill to initiatives fortify our stronghold byfosteringinnovation,enhancing significant undertook we years, few last the market share.Over by ourgrowing as evidenced clients for our of choice a supplier to be wecontinue At Welspun, women by providing skills training and careeropportunities. skills training women byproviding date, we havehelpedempowerover200underprivileged To & Health. Environment and Education Empowerment, - the ‘3Es’ within is enshrined mission Our social Community Development our successstory. business, andhas proven to be adifferentiatingelementin of our core values. It defines and guides the way we conduct is theessence business a responsible At Welspun,building Building AResponsibleBusiness name afew. sanitation facilities, tree planting andbiodiversitydrives,to vans, constructing health mobile camps, providing health setting upof our facilities,conducting RO plantsaround include, Some ofourinitiativesinEnvironment&Health optimism forover3,000children. and hope we havekindled opportunities, schoolinfrastructureandlearning By providing as partofour‘Bath,BedandRugs’productlines. ofwaterandenergy, consumption with minimal produced as otheritems products, aswell polyester’ ‘recycled and ‘eco smartrugs’ our valuechain.InFY15,weintroduced spans quantity offreshwaterthatweconsume.Innovation reduce the we consciously of waterinouroperations, recovery, rainwaterharvestingandensuringoptimaluse of measuressuchasrecycling,wastewater implementation its possiblereuseasalternatematerials.Through evaluate and focusonwastereduction by ouroperations, of wastegenerated the quantum monitor We continually for ouremployees. workspace asuperior focus oncreating Wealso impact. ecological reduce and efficiency energy activities,maintain production to rationalize underway Ongoing efforts orientation. are and sustainability arekeyfacetsofourgrowthstrategy R&D andinnovation Sustainability Balkrishan Goenka Best Regards, Sincerely, dedication, supportandcommitmenttoWelspun. bankersandinvestors,fortheirunrelenting & suppliers, our dedicatedemployeesandesteemedcustomers gratitude to ourBoardofDirectors,Management, sincere Last but not the least, I take this opportunity to express my the mostpreferredhometextilecompaniesinworld. of one of being committed toourjourney therefore remain we and way togo a long still have that we aware remain we a verysuccessful2014-15, Friends, aswecelebrate We ‘DaretoCommit’ on 2 Abhiyan Swachh Welspun launched Welspun SwachhBharatAbhiyaan, Inspired byPMNarendraModi’s Swachh WelspunAbhiyan balance. impact, which eventuallyimpacts the delicate ecological adverseenvironmental targets, andreducing cleanliness to wasteminimization, approach for acoordinated blueprint October 2014.Thisinitiativeoutlinesa comprehensive

nd of 5 Annual Report 2015 Welspun India Ltd. 6 Annual Report 2015 Welspun India Ltd. HIGHLIGHTS ANDACHIEVEMENTS 1985 1991 1993 1995 2000 2006 2007 2010 2011 2013 2014 2015 2005 its currentform to the textilebusiness shaping Limited India became Welspun Silk Mills Winilon Welspun Welspun USAwasincorporatedasthewhollyownedsubsidiaryofIndiaLimited Welspun setupitsmanufacturingfacilityatAnjarinGujarat Acquired Christy-themostprestigiousbrandoftowelsinUK controlling stakeinSorema,Portugal,sincedivested a sets. Alsoacquired sets facilityinMexico for1.4million Started ourstrategicbedding Ltd respectively Investments &Commercials Brands Ltd.andWelspun Global - Welspun companies separate into two itsSales&MarketingandInvestment divisions Welspun IndiaLimiteddemerged WIL RaisedRs.1,560MillionviaQualifiedInstitutionalPlacements single umbrellatocreateunifiedstrongerentity of textile businessundera andconsolidation - Home TextilesBusinessRe-organisation - RankedNo:1HometextilesupplierinUSbyTextilesToday - WelspunGlobalBrandsLtd.recognizedasa“CertifiedWomanBusinessEnterprise” - InitiatedthebackwardIntegrationprojectinSpinning&WeavingAnjar - No:1HometextilesuppliertoUSforthesecondconsecutiveyear and ‘Christy’storesinChina in theUS, campaign ‘Hygro’ branding Brand ‘Spun’globally, ambassador; Launched - Launchedmajorcampaignfor‘Spaces’inIndiawithParineetiChopraasthebrand - CommissionedIndia’slargestspinningfacilityunderoneroofatAnjar,Gujarat - No.1HomeTextilesexportertotheUSforthirdconsecutiveyear Our journeybeganasWelspunWinilonSilkMillsPvt.Ltd,a syntheticyarnbusinessinIndia India Limited Welspun PolyesterIndiaLimitedwentpublicwithitsIPO and subsequentlybecameWelspun The TerryTowelsunitinVapiwassetup 7 Annual Report 2015 Welspun India Ltd. 8 Annual Report 2015 Welspun India Ltd. Executive Director Ms. DipaliGoenka Managing Director Mr. RajeshMandawewala Director Mr. ArvindKumarSinghal Director Mr. ArunTodarwal Nominee Director-IDBIBank Mr. AjaySharma Director Mr. RamGopalSharma Director Mr. ApurbaKumarDasgupta Chairman Mr. BalkrishanGoenka Board ofDirectors Company Secretary CORPORATE INFORMATION Website: www.welspunindia.com [email protected] E-mail: Fax. +91-22-24908020 Tel: +91-22-66136000/24908000 Mumbai -400013,India Senapati BapatMarg,LowerParel, Kamala MillsCompound, Welspun House,6thFloor, Corporate Office Mr. ShashikantThorat

Fax: +91-2836-279010 Tel: +91-2836-661111 India Dist Kutch,Gujarat-370110, Village Versamedi,Tal.Anjar, “Welspun City”, Registered Office Audit Committee Ms. DipaliGoenka Mr. RajeshMandawewala Mr. RamGopalSharma Corporate SocialResponsibilityCommittee Auditors Mr. ArunTodarwal Mr. ApurbaKumarDasgupta Mr. RamGopalSharma Nomination andRemunerationCommittee Price WaterhouseCharteredAccountantsLLP Mr. RajeshMandawewala Mr. BalkrishanGoenka Mr. ApurbaKumarDasgupta Share TranferandInvestorGrievanceCommittee Mr. ArunTodarwal Mr. RamGopalSharma Mr. ApurbaKumarDasgupta

2) 1) Works

Fax: (0260)2437088 Tel: (0260)2437437, Gujarat -396191,INDIA Vapi, Dist.Valsad, Survey No.76,VillageMorai, Fax: +91-2836-279010 Tel: +91-2836-661111 India Dist Kutch,Gujarat-370110, Versamedi, Tal. Anjar, Village “Welspun City”,

* NotamemberoftheBoard Welspun USA.Inc President &CEO Barry Leonard Vice President,Marketing Mr. MukeshSavlani President (Commercial) Mr. SuneelMohnot *Director-Operations, Vapi Mr. A.K.Joshi *Executive Director-Operations,Anjar Mr. AnilChanna Chief FinancialOfficer Mr. AltafJiwani Welspun GlobalBrandsLtd. Managing Director, Welspun IndiaLtd. Executive Director, Ms. DipaliGoenka Managing Director Mr. RajeshMandawewala Key ManagementTeam

Mumbai -400001 Exchange Plaza,BandraKurlaComplex,(E), The NationalStockExchangeofIndiaLtd. Mumbai -400051 Phiroze JeejeebhaoyTowers,DalalStreet, Bombay StockExchangeLtd. securities arelisted Stock exchangeswheretheCompany’s Bankers State BankofPatiala State BankofIndia State BankofHyderabad Punjab NationalBank Oriental BankofCommerce IDBI BankLtd Exim BankLtd. Canara Bank Bank ofIndia Bank ofBaroda Andhra Bank State BankofBikaner&Jaipur

9 Annual Report 2015 Welspun India Ltd. 10 Annual Report 2015 Welspun India Ltd.Ltd BUSINESS RESPONSIBLE COMMITMENT TO

In thisreport,wediscussour responsible businessactivitiesandprogressthrough2014-15. inputs andexpectations. insights, for their our stakeholders with engage actively efforts, we sustainability our designing While people. empower In thisreport,wediscussour responsible businessactivitiesandprogressthrough2014-15. and create opportunities performance, foster economic for society.Weprotecttheenvironment, value create shared stakeholders fortheirinsights, inputsandexpectations. impact and to makeapositive We aim sustainability. with synonymous been always have practices business Welspun’s opportunities and empower people.Whiledesigningoursustainabilityefforts, we activelyengagewithour technology, andpartnershipstocreatepositiveimpact. create performance, foster economic for society.Weprotecttheenvironment, value and createshared impact We useour expertise, our associates,communityandtheenvironment. whichinclude and toourstakeholders, business We aimtomakeapositive with sustainability. been synonymous practices havealways business Welspun’s that aremostimportanttoour issues process toprioritize strategy usesastructured assessment business Our responsible environment. Weuseourexpertise,technology,andpartnerships tocreatepositiveimpact. the environmentandcommunitiesthatweareapartof. important to our businessandtostakeholders,whichincludeassociates, communityandthe towards acting responsibly lives, while only whenweaddvaluetoindividuals’ that long-termsuccessisachieved We believe business strategyusesastructuredassessmentprocesstoprioritizeissuesthat are most Our responsible we dobusiness,andhasprovenadifferentiating elementinoursuccessstory. responsibly towardstheenvironmentandcommunities thatweareapartof. At Welspun, building a responsible business is a central and core value. that We long-term successis believe achieved onlywhenwe lives, whileacting add valueto individuals’ It defines and guides the way the waywedobusiness,andhasprovenadifferentiating elementinoursuccessstory. At Welspun, building a responsible business is a central and core value. It defines and guides 11 Annual Report 2015 Welspun India Ltd.Ltd 12 Annual Report 2015 Welspun India Ltd. COMMUNITY economy andcreatingancillary livelihoodopportunities. revive thelocal with employment, helping local population the by providing ‘Model Village’ We aimtobuildasustainable Welspun FoundationforHealthandKnowledge(WFHK). of the the banner taken upunder been have of projects Empowerment, Environment& Health; wherea number our CorporateSocialValue(CSV) initiatives: Education, of principles have become theguiding three Eswhich in the The Welspungroup’ssocialvisionisenshrined those ofthefuture. ofthepresentwith theneeds balances which development, sustainable with along progress commitment towardswider,social all-round In everything that we do, there is a strong Developing local communities workers andschoolprincipals, amongothers. leaders, Asha village makers likeSarpanch, decision key committee comprising with avillage in coordination Starting withVersamedivillage,thisplanwillbeexecuted library. systems andamobile management Fi, garbage systems, announcement CCTV cameras,publicWi- with solarpanelsfor 24*7 electricity, public equipped be will Asmartvillage into 25smartvillages. villages As part of our 2020vision,weplanto convert the model Smart Village Empowerment, EnvironmentandHealth. in theareasofEducation, initiatives we haveundertaken villages. Sofar we havecreated1modelvillagewhere create 20model to help areas ofimprovement identify a needassessmentstudyto In 2014,weconducted Model Village Fa mily W Balwadi eaving thethreadsoflie Muncipal school EMPOWERMENT ENVIRONMENT WOMEN EMPOWERMENTCENTER EDUCA Health &sanitation Vidya Mandir Village Model TION V ocational Centre the soleearner. tradition, whiletakingcareof her familyasa women onthedyingartsofalandrichwith of mentors thenextgeneration Raniben W elspun IndiaLimited Adult education 13 Annual Report 2015 Welspun India Ltd. 14 Annual Report 2015 Welspun India Ltd. women acrosscommunitiesinAnjarthroughthismodel. earnings of the beneficiaries. Our endeavour is to empower individual toincrease working also while beneficiaries, of the number increase Going forward,weaimtoannually • • • training, andworkopportunities. encompasses needsanalysis,vocational that approach a 360-degree adopted have of women.AtWelspun,we empowerment we havefocusedour attention onthe and movetowardsgrowthprosperity, to sustainthemselves to be able For families 1. Empowerment Women Empowerment Programme Welspun’sImpact Of Work opportunities: Vocational training: analysis: Needs textile facilities. possible, wealsoofferemploymenttothesewomenatour work orders to ensure sustainable earnings. Whenever training, weendeavourtoprovideourtraineeswithconsistent to learnandlookforopportunitiesupliftthemselves. around our facilities, toidentify needy women with an aptitude monitored anddailyguidanceisprovidedtothewomen. is efficiency and quality set, are targets wherein enterprise are run by the Welspun CSR team as a professional skills such assewingandgarmentmaking.Thesecentres where we provide these women with training in vocational We conduct surveys in the communities We conductsurveysinthecommunities On completion of their vocational On completionoftheirvocational We set up community centres We setupcommunitycentres Rags toRiches SPUN: ThreadswithaSoul and Sustainabilityare: The InitiativespromotingWomenEmpowerment accessories withatrulyglocalappeal. as sets aswell linen rugs, table as decorativepillows, such furnishings andsustainable beautiful contemporary, of little shredsofmaterialhasresultedinacollection while reusingandrecyclingwaste. Innovative useof for women employment at onceprovides initiative Riches to By creatingproductsoutofremnantfabric,theRags and recycling. provides employmentfor women whichpropagates reuse products outoffactoryfabricscraps,itsimultaneously on avirtuouscycle: creating based Rags toRichesisamodel empowering women. to preserveourheritage,while momentum andhelping gaining centres, theSpunProjectisrapidly vocational at ourcommunity of women participation With increasing to ‘TheSpunProject’. coupled withour focus on empoweringwomen,gaverise inspiration. She islife. She isan She isamother. She isabreadwinner. takes oninlife,whileneverlosing hersmile. that awoman into themanyfacetsandchallenges a glimpse provides The book to beempowered. forward a compilationofreallifestories ofwomenwhocame The commemorativecoffee table book,‘SheisLife’ inhabitants andrekindlingtheirhopesdreams. became twiceas much focusedonrehabilitating the community activities region in2001,Welspun’s struck that earthquake devastating a After sufficiency. and self- of pride,dignity their sense thus renewing to many, livelihood and training of Kutch,providing Rann of theGreat women known of thelittle lives change activities inAnjarhashelped empowerment Welspun’s ‘SHE ISLIFE’ minimum income for each beneficiary ofRs.20,000permonth. minimum incomeforeachbeneficiary associates. Specifically, bytheyear2020,wewillensure anaverage Our aimistoincrease forallWelspun theaverageearnings traditional arts andcrafts, traditional Our passionforpreserving heritage. fabric of India’s richcultural art formsthatmakeupthe Gujarat aresomeofthe and themirrorworkof Kantha stitchingtechnique the printing, block intricate and patchwork, applique Kutchhi weaving, Bhujodi Mashroo, KalaCotton&

15 Annual Report 2015 Welspun India Ltd. 16 Annual Report 2015 Welspun India Ltd. • • Our baselinestudyonthesituation revealedthat: level education. for secondary level, whichbringsupuniquechallenges at theprimary 2015 was10% rate in class VIII,thedropout retain themtill students and to all education to provide able report alsostatesthatalthoughtheseprimaryschoolsare Their primary education. almost 80%ofthemproviding and Administration,Anjarhasa total of 156 schools,with Education UniversityforPlanning According totheNational 1. Children’s‘QualityEducationProgramme’ to empowerfuturegenerations. our educationfocusedprogrammes,weaim have accesstoqualityeducation.Through the rightto child every underprivileged gives The RighttoEducation(RTE)Act of 2009 2. EDUCA was 8%inthe migrating community. and VIII; to I classes across 3% was rate dropout The their learninglevelsinreading, writingandmathematics. meet not did VIII to I classes in students of 60% Over TION act as an EDU leader, working in co-ordination with the inco-ordination act asanEDU leader,working to from these 14villages wasappointed A localvolunteer benefitting 83teachersand 3,844 students. Khamra), Vidi, Valadiya,Indraprasth, Kharapasvariya, Nagalpar, Varsamedi, Veera,VidiBaug, Sinugra, Shinai, from (Ajapar,Bhadreshwar,Kumbharia, 14 villages schools out to18Government we reached 2013-14, During using pre-andpost-programmetesting. from classesVthroughVIII. The impactwasmeasured 28 teachersand584 students impacted positively which and Bhadreshwar, in Varsamedi, NewDudhai schools Government ofGujarat.Weworkedwith3government Programme’ at Anjar incloseassociationwiththe the ‘QualityEducation Welspun initiated In 2012, • • out ofschool. to themdropiing leading to gethomeusethefacilities, to unsanitary conditions,whilegirlstudentshadto wait leading next to theschools space many usedtheopen Non-functional toilets created hardships for the students; Monitoring Committees). oftheSMCs(School leave earlywithouttheknowledge 80% of teachers were irregular; would report late, would Welspun currently 20 supports aim ofimproving thequalityof teachers andproviding smart shown a51%improvement in government schoolsinAnjar,government learning optionstostudents. learning to1100 government schools to1100 government in theAnjarvicinity, withthe Our dedicatedefforts have Gujarat byengagingpara Our 5yearplanincludes expansion andoutreach students’ scores. education. Adult literacyclassesforwomen Balwadis. these at imparted education basic the from benefit children A totalof170 Maharashtra. Vapi, GujaratandPalghar, and in Anjar in theworkers colonies Welspun runs4Balwadis 2. Balwadis education authorities. by the acknowledged and appreciated well This hasbeen capacity ofweakerstudents. in thelearning improvement teachers,therehasbeena 51% with the government by over26parateachersworking classes conducted the normalcurriculumistaughtinvisualformat. Through in over20schools,wherein class programmeimplemented responsetothesmart We havereceivedaphenomenal sustaining initiative. entrusted to ensure day-to-day functioning,makingit a self- are resources. Thereafter,respectivecommunitygroups a period of three years,to equip themwithnecessary for eachschool with closely we work that defines design extend ourreachto 1100 schools inKutch. The programme to plan we 2020, by years, five next the of course the Over learning levels. student attendanceand and engaging,whichimproved schools. Theregularcurriculumwasmademorepractical from this ‘SMART Classes’ wereimplementedacrossthe 20 activities. Apart students andalsoconductextra-curricular weak for coachingacademically They areresponsible These teacherssubstitutedforthosewhowereabsent. Welspun Foundationfor (WFHK). Health andKnowledge of the VIII. onthepayroll 26 para-teacherswereappointed 5,146studentsfrom villages, encompassing classes I to our reachto 20schoolsin15 weexpanded In 2014-15, the momentumofgrowth. were conductedona monthly basiswithaviewto monitor Reviews in theschools. further improvements introduce to monitoractivities,identify gapsand Panchayats local Sports activityatWelspunVidyaMandir plumbing, basicengineeringand others. include tailoring,electricalservicing, welding,carpentry, will The curriculum village. Ratnal in school in asecondary Vocational trainingwillbeprovided toclassIX and X students 5. Lendahand to charity. are donated and fundscollected in art&craftexhibitions; etc. Theyalsoparticipate visit oldagehomes,orphanages, to gettheopportunity children wherein activities service community organizes programme, theschoolregularly awareness and welfare As partofthecommunity 1,500 studentsandfocusesontheirholisticdevelopment. to over education quality It currently provides curriculum. classes uptoclassXII and followstheCBSEacademic Welspun hasalsoset up a‘VidyaMandir’at Anjar that runs 4. WelspunVidyaMandir provide basicliteracytoapproximately90women. to in twovillages, three classeswereconducted In 2013-14, We also runanadultliteracyprogrammefor women inAnjar. 3. AdultLiteracyProgramme Kids atBalwadi 17 Annual Report 2015 Welspun India Ltd. 18 Annual Report 2015 Welspun India Ltd. mobile healthvans. of health campsandprovision organizing water, drinking of purification include realm community health.Our initiatives inthis Welspun iscommittedto promote andprotect 3. HEALTH healthcare services. To cater to this growing need, we need, services. Tocater tothisgrowing healthcare free andeasyaccesstoprimary Welspun aimstoprovide 2. MobileHealthVans Centres. and HIV/AIDS in the where wehaveourCSR 20 villages flu swine as such pandemics potential about awareness and checkingongrowthrates.Further, we workedto create BMI(BodyMassIndex) bycalculating from thesevillages children school among asses casesofmalnourishment We conducted camps for identification of blood groups and children. in to assess levelsofmalnourishment in thesevillages, schools checks atthegovernment andweight and height camps group blood schools. Weconducted government of and principals Sarpanch and requestsfromthevillage based onneedassessments These campswereorganized community health. Shinogra, of Anjar,topromote Chandrani) and Kharapaswariya Ajapar, (Versamedi, villages surrounding five in conducted 10 campswere the year2014-15, During 1. HealthCamps Ambulance andHealthvan • • • This projectwasdevelopedinphases: being mannedbyadoctorandparamedic. with eachvan with medicines, vans areequipped mobile Anjar inassociationwiththeWockhardtFoundation.The our MobileHealth VanServicesinMumbaiand initiated Health CareCentre through anextended outreachto12newcommunities. individuals 50,000 over Benefitted (2013-14): 3 Phase diseases andotherseasonal diseases. cardiovascular healthcare, immunization, mother &child individuals aspects like and varioushealth healthcare preventive 25,797 Benefitted from There was 6 communities. a higheremphasison (2012-13): 2 Phase communities. Phase 1 (2011-12): Benefitted 15,532 individuals from 6 • 2012 we installed a 500lph RO plantinKunta,Vapiwhich a 500lph 2012 weinstalled in our facilities, around water forthe community drinking Taking cognizanceof the urgent needfor safe andhygienic World HealthOrganization(WHO). the by specified limits permissible beyond well values pH of the with veryhigh contaminated, highly were water sources amajority that confirmed Gujarat, of State Indian Anjar, inthe and near Vapi in villages A surveyconducted 3. Purificationofdrinkingwater 20 villages. Services Van in people 50,000 to approximately services healthcare Health Mobile were launchedinAnjar,whichprovidedfreeprimary (2014-15): 4 Phase drinking watertoover10,000 in Vapi andAnjarinGujarat, RO waterpurificationplants each withacapacityof500 diseases, wehavesetup5 litres/hour, toprovide clean To prevent waterborne families. RO waterplant Health Camps that arespearheadedbyourheadquarters inMumbai. victims ofnaturalcalamitiesare someoftheotherinitiatives No TobaccoDay,drives andreliefoperationsfor donation drives, World clean-up Day, beach of WorldEnvironment camps, celebration donation stalls, blood NGO exhibition 4. Otherinitiatives our facilities,wherevertheneedexists. around plants to installadditional plants atAnjar.Weplan In 2014, weinstalledanROplant at Vapi andthreeRO in theneighbouringregions. to has madepotabledrinkingwater 6,200 people available 19 Annual Report 2015 Welspun India Ltd. 20 Annual Report 2015 Welspun India Ltd. ENVIRONMENT Pledging our commitment to environmental conservation, we aimtobecomeacarbon neutral organizationbythe year 2020. natural resources. and conserve resource optimization of ouractivities,enable areas to continue to ensure effectiveness identify additional into ouroperations;and steadily imbibedsustainability environment intopractice,inreallifesituations.We have our locations,puttingintent the of safeguarding across policies We haveimplementedenvironmental environmental footprint. our reduce thereby and our impactontheenvironment that reduce Our aimistocontinuallyidentifyopportunities environment forfuturegenerations. and toprotectthe sustainability to ensureenvironmental our beliefthatweneedtomaketherightchoicestoday, stems from programme management Our environmental 1. EnvironmentalManagement the environmentinallitsoperations. in protecting is vigilant our company ensures global environmentalmanagementsystem in allofourbusinessactivities.Our leadership is committedtoenvironmental Welspun Amongst numerous benefits, biodiversity reduces health reduces biodiversity benefits, numerous Amongst Biodiversity stakeholders to plant trees at our facilities duringtheirvisits. our by inviting about theimportanceoftree planting survival rateofourplantation. Wealsospreadawareness the monitor and our operations belt inandaround green teamstoensurethat we maintaina We havededicated trees. more than 229,654 planted To date, wehave our facilities. treeplantingat all we undertake impact onbiodiversity, in designatedindustrialareasandbydesignhaveminimal are located at Anjar,VapiandDahej our facilities Although Tree plantation to reducingthecarbonfootprintinregion. contributes nurture thesaplingsintheircourtyards,which the to The villagers. villagers areencouraged plant and started acampaigntogivevegetableandfruitsaplings areas. Over and abovethat and surrounding we have aim toplantmorethan25000by2016inallourlocations we morethan229,654trees.Additionally We haveplanted Carbon neutrality During the next fiscal, we plan to extend this initiative to more villages. this initiative toextend plan we fiscal, next the During these threevillages. within Anganwadis and 3 schools impactover100families, topositively is envisioned initiative This and nurturethesesaplings. community willmaintain and plants The local seeds wereplanted. 60 packetsofvegetable flowering 225 plants, bearing fruit 180 Anjar. local & 2014 at Satapar villagesof Versamedi, Kharapaswaria within self-sufficiency March in undertaken were drives Biodiversity communities. promote to methodology is aviable and pollution; by environmental posed hazards production of bricks from fly ash generated by our power our by generated ash fly from bricks of production is the of wastefromouroperations of reuse An example operations. of wastegeneratedfromour Boards (SPCB),fordisposal Control StatePollution to therulesofrespective channels ofdisposal.Weadhere directed toauthorized and segregation with appropriate of wasteisexecuted possible reuseas alternate materials.We ensure disposal its evaluate and our operations,focusonwastereduction monitor theamountofwastegeneratedby We continually 2. WasteManagement the importance ofenvironmentalthe importance surrounding communitiesfocus in Anjarandare expandingthis We haveplanted229,654trees on increasing thegreen cover green efforttovillagesaround and spreading awareness on our areas ofoperations.Our eco-supportive efforts inthe eco-supportive sustainability. Anjar CityEnvirons 21 Annual Report 2015 Welspun India Ltd. 22 Annual Report 2015 Welspun India Ltd. We alsorecycle wastewater provide asignificantamount from ouroperationsinAnjar storage capacityof3billion tonnes ofwater. Thishelps of fresh watertothelocal harvesting facilitatedby and Vapi andreuse the We outrainwater carry 2 rainwaterharvesting ponds inAnjarwitha population. output. Tree plantationdrive Rain water harvesting ponds Rain waterharvestingponds Paper andplasticrecycling at AnjartherebyreducingtheconsumptionofLPG. fuels thestovesinourcanteens plant. Thegasgenerated and gardens;wet waste isprocessedat our captivebiogas recycle wet waste generatedfrom our kitchen,canteens we landfills, garbage on impact our reduce to view a With Biogas generation on freshwater. the dependency reducing water generated,thusdrastically which translatesto 40 millionlitresperdayof recycled of half amillion population have acombined These regions Adipur andAnjar. areasofGandhidham, the neighbouring from Treatment Plant(STP)torecycledomesticsewage a Sewage We areintheprocessofcommissioning Sewage TreatmentProject extent possible, consequently lessening ourfreshwater extent possible, consequently to themaximum recycling focus on times. Wealso at all is minimized water usage efforts toensure taken special we have processes. Toreduceourwater consumption, is intrinsictoourmanufacturing Fresh waterutilisation consume lesswater,thereby benefitting ourconsumers. products that and solutionsandhavedesigned technologies Taking astepahead,wehaveadoptedinnovative patterns. us understanddemand helps which consumption, our water to monitor We haveinstitutedmechanisms water weconsume. reduce thequantityoffresh operations, weconsciously rainwater harvestingandoptimaluseof water inour of measuressuchasrecycling, Through implementation especially forourtextilebusinessvertical(WIL). resource for our operations, Water is anindispensable 3. WaterManagement SHG. reduces waste, but also helpsempowerwomenfrom the felled forpaperproduction,and number oftreesbeing the about us stayconscious helps not only This initiative of virginpaper. which areusedinourtrainingrooms,thusreducingtheuse Waste paper from our offices is also recycled into notepads Help Group(SHG)–StreeMuktiSanghatana,forrecycling. used landfills, into Self women’s bottles/ PECbottlesaresenttoalocal plastic going waste reducing to view a With further reducetheconsumptionofvirgincotton. waste cottonfromourtextileprocesses,to salvageable touse.Wealsoreuse putting wastefromoursurroundings ourplants, cuttings surrounding mixed intocement, thus as analternativetosand,weutilizethewastefromstone walls. Additionally, boundary and tobuild worker colonies, forconstructionofour plant. Thesebricksareutilized Bio gasplant we areresponsiblefor. imparting 100%sanitationwithinallthecommunitiesthat target of we havealong-term community development, of model forward, aspartofour‘3E’ more toilets.Going is to construct2,500 2 goal our Phase In 2015-16, 2014-15. during prompted ustoconstruct1,060toiletsin8villages A needs assessmentin15communitiesGujarat baseline 4. Sanitation the villagerstoaccesswateronadailybasis. water connectionhasbeenprovidedto all homesenabling constructed at Versamedi villagefor all thevillagers.A tanks arebeing 5 Lakhlitrecapacityunderground Water Tanks plants. plate & pipe and textile our from effluents processes Anjar Our captiveWastewaterRecoveryPlantat consumption. Community toilets 23 Annual Report 2015 Welspun India Ltd. 24 Annual Report 2015 Welspun India Ltd. DEVELOPMENT EMPLOYEE programme named ‘TABLET’, anacronymfor‘takeabreak, named programme We have therefore institutedanemployee engagement productive. and efficient effective, remain employees our that ensure to balance, work-life in believers firm are We 2. Employeeengagement excellence throughlearningand development. of their jobfunctions,thusreinforcinganenvironment resources essentialto perform skills trainingandproviding by imparting their workforce withrequisite engagement standardsofemployee Welspun pursuesthehighest 1. Learninganddevelopment culture. excel, areintrinsicto Welspun’s business environment that employeesto encourages & safetyandcreatingawork wellbeing employees’ ensuring Respect forindividuals, vital roleinensuringour long-term success. We acknowledge that our peopleplaya FOR SUSTAINEDGROWTH EMPLOYEE DEVELOPMENT, OUR FORMULA

as peroureffortto integrate by 5%inthenextfew years other disabilitiesinourVapi speaking impairments and speaking impairments aim to further increaseaim tofurther the them intothemainstream. disabled employeecount As oftoday, wehave200 employees withhearing, and Anjarlocations.We Manav VikasKendraTraining encourage self-development. and relations interpersonal culture,develop the industrial impart thenecessaryskillstoperformtheirjobs,inculcate technical trainingtoourworkforceandexecutives, We design and provide behavioural,functionaland perform highprecisiontechnicaljobsefficiently. employees with technical trainingthat enables them to efforts, we provideour As apartofourskilldevelopment 4. ManavVikasKendraCentreforSkillTraining are appointedateachlocation. safety committees workplace, an accident-free maintain To for ouremployees. conduct healthcheck-ups routinely etc. Occupational HealthCentresat our plantlocations noise- like hazards respiratory tractdiseases, disability, hearing induced occupational specific for measure asaprecautionary protective equipment) PPEs (personal necessary onourworkforce.Weprovide every employee thehealthandsafetyof We remaincommittedtoensuring 3. Health&Safety employees andtheirfamilies. Day, sportsevents,etc.forour as ‘KidsFiesta’,Women’s events such and engaging a hostofinteractive organised of ‘TABLET’,we the initiative ourselves’.Under let’s enjoy “work from home” employment options.Further to that, we flexible with women trained provide also We plant. our at CSR centres atoureight over 700women employed and we havetrained on priority. Inaddition, accommodation couples married we provide working them tocontinue to leavetheirjobsaftergetting married.Toencourage Anjarand our at Vapi plantsarewomenanditisfairlycommonforthem our employees of section significant A 7. WomenEmployment influencing centricity, skills, relationmanagementanddrivechangemanagement. customer and engagement better intelligence, emotional thinking, executionexcellence, like strategic Academy thatcomprisesmodules Leadership we runa the LDPprogram, roles. Under top management whohavethepotentialtoascend for theemployees planning succession a strong develop and organisation talentfromwithinour We arecommittedtonurturing 6. LeadershipDevelopment roles anddevelopleadershipskills. gender about awareness create finance, personal about skills,buildknowledge communication problems, enhance common health around awareness workforce tobuild training programme forthe designed This isaspecially 5. SWASTIFoundation employability, positivelyimpactingtheircommunity. empower themwithskillstrainingandworkshopsforenhanced locations, weplantoincrease thatby30%inthefuture, and With 2541womenoutofover18,000employeesacross our and sensitizedtowardtheneedsoftheseemployees. employees. Allstaff members are trained insignlanguage with other them tocommunicate to enable a notepad and they aregivenaspecialpouchwithwhistle employees, impaired and speech for hearing to providingspecialtraining needs toover5%.Inaddition with special people employing Anjar plants, we furtheraimtoincreasetheproportionof at ourVapiand employed already With over200people 8. Employingpeoplewithspecialneeds encouraging themtocontinuewithhigherstudies. More so,wehavesponsored55girlsataourhostelinVapi, Vapi. and setupinAnjar has been hostel A specialgirls’ 30% inthecomingfewyears. aim to increase thewomenemployeesat our locationsto Employee EngagementatHO military veterans was tobetheemployerofchoice for The objective base inrecruitmentfortheLittle Rock,Arkansasfacility. Welspun partneredwithARVets and thelocalairforce 25 Annual Report 2015 Welspun India Ltd. 26 Annual Report 2015 Welspun India Ltd. ABHIYAN WELSPUN SWACHH flag atthelaunchofSWA Welspun employeesformingtheIndian process waste. and of garbage & disposal segregation for aggregation, unfriendly. Suitable methodsareadopted environmentally potential for reuse & recycling and classify wastethat is Employees arealsotrained toidentifywastethathas its source;hazardouscontent ofwaste,etc. energy & other resources;quantumof waste generatedat employees of water, to reduce-consumption employees encourages influencing and work practices.Theprogramme ethical to undertake methods manufacturing Waste management isclosely linkedwithimproving Waste management campaign, inthespiritwithwhichitisintended. to follow andimplementtheSwachhWelspunAbhiyan drive;andcommit andcleanliness in thehousekeeping an oathtoparticipate to take is invited Every Welspunite cascaded toeveryemployeeacrossWelspun’slocations. Safety and Spirit. Training on‘basicconceptsof 7S’ is & Span), Shitsuke(Sustain), Seiketsu (Standardization), (Sorting), Seiton(SystematicArrangement),Seiso(Spic comprises Seiri approach This 7-pronged housekeeping. We ‘7S’asasystematicapproachto have good adopted Housekeeping (iii) GreenWelspun–Treeplantation&carbonemission recycle, reuse&disposal –Reduce, (ii) Wastemanagement (i) Housekeeping–Generalhygieneguidelines&‘7S’ SWA isbeingimplementedunderthreefacets: eventually impactstheecologicalbalanceatlarge. impact, which environmental and reductioninnegative targets, cleanliness approach inwasteminimization, blueprint foracoordinated a comprehensive outlines Launched in2014,theSwachhWelspunAbhiyancampaign efficiency. resource and standardization cleanliness waste prevention, in drivetotakeadvantageofopportunities (SWA), a unique journey-SwachhWelspunAbhiyan on acomplementary started by Modi, wehaveembarked Prime MinisterNarendra India Mission), (Clean Bharat Abhiyan’ ‘Swachh initiative cleanliness In linewiththeGovernmentofIndia’snationwide ECOLOGICAL IMPACT ‘SWACCH WELSPUNABHIYAN’,CREATING Founder WelspunGroup memory ofGopiRamGoenka, the to honor is dedicated The SwachhWelspunAbhiyan the ‘CleanIndiaMission.’ of goal contribute toalarger will community lifestyle,which of Swachh WelspunAbhiyanaspartof their familialand Further, employees areurgedto inculcate the practices Welspun. at workforce strong 25,000 the amongst traction significant momentum andisexperiencing has rapidlygained Abhiyan basis.SwachhWelspun monitor its progress on anon-going to motivatetheworkforce,driveSWA programme and nominated from within the workforce havebeenentrusted andAuditCommittees Implementation Location-centric in name afew. investment devices, to vehicles, fuel-efficient of use the efficient and energy renewable energy of installation focuses onthe reduction of carbon emissionsthrough plantations eachquarter.GreenWelspunalsoactively emphasis ontreeplantation,withatargetof 50,000 This facet of the campaignpromotesanaggressive Green Welspun communities thatweareresponsiblefor. growth forWelspunandthe socio-economic pave thewaytowardssustainable will Abhiyan’, ‘Swachh Welspun initiative and ourunique development & health,employee environment education women empowerment, development, and ourresolveto in community make inroads the stepswehavetakentodate, We believe “Responsibility isthepriceof WELSPUN’S COMMITMENTTO FUTURE GENERATIONS – SirWinstonChurchill greatness” 27 Annual Report 2015 Welspun India Ltd. 28 Annual Report 2015 Welspun India Ltd. Financials: Corporate Directors’ Report Management Discussion Section Financial Consolidated Financials Standalone Financials Governance Report & Analysis 30 156 82 96 47 29 Annual Report 2015 Welspun India Ltd. 30 Annual Report 2015 Welspun India Ltd. ANALYSIS (FY2014-15) DISCUSSION AND MANAGEMENT with lowerdebt. strong and ourbalancesheetremained ofthe flows cash free positive generated we that Inspite annual capex, weensured integration backward ever. best results our financial posting significantly profitability our improved also we integration, our backward more robustbyincreasing only didwemakeouroperationsmuch FY14-15 wasalandmarkyearfor us. Not Managing Director Mr. RajeshMandawewala subsequent developments,informationorevents. statements, onthebasisof any or reviseanyforwardlooking amend, modify topublicly The Companyassumesnoresponsibility events. future of expectations and assumptions certain on based statements are statements.Forward-looking are forward-looking results, financial and expenditures, position, market development, strategy forgrowth,product statements abouttheCompany’s to but notlimited aboutthefuture,including or projections other words of similar meaning. or All statements that address expectations ‘estimates’ ‘will’, ‘projects’, ‘expects’, ‘intends’, like‘plans’, ‘believes’, words ‘anticipates’, of use their by identified be may statements, which forward-looking This reportcontains FORWARD-LOOKING STATEMENTS basis andregroupedreclassifiedwherevernecessary. 31, 2015aswellforthepreviousyearareonaconsolidated unless otherwiseindicated.The numbers for the year endingMarch March 31,2015.AmountsarestatedinIndianRupees ended theyear for operations and position financial Welspun’s covers March31,2015.ThisMD&A the notestheretoforyearended and or “WIL”the“Company”), Ltd (“Welspun” of WelspunIndia Statements Financial with theAuditedConsolidated in conjunction and Analysis(MD&A)shouldberead The ManagementDiscussion economies experiencing slowdown. Whileadvance experiencing economies market with most emerging across economies, divergent and tepid recovery remained economic global In 2014, GLOBAL ECONOMICOVERVIEW developed bythecompany. total revenues of WIL come from the innovative products for. More than30%ofthe and hasapplied it holds which trademarks and patents of number the in reflected is which on innovation sales. TheCompanyhasastrongemphasis ‘Spaces’ and‘Welhome’whichconstitutearound11%of the the World.TheCompanyowns brands suchas‘Christy’, is exportedtovariouscountriesacross its production UK,andEuropeabout95% of like USA, Canada, in keymarkets the World.Welspunhasastrongpresence to itsconsumersfromalmosteverycornerof Solutions Flooring and of hometextileproductsinBath,Bedding range offers awide in Gujarat-India,thecompany facilities for the last three years. With world-class manufacturing continuously the USAbyHomeTextilesTodayMagazine and has been ranked1st in theTop15SupplierGiantsto countries. WIL supplies to 14 of the top 30 globalretailers Textiles withglobalreach,deliveringtomorethan50 Welspun IndiaLimited(WIL) is theGlobalLeaderinHome WELSPUN INDIALTD-BUSINESSOVERVIEW Middle East,EasternEurope and LatinAmerica. ongrowthprospects ofcountriesinthe prices alsoweighed commodity and oil Falling demand. domestic squeezes inflation high as Brazil in continues Contraction sanctions. Western and prices oil to falling due sharply slowed among repair economy The Russian corporations. and households financial and deleveraging on weakened investment demandlostpaceandtherealestatesector as Q1 of2015 and half of2014 over thesecond slowed constraints. InChina,activityhas domestic supply-side and uncertainties externaldemand, political to subdued due to decelerate continue economies Most emerging production havecontracted. exports showimprovement,butretailsalesandindustrial and confidence consumer - 2015 of beginning the in data quarter of 2014, withmixedsignalsfromhigherfrequency final the in moderated Japan in activity of contraction The in the euro aswell depreciation increased banklending. the prices and by lowercrude observed, supported being is months of2015 the early and in Q4of2014 pick-up area, economicconditionsremainweakalthoughsome prospects forexports.IntheEuro could, however,dampen sharp appreciationinthe US dollar inrecentmonths aided up, The marketconditions. housing and labour by improving firming been has growth States, United the In global growth for the outlook remains moderate,heldbackbystill-weakdemand. prices, asset financial in though financial conditions are easy and are being reflected have beensizable.Thus,even currency depreciations and risk spreadshavewidened exporters, however, commodity For markets. financial in volatility heightened have fallentorecordlowsamidst yield, long-termyields for search and appetite risk Reflecting prices. asset other rates and inexchange movements large there havebeen back. Inresponse, pushed havebeen normalisation policy of theUSmonetary the timing market expectationson and unconventionally, countries havebeeneasing,including stances across Monetary policy across economies. demand prices, especiallyof crude oil,seemsto have reallocated and importers. The collapse of commodity international commodity exporters andbetween economies, emerging and advanced between profiles growth divergent markedly but with to bestabilising, activity appears economic Global major economies. buoyant butvolatileinpricingpolicydevelopments markets were Financial to decline. prices continued giving leewayfor easing monetarypolicy.Globalcommodity deflation, inflationary pressures subsided in of key emerging economies risk the to susceptible remained economies 31 Annual Report 2015 Welspun India Ltd. 32 Annual Report 2015 Welspun India Ltd. INDIAN ECONOMY Source: RBI,IMF,WTO of 2015. months in exportstheearly contraction show economies commodity prices.Incomingdataonmost emerging market conditions characterisingglobaldemandandinternational the subdued given in 2015,riskscontinuetotiltdownwards, along withimprovementinglobaloutput pick upmoderately exporters. Eventhoughworldtradegrowthisexpectedto significant, aggravated by weaker activity in some major oil Russia, theEuroareaandJapanonworldtradehasbeen in China, crisis trend.Theimpactofthegrowthslowdown growing byonly3.1percentin2014- well belowthepre- both cyclicalandstructuralfactors, with worldtradevolume by down tobeweighed trade continues The paceofglobal growth stagnation. to forecasts the world over,raisingconcernsof a global adjustments so farhaswarrantedsuccessivedownward sluggish globalrecoveryoverthe course of 2014 and2015 a near-term outlookfor more subdued them. In fact, the output gapsand falling growth potential, whichyields ofpersistentnegative face the addressing challenge economies Emerging crisis. financial global the of effects economies areyet to developed fully recoverfrom the after- slowly, is improving outlook thenear-term Overall, although an aiig rm oe ifain s el asimproved well as growth. andemployment of income,spending perception inflation lower from arising power purchasing gains reflecting consumer 2014, togrowing June since optimism points (CCS) survey confidence room foraccommodation.The ReserveBank’sconsumer aninvestment- to available using led growthstrategyandmonetary policy gearing policy fiscal with 2015-16, in The macroeconomicenvironmentisexpectedto improve 04 to17%in2013-14. India’s exportstoitsGDPhasgrownfrom11.1%in2003- of 26th rankin2008.Inthelastdecade,contribution from has ranked19thbiggestexporterin2013,improving among the top 20biggestexportersin2013and has ranked ata grew USD 50bnin2013.India nearly reaching CAGR of14.4% country the in inflows capital net decade, last to 6%in2012(Source:WorldTradeReport2014).Inthe India’s shareinthe global GDP climbed from 4% in2000s a favouarableinvestmentandtradedestinationglobally. in slowpickup growth. Moreover, India continuesto be However prudent regulatory and fiscal policies have helped setbacks forthecountry. to besomeofthemajor appeared crises financial slowdown domestic economy and nations developed in demand, Slow 2000s. early in achieved growth trajectory after ahigh some moderation experienced has economy of yearstheIndian In thepastcouple setting inforrecovery. inflation pressures could overwhelm the nascent conditions of resurgence The consequent the reversal. hasten even could environment geopolitical activity. Infact,thevolatile signs of oil prices reviving aheadof global economic occasional reverse,given commenced in2012,could which commodity pricecycle, in the ongoing downturn international The restrain growthprospectsiftheymaterialise. could which risks togrowth there aredownside Nevertheless, outlook forthenear-termshouldprovideaboosttogrowth. Large declines in commodity prices and the benign inflation Source :IMFReport,January2015 Fig 1:GDPgrowthacrossregions Source: RBI Source: http://www.oanda.com/currency/historical-rates/ Figure 2:USD–INRexchangerate the pricefluctuationsduringyear. 2 shows Figure to March2015. from Feb2015 range 62-63 the laterpartof Jan 2015.Postthat, the rupeetradedin and reached61levelsin rupee sawmarginalappreciation the 2014.Postthissharpdepreciation in December levels 63.73 on thedowntrendtoreacharound it wascontinuously 2014.It April to 58.22levelsinMay2014.Postthat, appreciated gradually in USDollar the vs. at 59.88 year financial the opened Therupee the USdollar. against depreciating has beenformostpartoftheyear, The IndianRupee FOREIGN EXCHANGE 50 55 60 65 70 2014 Apr -1 0 1 2 3 4 5 6 7 8 9 2014 May USD/INR W ORL 3.3 2014 Jun 2 2.2 GDP GROWTHACROSSREGION 0 D 1 3 0.5 7.8 USA 2014 Jul 5.0 2014 Aug E 3.3 U 2.4 2 ROZ 0 0.8 1 4 2014 Sep 7.4 ONE 5.8 2014 Oct C 3.5 H 3.6 I 2 N 0 1.2 1 A 2014 Nov 5 6.8 6.3 I N 2014 Dec DI A 3.7 3.3 2 2015 Jan 0 1.4 16 6.3 6.5 2015 Feb 2015 Mar Textile &ApparelExporters Figure 3: Key Exporters and Textile andApparel Importers Textile andApparel. of to bethemajorimporters continued as USandEurope such economies developed exporters while to bethemajor economies suchas China andIndiacontinue Developing was US$306bn. wasonaccountoftextiletradewhich the remaining while trade, ClothingorAppareltradewasUS$460bnin2013 2009 levelsatthepeakofeconomiccrisis.Of the total from the 10% a CAGRofnearly This indicates CY2013. Textile andClothingtradehas reached US$766bnin bytheWTO, the global to thedatapublished According GLOBAL TEXTILEINDUSTRYANDTRADE Source :WTO 2014 statisticsofCY2013. Textile &ApparelImporters Bangladesh0.81% Turkey 1.23% India, 4.67% Vietnam 1.41% Bangladesh, 3.31% T urkey, 3.60% Indonesia, 0.79% Pakistan 0.16% Korea 1.58% India 0.51% USA, 2.58% V Japan, 5.27% ietnam, 2.87% 15.86% Others, Russia, 1.66% 14.67% USA Pakistan, 1.81% Kor Canada, 1.80% ea, 1.85% Union, 24.77% Eur Others, 39.22% opean Indonesia, 1.61% China, 3.34% Union, 27.53% European 37.07% China, Figure 4:GlobalTextile&ApparelTrade–US$billion Statistics Source: TechnopakEstimates2014andWTO 2014 in Figure4. breach theUS$1.3trillionmarkbyCY2023asshown overthenextdecadeandisexpectedto of ~5%perannum trade isexpectedtogrowatarate The TextileandClothing Source: WTO2014Statistics&Technopak Source :WTO,2013tradestatisticsfor Textiles Figure 5:India’sshareinworldtextile(non-clothing)trade (Figure 5). over thelastfew years has beenconsistentlyincreasing in CY2008 4.2% was This share CY 2013. of 6.2%in share it isthethirdlargest exporterwitha trade where clothing) and Vietnam).India’spositionis stronger intextiles(non- EU, Turkey,Bangladesh China, share inCY2013(behind In apparel, India is the fifth largest exporter with ~ 4% market trailing Chinabyasignificantmargin. Germany andItalybut largest exporterovertaking second the has become Atacountrylevel,India data forCY2013. 4.7% overallasperWTO market shareofapproximately a EU with and after China 2013 in the World in Apparels has emergedasthethirdlargest exporterof Textiles and source for the global market during the last five years. India significant a as emerged has Industry Textiles Indian The INDIAN TEXTILEINDUSTRY 1, 1, 1, 4 6 8 200 10 12 14 16 18 20 000 4 200 0 0 2 4 6 8 0 0 0 0 0 0 0 0

2 353 2008 000 4.2% Textile

528 2 006 2009 4.3% Textile exports(US$bn)-LHS

586 2 0 07 Apparel 2010

2 614 5.1% 0

08 2 527 Total 0 09 2011 5.2% 2

605 0 10 2012 Market share-RHS 5.4% 2

707 0 12

2 766 0 1 3 2013 6.2%

1,000 2 0 1 8(P)

1,300 2 0 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 23(P) 33 Annual Report 2015 Welspun India Ltd. 34 Annual Report 2015 Welspun India Ltd. Figure 6:WorldCottonBalancesheet–2014-15(InMales480Lb) headwinds. ThebelowtablesummarisesthekeydifferencesbetweenIndia’spositionagainstitscompetitors. Pakistan arefacing and such asChina countries key competing Ontheotherhand, textile scenario. in theglobal changes of structural by anumber in thelastfewyears,driven improving has been position competitive industry’s textile The Indian Source: Gherzi Figure 7:Inputcostcomparisonofkeycountries Source: USDAtatistics Steam (UScent/kg) Raw WaterCost(UScent/m3) Power Rate(UScents/kwh) WORLD COUNTRY • • • • • • India Labour wages(US$/month) Parameters INDIA U.S. CHINA PAKISTAN compliance and laborlaw Better environmental with stablegovernment Democracy Robust ecosystemfortextiles Competitive costs Exporter ofyarn exporter ofcotton largest and 2nd producer Largest STOCK OPENING 101.7 11.5 62.7 2.5 2.5 OUTPUT India 39.57 11.29 China • • • • • • • 1.44 135 Yarn capacityclosures Focus ondomesticconsumption Stricter environmentalcompliance Rising powercosts Wage inflation Yuan appreciation Major importerofcottonandyarn 119.2 16.1 30.5 10.5 Bangladesh 30 IMPORT 29.26 8.13 1.3 87 34.4 1.1 0.8 7.3 Indonesia 0 49.19 CONSUMPTION 1.16 8.51 226 Egypt 10.5 10.48 111 Pakistan • • • • 3.7 1.75 3.49 24 35 226 Compliance issues Geopolitical issues Energy issues Cotton Importer EXPORTS China 53.26 12.29 1.64 328 34.4 10.7 4.2 0.6 0.1 Pakistan 25.67 10.62 ENDING STOCK 1.24 127 Turkey 110.1 30.73 10.24 14.9 839 4.2 2.6 2.1 65 Source: TextileMinistry,WTOStatistics Indian TextileandApparelIndustrySize&Projections – Domestic+Exports(US$billion) Figure 8: ProjectedIndian Textile and Clothing Industry share inworldexportsto~8%fromthecurrentlevelof~5%. take India’s 5%. Thiswould trade growthofaround clothing in thenext 7 yearsascomparedto the worldtextileand in 2013andisexpectedto billion) [email protected]%CAGR bn (~Rs5,885 to beUS$101 Exports) sizeisestimated India’s totaltextileandapparelindustry(Domestic+ Outlook Source :OTEXA ,Dec2014Update. Figure10:USimportsbycountryinCottonTowelsandSheets Textiles market is estimated at around US$45billion,at the Home The global carpets etcusedforhomefurnishings. bed sheets,cases,rugs, top ofthebeds,curtains,pillows The Home Textilessegmentbasicallyincludesterry towels, HOME TEXTILESMARKET US$ bn 100 150 200 250 50 0 2005 17 45 28 2013 101 61 40 Sheets (Cotton) 27% 30% Towels (Cotton) 29% 2009 23% 2009 26% 22% 18% 24% 2020 200 170 80 33% 31% 30% CAGR (2005-2020) 2010 27% 2010 21% Total Domestic Exports 23% 16% 20% 38% 35% 24% 25% 2011 2011 10.3% 10.2% 10.4% 22% 24% 16% 16% 36% 45% in CottonTowelsandSheets. countriesinUSimports shows theshareofkeycompeting 11 and 10 Figure US. Apparels, and Textiles of Office the sheets by CY 2009to47%in2014asperthedatareleased the cotton in Also segment, India’smarket share hasgrownfrom 27% in jump. significant a showing US hasgrownfrom30%inCY2009to~37%2014 countries. TheshareofimportsCottonTowelstothe In theUSmarket,Indiaisbestplacedamongcompeting in thisspace. its marketshareoverthelastfewyears constantly growing and betterthanChinainmanyproducts.Indiahasbeen textiles. In“cotton”HomeTextiles, the shareisevenhigher its sharein 11%, morethandouble textile tradeisaround in home share India’s as othercountries. as well China technology to compete withthelargemanufacturersin Textile segmentastheIndianplayershavescaleand The ‘Indiaadvantage’ismostprominentintheHome players apartfromthesethreecountries. enjoy duty-freestatusintotheregion,arealsoimportant some other players such as Turkey and Bangladesh,which 85% of home textileexportsintothe US market. In Europe, than Pakistan constitutemore and trade. India,China world exporters inthissegment,constitutingmorethan50%ofthe and Pakistanarethebiggest demand. India,China world are USandEurope,eachconstitutingaboutone-thirdof level. Themajorconsumingregionsinthissector wholesale India India 26% 22% 2012 2012 22% 18% 15% 15% China China 36% 47% 26% 2013 24% 2013 Pakistan 23% Pakistan 17% 16% 13% 37% 47% ROW ROW 26% 2014 23% 2014 23% 17% 15% 13% 35 Annual Report 2015 Welspun India Ltd. 36 Annual Report 2015 Welspun India Ltd. WELSPUN OVERVIEW “ globally ontheCSRfront. stores in China. We “Spun” also launched brand “Christy” for “Hygro”inUS.Wealsolaunched a major campaign for “Spaces” in Indiaand Welaunched our productsandinnovations. row. Oneofourkeyfocusareaswasbranding our No:1 in the ranking US for the third yearina in reflected is which innovation, and quality our through position our leadership We maintained ” Welspun IndiaLimited Executive Director Ms. DipaliGoenka this segment. in of terrytowels, the production in undertaken innovation and the product development toleverage Company isable the to thatoftowels, is similar the fabricforbathrobes “wraps”. Since and “shawl” “zipper”, “hood”, as “kimono”, bath robesindifferent stylessuch manufactures Welspun Robes Towels, HYGROetc. productslikeQuickDry Company alsoincludesinnovative bath sheets.The towels, facetowelsand towels, hand a with by WIL beach towels,kitchenbabyhood includes property, hygroscopic capability of quick waterabsorption.Therangeoffered significant have which yarns, cottonorblended Towels aremadeoutof100% Towels BATH: WIL PRODUCTS this segment. rugs in area carpets and on decorative focusing basically is in FY15.TheCompany to therevenues contributing inFY14andhasstarted The carpetfacility was completed Carpets: These comeinvarioussizes,shapesanddesigns. preferences. on consumer depending latex-backed, be can and fiber micro or Bathnylon rugscotton, areof made Rugs FLOORING: shams, decorativepillowsandbolsters. comforters, duvets,coverlets,bedskirts, products include bedding decorative basic comforterswhile and pillows Basic beddingincludesmattress pads, blownandgarneted Basic eddingandDecorative and doesn’tneedironing). Flexifit like (which fits into products the size of the mattress without any wrinkles innovative includes sheet bed The to bedsizesandmattressdepth. different sizes,according The bedsheetsarein cotton silkandeucalyptus. cotton,cottonbamboo, blends andsuchaspolyester The bed sheets are madeout of 100% cotton, various Bed Linenproducts BED: innovation and new product development. The company and newproductdevelopment. innovation A keydifferentiatorforWelspun hasbeenitsfocuson USA andContinentalEurope is alsounderway. East, as Middle such of Christyintogeographies expansion stores in China, which havebeenreceivedwell.Global Christy last twoyears.Duringtheyear, WILalsolaunched the at aCAGRof40%during sales are growing branded The Indian Chopra as itsbrandambassador. Ms. Parineeti media andtelevision.TheCompanyhasalsoappointed across print waslaunched campaign inIndia.The key developmentinthisareawasthelaunchof “Spaces” market the global and “Spaces” in the Indian market. A “Christy” for being ones the mostprominent licences, its share of branded sales.WIL has severalbrandsand to increase took severalinitiatives also The Company America, CentralAmericaandIreland. foothold inLatin the globeandduringyear,itgained production exportedglobally.WILhasaddedclientsacross more than50countriesacrossthe globe with95%of its Today WIL’sglobalreachanddeliveryhasspreadto year toRs.10.5/sh. for thefull Rs. 3/shalreadypaid.Thistakesthedividend of to the interimdividend of Rs.7.5/shinaddition dividend shareholders. For the year, the Board recommended a final to the has recommendedtopay25%ofPATasdividends it by which policy a dividend announced The Company rated byFitchratings. twonotchestoAA-as improved of theCompany Rating after flows cash Term Credit The Long its capexrequirements. meeting free positive generated Company The supply chainwithlesserdependencyonexternalsourcing. its completion.Thenewfacilitywillimprovethecompany’s 70 per cent of its internal yarn requirement from 35% before Company to over three lakh spindles, thereby fulfilling nearly will beinstrumentalintakingthetotalspinningcapacityof India’s largestspinningunitunderoneroof. Thenewfacility year. ThespinningunitinauguratedatAnjar,Gujaratis the during yarn count fine producing for spindles 1,70,000 weaving capacity.TheCompanysuccessfullycommissioned its verticalintegrationprojectforincreasingspinningand During theyear,Companycompletedamajorpartof (HTT) inJanuary2015. by HomeTextilesToday based ontherankingspublished year, consecutive to theUSforthird supplier textile as theNo:1Home its position maintained also Company EBITDA and EBITDA annual margin initshistory.The the year, the its Company recorded highest annualsales, wasalandmarkyearfortheCompany.In FY 2014-15 KEY DEVELOPMENTSINFY2014-15 Figure 11:KeyinnovationofWIL and innovationsinthesupplychain. innovation works onprocess continuously the company listis innovation, detailed product from A more Apart below. figure the in shown sizes). ofmattress a range (fits sheets ‘Flexifit’ and etc.) drying quick absorbent, ultra soft, ‘Hygro®Cotton’(ultra- include Some oftheseinnovations by thecompany. developed/owned technologies innovative from comes sales of FY2015 to itscredit.Currently,~30% as pending) as well granted twelve patents(including has • • • • • awards were: its quality, andCSRinitiatives.Some of innovation the key During theyear, the Companywonnumerousawardsfor space tyingupwithmajorportalsinUS,UKandIndia. It also increased its presence in the global e-commerce The Company gained traction in hospitality business globally. the textileindustryinlastfifteenyears. technology to consumers. This is the first such campaign in was acampaign the patentedHygro®Cotton in theUSAtointroduce launched step, first a As capabilities. innovation tookstepsto brand its theCompany In the year2014-15, • • • • • • • Towels 2014 : TEXPROCIL AWARDSforEXPORTPERFORMANCE 5 SupplierAwardfortheyear2014–Macy’s by Shopper’sStop 2013-14 Category Bath/Furniture Best BrandinBedand Social ValuesbyMacy’s Special award“GlobalCitizenAward”for our Corporate 5 StarVendorawardfortheyear2014byMacy’s Denim & Neosoft® Loftdry® Ecolite SpotStop™ Nanospun™ Hygro® Lycra Towels Cotton • • Sheets/Quilts’ in Made-ups and OtherMade-ups Sheets/Quilts’ inMade-ups Highest Exportsof‘BedLinen/Bed 2 Silver-Second (Overall) andTerryTowels Gold&1 -HighestGlobalExports 1 Special Sheets • • • • • • Cotton Flexifit® StayWhite™ Ever- Best Ever Hygro® Naturals smooth™ Sheet™ Cotton Rugs • • • • • • Reopet™ Permaback™ Resilon® Kushlon™ Drylon® Hygro®Cotton Rugs Rugs Microfiber Top ofBed • • • • • Good Night MaxGrip™ WelLoft SoftShield™ Hygro® Sleep® Cotton

37 Annual Report 2015 Welspun India Ltd. 38 Annual Report 2015 Welspun India Ltd. “FAST” asshowninthefigurebelow: Welspun’s strengthscanbesummarizedintotheacronym status withitscustomersi.e.theretailers. offering. the customer gainastrategicvendor theCompany This hashelped in gaps the fulfill which products, This approachhashelpedthe company developnew consumer ofitsproducts. final the is who customer end the is model this of core The theproductsto and communicating theendconsumer. to promoting product development and research consumer to thetextileindustry,takingupactivitiesrightfrom Welspun hasevolvedacustomer–centricFMCGapproach Welspun’s Strengths For Welspun,the strategywillbetoleverage itsstrength–“FAST”into countries. Tosummarise,the outlook forIndiancottontextiles,especiallyhome continues tobepositive. exports tothese Indian to increase be leveraged could which the SAARCcountries, and Korea with Japan, Agreement) such asJapan,Korea,Australia, SouthAfrica,alsopresenthugepotentialforgrowth.India hassignedanFTA (Free Trade pace. Otherkey markets, reforms gather years aseconomic faster inthecoming to grow is expected economy The Indian Agreement (FTA),ifitgoesthrough,willprovideastrongpush fortextileexportsfromIndiatoEU. India –EUFreeTrade and Turkey.Theproposed of importdutycomparedtootherexporterslikePakistan,Bangladesh power.Indiantextileexportsto in terms Europe aregrowing,despiteadisadvantage spending improve realhousehold in Europeis edging higher,it is expectedto get a further boost from falling oilpricesandthe ECB stimulus, whichwould confidence consumer While highs. multi-year hitting been has confidence consumer while market housing strengthening a data isindicating on itsgrowthtrajectoryinthecomingyear.Newhome-sales isexpectedtocontinue The USeconomy OUTLOOK Quick responsetime (Speed toMarket) Fast for differentpricelevels Best coststructures Affordable D and thecommunity i st Sustainability Caring forthe ri environment b Communication u t Promotion i experience Awesome o Product n and SCM Robust Manufacturing End-Consumer Integrated cost control Quality, and SupplyChain across Products, Tech-oriented Technology Processes leveraged Research and benefits Synergy Development Consumer Products Amazing

Partnership Retailers with HUMAN RESOURCEUPDATE is asbelow: measures with itsmitigation forward going business impact Welspun‘s factors thatcould external The various KEY RISKFACTORS KEY HIGHLIGHTS which havebeenexplainedin thelatterpart. systems andprocesses to improve were alsoundertaken initiatives process, various Apart fromEmployeeDevelopment approach. was felt across businessandtherefore, HR team took up the initiative of bringing upcustomizedemployeedevelopment employee communicationto the nextlevel-EmployeeDevelopment.A initiatives need for various traininganddevelopment the companystartedInternalHRsurveyinitiative.Based onfeedbackreceived,theHRteammovedtheirfocusfrom the same, To ensure requirements. with business expectations employee to align At Welspun,constanteffortsaremade c. b. a. Underpenetrated marketssuchasEurope,India,Japan Underpenetrated productssuchascarpets,filledproducts,bathrobes Underpenetrated channelssuchasBrandedsales,e-commerce,hospitality consumer sentiment environment and Poor economic Increase inInputCosts Labour A Currency movements Competition T Government Policies Change inIndian rade Barriers vailability The ing more women todiversifyitsworkforce. ing morewomen labourretention.Itisalsoactivelyemploy- sing onimproving Secures vocational The continous supply plant the cotton Hedges ships withclients,helpsinreducingcompetitiverisks. and into The Japan. Geographic for thefollowingyear and takesmeasurestominimizeanyadverseimpact. continuouslymonitorsGovenmentpolicies The Company imposed by anyparticularcountry imposed by captive Company newer ’ Company Company innovative at season;

significant a Anjar

significant training

yarn

market diversifiction is s WIL is which products, and trying strategy continuously to ’ portion s regions . fabric; part backward integrationof improve to reduces address to of of and of Company's its reduce such providing their its cotton maintaining providing power export . this as skill impact requirement through Korea, end-to-end 80 MW level costs revenues its of strong and ~75% workforce Australia trade diversification and captive also during expected solutions provides provides relation- barriers focus- power with and the 39 Annual Report 2015 Welspun India Ltd. 40 Annual Report 2015 Welspun India Ltd. the reviewmechanism, lotof new initiatives werestarted Performance ManagementSystem (PMS): To strengthen for theyear. the keyactivities were monthly newsletters in MumbaiMarathonand participation celebration, monthlybirthday Celebrations, Holi Week celebration, Women’s Celebration, Other eventssuchasDiwali were sentforplantvisitalongwiththeirfamilies. locations wasalsocontinued.To motivate thewinners,they Stars scheme (on the scheme)acrossall spot appreciation Star Scheme&ofthe another majorhighlight.Shining was chat session Goenka (ExecutiveDirector),aninformal Town Hallswerecontinued.‘Gup–Shup’ forums likeMonthlyDepartmentalMeeting(MDM)andMini At thedepartmentlevel,communication of theorganization. check’ of skiplevelmeetingswasstartedtoconduct‘health level, process was doneacrosstheGroup.Atindividual of were startedlast common initiatives year. Standardisation the focus was on strengthening the existing initiativeswhich Employee Communication & Engagement:Inthisarea, interviews. to conductbehavioural also trained was member panel The requirement. profile the to capabilities person’s to matchthe introduced Interview were and Behavioural Index test Predictive like for eachrole.Concepts candidate of requirement the behavioral to understand was designed Pro Job profile. right for candidate right of selection ensure and process tomakeitmoreobjective talent acquisition Talent Acquisition: training workshopswerealsoinitiatedforworkerlevel. Skills, BusinessEtiquettesetc. were covered.Behavioural Interpersonal skills, TimeManagement, Skills, Presentation a Personal Brand Management, Negotiation Communication, Office, Head Studio’. VariedrangeofprogramslikeImpactful ‘Corporate the at and through initiated were interventions of learning series executed and launched staff were for supervisory At theplantlevel,programs for thebusiness. competency frameworktosetstandardskillsetrequirement on etc. Teamwiseskilldirectorywasalsoframedbased techniques likeSimulation,RolePlays, Outbound trainings Customized programswerelaunchedwithnewtraining Individual and team member. for each prepared Plan were Development identified were needs training individual, and Team C (third line). To meet the specific needs of each line) B (Second Team line), (first A Team – efficiency and teams of high performers were identified based on the level conducted andbasedonthe feedback, threedifferent psychometric tests requirement of individual, were Employee Development: To understand the training The keyinitiativestakeninHRareaslistedbelow:- Newinitiativesweretakenupinthe withMrs.Dipali drastically reducedgrievancesrelatedtowages. transparent systemwhichisvirtuallyerrorproof,andhas a in creating and leave.Thishashelped their attendance access to been designed.Workershaveprovided For workers, based onSAP SAMAY data has application software. of the usage and maximum to ensuresmoothfunctioning employees fortraining Various sessionswereorganized Manager SelfServiceportalwasalsoamajorhighlight. Launch of across locations. Employee SelfService/ all other have beensuccessfullyimplemented modules Management, andLSO module. Apart from LSO modules, PA, OM, Time Management,Recruitment,Performance life cycleisbeingdonethroughSAP-HR.It includes of employee activities of allHR HR processes,automation in the uniformity andaccuracy HR Automation:Tobring module ofSAPHR. through PMS & GoalSettingwascompleted Evaluation Annual the entirecovering approach, towards apaperless was alsousedto With create awareness. a motiveto move to conduct reviewdiscussions.Printmedium designated were conductedthroughroleplay.Specialrooms which organized were PMS workshops mechanism. to educate employeesontheimportanceofreview integral partofthecontrolmechanism. strong ManagementInformation System which isan them. Welspun hasa for strengthening improvements effectiveness of internal controlssystems and suggests the Boardof Directors activelyreviewstheadequacyand qualified, experienced and independent Audit Committee of Company, industriesandmarkets in whichit operates. The of the understanding objectivity, knowledge, skills, technical the necessary possess collectively who taken byindividuals control hasbeen of thesystemofinternal and monitoring the riskstowhichCompanyisexposed.Theoperation evaluates thenatureandextentof and regularly thoroughly WIL sound, control effectiveand to make itsinternal In order and as a result, the risks it faces are continuously changing. environment inwhichit operates are continuouslyevolving Welspun’s objectives,its and the internal organization andexternal ofinternal lawsandregulations. with applicable reporting, compliance quality operation, efficient and effective India Ltdthattakentogether,facilitate Welspun and otheraspectsof processes, tasks,behaviours The internalcontrolsystemencompassesthepolicies, ADEQUACY INTERNAL CONTROLSYSTEMANDTHEIR *includingone-offimpactofRs.4,738million.duetochange ofdepreciationmethod. Herewith isthecomparativeanalysisofkeyfinancialnumbersFY15ascomparedtoFY14: higher realizationacrossallproducts. Revenues grew21%intheyear,to Rs. 53,025 millionfrom Rs. 43,730 millioninFY14drivenbystrongvolumegrowthand free cashflowsaftermeetingthecapexrequirementsforyear. PAT during theyear.TheoperatingEBITDA margin hasreachedanewlevelat 24% inFY15. The Companyhasgenerated for milestone billion 5 Rs and sales in milestone billion 50 Rs. crossing by history Company’s the in profitability and sales annual highest its recorded has Company the year, this In Company. the for year financial Ever” “Best the was FY14-15 PERFORMANCE –FY15 OF FINANCIAL DISCUSSION EPS (BasicandDilutedbeforeExtraordinaryItem)Rs./Share Net Profit(Loss) EPS (BasicandDilutedafterExtraordinaryItem)Rs./Share Minority’s ShareofProfit/(Loss)inCertainSubsidiaryCompanies Profit beforeextraordinaryitems Taxes Depreciation andamortisationexpense Finance Cost Reported EBIDTA Manufacturing Expenses Operational EBITDA Selling AdministrationandOtherExpenses Employee Cost Cost ofMaterial Other Income Revenue fromOperations(Net) Particulars FY15 13,691 12,742 25,443 53,025 53.76 5,398 53.75 5,443 2,090 3,329 2,829 5,874 4,506 4,460 949 45 100.00% 10.18% 25.82% 10.26% 24.03% 47.98% 11.08% % 3.94% 6.28% 5.34% 0.08% 8.50% 8.41% 1.79% FY14 10,253 22,673 43,730 6,863* 2,352 9,211 4,766 3,680 3,400 1,042 9.19 9.18 (82) 921 838 199 (Rs. inMillion) 100.00% - 0.19% 23.45% 15.69% 21.06% 51.85% 10.90% % 2.11% 1.92% 0.45% 5.38% 8.42% 7.77% 2.38% 41 Annual Report 2015 Welspun India Ltd. 42 Annual Report 2015 Welspun India Ltd. 2. Expenditure 1. REVENUE and othermiscellaneousincomeofRs.181million. Holder Incentive Script of Rs. 509 millionanddividend Income onStatus interest IncomeofRs.259million, of in FY14.Thisconsisted Rs.1,042million as against in FY15, Income fromothersourceswasRs.949million b. year. time highsalesandhascrossedtheRs50billionmarkthis across alltheproducts.TheCompanyhasachieved backed bystrongvolumegrowthandbetterrealization of 21%overFY14(Rs.43,730million).Thisrevenueis Net Sales stood at Rs. 53,025 million in FY15, a growth a. to 8.5%ofsalesinFY15asagainst 8.4%inFY14. a percentageof sales, theexpenseheadhasincreased of higheradvertisingandsales promotionexpenses.As on account was primarily in FY14.Thisincrease million to Rs.3,680 in FY15ascompared million at Rs.4,506 was reported and otherexpenses administration Selling d. the year. salary andalsotheheadcountincreaseduring % lastyeardueto increase intheaveragewagesand to 7.7 to 8.4%ascompared of salesithasincreased compared to Rs. 3,400 millioninFY14. As a percentage in FY15as cost stood at Rs.4,460million Employee c. at 11.1%inFY15ascomparedto10.9%FY14. was expenses As apercentageofsales,manufacturing labour andjobworkchargesofRs.1,324million. 1,187 million,dyes&chemicalsofRs.2,155millionand expense includespower,fuelandwater charges ofRs. compared toRs.4,766millioninFY14.Themanufacturing Manufacturing expensewasatRs.5,874millioninFY15as b. and changeintheproductmix. integration vertical higher to due sales of figure FY14 to as compared 4% has beenlesserbyapproximately of sales,thismaterialcost for FY15.Asapercentage of sales for 48% the year.Thisaccounts during million of rawmaterialsstoodatRs.25,443 Consumption a. Other income Revenue fromOperations(Net) Selling, AdministrationandOtherExpenses Employee Cost Manufacturing Expenses Cost ofMaterials 4. 3. Margins the spinningprojectwascapitalized. time of depreciation Rs. 4,631 million.Duringthe year one- balance method,whichresultedinanadditional method toreducing inFY14fromstraightline policy was primarilyon account of the changeindepreciation FY14. This in million toRs.6,863 as compared end in FY15 was reportedatRs. 3,329 million Depreciation f. weaving duringtheyear. and projects inspinning taken fortheverticalintegration loans captial interest subvention inFY15andadditional of working of discontinuation was onaccount increase corresponding figure in FY14 was Rs. 2,352 million. The The inFY15wasRs.2,829million. expenses Financial e. better profitabilityinFY15. of on account was mainly This improvement million). of Rs.3,274 depreciation for theonetimeadditional of 31stMarch2014.(ThisEPSforFY14isadjusted at theend share to Rs.41.8per per shareascompared at Rs.53.8 item) stood extra-ordinary (before (Basic) 31, 2015 March ending for theyear per Share Earnings and innovativeproducts. improvement inrealisationscontributedbythevalueadded the stronggrowthinrevenues,changeproductmix,and million) representingagrowthof29%YoYonaccount (Adjusted forone-timedepreciationimpactRs3,274 5,398 at Rs. million in FY15 as compared to Rs 4,195 million in FY14 stood interest minority post Tax after Profit b. are atthehighestlevelinhistoryofcompany. Rs. 10,253million.AnnualEBITDAandmargin of figure FY14 the to compared improvement significant The reportedEBITDAinFY15wasRs.13,691million,a integration, better product mix and tighter cost control. Rs. 9,211 million (margin 21%), thanks to higher vertical 12,742 millionresultinginanEBITDAmarginof24%from Operational EBITDAinFY15hasgrown38%toRs. a. EARNINGS PERSHARE(Basic) Depreciation andamortisationexpense Finance Costs PROFIT AFTERTAX EBIDTA 5. TABLE:BALANCESHEET Share Capital Shareholder’s Funds I. EquityandLiabilities Particulars Reserves andSurplus Sub Total Minority Interest Long-term borrowings Non- currentliabilities Deferred taxliabilities(Net) Other LongTermliabilities Long-term provisions Short -termborrowings Current liabilities Trade payables Other currentliabilities Short -termprovisions Sub- Total Total Fixed assets Non-current assets II .Assets Sub-Total Non-current investments Long-term loansandadvances Other non-currentassets Current investments Current assets Inventories Trade receivables Cash andcashequivalents Short-term loansandadvances Other currentassets Sub-Total Total Tangible assets Capital work-in-progress Intangible assets 31-Mar-15 As at 13,314 14,319 15,946 10,034 42,256 56,953 24,442 27,834 11,006 27,557 56,953 1,005 1,009 6,910 6,773 1,564 1,828 1,377 1,405 4,467 3,252 6,097 1,330 378 641 932 170 11 15

31-Mar-14 (Rs. inmillion) As at 10,093 11,097 16,795 11,349 40,271 51,684 18,395 25,609 10,094 23,348 51,684 1,004 6,144 3,559 5,324 1,890 1,232 1,022 4,117 2,332 4,144 2,019 316 434 600 954 436 473 641 43 Annual Report 2015 Welspun India Ltd. 44 Annual Report 2015 Welspun India Ltd. 6. 7. Networth b. at March31,2015standsRs.1,004.6million. The Issued, Subscribed andPaid-upShareCapital as a. are asunder: The detailsof movement invariousheadsof Networth per equityshareinFY14. was 110.94 equity shareasatMarch31,2015,which Book ValueofequitysharesstandsatRs142.53per FY14 end. to 3.94timesin March 31,2015ascompared ending Net salestoworthratiois3.70timesfortheperiod March 31,2014. at March 31,2015asagainstRs. 11,097 millionat Networth of the Company stands at Rs. 14,319 million partly offsetbylowerworkingcapital debt. of drawdownloansforthebackward integrationcapex, million at end-FY14. The increase was mainly on account debt stands at Rs. 20,817 million as against Rs. 18,944 showing an increase of Rs. 558 million. The long-term million as against Rs. 30,293 million at end-FY14, Gross DebtasonMarch31,2015standsatRs.30,851 Loan Funds i. Reserves andSurplus Share Capital v. iv. iii. ii. of FY14atRs.3,235million. end the at figure the with line in is which FY15, Premium accountstandsat Rs. 3,238 millionin Securities Premiumaccount:The account ofhigherprofitabilityduringtheyear. was mainlyon on March31,2014.Thisincrease as from Rs.4,093million was Rs.7,630million 2015 inthe 31, March on as Account Loss Thebalance and Profit account: Loss and Profit Rs. (528)millioninthepreviousyear. against March 2015standsatRs.(567)million as at31 reserve translation exchange Foreign the endofpreviousyear. amounted toRs.1,475million,sameasat 2015 Capital Reserve:Thebalanceasof 31st March, 2014. as at31March to Rs.478million as compared 31st March,2015amountedtoRs.488million as of Reserve: Thebalance Redemption Capital

8. 11. 10. Debtors 9. Inventory year aftermeetingitscapexrequirement. the for cashflows positive generated has Company The increase ofapproximately30%. an showing level at theconsolidated 3,658 million Rs. was figure corresponding the FY14, of end the At company duringtheyear. strong performanceofthe times inFY14)showing EBITDA standsat2.05timesinFY15(2.89 Operational Net Debt/ to 2.40timesinFY14)while compared Net Debtto Equity standsat 1.82 timesinFY15(as Rs. 26,635million. of FY14,thenetdebtwas Attheend investment. liquid million after reducing thecashandbankbalance stands atRs.26,094 Net DebtasonMarch31,2015 in thepreviousyear. stands at Rs. 4,757 millionas against Rs. 3,658 miilion in FY15 of thecompany and cashequivalents Cash FY14. in million to Rs.25,609 in FY15ascompared million Progress standsatRs.27,834 Workin Capital including tangible) and (tangible assets fixed of block Net year. the during project inspinning integration the backward FY14. Thisincreasewasmainlyonaccountofcapexfor at end- to Rs.36,052million at end-FY15ascompared Gross Block of fixed assets stands at Rs. 44,933 million reported at Rs. 4,757 millionas on 31 Investment was and liquid Cash andBankbalances improvement inthereceivables. a marginal to 34daysinFY14endshowing compared The debtorsturnoverdaysis31inFY15as FY14 end. in million to Rs.4,117 as compared million was atRs.4,467 on March31,2015 Debtors Sundry end. to 4.33timesFY14 at 4.82timesinFY15ascompared to 84daysinFY14.TheInventoryturnoverratiostands The inventorydayswas76inFY15ascompared million as compared to Rs. 10,094 millioninFY14end. Inventory asonMarch31,2015stoodatRs.11,006 Fixed Assets Investment Cash and Bank Balancesand Liquid st March 2015. 13. CurrentLiabilities 12. LoansandAdvances 15. Dividend 14. at Rs.10.5pershare. the total dividend has paid of FY15,theCompany end policy, wherethepayoutwillbe25%ofPAT. At the distribution the dividend The Companyhasannounced offset payabledaysinFY15. due to decrease in the inventory andreceivablespartly days as 67 daysinthe against previous yearmainly to 59 cycleforFY15hasdecreased Cash conversion - - - excise etc. balances withtheGovernmentAuthoritieslikecustoms, taxes and advance capital advances,securitydeposits, advances givento related parties, advances include compared to Rs. 5,376 millioninFY14 end. Loansand as on March31,2015stoodatRs.7,474million Loans andadvances(shorttermlongterm)as Cash ConversionCycle shares (includingthedividenddistributiontax). on Equity dividend for theproposed of provision end-FY14. Thisincreasewasmainlyonaccount at end-FY15 ascomparedto Rs. 436 millionat million Provisions stoodatRs.932 Short Term million attheendofFY14. 1,903 millioninFY15 as compared to Rs. 1,410 liabilities stoodatRs. maturities oflongtermborrowings) current Other FY15 vs51daysofnetsalesinFY14. in are at48daysofnetsales end. TradePayables in FY14 end-FY15 ascomparedtoRs.6,144million as of Trade payablesstoodatRs.6,910million (excluding current (excluding the Closingnumbers. on thebasisof are calculated Note :Thedaysoutstanding KEY FINANCIALINDICATORS: Book valuepershare Days -PayableDays) (Inventory Days+Debtors Net OperatingCycle Payable Days Debtor Days Receivables Turnover Inventory Days Inventory TurnoverRatio ROE ROCE -PreTax Current Ratio Net Sales/Worth Net Debt/OpEBITDA Net Debt/Equity Net Debt Net Worth Net Proft(Loss) EBIT EBITDA Revenue Particulars Particulars

(Rs in million except ratios) (Rsinmillion share Rs./ Days Days Days Times Days Times % % Times Times Times Times Rs. Mn Rs. Mn Unit Rs. Mn Rs. Mn Rs. Mn Rs. Mn Unit 142.53 26,094 14,318 10,362 13,691 53,025 As at FY15 2015 42.5% 25.1% Mar- 5,398 31- 12.4 2.35 3.70 2.05 1.82 4.8 59 48 31 76 110.94 26,635 11,097 10,253 43,730 As at FY14 2014 40.0% 24.0% Mar- 3,390 31- 12.7 2.55 3.94 2.89 2.40 921 4.3 67 51 34 84 45 Annual Report 2015 Welspun India Ltd. 46 Annual Report 2015 Welspun India Ltd. REPO DIRECTORS’ T 47 Annual Report 2015 Welspun India Ltd. 48 Annual Report 2015 Welspun India Ltd. 2. 4. 3. 1. Statements forthefinancialyearendedMarch31,2015. the 30thAnnualReportofyourCompanyalongwithAuditedFinancial in presenting Your directorshavepleasure Welspun IndiaLimited The Members, To, REPORT DIRECTORS’ Other Income Revenue fromOperations(Net) Earnings pershare(EPS)(Basic)(Rs.share) Profit afterTaxation(PAT) Tax Expense Profit beforetax(PBT) Depreciation andamortizationexpense Finance Cost Profit beforeInterest,DepreciationandTax Total Revenue Annual ReportforfurtherdetailsofyourCompany’saffairsandperformance. & Analysis’Sectionofthe Discussion of theirinventory.Youmayreferto‘Management replenishment continued incremental of charge regular customers Your Company’s causeduponchangeofmethoddepreciation. of Rs.4,630.96million depreciation after was year previous the for profit Company’s your as comparable not of are figures Company Profit your 2013-14. year the in 16.05% of growth the against as year previous the from 24.82% of growth the the yearasshownaboverecording growthduring from Operations’sawaremarkable Your Company’s‘Revenue Performance andOutlook: Internal controls: Reserves, DividendandDistributionPolicy: Financial Results: dividend payoutratiowillbe25%ofProfitAfterTax(PAT). Policy, underwhich last dayof Dividend book-closure i.e. June 24,2015.Duringtheyear,Boardhasannounced shares onthe who hold to thoseshareholders, be paid will Dividend million. payment ofRs.1,054.73 in totaldividend share. The final dividend, if approved by the shareholders, would result, together with the interim dividend already paid, of Rs.10.50per in totaldividend of Rs.3per share resulting and paidaninterimdividend your Companydeclared 2014-15, FY During million. 753.45 Rs. of outflow cash total in result would report, this of date the till allotted shares equity considering and shareholders the by approved if dividend, The 2014-15. year financial the for share per 7.50 performance duringFY the 2014-15, Board of Directors recommendsfor approval of the members a dividend of Rs. your Company’s Considering Reserves. be carriedtoGeneral million thatanamountofRs.510.14 The Boardproposes March 31, 2015, the Board is of the opinion that your Company hassoundIFCcommensuratewiththenature ofits that yourCompany March 31,2015,theBoardis oftheopinion Act, 2013. Fortheyearended of Section134(5)(e)theCompanies of theexplanation (“IFC”) withinthemeaning operations. YourCompanyhas designedandimplementeda process driven framework for Internal FinancialControl of its complexity and with thesize,scale is commensurate system, which control internal has adequate Your Company

Particulars FY 2014-15

44,076 11,327 45,020 Standalone 50.80 5,101 1,756 6,857 2,663 1,806 944 FY 2013-14 35,312 36,348 1,036 6,227 1,439 8,113 2.98 298 148 446 FY 2014-15 Consolidated 53,025 53,975 13,691 3,329 2,829 53.76 5,443 2,090 7,533 949 (Rs. inMillion) FY 2013-14 43,730 44,772 10,253 1,042 6,863 2,352 1,037 9.19 838 198 5. 7. 6. Subsidiaries: Auditors’ Report: ii. i. Auditors: comment. and thereforedonotcallfor are self-explanatory any read withNotestoAccounts The Auditors’observation in is presented Form AOC-1 annexedto this Report as Annexure - 2. statement financial consolidated the position financial and of each of the subsidiary Companies includedin performance the on report A Annexure 1forthelistofsubsidiaries. your Companywasdissolvedduringtheyear.Referto of Further, KojoCanada,Inc. (Canada), asubsidiary of has become wholly ownedsubsidiary your Company. Zucchi TextilesLimited(“WZTL”)andasaresultWZTL equity sharecapitalofWelspun 50% ofthepaid-up During the year, your Companyacquiredremaining Company’s operation. effect ofyour have amaterial effect ofsuchgapswould the wherever controls and /orimproved new implement and gaps and identify controls existing monitor to continuously in place has aprocess Your Company operating effectivelyandnomaterialweaknessexists. wherein controlsareinplaceand business operations; Secretarial Auditor: Secretarial Auditors: Companies Act,2013. under Section139ofthe an ordinaryresolution passing by remuneration their fix to and Company to ratify their appointment as the Auditors of your are requested Accountants ofIndia.Members by the issued certificate Peer ReviewBoardof the Institute of Chartered valid a holding is LLP tenure. PriceWaterhouseCharteredAccountants for theremaining of yourCompany as theAuditors the to act to continue consent their given have Meeting, by ratification to at everyAnnualGeneral Members ofyourCompany subject Meeting General Annual of the32nd to theconclusion up appointed Chartered AccountantsLLP,whohavebeen Auditors, PriceWaterhouse Your Company’s 2015-16. for theyear Auditor ofyourCompany Secretarial Secretary, asthe Sohoni, PracticingCompany Mr. Uday The BoardofDirectorshasre-appointed 8. i. Share Capital&Listing: rights, sweatequitysharesandESOPs. Issue ofequityshareswithdifferential the year. Your Companydidnotgrantanystock option during during the year to estimate the fair values of options. used assumptions significant including details other for statements financial audited the of 39 Note to share wouldhavebeenlowerbyRe.0.001.Refer have been would year per earnings the basic by Rs.0.15million, lower the for tax after Profit the by Rs.0.15million, higher have been cost would compensation “Black Scholes”model,the employee and accountedtheaforesaidoptionsasper to Rs.17.49peroption.Hadyourcompanyvalued comes options asperthe“BlackScholes”model cost. The fairvalueofthe compensation employee to beaccountedas grant, noamountwasrequired market priceatthetimeof to theclosing equal price at anexercise made the grantswere Since the aforesaidstockoptionsasperSEBIguidelines. value methodfor the valuationandaccountingof equity share.YourCompanyhasadoptedintrinsic did yourCompanyallotanyequityshareassweat differential rightswereissuedbyyourCompany,nor the yearunderreport,noshareswith During 49 Annual Report 2015 Welspun India Ltd. 50 Annual Report 2015 Welspun India Ltd.

the beginningofyear suspense accountlying at outstanding shares in the shareholders and the Aggregate number of No ofShares s r q p o n m l k j i h g f e d c b a ii. Disclosure ofSharesheldinsuspense account Weighted-average fairvaluesofoptions(Rs.) Weighted-average exerciseprice(Rs.) share) Diluted EarningsPerSharepursuanttoissueofsharesonexerciseoption(Rs.per Employee wisedetailsofoptionsgrantedto Total numberofOptionsinforceandexercisableattheendyear Money realizedduringtheyearbyexerciseofOptions Money realizedbyexerciseofOptions Variation oftermsandconditions Exercise Price(Rs.) Options lapsed Total numberofequitysharesarisingasaresultexerciseOptions Options exercisedsinceJune30,2009 Options vested(excludingportionoflapsedOptions)sinceJune30,2009 Options grantedonJune30,2009 Source ofshares(primary,secondaryorcombination) Maximum termofoptionsgranted Vesting requirements Total numberofoptionsapprovedunderESOS Date ofshareholders’approval and Rule12(9)oftheCompanies(ShareCapitalDebentures)Rules,2014aregivenbelow: The particulars required to be disclosed pursuant to the SEBI (Share Based Employee Benefits) Regulations, 2014 exercised onlybysuchemployee. are to above, referred of stockoptions by anemployee on exercise issued rights, inrespect ofequityshares Voting the rightfulowner. The voting rightsonthese sharesshallremainfrozen untilthe shares havebeen claimedby, and transferredto, 140,002 conversions) ofyourCompanyatthetimegrant. exceeding onepercentoftheissuedcapital(excludingoutstandingwarrantsand Employees whoweregrantedoption,duringanyoneyear,equaltoor amounting tofivepercentormoreofoptionsgrantedduringthatyear. Other employeewhoreceivesagrantofoptionsinanyoneyearoption Senior managementpersonnel Key ManagerialPersonnel Holders No of 3,968 the year suspense accountduring for transfer of shares from who approached issuer of shareholders Number No ofShares 341 Holders No of 9 No ofShares account duringtheyear from suspense transferred to whom shares were of shareholders Number 262 Holders No of 17.49 35.60 50.80 NIL NIL NIL NIL 12,600 3,520,840 45,991,640 N.A. 35.60 960,500 1,291,900 1,291,900 1,304,500 2,265,000 Primary 3 yearsfromthedateofvesting 4th anniversary options shallvestoneachof3rdand of 1stand2ndanniversary.30% 20% ofoptionsshallvestoneach 3,654,476 September 28,2005 6 No ofShares the endofyear suspense accountlying at outstanding shares in the shareholders and the Aggregate number of 139,740 Holders No of 3,962 9. and NSE. havebeenpaidtoBSE listing feesfortheyear2015-16 are listedonNSE.Annual of yourCompany Debentures (NSE).TheSecuredNon-Convertible of IndiaLimited Stock Exchange Limited (BSE)andTheNational Exchange Your Company’sequitysharesare listed onBombayStock 11. 10. i. Finance: iii. earnings and outgo: and foreignexchange earningsoutgo: Conservation ofenergy,technology absorption Extractofthe annualreturn: given in the annexure attached herewith as Annexure - 3. given in the annexure attached herewith as Annexure - 3. absorption and foreign exchange on conservation ofenergy,technology information The 2014 isattachedtothisreportasAnnexure-1. Companies (ManagementandAdministration)Rules, return inFormMGT-9ofthe An extractoftheannual iv. iii. ii. Credit Rating: Listing withthe stockexchanges: Deposits: convertible Debentures: Utilisation of proceeds fromissueof non- Non-convertible Debentures: the yearunderreport. of as attheend outstanding was deposit on interest or of principal on account Further, noamount 2013. Act of theChapterVtoCompanies the meaning within anydeposit Your Companyhasnotaccepted utilisation. investments pending in liquid parked been convertible debenturesonMarch31,2015have of non- byissue raised of Rs.1billion Proceeds 15 daysfromdeemeddateofallotmentatpar. any timeaftertheexpiryof the debentures redeem half yearly.YourCompanyhastheoptionto payable of allotmentandcarryinterestrate10.40%p.a. attheendof3yearsdate redeemable billion, to Rs.1 aggregating on March31,2015 debentures During the year, your Companyhasallotted1,000 Company. a Fitchgroup & Research, Ratings by India Stable) of “INDAA-“(Outlook Issuer Rating a Long-Term has beenassigned the year,yourCompany During earnings and outgo is earnings and outgo is 13. 12. BoardofDirectors: CorporateSocialResponsibility(CSR): Report. forms partofthisDirectors’ which attached herewith, Report, Governance intheCorporate been given have of theDirectorsandtheirmeetingsheldduringyear the directorsinter-se.Thedetails between relationship and wife,thereisno Dipali Goenkawhoarehusband that, except for Mr. GoenkaandMs. Balkrishan confirmed is It 2013. Act, Companies the of provisions directors areliabletoretirebyrotationasperthe directors, allother by IDBI Bank andtheindependent and businessstrategy. Except thenomineeappointed management and general legal accounts, finance, as such fields of range a across expertise and experience Non-Executive Directorswithconsiderable and Your Company’sBoardcomprisesofmixExecutive annexed tothisreportasAnnexure4. Rules,2014are Social Responsibility) (Corporate Rule 9oftheCompanies under as required Disclosures ii. i. and re-appointment,ifany: Declaration by an Independent Director(s) Personnel: Changes in Directors and Key Managerial Company met the criteria of independence as Company met the criteriaofindependence directors onthe Boardofyour The independent Annual GeneralMeeting. of theforthcoming in theNotice given are appointed / re- appointed being the directors about Details appointment. for herre- recommended has been eligible, being at the forthcoming AnnualGeneralMeetingand by rotation Goenka isretiring Ms. Dipali Company, of your Act, 2013andtheArticlesofAssociation In accordance withthe provisions of the Companies Chief FinancialOfficer. as role his from relieved was Officer Financial Chief Director and was handlingdualroleof Managing who Mandawewala, Rajesh Mr. which upon Officer Financial as theChief was appointed Mr. AltafJiwani provided byMr.Engineerasadirector. contributions for valuable on recorditsappreciation places of Directors 24 years.TheBoard for almost Engineer hasbeenassociatedwithyourCompany with effectfromApril29,2015.Mr. resigned director,has Mr. Dadi Engineer,independent

51 Annual Report 2015 Welspun India Ltd. 52 Annual Report 2015 Welspun India Ltd. 15. 14. Loans, guaranteesandinvestments Vigil mechanism: iii. under: given, orinvestmentsmade,by yourCompanyisasgiven Information of aggregate amounts ofloans, guarantees access totheAuditCommittee. have beendenied to theAuditCommittee.Nopersonnel may makeprotecteddisclosures director oremployee Mechanism for its directors andemployeesany Policy andVigil Your CompanyhasaWhistleBlower iv. Directors’ Evaluation: Committees oftheBoardDirectors: All resultsweresatisfactory. to theBoard. provided of theBoard,information Chairman, theExecutiveDirectors, the Committees directors, the Board itself,the the independent performance of Committee andBoardevaluated and Remuneration to theBoard.TheNomination the Committees, the Chairman andthe information directors, the Board, evaluated allnon-independent directors information totheBoard.Theindependent of of theBoard,quantity,qualityandtimeliness directors, executiveChairman,Committees directors, non-independent Board, independent was carriedout evaluation of which included the evaluation performance year 2014-15,theannual and contribution during discussions. For the financial of interest; integrityoftheDirector;activeparticipation conflict expertise; and responsibilities specific spent by each of of the directors;accomplishment for questionnaire eachaspectof evaluation viz. time platform, gradedresponsesto a structured enabled process invited,throughIT Board. Theevaluation role withinandeffective functioning of leadership the situations, performing plans, meetingchallenging the vis-à-vis performance the on focus specific with Committee and Remuneration of theNomination process wasledbytheChairman The evaluation status asanindependentdirector. date of this report which mayaffect their respective as onthe in thecircumstances there isnochange 2013 at the timeof their respectiveappointmentand Act, of theCompanies in Section149(6) provided Report. during theyearisgiveninCorporateGovernance Committee and meetings of those committees held Relationship, ShareTransferandInvestorGrievance and RemunerationCommittee,theStakeholders’ Information ontheAuditCommittee,Nomination other subsidiariesofyourCompany. by availed facilities capital were giventosecureworking of yourCompany.Othercorporateguarantees subsidiary Welspun CaptivePowerGenerationLimited(“WCPGL”),a forsettingupofcaptivepowerplantby term loanavailed Guarantee ofRs.90Crorewasgiventosecure Corporate for landrelatedexpenses. which wasutilized Company Anjar SEZ Limited (“WASEZ”), of your 100% subsidiary Loans referredto above have been givento Welspun related parties: 16. Particularsofcontractsorarrangementswith Total Security Guarantees Loans /Receivables Investments Particulars annexed asAnnexure5tothis Report. under required the Companies Act, 2013 aregiven inForm AOC-2 as Disclosures Company. your à-vis or transactionsvis- has anypecuniaryrelationships Directors the of none statements, financial the in listed party transactions sitting fees,related this, directors’ and inthe ordinary courseof business. Exceptfor length Director. Thiscontractwasatarm’s Managing is the director ofyourCompany non-executive Singhal, Mr. ArvindKumar Private Limited,acompanyinwhich services withTechnopakAdvisors professional availing for agreement has enteredintoconsultancy Company website. Your onyourCompany’s Board isuploaded on RelatedParty as approvedbythe Transactions policy from thedateofitsapproval.YourCompany’s its omnibus approvalwhichis valid for 12 months serve mutualinterest.TheAuditCommitteehasgiven of mutualneedandto were enteredintobecause your Companyatlarge.Allrelatedpartytransactions of interest the with conflict potential a have may which persons or otherdesignated Personnel Managerial made by your CompanywithPromoters,Directors,Key transactions party related significant materially no were basis and were inthe ordinary courseof business. There the yearunderreportwereonanarm’slength during that wereenteredinto All relatedpartytransactions Amount (Rs. inMillion) 16,053.25 8,960.83 7,059.51 32.91 -

17. ManagerialRemuneration: @ ratio arenotgiven. the and increase of details Hence, 2013-14. year financial the of part for only director a was Singhal Kumar Arvind Mr. *** are notcomparable. ratio the and increase of details Hence, 2014-15. year financial from commission of payment approved Shareholders ** not comparable. the ratioare and of increase details hence, and 2013-14 year the previous during paid was * Nocommission Name andDesignation Chief FinancialOfficer Mr. AltafJiwani Company Secretary Mr. ShashikantThorat Non-executive Director Mr. ArvindKumarSinghal Non-executive Director Mr. ArunTodarwal Nominee Director Mr. AjaySharma Non-executive Director Mr. RamGopalSharma Non-executive Director Dasgupta Mr. ApurbaKumar Non-executive Director Mr. DadiEngineer Executive Director Ms. DipaliGoenka Managing Director Mr. RajeshMandawewala Chairman Mr. BalkrishanGoenka i. (b) are notgiven. increase of details Hence, 2014-15. year financial the of part for only Officer Financial Chief the was Jiwani Altaf Mr. (a) Remuneration ofManagerialPersonnel)Rules,2014. and (Appointment 5(1) oftheCompanies to Rule pursuant other detailsasrequired and remuneration to themedianemployee’s personnel of eachmanagerial Details oftheratioremuneration The percentage increase in the median remuneration of employees in thefinancialyear2014-15 was 19.88%. medianremuneration ofemployees increase in the The percentage Company for;thefinancialyearisasgivenbelow: of your of theemployees to themedianremuneration ofeachdirector the ratioofremuneration

(Rs. inMillion) Remuneration 22.24 86.13 88.61 71.13 2.75 0.21 0.52 0.11 0.64 0.47 0.44

each director,Chief Officer, Company Financial Officer, remuneration of Secretary inthe Chief Executive The percentage financial year; increase in 474.22** 407.23** 186.11 142.78 18.75 10.00 67.63 45.94 *** @ * remuneration ofthe of eachdirector The ratioofthe to themedian remuneration employees 712.12** 732.63** 588.10* N.A. N.A. 0.91 5.27 3.86 4.26 3.61 *** EBITDA forFY2014- the KeyManagerial Comparison ofthe remuneration of Personnel with 0.02% 0.20% 0.76% 0.78% N.A. N.A. N.A. N.A. N.A. N.A. N.A. 15 53 Annual Report 2015 Welspun India Ltd. 54 Annual Report 2015 Welspun India Ltd. ii. (Rs), Qualification, Previous Company, Nature of Relative ofanyDirector/Manager ofyourCompany. Nature Company, Employment, %OfEquityShares heldinyourCompany, Previous Qualification, (Rs), CTC Age, DOJ,Current Name, Designation, Personnel) Rules,2014areasgivenbelow: ofManagerial (Appointment andRemuneration pursuant to Rule 5(2)oftheCompanies required as of yourCompany of theevery employee Details (k) (j) (i) (h) (g) (f) (e) (d) (c) We affirm that the remuneration is as perthe as Company. is remuneration Policy ofyour and Remuneration Nomination the that affirm We shareholders ofyourCompany. paid commission of 1% of profits as approved by the Director andExecutiveDirectorarebeing Managing Policy. Chairman, Remuneration and Nomination availed bythedirectorsareasper remuneration component of The keyparametersforanyvariable the year2014-15. Chief Financial Officer was employed for only part of Jiwani, Altaf Mr. further, and 2013-14 year financial Director werenotpaidanycommissionduringthe Chairman, ManagingDirectorandExecutive as it isnotcomparable was 419.92%,however The was 17.70%. remuneration percentage increaseinthemanagerial 2014-15 year financial the in personnel other thanthemanagerial employees Average percentageincrease in the salaries of in April,1993i.e.Rs.50pershare. which yourCompanycameoutwiththepublicissue to therateat in comparison as onMarch31,2015) (Rs. 355.75 by 611.50% The sharepriceincreased was 33.79. 2015 was7.00andat of the closing March 31,2014, Price earningsratioasat the closingof March 31, 31, 2014itwasRs.10,104.89million. andasonMarch million 31, 2015wasRs.35,738.61 as onMarch of yourCompany Market Capitalisation Company forthefinancialyear2014-15; Personnel is0.18%ofEBITDA of your Managerial of theKey : Theremuneration of yourCompany the performance against Personnel Managerial of theremunerationKey Comparison performance ofyourCompany. in medianremunerationwaslinewiththe remuneration increasedby19.90%.Increase Median 2014-15. year financial during 39.61% by 24.82% andEBITDA of your Companyincreased by wasincreased The turnoverofyourCompany on itspayrolls. employees permanent 15,631 had Your company iv. iii. 18. Secretarial Audit Report: Secretarial Report attachedtothisDirectors’Report. other directorsisgivenintheCorporateGovernance andpaymentsto remuneration Details ofmanagerial of yourCompany. a subsidiary Limited, Brands Global from Welspun also million as remuneration and commission of 2% of profits Executive Director of your CompanyreceivesRs. 4.8 fromyourCompanyandwhoisthe and commission Goenka,whoisinreceiptofremuneration Ms. Dipali Welspun CorpLimited,Permanent,0,No. BE (Civil), 9,753,324, 54,23.01.2003, – (Civil), Director Permanent, 0,No;AsimChakraborty, Consultancy), 7,500,000, MBA,Mantteva(HR&Strategy 08.02.2012, – HCGA,53, Grover, President 0, No;Sandip B Tech,AlokIndustriesLimited,Permanent, 11,080,000, Sasanka Aich,Director–TextilePark,61,17.07.2013, BE(MECH), MMS,ArvindLimited,Permanent,0,No; Director –TextilePark,54,24.04.2012,17,072,076, Hardikar, Executive Limited, Permanent,0,No;Milind BSc., MBA (PROD/MKTG/ MGMT), Ispat Industries 7,234,029, – IT,49,09.09.2009, Vice President Senior Nimbargi, 0, No;Anil Permanent, Limited, Laboratories BSC(ENGG) Mechanical & PGDBM (XLRI), Ranbaxy Prasad, Director–IT, 57, 20.07.2009,20,000,000, 0.00No;Mukund CA, -,Permanent, 88,613,458, Director ,53,01.12.1985, Managing Mandawewala, B.TECH, Donear,Permanent,0,No;Rajesh Director –Operations,55,02.07.2013,14,300,000, S.Kumars, Permanent,0,No;AshokKumarJoshi, BE, B.Tech,MBA,PGDM, 66, 03.10.2014,10,660,000, 0, No;AnilChanna,ExecutiveDirector–Operations, 02.02.2015, 22,400,000, B.TECH,MMS, RPG Group, Permanent, 48, Officer, Financial Chief Jiwani, Altaf SEL ManufecturingCompanyLtd., Permanent, 0, No; – Projects,46,23.05.2014,7,200,000,PGDM, B.TECH, Industries Ltd.,Permanent,0,No;D.SKalra,President 56, 26.08.2013, 8,125,000, M.COM, MBA, Reliance Mohnot, President–Commercial, 0.05, No;Suneel 6,938,000, CA,LLB, Bhilwara Spinners,Permanent, Yes; DineshJain,President–Finance,57,12.06.2004, 86,132,829, B.A. (Psychology), -, Contractual, 0.07, Dipali Goenka,ExecutiveDirector, 45, 01.04.2013, report asAnnexure6. with the Secretary isannexed Company Practicing Sohoni, by Mr.Uday given Audit Report Secretarial 22. Directors’ResponsibilityStatement: 21. 20. RiskManagement: 19. April 29,2015 Mumbai Corporate GovernanceCertificate: b. a. in the preparation of the annual accounts, the Act, 2013,yourdirectorsherebyconfirmthat: Pursuant toSection134(3)(c)&134(5)oftheCompanies policy/Familiarisation%20program.pdf link theretois:http://welspunindia.com/ a web and directors) aredisclosedonyourCompany’swebsite (for independent program of familiarization The details Director: Familiarization programmeforIndependent Company. to your of thisreportforrisksandthreatsapplicable to the and AnalysisSection Management Discussion program hasbeenformulated.Refer risk management compliance andstrategicrisk. A structured enterprise business, operational, financial, address effectively to approved EnterpriseRiskManagementPolicy(ERMP) TheBoardhas and functionsof the organization. Your Companyis exposed to risks acrossalllevels annexed totheCorporateGovernanceReport. as stipulatedinClause49of the Listingagreementis governance of corporate of conditions compliance Mr. Uday Secretary regarding Sohoni, PracticingCompany from obtained certificate Compliance The c.

departures; to material relating with properexplanation along followed been had standards accounting applicable and otherirregularities; fraud detecting and for preventing and Company the assetsofyour Act, 2013forsafeguarding of theCompanies with theprovisions accordance in records accounting of adequate for themaintenance care sufficient and proper taken had directors the the profitandlossofyourCompanyforthatperiod; your Company at the end of the financial year and of as togiveatrueandfairviewofthestateaffairs so andprudent and estimatesthatarereasonable and madejudgments them consistently and applied policies such accounting the directorshadselected

24. Acknowledgements: 23. Miscellaneous: Chairman Balkrishan Goenka For andonbehalfoftheBoardDirectors progress andachievementofitsobjectives. operation, have helped as the partner in yourcompany’s Company, who through their continued support and co- employees and other business associates of your institutions, banks, customers, suppliers, shareholders, Your directors thank the Government authorities, financial Capital andDebentures)Rules,2014isnotrequired. (Share as requiredunderRule16(4)ofCompanies employees of your Companyandhencethedisclosure the of benefit the for or by held be to company, holding or its for,sharesinyourCompany of, orsubscription has not made anyprovisionof money for the purchase review.YourCompany Committee duringtheyearunder harassments wasreportedtotheInternalComplaints case ofsexual No Company. ofyour for eachlocations 2014 andformedtheInternalComplaintsCommittee women at workplace atitsmeetingheldonJanuary27, Prohibition andRedressalof Sexual Harassmentof the PolicyonPrevention, of yourCompanyapproved in future.Further,theBoard operations Company’s have impactedthegoingconcernstatusandyour would which or courtstribunals was passedbytheregulators order material and significant No report. the of date the and relate statements financial the which of your to Company position financial your of year financial the of end the between Company the affected have would material changeorcommitment has occurredwhich natureof the general businessof your Company.No During theyearunderreport,therewasnochangein f. e. d.

effectively. and thatsuchsystemswereadequateoperating compliance withtheprovisionsofallapplicablelaws the directorshaddevisedpropersystemstoensure are adequateandwereoperatingeffectively; controls financial internal such byyour that and Company befollowed to controls financial internal down laid the directorshad a listedcompany, being going concernbasis; the directorshadprepared annual accountsona 55 Annual Report 2015 Welspun India Ltd. 56 Annual Report 2015 Welspun India Ltd. All thebusinessactivitiescontributing10%ormoreoftotalturnoverCompanyareasgivenbelow: 1 Sr. No. II. I. PRINCIPAL BUSINESSACTIVITIESOFYOURCOMPANY REGISTRATION ANDOTHER DETAILS v. iv. iii. ii. i. CIN :-L17110GJ1985PLC033271 Email: [email protected]. Tele.: 02836-662079; Contact: TheCompanySecretary, Kutch, Gujarat-370110. Welspun City,VillageVersamedi,TalukaAnjar.Dist. Address oftheRegisteredofficeandcontactdetails: Limited Company Category /SuboftheCompany:Public Name oftheCompany:WelspunIndiaLimited Registration Date:January17,1985 Manufacture ofothertextiles products /services Name anddescriptionofmain [Pursuant tosection92(3)oftheCompaniesAct,2013andrule12(1)

As onthefinancialyearendedMarch31,2015 (Management andAdministration)Rules,2014] EXTRACT OFANNUALRETURN Annexure 1 Form No.MGT–9 product /service NIC codeofthe vii. vi. Fax No.:+91-22–25946969 Tele. No.:+91-22-25946970 Email [email protected] Mumbai –400078. LBS Marg,Bhandup(West), C-13, PannalalSilkMillsCompound, Unit :WelspunIndiaLimited Limited) (Formerly knownas:IntimeSpectrumRegistry Link IntimeIndiaPrivateLimited Transfer Agent,ifany: Name, addressandcontactdetailsofRegistrar Whether listedcompany:Yes. 139

of theCompany. % tototalturnover

99.16% 1 No. Sr. 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 III. Private Limited Anjar IntegratedTextileParkDevelopers Name AndAddressOftheCompany Welspun ZucchiTextilesLimited Welspun USA,Inc.(USA) Welspun UKLimited(UK) (Mauritius) Welspun MauritiusEnterprisesLimited Welspun HomeTextilesUKLimited(UK) Welspun HoldingsPrivateLimited(Cyprus) Welspun GlobalBrandsLimited Welspun DecorativeHospitalityLLC(USA) Welspun CaptivePowerGenerationLimited Welspun AnjarSEZLimited Novelty HomeTextilesS.A.deC.V.(Mexico) Krishiraj TradingLimited E. R.Kingsley(Textiles)Limited(UK) CHT HoldingsLimited(UK) Christy WelspunGmbH(Germany) Christy UKLimited(UK) Christy LifestyleLLC(USA) Christy HomeTextilesLimited(UK) Christy 2004Limited(UK) Limited Besa DevelopersandInfrastructurePrivate PARTICULARS OFHOLDING,SUBSIDIARYANDASSOCIATECOMPANIES U45400MH2008PTC178773 U18101MH1997PLC107982 U74120GJ2011PTC064912 U71210GJ2004PLC045144 U40100GJ2010PLC060502 U22210GJ1995PLC027871 U65990GJ1992PLC050965 CIN /GLN ------Subsidiary / Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associate Holding / Holding Held Shares % of 100.00% 98.64% 98.17% 98.03% 98.17% 98.17% 98.03% 98.64% 68.00% 100.00% 98.03% 50.28% 98.17% 98.17% 98.17% 98.17% 98.17% 98.17% 98.17% 100.00% 100.00% Section Applicable 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(46) 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(87)(ii) 2(87)(ii)

57 Annual Report 2015 Welspun India Ltd. 58 Annual Report 2015 Welspun India Ltd. i) g) f) h) e) d) b) c) a) 1. B. e) d) c) b) a) (2) e) d) c) b) a) (1) A. IV. shareholders Category of Sub-Total (B)(1) Others (Specify) Investors Foreign Institutional Insurance Companies Capital Investors Foreign Venture Venture CapitalFunds State Government(s) Banks /FI Central Government Mutual Funds/UTI Institutions Public shareholding (A)(1)+(A)(2) Promoter Group(A)= of Promoterand Total Shareholding Sub Total(A)(2) Any Other Banks /FI Bodies Corporate Other Individuals NRIs -–Individuals Foreign Sub Total(A)(1) Any Others(Specify) Banks Financial Institutions/ Bodies Corporate State Government(s) Central Government/ Undivided Family Individuals/ Hindu Indian Promoters SHAREHOLDINGPATTERN(equitysharecapitalbreak-upaspercentageofTotalEquity) i. Category-wise shareholding 10,947,249 73,355,034 73,355,034 73,010,633 7,951,459 2,929,030 344,401 64,243 Demat 2,517 No. ofsharesheldatthe beginning oftheyear ------Physical 11,600 11,350 250 ------10,958,849 73,355,034 73,355,034 73,010,633 7,951,709 2,940,380 344,401 64,243 2,517 Total ------% oftotal shares 10.92 73.10 73.10 72.76 0.06 0.00 7.92 2.93 0.34 ------73,827,719 73,827,719 73,483,318 8,509,624 3,563,476 4,037,213 No. ofsharesheldattheend 908,935 344,401 Demat ------Physical 11,600 11,350 250 the year - - 0 ------73,827,719 73,827,719 73,483,318 8,521,224 3,563,476 4,048,563 909,185 344,401 Total ------% oftotal shares 73.49 73.49 73.15 8.48 3.55 4.03 0.91 0.34 ------the year change during % (2.44) (0.06) (7.02) 3.54 1.10 0.39 0.39 0.39 0.00 ------

- - v. vi. C. vii. iv. iii. ii. i. d) c) ii. i. b) i. a) 2. ii. shareholders Category of (A)+(B)+(C) GRAND TOTAL Directors /Relatives Sub-Total (B)(2) Trust have beenissued Depository Receipts against which Custodians and Shares heldby TOTAL (A)+(B) (1)+(B)(2) Shareholding (B)=(B) Total Public Investor Foreign Portfolio Family Hindu Undivided Account Demat Suspense Unclaimed Shares Non ResidentIndians Clearing member Any Other(specify) Investor Qualified Foreign lakh. in excessofRs.1 nominal sharecapital shareholders holding Individual up toRs1lakh nominal sharecapital shareholders holding Individual Individuals Indian Bodies Corporate Non-institutions Overseas 99,690,512 15,388,229 99,690,512 26,335,478 4,195,306 4,719,541 6,015,645 140,002 179,034 133,287 Demat 3,414 2,000 No. ofsharesheldatthe beginning oftheyear - - - - - Physical 656,003 644,403 656,003 656,003 615,079 21,260 7,189 875 ------100,346,515 100,346,515 16,032,632 26,991,481 4,195,306 5,334,620 6,022,834 140,002 200,294 133,287 4,289 2,000 Total - - - - - % oftotal 100.00 100.00 shares 15.98 26.90 0.00 0.00 0.14 0.20 0.13 4.18 5.32 6.00 - - - - - 99,824,263 17,486,920 99,824,263 25,996,544 6,022,721 3,990,897 6,940,648 No. ofsharesheldattheend 139,740 114,217 264,992 Demat 3,614 2,233 - - - - - Physical 635,652 624,052 635,652 635,652 594,823 21165 7,858 7,189 875 the year ------100,459,915 100,459,915 18,110,972 26,632,196 6,022,721 4,585,720 6,947,837 139,740 135,382 264,992 4,489 2,233 Total - - - - - % oftotal 100.00 100.00 shares 18.03 26.51 7,858 0.00 0.00 0.14 0.13 0.26 6.00 4.56 6.93 - - - - the year change during % (0.39) (0.00) (0.06) (0.75) 2.05 0.00 0.01 0.00 0.13 1.81 0.92 ------59 Annual Report 2015 Welspun India Ltd. 60 Annual Report 2015 Welspun India Ltd. 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 No Sr. TOTAL Textiles Limited Welspun Zucchi Limited Welspun Syntex Limited Welspun Steel Mercantile Limited Welspun Developers Limited Welspun Infra Limited Welspun Finance Limited Welspun Wintex Mandawewala Rajesh Radhika Goenka Limited Trading Co.Private Investment And Methodical Limited Krishiraj Trading Balkrishan Goenka jointly with Dipali Goenka Dipali Goenka Goenka jointly withDipali Balkrishan Goenka Balkrishan Goenka name Shareholder’s ii. Shareholding ofPromoters the year Shareholding atthebeginningof 73,355,034 11,246,576 50,037,192 2,749,773 8,425,291 shares No. of 542,402 200,860 72,360 68,389 1,485 7,694 2,680 110 110 103 9 shares ofthe Company % oftotal 73.10 11.21 49.86 0.00 0.00 0.00 0.54 2.74 8.40 0.00 0.20 0.01 0.00 0.07 0.00 0.07 / encum- pledged shares to total shares bered % of ------Shareholding attheendofyear 73,827,719 11,246,576 50,509,877 2,749,773 8,425,291 shares No. of 542,402 200,860 72,360 68,389 1,485 7,694 2,680 110 110 103 9 shares of the Company % oftotal 73.52 11.21 50.28 0.00 0.00 0.00 0.54 0.00 2.74 8.40 0.20 0.01 0.00 0.07 0.00 0.07 / encum- pledged shares to total shares bered %of ------change in the year holding share- during % 0.00 0.42 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.42 0.00 0.00 0.00 at serialnumber(ii)above of theconstituentspromotergroupnamedintablegiven There wasnochangeintheshareholding 1. no. Sr. 1. 2 No Sr. Names Shareholder Fund Reliance Growth Limited A/C Trustee Company Reliance Capital shareholders the top10 For eachof iii. iv. Krishiraj TradingLimited (in aggregate) Promoter Group Change inPromoterGroups’shareholding Shareholding patternoftoptenshareholders(otherthanDirectors,PromotersandHoldersGDRsADRs): Constituent ofthePromoterGroup (31-03-15) year (01-04-14) /endofthe beginning Shareholding atthe 2,928,314 shares No. of decrease Increase / At thebeginningofyear At theendofyear At thebeginningofyear decrease Increase / At theendofyear 2.91 Company of your shares % oftotal May 6,2014 March 16,2015 March 13,2015 May 9,2014 May 6,2014 March 16,2015 March 13,2015 May 9,2014 11.07.2014 20.06.2014 13.06.2014 30.05.2014 Date 23.05.2014 01.04.2014 shares No. of 50,037,192 50,509,877 73,355,034 73,827,719 Shareholding 216,506 185,000 216,506 185,000 66,179 66,179 shareholding 5,000 5,000 Decrease in -1,25,000 Increase/ -25,000 -28,870 -25,000 -4,596 Company % oftotal of your shares 49.86 50.28 73.10 73.49 0.00 0.07 0.22 0.18 0.00 0.07 0.22 0.18 Sale Sale Sale Sale Reason Sale Reasons for Market Purchase Market Purchase Market Purchase Market Purchase Market Purchase Market Purchase Market Purchase Market Purchase decrease increase/ 31-03-15) 14 to during theyear(01-04- Cumulative Shareholding shares No. of 2,719,848 2,844,848 2,849,444 2,874,444 2,903,314 2,928,314 - - - 50,037,192 50,324,877 50,319,877 50,253,698 50,509,877 50,509,877 73,355,034 73,642,719 73,637,719 73,571,540 73,827,719 73,827,719 shares No. of shareholding Cumulative Company of your shares % oftotal shares Com- pany your total % of of 49.86 50.10 50.13 50.06 50.28 50.28 73.10 73.40 73.39 73.29 73.49 73.49 2.70 2.83 2.84 2.86 2.89 2.91

61 Annual Report 2015 Welspun India Ltd. 62 Annual Report 2015 Welspun India Ltd. 2. 3. 4. no. Sr. Names Shareholder Bikaner &Jaipur State Bankof IDBI BankLtd Bank ofBaroda 2,727,804 Nil Nil (31-03-15) year (01-04-14) /endofthe beginning Shareholding atthe 1,779, 410 2,000,000 1,634,000 2.71 0.00 0.00 1.77 2.00 1.62 31.03.2015 13.03.2015 06.02.2015 31.12.2014 16.05.2014 14.11.2014 31.03.2015 20.06.2014 13.06.2014 09.05.2014 07.11.2014 06.06.2014 02.05.2014 30.09.2014 30.05.2014 31.03.2015 25.04.2014 25.04.2014 18.04.2014 15.08.2014 Date 23.05.2014 16.05.2014 09.05.2014 02.05.2014 25.04.2014 18.04.2014 11.04.2014 11.04.2014 04.04.2014 01.04.2014 01.04.2014 01.04.2014 08.08.2014 shareholding Decrease in -374,224 -984,845 -134,770 -488,502 -303,362 -690,488 -225,526 -228,826 Increase/ -79,000 -25,000 -70,000 -10,000 -20,000 -35,000 -20,000 -40,000 -75,000 -41,209 -95,122 -60,000 -50,000 -56,745 15,000 21,300 36,816 15,999 -8,711 -7000 5,050 Purchase Purchase Purchase Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Purchase Reason Sale Sale Sale Sale Sale Sale Purchase Sale Sale Sale Sale Sale Sale 31-03-15) 14 to during theyear(01-04- Cumulative Shareholding 1,779, 410 2,727,804 2,727,804 2,712,804 2,691,504 1,376,289 2,686,454 1,455,289 2,711,454 1,490,289 2,731,454 1,565,289 2,772,663 1,625,289 1,359,069 1,493,839 2,735,847 1,076,986 1,767,474 1,993,000 2,000,000 1,634,000 1,550,584 100,000 140,000 235,122 374,224 285,122 773,624 70,000 80,000 Nil Nil 2.71 2.71 2.70 2.68 1.37 2.67 1.45 2.69 0.00 0.07 0.08 0.10 1.48 2.72 0.14 1.56 2.76 0.23 1.61 0.37 1.35 1.49 2.72 0.28 0.77 1.07 1.76 1.98 0.00 2.00 1.77 1.62 1.54 no. Sr. Names Shareholder (31-03-15) year (01-04-14) /endofthe beginning Shareholding atthe 13.02.2015 16.01.2015 02.01.2015 19.12.2014 05.12.2014 28.11.2014 21.11.2014 14.11.2014 07.11.2014 31.10.2014 24.10.2014 17.10.2014 10.10.2014 03.10.2014 30.09.2014 19.09.2014 12.09.2014 05.09.2014 29.08.2014 22.08.2014 15.08.2014 08.08.2014 01.08.2014 25.07.2014 18.07.2014 11.07.2014 04.07.2014 30.06.2014 20.06.2014 13.06.2014 06.06.2014 30.05.2014 Date 23.05.2014 shareholding Decrease in -1,08,000 Increase/ -12,000 -21,275 -19,024 -33,000 -19,637 -29,992 -19,008 -22,595 -25,398 -54,000 -37,654 -67,169 -31,353 -27,039 -28,436 -25,000 -10,924 -29,783 -80,610 -40,000 -85,000 -64,000 -90,557 -25,000 -75,000 -67,751 -30,000 -2,000 -2,000 -5,000 -6,070 -9,000 Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Reason Sale 31-03-15) 14 to during theyear(01-04- Cumulative Shareholding 1,070,538 1,095,538 1,170,538 1,238,289 1,268,289 172,994 174,994 176,994 181,994 193,994 200,064 221,339 240,363 273,363 293,000 322,992 342,000 364,595 389,993 398,993 452,993 490,647 557,816 589,169 616,208 644,644 669,644 680,568 710,351 790,961 830,961 915,961 979,961 0.17 0.17 0.17 0.18 0.19 0.19 0.22 0.24 0.27 0.29 0.32 0.34 0.36 0.38 0.40 0.45 0.48 0.55 0.58 0.61 0.64 0.66 0.68 0.70 0.78 0.82 0.91 0.98 1.07 1.09 1.16 1.23 1.26 63 Annual Report 2015 Welspun India Ltd. 64 Annual Report 2015 Welspun India Ltd. 8. 7. 6. 9. 5. no. Sr. 10 Names Shareholder Securities Pvt.Ltd. M JShares& Bhansali Roopchand Akash Bhansali (I) PrivateLimited Subhkam Ventures India Corporation of Life Insurance India United Bankof 300,000 699,824 (31-03-15) year (01-04-14) /endofthe beginning Shareholding atthe Nil 569,590 853,447 881,975 1,000,000 172,994 651,078 704,609 719,590 Nil 0.30 0.70 0.00 0.57 0.85 0.88 0.99 0.17 0.65 0.70 0.71 0.00 31.03.2015 30.09.2014 22.08.2014 31.03.2015 15.08.2014 23.05.2014 13.02.2015 06.02.2015 02.05.2014 25.04.2014 18.04.2014 09.05.2014 25.07.2014 Date 31.03.2015 11.04.2014 31.03.2015 25.04.2014 04.04.2014 01.04.2014 18.07.2014 01.04.2014 01.04.2014 31.03.2015 01.04.2014 10.10.2014 01.04.2014 28.11.2014 01.04.2014 31.03.2015 shareholding Decrease in -220,869 -129,920 -385,000 -445,000 -130,000 -378,447 -704,609 -150,000 Increase/ -91,965 -12,131 -20,780 -40,000 -19,320 10,000 25,000 50,000 50,000 2,834 Purchase Sale Sale Purchase Purchase Sale Purchase Sale Sale Reason Sale Sale Sale Sale Purchase Sale Sale Sale Sale 31-03-15) 14 to during theyear(01-04- Cumulative Shareholding 1,000,000 300,000 297,166 518,035 610,000 699,824 600,000 699,824 575,000 711,955 841,875 385,000 830,000 960,000 525,000 862,655 569,590 853,447 881,975 172,994 475,000 651,078 704,609 719,590 569,590 Nil Nil Nil Nil 0.30 0.30 0.52 0.60 0.70 0.59 0.70 0.57 0.71 0.84 0.38 0.83 0.96 0.52 0.86 0.00 0.00 0.99 0.57 0.85 0.88 0.17 0.47 0.65 0.70 0.71 0.57 0.00 0.00 11 no. Sr. Names Shareholder Limited India Funds Goldman Sachs Nil (31-03-15) year (01-04-14) /endofthe beginning Shareholding atthe Nil 0.00 0.00 27.03.2015 06.03.2015 27.02.2015 13.02.2015 30.01.2015 23.01.2015 15.08.2014 12.12.2014 30.09.2014 19.06.2014 01.08.2014 21.11.2014 31.03.2015 20.02.2015 30.01.2015 07.11.2014 25.07.2014 14.11.2014 11.07.2014 04.07.2014 12.09.2014 20.06.2014 06.06.2014 05.09.2014 29.08.2014 23.05.2014 09.05.2014 Date 22.08.2014 18.07.2014 11.07.2014 01.04.2014 02.05.2014 shareholding Decrease in -400,000 -100,544 -185,600 -100,000 Increase/ 118,306 220,203 154,327 117,587 109,855 100,000 100,544 270,600 264,205 135,427 586,321 -49,492 -49,999 -27,000 -75,000 -70,500 -85,000 75,845 60,055 67,677 42,816 11,032 23,653 70,876 29,056 -7,090 -1,053 Purchase Purchase Purchase Purchase Purchase Purchase Purchase Sale Sale Purchase Sale Sale Sale Sale Sale Purchase Purchase Sale Purchase Purchase Sale Purchase Purchase Sale Sale Reason Purchase Purchase Purchase Sale Purchase Purchase 31-03-15) 14 to during theyear(01-04- Cumulative Shareholding 2,058,185 1,939,879 1,719,676 1,565,349 1,447,762 1,337,907 1,262,062 1,202,007 1,134,330 1,091,514 1,080,482 1,056,829 400,544 407,634 100,544 434,634 100,544 239,034 509,634 495,134 309,534 792,624 680,134 580,134 721,748 586,321 49,492 99,491 544 Nil Nil Nil 2.05 1.93 1.71 1.56 1.44 1.33 1.26 0.40 1.20 0.41 0.00 0.10 1.13 0.00 0.05 0.09 0.43 0.00 0.10 1.09 0.24 0.50 1.08 0.49 0.31 0.79 1.05 0.68 0.58 0.72 0.58 0.00 65 Annual Report 2015 Welspun India Ltd. 66 Annual Report 2015 Welspun India Ltd. 15 14 13 12 no. Sr. Names Shareholder LLP RVB Enterprise Arbitrage BNP Paribas Vimal Jain Midcap Fund ICICI Prudential 731,182 752,400 985,490 (31-03-15) year (01-04-14) /endofthe beginning Shareholding atthe Nil Nil Nil 2,058,185 Nil 0.73 0.75 0.98 0.00 0.00 0.00 2.05 0.00 31.03.2015 27.03.2015 20.03.2015 13.03.2015 06.02.2015 12.12.2014 05.12.2014 28.11.2014 14.11.2014 07.11.2014 10.10.2014 31.03.2015 25.07.2014 30.09.2014 31.03.2015 20.06.2014 22.08.2014 11.07.2014 Date 19.09.2014 12.09.2014 01.04.2014 13.06.2014 02.05.2014 01.04.2014 05.09.2014 29.08.2014 22.08.2014 01.04.2014 31.03.2015 20.06.2014 09.05.2014 01.04.2014 shareholding Decrease in -200,000 Increase/ 160,200 129,800 471,600 508,234 476,855 175,000 80,178 97,971 97,971 68,983 39,975 33,877 11,177 13,232 16,228 87,782 45,000 92,249 88,083 75,600 3,476 9,000 401 Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Reason Purchase Purchase Purchase Purchase Purchase Sale Purchase Purchase Purchase Purchase Purchase 31-03-15) 14 to during theyear(01-04- Cumulative Shareholding 2,058,185 731,182 731,182 651,004 553,033 455,062 386,079 346,104 312,227 301,050 287,818 284,342 268,114 752,400 752,400 592,200 180,332 985,490 547,200 985,490 313,800 113,800 184,000 471,600 985,089 476,855 175,000 88,083 Nil Nil Nil Nil 0.73 0.73 0.65 0.55 0.45 0.38 0.35 0.31 0.29 0.29 0.28 0.27 0.75 0.75 0.59 0.18 0.98 0.54 0.98 0.31 0.11 0.18 0.08 2.05 0.00 0.00 0.00 0.47 0.98 0.48 0.00 0.17 16 17 no. Sr. on weeklybasis isgiven. Since, Welspun IndiaLimitedisalistedcompany, changeinshareholding ondailybasisisnotavailable andchange Names Shareholder Company Limited Insurance Max Life Limited Securities Private Quant Capital 585,476 689,469 592,143 (31-03-15) year (01-04-14) /endofthe beginning Shareholding atthe Nil Nil 0.58 0.68 0.59 0.00 0.00 31.03.2015 27.03.2015 20.03.2015 13.03.2015 06.03.2015 05.12.2014 14.11.2014 31.03.2015 13.03.2015 17.10.2014 06.03.2015 10.10.2014 27.02.2015 03.10.2014 30.09.2014 20.02.2015 31.03.2015 31.03.2015 19.09.2014 12.09.2014 31.12.2014 Date 05.09.2014 29.08.2014 27.03.2015 01.08.2014 01.04.2014 01.04.2014 19.12.2014 14.11.2014 12.09.2014 shareholding Decrease in -118,000 -180,000 -189,973 -133,795 1,93,072 Increase/ 105,000 465,787 395,000 231,188 143,343 115,100 200,000 -96,576 29,492 51,018 96,000 23,053 38,514 10,401 82,921 17,176 -1,840 2,246 1,500 4,072 Sale Sale Sale Sale Purchase Sale Sale Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Reason Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase 31-03-15) 14 to during theyear(01-04- Cumulative Shareholding 1,170,025 1,167,779 1,033,984 1,035,824 585,476 883,476 585,476 703,476 980,052 689,469 584,469 689,469 554,977 984,806 458,977 495,966 961,753 456,477 592,143 592,143 197,143 226,264 475,452 446,076 143,343 428,900 313,800 4,072 Nil Nil 0.58 0.88 0.58 0.70 0.98 1.16 1.16 1.03 0.68 0.58 0.68 1.03 0.55 0.98 0.46 0.49 0.96 0.45 0.59 0.59 0.19 0.22 0.45 0.44 0.00 0.14 0.00 0.00 0.43 0.31 67 Annual Report 2015 Welspun India Ltd. 68 Annual Report 2015 Welspun India Ltd. Mr. AltafJiwani,ChiefFinancialOfficerdidnotholdanyshare oftheCompany,anytimeduringyear. and directors oftheCompany Mr. ArunTodarwal,RamGopalSharma,Ajay Mr.ArvindKumarSinghal, 1 2 no. Sr. 3 4 5 6 7 v. At theBeginningofYear Balkrishan GoenkaHUFandjointholding) Mr. BalkrishanGoenka(includingholdingof Shareholding ofDirectors At theendofyear At theBeginningofYear Mr. ApurbaKumarDasgupta For eachoftheDirectorsandKMP At theendofyear At theendofyear At theBeginningofYear Mr. DadiEngineer* At theendofyear At theBeginningofYear (including jointholding) Ms. DipaliGoenka At theendofyear Shareholding ofKeyManagerialPerson At theBeginningofYear Director Mr. RajeshManadawewala–Managing At theendofyear At theBeginningofYear (including jointholding) Ms. DipaliGoenka–ExecutiveDirector At theendofyear At theBeginningofYear Mr. ShashikantThorat–CompanySecretary Shareholding ofDirectorsandKeyManagerialPersonnel: beginning oftheyear shares No. of Shareholding atthe 68,398 68,398 75,040 75,040 75,040 75,040 3300 3500 989 989 103 103 Nil 1 % oftotalshares of theCompany 0.07 0.07 0.00 0.07 0.07 0.07 0.07 Nil 0 0 0 0 0 0 shares No. of shareholding during 68,398 68,398 75,040 75,040 75,040 75,040 3300 3500 989 989 103 103 Nil Cumulative 1 the year. % oftotalshares of theCompany 0.07 0.07 0.00 0.07 0.07 0.07 0.07 Nil 0 0 0 0 0 0 Indebtedness ofyourCompanyincludinginterestoutstanding/accruedbutnotdueforpayment.(Rs.inMillion) V. INDEBTEDNESS VI. REMUNERATIONOFDIRECTORSANDKEYMANAGERIALPERSONNEL. year Indebtedness atthebeginningoffinancial No. Sr. year. Change inindebtednessduringthefinancial 1 Indebtedness attheendoffinancialyear Net change Total (i+iiiii) 2 3. Total (i+ii+iii) 4 5 • • iii) Interestaccruedbutnotdue ii )Interestduebutnotpaid i) PrincipalAmount iii) Interestaccruedbutnotdue ii) Interestduebutnotpaid i) PrincipalAmount Reduction Addition Particulars ofRemuneration c) Profitsinlieuofsalaryundersection17(3)IncomeTax b) Valueofperquisitesu/s.17(2)IncomeTaxAct,1961 a) Salaryasperprovisionscontainedinsection17(1)of Gross Salary Stock Option Sweat equity Others, specify….. As %ofprofit Commission Ceiling aspertheAct. Total (A) Others, pleasespecify A. Act, 1961 the IncomeTaxAct1961. Remuneration toManagingDirector,whole-timedirectorsand/orManager

deposits excluding loans Secured 21,508.07 22,468.46 21,591.89 22,528.72 936.83 936.83 83.82 60.26 - - - loans Unsecured Mandawewala Mr. Rajesh Name ofMD/WTD/Manager 355,664,146 1,604.87 1,606.38 2,196.65 2,197.07 17,000,000 71,132,829 88,613,458 590.69 590.69 480,629 1.51 0.42 - - - Deposits - - - - Goenka Ms. Dipali 355,664,146 15,000,000 71,132,829 86,132,829 ------indebtedness Total - - - - - Amount Total 142,265,658 711,328,291 174,746,287 32,000,000 23,198.27 23,112.94 24,725.79 24,665.11 1,527.52 1,527.52 480,629 85.33 60.68 ------69 Annual Report 2015 Welspun India Ltd. 70 Annual Report 2015 Welspun India Ltd. 5 4 1 3 1 2 No. Sr. 2 Sr. No. Overall CeilingaspertheAct. Total ManagerialRemuneration(A+B) • • • Independent Directors • • • Particulars ofRemuneration Total (B)=(1+2) Total (2) Other NonExecutiveDirectors Total (1) C. D. B. TotalManagerialRemuneration Remuneration tokeymanagerialpersonnelotherthanmd/manager/wtd Remuneration tootherdirectors Others, pleasespecify Commission meetings Fee forattendingboardcommittee Others, pleasespecify Commission meetings Fee forattendingboardcommittee Others, pleasespecify - - Commission Sweat Equity c) b) a) Gross Salary Stock Option Total Particulars ofRemuneration Others, specify As %ofprofit Profits inlieuofsalaryundersection17(3)IncomeTaxAct,1961 Value ofperquisitesu/s.17(2)IncomeTaxAct,1961 Salary asperprovisionscontainedinsection17(1)oftheIncomeTax Act, 1961 Engineer Mr. Dadi Name ofDirectors Goenka Balkrishan Mr. 71,132,829 71,132,829 437,000 437,000 - - - - Dasgupta Kumar Apurba Mr. Sharma Mr. Ajay 467,000 467,000 110,000 110,000 - - Sharma Gopal Mr. Ram Singhal Kumar Mr. Arvind Officer Financial Chief Key ManagerialPersonnel 637,000 637,000 80,000 80,000 22.40 20.00 2.40 ------Todarwal Mr. Arun Secretary Company 515,000 515,000 2.75 0.19 2.56 ------(Rs. inMillion) (Rs.) amount Total 782,461,121 248,125,116 73,378,829 71,322,829 71,132,829 Total 2,056,000 2,056,000 190,000 25.15 22.56 2.59 ------VII. PENALTIES/PUNISHMENTCOMPOUNDINGOFOFFENCES: Compounding Punishment Penalty OTHER OFFICERSINDEFAULT Compounding Punishment Penalty DIRECTORS Compounding Punishment Penalty COMPANY Type None None None None None None None None None Companies Act Section ofthe Description Brief compounding feesimposed Details ofpenalty/punishment NCLT /COURT] Authority [RD/ details) if any(give Appeal made, 71 Annual Report 2015 Welspun India Ltd. 72 Annual Report 2015 Welspun India Ltd. Holdings Limited,CHT=ChristyHomeTextilesLimited. Anjar SEZ Private Limited,CHL=CHT Limited, WZTL = WelspunZucchiTextilesLimited,WHPLHoldings Private Limited,WASEZ and InfrastructurePrivateLimited,AITP = Welspun = AnjarIntegratedTextileParkDevelopers Limited, BDI=BesaDevelopers Power Generation Captive Global BrandsLimited,WCPGL=Welspun WGBL =Welspun Reporting currencyandExchangerate is as on the last date of the relevant Financialyearinthe case of foreign subsidiaries. # ConsolidatedFigurefortheCompanyandallit’ssubsidiaries isgiven. holding % ofShare Dividend Proposed after Taxation Profit (Loss) Taxation Provision for before Taxation Profit (Loss) Turnover subsidiaries) investments in (excluding Investments Total Liabilities Total Assets Surplus Reserves & Share Capital Exchange rate currency and Reporting period Reporting company Subsidiary Name ofthe Sr. No. (Pursuant tofirstprovisosub-section(3)ofSection129readwithRule5theCompanies(Accounts)Rules, 6.48 31-Mar-15 44,183.85 - WGBL 5,015.67 7,389.46 1,986.43 98.03% 492.42 273.41 765.83 393.84 1 INR 31-Mar-15 WCPGL - 2,688.07 2,981.10 4,083.64 1,280.00 (128.29) 68.00% 110.26 101.33 2 (8.93) 49.17 INR 2014)Performance andfinancialpositionofthesubsidiaries 31-Mar-15 - - 100.00% BDI (14.63) 3 15.58 0.06 0.01 0.07 0.11 1.05 0.10 INR 31-Mar-15 Annexure 2 ------100.00% AITP 4 Form AOC-1 0.51 0.61 0.10 INR 31-Mar-15 - WASEZ 100.00% 2,370.16 2,195.87 459.67 633.45 5 (3.12) (2.31) 0.81 0.34 0.51 INR 31-Mar-15 - 100.00% WZTL 6 (0.55) (0.32) 97.27 55.00 41.61 0.23 0.72 0.01 0.67 INR 31-Mar-15 Rs.92.63 WHPL 98.17% 454.58 449.74 7 (0.91) (0.50) 1.62 GBP 0.41 0.66 3.22 - - 31-Mar-15 WHTUKL Rs.92.63 (401.93) 98.17% 290.69 620.67 731.91 8 (3.28) (3.28) GBP - - - - 31-Mar-15 - #3,211.44 Rs.92.63 1,462.13 1,884.84 CHL 98.17% 264.87 157.84 9 (5.72) 23.00 17.28 GBP - (Rs. inMillion) (11.59) (11.59) 31-Mar-15 813.83 1,019.10 55.60 149.66 Rs.92.63 - - - - CHT 98.17% 10 GBP 3) KojoCanandaInc.wasdissolvedwitheffectfromDecember 19,2014. 2) AnjarIntegratedTextileParkDevelopersPrivateLimited isyettocommenceitsbusiness. 1) OnJanuary30,2015,WelspunZucchiTextilesLimitedbecameawhollyownedsubsidiary. Notes: Canada Inc. Limited, NHT=NoveltyHomeTextilesSADECV,KCIKojo Enterprises LLC, WMEL=WelspunMauritius Hospitality E. R. Kingsley (Textiles)Limited, CLL=ChristyLifestyleLLC,WUSAWelspunUSA,Inc., WDH =WelspunDecorative GmbH, ERK= = ChristyUKLimited,CEGEurope Limited, CUL UKLimited,CL=Christy2004 WUL =Welspun Reporting currencyandExchangerate is as on the last date of the relevant Financialyearinthe case of foreign subsidiaries. # ConsolidatedFigurefortheCompanyandallit’ssubsidiariesisgiven. % ofShareholding Proposed Dividend Taxation Profit (Loss)after and Exchangerate currency Reporting Share Capital Taxation Provision for before Taxation Profit (Loss) Reporting period Total Assets Surplus Reserves & Total Liabilities subsidiaries) investments in excluding Investments(- Turnover Name oftheSub- sidiary company Sr. No. 31-Mar-15 Rs.92.63 3,534.01 3,295.89 2,745.27 98.17% WUL (12.52) 149.66 11 98.91 86.39 88.45 GBP - - 31-Mar-15 Rs.92.63 1,319.16 98.17% 856.81 462.36 CL 12 GBP ------31-Mar-15 ------Rs.92.63 98.17% CUL 292.35 289.76 13 GBP 2.59 - 31-Mar-15 Rs. 67.08 - - 98.17% CEG (13.35) 14 10.72 10.72 47.77 59.38 62.64 Euro 1.73 - 31-Mar-15 ------Rs.92.63 98.17% ERK 15 (0.00) 58.73 58.53 GBP 0.20 31-Mar-15 Rs. 62.50 - - 98.17% CLL 149.59 130.51 16 (5.39) 21.37 15.98 19.08 69.71 USD - 31-Mar-15 #10,946.88 Rs. 62.50 - 216.97 299.07 644.59 3,825.29 4,479.57 WUSA 98.64% 17 82.10 USD 9.69 - 31-Mar-15 Rs. 62.50 - - (282.60) 98.64% WDH 228.74 18 53.92 USD 0.03 0.03 0.06 - - 31-Mar-15 Rs. 62.50 (0.69) (0.69) 37.98 16.54 5.54 60.06 WMEL 98.03% 19 USD - - - - 31-Mar-15 (1.22) 6.48 53.22 4.39 (7.70) (57.61) Rs. 4.08 - - - - 98.03% NHT 20 MXN 19-Dec-14 Rs. 63.31 KCI 21 USD ------73 Annual Report 2015 Welspun India Ltd. 74 Annual Report 2015 Welspun India Ltd. (iii). thecapitalinvestmentonenergyconservationequipments:- (ii). Thestepstakenbythecompanyforutilizingalternatesourcesofenergy; (i). 1 A. POWERANDFUELCONSUMPTION Biological Sludge,garden,kitchenandcanteenwaste. generate biogasfromallbiodegradablewasteslike has installedaBio-GasPlantto Anjarplant Your Company’s of rainwater. liters 2 billion approximately in harvesting has succeeded by yourCompany.YourCompany day havebeenachieved KL/ to thetuneof1499 water savings per day.Inaddition, 17.3 MTcoal and units ofpower to savingof2255 led have for resourceconservationplan a comprehensive the implementing last 2 years. Initiatives for energy conservation Sullivan, 2) Golden Peacock: Environment ManagementAward2014and3) Energy ConservationAwardfrom Fokia by Frostand 2014 award Award -Greenbeliever excellence 1) GreenManufacturing awarded has been Your Company conservationofenergy; The stepstakenorimpacton (B) (A) ELECTRICITY FORM FORDISCLOSUREOFPARTICULARSWITHRESPECTTOCONSERVATIONENERGY OWN GENERATIONUNIT PURCHASED (I) Total Amount(RsinLac) KWH Units(in‘000s) Rate/Unit (Rs) (II) (III) Conservation ofenergy,technologyabsorptionandforeignexchange earningsoutgo Unit perLiterofFurnaceOil KWH Units(in’000s) Through DieselGenerator(FurnaceOil) Furnace OilConsumption(Rs.inLacs) Unit perLiterofDieselOil Giga CalorieConsumption Diesel Consumption(Rs.inLacs) KWH Units(in’000s) Through DieselGenerator(DieselOil) Cost perKWHUnit(Rs.) KWH Units(in’000s) Through GasTurbine/Generator Cost perKWHUnit(Rs.) KWH perGigaCalorieofNaturalGas Gas Cost(Rs.inLacs) Cost perKWHUnit (Rs.) Annexure 3 (See Rule2) Form –A

2014-15 22,472.18 361,729.31 4,663.00 502.59 14,330 492.91 765.12 23.60 10.78 7,063 11.90 10.83 4.10 3.90 6.21 2.81

2013-14 284,767.84 16,738.87 1,892.00 190.29 16,526 533.50 800.09 27.98 10.06 8,817 10.62 3.93 3.90 5.88 2.97 9.07

9. 8. 7. 6. 5. 4. 3. 2. 1. TOWELS Design anddevelopmentoffollowingnewproducts: outbyyourCompany 1. SpecificareasinwhichR&Discarried softer and are bulkier towelsthanthestandardcottontowels. towels Hygro 2012-13.The year the financial during thePatent granted already had Office Patent European Office. Trademark and Patent States United the “Hygro materialsforuseinmakingyarnsandfabrics”by was granted a patenttitled the year,yourCompany During Research &development(R&D) Technology Absorption Electricity PRODUCTS B. 5 4 2 Coal Furnace Oil 3 Others Color PlushTowel Towel) Loft DryTowel(NewQuick Neo SoftTowel Smart SpunTowel Side Waffle process,One SideTerryOne Developed new Micro towels My fittowels Jacinto towels Rapid drytowels Quantity (Kiloliters) (i) FurnaceOil OTHERS/INTERNAL GENERATION NATURAL GAS COAL FURNACE OIL&HSD Total Amount(Rs.inLacs) Quantity (GigaCalorie) Total Amount(Rs.inLacs) Cost /GigaCalorieofNaturalGas(Rs.) Cost perUnitofFurnaceOil(Rs.) Cost perUnitofDieselOil(Rs.) Total Amount(Rs.inLacs) Quantity (Kiloliters) (ii) DieselOil STANDARD Kwh/Mt - Litres/Mt - CONSUMPTION PERUNITOFPRODUCTION

Serene Towel 12. Serene 11. 10. 4. insulation 3. 2. 1. SHEETS 4. 3. 2. 1. CARPETS 7. 6. 5. 4. 3. 2. 1. RUGS Soft SpunTowel Cotton linenTowel body heat and reflectsinfraredforwell being body heatand &comforterthatcanabsorb Wel-ness Sheet forthermal generated Sheets Hollow fibre sheets andTOBproducts Denim wash sheetsandTOBproducts Vegetable dyed Terry BearCarpet Eyelash Carpet Silkex Carpet Woolex Carpet Micro fiberChenilleRugs Multi PlyDrylonRugs Amaze Rugs Cotton EucalyptusRugs Rugs Resilon Kushlon Value Rugs Drylon Rugs CURRENT YEAR 14,329.53 5,339.19 765.12 502.59 1,138 44.18 46.42 0.008 2.81 6.05 2.66

- - - - PREVIOUS YEAR 16,526.07 4,841.40 800.09 220.90 0.004 45.89 41.43 2.47 2.97 7.18 481

- - - - 75 Annual Report 2015 Welspun India Ltd. 76 Annual Report 2015 Welspun India Ltd. penetration inmarke products to select and createabrandimagefor better of range our customerswithwide us inproviding It helps inception onacontinuousbasis. possible becauseof R&D done in yourCompanysince has been of productstothenewrequirements Upgradation of quality of the productsand reduced operationcost. in market.Ithasresultedtheimprovement innovation through business andcustomersmaintainleadership a premium rangeof Developed products to attract new 2. Benefitsderivedasaresultoftheabove 4. 3. 2. 1. UTILITY BEDDING: 5. 4. 3. 2. 1. are developed The followinginnovativeTOB/Fashionbeddingcollections TOB: 6. 5. R&D ComforterandMattressPad Anti-Allergen Alfa-loft ComforterforallSeasons Soft Sealtechnology. MattressPadwith Good NightSleep Hygro CottonComforter&MattressPad Digitalprinting beddingwith Arabella –Luxury Digitalprinting Lauren -Luxurybeddingwith Digitalprinting beddingwith Dorian -Luxury jacquard weave innovative Eternity –Luxurybeddingwith jacquard weave innovative Augustus— Luxurybeddingwith cottonSilksheets Crowning Touch sheets 100%Tencel Crowning Touch

t.

create uniqueproductrangewithcosteffectiveoptions. at present, but withmorefocus, thrust and endeavorsto alongsimilarlines,as Future R&Defforts will continue 3. DevelopmentofAntiSoilcarpet 2. DevelopmentofAntiStaincarpet 1. DevelopmentofLurexcarpet CARPETS 3. DevelopmentofAntiStainrugs 2. Developmentofnewtexturerug 1. Developmentofmultiplyreversiblerug RUGS Development ofnewrangesheetswithinnovations SHEETS 3. Developmentofnewrangetowelcollectionswith 2. DevelopmentofUVsensorbeachtowel 1. DevelopmentofCottonlinentowelswithfibers TOWELS 3. FutureplanofACTION 4. ExpenditureonR&D percentage oftotalturnover Total R&Dexpenditureasa Total Recurring Capital innovations

(Rs. inMillion) 275.38 224.07 0.66% 51.31 1. http://www.welspunindia.com/policy/CSR-Policy.pdf of yourCompany,aweb-linkwhichisasunder: on thewebsite is disclosed CSR Policy The Company’s • • • These 3E’sareimplementedthrough: i.e.: in the3E’s Social value.TheCSRvisionisenshrined but itaimedatcreating Corporate Social Responsibility The Company is not only committedfor doing Corporate [Pursuant toclause(o)ofsub-section(3)section134theActandRule9Companies(CorporateSocial programs. the web-linktoCSRpolicyandprojectsor to proposed tobeundertakenandareference including overview ofprojectsorprograms A briefoutline of the Company’sCSRpolicy, Facilitating Governmentinitiatives. Developmental Agencies/Institutions;and Organizations / Tie-ups withNon-Governmental group; The programs organizedby the trust created by the iii. ii. i. Environment andHealth. Empowerment ofwomen;and Education; Corporate SocialResponsibility(CSR) Responsibility) Rules,2014] Annexure 4 5. 4. 3. 2. TheCompositionoftheCSRCommittee. vrg nt rft f h Cmay forlast Company three financialyears:Rs.1250.14million. the of profit net Average acts astheSecretarytoCommittee. Member, Mr.ShashikantThorat-CompanySecretary Goenka- - Member;and3)Ms.Dipali Mandawewala an IndependentDirectoras the Chairman; 2) Mr. Rajesh – Sharma viz. 1)Mr.Ramgopal as ondateofthisReport The Committeecomprisesof 3 non-executivedirectors c. b. a. Details of CSR spent during the financial year. million. of theamountasinitem3above)Rs.25.00 Prescribed CSRExpenditure (two per cent during thefinancialyearisdetailedbelow: in whichtheamountspent/committed Manner ifany:Nil Amount unspent, year: financial the for Rs. 25.00million spent be to amount Total

77 Annual Report 2015 Welspun India Ltd. 78 Annual Report 2015 Welspun India Ltd. Chairman ofthe CorporateSocialResponsibility Committee Ram GopalSharma Rajesh Mandawewala *WFHK Trusthasundertaken tospendthisamountfortheScheduleVIIpermittedactivities instructedbytheCompany. and implementation the that monitoring ofCSRPolicy,isin compliancewithCSRobjectivesandPolicyoftheCompany. Committee Responsibility Social Corporate the of behalf on and by confirmed hereby is It 8 7 6 5 4 3 2 1 No. Sr Program Awareness and Environment Tree plantation at Hospital sheets andTVsets towels andbed- Distribution of approved scheme government of toiletsunder Construction poor Donation tohelp Plant Facility drinking waterRO liters capacityand tank of5lakh underground water Construction of Programs Health CheckUp government recognized by girls inhostels – facilitiesto55 Padhao abhiyaan Beti Bachao Schools Government Project with20 Quality Education activity identified CSR Projector Health &Society Environment, Health &Society Environment, Health &Society Environment, Health &Society Environment, Health &Society Environment, Healthcare preventive Promote Education Education covered the projectis Sector inwhich Gujarat Anjar, Maharashtra Mumbai, Gujarat Anjar, Gujarat Anjar, Gujarat Anjar, Gujarat Anjar, Gujarat Vapi, Gujarat Anjar, (Location) programs Projects or 145,924 179,613 13,378,285 116,952 1,898,611 190,092 829,000 269,892 wise (Rs.) programs project or (Budget) Outlay Amount Direct Expenditure Direct Expenditure Direct Expenditure Direct Expenditure Direct Expenditure Direct Expenditure Direct Expenditure Direct Expenditure (2) Overheads) projects orprograms Direct expenditureon (Sub-heads: (1) projects orprograms Amount spentonthe Managing Director Staff salariesandoverheads *Contribution toWFHKTrust Total DirectExpenditure 17,008,369 16,862,445 16,682,832 3,304,547 3,187,595 1,288,984 1,098,892 269,892 period reporting the date up to expenditure Cumulative Grand Total (WFHK Trust) Knowledge for Healthand Foundation Welspun agency - implementing Through agency implementing or through spent :Direct Amount 17,008,369 25,002,746 7,143,959 850,418 thereto. sub-section (1) of section 188of the Companies Act, certainarm’slengthtransactionsunderthirdproviso 2013 including ofcontracts/arrangementsenteredintobytheCompanywithrelatedpartiesreferredtoin ofparticulars Form fordisclosure 1. 2. (h) (g) (f) (e) (d) (c) (b) (a) (g) (f) (d) (c) (b) (a) Details ofcontractsorarrangementstransactionsnotatarm’slengthbasis. Details ofmaterialcontractsorarrangementstransactionsatarm’slengthbasis. to section188 Date onwhichthespecialresolutionwaspassedingeneralmeetingasrequiredunderfirstproviso Amount paidasadvances,ifany Date(s) ofapprovalbytheBoard Justification forenteringintosuchcontractsorarrangementstransactions Salient termsofthecontractsorarrangementstransactionsincludingvalue,ifany Duration ofthecontracts/arrangements/transactions Nature ofcontracts/arrangements/transactions Name(s) oftherelatedpartyandnaturerelationship Amount paidasadvances,ifany: Date(s) ofapprovalbytheBoard including thevalue,ifany arrangements ortransactions Salient termsofthecontractsor arrangements/transactions Duration ofthecontracts/ transactions Nature ofcontracts/arrangements/ nature ofrelationship Name(s) oftherelatedpartyand (Pursuant toclause(h)ofsub-section(3)section134theActandRule8(2)Companies N.A. July 30,2014 conditions. considering prevalentmarket total costsandrisk&return both partiesbasedonestimated be negotiatedandagreedtoby products oftheCompanyshall The priceforsaleofthe Perpetual Company Sale ofproductsthe Welspun GlobalBrandsLimited Annexure 5 (Accounts) Rules,2014) Form No.AOC-2 N.A. July 30,2014 conditions. considering prevalentmarket As maybemutuallyagreedperiodically Perpetual Purchase ofpowerandsteam Limited Welspun CaptivePowerGeneration ------

79 Annual Report 2015 Welspun India Ltd. 80 Annual Report 2015 Welspun India Ltd. for thefinancialyearendedonMarch312015accordingtoprovisionsof: Company the by maintained records other and filed returns and forms books, minute papers, books, the examined have I and subjecttothereportingmadehereinafter: in placetotheextent,manner – mechanism and compliance has properBoard-processes and alsothattheCompany hereunder listed provisions statutory the authorized with complied 2015, 31 March on ended year and financial the covering period audit agents officers, its Company, the by andotherrecords provided filed representatives duringthe conduct of secretarial audit,I hereby report that in my opinion, the Company has, during the information the returns also and and forms Company books, minute the by papers, maintained books, Company’s the of verification my on Based and expressingmyopinionthereon. conducts/statutory compliances the corporate for evaluating basis me areasonable that provided in amanner conducted Audit was Secretarial referred toasthe“Company”) practices byWELSPUNINDIALIMITED(hereinafter corporate to good and theadherence statutory provisions of applicable auditofthe compliance thesecretarial I haveconducted NSE Code–WELSPUNINDSeriesEQ BSE ScripCode–514162 CIN: L17110GJ1985PLC033271 Anjar –370110,Gujarat,India. Welspun City,VillageVersamedi, WELSPUN INDIALIMITED, The Members, To, d. c. b. a. v. iv. iii. ii. i. Regulations, 2014 notifiedonOctober282014. Scheme) Guidelines, 1999andtheSecrities andExchangeBoardofIndia (ShareBasedEmployeeBenefits) The SecuritiesandExchange BoardofIndia(EmployeeStockOptionSchemeandEmployee StockPurchase The SecuritiesandExchangeBoard ofIndia(IssueCapitalandDisclosureRequirements) Regulations, 2009; The SecuritiesandExchange BoardofIndia(ProhibitionInsiderTrading)Regulations, 1992; 2011; The SecuritiesandExchangeBoardofIndia(SubstantialAcquisition ofSharesandTakeovers)Regulations, 1992 (‘SEBIACT’):- The followingRegulationsandGuidelinesprescribedunder theSecuritiesandExchangeBoardofIndiaAct, Foreign DirectInvestment,OverseasInvestmentand ExternalCommercialBorrowings; Foreign ExchangeManagementAct,1999andtherules regulationsmadethereundertotheextentof The DepositoriesAct,1996andtheRegulationsBye-laws framedthereunder; The SecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder; The CompaniesAct,2013(theAct)andtherulesmadethereunder; [ Pursuanttosection204(1)oftheCompaniesAct,2013andruleNo.9

(Appointment andRemunerationPersonnel)Rules,2014] FOR THEFINANCIALYEARENDEDMARCH31,2015

SECRETARIAL AUDITREPORT Annexure 6 Form No.MR-3

Uday Sohoni upon only) paise conversion ofemployeestockoptions(ESOPs). sixty and (twenty-five 25.60 rupees of premium a at each only) (Ten 10 rupees of shares equity only) Four Hundred the companyhasissued1,13,400(OneLacThirteenThousand the auditperiod I furtherreportthatduring of thecompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsguidelines. I further reportthat there areadequatesystems and processesinthe company commensuratewiththe size andoperations the minutes. as partof members’ views,ifany;arecapturedandrecorded the dissenting are carriedthroughwhile Majority decisions agenda itemsbeforethemeetingandformeaningfulparticipationatmeeting. at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the were sent Adequate noticeisgivento all directorstoscheduletheBoardMeetings.Agendaanddetailednotesonagenda place duringtheperiodunderreviewwerecarriedoutincompliancewithprovisionsofAct. inthecompositionofBoardDirectorsthattook Directors. Thechanges Non –ExecutiveDirectorsandIndependent Directors, of Executive balance with proper constituted is duly of theCompany of Directors that theBoard I furtherreport Board Meetings,thereforeexaminationoftheapplicableclausesisnotmade. the SecretarialStandardswithrespecttoGeneraland the auditperiod,CentralGovernmenthadnotapproved During and TheNationalStockExchangeofIndiaLimited. I with theListingAgreementsenteredintobyCompanyBombayStock Exchange have alsoexaminedcompliance CP 10916 ACS 29359 Practising CompanySecretary h. g. f. e. Company duringtheauditperiod) The SecuritiesandExchangeBoardofIndia(BuybackSecurities)Regulations,1998;(Notapplicabletothe the Companyduringauditperiod)and The SecuritiesandExchangeBoardofIndia(DelistingEquityShares)Regulations,2009;(Notapplicableto 1993 regardingtheCompaniesActanddealingwithclient; The SecuritiesandExchangeBoardofIndia(RegistrarstoanIssueShareTransferAgents)Regulations, applicable totheCompanyduringauditperiod) The SecuritiesandExchangeBoardofIndia(IssueListingDebtSecurities)Regulations,2008(Not

April 29, 2015 Mumbai

81 Annual Report 2015 Welspun India Ltd. 82 Annual Report 2015 Welspun India Ltd. REPO GO CORPORATE VERNANCE T 83 Annual Report 2015 Welspun India Ltd. 84 Annual Report 2015 Welspun India Ltd. July 30,2014,November05, 2014, December15,2014andJanuary29,2015. 2014, 20, May dates following the on 2014-15 year financial the during held were Directors of Board the of meetings Five C=Chairman, M=Member. Director, L=Lenders, E =ExecutiveDirector,NENon-Executive NI =NonIndependent, P =Promoter,I = Independent, Abbreviations: Grievance Committeealoneconsidered Share TransferandInvestor of Relationship, the AuditCommitteeandStakeholder’s @ Chairmanship/membership * Resignedw.e.f.April29,2015. The compositionandcategoryofdirectorsrelevantdetailsrelatingthemaregivenbelow: II. accountability andintegrity.Viewchart1.1onfacingpage practice,Boardlaysstrongemphasisontransparency, goodCorporateGovernance In ordertoattainthehighest-level the Company,its of members andotherstakeholders. The BoardsupportsthebroadprinciplesCorporateGovernance. The Board of Directors of the Company acts as a trustee and assumes fiduciary responsibility of protecting the interests of I. REPORT CORPORATE GOVERNANCE 0) Ms.DipaliGoenka– (09) (08) Mr. Rajesh Mandawewala – Mr.RajeshMandawewala– (08) (07) Mr. ArvindKumarSinghal- (07) (06) Mr. ArunTodarwal-Director (06) (05) Mr. Ajay Sharma - Nominee Mr.AjaySharma-Nominee (05) (04) Mr. Apurba Kumar Dasgupta- Mr.ApurbaKumarDasgupta- (04) (03) *Mr.DadiEngineer–Director (02) Mr. RamGopalSharma- (02) (01) Mr. BalkrishanGoenka- (01) Name oftheDirector BOARD OFDIRECTORS PHILOSOPHY ONCORPORATEGOVERNANCE Executive Director Managing Director Director IDBI Bank Director Director Chairman P, E,S P, E,S NE, NI NE, I NE, NI,L NE, I,S NE, I,S NE, I,S S C, P,NE, Category 3 5 3 4 5 3 4 5 4 2014-15 the Year during Attended Meetings Board - Yes - Yes - Yes - Yes - AGM at theLast Attendance 10 10 4 9 2 6 7 5 11 Pub. Company) (as lastdeclaredtothe Directorship No. ofother 4 7 9 2 - 6 4 1 5 Pvt 2 12 - - - - 6 Corporate Other Body - 3M - 3C, 6M - 2C, 1M 2C, 3M 2C, 1M 1C, 8M Company)@ to the declared (as last Companies other including Committees No. ofBoard/ Chairman in Member / Chart 1.1 Auditor Internal Statutory, Cost, 3 Directors Committee Audit AUDITORS Secretariat CORPORATE GOVERNANCESTRUCTURE CONSULTS 3 Directors Committee Reponsibility Social Corporate ADVISES Report to Welspun IndiaLtd Directors 3 External Committee Renumeration Nomination & Secretary Company SHAREHOLDERS APPOINTS APPOINTS BOARD OFDIRECTORS Internal Directors 1 Externaland2 Committee Relationship and Stakeholders’ Investors’ Grievance Share Transfer, Officer Financial Chief Information sharing Descision making MANAGEMENT SYSTEM MANAGING DIRECTOR Functional Heads 85 Annual Report 2015 Welspun India Ltd. 86 Annual Report 2015 Welspun India Ltd. Section 177oftheCompaniesAct,2013. contained underclause49of the ListingAgreementand by theBoardof Directors to the AuditCommitteeareas Terms of The terms Reference: of reference stipulated were rejectedbytheBoard. made bytheAuditCommittee None ofrecommendations 27, 2015. 27,2015,January29,2015andMarch 23, 2015,January January 15, 2014, December 4, 2014,November5,2014 November 1, 2014, November July 30,2014, July 29,2014, 23, 2014, July May 20,2014, dates May17,2014, following on 2014-15 year financial the during held were Directors Thirteen meetingsoftheAuditCommitteeBoard Thorat actsastheSecretaryofCommittee. Mr. Shashikant of theCompany, Secretary The Company with effectfromApril29,2015. resigned * Mr.DadiEngineer attendance ofthemembersisgivenhereunder: independent director. The composition of the Committee and them areindependent.TheChairmanoftheCommitteeisan of majority The back-ground. finance and accounting having The Committee comprises of 3 non-executive directors III. this Report viz. Mr. Apurba Kumar Dasgupta, Mr. Ram Gopal this Reportviz. Mr. ApurbaKumarDasgupta, Mr. RamGopal of 3independentandnon-executive directorsasondateof Composition of the Committee: The Committee comprises time totime. and reviewthereoffrom Personnel Senior Management remuneration to Personnel and Directors, Key Managerial of, and appointment Torecommend of reference: Terms 2014 andJanuary29,2015. 15, were heldonMay20,2014,July30,December the year under review,fourmeetingsof the Committee directors majorityof which areindependentdirectors.During Committee consistingof non-executive Remuneration and had constitutedNomination The Company COMMITTEE IV. Mr. ArunTodarwal Dasgupta Mr. ApurbaKumar * Mr.DadiEngineer Mr. RamGopalSharma Name oftheMember AUDIT COMMITTEE NOMINATION ANDREMUNERATION Chairman Member/ Member Member Member Chairman Attended Meetings of Number 13 10 10 13 Sharma andMr.ArunTodarwal. thereof areasunder: and thesalientfeatures and seniormanagementemployees The Company followsa policy on remuneration of directors Nomination andRemunerationPolicy: * Mr.DadiEngineerresignedwitheffectfromApril29,2015. • Personnel, seniormanagementpersonnel: Remuneration ofDirectors,KeyManagerial • • Appointment ofdirectors: Mr. ArunTodarwal Mr. RamGopalSharma * Mr.DadiEngineer Dasgupta Mr. ApurbaKumar Name ofMember possible to find out if there is a need for revision in for need is a if there out scale find to possible remuneration the out in theindustry/peergroup totheextent prevalent find periodically shall management The pay. fixed contain may It Company. tothevisionof which mustbealigned benchmarks fit. deem The remuneration must motivate to individuals achieve may Committee the as matters and other theCompany such to specific challenges profitability of to the of executive contribution expected candidate, experience and qualification role, of requirements top industryindicators, Committee shallconsider shallbemutuallyagreed. The time of appointment at the personnel management senior and Personnel to executivedirectors,KeyManagerial The remuneration other personsassociatedwiththeCompany. other Board members, KMPs, senior management and from pressure obligations, interest, of conflict any of void will be able to function as directors ‘Independently’ and qualifications and suitability to ensure that such candidates independent directors,theCommitteeshallreviewtheir While identifyingpersonswhomaybeappointedas laws astocompositionoftheBoard. Companies and anyother agreement listing Act, 2013,standard under requirements specific considered, reputation and qualification possessed by persons being skills, expertise, existing directorsand,background, of of theboarddirectors,diversity,skills,expertise threats to existing composition company’s business, and opportunity the Company,strength,weakness, of business directors, theCommitteeshallconsider persons whomaybeappointed While identifying Member Member Member Chairman Chairman Member/ 1 4 3 2 Attended Meetings Number of • • • • pay hike/incrementtotheconcernedexecutives. to thegrowthofbusiness,profitability,companypotentialityandcriticalroleplayed/ initiatives takenwhileconsidering of performance, the concernedexecutiveaswellCompany, Besides, theCommitteeshalltakeintoconsideration 2013. Act, of theCompanies provisions after complyingwithrequired The non-executiveDirectorsmaybepaidcommission meeting of the BoardorCommitteesuchamountasmaybeprescribedbyCentralGovernmentfrom time to time. per Rs. 1,00,000 not exceed that theamountofsuchfeesshall of BoardorCommitteethereof.Provided meetings by wayoffeesforattending directors mayreceiveremuneration independent The non-executiveDirectorsincluding the BoardofDirectorsonrecommendationNRCandbyshareholders. by approved specifically unless commission, / remuneration any for eligible be not shall directors non-Executive The remuneration forretainingthetalent. 2013. Act, Companies the of 198 section in down laid manner the in computed profit 1% is Commission Act. Tax Income to ProvidentFundistheextentexemptunder each (exceptlifemembership).Further,Contribution membership for twoclub etc areaspertherulesof theCompany.Bothareeligible encashment, Gratuity,otherperquisites Car Facility,Leave Telephone Expense,Reimbursement, Superannuation, In caseofboth,LeaveTravelAllowance, • 6. 5. 4. 3. 2. 1. No. Sr. Particulars ofappointmentof,andremunerationpayableto,wholetimedirectors: Stock Options Severance Fees Notice Period Service Contract Commission Salary Particulars NIL NIL 3 months’notice April 1,2014toMarch31,2017 1% oftheprofit Rs. 17,000,000.00 Managing Director Mr. RajeshMandawewala NIL NIL 3 months’notice April 1,2013toMarch31,2016 1% oftheprofit Rs. 15,000,000.00 Executive Director Ms. DipaliGoenka 87 Annual Report 2015 Welspun India Ltd. 88 Annual Report 2015 Welspun India Ltd. VI. CORPORATESOCIALRESPONSIBILITYCOMMITTEE The compositionoftheCommitteeisgivenhereunder: Director. of theCommitteeisanon-executive The Chairman functioning oftheinvestorsgrievanceredressalsystem. and redresses investors’complaintsandto review the of the ListingAgreement.It looks intotransferof securities Act, 2013 andtheClause49 Section 178oftheCompanies Investors’ GrievanceCommitteeisinaccordancewiththe Share Transfer,and Relationship, The Stakeholders’ Refer toAnnexure4oftheDirectors’ReportforcompositionCommittee. Committeeis formed inaccordancewithSection135of The Corporate SocialResponsibility the Companies Act, 2013. Mr. RajeshMandawewala Mr. BalkrishanGoenka Dasgupta Mr. ApurbaKumar Name oftheMember V. once ineveryfortnightorasandwhenrequired. Meetings of the Committee areto be held scheduled Secretary Compliance Officer: Mr. Shashikant Thorat – Company GRIEVANCE COMMITTEE SHARE TRANSFERANDINVESTOR THE STAKEHOLDERS’RELATIONSHIP, Vocational Training Child & Adult Literacy EDUCATION EMPOWERMENT and SkillDevelopment Womens Livelihood Member Member Chairman Chairman Member/ CORPORATE SOCIAL VALUE and Conservation Water, Waste, Recycling MANAGEMENT ENVIRONMENTAL Water andSanitation Education Medical Careand HEALTH 10 11 12 Attended Meetings GOVERNING MODEL COMMITTEE CSR Activity transfer waspendingasatMarch31,2015. transfer/transmission weretransferred/ transmitted andno than 30days. All the shares/debentures receivedfor as onMarch31,2015formore complaints werepending to the satisfactionof the investors/shareholdersandno under reportwereresolvedwithinthestipulatedtime receivedduringtheyear All thecomplaints/requests hereunder: complaints receivedunderdifferentcategoryisgiven of and number Break-up received. were complaints total 103shareholders During theyearunderreview, Received DuringtheYear Number ofShareholders’Complaints/Requests Total 5 4 3 2 1 No. Sr. Board ofDirectors Executive Director

Nature ofGrievances Others Non ReceiptofFractionalEntitlement Non ReceiptofAnnualReport Non ReceiptofDividend Non ReceiptofShareCertificate Shareholders &Investors Business Partners Social Contribution Customers & Stakeholders Employees Key NGOs Nos 103 03 01 06 73 20 Annexure 1toDirectors’Report VII. 29 28 Meeting General Meeting General Meeting General 27 Meeting th th th SHAREHOLDING OFTHEDIRECTORS-See Annual Annual Annual 25, 2014 September Thursday, 24, 2013 September Tuesday, 31, 2012 December Monday, Meeting of the Date Day & 10.45 am 10.00 a.m. 11.00 a.m. Time above Same as above Same as 110 Gujarat –370 District Kutch, Taluka Anjar, Versamedi, City, Village Welspun Office : Registered Place • • • • • • • • • • • • • • Special Resolutionspassed relatives to directors’ payable revision inremuneration Approving of ExecutiveDirector revision inremuneration Approving Approving transactionswiththerelatedparties held byJVpartner Authorising purchaseofequityshares JV company Approving remunerationpayabletoCostAuditors Companies Act,2013 to alignthesamewithrequirementsunder Alteration ofArticlesAssociationtheCompany outside theregisteredofficeofCompany in India at anyotherplace any othersecurityholders of register and holders; of debenture shares, register for eachclassofequityandpreference separately of Members and index of Register keeping Authorising Appointment ofindependentdirectors liable toretirebyrotation Appointment of Mr. Arvind Kumar Singhal as a director, Welspun GlobalBrandsLimited. Approving investmentofRs.1Croreinsharecapital treasury operations Invest theCompmany’ssurplusfunds,asapartofits Limited. Rs. 65CroreinWelspunCaptivePowerGeneration Making investmentsnotexceedinginaggregateupto Alteration ofArticlesAssociationthecompany Deputy GeneralManagerw.e.f.October1,2012 Appointment ofMs.KushbooMandawewalaasa given hereunder: passedinthelastthreeyearsare special resolutions The detailsof Annual GeneralMeetingsheldandthe VIII. GENERAL BODYMEETINGS 89 Annual Report 2015 Welspun India Ltd. 90 Annual Report 2015 Welspun India Ltd. conducted thepostalballotexercise,natureofresolutionandprocedureforwereasunder: the CompaniesAct, 2013 werepassedthroughpostalballot.Detailsofvotingpatternonthoseresolutions,personwho of and 186 180(1)(c) u/s 180(1)(a), andresolutions conducted were ballots (Two) 2postal review the yearunder During declared byplacingit,alongwiththescrutinizer’sreport,onwebsiteofCompany. ballot papersandotherrelatedor register to the for Company preservation. The results of the postal ballotwere the minutesandthereafter,scrutinizerreturned and signed approved considered, tillthechairman of thescrutinizer under thesafecustody means, remained voting byelectronic topostalballotincluding ballot andallotherpapersrelating The postal is followed. Rules, 2014 and Administration) (Management 22 oftheCompanies in Rule as given Procedure Procedure forpostalballot a. RelatedPartyTransactions IX. c. CodeofConduct b. Resolution Resolution u/s 180(1)(a) u/s 180(1)(a) u/s 180(1)(c) u/s 180(1)(c) u/s 186 u/s 186 ii. PostalBallotNoticedatedJanuary29,2015 i. PostalBallotNoticedatedJuly30,2014 DISCLOSURE last threeyears- during the Exchange orSEBIanystatutoryauthority,on any matterrelatedtocapitalmarkets, Details ofnon-compliancebythecompany,penalties, stricturesimposedonthecompanybyStock A declarationsignedbytheManaging DirectorofyourCompanyisgivenbelow: All Boardmembersandsenior managementpersonnelhaveaffirmedcomplianceofthe same. been putonyourCompany’s website forinformationofallthemembersBoardand managementpersonnel. The Company has Code of Conduct for Board membersandsenior managementpersonnel.A copy of the Code has For related party transactions, refer Note No. 47 (ii)of Notes to Accounts annexedto the Financial Statements. http://welspunindia.com/policy/Policy-on-Related-Party-Transactions.pdf with thestockexchangesisdisclosedonCompany’swebsite andaweblinktheretoisasunder: under Clause49oftheListingAgreement with RelatedPartyTransactionsasrequired policy ondealing Company’s Ordinary Resolution Whether Special/ Ordinary Resolution Whether Special/ Special Special Special Special Special Special None outstanding shares % ofvotespolledon outstanding shares % ofvotespolledon 79.05% 77.65% 77.64% 79.05% 77.64% 79.05% total votespolled % ofvotesinfavor total votespolled % ofvotesinfavor 97.07% 99.99% 100.00% 99.99% 99.99% 97.45% total votespolled % ofvotesagainst total votespolled % ofvotesagainst 2.93% 0.002% 0.00% 0.00% 0.001% 2.55%

postal ballotexercise who conductedthe postal ballotexercise who conductedthe Proprietor ofM/s.Mansi CS Ms.MansiDamania Damania &Associates, Company Secretaries Practicing Company CS UdaySohoni, Secretaries

The

E. D. Policyfordetermining‘material’subsidiaries. X. MEANSOFCOMMUNICATION the ListingAgreement. mandatory requirementsoftheClause49 requirement andadoption ofthenon- Details ofcompliancewithmandatory on thewebsiteofyourCompany. madeto investors ortotheanalystsis alsoavailable institutional thepresentations and release press official at of the Company on thewebsite posted These resultsaresimultaneously Express (EnglishEdition). financial un-audited/audited Financial results inKutchMitra(Gujaratiedition), its published Company bytheBoard.The immediately after they areapproved aresentouttotheStockExchanges of theCompany results financial yearly and half-yearly quarterly, The Exchanges. to the Clause49 of the ListingAgreementwithStock XIII of InternalAuditor”Annexure and (5)-“Reporting / CEO, Director the Managing and Posts oftheChairman mentioned at (3) - “Audit Qualifications”, (4) - “Separate requirement the Companyadoptednon-mandatory and inaddition to theextentapplicable Agreement requirements mentionedunderClause49oftheListing withthemandatory The Companyisincompliance Material%20Subsidiary.pdf http://welspunindia.com/policy/Policy%20on%20 Company’s websiteandaweblinktheretoisasunder: on the is disclosed with thestockexchanges Agreement as required underClause49of subsidiaries the Listing material policy ondetermining The Company’s point No.14totheDirectors’Report. For Whistle BlowerPolicyandVigilMechanism,referto Managing Director Rajesh Mandawewala Codeof the with Conduct forthefinancialyear2014-15. complied have they that affirmation Personnel, the membersofBoardandManagement all from obtained has Company the that confirm hereby I www.welspunindia.com. The XI. GENERALSHAREHOLDERINFORMATION 1. 5. 4. 3. DateofBookClosure: 2. INE 192B01023 ISIN No.(Fordematerializedshares): WELSPUNIND; Series:EQ National StockExchangeofIndiaLimited: 514162 Bombay StockExchangeLimited: shares: Stock Code/ymbolforequity Annual General Meeting Limited. of India Stock Exchange listed ontheTheNational are Debentures Non-convertible Redeemable Stock Exchange Limited,(BSE). The Secured ofIndiaLimited(NSE)andBombay Stock Exchange Shares of your CompanyarelistedonThe National Listing on StockExchanges: Dividend payment date: Financial Year to March31ofthefollowingyear. Gujarat -370110. at“Welspun Dist. Kutch, Anjar, Taluka Versamedi, City”, Village Company your of Office Registered p.m. atthe at 3.00 August 31,2015 Monday, to Wednesday, June 24, 2015 (both days inclusive). (both 24, 2015 to Wednesday,June any datethereafter. of theCompanyisApril1ayear Monday, June22,2015 Septmber 01, 2015 or shall beheldon The Equity Continued... 91 Annual Report 2015 Welspun India Ltd. 92 Annual Report 2015 Welspun India Ltd. 7. 6. March-2015 February-2015 January-2015 December-2014 November-2014 October-2014 September-2014 August-2014 July-2014 June-2014 May-2014 April -2014 Month May-2014 April –2014 June-2014 July-2014 August-2014 September-2014 October-2014 November-2014 December-2014 January-2015 February-2015 March-2015 Sensex under: Performance in comparison to broad-based indices i.e. BSE - Sensex and NSE- S&PNifty isas 21,000.00 22,000.00 23,000.00 24,000.00 25,000.00 26,000.00 27,000.00 28,000.00 29,000.00 30,000.00 20,000.00 Limited, MumbaiandtheNationalStockExchangeofIndiaLimitedareasunder: Stock Marketpricedata,high on theBombayStockExchange and low price ofequityshares Month 2014 BSE &WelspunIndiaLimited Apr 2014 May 2014 Jun 2014 July 2014 Aug (Sensex) BSE Index Month 2014 Sep High (Rs.) 2014 Oct BSE 2014 Nov 148.00 187.70 243.00 236.25 310.25 321.00 407.15 389.00 384.90 354.50 2014 400.00 Dec 137.90 2015 27,957 29,361 29,182 27,499 28,693 27,865 26,630 26,638 25,894 25,413 24,217 22,417 Welspun IndiaLimited Sensex Jan 2015 Feb 2015 Mar Share (Rs.) Closing priceof 100.00 250.00 400.00 Low (Rs.) Share Price 117.00 94.05 125.10 184.55 210.00 213.90 277.00 300.35 293.15 305.10 345.00 319.50

20,000.00 NIFTY 353.50 350.10 383.95 330.30 373.35 298.30 298.30 217.95 238.20 175.80 124.90 128.70 6,500.00 7,000.00 7,500.00 8,000.00 8,500.00 9,000.00 2014 (S&P Nifty) NSE Apr NSE &WelspunIndiaLimited 2014 May High (Rs.) 2014 Jun 2014 July 2014 Aug Month 138.00 148.00 187.80 243.95 237.00 311.65 321.00 407.70 390.00 384.80 400.00 359.90 2014 Sep 8,491 8,901 8,808 8,282 8,588 8,322 7,964 7,954 7,721 7,611 7,229 6,696 2014 Oct NSE 2014 Nov Share (Rs.) Closing priceof 2014 Dec Low (Rs.) 2015 Jan Welspun IndiaLimited Sensex 2015 Feb 2015 Mar 100.00 150.00 200.00 250.00 300.00 350.00 400.00 100.00 116.80 124.70 183.85 209.05 214.00 271.05 298.80 291.00 306.00 345.50 296.80 355.75 351.50 383.25 329.60 372.70 298.85 300.20 217.80 238.55 175.10 125.35 129.15

Share Price

9. 8. Shareholding PatternasonMarch31,2015 11. 10. Upto –500 Shares Number of Total 10,001 andabove 5,001-10,000 4,001-5,000 3,001-4,000 2,001-3,000 1,001-2,000 501-1,000 Ballard Estate, Near Custom House, Mumbai-400 001. Mumbai-400 Custom House, Estate, Near Ballard Marg, Ground Floor,17,R.Kamani Building, Asian IDBI TrusteeshipServicesLimited, Debenture Trustee: WEIL18 NSE ScripCode identification numbers: by the are listedonNSE Company with the following issued Debentures Non-Convertible The Secured Debentures andDebentureTrustee Registrar and Transfer Agent: Distribution ofShareholding: System: Share /DebentureTransfer Fax No.:+91-22–25946969 Tel. No.:+91-22-25946970 Email [email protected] Mumbai –400078. LBS Marg,Bhandup(West), C-13, PannalalSilkMillsCompound, Unit :WelspunIndiaLimited Ltd) (Formerly knownas:IntimeSpectrumRegistry Link IntimeIndiaPrivateLimited Transfer Agentisgivenhereunder: and number ofRegistrar telephone and address Name, holders. debenture of shareholders/ complaints transfer work the share/debenture and to resolve the Registrar andTransferAgenttohandle has appointed Shares underobjectionarereturnedwithintwoweeks. of the documents, if thesamearefoundinorder. transfer inphysicalformwithin15daysfromthereceipt Registrar andTransferAgentregisterssharessentfor shareholders No. of INE192B07111 ISIN Nos. 35,732 37,516 196 126 151 413 774 The Company 59 65 Shareholders Percentage of Our 0.40% 13. 12. 15. 14. 100.00% your Company of equitysharesin for equalnumber right tosubscribe Options carrying 12,600 Stock 2015 on March31, Outstanding as 95.24% 0.52% 0.34% 1.10% 0.15% 0.17% 2.06% ii) i) Refer topointNo.13(ii)theDirectors’Report. share capitalisasunder: conversion date and likely impact on equity Outstanding Employee StockOptions, De-materialization ofsharesandliquidity: subsidiaries Plant locations of the Companyand its under Clause5AoftheListingAgreement. held insuspenseaccount Disclosure ofShares Stock ExchangeofIndiaLimited. The National Limited and Stock Exchange Bombay on the and havereasonableliquidity dematerialized have been equity shares on March31,2015,99.37% Gujarat -396191 District Valsad, Morai, Vapi, Survey No.76,Village District Kutch,Gujarat-370110 Anjar, Versamedi, Taluka Welspun City,Village No. ofShares 100,459,915 95,249,807 2,231,963 date Conversion 30, 2016 or beforeJune At anytimeby 905,134 602,665 385,118 274,157 231,874 579,017 Shares held Percentage of capital share on equity Impact per share of Rs.35.60 each ataprice of Rs.10.00 equity shares by 12,600 equity capital Increase in 0.38% 100.00% 94.81% 0.90% 0.60% 0.27% 0.23% 0.58% 2.22% As 93 Annual Report 2015 Welspun India Ltd. 94 Annual Report 2015 Welspun India Ltd. CP 10916 ACS 29359 Practising CompanySecretary Uday Sohoni more than15/30days,asthecasemaybe. for pending / unattended remaining grievance investor no was there 2015, 31, March at as that certified have Company of the March 31,2015,theRegistrars the yearended during received We statethatinrespectofinvestorgrievance has compliedwiththeconditionsofCorporateGovernanceasstipulatedinabovementionedListingAgreement. given tous,wecertifythattheCompany to theexplanation In ouropinionandtothebestofinformationaccording of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. of theconditions the compliance for ensuring by yourCompany thereof, adopted and implementation limited toprocedures was Our examination of themanagement. is theresponsibility Governance of Corporate ofconditions The compliance March 31,2015,asstipulatedinClause49oftheListingAgreementsaidCompanywithStockExchanges. We of thecompliance have conditions of examined Corporate Governanceby Welspun IndiaLimitedfor the year endedon To TheMembersofWELSPUNINDIALIMITED PRACTICING COMPANYSECRETARY’SCERTIFICATE 16. Tel: +91-22-66136000;+91-22-24908000, Mumbai -400013. Senapati BapatMarg,LowerParel, Kamala MillsCompound, 7th Floor,WelspunHouse, Welspun IndiaLimited The CompanySecretary, e-mail: [email protected] Fax: +91-22-24908020/21 Address forcorrespondence April 29,2015

Mumbai Notes 95 Annual Report 2015 Welspun India Ltd. 96 Annual Report 2015 Welspun India Ltd. FINANCIALS 97 Annual Report 2015 Welspun India Ltd. 98 Annual Report 2015 Welspun India Ltd. Financials Cash flowStatement Profit &LossAccount Balance Sheet Audit Report Consolidated Financials Cash flowStatement Profit &LossAccount Balance Sheet Audit Report Standalone Financials 186 185 184 182 132 131 130 125 the auditreport. standards and matters which are required to be included in accounting the including thereunder made Rules the and standalone financialstatementsbasedonouraudit. information. explanatory other and policies accounting significant the of summary a and ended, then year the for Statement at Flow as Sheet Balance March 31, 2015, the Statement the of Profit and Loss, the Cash comprise which Company”), of statements financial ht ie tu ad ar iw n ae re rm material from free misstatement, whetherduetofraudorerror. are and view fair and true a give that statements financial the of presentation and preparation and completeness of the accounting accuracy records relevant to the the ensuring for effectively operating were that controls, financial internal adequate of maintenance and implementation design, and prudent; and reasonable are that estimates and judgments making policies; accounting appropriate of application and selection irregularities; other of the Company and for preventing and detecting frauds and with the provisions of the Act for safeguarding of the assets maintenance of adequate accounting includes records in also accordance responsibility This 2014. Rules, (Accounts) Companies of 7 Rule with read Act the of 133 Section in to referred standard accounting other any contradict not does it extent the Financial to India of Accountants Chartered of Institute 30, Standard the by issued Accounting Measurement and Recognition Instruments: and (Accounts) 2014 Companies the Rules, of 7 Rule with read Act, the of 133 Section under specified Standards Accounting the withthe inaccordance accounting principles generally accepted in India, including Company the of performance flows cash financial and position, financial the of view fair trueand a of to give preparation statements the financial standalone to these respect with Act”) (“the 2013 Act, Companies the of 134(5) Section in stated matters the for Statements Report ontheStandaloneFinancial Standalone FinancialStatements Management’s Responsibilityforthe Auditor’s Responsibility TO THEMEMBERSOFWELSPUNINDIALIMITED INDEPENDENT AUDITORS’REPORT Standalone Financials 4. 3. 2. 1. We have taken into account the provisions of the Act Our responsibility is to express an opinion on these on opinion an express to is responsibility Our standalone accompanying the audited have We The Company’s Board of Directors is responsible is Directors of Board Company’s The Welspun India Limited (“the

opinion onthestandalonefinancialstatements. audit our for basis a provide to appropriate and sufficient is the overallpresentationoffinancialstatements. evaluating as well as Directors, Company’s the by made estimates accounting the of reasonableness the and used includes also policies accounting the audit of appropriateness An the evaluating controls. such of effectiveness operating the and reporting financial over system controls financial internal adequate an place in has Company the but not for the purpose of expressing an opinion on whether audit procedures that are appropriate in the circumstances, financial the of design to order in view, fair and true a give that statements preparation risk Company’s those the to making relevant In error. or assessments, fraud the auditor considers internal financial control to due whether statements, financial the of misstatement material of risks the of assessment the including judgment, auditor’s the on depend selected procedures The statements. financial the in disclosures the and amounts the about evidence audit financial statementsarefreefrommaterialmisstatement. the whether about assurance reasonable obtain to audit we that the perform and plan and requirements ethical with comply require pronouncements and Standards Those India. of Accountants Chartered of Institute the by issued pronouncements authoritative applicable other and Act the of 143(10) Section under specified Auditing on Standards cash flowsfortheyearendedonthatdate. accounting its and profit its and 2015, 31, March at as Company the of the with conformity in principles generally accepted in India, of the state of affairs view fair and give and the information true required a so manner the in Act give the by required statements financial aforesaid the standalone us, to given explanations the to according Opinion 7 6. 5. 8. We believe that the audit evidence we have obtained obtain to procedures performing involves audit An the with accordance in audit our conducted We In our opinion and to the best of our information and 99 Annual Report 2015 Welspun India Ltd. 100 Annual Report 2015 Welspun India Ltd. Emphasis ofMatter million. Our opinion is not qualified in respect of this matter. the for expense year ended March 31, 2015 would be higher by Rs. 310.70 tax iseventually the Company, the matter the in against decided decision final the If orders. with these against (Appeals) appeals Tax Income of Commissioner preferred the has Company The income-tax. to liable are which nature in revenue as treating incentives orders these passed have authorities tax income The tax incentives as ‘capital receipts’ for income tax added purposes. value and the excise certain of of treatment out Company’s arising depreciation Income-tax unabsorbed incremental the on million 310.70 Rs. earlier aggregating in period recognised assets tax deferred of utilisation to of theOrder. 4 and 3 paragraphs in specified matters the on statement a Annexure the in give we us, to given explanations and we considered appropriate and according to the information as Company the of records and books Act the of checks such the of 143 section of basis the of on and “Order”), the as to referred (hereinafter (11) sub-section of terms in India of Government Central the by issued 2015’, Order, Requirements Report onOtherLegalandRegulatory TO THEMEMBERSOFWELSPUNINDIALIMITED INDEPENDENT AUDITORS’REPORT 9. 10. 11. that: report we Act, the of (3) 143 Section by required As We draw your attention to Note 38, matter relating As required by ‘the Companies (Auditor’s Report) (Auditor’s Companies ‘the by required As d) c) b) a) Accounting Standards specified under the Companies (Accounts) Rules,2014; specified with Section 133 of the Act, read with Rule 7 of the Standards comply standalone Accounting statements aforesaid the financial opinion, our In books ofaccount; the with agreement in are Report this by with dealt Statement Flow Cash the and Loss, and Profit of Statement the Sheet, Balance The our from appears it as examination ofthosebooks; far the by so account kept Company been of have law books by required proper as opinion, our In the for thepurposesofouraudit; necessary all were belief and knowledge our obtained of and sought information and explanations which to the best have We Firm RegistrationNumber:012574N/N500016 For PriceWaterhouseCharteredAccountantLLP Date: April29,2015 Place: Mumbai Membership No.103211 Partner Mehul Desai f) e) iii) ii) i) information andexplanationsgiventous: our knowledge and belief and according to the of best the to and opinion our in 2014, Rules, with accordance Rule 11 in of the Companies (Audit and Auditors) Report Auditor’s the in With respect to the other matters to be included Act. the of (2) 164 Section of terms in director a as appointed being from 2015 31, March on as of Board disqualified is the directors the of none March by Directors, record on on taken as 2015 directors 31, the from representations received written the of basis the On 2015. the by Company during the Fund year ended March 31, Protection and were Education which Investor the to transferred amounts be to required no were There long-term derivative contractsasatMarch31,2015. losses. have not does foreseeable Company The material there which no for 2015 were 31, March contracts at as long-term has Company The financial statements. its standalone in position financial its on 2015, 31, March at as litigations pending of impact the disclosed has Company The iv. iii.

ii.

i. for theyearendedMarch31,2015 and India of as Welspun statements financial of standalone the members on Limited the to date even of Report Auditors’ Independent the of 10 paragraph in to Referred Annexure toIndependentAuditors’Report the aforesaidinternalcontrol system. in weaknesses major correct to failure continuing any we of, informed been us, have nor across, come to neither have given explanations and information the to according and Company, the of records and books the of examination our of basis the on Further, goods. of sale the for and assets fixed and inventory of purchase the for business its of nature size the and Company the the of with commensurate information adequate system an the control is internal there to us, to according given explanations and and opinion, our In (b) of the said Order are not applicable to the Company. (iii) and (iii)(a) 3(iii), Clause of provisions the Therefore, Act. of the 189 Section under maintained register the in unsecured, to companies, firms or other or parties covered secured loans, any granted not has Company The (c) (b) (a) (b) (a) noticed on physical verification of inventory as inventory of compared tobookrecordswerenotmaterial. verification physical discrepancies on The noticed inventory. of records proper inventory the maintaining is Company the opinion, our in records, of examination our of basis the On f netr floe b te aaeet are the Companyandnatureofitsbusiness. Management of size the the to relation in adequate and by reasonable followed inventory of In our opinion, the procedures of physical verification verification isreasonable. confirmed by them. In our opinion, the frequency of lying with third parties, these have substantially been Management during the year. In respect of inventory material in transit has been physically verified by the The inventory excluding stocks with third parties and noticed on such verification. In our opinion, the opinion, our frequency ofverificationisreasonable. In been verification. have such discrepancies on noticed material no havebeen and year the the Company during Management the of by verified physically assets fixed The ul atclr, nldn qatttv dtis and situation, offixedassets. details quantitative including particulars, full The Company is maintaining proper records showing vii. vi. v. on accountofadispute,areasfollows. tax as at March 31, 2015 which have not been added deposited value and excise of duty tax, sales tax, income of dues of particulars The dispute. deposited any of been account on not have which cess and custom of duty service-tax, wealth-tax, of dues no by are examined there Company us, the of records the and us to (b) According to the information and explanations given as applicable,withtheappropriateauthorities. value added tax, cess and other material statutory dues, tax, income tax, excise, of duty customs, of duty tax, service tax, wealth sales insurance, state fund, employees’ provident including dues, statutory depositing in undisputed regular is Company the opinion, our in us, by examined Company the of records the and us to (a) According to the information and explanations given determine to whether theyareaccurateorcomplete. view a with records the of examination detailed a made however, not, have We maintained. and made been have records and accounts prescribed the facie, prima that, opinion the of are and Act, the of Central has been specified under sub-section (1) of the Section 148 by records cost of made maintenance the India, of rules Government the products to of account pursuant respect of where, in Company books the the by reviewed maintained broadly have We notified. of the Act and the rules framed there under to the extent public within the meaning of Sections 73, 74, 75 and 76 the from deposits any accepted not has Company The 101

Annual Report 2015 Welspun India Ltd. 102 Annual Report 2015 Welspun India Ltd. Annexure toIndependentAuditors’Report accordance withtheprovisions oftheCompaniesAct,1956andrulesmadethereunder. (c) Therearenoamountsrequired tobetransferredbytheCompanyInvestorEducation andProtectionFundin ** Stayorderhasbeenobtained * Netofamountspaidunderprotest Gujarat SalesTaxAct,1969 Income TaxAct,1961 Central ExciseAct,1944 Central SalesTaxAct,1958 2003 Gujarat ValueAddedTax, Central ExciseAct,1944 Central ExciseAct,1944 Central ExciseAct,1944 Central ExciseAct,1944 Central ExciseAct,1944 Central ExciseAct,1944 Central ExciseAct,1944 Maharashtra VATAct Central SalesTaxAct,1958 Name ofthestatute penalty andinterest Sales Taxincluding including interest Income Taxdemand Excise Duty interest including penaltyand Central SalesTax interest including penaltyand Value addedTax penalty CENVAT including penalty CENVAT including CENVAT CENVAT CENVAT CENVAT CENVAT penalty including interestand Value AddedTax interest including penaltyand Central SalesTax

Nature ofdues million)* Amount (Rs. in 185.41** 157.00 17.07 21.05 10.56 11.43 1.37 5.84 2.37 7.48 0.17 7.04 1.08 7.52 2006-07 to 2007- 2006-07 to 2007- September 2005 October 2007to 04 and2004-05 2000-01, 2003- 2008-2010 and AY 2005-06to March 2010to August 2010 to July2006 AY 2011-12 March 2005 March 2008 which the Period to 2010-2011 amount 2007-08 2005-06 2005-06 relates 2004 2012 08 08 Tax (Appeal) Commissioner ofIncome Vadodara Sales Tax(Appeals-2), Joint Commissionerof Revenue of Finance,Department Joint Secretary,Ministry Commercial Taxes,Rajkot Joint Commissionerof Commercial Taxes,Rajkot Joint Commissionerof Ahmedabad Appellant Tribunal, CESTAT, Ahmedabad Commercial Taxes,Rajkot Joint Commissionerof Ahmedabad Appellant Tribunal, CESTAT, Ahmedabad CESTAT, Ahmedabad Daman. Commissioner Appeal, (Sales Tax) Deputy Commissioner (Sales Tax) Deputy Commissioner dispute ispending Forum wherethe Firm RegistrationNumber012574N/N500016 For PriceWaterhouseCharteredAccountantLLP xii. xi. x. ix. viii. Annexure toIndependentAuditors’Report Date: April29,2015 Place: Mumbai Membership No.103211 Partner Mehul Desai any suchcasebytheManagement. or noticed Company, the reported during the year, nor have we been informed of by or on fraud material of explanations and information instance any across come neither have we us, to given the to according and accordance India, in in practices auditing accepted generally the out with carried Company, the of records and books the of examination our of course the During been have loans applied forthepurposeswhichtheywereobtained. term the us, to given and information explanations the to according and opinion, our In year, arenotprejudicialtotheinterestofCompany. the during institutions financial or banks from others by taken loans for Company the by given guarantees the of conditions and terms the us, to and given information explanations the to according and opinion, our In the BalanceSheetdate. at as holders debenture or bank or institution financial Company has not defaulted in repayment of dues to any us and the information and explanations given to us, the by examined Company the of records the to According immediately precedingfinancialyear. the in or date that on ended year financial the in losses cash any incurred not has it and year financial the of The Company has no accumulated losses as at the end 103

Annual Report 2015 Welspun India Ltd. 104 Annual Report 2015 Welspun India Ltd. Firm RegistrationNo:012754N/N500016 For PriceWaterhouseCharteredAccountantsLLP This istheBalanceSheetreferredtoinourreportofeven date. The Notesareanintegralpartofthesefinancialstatements. BALANCE SHEETASATMARCH31,2015 Date: Place: Membership No.103211 Partner Mehul Desai Share Capital Shareholders’ Funds Equity andLiabilities Deferred TaxLiabilities(Net) Long-term Borrowings Non-current Liabilities Share applicationmoneypendingallotment Reserves andSurplus Other Long-termLiabilities Long-term Provisions Total Other CurrentAssets Short-term LoansandAdvances Cash andBankBalances Trade Receivables Inventories Current Investments Current Assets Other Non-currentAssets Long-term LoansandAdvances Non-current Investments CapitalWork-in-Progress IntangibleAssets TangibleAssets Fixed Assets Non-current Assets Assets Total Short-term Provisions Other CurrentLiabilities Trade Payables Short-term Borrowings Current liabilities April 29,2015 Mumbai

Note For andonbehalfoftheBoardDirectors Date: Place: Company Secretary Shashikant Thorat DIN: 00270175 Chairman Balkrishan Goenka 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 3 7 6 5 4 8 9 April 29,2015 Mumbai

March 31,2015 AsAt 12,786.03 13,321.24 48,268.60 48,268.60 18,955.76 1,004.60 1,121.44 1,107.77 4,126.21 2,666.24 3,866.03 7,816.80 1,217.82 6,163.43 1,533.50 5,541.43 5,078.15 7,380.95 861.14 896.08 134.47 921.88 31.12 5.11 Date: Place: Chief Financial Officer Altaf Jiwani DIN :00007179 Managing Director Rajesh Mandawewala - April 29,2015 Mumbai March 31,2014 AsAt (Rs. million) 13,353.62 41,405.79 41,405.79 12,505.67 9,489.31 1,003.47 2,393.07 1,916.22 2,183.03 6,872.30 1,212.87 7,069.14 5,239.35 2,793.69 4,298.94 8,123.69

925.53 980.35 647.08 435.23 896.51 432.97 35.32 0.52 3.70

Date: Place: Membership No.103211 Partner Mehul Desai FOR THEYEARENDEDMARCH31,2015 STATEMENT OFPROFITANDLOSS Firm RegistrationNo:012754N/N500016 For PriceWaterhouseCharteredAccountantsLLP This istheStatementofProfitandLossreferredtoinourreportevendate. The Notesreferredareanintegralpartofthesefinancialstatements. -Basic (March 31,2014:Rs.10)] year Earnings PerShare(Rs.)[Nominalvaluepershare:Rs.10 the for Profit -Diluted -DeferredTax -CurrentTax Tax Expense Profit beforetax progressandstock-in-trade Changesininventoryoffinishedgoods,work-in- Purchasesofstock-in-trade Costofmaterialsconsumed Expenses Other Income Total expenses Otherexpenses Depreciationandamortizationexpense Financecosts Employeebenefitsexpense Total Revenue Revenue fromOperations(Net) Less :ExciseDuty Revenue fromOperations(Gross) April 29,2015 Mumbai

For andonbehalfoftheBoardDirectors Date: Place: Company Secretary Shashikant Thorat DIN: 00270175 Chairman Balkrishan Goenka

Note 45 29 28 27 26 33 32 31 30 25 April 29,2015 Mumbai

March 31,2015 Yearended 21,796.26 38,162.31 45,019.79 44,075.62 44,925.99 5,101.36 1,523.20 6,857.48 9,283.73 2,662.90 1,806.37 3,253.32 (700.31) 232.92 944.17 850.37 50.80 60.04 50.80 Date: Place: Chief FinancialOfficer Altaf Jiwani DIN :00007179 Managing Director Rajesh Mandawewala April 29,2015 Mumbai March 31,2014 Yearended (1,427.28) (1,034.00) (Rs. million) 19,717.89 35,901.94 36,348.27 35,312.03 35,364.63 1,575.25 1,036.24 7,138.56 6,227.92 1,439.14 2,342.69 298.36 446.33

69.74 52.60 2.98 2.98 105

Annual Report 2015 Welspun India Ltd. 106 Annual Report 2015 Welspun India Ltd. FOR THEYEARENDEDMARCH31,2015 CASH FLOWSTATEMENT A. B. Interest Income Trade Receivables Adjustments forchangesinworkingcapital: Operating ProfitBeforeWorkingCapitalChanges Dividend Income Interest andOtherExpenses Provision forDoubtfulLoansandAdvances Loss /(Profit)onSaleofFixedAssets Inventories Net ProfitBeforeTax CASH FLOWFROMOPERATINGACTIVITIES Trade andOtherPayablesProvisions Deposits Loss /(Profit)onSaleofBonds/Certificate Mutual Funds Loss /(Profit)onRedemption/SaleofUnitsin Unrealised ForeignExchangeDifferences Loans andAdvancesOtherAssets Depreciation andAmortisationExpenses Adjustments for: Income Taxpaid Cash FlowGeneratedfromOperations Net CashFlowfromOperatingActivities Progress Purchase ofFixedAssetsandCapitalWork-in- CASH FLOWUSEDININVESTINGACTIVITIES (Net) Investment inFixedDepositsandMarginMoney Capital Subsidy Sale ofFixedAssets Sales/ (Purchase)ofInvestment (Net) Interest Received Dividend Received Net CashFlow usedinInvestingActivities

March31,2015 FortheYear Ended (1,683.00) (1,509.82) 1,806.37 2,662.90 (250.31) (944.50) (12.78) 749.10 (0.13) 34.90

1.94 3.03 1.64 March31,2015 FortheYear Ended (3,388.22) (1,422.36) (5,776.35) (5,253.20) 11,105.04 4,247.56 6,857.48 7,716.82 6,294.46 (228.54) 441.96 173.70 95.22 28.03 12.78

March31,2014 FortheYear Ended (1,046.19) (1,772.18) (2,150.06) (1,292.27) (7,178.06) (2,408.70) (9,626.31) (Rs. million) 7,832.81 7,386.48 1,439.14 1,960.58 6,227.92 5,682.75 (207.56) (140.23) (201.77) 5,542.52 (27.84) (87.88) 446.33 129.92 (8.74) (1.44) 52.80 23.56

0.08 8.74 - Date: Place: Membership No.103211 Partner Mehul Desai FOR THEYEARENDEDMARCH31,2015 CASH FLOWSTATEMENT Firm RegistrationNo:012754N/N500016 For PriceWaterhouseCharteredAccountantsLLP This istheCashFlowreferredtoinourreportofevendate. C. 2. 1. NOTES : Dividend Paid Proceeds fromBorrowings(Net) Issue ofDebentures Application MoneypendingAllotment Proceeds fromIssueofEquityShares/Share ACTIVITIES CASH FLOWFROM/(USEDIN)FINANCING Interest andOtherFinanceExpenses Tax onDividendPaid Equivalents (A+BC) Net (decrease)/increaseinCashand Activities Net CashFlow(usedin)/fromFinancing Net IncreaseinCashandEquivalents Cash andEquivalentsattheendofyear the year Cash andEquivalentsatthebeginningof for usebytheCompanyastheseareearmarkedrepaymentofborrowings. Cash and Cash Equivalents as at March 31, 2015 includes fixed deposits of Rs.98.33 million which are not available wherever presentation, year’s applicable. current the with conform to reclassified been have comparatives year’s Previous April 29,2015 Mumbai

March31,2015 FortheYear For andonbehalfoftheBoardDirectors Date: Place: Company Secretary Shashikant Thorat DIN: 00270175 Chairman Balkrishan Goenka Ended

April 29,2015 Mumbai

March31,2015 FortheYear Ended (1,953.46) (1,108.49) 1,000.00 1,450.60 1,517.83 (599.29) (111.42) (67.23) (67.23) 552.17

3.51 Date: Place: Chief FinancialOfficer Altaf Jiwani DIN :00007179 Managing Director Rajesh Mandawewala March31,2014 April 29,2015 Mumbai FortheYear Ended (1,666.45) (Rs. million) 6,210.86 4,321.85 1,517.83 1,279.77 (200.40) 238.06 238.06 (34.06)

11.90

- 107

Annual Report 2015 Welspun India Ltd. 108 Annual Report 2015 Welspun India Ltd. assessed standardofperformance. future benefits from the existing asset beyond its previously the increase they if only value book its to added are asset accumulated depreciation andimpairmentlosses,ifany. less applicable) wherever credit, cenvat of assets andliabilities. of classification non-current or current of purpose the for the equivalents, cash and Company has ascertained its operating cash cycle as 12 months in realisation their and processing for assets of acquisition the between time the the to III Companies Act, Schedule 2013. Based on the the nature of products and in out operating set normal criteria other Company’s and cycle the per as non-current or to insub-section(3C)ofSection211theAct. Financial referred standard accounting other any contradict not does 30, it extent the to India of Standard Accountants Chartered of Institute Accounting the by issued Measurement and and Recognition Instruments: 2013, as Act, 2006, Rules, Companies the 211(3C) of provisions relevant other and amended] Standards) Section (Accounting under [Companies notified standards the accounting with aspects material all in comply to prepared been apply. to continue shall 1956 Standards Act, Companies the Accounting under notified existing the Authority, Reporting any or accounting consultation and recommendation of the National Financial of standards the addendum thereto are prescribed by till Central Government in 2014, Rules, (Accounts) Companies the of 7 Rule with read 2013 Act, Companies the of 133 section to Pursuant basis. accrual accounting accepted generally on the historicalcostconvention in Indiaunder principles the with accordance in Exchange (BSE)andtheNationalStock(NSE). terry mainly Stock Bombay the a on listed is is and products, company limited Company public The textile rugs. and products home linen bed of towels, range wide of 2.2 TangibleAssets 2.1 2: Summary of significant accounting policies 1 :GeneralInformation for theyearendedMarch31,2015 Notes tothefinancialstatements Basisofpreparation

usqet xedtrs eae t a ie o fixed of item an to related expenditures Subsequent (net cost at stated are land except Assets Tangible current as classified been have liabilities and assets All have statements financial these Consequently, prepared been have statements financial These Welspun India Limited (WIL) is a leading manufacturer n port bss n h srih-ie ehd vr the over provided method estimated usefullives. straight-line is the on basis installations) pro-rata a on electrical (except machinery Profit of are and Loss. Statement the which in recognised assets are fixed cost at of carried disposal from arising losses assets, which are assets that necessarily take a substantial qualifying of production or construction acquisition, the to fees andimplementation/integration expenses. method straight-line over a the period computer of five on years. Cost of of software amortised includes license is comprise which assets software Intangible any. if impairment losses, accumulated and amortization accumulated 2.4 BorrowingCosts 2.3 IntangibleAssets basis overtheprimaryperiodoflease. the assets. Companies Act, 2013 in order to reflect the actual usage of the to II Schedule under prescribed life the than lower or to equal is which years 18 to years 7.5 between ranging life useful the over method value down written on depreciated deletions. additions/ such of date the to up from/ pro-rata calculated prescribed under ScheduleIItotheAct.AlsoreferNote14.1. provisions the with accordance in assets few has, of lives ofabove Company useful remaining the realigned usage assets, the mentioned actual the 2014, reflect to 1, required, wherever April from commencing periods accounting for applicability its and Act) (the 2013 Computers Office Equipment Furniture andFixtures Electrical Installation Vehicles Residential andOtherBuildings Factory Building Assets ercain n agbe ses ohr hn ln and plant than other assets, tangible on Depreciation or gains and of, retirement the from arising Losses General and specific borrowing costs directly attributable of net cost, acquisition at stated are Assets Intangible Leasehold improvements are amortised on straight-line on amortised are improvements Leasehold is installations) electrical (except Machinery and Plant is assets fixed to deletions additions/ on Depreciation Act, Companies the of enactment the to Consequent Useful Life 10 10 58 28 3 5 5 deferred taxassets,ifany. unrecognised reassesses group the date, Sheet Balance each At date. Sheet Balance the by enacted substantively or enacted been have that laws tax and rates tax the using be realised. Deferred tax assets and liabilities a are measured is there will be available against which that income such deferred tax assets taxable can extent future sufficient the that certainty to reasonable only forward carried recognised of and are respect assets tax in Deferred assets. prudence tax of deferred consideration the to subject the in prevailing laws taxation respective jurisdictions. the with authorities accordance tax the in to paid be to expected amount tax ismeasured the at Current theperiod. for loss or profit net the of determination the in included are tax, deferred and made foreachinvestmentindividually. and determined being reduction such investments, the of value the in temporary, than other decline, a recognise to made is diminution for provision However, cost. at carried or fair value, whichever is lower. Long-term investments are cost at carried are investments Current investments. term long as classified are investments other All investments. on date, the from which such investments are year made, are classified as current one than more not for held be to 2.6 Inventories 2.5 Investments of ProfitandLossintheperiodwhichtheyareincurred. sale. All other borrowing costs are recognised in Statement or use intended their for ready as substantially are assets the time such until assets, those of cost the to added are sale, or use intended their for ready get to time of period for theyearendedMarch31,2015 Notes tothefinancialstatements 2.7 CurrentTaxandDeferred Deferred tax is recognised for all the timing differences, tax current comprising period, the for expense Tax (b) (a) Investments that are readily realisable and are intended n te siae css eesr t mk the make to sale. necessary costs estimated the completion and of costs the estimated of the course less ordinary business, the in estimate price the selling the is of value production realisable related Net and overheads. costs direct other labor, and finished goods comprises of raw material, ofwork-in-progress direct Cost basis. first-in-first-out on determined is goods traded of Cost basis. average weighted on determined is spares and stores material) and packing (includes materials raw of Cost net and cost of lower realisable value. at stated are Inventories normal incometaxduringthespecifiedperiod. convincing evidence to the effect that the Company will pay credit asset is written MAT down to the the extent of there is amount no longer carrying a the and date Sheet Balance tax income normal during the specified period. Such asset is reviewed pay at each will Company the that evidence convincing is there extent the to and when only asset an income on levied bythesamegoverningtaxationlaws. taxes to relate liabilities tax deferred the and a is there assets tax deferred the where and tax current representing when liabilities offset against assets off set to are right enforceable legally liabilities tax deferred and assets tax Deferred basis. net a on liability the the and asset off set to the settle to intention right an is there and enforceable amounts recognised legally a is there when companies. Employee’s insurance The with policies gratuity group trustees. takes Trust Gratuity through administered is and Profit andLossintheyear whichtheyarise. of statement the in recognised are losses/gains Actuarial (using year. each of end the at determined method) Credit Unit Projected the actuarially is liability Company’s The the on based respective employee’s amount to salary and an the tenure of payment of employment. employment, of sum termination or lump incapacitation death, retirement, a at employees provides vested 1972. Plan Act, Gratuity Gratuity of employees The Payment eligible the with covering accordance Plan”) in “Gratuity (the plan contribution madeonmonthlybasis. asthe Schemes Company does not carry any Contribution further obligations, apart from Defined benefits as Such classified obligations. are further no has Company the where Company Insurance Life SBI to made is employees the contributionsmadeonamonthlybasis. asthe Schemes Company does not carry any Contribution further obligations, apart from Defined benefits as Such classified obligations. are further no has where Company authorities, regulatory the the to made is employees Provident Fund 2.8 EmployeeBenefits Gratuity Superannuation Fund Minimum Alternative Tax (MAT) credit is recognised as recognised is credit (MAT) Tax Alternative Minimum offset are liabilities tax current and assets tax Current Gratuity Fund is recognised by the income tax authorities benefit defined a gratuity, for provides Company The certain for fund superannuation towards Contribution certain for fund provident towards Contribution The 109

Annual Report 2015 Welspun India Ltd. 110 Annual Report 2015 Welspun India Ltd. expense forthe period. as or income as recognised is contract exchange forward a such of renewal or cancellation on arising loss or profit Any change. rates exchange the which in period reporting the in Loss and Profit of Statement the in recognised are contracts such on differences Exchange contract. the of life the over income or expense as exchange amortised is forward contract, of inception the at premium arising discount the or transactions, forecast probable highly and forward exchange contracts in respect of firm commitments and Loss. Profit of Statement the in recognised are items monetary end ofaccountingperiod. monetary the at restated are currency foreign in All liabilities and assets determined. were values the when existed a in denominated foreign currency valuation are reported using the exchange similar rates that other or value fair at of the transaction. All non-monetary items which are carried date the at rate exchange the using reported are currency foreign a in denominated cost historical of terms in carried foreign currencyatthedateoftransaction. the and currency reporting the between rate exchange the amount currency foreign the to applying by recorded are arise. they which in year the in Loss and Profit of Statement the in recognised are gains losses/ Actuarial year. each of end the at method) isactuarially Credit Unit Projected the (using determined liability Company’s The benefits. employee months 12 beyond from the end of the year end are treated as other long term encashed or availed be to expected the unusedentitlementasatyearend. of result a as paid be to expected amount additional the as absences compensated accumulating of cost expected the at measured is same the towards obligation The benefits. the end of the year end are treated as short term employee from months 12 within encashed or availed be to expected Forward ExchangeContractsandSwaps Subsequent Recognition Initial Recognition 2.9 ForeignCurrencyTranslation Compensated Absences for theyearendedMarch31,2015 Notes tothefinancialstatements n epc o frad xhne otat, te than other contracts, exchange forward of respect In other all of restatement on differences Exchange are which items non-monetary date, reporting the at As transactions currency foreign all recognition, initial On cuuae cmestd becs wih are which absences, compensated Accumulated cuuae cmestd becs wih are which absences, compensated Accumulated

noneet f nttt o Catrd conat of Accountants India on‘AccountingforDerivatives’issuedinMarch2008. Chartered of the Institute with of accordance Announcement in ignored the are gains and and Loss market and Profit of Statement to the in recognised are marked any, if losses, are transactions forecast probable highly / commitment firm of account on end year Profit andLossastheyarise. of Statement the in recognised are accounting hedge for qualify not do that instruments hedging the of value fair the in Changes occurs. transaction underlying the when and Loss Profit of Statement the in Reserve recognised be ‘Hedging to Account’ under funds shareholders’ in directly recognised are transactions forecasted hedges probable highly effective of as considered and designated are that fair valuedateachreportingdate. are swaps rate interest and transactions forecast forward probable Accordingly, Measurement”. exchange contracts relating to firm commitments and highly and Recognition Instruments: ‘Financial 30 Standard has Accounting Company adopted the swaps, rate interest and transactions fluctuations currency forecast probable highly foreign and commitments firm to relating with associated risks the to receivedividend isestablished. and therateapplicable. proportion basis taking into account the amount outstanding 2.11 OtherIncome 2.10 RevenueRecognition owr ecag cnrcs usadn a a the at as outstanding contracts exchange Forward instruments hedging these of value fair the in Changes In respect of forward exchange contracts taken to hedge Dividend: Dividend income is recognised when the right time a on recognised is income Interest Interest: (b) (a) on shipmentofdirectexports. Company, recognised are Scheme Market Focus and scheme the by Drawback Duty made DEPB, from arising benefits export exports direct In of customers. with case conditions the and with terms accordance in agreed goods such of export on Drawback Duty recognised are Scheme Market Focus and scheme (DEPB), Duty Book from Pass Entitlement arising benefits export Manufacturer, Support as Company the by made sale of case In with thetermsandconditionsforsales. accordance in documents, relevant other or lading of bill receipts, cargo of date the on recognised are sales Export customers. to dispatch on recognised rebates, are sales discounts, Domestic duties. excise trade and taxes sales of net recognised and contract are the of terms the per as buyer the to transferred are goods the in ownership of rewards Sales are recognised when the substantial risks and cannot bemade. amount the of estimate reliable a or will settle resources to required of be outflow an that probable not either is it where events past from arises that obligation present a or company the of control the within wholly not events future past by from only the occurrence or non confirmed occurrence of one or more arising uncertain be will obligation which of existence possible the events, a is there when and arenotdiscountedtoitspresentvalue. date sheet Balance the at obligation present the settle to are required expenditure the of Provisions estimate best the at measured obligation. the of amount the of estimate will be required to settle the obligation and there is a reliable benefits economic embodying resources of outflow an that probable is it event, past a of result a as obligation present Loss onasystematic/appropriatebasis. and Profit of Statement the in recognized are benefits Tax Sales of nature the in grants, Revenue expense. interest grants, in the nature of interest subsidy are adjusted against are (TUFS) reduced from the gross Scheme value of the Fixed Assets. Revenue Fund under Upgradation granted Technology assets the specific to relating made. grants be Capital will collection ultimate that certain reasonably Impairment 2.12 GovernmentGrants for theyearendedMarch31,2015 Notes tothefinancialstatements 2.13 ProvisionsandContingentLiabilities decreased. in prior accounting periods may no longer exist or may have asset an for recognised loss impairment an that indication also is Assessment done at life. each Balance Sheet date useful as to whether its there is any of end the its at from disposal and asset expected an of flows use continuing the cash from arise future to estimated of value the is use present in Value use. in value its and unit’s price generating selling net cash or asset’s an of higher is amount Recoverable amount. recoverable the to down written amount are recoverable their exceeds value carrying whose Assets made. is unit generating asset/cash the of amount or assets If any such indication exists, an estimate of the recoverable other from unit. generating cash a as considered inflows is assets, of groups cash the of independent generates cash inflows from continuing use that are largely that of assets group identifiable smallest the impairment, assessing of purpose the For impaired. be may intangible) and (tangible asset an that indication any is there whether Contingent Liabilities: Contingent liabilities are disclosed a is there when recognised are Provisions Provisions: is it when for accounted are grants Government Assessment is done at each Balance Sheet date as to as date Sheet Balance each at done is Assessment

Loss onastraight-linebasisovertheperiodoflease. madeunder are lessor Payments operating the leases leases. are charged to the Statement of Profit and by operating retained as classified are ownership of rewards effects ofalldilutive potentialequityshares. the for adjusted is period the during outstanding shares of number average weighted the and shareholders equity to attributable period the for loss or profit net the share, per in resources. For the purpose of calculating diluted earnings equity shares outstanding, without a corresponding change of potential equity shares that have changed the number of for events, such as bonus shares, other than the conversion adjusted outstanding is presented periods all for shares and period the during equity of number average weighted The any. if period, the for thereto tax attributable any and dividends preference deducting after period the for profit in ascertaining the Company’s earnings per share is the net equity considered Earnings period. the during outstanding shares of number average weighted toequity the attributable by theperiod shareholders for loss or profit net the original with investments maturities ofthreemonthsorless. liquid highly short-term and other banks with deposits demand hand, in cash includes of Profit andLossintheperiodwhichtheyareincurred. Statement the in expense an as recognised are costs direct Initial diminished. is asset leased the of use the from derived and benefit which in pattern time Profit the of representative of is Statement which term lease the over basis line the straight a on Loss in operating such recognised classified on are are income leases ownership Lease of leases. rewards operating as and risks the all such leases where the Company has substantially retained As alessee: 2.15 Leases issued bytheInstituteofCharteredAccountantsIndia. Payments and Share-based Employee India on of Note Guidance Board the Exchange and Securities by issued 1999, Guidelines, Purchase Stock Employee and the Scheme per as for accounted accounting treatment prescribed are by Employee Stock Option Schemes” Option Stock 2.14 EmployeesStockOptionSchemes 2.17 EarningsPerShare 2.16 CashandEquivalents As alessor: Leases in which a significant portion of the risks and the risks of portion significant a which in Leases ai erig pr hr i cluae b dividing by calculated is share per earnings Basic equivalents cash and cash statement, flow cash the In and assets tangible certain leased has Company The Equity settled stock options granted under “Employee 111

Annual Report 2015 Welspun India Ltd. 112 Annual Report 2015 Welspun India Ltd. 3 :ShareCapital for theyearendedMarch31,2015 Notes tothefinancialstatements “Related PartyDisclosure”) (b) Sharesheldbyholdingcompanyandsubsidiaryof(HoldingasdefinedinAS-18: EquityShares: (a) Reconciliationofnumbershares subsidiary ofKrishirajTradingLimited) Private limitedwhichinturnisa94.37% (a 78.66%subsidiaryofGoldenarchEstate Welspun InfraDevelopersPrivateLimited Krishiraj TradingLimited Equity Shares: Balance asatthebeginningofyear Rs. 10each 155,500,000 (March31,2014:155,500,000)EquitySharesof Authorised Balance asattheendofyear (Refer Note39) Employee StockOptionScheme Add :SharesissuedtoEmployeesunder each fullypaidup 100,459,915 (March31,2014:100,346,515)EquitySharesofRs.10 Issued,SubscribedandPaidUp Total

Number of Number of 100,346,515 100,459,915 Shares Shares AsatMarch31,2015 AsatMarch31,2015 53,259,650 50,509,877 2,749,773 113,400

Amount Amount 1,003.47 1,004.60 532.60 505.10 March 31,2015 27.50 1.13 AsAt 1,004.60 1,555.00 1,555.00 1,004.60 Number of Number of 100,027,015 100,346,515 Shares Shares As atMarch31,2014 As atMarch31,2014 52,786,965 50,037,192 2,749,773 319,500 March 31,2014 AsAt Amount Amount (Rs. million) (Rs. million) (Rs. million) 1,003.47 1,555.00 1,555.00 1,003.47 1,000.27 1,003.47 527.87 500.37 27.50 3.20 4 :ReservesandSurplus (c) Detailsofsharesheldbyshareholdersholdingmorethan5%theaggregateinCompany for theyearendedMarch31,2015 Notes tothefinancialstatements (e) Sharesallotedasfullypaiduppursuanttocontract(s)withoutpaymentbeingreceivedincash(during5 (d) Balance asattheEndofYear Add :Additionsduringtheyear Balance asatthebeginningofyear Capital Reserve Balance asattheEndofYear Add :Additionsduringtheyear Balance asatthebeginningofyear Capital RedemptionReserve Welspun MercantileLimited Equity Shares: Krishiraj TradingLimited Welspun WintexLimited payment without being receivedincash. Limited Retail Welspun and Company the Limited, Brands Global Welspun between of arrangement scheme of composite shareholders the to erstwhile pursuant the Limited) Retail to Welspun as 2013 known January (Formerly Limited in Brands issued Global Welspun were paid fully each 10 Rs. of shares equity 10,475,496 years immediatelypreceedingMarch31,2015): amounts, inproportiontotheirshareholding. the liquidation, equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential of event the In dividend. interim of case in except Meeting, General Annual ensuing the in shareholders the of approval the to subject is Directors of Board the by proposed case in dividend, The held. share per vote one for eligible is shareholder Each share. per Rs.10 of value par a having shares equity of class one has company The Equity Shares: attachedtoshares Rights, preferences andrestrictions

Number of Shares 11,246,576 50,509,877 8,425,291 March 31,2015 Asat % March 31,2015 11.20 50.28 8.39 AsAt 1,474.72 1,474.72 Number of 478.38 478.38 Shares 11,246,576 50,037,192 8,425,291 March 31,2014 - - Asat March 31,2014 AsAt (Rs. million) 1,474.72 1,474.72 % 478.38 478.38 11.21 49.86 8.40 - - 113

Annual Report 2015 Welspun India Ltd. 114 Annual Report 2015 Welspun India Ltd. * TheCompanyhastransferred 10%oftheCurrentProfitstoGeneralReserve. having nominalvalueofRs.10 pershare. The BoardofDirectorsattheirmeetingheldonApril29,2015 recommendedfinaldividendofRs.7.50perequityshare Note: for theyearendedMarch31,2015 Notes tothefinancialstatements Total Balance asattheEndofYear Transfer toGeneralReserve* Dividend distributiontaxonfinaldividendincrementalshares Final DividendonEquitySharesforPreviousYearincremental shares Dividend distributiontaxonproposedFinaldividendEquityShares Proposed finaldividendonEquitySharesfortheyear[ReferNotebelow] Dividend distributiontaxonInterimdividendEquityShares Profit andLoss Less :IneffectiveportionofcashflowhedgetransferredtoStatement Balance asatthebeginningofyear Hedging Reserve Balance asattheEndofYear Add :Additionsduringtheyear Balance asatthebeginningofyear Securities PremiumAccount Interim dividendonEquitySharesfortheyear Less :Appropriations Add :Profitfortheyear as atApril1,2014onrevisionofusefullife(nettax)[ReferNote14.1] Less :Adjustmentforwrittendownvalueoffixedassetsfullydepreciated Balance asatthebeginningofyear Surplus inStatementofProfitandLoss Balance asattheEndofYear Add :Additionsduringtheyear Balance asatthebeginningofyear General Reserve Balance asattheEndofYear

March 31,2015 AsAt 13,321.24 7,418.95 3,237.80 3,234.90 9,197.56 5,101.36 4,168.08 (68.02) (71.88) 510.14 153.38 753.45 301.28 711.39 510.14 201.25 60.24 68.02 0.02 0.10 2.90 - March 31,2014 AsAt (Rs. million) 9,489.31 4,168.08 3,234.90 3,226.72 4,550.53 4,252.17 (68.02) (68.02) 301.04 201.25 171.41 298.36 29.84 51.16 29.84 0.06 0.35 8.18 - - - - 6 :Long-termBorrowings assets oftheCompany. The Company is in the process of creating security against these debentures by way of first pari passu charge on the fixed of 10.40%p.a.payablehalfyearly.Thesedebenturesare redeemable attheendof3yearsfromdateallotment. The Company has alloted 1,000 debentures on March 31, 2015 aggregating to Rs. 1,000 million, which carry interest rate (a) Natureofsecurityandtermsrepaymentforsecureddebentures: 5 :Shareapplicationmoneypendingallotment for theyearendedMarch31,2015 Notes tothefinancialstatements Rupee TermLoansfromBanks[ReferNote(b)below] Term Loans: below] 10.40% RedeemableNon-convertibleDebentures[ReferNote(a) Debentures : Secured : Foreign CurrencyLoansfromBanks[ReferNote(b)below] Loans fromBanks[ReferNote(c)below] Unsecured : Loan fromFinancialInstitutions[ReferNote(b)below] Total Loan fromOthers[ReferNote(c)below] Share applicationmoneypendingallotment

March 31,2015 March 31,2015 AsAt AsAt 12,786.03 10,543.24 1,000.00 239.77 119.21 877.50 6.31 - - March 31,2014 March 31,2014 AsAt AsAt 13,353.62 (Rs. million) (Rs. million) 12,513.69 103.87 725.32 10.74 0.52 0.52 - - 115

Annual Report 2015 Welspun India Ltd. 116 Annual Report 2015 Welspun India Ltd. (b) Natureofsecurityandtermsrepaymentforsecuredborrowings(otherthandebentures): for theyearendedMarch31,2015 Notes tothefinancialstatements 7 6 5 4 3 2 1 eod ai as cag oe cret ses f the of Company. assets and current over properties charge passu immovable pari second and movable all assets, fixed future and present the over charge passu pari first by secured is million) million 1,032.15 Rs. 1,133.41 : 2014 Rs. 31, (March to amounting loan term Rupee the of Company. assets current over charge passu pari second fixed assets, all movable and immovable properties and future and secured present the is over charge passu pari million) first by 3,428.68 Rs. : million 2014 3,524.14 31, Rs. (March to amounting loan term Rupee passu chargeovercurrentassetsoftheCompany. pari second and properties immovable and movable all assets, fixed future and present the over charge passu pari first by secured is million) 238.77 Rs. : 2014 31, Rupee term loan amounting to Rs. 229.82 million (March passu chargeovercurrentassetsoftheCompany. pari second and properties immovable and movable all assets, fixed future and present the over charge passu pari first by secured is million) 648.50 Rs. : 2014 31, Rupee term loan amounting to Rs. 628.44 million (March the of Company. assets current over charge passu pari second andfuture the present and over properties andimmovable movable all assets, fixed charge passu pari first by secured is million) million 1,536.87 Rs. 1,362.99 : 2014 Rs. 31, (March to amounting loan term Rupee passu chargeovercurrentassetsoftheCompany. pari second and properties immovable and movable all assets, fixed future and pari present the over first charge passu by secured is million) 350.00 Rs. : 2014 31, Rupee term loan amounting to Rs. 260.00 million (March the of Company. assets and current over properties charge passu immovable pari second and movable all assets, fixed future and present the over charge passu pari first by secured is million) million 5,545.17 Rs. 3,786.04 : 2014 Rs. 31, (March to amounting loan term Rupee NatureofSecurity 2021. October in due installment Last 2015. January from commencing installments quarterly 28 in Repayable in due installment Last September 2021. 2014. December from commencing installments quarterly 28 in Repayable 2021. December in due installment Last 2014. April from commencing installments quarterly 32 in Repayable from June 2013. Last installment due in March 2020. commencing installments quarterly 28 in Repayable April in due 2019. installment Last 2012. January from commencing installments quarterly 30 in Repayable January in due 2016. installment Last 2009. April from commencing installments quarterly 28 in Repayable January in due 2016. installment Last 2009. April from commencing installments quarterly 28 in Repayable Terms ofRepayment* (c) Termsofrepaymentforunsecuredborrowings: and StateGovernmentInterestSubsidies/Rebatesexcept itemnumber8,11and12inthetableabove. Convertible Debentures are Non in and the range 12) of 10.93% number to item 12.75% (Previous (except Year above : 11.50% table to 12.85%). the These in loans are Loans eligible Term for Central Long above the on interest of rate The * for theyearendedMarch31,2015 Notes tothefinancialstatements 2 1 12 11 10 9 8 pari passuchargeovercurrentassetsoftheCompany. assets, all movable and immovable properties and second fixed future and present the over charge passu pari first Rs.900.00 million (March 31, 2014 : Rs. Nil) is secured by to amounting institution financial a from loan term Rupee passu chargeovercurentassetsoftheCompany. pari second and properties immovable and movable all pari passu charge over the present and future first fixed asets, by secured is million) 103.87 Rs. 2014: million 31, (March 239.77 Rs. to amounting loan Dollar (B) FCNR current assetsoftheCompany. immovable properties and second pari passu charge over and movable all assets, fixed future and present the over charge passu pari first by secured is Nil) Rs. : 2014 31, (March million 62.50 Rs. to amounting loan term Rupee passu chargeovercurrentassetsoftheCompany. pari second and properties immovable and movable all assets, fixed future and present the over charge pari passu first by secured is million) 1,219.26 Rs. : 2014 31, Rupee term loan amounting to Rs. 4,027.11 million (March current assetsoftheCompany. immovable properties and second pari passu charge over and movable all assets, fixed future and present the over charge passu pari first by secured is million) 146.00 Rs. : 2014 31, (March Nil Rs. to amounting loan term Rupee 31, 2014:Rs.725.32million) Unsecured loan amounting to Rs. 119.21 million (March 31, 2014:Rs.14.66million) (March million 10.73 Rs. to Services amounting Limited Financial Private India Packard Hewlett from Loan NatureofSecurity NatureofSecurity 2020. December in due installment Last 2016. March from commencing installments quarterly 20 in Repayable March in 2021. due installment Last 2015. March, from commencing installments quarterly 28 in Repayable 2024. from March 2017. Last installment due in September commencing installments quarterly 31 in Repayable from March 2016 . Last installment due in June 2023. commencing installments quarterly 30 in Repayable year. the during loan (B) FCNR in converted is Loan This determined uponit'sdrawing. be will repayment of term The loan. term secured a of drawdown a through replaced be will loan This Rate ofInterest11%p.a. beginning instalments from October2012. monthly 59 in Repayable Terms ofRepayment* Terms ofRepayment* 117

Annual Report 2015 Welspun India Ltd. 118 Annual Report 2015 Welspun India Ltd. 7 :Deferredtaxliabilities(Net) for theyearendedMarch31,2015 Notes tothefinancialstatements 9 :Long-termProvisions 8 :OtherLong-termLiabilities Total Rs. 2,899.44million;March31,2014:1,477.08million) (NetofAdvanceTaxandDeductedatSourcesMarch 31,2015: - Taxation(ReferNote33) OtherProvisions: ProvisionforCompensatedAbsences SecurityDeposits -Expensesinadmissibleundersection40(a)oftheIncomeTaxAct,1961 -ProvisionforEmployeeBenefits Tax Act,1961 -ProvisionforUnpaidStatutoryDuesunderSection43BoftheIncome -ProvisionforDoubtfulDebts/Advances DeferredTaxAssetarisingonaccountofTimingdifferencesin: -Depreciation DeferredTaxLiabilitiesarisingonaccountofTimingdifferencesin: Total -Others Total March 31,2015 March 31,2015 (Rs.million) (Rs.million) March 31,2015 As At As At As At 1,107.77 1,025.34 1,121.44 1,209.44 82.43 5.11 29.92 21.34 34.01 5.11 0.65 2.08

March 31,2014 March 31,2014 March 31,2014 (Rs.million) (Rs.million) AsAt AsAt AsAt (Rs. million) 1,002.86 925.53 980.35 924.50 20.09 15.86 33.35 55.85 3.70 5.28 2.75 3.70 banks. Acceptance includesunsecuredvendorfinancingofRs.619.58million(Previousyear1,262.69million)fromvarious Note : 10 :Short-termBorrowings for theyearendedMarch31,2015 Notes tothefinancialstatements 11 :TradePayables assets oftheCompanyandsecondchargeonentirefixedCompany. raw materials,stock-in-process,finishedgoods,semistores,sparesandbookdebtsothercurrent The workingcapitalloans,whichincludescashcreditandpackingfrombanks,aresecuredbyhypothecationof Note : Total Small Enterprises -TotalOutstandingDuesofCreditorsotherthanMicroEnterprisesand [Refer Note53] -TotalOutstandingDuesofMicroEnterprisesandSmall TradePayables Acceptances[ReferNotebelow] -WorkingCapitalLoansfromBanks[ReferNotebelow] Secured: -WorkingCapitalLoansfromBanks Unsecured: Total -CommercialPaper

March 31,2015 March 31,2015 As At As At 7,380.95 5,608.85 1,500.00 5,078.15 2,481.91 2,556.36 272.10 39.88 March 31,2014 March 31,2014 AsAt AsAt (Rs. million) (Rs. million) 8,123.69 7,900.48 4,298.94 2,260.53 1,995.86 223.21 42.55 - 119

Annual Report 2015 Welspun India Ltd. 120 Annual Report 2015 Welspun India Ltd. 12 :OtherCurrentLiabilities for theyearendedMarch31,2015 Notes tothefinancialstatements 13 :Short-termProvisions Current above the of repayment for earmarked are Nil) Rs. : 2014 31, (March million 1,144.90 Rs. of Deposits Fixed (b) been enforced. yet not has 1956 Act, Companies the of 205C Section to corresponds which 2013 Act, Companies the of 125 **Section the of 205C Section under Fund Protection and Education Investor the to payment for due amounts no are There (a) Note: -FromOthers[ReferNote6(c)] -ProvisionforCompensatedAbsences Provisionforemployeebenefits AdvancesfromCustomers SecurityDeposits InterestAccruedbutnotdueonDebentures InterestAccruedbutnotdueonBorrowings -FromFinancialInstitutions[ReferNote6(b)] -RupeeTermLoansfromBanks[ReferNote(b)belowand6(b)] CurrentMaturitiesofLongTermDebt TemporaryOverdraftwithScheduledBanks -FringeBenefitTax(NetofAdvanceMarch31,2015 :Rs.36.11 Others Unpaiddividends[ReferNote(a)below] Total OtherPayables CreditorsforCapitalPurchases EmployeeBenefitsPayable -Provisionformark-to-market lossesonderivatives Statutorydues(includingProvidentFundandTaxdeductedatSource) Total -Provisionfordividenddistribution taxonproposedfinaldivided -Provisionforproposedfinal dividendonequityshares million; March31,2014:Rs.36.11million) equity shares Maturities ofLongTermLoansRs.4,471.21million(March31,2014:1,631.71million) Companies Act,1956asattheyearend.**

March 31,2015 March 31,2015 As At As At 5,541.43 4,471.21 921.88 318.24 364.54 197.35 153.38 753.45 39.93 60.40 22.50 29.86 19.90 4.42 5.60 6.93 0.28 1.90 5.87 7.55 March 31,2014 March 31,2014 AsAt AsAt (Rs. million) (Rs. million) 2,793.69 1,631.71 432.97 323.16 355.29 217.06 301.04 37.57 85.33 34.60 28.39 73.92 51.16 73.93 3.92 4.94 1.90 2.74 - - for theyearendedMarch31,2015 Notes tothefinancialstatements 14 : Tangible Assets

(Rs. million) GROSS BLOCK DEPRECIATION NET BLOCK Deletions/ On As at Additions Accumulated For the Accumulated Adjustments As at March Deletions As at March As at March PARTICULARS March 31, during the upto March Year (Refer upto March during the 31, 2015 during the 31, 2015 31, 2014 2014 year 31, 2014 Note 14.1) 31, 2015 year year Own Assets: Freehold Land 138.05 79.68 - 217.73 - - - - 217.73 138.05 Buildings (Refer Note 14.5) 4,184.87 1,190.00 22.66 5,352.21 813.10 136.03 9.80 939.33 4,412.88 3,371.77 Leasehold Improvements 49.22 - - 49.22 28.85 5.23 - 34.08 15.14 20.37 Plant and Machinery (Refer Notes 22,186.44 7,994.88 468.12 29,713.20 13,494.35 2,502.21 330.93 15,665.63 14,047.57 8,692.09 14.2, 14.3, 14.4, 14.5 and 37) Vehicles 54.24 16.08 8.07 62.25 28.84 7.93 3.61 33.16 29.09 25.40 Furniture and Fixtures 219.81 51.18 5.55 265.44 77.20 37.13 3.84 110.49 154.95 142.61 Office Equipment 110.88 18.60 1.44 128.04 46.06 36.57 1.25 81.38 46.66 64.82 Computers 187.78 19.14 31.00 175.92 137.22 36.43 29.47 144.18 31.74 50.56 Total 27,131.29 9,369.56 536.84 35,964.01 14,625.62 2,761.53 378.90 17,008.25 18,955.76 12,505.67 March 31, 2014 24,645.43 2,662.03 176.17 27,131.29 8,563.12 6,216.55 154.05 14,625.62 12,505.67

Notes : 14.1 The Company has realigned the remaining useful lives of few assets in accordance with the rates prescribed under Schedule II to the Act. Consequently, in case of assets which have completed their useful lives (prescribed under Schedule II to the Act), the carrying value (net value) as at April 1, 2014 amounting to Rs. 71.88 million (net of deferred tax of Rs. 37.01 million) has been adjusted to Reserves and Surplus and in case of other assets the carrying value (net of residual value) is being depreciated over the revised remaining useful lives. As a result of change, depreciation for the current year is higher by Rs. 383.03 million and profit before tax for the current year is lower by Rs. 383.03 million with a consequential impact on profit after tax for the current year. 14.2 Borrowing Costs aggregating Rs.176.17 million (Previous Year: Rs. 88.73 million) attributable to the acquisition or construction of qualifying assets are capitalised during the year as part of the cost of such assets. 14.3 Deletions/ Adjustments for Plant and Machinery includes adjustments for the capital subsidy of Rs. 95.22 million (Previous Year : Rs. Nil) granted under the Technology Upgradation Fund (TUF) Scheme.

14.4 Additions to fixed assets during the year include capital expenditure of Rs. 51.31 million (Previous Year : Rs. Nil) incurred on in-house Research & Development activities [Refer Note 54] 121

Annual Report 2015 Welspun India Ltd. 122 Annual Report 2015 Welspun India Ltd. for theyearendedMarch31,2015 Notes tothefinancialstatements 14.5 The Company has given certain assets on operating lease, details of which are given below:

(Rs. million) Particulars 31-Mar-2015 31-Mar-2014 Buildings Plant and Buildings Plant and Machinery Machinery Gross Block 1.21 35.18 1.21 29.04 Accumulated Depreciation 0.26 32.10 0.22 27.59 Net Block 0.95 3.08 0.99 1.45 Depriciation for the year 0.02 0.29 0.02 -

15 : Intangible Assets

(Rs. million) GROSS BLOCK DEPRECIATION NET BLOCK Deletions/ On Additions Accumulated Accumulated As at March Adjustments As at March For the Deletions As at March As at March PARTICULARS during the upto March 31, upto March 31, 31, 2014 during the 31, 2015 Year during the 31, 2015 31, 2014 year 2014 2015 year year Own Assets: Computer Software 102.40 6.27 3.76 104.91 67.08 10.26 3.55 73.79 31.12 35.32 Goodwill 1.56 - - 1.56 1.56 - - 1.56 - - Total 103.96 6.27 3.76 106.47 68.64 10.26 3.55 75.35 31.12 35.32 March 31, 2014 89.01 14.95 - 103.96 57.27 11.37 - 68.64 35.32

16 :Non-currentInvestments for theyearendedMarch31,2015 Notes tothefinancialstatements InSubsidiaries Unquoted Equityinstruments Trade Investments(valuedatcostunlessstatedotherwise) 14,854,375 23,065,503 66,956,672 20,084,998 1,000,000 5,500,000 668,706 50,700 10,000 10,000 1,500 each fullypaidupofWelspunAnjarSEZLimited (March31,2014:50,700)EquitySharesofRs.10 Developers PrivateLimited each fullypaidupofAnjarIntegratedTextilePark (March 31,2014:10,000)EquitySharesofRs.10 Infrastructure PrivateLimited each fullypaidupofBESADevelopersand (March 31,2014:10,000)EquitySharesofRs.10 as WelspunRetailLimited) Welspun GlobalBrandsLimited(Formerlyknown Preference SharesofRs.10eachfullypaidup (March 31,2014:15,854,375)0%Redeemable Limited) Brands Limited(FormerlyknownasWelspunRetail of Rs.10eachfullypaidupWelspunGlobal (March 31,2014:23,065,503)EquityShares (Formerly knownasWelspunRetailLimited) fully paidupofWelspunGlobalBrandsLimited Cumulative PreferenceSharesofRs.10each (March 31,2014:1,000,000)1%Redeemable 0.10 each,fullypaidupofWelspunUSAInc. (March 31,2014:668,706)EquitySharesofUS$ Welspun CaptivePowerGenerationLimited Redeemable PreferenceSharesofRs.10each (March 31,2014:64,147,487)6%Non-cumulative Generation Limited Rs.10 eachfullypaidupofWelspunCaptivePower (March 31,2014:19,242,513)EquitySharesof in valueofinvestment Less :Provisionforotherthantemporarydiminution Limited, Cyprus 1 each,fullypaidupofWelspunHoldingsPrivate (March 31,2014:1,500)EquitySharesofGBP fully paidupofWelspunZucchi TextilesLimited (March 31,2014:Nil)Equity Shares ofRs.10each March 31,2015 As At 2,200.00 1,524.23 1,281.34 146.88 669.57 200.85 111.52 10.00 29.73 81.79 92.13 0.10 0.10 March 31,2014 As At (Rs. million) 2,200.00 2,524.23 1,281.34 146.88 641.47 192.43 111.52 10.00 29.73 81.79 0.10 0.10 - 123

Annual Report 2015 Welspun India Ltd. 124 Annual Report 2015 Welspun India Ltd. for theyearendedMarch31,2015 Notes tothefinancialstatements In JointVentureCompany a)QuotedEquityInstruments Other Investments(valuedatcostunlessstatedotherwise) c)Others b)UnquotedEquityInstruments Total * AmountisbelowtheroundingnormsadoptedbyCompany 283,500 100 Nil 80 Limited Rs.10 eachfullypaidupofWelspunZucchiTextiles (March 31,2014:2,750,000)EquitySharesof each fullypaidupofWelspunSyntexLimited (March 31,2014:283,500)EquitySharesofRs.10 Investment-IndiafirstSM Limited) (Formerly knownasWelspunPowerandSteel 10 eachfullypaidupofWelspunSteelLimited (March 31,2014:100)EquitySharesofRs. Limited fully paidupofKhaitanChemicals&Fertilizers (March 31,2014:80)EquitySharesofRs.1each in valueofinvestment Less :Provisionforotherthantemporarydiminution Investment-SBILifeInsurance Aggregate amountofUnquotedInvestments Investment-CanaraHSBC Aggregate amountofQuotedInvestments Market ValueofQuotedInvestments Investments Aggregate provisionfordiminutioninvalueof March 31,2015 As At 6,163.43 6,157.83 18.94 13.34 95.13 1.80 0.50 2.90 0.60 5.60 9.74 5.60 * * - March 31,2014 As At (Rs. million) 7,069.14 7,063.54 34.56 18.94 13.34 95.13 1.80 0.30 2.70 0.60 5.60 2.17 5.60 * * 17 :Long-termLoansandAdvances for theyearendedMarch31,2015 Notes tothefinancialstatements -WelspunAnjarSEZLimited -WelspunProjectsLimited -Wel-treatEnviroManagementOrganisationLimited CapitalAdvancestoRelatedParties Unsecured,consideredgood(unlessotherwisestated): -MertzSecuritiesLimited -WelspunRealtyPrivateLimited SecurityDepositstoRelatedParties CapitalAdvancestoOthers Less:ProvisionforDoubtfulLoans/Advances Limited -IntercorporateDeposittoBesaDevelopersandInfrastructurePrivate LoanstoRelatedParties SecurityDepositstoOthers Total Less:ProvisionforDoubtfulBalances -ConsideredDoubtful -ConsideredGood Authorities -BalanceswithCustoms,Excise,SalesTaxandotherGovernment Less:ProvisionforDoubtfulAdvances -ConsideredDoubtful -ConsideredGood AdvancesRecoverableinCashorKindforValuetobeReceived -IntercorporateDeposittoWelspunAnjarSEZLimited March 31,2015 As At 1,217.82 842.35 106.18 106.18 154.23 75.00 62.25 15.56 15.56 73.45 11.49 30.00 41.49 30.00 11.49 32.91 48.05 48.05 2.00 4.19 8.00 - March 31,2014 AsAt (Rs. million) 1,212.87 736.93 142.25 111.68 111.68 157.79 15.56 15.56 84.24 46.11 46.11 12.48 30.00 42.48 30.00 12.48 42.29 75.00 8.00 - - - 125

Annual Report 2015 Welspun India Ltd. 126 Annual Report 2015 Welspun India Ltd. 18:OtherNon-currentAssets for theyearendedMarch31,2015 Notes tothefinancialstatements 19 :CurrentInvestments FixeddepositswithBanksmaturityperiodmorethan12months StatusholderIncentiveScripsinHand MarginMoneyDepositAccounts InterestAccrued-Others InterestAccruedonLoangiventoWelspunAnjarSEZLimited InterestAccruedonDeposits Less:ProvisionforAccruedInterest Total InvestmentinBonds (AtCostormarketvaluewhicheverisless) NonTrade-(Quoted) 1,720 1,660 50 41 19 10 8 - - Value ofRs.1,000,000each Utpadan NigamLimited05/01/2027 BondsofFace (March 31,2014:Nil)8.65% Rajasthan RajyaVidyut Bonds ofFaceValueRs.1,000,000 each (March 31,2014:Nil)9.55% Canara BankPerpetual 1,000,000 each Commerce PerpetualBondsofFaceValueRs. (March 31,2014:Nil)9.48%OrientalBankof 1,000,000 each of IndiaLimited20/05/2027BondsFaceValueRs. (March 31,2014:Nil)7.93%PowerGridCorporation Value ofRs.25,000each Corporation ofIndiaLimited05/11/2037BondsFace (March 31,2014:Nil)9.90%IndustrialFinance Value ofRs.25,000each Corporation ofIndiaLimited05/11/2027BondsFace (March 31,2014:Nil)9.90%IndustrialFinance of Rs.1,000,000each Corporation Limited31/05/2023BondsofFaceValue (March 31,2014:Nil)8.06%RuralElectrification of FaceValueRs.100each (March 31,2014:2,830,000)7.40%GOI2035Bonds of FaceValueRs.100each (March 31,2014:1,500,000)8.30%GOI2042Bonds March 31,2015 March 31,2015 As At As At 134.47 94.98 28.21 3.23 3.50 0.96 7.09 3.50 49.78 41.41 19.00 44.03 43.53 10.12 8.61 - - March 31,2014 March 31,2014 AsAt As At (Rs. million) (Rs. million) 896.51 681.49 118.46 271.14 164.09 94.26 2.30 3.50 3.50 ------20 :Inventories for theyearendedMarch31,2015 Notes tothefinancialstatements TradedGoods FinishedGoods Work-in-Progress PackingMaterials Rs. 69.30million) RawMaterials(IncludesintransitRs.47.80million;March31,2014: Total Stores,Spares,DyesandChemicals Total Others Terry Towels,BedLinenProducts,Carpet,Rugs&Bathrobes (a)DetailsofGoodsManufactured DetailsofInventory: 500,000 500,000 500,000 Total 243 101 74 25 60 Market Valueofquotedinvestments Value ofRs.1,000,000each (2014 -15-SeriesII)TierIPerpetualBondsofFace (March 31,2014:Nil)10.75%IDBIBankLimitedOmni Perpetual BondsofFaceValueRs.1,000,000each (March 31,2014:Nil)10.00%IndianOverseasBank Bonds ofFaceValueRs.1,000,000each (March 31,2014:Nil)9.84%AirIndia27/09/2026 Aggregate amountofquotedinvestments Value ofRs.100each (March 31,2014:Nil)8.30%GOI2042BondsofFace Value ofRs.100each (March 31,2014:Nil)8.60%GOI2028BondsofFace Face ValueofRs.100each (March 31,2014:Nil)8.27%GOI09/06/2020Bondsof Bonds ofFaceValueRs.1,000,000each (March 31,2014:Nil)10.40%VijayaBankPerpetual Value ofRs.1,000,000each Utpadan NigamLimited26/03/2027BondsofFace (March 31,2014:Nil)8.74%RajasthanRajyaVidyut March 31,2015 March 31,2015 As At As At 7,816.80 3,174.71 3,324.84 797.02 797.02 187.60 325.75 765.70 896.08 31.32 920.27 259.18 896.08 101.00 6.88 74.01 27.49 53.68 53.79 51.33 59.12 March 31,2014 March 31,2014 AsAt As At (Rs. million) (Rs. million) 6,872.30 2,581.71 3,255.08 435.23 679.53 446.85 435.23 679.53 158.48 180.44 667.65 17.06 11.88 ------127

Annual Report 2015 Welspun India Ltd. 128 Annual Report 2015 Welspun India Ltd. for theyearendedMarch31,2015 Notes tothefinancialstatements 21 :TradeReceivables 22 :CashandBankBalances -ConsideredGood DebtsOutstandingforaperiodexceedingsixmonthsfromthedatetheyareduepayment: Unsecured -ConsideredDoubtful Less:ProvisionforDoubtfulDebts Total -ConsideredGood OtherDebts: CashonHand CashandEquivalents -Unpaiddividendaccount -Fixeddeposits* OtherBankbalances -Fixeddeposits(lessthan3monthsmaturity)* -Incurrentaccounts Bankbalances Total Others Terry Towels,BedLinenProducts,Carpet,Rugs&Bathrobes (b)DetailsofWork-in-Progress Total Terry Towels,BedLinenProducts,Carpet,Rugs&Bathrobes (c)DetailsofTradedGoods Total Term Borrowings Fixed Depositsearmarkedfor repaymentofCurrentMaturitiesLong Company *Includes thefollowingbalances whicharenotavailableforusebythe March 31,2015 March 31,2015 March 31,2015 As At As At As At 3,174.71 1,144.90 3,866.03 3,863.83 1,209.77 1,450.60 1,351.18 2,666.24 2897.19 277.52 98.33 6.88 6.88 2.20 5.15 2.95 2.20 2.95 1.09 5.87 March 31,2014 March 31,2014 March 31,2014 AsAt AsAt AsAt (Rs. million) (Rs. million) (Rs. million) 2,581.71 2,183.03 2,181.43 1,517.83 1,916.22 2405.18 801.97 395.65 714.85 176.53 17.06 17.06 1.60 4.55 2.95 1.60 2.95 1.01 2.74 - 23 :Short-termLoansandAdvances 24 :OtherCurrentAssets for theyearendedMarch31,2015 Notes tothefinancialstatements -WelspunCorpLimited -WelspunCaptivePowerGenerationLimited Limited) -WelspunGlobalBrandsLimited(FormerlyknownasRetail AdvancestoRelatedParties Unsecuredconsideredgood,unlessotherwisestated: -WelspunProjectsLimited Total SecurityDepositstoOthers Authorities BalanceswithCustoms,Excise,SalesTaxandotherGovernment Others AdvancesRecoverableinCashorKindforValuetobeReceived -WelspunUKLimited -WelspunHomeTextilesUKLimited -WelspunUSAInc. -CHTHoldingsLimited as WelspunBOTProjectsPrivateLimited) -AnjarIntegratedTextileParkDevelopersPrivateLimited(Formerlyknown -WelspunSyntexLimited Total GratuityFund(Net) InsuranceClaimReceivable InterestAccruedonDeposits InterestReceivableunderSubventionScheme InterestAccruedonBonds/CertificateofDeposits TechnologyUpgradationFundCreditReceivable March 31,2015 March 31,2015 As At As At 4,126.21 861.14 2,536.04 1,549.38 196.17 639.56 25.41 14.00 1.57 2.11 0.22 8.32 5.39 8.65 0.50 0.03 - - - - - March 31,2014 March 31,2014 AsAt AsAt (Rs. million) (Rs. million) 2,393.07 1,838.43 485.52 647.08 492.14 15.00 20.08 30.23 93.15 25.54 7.12 4.93 4.16 0.24 8.98 6.93 0.50 0.17 1.01 4.33 1.69 129

Annual Report 2015 Welspun India Ltd. 130 Annual Report 2015 Welspun India Ltd. 25 :RevenuefromOperations for theyearendedMarch31,2015 Notes tothefinancialstatements TradedGoods FinishedGoods Sale ofProducts Sales TaxBenefit Other OperatingRevenue Sale ofScrap - FocusMarketSchemeBenefits Export Benefits Job WorkandProcessingCharges Terry Towels,BedLinenProducts,Carpet,Rugs&Bathrobes (b)DetailsofSales(TradedGoods) Others Terry Towels,BedLinenProducts,Carpet,Rugs&Bathrobes (a)DetailsofSales(FinishedGoods) Revenue fromOperations(Net) Less :ExciseDuty Revenue fromOperations(Gross) Others

March31,2015 YearEnded 41,897.59 44,075.62 41,897.59 41,969.46 44,925.99 1,107.27 2,956.53 1,303.31 40545.30 1352.29 494.25 850.37 71.87 71.87 51.70 26.11 45.76 March31,2014 YearEnded (Rs. million) 32,940.49 35,312.03 32,940.49 33,007.21 35,364.63 2,357.42 32380.89 906.18 450.48 970.13 559.60 66.72 66.72 30.63 52.60 20.89 45.83 for theyearendedMarch31,2015 Notes tothefinancialstatements 27 :Costofmaterialsconsumed 26 :OtherIncome Income onStatusholderIncentiveScrips Service Charges TOTAL Miscellaneous Commission onCorporateGuaranteesIssued Exchange Gain(Net) Profit onSaleofFixedAssets OnFixedDeposits Interest Income Openinginventory Raw materialconsumed Profit onSaleofBonds/CertificateDeposits Profit onRedemption/SaleofUnitsinMutualFunds Insurance Claim Dividend Income Rent Cash Discountreceived OnOthers OnBonds OnLoansgiventorelatedpartiesandothers Add:Purchases(net) Less:Inventoryattheendofyear Add:Purchases(net) Openinginventory Packing materialconsumed Less:Inventoryattheendofyear TOTAL March31,2015 YearEnded 20,008.34 3,255.08 3,324.84 1,886.80 158.48 187.60 March31,2015 March31,2015 YearEnded YearEnded 21,796.26 19,938.58 1,857.68 944.17 508.92 134.20 34.13 37.06 12.78 13.25 78.31 39.14 75.90 6.40 0.13 2.88 1.07 - - - March31,2014 March31,2014 YearEnded YearEnded 19,717.89 (Rs. million) (Rs. million) 18,788.62 18,187.81 1,036.24 2,654.27 3,255.08 1,594.51 1,530.08 586.93 101.40 158.48 26.74 37.23 51.04 27.84 73.13 26.85 79.31 94.05 6.40 1.44 8.74 9.18 0.01 - - 131

Annual Report 2015 Welspun India Ltd. 132 Annual Report 2015 Welspun India Ltd. 30 :EmployeeBenefitsExpense for theyearendedMarch31,2015 Notes tothefinancialstatements 29 :Changesininventoryoffinishedgoods,work-in-progressandstock-in-trade 28 :PurchasesofStock-in-Trade Total Staff andLabourWelfare Managerial Remuneration Contribution toProvidentandOtherFunds Salaries, Wages,AllowancesandOtherBenefits Purchases ofStock-in-Trade FinishedGoods Stockattheendofyear: (Increase)/ decreaseinStocks TotalA Work-in-Progress FinishedGoods Less:Stockatthebeginningofyear Stock-in-trade Work-in-Progress TotalB Stock-in-trade (Increase) /decreaseinStocks(A-B) March31,2015 YearEnded 3,978.61 3,174.71 2,581.71 3,278.30 797.02 679.53 17.06 6.88

March 31,2015 March31,2015 March31,2015 YearEnded YearEnded YearEnded 3,253.32 2,701.67 (700.31) 245.88 207.29 98.48 60.04 March 31,2014 March31,2014 March31,2014 YearEnded YearEnded YearEnded (1,034.00) (Rs. million) (Rs. million) (Rs. million) 2,342.69 3,278.30 2,581.71 1,871.84 2,244.30 2,047.59 679.53 356.92 107.65 154.98 69.74 17.06 15.54 32.47 for theyearendedMarch31,2015 Notes tothefinancialstatements I DefinedContributionPlans 1. Contribution toGratuityFund(FundedDefinedBenefitPlan) II DefinedBenefitPlan - Employers'ContributiontoEmployees'PensionScheme* - Employers'ContributiontoEmployees'StateInsurance* - Employers'ContributiontoProvidentFund* in theStatementofProfitandLoss: During theyear,Companyhasrecognisedfollowingamounts - Employers'ContributiontoSuperannuationScheme* Closing PresentValueofObligation Actuarial Loss/(gain)onObligations Current ServiceCost Opening PresentValueofObligation b) ChangeinthePresentValueofObligation Discount Rate a MajorAssumptions The Companyhasclassifiedthevariousbenefitsprovidedtoemployeesasunder:- Benefit/ Exgratiapaid Interest Cost * IncludedinContributiontoProvidentandOtherFunds Expected RateofReturnonPlanAssets Salary EscalationRate@ relevant factors. @ Theestimatesforfuturesalaryincreasesconsideredtakes intoaccounttheinflation,seniority,promotionandother is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service inlinewith retirement, service or whichever isearlier. Company of the from year separation of time the completed at for each payable is same The drawn 1972. Act, last Gratuity of Payment the dayssalary to fifteen equivalent benefit a to entitled is The Company operates a gratuity plan through the “Welspun India Limited Employees Gratuity Trust”. Every employee s r a e y 5 r o f % 8 2014-2015 2014-2015 2014-2015 % p.a. thereafter 103.52 207.29 (18.14) and 6% 203.03 143.06 25.70 76.07 15.94 48.85 13.32 2.00 7.99 7.99 s r a e y 5 r o f % 8 2013-2014 2013-2014 2013-2014 % p.a. (Rs. million) (Rs. million) thereafter (22.44) 143.06 114.35 and 6% 154.98 33.80 18.48 58.32 76.40 7.92 9.43 1.78 9.32 8.70 133

Annual Report 2015 Welspun India Ltd. 134 Annual Report 2015 Welspun India Ltd. for theyearendedMarch31,2015 Notes tothefinancialstatements Total expensesrecognisedintheStatementofProfitand Loss Net ActuarialLoss/(gain)recognisedintheyear Excess ofPlanAssetsoverObligation Expected ReturnonPlanAssets Interest Cost Insurer managedfunds f) MajorCategoryofPlanAssetasa%total Assets Current ServiceCost e) ExpensesRecognisedintheStatementofProfitandLoss Assets recognisedintheBalanceSheetasothercurrentassets Amount notrecognisedasAssets Funded Status Fair ValueofPlanAssets Present ValueofFundedObligation Obligation andtheFairValueofAsset d) ReconciliationofPresentValueDefinedBenefit Expected ReturnonPlanAssets Opening FairValueofPlanAssets Other currentassets(ReferNote24) Recognised under: Contributions Actuarial gain/(Loss)onObligations Closing FairValueofPlanAssets Benefits paid c) ChangeinFairValueofPlanAssets *Included inEmployeeBenefitsExpenseabove March 31,2015 s at As 2014-2015 204.27 204.27 203.03 2014-2015 2014-2015 1.24 (15.55) 144.75 204.27 12.59 57.50 - - 4.98 (12.59) 100.00 59.30* (1.24) 10.96 13.32 48.85 March 31,2014 2013-2014 s at As 2013-2014 2013-2014 (Rs. million) (Rs. million) (Rs. million) (20.01) 118.42 144.75 (10.17) 100.00 144.75 144.75 143.06 40.81* 10.17 36.00 33.80 0.17 7.75 9.43 1.69 1.69 - - for theyearendedMarch31,2015 Notes tothefinancialstatements 31 :FinanceCosts 60.79 million). The liabilityforleaveentitlementandcompensatedabsencesasatyearendisRs.88.03million(March31,2014: III OtherEmployeeBenefit Interest onLongtermborrowings Interest onShortTermborrowings million) (net ofinterestsubsidyRs.841.22million,PreviousYear :Rs.460 Discounting andBankCharges Interest toOthers Interest onDebentures Total Gratuity h) ExpectedContributiontothefundsinnextyear assumptions Acturial gain/(loss)duetochangein plan assets Experience gain/(loss)adjustmentson plan liabilities Experience (gain)/lossadjustmentson (Surplus)/ Deficit Fair ValueofPlanAssets the year Defined Benefitobligationattheendof year andpreviousyears g) Amountsrecognisedincurrent March 31, s at As 2015 204.27 203.03 (9.25) (1.24) 3.27 4.98 March 31, s at As 2014 144.75 143.06 (1.69) 20.14 28.06 0.17 March 31, March 31,2015 s at As 2013 March31,2015 118.42 114.35 YearEnded (4.07) (2.33) (1.03) 19.86 s at As 1,806.37 58.36 700.94 915.75 182.71 March 31, 6.69 0.28 s at As 2012 (6.28) (3.98) 18.33 99.99 93.71 1.88 March 31,2014 March31,2014 YearEnded s at As March 31, (Rs. million) (Rs. million) (Rs. million) s at As 1,439.14 2011 (23.63) 724.93 594.12 104.68 (4.45) 94.01 89.56 15.41 47.16 5.86 0.51 - 135

Annual Report 2015 Welspun India Ltd. 136 Annual Report 2015 Welspun India Ltd. 32 :DepreciationandAmortizationExpense for theyearendedMarch31,2015 Notes tothefinancialstatements 33 :OtherExpenses Stores andSparesConsumed Depreciation onTangibleassets Dyes andChemicalsConsumed Total Amortisation onIntangibleassets Contract LabourCharges Job WorkExpenses Power, FuelandWaterCharges PlantandMachinery Repairs andMaintenance: Others FactoryBuilding Claims,DiscountsandRebates TravellingandConveyance PrintingandStationery RatesandTaxes Rent Directors'SittingFees ElectricityExpenses Freight,ForwardingandCoolieCharges BrokerageandCommission LegalandProfessionalCharges Advertisingand SalesPromotion DesignandDevelopmentExpenses LossonCancellationofForward/ SwapContracts ExchangeLoss(Net) ProvisionforDoubtfulLoans and Advances LossonSaleofBonds/CertificateDeposits LossonRedemption/SaleofUnitsinMutualFunds LossonSale/DiscardingofFixedAssets(Net) PostageandCourier Communication Insurance SecurityExpenses March31,2015 March31,2015 YearEnded YearEnded 2,662.90 2,652.64 2,154.97 3,456.58 857.73 643.11 644.02 140.21 124.41 133.29 130.32 207.79 10.26 54.66 12.80 10.28 65.96 92.82 92.38 69.60 15.24 78.34 34.90 10.73 20.63 73.19 29.78 2.25 5.08 2.48 1.94 3.03 - March31,2014 March31,2014 YearEnded YearEnded (Rs. million) (Rs. million) 6,227.92 6,216.55 1,662.95 2,700.50 534.51 605.81 404.31 110.55 111.49 177.04 149.38 123.54 11.37 42.44 10.24 11.61 86.25 88.51 25.96 11.78 11.92 52.95 26.72 52.80 21.16 1.19 5.61 3.11 8.07 0.08 - - - for theyearendedMarch31,2015 Notes tothefinancialstatements 34 :ContingentLiabilities 2014Rs.76.27million) InterestCost(NetofinterestsubsidyRs.137.31million;March31, ExpensescapitalisedasapartofCapitalWork-in-progress Note : Total Miscellaneous -OutofPocketExpenses -CertificationandOtherMatters -InothercapacityAsTaxAuditors -AsAuditors Auditors'Remuneration CorporateSocialResponsibilityExpenses Donations Total OtherExpenses EmployeeCosts b) a) Excise, CustomsandServiceTaxMatters Income TaxMatters Claims againstCompanynotacknowledgedasdebts Sales Tax Stamp DutyMatter The Company does not expect any reimbursements in respect oftheabovecontingentliabilities. doesnotexpectanyreimbursementsinrespect The Company pending resolutionoftherespectiveproceedings. toestimatethetimingofcashoutflows,ifany,inrespectabove It isnotpracticablefortheCompany Description March 31,2015 March31,2015 YearEnded As at 9,283.73 341.24 135.77 55.41 237.41 207.59 2.24 4.46 79.28 19.81 10.93 22.90 0.17 0.42 0.40 4.20 6.92 March 31,2014 March31,2014 YearEnded Asat (Rs. million) (Rs. million) 7,138.56 237.02 191.58 344.28 135.77 55.04 37.82 32.56 12.88 30.96 0.22 0.40 0.40 4.20 2.24 4.46 - 137

Annual Report 2015 Welspun India Ltd. 138 Annual Report 2015 Welspun India Ltd. 38 37 36 35 :CapitalandOtherCommitments for theyearendedMarch31,2015 Notes tothefinancialstatements b) a) 310.70 million. Rs. by higher be could expense tax current the then Limited, India Welspun against decided eventually is matter the these treating orders passed have in decision final the If orders. aforesaid the against appeal an filed has Company The nature. in revenue as incentives authorities Tax Income purposes. tax income for receipts’ ‘capital as the incentives on Tax million Added Value and 310.70 Excise certain Rs. of treatment aggregating its of out period arising depreciation earlier Income-tax unabsorbed in incremental recognized assets tax deferred utilised has Company The 4,738.09 million. Rs. by higher was 2014 31, March ended year the for expenses amortization and depreciation Accordingly, method. the in change the to due million Rs.107.13 by higher was 2014 31, March to 2013 1, July period the for depreciation 2013 30, June upto period arising from the the change was provided in the for previous year. In addition to million the aforementioned incremental depreciation, 4,630.96 Rs. of depreciation incremental The amended]. as 2006, Rules, Accounting Standard 6 “Depreciation Accounting” notified under Section 211(3C) [Companies (Accounting Standards) balance method for the period from the date on which the assets came into use upto June 30, 2013 in accordance with presentation of the Financial Statements of the Company. Accordingly, depreciation and preparation was appropriate more in result would it that recalculated considered was it as method balance under reducing to method line the reducing their use from etc. straight- depreciation Based onthere-assessment,Companychangedmethodof providing on its plant and machinery (other than electrical installations) after taking into consideration the type of assets, nature of In the previous year, with effect from July 1, 2013, the management re-assessed the method of providing depreciation March 31,2015(March2014:Rs.4,809.63million). (CHTHL). Liability outstanding for which corporate guarantees have been issued aggregates Rs. 3,198.89 million as on 31, (March end Limited), Welspun year USA Inc. (WUSA), the Welspun Captive Power Generation at Limited (WCPGL) Retail and Welspun as CHT as known Holdings (formerly Limited (WGBL) million Limited Brands Global Welspun of 8,960.83 behalf on million) 9,913.94 Rs. Rs. 2014: aggregating guarantees corporate issued has Company The Export Commitmentsonabove. March 31,2015(Rs.22.65millionasat2014).Amountof is yettobefulfilledbytheCompanyRs.61.82millionasat saved onimportsofabovegoodsagainstwhichexportobligation amount ofexportobligationwithinaspecifiedtime.Amountduty to theconditionthatCompanywillfulfill,infuture,aspecified imports ofrawmaterialareallowedtobemadedutyfree,subject allowed tobemadedutyfreeandunderAdvanceLicenseScheme, In accordancewiththeEPCGScheme,importsofcapitalgoodsare Corporate Guarantees(ReferNote36) executed (NetofCapitalAdvances) Estimated valueofContractsinCapitalAccountremainingtobe Other Commitments Capital Commitments Description Description March 31,2015 March 31,2015 As at As at 3,198.89 3,655.21 500.20 March 31,2014 March 31,2014 Asat Asat (Rs. million) (Rs. million) 4,809.63 2,817.40 182.40 for theyearendedMarch31,2015 Notes tothefinancialstatements

39

: DetailsofEmployeesStockOptions arising fromthe Schemehasbeenrecognised. price of the underlying equity shares of the Company was equal to the exercise price of an option, no expense or liability market quoted option, of grant of date the on Since, valuer. independent an by determined been has share underlying of value The granted. options stock of respect in India of Accountants Chartered of Institute the by issued Payments Based Share Employee for Accounting on Note Guidance the and Guidelines SEBI the by permitted as method value Information in respect of options outstanding as at March 31, 2015 respectofoptionsoutstandingasatMarch31, Information in ii) i) as under: price of Rs. 35.60 per equity share (closing market price as on June 30, 2009). The salient features of the Scheme are a at Options”) (“New shares equity to subscribe to right a with Company the of employees to “Scheme”) (the Scheme Options vestedbutnotexercisedattheyearend Options outstandingattheendofyear Options cancelled/lapsedduringtheyear Options exercisedduringtheyear Options grantedduringtheyear Options outstandingatthebeginningofyear Exercise Price Exercise Period Vesting Conditions Number ofOptionsGranted Date ofGrant The compensation costs of stock options granted to employees are accounted by the Company using the intrinsic the using Company the by accounted are employees to granted options stock of costs compensation The n h eet f esto o epomn de o et, einto o ohrie te pin my as o be or lapse may Options the otherwise, or resignation death, exercisable inthemannerspecificallyprovidedforScheme. to due employment of cessation of event the In by Price. vesting Exercise the at their option every for of share equity date one of ratio the the in shares from equity of years number the to 3 subscribing within exercisable be will employee an with vested Options Exercise: tovestateachofthe3rdand4thanniversariesdategrant. - 30%oftheOptionsgranted tovestateachofthe1stand2ndanniversariesdategrant. - 20%oftheOptionsgranted Vesting: Optionstovestoveraperiodoffouryearsfromthedatetheirgrantsasunder: n ue 0 20, h Cmay sud mlye tc Otos EO) ne te mlye tc Options Stock Employee the under (ESOP) Options Stock Employee issued Company the 2009, 30, June On No. ofStockOptions Summary ofStockOptions 12,600 June 30,2009 Rs. 35.60 3 years of theCompanyattimeoptionsareduetovest. The optionswouldvestonlyiftheoptiongranteecontinuestobeinemployment 2,265,000 remaining lifeinyears Weighted Average Options No. of Stock March 31,2015 118,500 12,600 12,600 98,900 7,000 1.25 - Price (Rs.) Weighted Exercise Average Weighted AverageExercisePrice 35.60 35.60 35.60 35.60 35.60 - Options No. of Stock (Rs.) 552,000 118,500 118,500 334,000 March 31,2014 99,500 - Price (Rs.) Weighted Exercise Average 35.60 35.60 35.60 35.60 35.60 35.60 - 139

Annual Report 2015 Welspun India Ltd. 140 Annual Report 2015 Welspun India Ltd.

for theyearendedMarch31,2015 Notes tothefinancialstatements Effect of share- based payment plan on the Balance Sheet and StatementofProfitandLoss: planontheBalanceSheetand Effect ofshare-basedpayment been recognisedbasedonthefairvalueatdateofgrantinaccordancewithBlackScholes’model. The Company’s earnings per share would have been as under, had the compensation cost for employees stock options Option FairValue Weighted Average Option FairValue Dividend Yield Time toMaturity Exercise Price Riskfree Rate Volatility Stock Price Proforma DilutedEarningsPerShare Diluted EarningsPerShareasreported Number ofShares(Weightedaverage) Diluted Proforma BasicEarningsPerShare Basic EarningsPerShareasreported Number ofShares(Weightedaverage) Basic Earnings PerShare Profit aftertaxationasperFairValueMethod Value (netoftax) Less: AdditionalEmployeeCompensationCostbasedonFair Profit fortheyear Variables Deferred StockCompensation share-based paymentplan Expense arisingfromemployee June30, 2010 Vest 1 63.52% 6.15% 14.83 35.60 34.85 20% 2.50 0% March 31,2015 June30, 2011 Grant Date:June30,2009 Vest 2 59.33% 6.31% 16.69 35.60 34.85 20% 3.50 0% 17.49 March 31,2015 June30, 2012 - - 100,426,376 100,415,091 50.80 Vest 3 5,101.21 5,101.36 54.45% 50.80 50.80 50.80 6.46% 17.85 35.60 34.85 0.15 30% 4.50 0% March 31,2014 March 31,2014 June30, 2013 (Rs.million) 100,265,723 2.96 Vest 4 100,173,531 (Rs. million) 53.18% 6.61% 19.42 35.60 34.85 296.79 298.36 30% 5.50 0% 2.98 2.96 2.98 1.57 - - 41 :ExpenditureinForeignCurrency 40 :CIFValueofImports (a) DetailsofRawMaterialsandPackingconsumed 42 :DetailsofConsumptionandPurchases for theyearendedMarch31,2015 Notes tothefinancialstatements Total Others Interest Claims, discount&Rebate Advertisement andSalesPromotion Membership andSubscription Legal andProfessionalCharges Total Repairs andMaintenance Travelling Packing Material Capital Goods Stores &SparesandDyesChemicals Raw Materials Total Packing Materials Fiber Polywadding Bed LinenFabrics Others Fabric Cotton Cotton Yarn Particulars March 31,2015 March 31,2015 March 31,2015 Yearended Yearended Yearended 21,796.26 4,957.33 1,857.68 3,856.97 5,887.00 8,167.83 2,942.03 1,584.14 815.19 358.00 853.59 401.93 97.31 30.06 15.38 20.76 12.99 29.23 4.07 2.38 2.93 8.74 -

March 31,2014 March 31,2014 March 31,2014 Yearended Yearended Yearended 19,717.89 (Rs. million) (Rs. million) (Rs. million) 4,871.34 1,528.45 3,730.97 4,221.45 8,850.73 3,301.99 1,312.45 530.17 309.61 524.27 243.38 49.80 22.24 21.26 13.52 1.86 9.31 0.52 8.53 8.32 - - 141

Annual Report 2015 Welspun India Ltd. 142 Annual Report 2015 Welspun India Ltd. for theyearendedMarch31,2015 Notes tothefinancialstatements

44 :Earningsinforeigncurrency 43 :Dividendremittedinforeignexchange 1) RawMaterialsandPacking (b) ValueofImportedandIndigenousRawMaterials,PackingMaterialsStores,SparePartsConsumed 2) Stores,Spares,DyesandChemicals Amount remitted(Rs.million) Year towhichdividendrelates Number ofsharesonwhichdividendisremitted Total Commission onCorporateGuarantee Revenue fromExportsonFOBbasis Number ofnon-residentshareholders Imported Imported Indigenous Indigenous Total Total Percentage Particulars Particulars Particulars Particulars % % 100.00% 100.00% March 31,2015 March 31,2015 10.98% 89.02% 97.59% 2.41% Yearended Yearended Rs.Million Rs.Million March 31,2015 2013-14and2014-15 March 31,2015 21,796.26 21,271.61 3,012.70 2,682.01 Yearended Yearended 524.65 330.69 197.46 166.61 22,514 30.85 0.13 258 % % 100.00% 100.00% March 31,2014 March 31,2014 91.38% 96.68% Yearended Yearended 3.32% 8.62% March 31,2014 March 31,2014 Yearended Yearended Rs.Million Rs.Million 2012-2013 19,717.89 19,063.14 (Rs. million) 2,008.06 2,197.46 20,086 654.75 189.40 44.09 44.09 0.04 597 - 46 45 :EarningsperShare for theyearendedMarch31,2015 Notes tothefinancialstatements : SegmentInformationfor theyear endedMarch31,2015. ii) i) Profit afterTax(A)(Rs.inmillion) the year(B) Weighted averagenumberofequitysharesoutstandingduring Add: Weightedaverageoutstandingemployeestockoptions Number ofSharesforDilutedEarningsPerShare(C) Diluted earningspershare(A)/(C) Basic earningspershare(A)/(B) Nominal valueofanequityshare(Rs.) have separatereportablegeographicalsegmentsforMarch2015. not does Company the Consequently India. in located customers to sales in engaged primarily is Company The GeographicalSegments: Secondary Information about reflected inthefinancialstatementsforyearendedMarch31,2015andasonthatdate. as all are period the during depreciation for charge of amount total assets, liabilities, segment acquire segment to segment incurred cost of total the amount carrying Thus, total segment. assets, segment primary of amount single Accounting carrying a total results, constitute segment revenue, of to context considered the is in Reporting which, Segment Textiles on Home 17 of Standard business the in engaged exclusively is Company The PrimaryBusinessSegment Information about Particulars March 31,2015 YearEnded 50.80 100,415,091 100,426,376 5,101.36 11,285 50.80 10.00

March 31,2014 Year Ended 2.98 100,173,531 100,265,723 (Rs.million) 298.36 92,192 10.00 2.98 143

Annual Report 2015 Welspun India Ltd. 144 Annual Report 2015 Welspun India Ltd. for theyearendedMarch31,2015 Notes tothefinancialstatements 47 :RelatedPartyDisclosures i) Relationships (b) (a) Subsidiary Companies Holding Company Control Joint VentureCompany Welspun ZucchiTextilesLimited(WZTL)(witheffectfromJanuary 30,2015) Christy LifestyleLLC,USA(CLL) ER Kingsley(Textiles)Limited(ERK)(HeldthroughCHTL) Christy UKLimited(CUKL)(HeldthroughCHTL) Christy WelspunGmbH(CWG)(HeldthroughWUKL) Christy 2004Limited(CHT2004)(HeldthroughWUKL) (Held throughCHTHL) Christy HomeTextilesLimited(CHTL) Novelty HomeTextilesSAdeCV(NHTSC)(HeldthroughWMEL) Welspun MauritiusEnterprisesLimited(WMEL) Kojo CanadaInc.(HeldthroughWDHL) Welspun AnjarSEZLimited(WASEZ) Anjar IntegratedTextileParkDevelopersPrivateLimited(AITPDPL) Welspun CaptivePowerGenerationLimited(WCPGL) Welspun DecorativeHospitalityLLC(WDHL) Welspun USAInc.,(WUSA) CHT HoldingsLimited(CHTHL)(HeldthroughWHTUKL) Welspun UKLimited(WUKL)(HeldthroughCHTL) (Held throughWHPL) Welspun HomeTextilesUKLimited(WHTUKL) Welspun HoldingsPrivateLimited,Cyprus(WHPL) Limited (WRL) Welspun GlobalBrandsLimited(WGBL)(FormerlyknownasRetail Besa DevelopersandInfrastructurePrivateLimited(BESA) shares heldbyitssubsidiarycompany)(ReferNote3(b)) Krishiraj TradingLimited(KTL)(throughownshareholdingandthrough Welspun ZucchiTextilesLimited(WZTL)(uptoJanuary29, 2015) for theyearendedMarch31,2015 Notes tothefinancialstatements (d) (c) (e) place duringtheyear transactions havetaken control andwithwhom significant influenceor such personnelexercise Personnel orrelativesof Key Management Enterprises overwhich Management Personnel Relatives ofKey Personnel Key Management Welspun InfratechLimited(WINFRA) Technopak AdvisorsPrivateLimited(TAPL) Welspun InfraDevelopersLimited(WIDL) Welspun FoundationforHealthandKnowledge(WFHK) Welspun FinanceLimited(WFL) Welspun FinTradeLimited(WFTL) Methodical InvestmentandTradingCompanyPrivateLimited(MITCPL) Welspun ProjectsLimited(WPL) Welspun MaxsteelLimited(WMSL) Wel-treat EnviroManagementOrganisationLimited(WEMO) Welspun PolybuttonsLimited(WPBL) Mertz SecuritiesLimited(MSL) Welspun RealtyPrivateLimited(WRPL) Welspun SyntexLimited(WSL) Welspun LogisticsLimited(WLL) Welspun EnergyLimited(WEL) Welspun MercantileLimited(WML) Welspun WintexLimited(WWL) Welspun TradingsLimited(WTL) Welspun SteelLimited(WPSL) Welspun CorpLimited(WCL) Welspun InvestmentsandCommercialsLimited(WICL) Yash Mandawewala(YRM) Khushboo Mandawewala(KAM) Abhishek Mandawewala(ARM) Radhika Goenka(RBG) Dipali Goenka(DBG) Rajesh Mandawewala(RRM) Balkrishan Goenka(BKG) 145

Annual Report 2015 Welspun India Ltd. 146 Annual Report 2015 Welspun India Ltd.

47 : (ii) Following are the transactions with related parties mentioned in (i) above and the year-end balances for theyearendedMarch31,2015 Notes tothefinancialstatements Balance Carried PARTICULARS KTL BESA WGBL WUKL CHTHL WUSA WHPL WHTUKL WCPGL AITPDPL WASEZ WZTL WCL WPSL WTL WWL WML WIDL WLL TAPL WSL Forward Transactions during the year Loans, Advances and Deposits given ------33.92 - - - 6.04 ------39.96 - (2,201.56) ------(0.50) ------(2,202.06) Repayment of Loans, Advances and Deposits given ------6.04 ------6.04 ------Loan Advance & Deposits Received ------1.20 ------1.20 ------Purchase of Goods/ SHIS License ------2,318.29 - - 0.66 89.74 1.31 ------673.85 3,083.85 - - (0.28) - - - - - (1,574.38) - - (19.09) (159.25) (18.55) (36.40) - - - - - (498.21) (2,306.16) Purchase of Services/ Expenses incurred - - 9.76 ------3.71 11.09 0.06 - - - - 3.15 0.13 - 27.89 - - (6.96) ------(0.74) (4.26) (0.02) - - - - (39.57) - - (51.55) Sale of Goods/ DEPB Licenses * - - 42,476.67 - - 173.20 - - 8.32 - - - 23.94 17.39 ------0.37 42,699.89 - - (33,259.23) - - - - - (0.32) - - (0.13) (33.62) (19.47) ------(1.41) (33,314.18) Job Charges Received ------(24.33) ------(24.33) Sale of Services/ Expenses incurred - - 12.44 - - - - - # - - - 15.57 0.01 ------0.20 28.22 - - (15.83) (0.23) ------(17.52) (0.43) ------(0.65) (34.66) Purchase of Fixed Assets / Capital Goods ------17.20 59.50 ------76.70 ------(0.42) - - (6.66) (19.38) (12.21) ------(38.66) Interest Income ------1.07 ------1.07 ------Dividend Received ------1.42 1.42 ------Claims, Discount and Rebate - - 139.45 ------139.45 - - (214.02) ------(214.02) Remuneration and Commission ------Equity Dividend Paid + 150.96 ------# - # - 25.28 33.74 8.25 - - # 218.23 (56.47) ------(#) - (#) - (16.85) (22.49) - - - (#) (95.81) Interim Equity Dividend Paid ++ 150.96 ------# - # - 25.28 33.74 8.25 - - # 218.23 ------Donation ------Corporate Social Responsibility Expenses ------Investment Made during the year ------36.52 - - 57.57 ------94.08 - (2,981.80) (10.00) - - - - - (269.95) ------(36.80) (3,298.55) Provision for diminution in value in investment ------(15.56) ------(15.56) Redemption of Preference Shares - - 1,000.00 ------1,000.00 ------Commission on Corporate Guarantee Given - - - - 9.20 21.65 - - 6.21 ------37.06 - - - - (13.16) (27.53) - (3.40) (6.95) ------(51.04) Closing Balance Loans, Advances and Deposits received ------10.00 2.40 ------12.40 - - (1.20) ------(10.00) (4.20) ------(15.40) Loans, Advances and Deposits given (Including Interest - 15.56 2.11 0.22 8.65 5.39 - 8.32 1.57 0.50 35.87 ------0.03 78.22 Accrued on Loan) - (15.56) (4.94) (0.24) (20.08) (6.93) - (8.98) (7.12) (0.50) - - (4.16) ------(0.17) (68.68) Provision for diminution in value of Loans/ Advances - 15.56 ------15.56 - (15.56) ------(15.56) Debtors (Net of Bills Discounted with Banks) - - 3,647.06 - - 173.20 ------3,820.26 - - (2,152.32) - - - - - (0.32) - - (0.06) (0.24) (6.46) ------(0.11) (2,159.52) Creditors ------230.86 - - 21.01 0.94 10.94 - - - - - 0.06 10.87 274.68 - - (0.18) - - - - - (162.40) - - (19.35) (11.32) - - - - - (0.02) - (4.02) (197.29) Investments - 0.10 2,815.57 - - 146.88 111.52 - 870.42 0.10 2,200.00 92.13 - # ------18.94 6,255.66 - (0.10) (3,815.57) - - (146.88) (111.52) - (833.90) (0.10) (2,200.00) (34.56) - (#) ------(18.94) (7,161.57) Provision for diminution in value in investment ------81.79 ------13.34 95.13 ------(81.79) ------(13.34) (95.13) Corporate Guarantee Given - - 4,470.00 - 864.58 2,726.25 - - 900.00 ------8,960.83 - - (4,470.00) - (932.80) (2,613.49) - (997.65) (900.00) ------(9,913.94) Previous year figures are given in brackets * Amount is inclusive of taxes + Dividend paid of Financial Year 2013-14 ++ Interim Dividend paid of Financial Year 2014-15 47 : (ii) Following are the transactions with related parties mentioned in (i) above and the year-end balances

Balance Brought for theyearendedMarch31,2015 Notes tothefinancialstatements PARTICULARS WRPL MSL WPBL WEMO WMSL WPL MITCPL WFTL WFL WFHK WIN-FRA BKG RRM DBG RBG ARM KAM YRM TOTAL Forward Transactions during the year Loans, Advances and Deposits given 39.96 20.00 ------59.96 (2,202.06) ------(2,202.06) Repayment of Loans, Advances and Deposits given 6.04 100.00 ------106.04 ------Loan Advance & Deposits Received 1.20 ------1.20 ------Purchase of Goods/ SHIS License 3,083.85 - - 2.23 ------3,086.08 (2,306.16) - - (3.56) ------(2,309.72) Purchase of Services/ Expenses incurred 27.89 8.52 0.79 - - - - 1.36 ------38.55 (51.55) (37.05) (0.62) (0.27) - (0.06) - (1.06) ------(90.61) Sale of Goods/ DEPB Licenses * 42,699.89 - - 0.12 ------42,700.00 (33,314.18) - - (0.13) ------(33,314.31) Job Charges Received ------(24.33) ------(24.33) Sale of Services/ Expenses incurred 28.22 - - - - - 1.16 ------29.38 (34.66) - - - - (0.04) (0.13) ------(34.83) Purchase of Fixed Assets / Capital Goods 76.70 - - - - - 222.88 ------299.58 (38.66) - - - - (0.03) (524.57) ------(563.26) Interest Income 1.07 ------1.07 ------Dividend Received 1.42 ------1.42 ------Claims, Discount and Rebate 139.45 ------139.45 (214.02) ------(214.02) Remuneration and Commission ------71.13 88.61 86.13 - 3.06 1.03 1.40 251.36 ------(17.47) (15.00) - (2.80) (0.95) 0.56) (36.78) Equity Dividend Paid + 218.23 - - - - - 0.02 1.63 0.21 # 0.23 0.60 - - - 220.91 (95.81) - - - - - (0.02) (40.29) (1.08) (0.14) (#) (0.15) (0.40) - - - (137.89) Interim Equity Dividend Paid ++ 218.23 ------0.02 - 1.63 - - 0.21 # 0.23 0.60 - - - 220.92 ------Donation ------(28.20) ------(28.20) Corporate Social Responsibility Expenses ------18.83 ------18.83 ------Investment Made during the year 94.08 ------94.08 (3,298.55) ------(3,298.55) Provision for diminution in value in investment ------(15.56) ------(15.56) Redemption of Preference Shares 1,000.00 ------1,000.00 ------Commission on Corporate Guarantee Given 37.06 ------37.06 (51.04) ------(51.04) Closing Balance - Loans, Advances and Deposits received 12.40 ------12.40 (15.40) ------(15.40) Loans, Advances and Deposits given (Including Interest 78.22 62.25 8.00 - 75.00 - 4.19 ------227.66 Accrued on Loan) (68.68) (142.25) (8.00) - (75.00) - (43.30) ------(337.23) Provision for diminution in value of Loans/ Advances 15.56 ------15.56

(15.56) ------(15.56) Debtors (Net of Bills Discounted with Banks) 3,820.26 ------3,820.26 (2,159.52) ------(2,159.52) Creditors 274.68 - - 0.23 - - 7.46 - - - - - 71.13 71.13 71.13 - - - - 495.76 (197.29) - - (0.21) - - (19.29) (0.45) - - - (0.17) ------(217.41) Investments 6,255.66 ------6,255.65 (7,161.57) ------(7,161.57) Provision for diminution in value in investment 95.13 ------95.13 (95.13) ------(95.13) Corporate Guarantee Given 8,960.83 ------8,960.83 (9,913.94) ------(9,913.94) Previous year figures are given in brackets * Amount is inclusive of taxes + Dividend paid of Financial Year 2013-14 ++ Interim Dividend paid of Financial Year 2014-15 147

Annual Report 2015 Welspun India Ltd. 148 Annual Report 2015 Welspun India Ltd.

49 48 forecasted transactionsareexpectedtooccurduringthesame period. and months twelve maximum of period a for are contracts These exposure. its manage to contracts swap and contracts forward currency foreign into enters Company the procedures, and policies management risk company’s the with line In foreign currency. in denominated payables liabilities, assets/ currency foreign on fluctuations currency foreign to exposed is Company The 50 :DerivativeInstrumentsoutstandingasatMarch 31,2015: for theyearendedMarch31,2015 Notes tothefinancialstatements : DisclosureasrequiredbyClause32ofthelisting agreement: : Leases * Provision for doubtful loans and advance of Rs. 15.56 million (March31,2014:Rs.15.56million)hasbeenmade. andadvanceofRs.15.56million * Provisionfordoubtfulloans million). The aggregaterentalexpensesofalltheoperatingleasesfor the yearareRs.65.96million(PreviousYear:86.25 lease isgenerallyforelevenmonthstosixtymonths. agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. The initial tenure of The Company has taken various residential, office premises, godowns, equipment and vehicles under operating lease Operating Lease Where theCompanyisalessee: ivInvestmentsbytheLoaneeinsharesof iiiLoansandadvancesinthenatureofloans ii.Loansandadvancesinthenatureofloans iLoansandadvancesinthenatureofloans -BesaDevelopersandInfrastructure -WelspunAnjarSEZLimited the CompanyasatMarch31,2015 interested to firms/companiesinwhichdirectorsare to associates to subsidiary(excludinginterestaccrued) Private Limited as atMarch 15.56* 31, 2015 Balance 33.86 - - - outstanding year ended during the March 31, Maximum amount 2015 33.86 - - - - at March31, Balance as 15.56* 2014 - - - - outstanding year ended during the March 31, Maximum amount (Rs.million) 2014 2,200.10 - - - - (b) (a) for theyearendedMarch31,2015 Notes tothefinancialstatements (d) (c) (ii) (i) currency exposureagainstpayableasatMarch31,2015: foreign hedge to contracts forward currency foreign outstanding following has Company the above, the to addition In The following are outstanding foreign currency forward contracts againsttheforecastedpayables. foreigncurrencyforwardcontracts areoutstanding The following million (March31,2014:Rs.1,009.31million)forpayables. otherwise or instrument derivative a by hedged not exposure aggregates Rs. 196.35 currency million (March 31, 2014 foreign : Rs. 494.15 the million) for receivables date, (net of provisions) Sheet and Rs. 4,135.02 Balance the at As Reserve asonMarch31,2015. Hedging in recognised million) 68.02 Rs. : 2014 31, (March Nil Rs. of instruments derivative on Loss Market to Mark Forward Contracts(Buy) Forward Contracts(Buy) Forward Contracts(Buy) Forward Contracts(Buy) Forward Contracts(Buy) Fair ValueHedges Designated Cash Non-Designated Flow Hedges Hedges USD-INR EURO-USD EURO-INR JPY-INR USD-INR Currency Currency Currency Pair Pair Pair (in million) (in million) Currency (in million) Currency Currency Foreign Foreign Foreign 351.70 Notional Amount Notional Amount Notional Amount 2.00 March 31,2015 March 31,2015 - - March 31,2015 - Rs. million Rs. million Rs. million 192.54 135.72 - - - Fair Value Fair Value Rs. million Restate- million" million" (Loss) "Gain/ (Loss) "Gain/ (Loss) Gain/ ment Rs. (7.56) Rs. (4.65) On - - -

(in million) (in million) Currency (in million) Currency Currency Foreign Foreign Foreign Notional Amount Notional Amount Notional Amount 18.82 5.00 4.15 1.90 March 31,2014 March 31,2014 March 31,2014 - Rs. million Rs. million 1,198.34 million 429.63 336.51 166.15 Rs. - Fair Value Fair Value Restate- million" million" (Loss) (13.62) (54.40) "Gain/ million (Loss) (Loss) "Gain/ Gain / ment (5.91) Rs. Rs. Rs. On - -

149

Annual Report 2015 Welspun India Ltd. 150 Annual Report 2015 Welspun India Ltd. 51 :Investments for theyearendedMarch31,2015 Notes tothefinancialstatements Long TermInvestments 66,956,672 20,084,998 14,854,375 23,065,503 5,550,000 1,000,000 50,700 10,000 10,000 100 Limited fully paidupofWelspunZucchiTextiles (March 31,2014:2,750,000)ofRs.10each and SteelLimited) Limited (FormerlyknownasWelspun Power Rs.10 eachfullypaidupofWelspun Steel (March 31,2014:100)EquitySharesof Generation Limited of Rs.10eachWelspunCaptivePower cumulative RedeemablePreferenceShares (March 31,2014:64,147,487)6%Non- Captive PowerGenerationLimited of Rs.10eachfullypaidupWelspun (March 31,2014:19,242,513)EquityShares Retail limited) Brands Limited(formerlyknownasWelspun of Rs.10 each fully paid up of Welspun Global Redeemable CumulativePreferenceShares (March 31,2014:1,000,000)1% limited) Limited (formerlyknownasWelspunRetail each fullypaidupofWelspunGlobalBrands Redeemable PreferenceSharesofRs.10 (March 31,2014:15,854,375)0% Retail limited) Brands Limited(formerlyknownasWelspun of Rs.10 each fully paid up of Welspun Global (March 31,2014:23,065,503)EquityShares SEZ Limited Rs.10 eachfullypaidupofWelspunAnjar (March 31,2014:50,700)EquitySharesof Textile ParkDevelopersPrivateLimited Rs.10 eachfullypaidupofAnjarIntegrated (March 31,2014:10,000)EquitySharesof and InfrastructurePrivateLimited Rs.10 eachfullypaidupofBESADevelopers (March 31,2014:10,000)EquitySharesof Investment-CanaraHSBC Investment-SBILifeInsurance Investment-IndiafirstSM March 31,2015 AsAt 1,524.23 1,281.34 2,200.00 669.57 200.85 92.13 10.00 0.10 0.10 0.60 0.50 1.80 * March 31,2014 AsAt (Rs. million) 2,524.23 1,281.34 2,200.00 641.47 192.43 34.56 10.00 0.10 0.10 0.60 0.30 1.80 * for theyearendedMarch31,2015 Notes tothefinancialstatements TotalLongTermInvestments Current Investments *AmountisbelowtheroundingnormsadoptedbyCompany 283,500 668,706 1,720 1,660 1,500 10 80 8 - - Bonds ofFaceValueRs.1,000,000 each Corporation ofIndiaLimited20/05/2027 (March 31,2014:Nil)7.93% Power Grid 25,000 each 05/11/2037 BondsofFaceValue ofRs. Finance CorporationofIndiaLimited (March 31,2014:Nil)9.90%Industrial Diminution invalueofinvestment Less :Provisionforotherthantemporary Limited Rs. 10eachfullypaidupofWelspunSyntex (March 31,2014:283,500)EquitySharesof 25,000 each 05/11/2027 BondsofFaceValueRs. Finance CorporationofIndiaLimited (March 31,2014:Nil)9.90%Industrial 2035 BondsofFaceValueRs.100each (March 31,2014:2,830,000)7.40%GOI 2042 BondsofFaceValueRs.100each (March 31,2014:1,500,000)8.30%GOI Diminution invalueofinvestment Less :Provisionforotherthantemporary Bonds ofFaceValueRs.1,000,000each Electrification Corporation Limited 31/05/2023 (March 31,2014:Nil)8.06%Rural Holdings PrivateLimited,Cyprus of GBP1each,fullypaidupWelspun (March 31,2014:1,500)EquityShares Fertilizers Limited each fullypaidupofKhaitanChemicals& (March 31,2014:80)EquitySharesofRs.10 USA Inc. of US$0.10each,fullypaidupWelspun (March 31,2014:668,706)EquityShares March 31,2015 AsAt 6,163.43 111.52 146.88 44.03 13.34 18.94 43.53 29.73 81.79 10.12 8.61 5.60 * - - March 31,2014 AsAt (Rs. million) 7,069.14 271.14 164.09 111.52 146.88 13.34 18.94 29.73 81.79 5.60 * - - - - 151

Annual Report 2015 Welspun India Ltd. 152 Annual Report 2015 Welspun India Ltd. for theyearendedMarch31,2015 Notes tothefinancialstatements Total CurrentInvestments Total Investments(CurrentandLongTerm) Non CurrentInvestments(Refer Note16) Disclosed Under: Current Investments(ReferNote 19) Total 500,000 500,000 500,000 243 101 74 25 60 50 41 19 Bonds ofFaceValueRs.100each (March 31,2014:Nil)8.30%GOI2042 Bonds ofFaceValueRs.100each (March 31,2014:Nil)8.60%GOI2028 Bonds ofFaceValueRs.100each (March 31,2014:Nil)8.27%GOI09/06/2020 1,000,000 each I PerpetualBondsofFaceValueRs. Limited Omni(2014-15-SeriesII)Tier (March 31,2014:Nil)10.75%IDBIBank Value ofRs.1,000,000each Overseas BankPerpetualBondsofFace (March 31,2014:Nil)10.00%Indian 1,000,000 each 27/09/2026 BondsofFaceValueRs. (March 31,2014:Nil)9.84%AirIndia 1,000,000 each Perpetual BondsofFaceValueRs. (March 31,2014:Nil)10.40%VijayaBank 1,000,000 each 26/03/2027 BondsofFaceValueRs. Rajya VidyutUtpadanNigamLimited (March 31,2014:Nil)8.74%Rajasthan 1,000,000 each 05/01/2027 BondsofFaceValueRs. Rajya VidyutUtpadanNigamLimited (March 31,2014:Nil)8.65%Rajasthan 1,000,000 each Perpetual BondsofFaceValueRs. (March 31,2014:Nil)9.55%CanaraBank Rs. 1,000,000each Commerce PerpetualBondsofFaceValue (March 31,2014:Nil)9.48%OrientalBankof March 31,2015 AsAt 7,059.51 7,059.51 6,163.43 896.08 259.18 896.08 101.00 53.68 53.79 51.33 74.01 27.49 59.12 49.78 41.41 19.00 March 31,2014 AsAt (Rs. million) 7,504.37 7,504.37 7,069.14 435.23 435.23 ------52 :InterestinJointVenture for theyearendedMarch31,2015 Notes tothefinancialstatements

a. c. b. The Company has the following investment in a jointly controlled entity: investmentinajointlycontrolled The Companyhasthefollowing The Company’s share of the aggregate amounts of assets and liabilities as on March 31, 2015 and income and income expenditure ofWZTLfortheyearendedMarch31,2015areasunder: and 2015 31, March on as liabilities and assets of amounts aggregate the of share Company’s The The Company’s share of contingent liability of WZTL is Rs. Nil(March31,2014:Rs.32.07million). contingent liabilityofWZTLisRs. The Company’sshareof Non-current investments Tangible assets (a) Assets: Welspun ZucchiTextilesLimited(WZTL) Long-term loansandadvances Other non-currentassets Inventories Cash andcashequivalents Trade receivables Short-term loansandadvances Short-term borrowings (b) Liabilities: Total Other Currentassets Trade payables Other currentliabilities Short-term provisions Total Cost ofmaterialsconsumed (d) Expense: Total Other income Revenue fromoperations (c) Income: Employee benefitsexpense Changes ininventoriesoffinished goods,work-in-progress Name ofJointVenture Incorporation Country of India March 31,2015** March 31,2015** Proportion ofownershipinterest As at As at Nil 2.91 1.07 1.84 0.01 2.49

------March 31,2014 March 31,2014 As at As at 50 (Rs. million) 12.40 50.42 12.55 16.39 13.21 13.53 0.00* 0.01 9.54 2.98 7.67 5.27 0.22 0.22 3.18 0.44

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Annual Report 2015 Welspun India Ltd. 154 Annual Report 2015 Welspun India Ltd.

54 53 for theyearendedMarch31,2015 Notes tothefinancialstatements determined totheextentsuchpartieshavebeenidentifiedonbasisofinformationavailablewithCompany. been has enterprises small and micro regarding Payable” “Trade – 11 Note in given that and information above The : DetailsofResearchandDevelopmentexpensesincurredduringtheyear,debitedundervarious : DisclosureforMicroandSmallEnterprises:

Details ofCapitalExpenditureincurredduringtheyearforResearch andDevelopmentisgivenbelow: heads ofStatementProfitandLossaregivenbelow: Total Plant andMachinery Total Others Employee benefitsexpenses Material Consumption vii) vi) iv) iii) v) ii) i) ** Became wholly owned subsidiary witheffectfromJanuary30,2015 ** Becamewhollyownedsubsidiary normsadoptedbytheCompany * Amountisbelowtherounding Total Provision forincometax Other expenses Depreciation andamortizationexpense Finance costs Further interestremainingdueandpayableforearlieryears MSMED Act,forpaymentsalreadymade Interest due&payabletowardssuppliersregisteredunder during theyear registered undertheMSMEDAct,beyondappointedday Interest paid,underSection16ofMSMEDAct,tosuppliers day duringtheyear suppliers registered under the MSMED Act, beyond the appointed Interest paid,otherthanunderSection16ofMSMEDAct,to Act, beyondtheappointeddayduringyear Principal amountspaidtosuppliersregisteredundertheMSMED Act andremainingunpaidasatyearend Principal amountduetosuppliersregisteredundertheMSMED remaining unpaidasatyearend Interest duetosuppliersregisteredundertheMSMEDActand Particulars Particulars Particulars March 31,2015 Year ended 288.54 38.11 4.53 0.81 0.98 0.20 0.05 1.77 6.04 1.77 Rs. million Rs. million - - March 31,2014 Year ended (Rs.million) 224.07 303.83 137.97 51.31 (0.02) 36.41 51.31 11.84 74.26 16.03 2.69 3.34 0.10 6.14 2.30 0.22 - - Date: Place: Membership No.103211 Partner Mehul Desai Firm RegistrationNo:012754N/N500016 Accountants LLP For PriceWaterhouseChartered for theyearendedMarch31,2015 Notes tothefinancialstatements Signatures toNotesfinancialstatements 55 Prior year comparatives have been reclassified to conform with thecurrentyear’spresentation,whereverapplicable. beenreclassifiedtoconformwith Prior yearcomparativeshave April 29,2015 Mumbai Date: Place: Company Secretary Shashikant Thorat Date: Place: DIN: 00270175 Chairman Balkrishan Goenka For andonbehalfoftheBoardDirectors April 29,2015 Mumbai April 29,2015 Mumbai

Date: Place: Date: Place: Chief FinancialOfficer Altaf Jiwani DIN :00007179 Managing Director Rajesh Mandawewala April 29,2015 Mumbai April 29,2015 Mumbai

155

Annual Report 2015 Welspun India Ltd. 156 Annual Report 2015 Welspun India Ltd. Statements Report ontheConsolidatedFinancial o te er hn ne, n a umr o significant of summary a accounting policiesandotherexplanatoryinformation. and ended, then year the for Statement Flow Cash consolidated the Loss, and Profit of Statement consolidated the 2015, 31, March at Balance as Sheet consolidated the comprise which statements), Financial “Group” (refer Note 1 to the attached consolidated financial “Consolidated and jointventurehereinafterreferredtoasthe subsidiaries (the Statements”) of Welspun India Limited (“the Company”), its statements financial assessment of the risks of material misstatement ofthe assessment of therisksofmaterial the including judgement, auditors’ the on depend selected procedures The statements. financial consolidated the in disclosures and the amounts about evidence audit obtain material misstatement. whether the consolidated financial statements are free from about assurance reasonable to obtain perform theaudit and plan and requirements ethical with comply we Chartered that require of Institute the pronouncements of India.Those Standardsand Accountants by issued pronouncements authoritative Standards onAuditingandotherapplicable these consolidated financial statements based on our audit. due tofraudorerror. whether misstatement, material from free are and view fair of the consolidated financial statements that give a true and internal controlrelevantto the preparationandpresentation of maintenance and implementation design, the includes responsibility This 2014. Rules, (Accounts) Companies the of 7 Rule with read Act the of 133 Section under specified Standards the Accounting in Indiaincluding accepted generally principles accounting with accordance in Group the of flows cash consolidated and performance financial fair view of the consolidated financial position, consolidated of preparation and true a the give to statements financial to consolidated these respect with “Act”) (the 2013 Act, Companies the of 134(5) Section in stated matters the for Consolidated FinancialStatements Management’s Responsibilityforthe TO THEMEMBERSOFWELSPUNINDIALIMITED INDEPENDENT AUDITORS’REPORT Consolidated Financials Auditors’ Responsibility 1. 3. 2. 5. 4. We have auditedthe accompanying consolidated Our responsibility is to express an opinion on is toexpressanopinion Our responsibility responsible is Directors of Board Company’s The An audit involves performing procedures to procedures An auditinvolvesperforming the with accordance in audit our conducted We unabsorbed Income-tax depreciation arising outof the Income-tax depreciation unabsorbed incremental the on million 310.70 Rs. aggregating period in earlier to utilisationofdeferredtax assets recognised year endedonthatdate. the for flows cash consolidated its and profit consolidated its and 2015, 31, March at as Group the of affairs of state accounting principlesgenerallyacceptedinIndiaof the the with conformity in view fair and true a give statements financial consolidated aforesaid the opinion, our in us, to of given our to information andaccording the explanations ofthe Group as referred to in the components paragraph 10 below, and to the of best information financial other the on and statements financial separate on auditors other of 7 ofCompanies(Accounts)Rules,2014. standard referred to in Section 133 of the Act read with Rule to theextentitdoesnotcontradictanyotheraccounting India of Measurement Accountants Chartered of Institute and the by issued Recognition 30, Standard Instruments: Accounting Financial and 2014 Rules, (Accounts) under Companies the of 7 Rule with read Act, the specified of 133 Section Ventures Joint in Interests of Reporting Financial – Financial 27 (AS) Standard Accounting Consolidated and of Statements – Company’s requirements 21 (AS) the the Standard with Accounting by accordance prepared in Management been have statements our auditopinionontheconsolidatedfinancialstatements. for basis a provide to appropriate and sufficient is obtained financial statements. as of evaluating the overall presentation the consolidated well as Directors, Company’s the by made estimates of the accounting policies usedandthereasonableness of accounting theappropriateness evaluating includes also audit An control. internal entity’s the of effectiveness but not for the purpose of expressing anopiniononthe audit procedures that are appropriate in the circumstances, Company’s design to order in view, fair and true a give that statements the to financial consolidated the of presentation relevant and preparation control auditor internal the assessments, considers risk those making In error. tofraud or due whether statements, financial consolidated Emphasis ofMatter Opinion 9. 8. 7. 6. We draw your attention to Note 33, matter relating Based on our audit and on consideration of reports financial consolidated the that report We e eiv ta te ui eiec w have we evidence audit the that believe We

Membership Number103211 Date: April29,2015 Mumbai Place: Partner Mehul Desai Firm RegistrationNumber:012574N/N50016 For PriceWaterhouseCharteredAccountantsLLP on the report ofsuchotherauditors. solely is based statements financial such from consolidated the on financial statements to opinion the been extent they have our been derived have and us, reports to whose furnished auditors other by been audited have information financial other and statements financial These ended. then year the for million 100.65 of Rs. 15.41 million and net cash flows amounting to Rs. 31, 2015, total revenue of Rs. 2,906.87 million, net profit million and net assets of Rs. 2,089.65 million as at March financial consolidated statements, which constitute total assets of Rs. 4,503.98 the in included subsidiaries 14 Other Matter million. Our opinion is not qualified in respect of this matter. the for expense year ended March 31, 2015 would be higher by Rs. 310.70 tax is eventually the Company, the matter the in against decided decision final the If orders. with these against (Appeals) appeals Tax Income of Commissioner preferred the has Company The income-tax. to liable are which nature in revenue as incentives these have passedorderstreating The incometaxauthorities tax incentives as ‘capital receipts’ for income tax added purposes. value and excise certain of treatment Company’s TO THEMEMBERSOFWELSPUNINDIALIMITED INDEPENDENT AUDITORS’REPORT 10. We did not audit the financial statements of statements financial the audit not did We 157

Annual Report 2015 Welspun India Ltd. 158 Annual Report 2015 Welspun India Ltd. Date: Place: Membership No.103211 Partner Mehul Desai Firm RegistrationNo:012754N/N500016 For PriceWaterhouseCharteredAccountantsLLP This istheConsolidatedBalanceSheetreferredtoinourreport ofe The NotesareanintegralpartoftheseConsolidatedfinanci CONSOLIDATED BALANCESHEETASATMARCH31,2015 Total Other CurrentAssets Short-term LoansandAdvances Cash andBankBalances Trade Receivables Inventories Current Investments Current Assets Other Non-currentAssets Long-term LoansandAdvances Non-current Investments GoodwillonConsolidation CapitalWork-in-Progress IntangibleAssets TangibleAssets Fixed Assets Non-current Assets Assets Total Short -termProvisions Other CurrentLiabilities Trade Payables Short-term Borrowings Current liabilities Long-term Provisions Other Long-termLiabilities Deferred TaxLiabilities(Net) Long-term Borrowings Non- currentLiabilities Minority Interest Share applicationmoneypendingallotment Reserves andSurplus Share Capital Shareholders' Funds EquityandLiabilities April 29,2015 Mumbai al statements. For andonbehalfoftheBoardDirectors Date: Place: Company Secretary Shashikant Thorat DIN: 00270175 Chairman Balkrishan Goenka ven date. April 29,2015 Mumbai Note 14 C 14 B 14 A 23 22 21 20 19 18 17 16 15 13 12 11 10 9 8 7 6 5 4 3

March 31,2015 AsAt 56,953.34 56,953.34 11,006.25 24,441.84 10,034.21 15,946.26 13,313.88 1,329.89 6,096.62 3,252.32 4,467.02 1,404.92 1,377.44 1,785.07 1,564.16 6,773.28 6,910.19 1,008.94 1,004.60 169.70 932.02 640.73 378.21 14.98 43.13 11.02 Date: Place: Chief FinancialOfficer Altaf Jiwani DIN :00007179 Managing Director Rajesh Mandawewala - March 31,2014 April 29,2015 Mumbai As At 51,684.01 51,684.01 (Rs. million) 10,094.39 18,395.11 11,348.77 16,794.77 10,092.90 2,018.85 4,144.12 2,332.15 4,117.05 1,021.66 1,232.23 1,838.61 5,324.06 3,559.23 6,144.43 1,003.47 641.37 473.26 436.25 953.76 599.57 434.28 316.06 51.15

0.52 Membership No.103211 Partner Mehul Desai Firm RegistrationNo:012754N/N500016 For PriceWaterhouseCharteredAccountantsLLP Date: Place: FOR THEYEARENDEDMARCH31,2015 CONSOLIDATED STATEMENTOFPROFITANDLOSS This istheConsolidatedStatementofProfitandLossreferred toinourreportofevendate. The NotesreferredareanintegralpartoftheseConsolidated FinancialStatements. Profit beforeTax Total Expenses OtherExpenses DepreciationandAmortisationExpense FinanceCosts EmployeeBenefitsExpense MaterialConsumed Expenses Total Revenue Other Income Revenue fromOperations(Net) Less :ExciseDuty Revenue fromOperations(Gross) -CurrentTax Tax Expense -DeferredTax Less:MinimumAlternativeTaxCreditAvailed Minority Shareholders Profit AfterTaxationandBeforeShareofProfit/(Loss) Profit for the Year Year the for Profit Minority's ShareofProfit/(Loss)inSubsidiaryCompanies -Diluted -Basic Rs. 10)] Earnings PerShare(Rs.)[Nominalvaluepershare:Rs.10(2014 April 29,2015 Mumbai For andonbehalfoftheBoardDirectors Date: Place: Company Secretary Shashikant Thorat DIN: 00270175 Chairman Balkrishan Goenka April 29,2015 Mumbai Note

30 29 28 27 26 25 24

41

March 31,2015 Year Ended 46,441.64 53,974.53 53,025.11 10,380.32 25,443.25 53,481.25 3,329.33 2,829.01 4,459.73 7,532.89 1,845.56 1,845.56 5,442.86 5,397.90 949.42 456.14 244.47 44.96 53.75 53.76 Chief FinancialOfficer Altaf Jiwani DIN :00007179 Managing Director Rajesh Mandawewala Date: Place:

- March 31,2014 Year Ended April 29,2015 Mumbai (Rs. million) (1,464.78) 43,734.53 44,771.75 43,730.25 22,673.38 43,782.85 6,863.31 2,352.11 3,399.98 1,041.50 8,445.75 1,663.71 1,784.88 (121.17) 1,037.22 (82.45)

838.29 920.74 52.60 9.18 9.19

159

Annual Report 2015 Welspun India Ltd. 160 Annual Report 2015 Welspun India Ltd. FOR THEYEARENDEDMARCH31,2015 CONSOLIDATED CASHFLOWSTATEMENT A. B. NetCashFlowfromOperatingActivities TaxesPaid(netofrefunds) CashFlowGeneratedfromOperations LoansandAdvances Inventories CurrentLiabilitiesandProvisions TradeandOtherReceivables Adjustmentsforchangesinworkingcapital: OperatingProfitBeforeWorkingCapitalChanges Financecosts InterestIncomeandCashDiscountReceived NETCASHFROMOPERATINGACTIVITIES Debts/AdvancesWrittenoff ProvisionforDoubtfulDebts/AdvancesWrittenBack Liabilities/ProvisionWrittenBackasnoLongerRequired Dividend ProfitonSaleofBonds Loss/(Profit)onRedemption/SaleofUnitsMutualFunds CASHFLOWUSEDININVESTINGACTIVITIES NetCashFlowusedinInvesting Activities InterestReceived DividendReceived PurchaseofInvestments(Net) InvestmentinFixedDepositandMarginMoney CapitalSubsidy SaleofFixedAssets PurchaseofFixedAssets(includingCapitalWork-in-progress) Loss/(Profit)onSaleofFixedAssets UnrealisedForeignExchangeDifferences Depreciationandamortisationexpense Adjustmentsfor: Profit Beforetax Year Ended March31, For the (1,927.36) (5,794.58) 2015 2,829.01 3,329.33 (910.28) (358.75) (258.94) (362.37) (256.37) (24.54) (36.16) 797.43 195.45 (1.54) (0.37) (0.10) 24.54 95.22 27.46 35.04 4.22 1.00 Year Ended March31, Forthe (1,767.49) (2,398.96) (6,070.65) 11,010.88 13,409.84 2015 9,243.39 5,876.95 7,532.89 Year Ended March31, Forthe (3,973.97) (1,545.95) (1,889.13) (1,383.23) (9,670.96) (2,458.72) (7,186.07) (Rs. million) 2014 5,818.40 5,509.73 8,755.15 2,352.11 9,792.37 6,863.31 1,037.22 (308.67) (231.91) (216.99) (208.01) (17.66) (28.32) (15.95) 844.34 151.57 (1.41) 36.08 15.95 23.30 6.80 0.11 - FOR THEYEARENDEDMARCH31,2015 CONSOLIDATED CASHFLOWSTATEMENT Date: April29, 2015 Place: Mumbai Membership No.103211 Partner Mehul Desai Firm RegistrationNo:012754N/N500016 For PriceWaterhouseCharteredAccountantsLLP C. 2. Cash and Cash Equivalents as at March 31, 2015 includes fixed deposits of Rs. 98.33 million which are not available wherever presentation, year’s thecurrent with conform to reclassified been have comparatives year’s Previous 1. NOTES : Proceeds/(Redemption)ofPreferenceShares ProceedsfromMinorityShareholders ShareApplicationMoneypendingAllotment ProceedsfromissueofEquityShares CASHFLOW(USEDIN)/FROMFINANCINGACTIVITIES Add : Cash and Cash Equivalents on acquisition of Subsidiaries CashandEquivalentsatthebeginningofyear NetIncreaseinCashandEquivalents(A+BC) NetCashFlow(usedin)/fromFinancingActivities FinanceExpensesPaid DividendsDistributionTax DividendsPaid ProceedsfromOtherBorrowings(NetofRepayments) ProceedsfromLongTermBorrowings(NetofRepayments) IssueofDebentures NetIncreaseinCashandEquivalents CashandEquivalentsattheendofyear Flow referredtoinourreportoftheevendate. Cash Consolidated the is This borrowings. of repayment the for earmarked are these as Company the by use for applicable.

For andonbehalfoftheBoardDirectors Date: April29, 2015 Place: Mumbai Company Secretary Shashikant Thorat DIN: 00270175 Chairman Balkrishan Goenka Year Ended

March31, For the (2,979.28) (1,304.68) 2015 1,000.00 (111.42) (599.29) 872.23 17.19 3.51 - - Year Ended March31, Forthe (3,101.74) 2015 1,911.11 1,989.78 Date: April29, 2015 Place: Mumbai Chief FinancialOfficer Altaf Jiwani DIN :00007179 Managing Director Rajesh Mandawewala 71.00 71.00 7.67 Year Ended March31, Forthe (2,575.94) (Rs. million) 2014 4,200.45 1,515.73 2,160.66 5,091.36 1,911.11 (202.86) (250.00) (34.67) 356.16 39.22 39.22 11.38 0.52

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Annual Report 2015 Welspun India Ltd. 162 Annual Report 2015 Welspun India Ltd. Stock Exchange(BSE)andtheNational(NSE). Bombay the on listed is and company limited public a is Company The rugs. and products linen bed towels, terry mainly 1.1 TheSubsidiarycompaniesandJointVentureCompanyconsideredintheconsolidatedfinancial 1. GeneralInformation for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements * OnJanuary30, 2015,WelspunZucchiTextiles Limited(WZTL)became a100%subsidiary. Welspun ZucchiTextilesLtd(WZTL)* through WMEL) Novelty HomeTextilesSADE CV(Held Welspun MauritiusEnterprises Ltd(WMEL) (Held throughCHTL) ER Kingsley(Textiles)Limited (HeldthroughCHTL) Christy UKLimited(CUKL) Christy LifestyleLLC(HeldthroughWUKL) (Held throughWUKL) Christy 2004Limited (Held throughCHTL) Welspun UKLimited(WUKL) (Held throughCHTL) Christy EuropeGmbH through CHTHL) Christy HomeTextilesLimited(CHTL)(Held (Held throughWHTUKL) CHT HoldingsLimited(CHTHL) (WHTUKL) (HeldthroughWHPL) Welspun HomeTextilesUKLimited Welspun HoldingsPvtLtd,Cyprus(WHPL) (Held throughWUSA) Welspun DecorativeHospitalityLLC(WDHL) (WCPGL) Welspun CaptivePowerGenerationLimited Welspun USAInc.(WUSA) (formerly knownasWelspunRetailLimited) Welspun GlobalBrandsLimited(WGBL) Limited (BESA) Besa DevelopersandInfrastructurePrivate Welspun AnjarSEZPvtLtd(WASEZ) Anjar IntegratedTextileParkPvtLtd(AITP) statements are: Welspun India Limited (“WIL” or the “Company”) is a leading manufacturer of wide range of home textile products, textile home of range wide of manufacturer leading a is “Company”) the or (“WIL” Limited India Welspun Name oftheCompany India Mexico Mauritius U.K. U.K. U.S.A. U.K. U.K. Germany U.K. U.K. U.K. Cyprus U.S.A. India U.S.A. India India India India Incorporation Country of Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Relationship as atMarch 31, 2015 as atMarch Power held % Voting 31, 2015 100.00 100.00 100.00 100.00 98.03 98.03 98.17 98.17 98.17 98.17 98.17 98.17 98.17 98.17 98.17 98.17 98.64 68.00 98.64 98.03 Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Joint Venture Relationship as atMarch 31, 2014 as atMarch Power held % Voting 31, 2014 100.00 100.00 100.00 98.03 98.03 98.17 98.17 98.17 98.17 98.17 98.17 98.17 98.17 98.17 98.17 98.64 68.00 98.64 98.03 50.00 1.2 AdditionalinformationregardingtheSubsidiaryCompaniesandJointVentureCompany for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements Minority Interestinallsubsidiaries Adjustments Inter-company Elimination & Consolidation January 29,2015) Welspun ZucchiTextilesLimited(upto Indian Joint Venture Welspun USAInc.* CHT HoldingsLimited* Novelty HomeTextilesSADECV Welspun MauritiusEnterprisesLimited Welspun HomeTextilesUKLimited Welspun HoldingsPrivateLimited Foreign Welspun CaptivePowerGenerationLitd Welspun AnjarSEZPrivateLimited Private Limited Besa DevelopersandInfrastructure January 30,2015) Welspun ZucchiTextilesLimited(from Anjar IntegratedTextileParkPrivateLtd Welspun GlobalBrandsLimited Indian Subsidiaries Welspun IndiaLimited Parent considered intheconsolidatedfinancialstatementsareasunder: ‘*Figures afterconsolidationwith theirsubsidiaries Name ofEntity total assetsminusliabilities As a%ofconsolidated net assets/(liabilities) Net Assets/(Netliabilities)i.e., 100.00% 100.05% -51.31% 15.34% 16.62% -2.63% -0.03% -0.10% 4.57% 2.95% 0.38% 2.30% 3.15% 8.04% 0.67% 0.00% - (Rs. million) (7,348.16) 14,318.48 14,325.84 Amount 1,151.71 2,196.38 2,380.27 March 31,2015 (378.21) (14.53) 654.28 422.71 329.98 451.37 (4.39) 54.52 96.61 0.10 - As a%ofconsolidated profit /(loss) Share inprofit/(loss) 100.00% 94.51% -0.83% -9.25% -0.03% -0.06% -0.01% -0.06% -0.01% 4.02% 0.43% 0.12% 0.01% 2.04% 0.00% 0.00% 9.12% (Rs. million) Amount 5,397.90 5,101.36 (499.07) (44.96) 216.97 110.26 492.42 (1.40) (3.28) (0.69) (3.12) (0.54) 23.00 6.48 0.41 0.06 - 163

Annual Report 2015 Welspun India Ltd. 164 Annual Report 2015 Welspun India Ltd. policies 2. Summaryofsignificantaccounting assets andliabilities. of classification non-current or current of purpose the for the equivalents, cash and cycleas12months group hasascertaineditsoperating cash in realisation their and processing for assets of acquisition the between time the Companies Act, 2013. Based on the nature of products and and other criteria set out in the Revised ScheduleIII to the cycle operating normal Group’s the per as non-current or the Act. of 211 Section of (3C) sub-section in to referred standard to theextentitdoesnotcontradictanyotheraccounting India of Accountants Chartered of Institute the by issued Standard Measurement and Accounting Recognition Instruments: and Financial 30, 2013 Act, Companies the of provisions Standards) relevant other and amended] (Accounting as 2006, under Rules, [Companies notified 211(3C) standards accounting Section the with aspects in allmaterial to comply prepared statements havebeen 1956 shall continue to apply. Consequently, these financial Act, Companies the under notified Standards Accounting existing the Authority, Reporting Financial National the of recommendation and consultation in Government Central by prescribed are thereto addendum or any of accounting of the Companies (Accounts) Rules, 2014, till the standards to section 133 of the Companies Act, 2013 read with Rule 7 tangible certain assets for which are except being basis, carried accrual at accepted revalued on amounts. convention Pursuant generally the with cost the historical in Indiaunder principles accounting accordance in prepared f ses laiiis icm ad xess atr fully after transactions expenses, intra-group balances, and intra-group eliminating income liabilities, assets, of items of like values the book together basis byadding line subsidiary companieshavebeen combinedona line-by- the followingbasis: The on prepared been “Group”). have statements financial the consolidated (together company venture joint and companies subsidiary its “Company”), (the Limited India 2.1 BasisofPreparation for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 2.2 PrinciplesofConsolidation All assets and liabilities have been classified as current as classified been have liabilities and assets All been have statements financial consolidated These The consolidated financial statements relate to Welspun The financial statements of the Company andits the Company of statements financial The the Company’sseparatefinancialstatements. are prepared to the extent possible, in the same manner as transactions andothereventsinsimilarcircumstances for like using uniformaccountingpolicies prepared the of operations of results investee. the of share investor’s the interest oftheCompany. proportionate unrealised profits or losses attributable to the controlled eliminating after items, line jointly separate as reported assets, is entities the the of expenses of and each income of liabilities, share Company’s method the consolidation whereby proportionate using AS-27 under companies venture has reporteditsinterestinthejoint z z subsidiaries consistof: as statements financial Goodwill orCapitalReserve. the in recognised is the subsidiary of equity of portion Company’s the over subsidiaries onintra-group transactions. losses or profits unrealised resulting and are a cs ae eonsd n h Saeet f Profit of and Loss. Statement are the in which recognised assets are cost fixed at carried of disposal from arising losses assessed standardofperformance. future benefits from the existing asset beyond its previously to asset areadded its book valueonlyif they increasethe accumulated depreciation andimpairmentlosses,ifany. less applicable) wherever credit, cenvat of 2.3 TangibleAssets z z existence the dateparentsubsidiaryrelationshipcomesinto The minorities’shareofmovementsinequitysince date onwhichinvestmentinasubsidiaryismade;and The amountofequityattributabletominoritiesatthe The consolidated financial statements have been have statements financial consolidated The reflects Loss and Profit of Statement consolidated The Company the statements, financial consolidated the In Minority Interestinthenetassetsofconsolidated the in investment of cost the between difference The oss rsn fo te eieet f ad an or gains and of, retirement the from arising Losses fixed of item an to related expenditures Subsequent (net cost at stated are land except Assets Tangible

the assets are substantially readyfor their intendeduseor as time such until assets, those of cost the to added are sale, or use intended their for ready get to time of period assets, which are assets that necessarily take a substantial qualifying of production or construction acquisition, the to Further, years. an annual basis. on impairment 20 for tested of is consolidation on life goodwill economic useful estimated sub-group is amortised onastraightlinebasisoverits feesand implementation/ integrationexpenses. license includes ofsoftware Cost years. five of which is amortised on the straight-line method over a period software computer include assets Intangible any. if losses, impairment amortization andaccumulated accumulated straight-line methodovertheestimatedusefullives. on provided is installations), electrical (except machinery for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 2.5 BorrowingCosts 2.4 IntangibleAssets of suchimprovements. to occur, which is not in excess of the estimated useful lives expected reasonably are which extensions including lease on thestraightlinemethodover the term of the related deletions. additions/ such of date the to up from/ pro-rata calculated life rangingbetween7.5yearsto20. useful the over method value down written on depreciated Roads, fencing,ashpond,etc. Computers Office Equipment Furniture andFixtures Electrical Installation Vehicles Residential andOtherBuildings Factory Building Assets General and specific borrowing costs directly attributable Goodwill arising on consolidation of a certain subsidiary of net cost, acquisition at stated are Assets Intangible and plant than other assets, tangible on Depreciation Amortisation of leasehold improvements iscomputed Amortisation ofleasehold is assets fixed to deletions additions/ on Depreciation is installations) electrical (except Machinery and Plant Useful Life 30 -58 5 -10 3 –4 3- 5 10 10 28 5 of ProfitandLossintheperiodwhichtheyareincurred. sale. All other borrowing costs are recognised in Statement equity method. made foreachinvestmentindividually. and determined being reduction such investments, the of value the in temporary, than other decline, a recognise to made is diminution for provision However, cost. at carried or fair value, whichever is lower. Long-term investments are cost at carried are investments Current investments. term long as classified are investments other All investments. on date, the which such investments from are made, are classified as current year one than more not for held be to deferred taxassets, ifany. unrecognised reassesses group the date, Sheet Balance each At date. Sheet Balance the by enacted substantively or enacted been have that laws tax and rates tax the using be realised. Deferred tax assets and liabilities are measured a is will be available against there which such deferred tax income assets can that taxable future extent sufficient that the certainty reasonable to only forward carried recognised and are assets tax Deferred assets. tax deferred of subject to prudence inrespectof the consideration the in prevailing laws taxation respective jurisdictions. the with accordance in tax ismeasured at theamountexpectedtobepaidtaxauthorities Current the period. for loss or profit net the of determination the in included are tax, deferred and estimated costsnecessarytomakethesale. the and completion of costs estimated the less business, price intheordinarycourseof the estimateofselling is value realisable Net overheads. production related and costs direct other labor, direct material, raw of comprises weighted on determined average basis. Cost of is work-in-progress and finished goods goods average traded weighted of on Cost basis. determined is spares and stores value. 2.6 Investments 2.8 2.7 Inventories Investment inAssociateisaccountedfor using the and areintended realisable Investments thatarereadily Deferred tax is recognised for all the timing differences, tax current comprising period, the for expense Tax and material) packing (includes materials raw of Cost Inventories are stated at lower of cost and net realisable CurrentTaxandDeferred 165

Annual Report 2015 Welspun India Ltd. 166 Annual Report 2015 Welspun India Ltd. normal incometaxduringthespecifiedperiod. convincing evidence to the effect that the Company will pay credit asset is written down to MAT the extent the there is no of longer a amount carrying the and date Sheet Balance tax income normal during the specified period. Such asset is reviewed at each pay will Company the that evidence convincing is there extent the to and when only asset an levied bythesamegoverningtaxationlaws. and the deferred tax relateto taxes liabilities on income a is assets tax deferred the where and tax current representing there when offset are legally enforceablerightto set off assets againstliabilities liabilities tax deferred and assets tax Deferred basis. net a on liability the and asset the off set to right to settlethe there isanintention and amounts recognised enforceable legally a is there when evidence thatsuchassetswillberealized. convincing by supported certainty virtual a is there only when recognized are India, of 1961, Act, Tax Income the brought forward losses and unabsorbed deprecation as per 1972. The Gratuity Plan provides a lump sum payment to payment sum lump a provides Plan Gratuity The 1972. employees in accordance with the Payment of Gratuity Act, eligible covering Plan”) “Gratuity (the plan benefit defined on monthlybasis. made contribution from apart obligations, further any carry doesnot the group as Schemes Contribution Defined as group the has no where further company obligations. Such insurance benefits are an classified to made is employees the from apart obligations, further contributions madeonamonthlybasis. any carry not does group the as are Schemes Contribution benefits Defined as Such classified obligations. further no has group the which of respect in authorities Government respective the by administered other socialsecurityfundsaregenerally various and scheme pension employee’s fund, insurance funds Provident FundandotherSocialSecurity 2.9 EmployeeBenefits for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements Gratuity Superannuation Fund Minimum Alternative Tax (MAT) credit is recognised as recognised is credit (MAT) Tax Alternative Minimum offset are liabilities tax current and assets tax Current Deferred tax assets arising in situations where there are Certain companies in the Group provide for gratuity, a gratuity, for provide Group the in companies Certain certain for fund superannuation towards Contribution state employee’s fund, provident towards Contribution companies. Employee’s insurance with policies The gratuity group takes Trust trustees. Gratuity through administered is and Profit andLossintheyearwhichtheyarise. of year. Statement the each in recognised of are losses/gains end Actuarial the at method) Credit Unit Projected the (using determined actuarially are liabilities entities The the on respective based employee’s salary amount and the an tenure of of employment. employment, of termination or incapacitation death, retirement, at employees vested in whichtheyarise. year the in Loss and Profit of Statement the in recognised method) at the end of each year. Actuarial Credit losses/ gains are Unit Projected the (using determined actuarially liability is entity’s Company’s The benefits. employee term of theyearendaretreatedasotherlong from theend 12 months or encashedbeyond to beavailed expected the unusedentitlementasatyearend. as aresultof amount expectedtobepaid as theadditional absences compensated the expectedcostofaccumulating at measured is same the towards obligation The benefits. the endofyeararetreatedasshorttermemployee from months 12 within encashed or availed be to expected end ofaccountingperiod. monetary restated atthe are currency foreign in liabilities assets and All determined. were values the when existed rates that using theexchange are reported currency foreign in a denominated valuation or othersimilar at fairvalue of the transaction. All non-monetary items which are carried rate atthedate currency arereportedusingtheexchange in aforeign cost denominated in termsofhistorical carried and theforeigncurrencyatdateoftransaction. currency reporting the between rate exchange the amount totheforeigncurrency by applying transactions arerecorded currency foreign all entity, controlled jointly its and India in Compensated Absences Subsequent Recognition Initial Recognition 2.10 ForeignCurrencyTranslation Gratuity Fund is recognised by the income tax authorities cuuae cmestd becs wih are which absences, compensated Accumulated are which absences, compensated Accumulated As at the reporting date, non-monetary items which are which items non-monetary date, reporting the at As In respect of the Company, its subsidiaries incorporated for Derivatives’issuedinMarch 2008. ‘Accounting on India of Accountants Chartered of Institute gains are ignored in accordance with the Announcement of any, are recognised in the Statement of Profit and Loss and forecast transactions are marked to market and the losses, if probable highly / commitment firm of account on end year Loss whentheunderlyingtransactionoccurs. and Profit of Statement the in recognised Reserve be to ‘Hedging Account’ under funds shareholders’ in directly forecasted transactionsarerecognised of probable highly aseffectivehedges that andconsidered are designated each reportingdate. at forecasttransactionsare fairvalued probable and highly commitments firm to relating contracts exchange forward Accordingly, Measurement”. and Recognition Instruments: andhighly ‘Financial 30 Standard swaps, Accounting adopted has rate group the interest currency and firm commitments transactions foreign to forecast probable with associated relating risks fluctuations the hedge to expense fortheperiod. as or income as recognised is contract exchange forward a such of renewal or cancellation on arising loss or profit Any change. rates exchange the which in period reporting the in Loss and Profit of Statement the in recognised are contracts such on differences Exchange contract. the of life the over income or expense as amortised exchange is contract, forward of inception the at arising premium discount the or transactions, forecast probable highly and forward exchange contracts in respect of firm commitments are recognisedasincomeorexpenses. they time which at investment, net the of disposal the until Reserve Translation Currency Foreign the in accumulated foreign operationare net investmentinanon-integral monetary item that, in substance, forms part a of on arising differences Exchange operation. an ‘non-integral’ enterprise’s and Loss. Profit of Statement the in recognised are items monetary Forward ExchangeContractsandSwaps Translation offoreignoperations for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements owr ecag cnrcs usadn a a the at as outstanding contracts exchange Forward instruments hedging these of value fair the in Changes taken contracts exchange forward of respect In than other contracts, exchange forward of respect In or ‘integral’ either as classified are operations Foreign other all of restatement on differences Exchange uy rwak cee n Fcs akt cee are recognised onshipmentofdirectexports. Scheme Market Focus and scheme DEPB, Drawback from Duty arising the benefits export by group made conditions the exports in and entities direct of terms case In agreed customers. the with with accordance in Focus on exportofsuch goods Market Schemearerecognised and scheme Drawback Duty (DEPB), Book Pass Manufacturer, export benefits arising from Duty Entitlement accrual basis. with entered agreements on an from supplyofsteamisrecognised them. Revenue of terms the with accordance to an accrualbasisbasedonthebillingcustomersin with thetermsandconditionsforsales. accordance in documents, relevant other or lading of bill receipts, cargo of date the on recognised are sales Export customers. to dispatch on recognised are sales Domestic duties. excise and taxes sales rebates, discounts, trade of net buyer asperthetermsofcontractandarerecognised the to transferred are goods the in ownership of rewards intangible) may be impaired. For the purpose of assessing of purpose the For impaired. be may intangible) and (tangible asset an that indication any is there whether Loss onasystematic/appropriate basis. and Profit of Statement the in recognized are benefits Tax Sales of nature the in grants, Revenue expense. interest grants, in the nature of interest subsidy are adjusted against are (TUFS) reduced from the gross value of the Fixed Scheme Assets. Revenue Fund Upgradation under Technology granted the assets specific to relating grants made. Capital be will collection ultimate that certain reasonably to receivedividendisestablished. and therateapplicable. proportion basistakingintoaccounttheamountoutstanding 2.11 RevenueRecognition 2.14 Impairment 2.13 GovernmentGrants 2.12 OtherIncome n ae f ae ae y h Cmay s Support as Company the by made sale of case In on recognised is power of supply from Revenue and risks substantial the when recognised are Sales Assessment is done at each Balance Sheet date as to as date Sheet Balance each at done is Assessment is it when for accounted are grants Government Dividend: Dividend income is recognised when the right time a on recognised is income Interest Interest: 167

Annual Report 2015 Welspun India Ltd. 168 Annual Report 2015 Welspun India Ltd. issued bytheInstituteofChartered AccountantsofIndia. Payments Share-based and Employee on India Note of Guidance the Board Exchange and Securities by issued 1999, Guidelines, Purchase Stock Employee and Scheme accounting treatment prescribed by Employee Stock Option Stock OptionSchemes”areaccountedforasperthe cannot bemade. will resources estimate oftheamount tosettleor areliable be required of outflow an that probable not either is it where events past from arises that obligation present a or company the of control the within wholly not events future past by the occurrence or of non-occurrence one or more uncertain from only confirmed be arising will which obligation of existence possible the events, a is there when value. Balance Sheetdateandarenotdiscountedtoitspresent expenditure requiredtosettlethepresentobligationat Provisions aremeasuredatthebestestimateof is areliableestimateoftheamountobligation. benefits willberequiredtosettletheobligationandthere that anoutflowofresourcesembodyingeconomic present obligationasaresultofpastevent,itisprobable Provisions: Provisionsarerecognisedwhenthereisa 2.15 ProvisionsandContingentLiabilities decreased. in prioraccountingperiodsmaynolongerexistorhave for anasset that animpairmentlossrecognised indication done at each Balance Sheet date as to whether there is any life. Assessmentisalso of itsuseful at theend disposal expected flows cash to use arise fromthe of continuing an assetandfrom its future estimated of value present unit’s generating net selling priceandits value in use. Value inuseis the cash or asset’s an of higher is amount Recoverable amount. recoverable the to down written are amount recoverable their exceeds value carrying whose Assets made. is unit generating asset/cash the of amount or If any such indication exists, an estimate of the recoverable assets other unit. from generating cash a as considered is assets, inflows of groups cash the of independent generates cash inflows from continuing use that are largely that of assets group identifiable smallest the impairment, for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 2.16 EmployeesStockOptionSchemes Equity settled stock options granted under “Employee under granted options stock settled Equity Contingent Liabilities: Contingent liabilities are disclosed Loss intheperiodwhichtheyareincurred. and Profit of Statement the in expense an as recognised useof Initial directcostsare the leasedassetisdiminished. the from derived benefit which in pattern time of the representative is which term lease the over basis line recognised in the Statement of Profit and Loss on a straight leases are leases. Leaseincomeonsuchoperating operating as classified are ownership of rewards and risks the all retained substantially has Group the where leases Loss onastraight-linebasisovertheperiodoflease. madeunder are Payments lessor operating leases are charged to the Statement leases. of Profit and the operating by as retained classified are ownership of rewards effects ofalldilutivepotential equity shares. is adjustedforthe the period during of sharesoutstanding number average weighted the and shareholders equity to attributable period the for loss or profit net the share, per in resources. For the purpose of calculating diluted earnings equity shares outstanding, without a corresponding change of potential equity shares, that have changed the number of for events, such as bonus shares, other than the conversion outstanding shares andforallperiodspresentedisadjusted the period during equity of number average weighted The any. if period, the for thereto tax attributable any and dividends preference deducting after period the for profit in ascertaining the Company’s earnings per share is the net considered Earnings period. the during outstanding shares equity of number average weighted toequity the by attributable shareholders theperiod for loss or profit net the original with investments maturities ofthreemonthsorless. liquid highly and short-term banks other with deposits demand hand, in cash include As alessor: As alessee: 2.17 Leases 2.19 EarningsPerShare 2.18 CashandEquivalents The Group has leased certain tangible assets and such and the risks of portion significant a which in Leases ai erig pr hr ae acltd y dividing by calculated are share per earnings Basic equivalents cash and cash statement, flow cash the In for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements * AmountisbelowtheroundingnormsadoptedbyCompany (a) Reconciliationofnumbershares Authorised Balance asattheendofyear Limited India LimitedheldbyWelspunZucchiTextiles Less :AdjustmentforEquitySharesofWelspun Employee StockOptionScheme(ReferNote36) Add :SharesissuedtoEmployeesunder Balance asatthebeginningofyear 3 :ShareCapital * AmountisbelowtheroundingnormsadoptedbyCompany Paid Up Subscribed and Issued, Equity Shares: 155,500,000 100,459,805 100,459,915 110 10 each (March 31,2014:155,500,000)EquitySharesofRs. Total held byWelspunZucchiTextilesLimited Shares ofWelspunIndiaLimited Less :Adjustmentfor110(March31,201450)Equity 10 eachfullypaidup (March 31,2014:100,346,515)EquitySharesofRs. Number of 100,459,805 100,346,465 Shares 113,400 March 31,2015 60 (Rs. million) Amount * 1,004.60 1,003.47 March31,2015 1.13 As At 1,004.60 * Number of 1,555.00 1,555.00 1,004.60 100,346,465 100,026,965 Shares 319,500 March 31,2014 - March31,2014 (Rs. million) As At Amount (Rs. million) 1,003.47 * 1,003.47 1,000.27 1,555.00 1,555.00 1,003.47 3.20 - 169

Annual Report 2015 Welspun India Ltd. 170 Annual Report 2015 Welspun India Ltd. esu Goa Bad Lmtd usat o h cmoie cee f ragmn bten esu Goa Brands Global Welspun between arrangement of Limited, theCompanyandWelspunRetailLimitedwithout payment beingreceivedincash. scheme composite the to pursuant Limited Brands Global Welspun preferential all of amounts, inproportiontotheirshareholding. distribution after Company the of assets remaining the receive to of eligible are approval shareholders the equity the to liquidation, subject of event is the In Directors dividend. interim of of case Board in except the Meeting, General Annual by ensuing the proposed in shareholders case the in dividend, The held. share per vote one for (e) Sharesallottedasfullypaid-uppursuanttocontract(s) withoutpaymentbeingreceivedincash (d) Rights,preferencesandrestrictionsattachedtoshares (c) Detailsofsharesheldbyshareholdersholdingmorethan5%theaggregatein (b) Sharesheldbyholdingcompanyandsubsidiaryof(Holdingas for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements Krishiraj TradingLimited Welspun WintexLimited Welspun MercantileLimited Equity Shares: turn isa94.37%subsidiaryofKrishirajTradingLimited) subsidiary ofGoldenarchEstatePrivatelimitedwhichin Welspun InfraDevelopersPrivateLimited(a78.66% Krishiraj TradingLimited Equity Shares: (during 5yearsimmediatelyprecedingMarch31, 2015): Company defined inAS-18:“RelatedPartyDisclosure”) 04546 qiy hrs f s 1 ec fly ad ee sud n aur 21 t te rthl saeodr of shareholders erstwhile the to 2013 January in issued were paid fully each 10 Rs. of shares equity 10,475,496 eligible is shareholder Each share. per Rs.10 of value par a having shares equity of class one has Company The Number of 50,509,877 11,246,576 Shares 8,425,291 of Shares 53,259,650 50,509,877 Number 2,749,773 March 31,2015 March 31,2015 (Rs. million) Amount (Rs. million) Amount 50.28 11.20 532.60 505.10 8.39 27.50 Number of 50,037,192 11,246,576 of Shares Shares 52,786,965 50,037,192 8,425,291 2,749,773 Number March 31,2014 March 31,2014 (Rs. million) (Rs. million) Amount Amount 527.87 500.37 27.50 49.86 11.21 8.40 for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements Add:Profit/(Loss)fortheyear Balanceasatthebeginningofyear ForeignCurrencyTranslationReserve BalanceasattheEndofYear Less:Gain/(Loss)TransferredtoStatementofProfitandLoss Add:AmountrecognisedinHedgingReserveduringtheYear(Net) BalanceasattheBeginningofYear Hedging ReserveAccount BalanceasattheEndofYear Add:Additionsduringtheyear Balanceasatthebeginningofyear SecuritiesPremiumAccount BalanceasattheEndofYear Add:Additionsduringtheyear Balanceasatthebeginningofyear CapitalReserve BalanceasattheEndofYear Balanceasatthebeginningofyear General Reserve BalanceasattheEndofYear as atApril1,2014onrevision ofusefullife(nettax)[ReferNote14.1] Less:Adjustmentforwritten downvalueoffixedassetsfullydepreciated Balanceasatthebeginning of theyear SurplusinStatementofProfitandLoss BalanceasattheEndofYear Add:Additionsduringtheyear Balanceasatthebeginningofyear CapitalRedemptionReserve Add:Additionsduringtheyear 4:ReservesandSurplus subsidiaries (Net) Add:AdditionsonTranslationofFinancialStatementsForeign March 31,2015 AsAt 9,418.26 5,397.90 1,462.20 1,137.84 3,237.80 3,234.90 1,474.73 1,474.73 4,093.31 (527.51) (567.40) (39.89) (72.95) 339.33 663.69 488.38 201.25 711.39 510.14 478.38 10.00 2.90 - March 31,2014 AsAt (Rs. million) 4,479.97 3,234.90 3,226.72 1,474.73 1,474.73 1,137.84 3,559.23 (964.62) (331.19) (148.95) (196.32) (527.51) 920.74 322.17 478.38 171.41 201.25 478.38 29.84 8.18 - - - 171

Annual Report 2015 Welspun India Ltd. 172 Annual Report 2015 Welspun India Ltd. *The Companyhastransferred10%oftheCurrentProfitstoGeneralReserve. having nominalvalueofRs.10pershare. share equity per Rs.7.50 of Dividend Final recommended 2015 29, April on held meeting their at Directors of Board The Note: for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 6 :Long-termBorrowings 5 :Shareapplicationmoneypendingallotment Total Less:Appropriations below] 10.40% RedeemableNon-convertible Debentures[ReferNote(a) Debentures : Secured : Share applicationmoneypendingallotment Total BalanceasattheEndofYear shares FinalDividendonEquitySharesforPreviousYearincremental Dividend distributiontaxonproposedFinaldividendEquityShares Proposed final dividend onEquitySharesfor theyear[ReferNotebelow] Proposed finaldividend Dividend distributiontaxonInterimdividendEquityShares Dividenddistributiontaxonfinaldividendincrementalshares Interim dividendonEquitySharesfortheyear Proposed finaldividendonPreferenceSharesfortheyear Dividend distributiontaxonProposeddividendPreferenceShares Transfer toCapitalRedemptionReserve Transfer toGeneralReserve*

March 31,2015 March 31,2015 March 31,2015 AsAt AsAt AsAt 1,000.00 13,313.88 7,629.65 153.38 753.45 301.28 510.14 60.24 10.00 0.10 0.02 - - - - March 31,2014 March 31,2014 March 31,2014 AsAt AsAt AsAt 10,092.90 (Rs. million) (Rs. million) (Rs. million) 4,093.31 301.04 51.16 29.84 0.52 0.35 0.06 3.60 0.61 0.52 - - - - fixed assetsoftheCompany. allotment. of date the from years 3 of end the at redeemable are debentures These yearly. half payable a. p. 10.40% of rate interest (a) Natureofsecurityandtermsrepaymentforsecureddebentures: for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements (b) Natureofsecurityandtermsrepaymentforsecuredborrowings(otherthandebentures): 4 3 2 1 Rupee TermLoansfromBanks[ReferNote(b)below] Term Loans: Foreign CurrencyLoansfromBanks[ReferNote(c)below] From Banks[ReferNote(d)below] Loan fromOthers[ReferNote(d)below] Unsecured : LoanfromFinancialInstitutions[ReferNote(b)below] Total The Company is in the process of creating security against these debentures by way of first pari passu charge on the on charge passu pari first of way by debentures these against security creating of process the in is Company The to Rs. The Companyhasissued1,000debenturesallottedonMarch31,2015aggregating 1,000 millions,whichcarry passu chargeovercurrentassets oftheCompany. pari second and properties immovable and movable all assets, fixed future and present the over charge passu pari first by secured is million) 648.50 Rs. : 2014 31, Rupee term loan amounting to Rs. 628.44 million (March Company. and properties immovable second paripassuchargeovercurrentassetsofthe and movable all assets, first pari passu charge over the present and future fixed by secured is million) 1,536.87 million Rs. : 1,362.99 2014 31, (March Rs. to amounting loan term Rupee passu chargeovercurrentassetsoftheCompany. pari second and properties immovable and movable all assets, fixed future and present the over charge passu pari first by secured is million) 350.00 Rs. : 2014 31, Rupee term loan amounting to Rs. 260.00 million (March Company. and properties immovable second paripassuchargeovercurrentassetsofthe and movable all assets, first pari passu charge over the present and future fixed by secured is million) 5,545.17 million Rs. : 3,786.04 2014 31, (March Rs. to amounting loan term Rupee NatureofSecurity from June2013.Lastinstallment dueinMarch2020. in 28 quarterly installmentscommencing Repayable from January2012.LastinstallmentdueinApril2019. in 30 quarterly installmentscommencing Repayable from April2009.LastinstallmentdueinJanuary2016. in 28 quarterly installmentscommencing Repayable from April2009.LastinstallmentdueinJanuary2016. in 28 quarterly installmentscommencing Repayable March 31,2015 Terms ofRepayment* AsAt 15,946.26 12,760.50 1,177.35 119.21 877.50 11.70 March 31,2014 AsAt 16,794.77 (Rs. million) 15,048.00 1,002.60 725.32 18.85 - 173

Annual Report 2015 Welspun India Ltd. 174 Annual Report 2015 Welspun India Ltd. for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements and StateGovernment InterestSubsidies/Rebates exceptitemnumber8, 11and12. Debentures are in the range of 10.93% to 12.75% (Previous Year : 11.50% to 12.85%). These loans are eligible for Central 12 11 10 9 8 7 6 5 Te ae f neet n h Ln Tr Las n h tbe bv (xet tm ubr 2 ad o Convertible Non and 12) number item (except above table the in Loans Term Long the on interest of rate The * assets oftheCompany. andimmovable properties andsecondparipassu chargeovercurrent movable all assets, thepresent fixed over future and is charge passu Nil) pari Rs. first by : secured 2014 31, (March million Rs.900.00 to amounting institution financial a from loan term Rupee assets oftheCompany. andimmovable properties andsecondparipassuchargeovercurrent movable all assets, fixed future and present the over charge passu pari first by secured is million 2,586.81 (March 31,2014:Rs.2,896.35million)inasubsidiary Rs. to amounting loan term Rupee charge overcurrentassetsoftheCompany. passu pari and second properties immovable and movable all assets, fixed future and present the over 31, 2014 : Rs. Nil) is secured by first pari passu charge Rupee term loan amounting to Rs. 62.50 million (March Company. and properties immovable second paripassuchargeovercurrentassetsofthe and movable all assets, first pari passu charge over the present and future fixed by secured is million) 1,219.26 million Rs. : 4,027.11 2014 31, (March Rs. to amounting loan term Rupee charge overcurrentassetsoftheCompany. passu pari and second properties immovable and movable all assets, fixed future and present the over Rs. 146.00 million) is secured by first pari passu charge Rupee term loan amounting to Rs. Nil (March 31, 2014 : Company. and properties immovable second paripassuchargeovercurrentassetsofthe and movable all assets, first pari passu charge over the present and future fixed by secured is million) 1,032.15 million Rs. : 1,133.41 2014 31, (March Rs. to amounting loan term Rupee Company. second paripassuchargeovercurrentassetsofthe fixed assets, all movable and immovable properties and future and present secured the over is charge passu pari first by million) 3,428.68 Rs. : million 2014 31, 3,524.14 (March Rs. to amounting loan term Rupee passu chargeovercurrentassetsoftheCompany. pari second and properties immovable and movable all assets, fixed future and present the over charge passu pari first by secured is million) 238.77 Rs. : 2014 31, Rupee term loan amounting to Rs. 229.82 million (March NatureofSecurity 00 Rt o Itrs 3 ots omril Paper Rate +220BPSp.a. Commercial months 3 Interest of Rate December 2020. in due installment Last 2016. March from in 20 quarterly installmentscommencing Repayable January 2022. in due installment Last 2014. April, from commencing in 32 Quarterly equal installments Repayable 2024. September in due installment Last 2017. March from in 31 quarterly installmentscommencing Repayable from March2016.LastinstallmentdueinJune2023. in 30 quarterly installmentscommencing Repayable the year. This Loan is converted in FCNR ( B) Dollar loan during 2021. from January2015.LastinstallmentdueinOctober in 28 quarterly installmentscommencing Repayable 2021. from December 2014. Last installment due in September in 28 quarterly installmentscommencing Repayable December in due 2021. installment Last 2014. April from in 32 quarterly installmentscommencing Repayable Terms ofRepayment* (d) Termsofrepaymentforunsecuredborrowings for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 7 :Deferredtaxliabilities(Net) 2 1 2 1 (c) Total -Others -UnabsorbedDepreciation and BusinessLossesofSubsidiaries -ProvisionforInventory -Expensesinadmissibleundersection40(a)oftheIncome TaxAct,1961 -ProvisionforEmployeeBenefits TaxAct,1961 -ProvisionforUnpaidStatutoryDuesunderSection43B of theIncome -ProvisionforDoubtfulDebts/Advances DeferredTaxAssetarisingonaccountofTimingdifferences in: -Depreciation DeferredTaxLiabilitiesarisingonaccountofTimingdifferencesin: 31, 2014:Rs.725.32million) Unsecured loan amounting to Rs. 119.21 million (March 31, 2014:Rs.22.77million). (March million 18.85 Rs. to amounting Limited Services Private Financial India Packard Hewlett from Loan Company. and second paripassuchargeovercurrentassetsofthe properties immovable and movable all fixed assets, future and present the over charge passu pari (March 31, 2014 : Rs.103.87 million) is secured by first million 239.77 Rs. to amounting loan Dollar (B) FCNR properties) ofthesubsidiary. immovable and movable (all assets fixed future and present the over charge passu pari first by secured is million (March 31, 2014 : 898.73 million) in a subsidiary Long term working capital loan amounting to Rs 937.58 NatureofSecurity NatureofSecurity eue tr la. h tr o rpyet il be will repayment of determined uponit'sdrawing. term The loan. a term of drawdown secured a through replaced be will loan This of interest 11%. 2017.Rate in due installment Last 2012. October from in 59monthlyinstalmentsbeginning Repayable Rate ofInterest6monthsLIBORrateplus3.75%p.a. from March2015.Lastinstallmentduein2021. in 28 quarterly installmentscommencing Repayable Rate ofinterestLIBOR(3months)+550bpsp.a. 2020. January in due Last installment 2015 from April in 20 quarterly installmentscommencing Repayable

Terms ofRepayment* Terms ofRepayment* March 31,2015 As At 1,457.16 640.73 621.57 44.67 48.03 36.38 21.34 37.72 6.72 March 31,2014 AsAt (Rs. million) 1,128.00 434.28 485.76 99.94 15.76 24.33 15.86 38.41 13.66 175

Annual Report 2015 Welspun India Ltd. 176 Annual Report 2015 Welspun India Ltd. guarantees issuedbycertaincompanieswithintheGroup. current assets of borrowing companies and second charge on entire fixed assets of borrowing companies and by other and debts corporate book and spares stores, goods, finished semi finished, stock-in-process, materials, raw of hypothecation 9 :Long-termProvisions 8 :OtherLong-termLiabilities for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 10 :Short-termBorrowings Note : Total PayabletoWelspunPipeLimited SecurityDeposits Total -WorkingCapitalLoansfromBanks Unsecured: -CommercialPaper -WorkingCapitalLoansfromBanks[ReferNotebelow] Secured: Total - Taxation(ReferNote33) OtherProvisions: ProvisionforCompensatedAbsences ProvisionforContingencies(ReferNote42) h wrig aia las wih nlds ah rdt n pcig rdt rm ak, r gnrly eue by secured generally are banks, from credit packing and credit cash includes which loans, capital working The March 31,2015 March 31,2015 March 31,2015 As At As At As At 10,034.21 1,008.94 1,500.00 8,262.11 272.10 888.42 100.52 11.02 11.02 20.00 - March 31,2014 March 31,2014 March 31,2014 AsAt AsAt AsAt (Rs. million) (Rs. million) (Rs. million) 11,348.77 11,125.56 599.57 953.76 595.87 223.21 867.78 18.63 67.35 3.70 - various banks. 12 :OtherCurrentLiabilities Note : 11 :TradePayables for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements ShareinJointVenture OtherPayables CreditorsforCapitalPurchases EmployeeBenefitsPayable Statutorydues(includingProvidentFundandTaxdeducted atSource) UnpaidDividends(ReferNote(a)below) TemporaryOverdraftwithScheduledBanks AdvancesfromCustomers UnearnedRevenue SecurityDeposits Total InterestAccruedbutnotdueonDebentures InterestAccruedbutnotdueonBorrowings PayabletoWelspunPipeLimited -FromOthers[ReferNote6(d)] ShareinJointVenture TradePayables Acceptances[ReferNotebelow] -FromFinancialInstitutions[ReferNote6(b)] -ForeignCurrencyLoansfromBanks[ReferNote6(c)] -RupeeTermLoansfromBanks[ReferNote(b)belowand6(b)] Currentmaturitiesoflongtermdebt Total cetne nlds neue vno fnnig f s 695 mlin Peiu ya R. ,6.9 million)from 1,262.69 Rs. year (Previous million 619.58 Rs. of financing vendor unsecured includes Acceptance March 31,2015 March 31,2015 As At As At 6,773.28 6,910.19 6,773.28 6,910.19 4,353.83 2,556.36 4,840.75 318.24 435.92 342.59 595.87 39.25 29.95 30.02 39.93 61.96 22.50 5.87 3.01 0.28 7.14 - - - March 31,2014 March 31,2014 AsAt AsAt (Rs. million) (Rs. million) 3,559.23 6,144.43 3,559.01 6,144.24 4,148.38 1,995.86 1,996.16 113.37 328.92 356.50 252.19 148.22 149.57 76.54 39.75 90.63 2.74 0.50 0.22 3.92 0.19 - - - 177

Annual Report 2015 Welspun India Ltd. 178 Annual Report 2015 Welspun India Ltd. 13 :Short-termprovisions Current certain of repayment for earmarked are Nil) Rs. : 2014 31, (March million 1,144.90 Rs. of Deposits Fixed (b) (a) TherearenoamountsdueforpaymenttotheInvestorEducationandProtectionFundunderSection205Cof Note : for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 14 A:TangibleAssets March31,2014 Total Computers OfficeEquipment FurnitureandFixtures Vehicles Notes 14.2,14.3and14.5below) PlantandMachinery(Refer LeaseholdImprovements -Provisionforproposedfinaldividendonequityshares -ProvisionforMark-to-MarketLossesonDerivatives -ProvisionsforContingencies(ReferNote42) -FringeBenefitTax(NetofAdvanceTax) Others -ProvisionforCompensatedAbsences Provisionforemployeebenefits ShareinJointVenture shares -Provisionfordividenddistributiontaxonproposedfinaldividedequity Buildings FreeholdLand OwnAssets Total Maturities ofLongTermLoansRs.4,471.21million(March31,2014:1,631.71million) been enforced. **Section 125 of the Companies Act, 2013 which corresponds to Section 205C of the Companies Act, 1956 has not yet Companies Act,1956asattheyearend.** Particulars 25,238.76 34,049.48 25,590.65 March 31, 4,811.27 2,471.34 As at As 2014 350.76 167.36 506.20 54.83 97.07 GrossBlock 34,049.48 42,979.79 33,155.76 March 31, 6,050.27 2,587.21 s at As 2015 336.78 186.94 500.00 100.48 62.35 Accumulated 15,654.37 14,088.85 March 31, 8,971.95 2014 upto 238.53 318.37 832.74 74.82 29.38 71.68 Depreciation - Accumulated March 31,2015 15,654.37 18,537.95 16,733.41 March 31, 2015 upto 258.86 118.13 325.66 987.42 33.22 81.25 As At - 932.02 753.45 932.02 153.38 7.55 9.22 1.90 6.52 18,395.11 24,441.84 16,422.35 March 31, 5,062.85 2,587.21 As at As - 2015 174.34 77.92 68.81 29.13 19.23 March 31,2014 Net Block AsAt (Rs. million) 18,395.11 11,501.80 March 31, 3,978.53 2,471.34 As at As 2014 436.25 112.23 187.83 301.04 445.66 (9.41) 92.54 25.45 25.39 73.93 11.80 51.16 1.90 5.83 14 C:GoodwillonConsolidationofSubsidiaries and JointlycontrolledEntity 14 B:IntangibleAssets 14.4 Additions to fixed assets during the year include capital expenditure of Rs. 51.31 million (Previous Year : Rs. Nil) Rs. : Year (Previous incurred onin-houseResearch&Developmentactivities[ReferNote43] million 51.31 Rs. of expenditure capital include year the during assets fixed to Additions 14.4 million 95.22 Rs. of (Previous Year:Rs.Nil)grantedundertheTechnologyUpgradationFund(TUF)Scheme. subsidy capital the for adjustments includes Machinery and Plant for Adjustments Deletions/ 14.3 construction ofqualifyingassetsarecapitalisedduringtheyearaspartcostsuchassets. or acquisition the to attributable million) 492.98 Rs. Year: (Previous million 176.17 Rs. aggregating Costs Borrowing 14.2 year islowerbyRs.391.06millionwithaconsequentialimpactonprofitaftertaxforthecurrentyear. current the for tax before profit and million 391.06 Rs. by higher is year current the for depreciation change, of result a As carrying value(netofresidualvalue)isbeingdepreciatedovertherevisedremainingusefullives. million (net of deferred tax of Rs. 38.02 million) has been adjusted to Reserves 72.95 and Rs. Surplus and to in amounting case 2014 of other 1, assets April the at as value) (net value carrying the Act), the to II Schedule under (prescribed lives useful their completed have which of assets case in Act. Consequently, II tothe Schedule under prescribed rates the with accordance in assets few of lives useful remaining the realigned have subsidiaries its of some and Company The .1 14 Notes : for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 14.5 TheCompanyhasgivencertainassetsonoperatinglease,detailsofwhicharebelow: March31,2014 Total Balance attheendofyear (NetofImpairmentRs385.74million) Add :Adjustmentsduringthe year onaccountofrestatement Less :Amortisedduringtheyear Add :Arisingonacquisitionduring theyear Balance asatthebeginningofyear(NetImpairment ofRs385.74million) Particulars ComputerSoftware OwnAssets Net Block Accumulated Depreciation Gross Block Particulars

Particulars March 31,2014 As at As 163.90 162.49 163.90 GrossBlock Buildings March 31,2015 AsatMarch31,2015 s at As 168.44 163.90 168.44 0.99 0.22 1.21 March 31,2014 Accumulated Machinery Plantand upto 112.75 110.15 112.75 Depreciation 32.10 35.18 3.08 March 31,2015 Accumulated upto 125.31 112.75 125.31 Buildings 31-Mar-15 AsatMarch31,2014 March 31,2015 1,785.07 1,838.61 (30.20) 0.22 0.99 1.21 As at As 32.33 8.99 43.13 51.15 43.13 Net Block Machinery Plantand 31-Mar-14 March 31,2014 (Rs. million) (Rs. million) (Rs. million) 1,838.61 1,753.94 As at As 113.35 51.15 51.15 27.59 29.04 34.80 1.45 6.12 179

Annual Report 2015 Welspun India Ltd. 180 Annual Report 2015 Welspun India Ltd. a) QuotedEquityInstruments Unquoted equityinstruments Trade Investments(valuedatcostunlessstatedotherwise) 15 :Non-currentinvestments for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements InOthers OtherInvestments(valuedatcostunlessstatedotherwise) 283,525 100 80 5 5 - paid upofWelspunEnterprisesLimited (March 31,2014:Nil)EquitySharesofRs.10eachfully value ofInvestment Less :ProvisionforotherthanTemporaryDiminutionin fully paidupofWelspunSyntexLimited (March 31,2014:283,500)EquitySharesofRs.10each paid upof (March 31,2014:100)EquitySharesofRs.10eachfully of WorliRealtyPrivateLimited. Shares ofRs.10eachfullypaidup (March 31,2014:459,670)8%RedeemablePreference paid upofKhaitanChemicals&FertilizersLimited (March 31,2014:80)EquitySharesofRs.1eachfully paid upofWelspunInvestmentandCommericalLimited (March 31,2014:Nil)EquitySharesofRs.10eachfully Weltreat EnviroManagementOrganisation March 31,2015 March 31,2015 As At As At 13.34 18.94 5.60 * * * * - March 31,2014 March 31,2014 AsAt AsAt (Rs. million) (Rs. million) 459.67 13.34 18.94 5.60 * * - - 16 :Long-termLoansandAdvances for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements b)Others Less:ProvisionforDoubtful Advances -ConsideredDoubtful -ConsideredGood AdvancesRecoverableinCashorKindforValuetobe Received SecurityDeposittoOthers -MertzSecuritiesLimited -WelspunRealtyPrivateLimited SecurityDepositstoRelatedParties CapitalAdvancetoOthers -WelspunProjectsLimited -Wel-treatEnviroManagementOrganisationLimited CapitalAdvancestoRelatedParties Unsecured,consideredgood(unlessotherwisestated): * AmountisbelowtheroundingnormsadoptedbyCompany Total Share inJointVenture 100 paid upofWelspunSteelLimited (March 31,2014:100)EquitySharesofRs.10eachfully for employees) Investment -CanaraBankHSBC(LifeInsurancePremium for employees) Investment -SBILifeInsurance(LifePremium employees) Investment -IndiafirstSM(LifeInsurancePremiumfor Aggregate provisionfordiminutioninvalueofInvestments Market ValueofQuotedInvestments Aggregate amountofQuotedInvestments Aggregate amountofUnquotedInvestments March 31,2015 As At 251.47 842.55 14.98 14.98 13.34 14.92 30.00 44.92 30.00 14.92 74.78 75.00 1.20 1.70 6.48 9.74 5.60 9.38 8.00 4.19 * - March 31,2014 As At (Rs. million) 473.26 473.25 467.66 151.47 740.91 13.34 14.54 30.00 44.54 30.00 14.54 85.33 75.00 42.29 1.20 1.30 5.48 0.01 2.17 5.60 8.00 * 181

Annual Report 2015 Welspun India Ltd. 182 Annual Report 2015 Welspun India Ltd. 17 :OtherNon-currentassets for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements Total ShareinJointVenture Less:ProvisionforDoubtfulBalances -ConsideredDoubtful -ConsideredGood Authorities BalanceswithCustoms,Excise,SalesTaxandotherGovernment *Heldaslienbysalestaxauthorities Total Less:ProvisionforAccruedInterest InterestAccrued-Others InterestAccruedonDeposits MarginMoneyDepositAccounts Fixeddepositswithmaturityperiodmorethan12months* StatusHolderIncentiveScripinHand MinimumAlternativeTaxCreditEntitlement March 31,2015 March 31,2015 As At As At 1,377.44 1,377.44 169.70 106.53 154.58 106.53 48.05 48.05 96.30 28.21 34.87 3.50 3.50 7.09 3.23 - March 31,2014 March 31,2014 As At As At (Rs. million) (Rs. million) 1,232.23 1,021.66 1,232.11 114.57 160.68 114.57 682.36 124.28 118.46 46.11 46.11 94.26 0.12 3.50 3.50 2.30 18 :CurrentInvestments for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements NonTrade-(Quoted) Unquotedequityinstruments TradeInvestments(valuedatcostunlessstatedotherwise) InOthers 500,000 500,000 459,670 1,720 1,660 243 74 25 41 19 10 50 - - Value ofRs.100each (March 31,2014:Nil)8.60% GOI 2028BondsofFace Face ValueofRs.100each (March 31,2014:Nil)8.27%GOI09/06/2020Bondsof of Rs.1,000,000each (2014 -15-SeriesII)TierIPerpetualBondsofFaceValue (March 31,2014:Nil)10.75%IDBIBankLimitedOmni Perpetual BondsofFaceValueRs.1,000,000each (March 31,2014:Nil)10.00%IndianOverseasBank Face ValueofRs.1,000,000each (March 31,2014:Nil)9.84%AirIndia27/09/2026Bondsof Bonds ofFaceValueRs.1,000,000each (March 31,2014:Nil)9.55%CanaraBankPerpetual Perpetual BondsofFaceValueRs.1,000,000each (March 31,2014:Nil)9.48%OrientalBankofCommerce Value ofRs.25,000each Corporation ofIndiaLimited05/11/2037BondsFace (March 31,2014:Nil)9.90%IndustrialFinance Value ofRs.25,000each Corporation ofIndiaLimited05/11/2027BondsFace (March 31,2014:Nil)9.90%IndustrialFinance Rs. 1,000,000each Corporation Limited31/05/2023BondsofFaceValue (March 31,2014:Nil)8.06%RuralElectrification Face ValueofRs.100each (March 31,2014:2,830,000)7.40%GOI2035Bondsof Face ValueofRs.100each (March 31,2014:1,500,000)8.30%GOI2042Bondsof Investment inBonds of WorliRealtyPrivateLimited. Rs.1,000,000 each (March 31,2014:Nil)8.15%PGCBondsofFacevalue Shares ofRs.10eachfullypaidup (March 31,2014:459,670)8%RedeemablePreference (AtCostormarketvaluewhicheverisless) March 31,2015 As At 259.18 459.67 53.79 51.33 74.01 27.49 41.41 19.00 44.03 43.53 10.12 49.17 - - March 31,2014 As At (Rs. million) 271.14 164.09 ------183

Annual Report 2015 Welspun India Ltd. 184 Annual Report 2015 Welspun India Ltd. for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 19 :Inventories ShareinJointVenture Stores,Spares,DyesandChemicals FinishedGoodsandTraded(ReferNote40) Work-in-Progress PackingMaterials RawMaterials Total 500,000 Total 101 60 50 8 - - - Market Valueofquotedinvestments Aggregate amountofquotedinvestments Rs.100,000 each (March 31,2014:9)7.50%WSPFBondsofFacevalue Rs.1,000,000 each (March 31,2014:167)8.80%FCIBondsofFacevalue value ofRs.25,000each (March 31,2014:972)9.90%IFCILimitedBondsofFace Bonds ofFaceValueRs.1,000,000each (March 31,2014:Nil)10.40%VijayaBankPerpetual Aggregate amountofunquotedinvestments 1,000,000 each of IndiaLimited20/05/2027BondsFaceValueRs. (March 31,2014:Nil)7.93%PowerGridCorporation of Rs.1,000,000each Utpadan NigamLimited26/03/2027BondsofFaceValue (March 31,2014:Nil)8.74%RajasthanRajyaVidyut of Rs.1,000,000each Utpadan NigamLimited05/01/2027BondsofFaceValue (March 31,2014:Nil)8.65%RajasthanRajyaVidyut Value ofRs.100each (March 31,2014:Nil)8.30%GOI2042BondsofFace March 31,2015 March 31,2015 As At As At 11,006.25 11,006.25 1,404.92 3,887.40 3,174.71 3,405.64 969.73 945.25 101.00 459.67 350.90 187.60 59.12 49.78 53.68 8.61 - - - - March 31,2014 March31,2014 As At As At (Rs. million) (Rs. million) 10,091.41 10,094.39 3,793.11 2,581.71 3,354.99 641.37 657.09 641.37 180.73 203.12 158.48 24.47 0.94 2.98 - - - - - 20 :TradeReceivables for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 21 :CashandBankBalances -ConsideredGood DebtsOutstandingforaperiodexceedingsixmonthsfromthedatetheyareduepayment: Unsecured ShareinJointVenture -UnpaidDividendAccount -InMarginMoneyDepositAccounts -FixedDeposits* Otherbankbalances -FixedDeposits(lessthan3monthsmaturity)* -InCurrentAccounts BankBalances CashonHand CashandEquivalents -ConsideredDoubtful -ConsideredGood OtherDebts: Less:ProvisionforDoubtfulDebts -ConsideredDoubtful Total Term borrowings b)FixedDepositsearmarked forrepaymentofCurrentMaturitiesLong a)FixedDepositsunderlien with salestaxauthorities Company *Includesthefollowingbalanceswhicharenotavailablefor usebythe Total ShareinJointVenture Less:ProvisionforDoubtfulDebts March 31,2015 March 31,2015 As At As At 4,467.02 4,324.52 4,467.02 4,335.59 3,252.32 1,245.32 1,770.55 3,252.32 1,144.90 142.50 142.50 152.85 215.78 11.07 10.35 10.35 11.07 11.35 5.87 3.45 0.04 - -

March 31,2014 March 31,2014 As At As At (Rs. million) (Rs. million) 4,117.05 2,332.15 4,019.81 4,116.78 4,019.81 1,095.86 2,324.48 114.80 411.62 803.49 96.97 96.97 17.83 17.83 0.27 6.68 2.74 4.09 0.04 7.67 - - - 185

Annual Report 2015 Welspun India Ltd. 186 Annual Report 2015 Welspun India Ltd. 23 :OtherCurrentAssets 22 :Short-termLoansandAdvances for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 24 :RevenuefromOperations Total ShareinJointVenture MinimumAlternativeTaxCreditEntitlement -WelspunCorpLimited LoanstoRelatedParties ShareinJointVenture Power&Steam FinishedGoodsandTraded Goods Sale ofProducts TechnologyUpgradationFundCreditReceivable GratuityFund(Net) Others InsuranceClaimReceivable InterestAccruedonDeposits InterestAccruedonBonds/CertificateofDeposits Mark-to-Marketgain(Net)onForward/SwapContracts InterestReceivableunderSubventionScheme -WelspunProjectsLimited ShareinJointVenture SecurityDepositstoOthers Authorities BalanceswithCustoms,Excise,SalesTaxandotherGovernment Others AdvancesRecoverableinCashorKindforValuetobeReceived -WelspunSyntexLimited Total March 31,2015 March 31,2015 March 31,2015 Year Ended As At As At 47,368.83 47,685.15 1,329.89 6,096.62 1,329.89 6,096.62 4,409.48 1,656.19 124.88 639.56 196.55 339.33 313.33 25.92 30.92 3.65 2.99 0.03 ------March 31,2014 March 31,2014 March 31,2014 Year Ended As At As At (Rs. million) (Rs. million) (Rs. million) 38,325.60 38,755.69 2,018.85 2,009.62 1,205.86 4,144.12 4,140.52 3,461.00 129.89 492.14 429.05 643.50 12.76 93.15 25.54 42.73 30.68 9.23 4.88 2.67 1.04 4.16 0.17 1.01 3.60

for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 25 :OtherIncome Profit onSaleofFixedAssets Profit onSaleofBonds/CertificateDeposits Sale ofScrap Sale ofCoal Sales TaxBenefit Other operatingrevenue Total ShareinJointVenture Miscellaneous Income onStatusholderIncentive Scrip Service Charges Provision forDoubtfulDebtsWrittenBack Liabilities /SundryBalancesWrittenBack Profit onRedemption/SaleofUnitsinMutualFunds Dividend Income Rent Discount andRebatereceived OnIncomeTaxRefund OnOthers OnBondsandCertificateofDeposits OnFixedDeposits Interest Income RevenuefromOperation(Net) Less:ExciseDuty RevenuefromOperation(Gross) ShareinJointVenture Others - DutyDrawbackBenefits - FocusMarketSchemeBenefits -ServiceTaxRebate Export Benefits Job WorkandProcessingCharges March 31,2015 March 31,2015 Year Ended Year Ended 53,025.11 53,481.25 1,107.27 2,696.03 1,303.31 5,796.10 5,797.25 949.42 496.94 948.82 508.92 136.60 456.14 (1.15) 36.19 47.46 24.54 13.59 79.41 38.14 84.20 52.91 65.34 39.26 0.37 0.60 6.40 7.48 1.54 0.10 0.07 -

March 31,2014 March 31,2014 Year Ended Year Ended 43,730.25 (Rs. million) (Rs. million) 43,782.85 1,041.50 2,390.05 1,040.44 5,027.16 5,027.01 906.18 244.57 452.56 970.13 586.93 105.72 28.32 57.64 15.95 75.57 41.24 84.95 56.88 17.66 52.60 0.15 9.52 6.64 1.06 6.40 5.22 1.41 3.91 - - 187

Annual Report 2015 Welspun India Ltd. 188 Annual Report 2015 Welspun India Ltd. 27 :EmployeeBenefitsExpense 26 :Materialsconsumed(ReferNote40) for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements I DefinedContributionPlans The Grouphasclassifiedthevariousbenefitsprovidedtoemployeesasunder:- Staff andLabourWelfare Contribution toProvidentandOtherFunds Salaries, Wages,AllowancesandOtherBenefits Share inJointVenture Finished GoodsandStock-in-Trade Opening StockofRawMaterial,PackingWork-in-Process, Other SocialSecurityFunds* Employers' ContributiontoSuperannuationScheme* Employers' ContributiontoEmployee’sStateInsurance* Employers' ContributiontoProvidentFund&PensionScheme* amounts intheStatementofProfitandLoss: During theyear,Grouphasrecognisedfollowing * IncludedinContributiontoProvidentandOtherFunds Finished GoodsandStock-in-Trade Less: ClosingStockofRawMaterial,PackingWork-in-Process, Add: PurchasesofRawMaterial,PackingMaterialandStock-in-Trade Add: TransferredfromCapitalWork-in-Progress

March 31,2015 March 31,2015 Year Ended Year Ended 2014-15 25,443.25 25,440.76 10,655.35 36,096.11 26,207.82 4,459.73 4,105.05 9,888.29 9,888.29 109.54 245.14 195.83 245.14 18.42 27.17 2.49 3.72 - March 31,2014 March 31,2014 Year Ended Year Ended 2013-14 22,673.38 (Rs. million) (Rs. million) (Rs. million) 22,660.30 32,548.59 24,292.94 3,399.98 3,094.64 8,081.32 8,255.65 9,888.29 116.47 188.87 174.33 188.87 147.74 13.08 18.93 19.57 2.63 equivalent to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act, Gratuity 1972. ThesameispayableatthetimeofseparationfromCompanyorretirement,whicheverearlier. of Payment the with line in service of year completed each for drawn last salary days fifteen to equivalent Contribution toGratuityFund II DefinedBenefitPlan for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements relevant factors. Assets recognisedintheBalance SheetasAssets Other currentAssets (ReferNote23) Recognised under: Amount notrecognisedasAssets Present ValueofUnfundedObligation Funded Status Fair ValueofPlanAssets Present ValueofFundedObligation and theFairValueofAssets d. ReconciliationofPresentValueDefinedBenefit Obligation Closing FairValueofPlanAssets Benefits paid Contributions Actuarial (Loss)/gainonObligations Expected ReturnonPlanAssets Opening FairValueofPlanAssets c. ChangeinFairValueofPlanAssets Opening PresentValueofObligation b. ChangeinthePresentValueofObligation a. MajorAssumptions Transfer fromWelspunCaptivePowerGenerationLimited Salary EscalationRate@ Expected RateofReturnonPlanAssets Discount Rate Closing PresentValueofObligation Actuarial Loss/(gain)onObligations Benefit/ Exgratiapaid Interest Cost Current ServiceCost eti Cmais prt gaut pa truh h Epoes rss Eey mlye s nild o benefit a to entitled is employee Every Trusts. Employees the through plan gratuity operate Companies Certain ‘@ The estimates for future salary increases considered takes into account the inflation, seniority, promotion and other

March 31,2015 2014-15 2014-15 2014-15 s at As 7.92-7.99 7.92-7.99 (16.50) 239.45 239.45 237.67 169.91 (19.09) 167.24 239.45 237.67 5 to10 (1.78) 66.00 14.78 % p.a. 21.27 15.59 52.66 5.26 - - - - March 31,2014 2013-14 2013-14 2013-14 s at As (Rs. million) 9.32 -9.39 (Rs. million) (Rs. million) (22.63) (25.58) 169.91 169.91 169.91 167.24 138.83 131.69 167.24 5 to10 (2.67) (2.67) 41.76 % p.a. 12.17 11.94 10.91 37.49 0.01 0.56 8.70 - - 189

Annual Report 2015 Welspun India Ltd. 190 Annual Report 2015 Welspun India Ltd. for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 73.18 million). The liabilityforleaveentitlementandcompensatedabsences asatyearendisRs.107.04million(March31,2014: III OtherEmployeeBenefit Total expensesrecognisedintheStatementofProfitandLoss Excess ofPlanAssetsoverObligation Net ActuarialLoss/(gain)recognisedintheyear Expected ReturnonPlanAssets Interest Cost Insurer managedfunds f. MajorCategoryofPlanAssetasa%totalAssets Current ServiceCost e. ExpensesRecognisedintheStatementofProfitandLoss Gratuity h. ExpectedContributiontothefundsinnextyear assumptions Actuarial gain/(loss)duetochangein assets Experience gain/(loss)adjustmentsonplan liabilities Experience (gain)/lossadjustmentsonplan (Surplus)/ Deficit Fair ValueofPlanAssets Defined Benefit obligation at the end of the year g. Amountsrecognisedincurrentyearandpreviousfouryears

March 31, s at As 2015 239.45 237.67 (0.76) (8.36) (1.78) 4.94 March 31, s at As 2014 169.91 167.24 (2.67) 22.12 34.98 0.33 March 31, March 31,2015 s at As 2013 138.83 131.69 2014-15 2014-15 (3.17) (7.14) 17.97 s at As 1.00 (14.78) 100.00 16.01 15.59 52.66 63.03 71.26 1.78 March 31, s at As 2012 (12.12) 117.99 112.00 (4.11) (5.99) March 31,2014 - 2013-14 2013-14 s at As March 31,

(Rs. million) (Rs. million) (Rs. million) s at As 2011 (23.63) (11.94) 100.00 (5.86) (4.45) 94.01 89.56 12.16 10.91 37.49 48.62 50.46 0.51 - 29 :DepreciationandAmortisationExpense 28 :FinanceCosts for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 30 :OtherExpenses Total Total FactoryBuilding PlantandMachinery RepairsandMaintenance: Power, FuelandWaterCharges Job WorkExpenses Contract LabourCharges Dyes andChemicalsConsumed Stores andSparesConsumed Amortisation onIntangibleassets Depreciation onTangibleassets(Refernote34) InteresttoOthers InterestonDebentures InterestonShort-termBorrowings InterestonLong-termBorrowings Directors'SittingFees Freight,ForwardingandCoolie Charges BrokerageandCommission Claims,DiscountsandRebates Others Share inJointVenture Share inJointVenture DiscountingandBankCharges Rent March 31,2015 March 31,2015 March 31,2015 er Ended Year er Ended Year Ended Year 3,329.33 2,829.01 1,187.09 2,154.97 1,000.97 3,281.59 1,354.50 1,045.04 2,828.96 1,132.27 3,329.13 147.39 631.58 692.29 472.46 383.16 205.50 420.49 278.22 59.72 47.54 8.65 0.28 3.07 0.20 0.05 March 31,2014 March 31,2014 March 31,2014 er Ended Year er Ended Year Ended Year

6,863.31 2,352.11 (Rs. million) (Rs. million) (Rs. million) 1,174.10 1,662.95 6,810.19 1,070.32 2,351.89 6,863.31 115.33 379.98 669.59 719.56 933.49 416.75 363.87 193.17 331.64 874.28 291.90 16.44 44.34 53.12 1.47 0.22 - - 191

Annual Report 2015 Welspun India Ltd. 192 Annual Report 2015 Welspun India Ltd. for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements Total Total RatesandTaxes PrintingandStationery SecurityExpenses ManagementServiceFees LegalandProfessionalCharges TravellingandConveyance Communication Insurance PostageandCourier ProvisionforDoubtfulDebts/Advances LossonRedemption/SaleofUnitsinMutualFunds LossonSale/DiscardingofFixedAssets(Net) ExchangeLoss(Net) LossonCancellation/SettlementofForwardContracts(Net) DesignandDevelopmentExpenses Debts/AdvancesWrittenoff Royalty Donations AdvertisingandSalesPromotion Auditors'Remuneration Corporate SocialResponsibilityExpenses Share inJointVenture Miscellaneous SalaryCost InterestCost ExpensescapitalisedasapartofCapitalWork-in-progress Note: OtherExpenses March 31,2015 er Ended Year 10,380.32 10,379.34 237.41 203.40 290.06 119.77 207.79 552.52 126.57 207.59 53.06 25.38 35.79 66.10 45.62 35.04 74.91 65.39 56.65 13.26 20.20 26.44 22.90 8.48 4.22 0.98 6.92 - - March 31,2014 er Ended Year

8,445.75 (Rs. million) 8,445.10 237.18 193.13 276.36 110.15 276.88 154.80 191.58 55.42 18.85 32.76 84.15 39.74 41.30 21.16 45.15 58.70 64.40 39.70 18.10 32.56 13.04 0.15 0.11 6.80 0.65 - - (a) CapitalCommitments 32. :Capitalandothercommitments: 31. :ContingentLiabilities: for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements (b) OtherCommitments ofRs.Nil(PreviousYearRs0.14million)] StampDutyMatter[includingshareofjointventure Excise,CustomsandServiceTaxMatters of ExportCommitmentsonabove. isRs.61.82 Company the by million fulfilled as at March be 31, 2015 (Rs. 22.65 to million as at yet March 31, 2014). Amount is obligation export which a specified time. Amount of duty saved on imports of above goods against Company will fulfill, in future, a specified amount of export obligation within the that condition the to subject free, duty made be to allowed are material raw of imports Scheme, License Advance under and free duty made be to allowed are goods capital of imports Scheme, EPCG the with accordance In Bank Guarantees Bill DiscountedinrespectofExportDebtors (Net ofCapitalAdvances) Estimated valueofContractsinCapitalAccountremainingtobeexecuted Claimsagainstthegroupnotacknowledgedasdebts ofRs.Nil(PreviousYear31.88million)] IncomeTaxMatters[includingshareofjointventure SalesTaxMatters (b) TheGroupdoesnotexpectanyreimbursementsinrespectoftheabovecontingentliabilities. (a) It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above pending resolution oftherespectiveproceedings. Description Description Description March 31,2015 March 31,2015 March 31,2015 500.20 As at As at As at 2,220.39 3,664.63 341.24 185.29 140.82 50.75 56.45 4.83 March 31,2014 March 31,2014 March 31,2014 182.40 As at As at As at (Rs. million) (Rs. million) (Rs. million) 1,510.05 2,817.40 344.28 167.65 37.80 50.75 38.08 4.60 193

Annual Report 2015 Welspun India Ltd. 194 Annual Report 2015 Welspun India Ltd. forward contractsandswaptransactionsareexpectedtooccurduringthesameperiod. forecasted and months twelve maximum of period a for are contracts These exposure. its manage to contracts currency foreign into enters Company the procedures, and policies management risk company’s the with line currency.In foreign 35 :DerivativeInstrumentsoutstandingasatMarch31,2015 34 : 33 : for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements (II) (i) (a) The following are outstanding foreign currency forward, swaps and other derivative contracts against the forecasted in denominated payables liabilities, assets/ currency foreign on fluctuations currency foreign to exposed is group The ended March31,2014washigherbyRs.4,738.09million. Rs.107.13 million due to the the change in the to method. addition Accordingly, depreciation and In amortization expenses year. for the previous year the by higher in was 2014 31, March to 2013 1, provided July period the for depreciation depreciation, incremental was aforementioned change the from arising 2013 30, June upto period the for [Companies (Accounting Standards) Rules, 2006, as amended]. The incremental depreciation of Rs. 4,630.96 million 211(3C) Section under notified Accounting” “Depreciation 6 Standard Accounting with accordance in 2013 30, June recalculated under the reducing balance method for the period from the date on which the assets came into use upto appropriate preparation and presentation of the Financial Statements of the company. Accordingly, depreciation was providing of method the providing more changed in result would it that considered was Company of it as method balance reducing to the method straight-line from depreciation re-assessment, method the on the Based etc. re-assessed use their management of nature the assets, of , type the consideration into 2013 taking after installations) 1, electrical than (other July machinery and plant from its on depreciation effect with year, previous the In Rs. 310.70million. by higher be could expense tax current the then Limited, India Welspun against decided eventually is matter the in decision final the If orders. aforesaid the against appeal an filed has Company The nature. in revenue as incentives these treating orders passed have authorities Tax Income purposes. tax income for receipts’ ‘capital as incentives the on Tax Added Value and Excise certain of treatment its of out arising depreciation Income-tax unabsorbed incremental million 310.70 Rs. aggregating period earlier in recognized assets tax deferred utilised has Company The Forward Contracts(Buy) Forward Contracts(Sell) Forward Contracts(Buy) Forward Contracts(Buy) Forward Contracts(Buy) Cash FlowHedges payables: EURO-USD USD-INR JPY-INR USD-INR EURO-INR Pair Currency - (in million) Currency Foreign 358.11 351.70 Notional Amount - - March 31,2015 - Rs. million 23,383.19 192.54 - - - Fair Value million" (Loss) "Gain/ 339.33 Rs. - - - 4.15 Currency "Foreign million)" (in Rs. 364.67 Notional Amount 18.82 5.00 -

March 31,2014 336.51 Rs. million 23,956.98 1,198.34 429.63 - - Fair Value 1,205.86 million" (Loss) "Gain/ (54.40) (13.62) Rs. -

(ii) (i) per equityshare(closingmarketpriceasonJune30,2009).ThesalientfeaturesoftheSchemeareunder: “Scheme”) to employees of the Company with a right to subscribe to equity shares (“New Options”) at a price of Rs. 35.60 On June 30, 2009, the Company issued Employee Stock Options (ESOP) under the Employee Stock Options Scheme (the 36 :DetailsofEmployeesStockOptions for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements Options vested butnotexercisedattheyear end Options outstanding attheendofyear Options forfeited/lapsedduring theyear Options exercisedduringthe year Options grantedduringtheyear Options outstandingatthebeginning oftheyear Exercise Price Exercise Period Vesting Conditions Granted Number ofOptions Date ofGrant Forward Contracts(Buy) Fair ValueHedges (b) In addition to the above, the Group has following outstanding foreign currency forward contracts to hedge foreign hedge to contracts forward currency foreign outstanding following has Group the above, the to addition In (b) specifically providedforintheScheme. cessation of employment due to death, resignation or otherwise, the Options may lapse or be exercisable in the manner to thenumberofequitysharesinratioone Exercise: Options vested with an employee will be exercisable within 3 years from the date of their vesting by subscribing tovestateachofthe3rdand4thanniversaries ofthedategrant. - 30%oftheOptionsgranted tovestateachofthe1stand2ndanniversaries ofthedategrant. - 20%oftheOptionsgranted Vesting: Optionstovestoveraperiodoffouryearsfromthedatetheirgrantsasunder: (c) Net profit on derivative instruments of Rs.339.33 million recognised in Hedging Reserve as on March 31, 2015, is 2015, 31, March on as Reserve Hedging in recognised million Rs.339.33 of instruments derivative on profit Net (c) currency exposureagainst expected toberecycledtheStatementofProfitandLossbyMarch31,2016. Summary ofStockOptions Rs. 35.60 3 years 2,265,000 June 30,2009 the timeoptionsareduetovest. continues to be in employment of the Company at grantee option the if only vest would options The EURO-INR Pair Currency

Currency Foreign million) (in Rs. NotionalAmount 2.00 equity share for every option at the Exercise Price. In the event of event the In Price. Exercise the at option every for share equity March 31,2015 million 135.72 Rs. Options No. of Stock 118,500 March 31,2015 12,600 12,600 98,900 7,000 Restatement Rs. million" - (Loss) "Gain/ On Price (Rs.) Weighted (4.65) Exercise Average 35.60 35.60 35.60 35.60 35.60 Currency Foreign million) (in Rs. NotionalAmount - 1.90 Options No. of Stock 552,000 118,500 118,500 334,000 March 31,2014 99,500 March 31,2014 million 166.15 Rs. - Price (Rs.) Weighted Exercise Average Restatement Gain/ (Loss) Rs. million On (5.91) 35.60 35.60 35.60 35.60 35.60

- 195

Annual Report 2015 Welspun India Ltd. 196 Annual Report 2015 Welspun India Ltd. Information inrespectofoptionsoutstandingasatMarch31,2015 for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements recognised basedonthefairvalueatdateofgrantinaccordancewithBlackScholes’model. The group’s earnings per share would have been as under, had the compensation cost for employees stock options been has beenrecognised. equity shares of the Company was equal to the exercise price of an option, no expense or liability arising from the Scheme has been determined by an independent valuer. Since, on the date of grant of option, quoted market price of the underlying issued by the Institute of Chartered Accountants of India in respect of stock options granted. The value of underlying share method as permitted by the SEBI Guidelines and the Guidance Note on Accounting for Employee Share Based Payments value intrinsic the using Company the by accounted are employees to granted options stock of costs compensation The Value Weighted AverageOptionFair Option FairValue Dividend Yield Time toMaturity Exercise Price Riskfree Rate Volatility Stock Price Variables Value (netoftax) Less: AdditionalEmployeeCompensationCostbasedonFair Profit availableforEquityShareholders Number ofShares(Weightedaverage) Basic Earnings PerShare(EPS) Profit aftertaxationasperFairValueMethod Number ofShares(Weightedaverage) Diluted Performa BasicEarningsPerShare Basic EarningsPerShareasreported Performa DilutedEPS Diluted EPSasreported No. ofStockOptions 12,600 Particulars June30, 2010 Weighted Averageremaining Vest 1 63.52% 6.15% 14.83 35.60 34.85 20% 2.50 0% life inyears June30, 2011 Vest 2 Grant Date:June30,2009 59.33% 6.31% 16.69 35.60 34.85 20% 3.50 0% 1.25 17.49 June30, 2012 March 31,2015 Vest 3 Weighted AverageExercise 100,415,091 100,426,376 54.45% 5,397.90 5,397.75 6.46% 17.85 35.60 34.85 30% 4.50 53.75 53.76 53.75 53.75 0% 0.15 Price (Rs.) March 31,2014 June30, 2013 (Rs.million) Vest 4 100,173,531 100,247,443 53.18% 35.60 920.22 918.65 6.61% 19.42 35.60 34.85 30% 1.57 9.17 9.19 9.16 9.18 5.50 0% 17 onSegmentReporting,whichareconsideredtoconstituteseparateprimarysegments. Standard Accounting of context the in Power, of generation and Textiles Home of business the in engaged is Group The i) InformationaboutPrimaryBusineessSegment 37 :SegmentInformationfortheyearendedMarch31,2015 Effect ofshare-basedpaymentplanontheBalanceSheetandStatementProfitLoss: for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 1 No. Sr. Deferred StockCompensation Expense arisingfromemployeeshare-basedpaymentplan 3 2 *Gross revenueisafterelimination ofintersegmentrevenueRs.2,318.29million. Segment Revenue Particulars Segment Assets Capital Expenditure Segment liabilities Less: InterestExpenses Segment ResultbeforeInterestandTax Less :Exciseduty Gross Revenue Inter SegmentRevenue External Revenue Depreciation andAmortisation Expenses Add: Un-allocableincomenetofun-allocable Net RevenuefromOperation and Amorttisation Non CashexpenditureotherthanDepreciation Current Tax Profit beforeTax Deferred Tax Subsidiary Companies Less :Minority'sShareofProfit/(Loss)in Profit/( Loss)ofMinorityShareholders Profit AfterTaxationandBeforeShareof Profit fortheyear 50,025.83 Textiles 53,129.15 53,120.96 52,673.01 Home 9,762.34 5,721.44 9,755.01 2,854.84 9,762.34 9,762.34 9,762.34 456.14 12.70 8.19 - - - - - March 31,2015 Power 3,555.70 2,670.40 2,310.10 2,670.40 315.54 414.56 360.29 474.49 315.54 315.54 315.54 80.27 ------Unallocable (2,544.99) (4,635.02) (4,679.98) 32,421.37 3,371.80 2,829.01 1,845.56 - - 284.01 244.47 44.96 March 31,2014 ------10,077.88 56,953.33 53,481.25* (Rs. million) 53,481.25 42,256.65 53,025.11 Total 2,829.01 6,136.00 3,329.33 7,532.89 1,845.56 5,442.86 5,397.90 456.14 284.01 244.47 12.70 44.96 - - 197

Annual Report 2015 Welspun India Ltd. 198 Annual Report 2015 Welspun India Ltd. Previous YearendedMarch31,2014 for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements (b) (a) Notes: ii) InformationaboutSecondaryGeographicalSegments: *Gross revenueisaftereliminationofintersegmentRs.1.574.38million. 1 No. Sr. 3 Capital Expenditure Carrying AmountofSegmentAssets External Revenue 2 on Segment Revenue and assets include the respective amounts identified to each of the segments and amounts allocated benefits onsalesmadetocustomers locatedoutsideIndia. a -Revenue outsideIndiaincludes salestocustomerslocatedoutsideIndia,earnings indiaandexport -Revenue withinIndiaincludes salestocustomerslocatedwithinIndia&earningsinIndia. fordisclosureasfollows: revenueinthegeopgraphical segmentsconsidered The segment reasonable basis. Segment Revenue Particulars Segment Assets Less :Exciseduty Gross Revenue Capital Expenditure Inter SegmentRevenue External Revenue Segment liabilities Net RevenuefromOperation Segment ResultbeforeInterestandTax Depreciation andAmortisation Less: InterestExpenses and Amorttisation Non CashexpenditureotherthanDepreciation Expenses Add: Un-allocableincomenetofun-allocable Current Tax Profit beforeTax Less :MinimumAlternativeTaxCreditAvailed Deferred Tax Profit/( Loss)ofMinorityShareholders Profit AfterTaxationandBeforeShareof Subsidiary Companies Less :Minority'sShareofProfit/(Loss)in Profit fortheyear 31-Mar-15 48,982.70 6,120.45 4,839.91 India 31-Mar-14 43,697.18 7,552.57 4,503.71 44,359.77 Textiles 43,107.15 43,106.83 43,054.55 Home 7,406.07 7,805.46 3,311.69 6,338.00 3,311.69 3,311.69 3,311.69 52.60 48.21 0.32 31-Mar-15 48,185.20 7,970.64 ------Outside India 15.54 Power 3,890.91 2,250.08 1,574.06 2,250.08 (202.44) (202.44) (202.44) (202.44) 171.83 181.95 676.02 525.31 31-Mar-14 39,226.54 7,986.83 ------25.33 Unallocable (2,072.03) (1,464.78) (2,270.96) (2,188.52) 32,283.65 3,433.33 2,352.11 1,784.88 (121.17) 31-Mar-15 56,953.34 53,025.11 (82.45) 280.08 6,135.99 ------Total Total 51,684.01 31-Mar-14 43,782.85* (1,464.78) 51,684.01 43,730.25 40,271.06 43,782.85 43,730.25 7,577.90 7,577.90 3,109.25 6,863.31 2,352.11 1,037.22 1,784.88 (121.17) (82.45) 280.08 838.29 920.74 52.60 48.21 38 :RelatedPartyDisclosures for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements (i) Relationships (c) (b) (a) place duringtheyear with whomtransactionshavetaken significant influenceorcontroland of suchpersonnelexercise Management Personnelorrelatives Enterprises overwhichKey Joint VentureCompany Holding Company Control Viraj RenewableEnergyPower Limited(VREPL) Welspun &InfraDevelopersLimited (WIDL) Technopark AdvisorsLimited(TAPL) Welspun InfraLimited(WInfra) Welspun PipeInc. Welspun UrjaIndiaLimited(WUL) Welspun TradingLimited(WTL) Welspun EnergyUPPrivateLimited(WEUPL) Welspun SolarMPPrivateLimited(WSMPL) Welspun SolarAPPrivateLimited(WSAPL) Welspun FoundationforHealthandKnowledge(WFHK) Welspun UrjaGujaratPrivateLimited(WUGPL) Welspun FinanceLimited(WFL) Welspun FinTradeLimited(WFTL) Welspun ProjectsLimited(WPL) Welspun MaxsteelLimited(WMSL) Wel-treat EnviroManagementOrganisationLimited(WEMO) Welspun EnergyLimited(WEL) Welspun PolybuttonsLimited(WPBL) Mertz SecuritiesLimited(MSL) Krishiraj TradingLimited(KTL) Welspun MercantileLimited(WML) Welspun WintexLimited(WWL) Limited) Welspun SteelLimited(WPSL)(FormerlyKnownasPowerand Remi MetalsGujaratLimited(RMGL) Welspun LogisticsLimited(WLL) Welspun RealtyPrivateLimited(WRPL) Welspun InvestmentsandCommercialsLimited(WICL) Welspun SyntexLimited(WSYNL) Vipuna TradingLimited(VTL) Rohren Limited(WGSRL)) Welspun CorpLimited(WCL)(FormerlyknownasGujaratStahl Welspun ZucchiTextilesLimited(WZTL)* through sharesheldbyitssubsidiarycompany)(ReferNote3(b)) Krishiraj TradingLimited(KTL)(throughownshareholdingand 199

Annual Report 2015 Welspun India Ltd. 200 Annual Report 2015 Welspun India Ltd. * OnJanuary30,2015,WelspunZucchiTextilesLimited(WZTL)becamea100%subsidiary. for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements (e) (d) Relatives ofKeyManagement Key ManagementPersonnel Yash Mandawewala(YRM) Khushboo Mandawewala(KAM) Abhishek Mandawewala(ARM) Radhika Goenka(RBG) Dipali Goenka(DBG) R. Mandawewala(RRM) B.K.Goenka (BKG) Worli RealityPrivateLimited(WorliRealty) Welspun OrrisaSteelPrivateLimited(WOSPL) Welspun Developers&InfrastructurePrivateLimited(WDIPL) Welspun UrjaIndiaLimited(WUIL) Methodical InvestmentandTradingCompanyPrivateLimited Welspun SteelResourcesPrivateLimited(WSPRL) (MITCPL) 38 (ii) : Following are the transactions with related parties mentioned in (i) above and the year-end balances

PARTICULARS WCL SYNL WZTL WPL WSAPL WEUPL WRPL WLL RMGL WPSL WTL WWL WML KTL Total c/f

Transactions during the year Loans, Advances and Deposits given ------200.00 - - - 6.04 - - - 206.04 ------Repayment of Loans, Advances and ------100.00 - - - 6.04 - - - 106.04 Deposits given - - - (0.01) ------(0.01) Loans, Advances and Deposits received 1.20 ------1.20 ------Purchase of Goods (Including Taxes) 89.74 673.85 ------13.29 - - - - 776.88 (207.68) (498.21) (12.01) ------(18.56) (36.40) - - - (772.86) Purchase of Services/ Expenses incurred 12.01 - - - - - 36.57 9.89 - 0.06 - - - - 58.52 (25.92) - (0.37) - - - (37.05) (39.57) - (16.40) - - - - (119.30) Sale of Goods/ DEPB Licenses (Including Taxes) 29.32 1.57 - 0.63 - 0.04 - - 0.04 30.58 0.07 - - - 62.25 (337.22) (4.20) (0.06) (0.83) (0.40) - - - (0.03) (172.76) (0.04) - - - (515.55) Sale of Services/ Expenses incurred 15.56 0.20 - 1.16 - - - - - 3.60 - - - - 20.52 (19.11) (0.78) - (0.13) - - - - (0.03) (5.22) - - - - (25.27) Purchase of Fixed Assets / Capital Goods 17.20 - - 222.88 - - - - - 60.73 - - - - 300.81 (19.40) - (3.33) (631.21) - - - - (0.06) (13.86) - - - - (667.86) Commission on Corporate Guarantee ------10.59 - 10.59 (5.21) ------(13.02) - - - - (18.23) Managerial Remuneration ------Investment Made during the year ------(36.80) - (0.10) ------(36.90) Sale of investment during the year ------Equity Dividend Paid - # # ------# - 25.28 33.74 150.96 209.98 - (#) ------(16.85) (22.49) (56.47) (95.81) Interim Equity Dividend Paid ++ - # - - 25.28 33.74 150.96 209.98 ------Preferance Dividend Paid ------Donation ------Corporate Social Responsibility Expenses ------Redemption of Preferance Share ------Issue of Equity Shares ------(21.55) (4.82) ------(11.35) - - - - (37.72) Issue of Preference Shares ------(2.89) ------(2.89) Closing Balance Loans, Advances and Deposits received 2.40 ------2.40 (including interest accrued but not due) (4.20) - (5.00) ------(9.20) Loans, Advances and Deposits given (including - 0.03 - 4.19 - - 251.47 ------255.69 interest accrued on loan) (4.16) (0.17) - (43.30) - - (151.47) ------(199.11) Trade Receivables (Net of Bills Discounted with ------Banks) (25.05) (0.13) (0.03) ------(31.28) - - - - (56.49) Trade Payables and Others 1.03 10.88 - 7.48 - - - - 0.03 15.61 - - - - 35.03 (14.18) (4.02) (12.13) (74.40) - - - (0.02) (0.06) (13.90) - - - - (118.71) Investments - 18.94 ------# - - - - 18.94 - (18.94) (34.56) ------(#) - - - - (53.50) Provision for diminution in value in investment - 13.34 ------13.34 - (13.34) ------(13.34) Corporate Guarantee Received ------1,500.00 - - - - 1,500.00 (600.00) ------(1,500.00) - - - - (2,100.00) Notes Previous year figures are given in brackets * Amount is inclusive of taxes + Dividend paid of Financial Year 2013-14 ++ Interim Dividend paid of Financial Year 2014-15 # Amount is below the rounding norms adopted by the Company 201

Annual Report 2015 Welspun India Ltd. 202 Annual Report 2015 Welspun India Ltd.

38 (ii) : Following are the transactions with related parties mentioned in (i) above and the year-end balances

Worli PARTICULARS Total b/f MSL WPBL WEL WEMO WMSL MITCPL WFTL WFL WFHK W INFRA WDIPL WOSPL BKG RBG ARM DBG RRM KAM YRM WIDL TAPL TOTAL Realty Transactions during the year Loans, Advances and Deposits given 206.04 ------206.04 ------Repayment of Loans, Advances and 106.04 ------106.04 Deposits given (0.01) ------(0.01) Loans, Advances and Deposits received 1.20 ------1.20 ------Purchase of Goods (Including Taxes) 776.88 - 2.23 ------779.12 (772.86) - (3.56) ------(776.42) Purchase of Services/ Expenses incurred 58.52 2.74 - - - - 1.36 ------0.13 62.74 (119.30) (2.74) (0.27) - - (0.06) (1.06) - - - - (0.05) ------(123.49) Sale of Goods/ DEPB Licenses (Including 62.25 - 0.12 1.97 - 5.08 - - - 2.72 - - 0.05 ------72.19 Taxes) (515.55) - (0.13) (1.92) - (0.08) - - - (0.14) - - (0.04) ------(517.86) Sale of Services/ Expenses incurred 20.52 ------20.52 (25.27) - - (0.01) - (0.12) ------(25.40) Purchase of Fixed Assets / Capital Goods 300.81 ------300.81 (667.86) - - - - (0.03) ------(667.89) Commission 10.59 ------10.59 (18.23) ------(18.22) Managerial Remuneration ------71.13 - 3.06 106.74 88.61 1.03 1.40 - - 271.97 ------0 - (2.80) (38.39) (17.47) (0.95) (0.56) - - (60.17) Investment Made during the year ------

(36.90) ------(2,236.90) (2,200.00) Sale of investment during the year ------(3.70) - - (2.40) ------(6.10) Equity Dividend Paid 209.98 - - - - - 0.02 - 1.63 - - - - - 0.21 0.60 - 0.23 # - - 8.25 - 220.91 (95.81) - - - - - (0.02) (40.29) (1.08) - - - - - (0.14) (0.40) - (0.15) (#) - - - - (137.89) 209.98 0.02 - 1.63 - - - 0.21 0.60 - 0.23 # - - 8.25 - 220.91 ------Preferance Dividend Paid ------(3.59) ------(3.59) Donation ------(28.20) ------(28.20) Corporate Social Responsibility Expenses ------25.46 ------25.46 ------Redemption of Preferance Share ------(250.00) ------(250.00) Issue of Equity Shares ------(37.72) ------(37.72) Issue of Preference Shares ------(2.89) ------(2.89) Closing Balance ------Loans, Advances and Deposits received 2.40 ------2.40 (including interest accrued but not due) (9.20) ------(9.20) Loans, Advances and Deposits given 255.69 8.00 - - 75.00 ------338.69 (including interest accrued on loan) (199.11) (8.00) - - (75.00) ------(282.11) Trade Receivables (Net of Bills ------Discounted with Banks) (56.49) - - (1.18) ------(57.67) Trade Payables and Others 35.03 - 0.23 ------71.13 - - 86.94 71.13 - - - 0.06 264.53 (118.71) - (0.21) - - - (0.45) - - - (0.17) ------(18.59) - - - - - (138.13) Investments 18.94 ------459.67 ------478.61 (53.50) ------(459.67) ------(513.17) Provision for diminution in value in 13.34 ------13.34 investment (13.34) ------(13.34)

Corporate Guarantee Received 1,500.00 ------1,500.00

(2,100.00) ------(2,100.00) Notes Previous year figures are given in brackets * Amount is inclusive of taxes + Dividend paid of Financial Year 2013-14 ++ Interim Dividend paid of Financial Year 2014-15 # Amount is below the rounding norms adopted by the Company million) . Rs.291.90 Year: (Previous million 278.22 Rs. are year the for leases operating the all of expenses rental aggregate The With respecttonon-cancellableoperatingleases,thefutureminimumleasepaymentsareasfollows: of boththelessorandlessee.Theinitialtenureleaseisgenerallyforelevenmonthstosixtymonths. premises, office residential, various at theoption basis a periodic on renewable that are agreements lease operating under vehicles and equipment godowns, taken have entity controlled jointly it’s and subsidiaries its of some Company, The Operating Lease A. Asalessee: 39 :Leases for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 41 :Earnings/(Loss)perShare 40 : Later than5years Later than1yearandnotlater5years Not laterthan1year Less: DividendonPreferenceShares(IncludingDistribution Tax) Profit afterTax - WeightedNumberofequitysharesoutstandingduringthe year(B) NumberofEquitySharesforBasicEarningsPerShare Profit availableforEquityShareholders(A) WeightedNumberofdilutedequitysharesoutstandingduring theyear(C) Add: WeightedAveragenumberofoutstandingemployeestock options Nominal valueofanequityshare (Rs.) Diluted Earningspershare(A/C) (Rs.) Basic Earningspershare(A/B)(Rs.) finished goodsandtradedaregroupedtogetherinNote19. of inventories Similarly, together. grouped are goods traded and goods finished progress, in work material, packing purchase of raw materials ,packing material and traded goods are grouped together together, and grouped are closing goods stock traded and of goods raw finished material, progress, in work material, packing materials, opening raw of 26, stock Note in presentation of purposes the for Hence, separately. goods traded of purchases and material packing materials, raw of consumption purchases/ track not do systems accounting Companies’ Subsidiary Certain Particulars Particulars

March 31,2015 March 31,2015 Year Ended As at 100,415,091 100,426,376 ) n o i l l i m . s R ( 5,397.90 5,397.90 171.82 495.09 144.30 11,285 53.75 53.76 10 - March 31,2014 March 31,2014 Year Ended As at 100,173,531 100,265,723 (Rs. million) 131.78 327.52 179.86 920.74 920.22 92,192 0.52 9.18 9.19 10 203

Annual Report 2015 Welspun India Ltd. 204 Annual Report 2015 Welspun India Ltd. 43 : Details of Research and Development expenses incurred during and Developmentexpenses theyear,debitedundervarious 43 :DetailsofResearch 42 :ProvisionforContingencies for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements 44 : Figuresinbracketsrelatetopreviousyear. Provided duringtheyear Opening Balance Closing Balance Utilised duringtheyear

below: Details ofCapitalExpenditureincurredduringtheyearforResearchandDevelopmentisgiven (b) Provisionforlitigationanddisputesismadetowardslegalnoticesreceivednon-paymentofrentincase (a) ProvisionforIndirectTaxesismadetowardslikelydemandsthatmayariseoncompletionofassessments. Total Plant andMachinery Particulars Total Others Employee benefitsexpenses Material Consumption Particulars n h bss f ita crany upre b cnicn eiec ta te wl b raie. h Cmay has Company The realised. be will they that binding agreementswithitscustomerswhichwillgenerate sufficient profitstorealisethesedeferredtaxassets. evidence convincing by supported certainty virtual of basis the on has (WCPGL) Limited Generation Power recognised tax assetshavebeen Thesedeferred million. Rs. 342.98 tax assetsaggregating net deferred recognised Captive Welspun companies, Group of one the 2015, 31, March at As heads ofStatementProfitandLossaregivenbelow: stores takenonlease. Particulars (Refer Note13) Indirect Taxes

- (25.00) (11.80) (13.20) 11.80 9.22 2.58 (-) Litigation andDisputes (Refer Note9) - (12.39) (18.63) (6.24) 18.63 20.00 Rs. million 1.37 Rs. million ‑(-) 253.54 137.97 39.67 75.90 51.31 51.31 Total 2.58 (Rs. million) (37.39) (30.43) (13.20) (6.24) 30.43 29.22 1.37 Date: Place: 45 : for theyearendedMarch31,2015 Notes totheconsolidatedfinancialstatements Membership No.103211 Partner Mehul Desai Firm RegistrationNo:012754N/N500016 Accountants LLP For PriceWaterhouseChartered Signatures toNotesfinancialstatements The previous year comparatives have been reclassified to conform with the current year’s presentation, wherever presentation, year’s current the with conform to reclassified been have comparatives year previous The April 29,2015 Mumbai applicable. Date: Place: Company Secretary Shashikant Thorat Date: Place: DIN: 00270175 Chairman Balkrishan Goenka For andonbehalfoftheBoardDirectors April 29,2015 Mumbai April 29,2015 Mumbai

Date: Place: Date: Place: Chief FinancialOfficer Altaf Jiwani DIN :00007179 Managing Director Rajesh Mandawewala April 29,2015 Mumbai April 29,2015 Mumbai

205

Annual Report 2015 Welspun India Ltd. 206 Annual Report 2015 Welspun India Ltd. Notes 207

Annual Report 2015 Welspun India Ltd. 208 Annual Report 2015 Welspun India Ltd. W T elspun IndiaLtd, el: +91 22 66136000/24908000 Fax:+912224908020/24908021 el: +912266136000/24908000 Member ofW Bapat Marg, Lower Parel, Mumbai400013India Bapat Marg,LowerParel, W elspun Group|ww elspun House, KamalaMillsCompound,Senapati elspun House, www .welspunindia.com w

.welspun.com

Annual Report Report Annual 30 Limited India Welspun 2015 th