th Annual Report 15 2009-10 C rp Ltd Formerly known as Welspun Gujarat Stahl Rohren Ltd. You must be the CHANGECHANGE you wish to see in the World - Mahatma Gandhi Financial Highlights (Consolidated) You must be the CHANGE Revenue (Rs. Mn) PAT (Rs. Mn) you wish to see in the World - Mahatma Gandhi 73,503 @ 85,000 8,000 6,104 C rp Ltd 57,395 6,000 65,000 39,945 3,408 # 45,000 26,834 4,000 1,425 2,135 18,298 614 25,000 2,000 5,000 - ‘Change’ as we know is the essence of life and the only 2005-06 2006-07 2007-08 2008-09 2009-10 2005-06 2006-07 2007-08 2008-09 2009-10 thing that's constant. At Welspun too, we have been experiencing 'Change' every year and 2009-10 was no Contents exception. Corporate Information 2 Exports/Overseas Revenue* (Rs. Mn) EPS (Rs/ Share.) The year marked Welspun's foray into the world of 52,603 55,000 41,515 41.0 31.7 infrastructure through Welspun Infratech Ltd. followed Chairman and Managing Director's Statement 6 45,000 32,750 31.0 20.9 by the landmark agreement with a Middle-East Pipe 35,000 17,872 21.0 11.5 25,000 10.7 company having a state-of-the-art Spiral pipe and Directors' Report 10 10,573 5.1 15,000 11.0 Coating facility enabling Welspun full operational 5,000 1.0 control in the company to cater to the large Middle-East 2005-06 2006-07 2007-08 2008-09 2009-10 2005-06 2006-07 2007-08 2008-09 2009-10 Corporate Governance Report 19 and North - African market. The fund-raising of US$ 250 million during the economic downturn and an Management Discussion and Analysis 28 outstanding order-book (Crossing $ 1.3 billion) further Networth (Rs. Mn) reaffirms the trust that our investors and clients have EBITDA (Rs. Mn) Financial Section 52 29,011 expressed in Welspun. 13,186@ 14,500 29,000 12,500 25,000 15,597 FAQs 108 # 21,000 15,672 10,500 6,555 6,348 8,500 17,000 During this year, our name also went through a 6,500 3,283 13,000 6,535 1,655 5,016 4,500 9,000 transformation. Welspun Gujarat Stahl Rohren Ltd., 2,500 5,000 500 1,000 which began in 1995 today is changed to WELSPUN 2005-06 2006-07 2007-08 2008-09 2009-10 2005-06 2006-07 2007-08 2008-09 2009-10 CORP LTD. The new identity embodies Welspun's global reach and reinstates the commitment of the Company Forward looking statement to achieve utmost customer satisfaction by understanding the needs of global markets. In this Annual Report we have disclosed forward-looking information to enable investors EBITDA Margin (%) comprehend our prospects and take informed investment decisions. We have tried, Fixed Asset (Gross Block) - Rs. Mn wherever possible, to identify such statements by using words as 'anticipate', 'estimate', 17.9% 38,810 'expects', 'projects', 'intends', 'plans', 'believes', and words of similar substance in 16.4% 34,844 20.0% 40,000 connection with any discussion of the future performance. We cannot guarantee that these With our growth pace and our will to acclimatise to the forward-looking statements will be realized, although we believe we have been prudent in 12.2% 11.0% 15.0% 30,000 22,499 9.01% ever-changing scenario, we believe that Welspun Corp our assumptions. Should known or unknown risks or uncertainties materialize, or should 10.0% underlying assumptions prove inaccurate, actual results could vary materially from those 20,000 9,112 Ltd. will pave way to fulfil our dream of being one of the 7,893 anticipated, estimated or projected. Readers should bear this in mind. We undertake no 5.0% 10,000 most respectable Company in the World. obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. 0.0% - 2005-06 2006-07 2007-08 2008-09 2009-10 2005-06 2006-07 2007-08 2008-09 2009-10 '@ FY 10 : Forex Provisoning made in the previous year were recovered during the year * Includes Deemed Exports # FY 09 : Figures are excluding the extraordinary item :Forex provision of Rs.1,256 mn, Provision on ECB of Rs.178 mn and Inventory write down of Rs. 385 mn during FY 2008-09. Financial Highlights (Consolidated) You must be the CHANGE Revenue (Rs. Mn) PAT (Rs. Mn) you wish to see in the World - Mahatma Gandhi 73,503 @ 85,000 8,000 6,104 C rp Ltd 57,395 6,000 65,000 39,945 3,408 # 45,000 26,834 4,000 1,425 2,135 18,298 614 25,000 2,000 5,000 - ‘Change’ as we know is the essence of life and the only 2005-06 2006-07 2007-08 2008-09 2009-10 2005-06 2006-07 2007-08 2008-09 2009-10 thing that's constant. At Welspun too, we have been experiencing 'Change' every year and 2009-10 was no Contents exception. Corporate Information 2 Exports/Overseas Revenue* (Rs. Mn) EPS (Rs/ Share.) The year marked Welspun's foray into the world of 52,603 55,000 41,515 41.0 31.7 infrastructure through Welspun Infratech Ltd. followed Chairman and Managing Director's Statement 6 45,000 32,750 31.0 20.9 by the landmark agreement with a Middle-East Pipe 35,000 17,872 21.0 11.5 25,000 10.7 company having a state-of-the-art Spiral pipe and Directors' Report 10 10,573 5.1 15,000 11.0 Coating facility enabling Welspun full operational 5,000 1.0 control in the company to cater to the large Middle-East 2005-06 2006-07 2007-08 2008-09 2009-10 2005-06 2006-07 2007-08 2008-09 2009-10 Corporate Governance Report 19 and North - African market. The fund-raising of US$ 250 million during the economic downturn and an Management Discussion and Analysis 28 outstanding order-book (Crossing $ 1.3 billion) further Networth (Rs. Mn) reaffirms the trust that our investors and clients have EBITDA (Rs. Mn) Financial Section 52 29,011 expressed in Welspun. 13,186@ 14,500 29,000 12,500 25,000 15,597 FAQs 108 # 21,000 15,672 10,500 6,555 6,348 8,500 17,000 During this year, our name also went through a 6,500 3,283 13,000 6,535 1,655 5,016 4,500 9,000 transformation. Welspun Gujarat Stahl Rohren Ltd., 2,500 5,000 500 1,000 which began in 1995 today is changed to WELSPUN 2005-06 2006-07 2007-08 2008-09 2009-10 2005-06 2006-07 2007-08 2008-09 2009-10 CORP LTD. The new identity embodies Welspun's global reach and reinstates the commitment of the Company Forward looking statement to achieve utmost customer satisfaction by understanding the needs of global markets. In this Annual Report we have disclosed forward-looking information to enable investors EBITDA Margin (%) comprehend our prospects and take informed investment decisions. We have tried, Fixed Asset (Gross Block) - Rs. Mn wherever possible, to identify such statements by using words as 'anticipate', 'estimate', 17.9% 38,810 'expects', 'projects', 'intends', 'plans', 'believes', and words of similar substance in 16.4% 34,844 20.0% 40,000 connection with any discussion of the future performance. We cannot guarantee that these With our growth pace and our will to acclimatise to the forward-looking statements will be realized, although we believe we have been prudent in 12.2% 11.0% 15.0% 30,000 22,499 9.01% ever-changing scenario, we believe that Welspun Corp our assumptions. Should known or unknown risks or uncertainties materialize, or should 10.0% underlying assumptions prove inaccurate, actual results could vary materially from those 20,000 9,112 Ltd. will pave way to fulfil our dream of being one of the 7,893 anticipated, estimated or projected. Readers should bear this in mind. We undertake no 5.0% 10,000 most respectable Company in the World. obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. 0.0% - 2005-06 2006-07 2007-08 2008-09 2009-10 2005-06 2006-07 2007-08 2008-09 2009-10 '@ FY 10 : Forex Provisoning made in the previous year were recovered during the year * Includes Deemed Exports # FY 09 : Figures are excluding the extraordinary item :Forex provision of Rs.1,256 mn, Provision on ECB of Rs.178 mn and Inventory write down of Rs. 385 mn during FY 2008-09. 15th Annual Report 2009-10 C rp Ltd Corporate Information Important Changes and Developments Company Identification Number : L27100GJ1995PLC025609 Par Value / Share : Rs.5/- each YEAR Date of Incorporation: 26th April 1995 Securities Registrar & Transfer Agent 2010 - Awarded “EEPC India National Award” for Export Excellence. th Date of Being Listed in Stock Exchange : BSE: 27 March 1997 : Link Intime India Private Ltd. - Initiated capacity expansion in India of LSAW by 350 KMT in Anjar, Gujarat, HSAW by 100 KMT in th NSE: 4 December 2003 C- 13, Pannalal Silk Mills Mandeya near Bangalore and another planned expansion of 100 KMT, HSAW in Central India. Type of Business : Manufacturing of Steel Pipes Compound, LBS Marg, - Fund raising of US$ 250 mn of which US$ 150 mn was raised through FCCB (Foreign Convertible Currency Bonds) in Oct Registered Capital : Rs.