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Notes to Accounts of Welspun India Ltd.

Mar 31, 2015

(i) Rights, preferences and restrictions attached to shares Equity Shares:

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

(e) Shares alloted as fully paid up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceeding March 31,2015):

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

2 : Long-term Borrowings

(a) Nature of security and terms of repayment for secured debentures :

The Company has alloted 1,000 debentures on March 31,2015 aggregating to Rs. 1,000 million, which carry interest rate of 10.40% p. a. payable half yearly. These debentures are redeemable at the end of 3 years from the date of allotment.

The Company is in the process of creating security against these debentures by way of first pari passu charge on the fixed assets of the Company.

II Defined Benefit Plan

Contribution to Gratuity Fund (Funded Defined Benefit Plan)

1. The Company operates a gratuity plan through the "Welspun India Limited Employees Gratuity Trust". Every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier.

The liability for leave entitlement and compensated absences as at year end is Rs. 88.03 million (March 31,2014: Rs. 60.79 million).

3 : Contingent Liabilities

(Rs. million)

As at As at Description March 31, 2015 March 31,2014

Excise, Customs and Service Tax Matters 341.24 344.28

Income Tax Matters 135.77 135.77

Stamp Duty Matter 4.46 4.46

Sales Tax 55.41 30.96

Claims against Company not acknowledged as debts 2.24 2.24

a) It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.

b) The Company does not expect any reimbursements in respect of the above contingent liabilities.

4 The Company has issued corporate guarantees aggregating Rs. 8,960.83 million as at the year end (March 31, 2014: Rs. 9,913.94 million) on behalf of Welspun Global Brands Limited (WGBL) (formerly known as Welspun Retail Limited), Welspun USA Inc. (WUSA), Welspun Captive Power Generation Limited (WcPGL) and CHT Holdings Limited (CHTHL). Liability outstanding for which corporate guarantees have been issued aggregates Rs. 3,198.89 million as on March 31,2015 (March 31,2014: Rs. 4,809.63 million).

5 In the previous year, with effect from July 1,2013, the management re-assessed the method of providing depreciation on its plant and machinery (other than electrical installations) after taking into consideration the type of assets, nature of their use etc. Based on the re-assessment, the Company changed the method of providing depreciation from straight- line method to reducing balance method as it was considered that it would result in more appropriate preparation and presentation of the Financial Statements of the Company. Accordingly, depreciation was recalculated under the reducing balance method for the period from the date on which the assets came into use upto June 30, 2013 in accordance with Accounting Standard 6 "Depreciation Accounting" notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended]. The incremental depreciation of Rs. 4,630.96 million for the period upto June 30, 2013 arising from the change was provided in the previous year. In addition to the aforementioned incremental depreciation, depreciation for the period July 1, 2013 to March 31,2014 was higher by Rs.107.13 million due to the change in the method. Accordingly, depreciation and amortization expenses for the year ended March 31,2014 was higher by Rs. 4,738.09 million.

6 The Company has utilised deferred tax assets recognized in earlier period aggregating Rs. 310.70 million on the incremental unabsorbed Income-tax depreciation arising out of its treatment of certain Excise and Value Added Tax incentives as 'capital receipts' for income tax purposes. Income Tax authorities have passed orders treating these incentives as revenue in nature. The Company has filed an appeal against the aforesaid orders. If the final decision in the matter is eventually decided against Welspun India Limited, then the current tax expense could be higher by Rs. 310.70 million.

On June 30, 2009, the Company issued Employee Stock Options (ESOP) under the Employee Stock Options Scheme (the "Scheme") to employees of the Company with a right to subscribe to equity shares ("New Options") at a price of Rs. 35.60 per equity share (closing market price as on June 30, 2009). The salient features of the Scheme are as under:

i) Vesting: Options to vest over a period of four years from the date of their grants as under:

- 20% of the Options granted to vest at each of the 1st and 2nd anniversaries of the date of grant.

- 30% of the Options granted to vest at each of the 3rd and 4th anniversaries of the date of grant.

ii) Exercise: Options vested with an employee will be exercisable within 3 years from the date of their vesting by subscribing to the number of equity shares in the ratio of one equity share for every option at the Exercise Price. In the event of cessation of employment due to death, resignation or otherwise, the Options may lapse or be exercisable in the manner specifically provided for in the Scheme.

The compensation costs of stock options granted to employees are accounted by the Company using the intrinsic value method as permitted by the SEBI Guidelines and the Guidance Note on Accounting for Employee Share Based Payments issued by the Institute of Chartered Accountants of India in respect of stock options granted. The value of underlying share has been determined by an independent valuer. Since, on the date of grant of option, quoted market price of the underlying equity shares of the Company was equal to the exercise price of an option, no expense or liability arising from the Scheme has been recognised.

7 : Segment Information for the year ended March 31,2015.

i) Information about Primary Business Segment

The Company is exclusively engaged in the business of Home Textiles which, in the context of Accounting Standard 17 on Segment Reporting is considered to constitute a single primary segment. Thus, the segment revenue, segment results, total carrying amount of segment assets, total carrying amount of segment liabilities, total cost incurred to acquire segment assets, total amount of charge for depreciation during the period are all as reflected in the financial statements for the year ended March 31,2015 and as on that date.

ii) Information about Secondary Geographical Segments:

The Company is primarily engaged in sales to customers located in India. Consequently the Company does not have separate reportable geographical segments for March 2015.

8 : Related Party Disclosures

i) Relationships

(a) Control

Holding Company

Krishiraj Trading Limited (KTL) (through own shareholding and through shares held by its subsidiary company) (Refer Note 3(b))

Subsidiary Companies

Besa Developers and Infrastructure Private Limited (BESA)

Welspun Global Brands Limited (WGBL) (Formerly known as Welspun Retail Limited (WRL)

Welspun Holdings Private Limited, Cyprus (WHPL)

Welspun Home Textiles UK Limited (WHTUKL)

(Held through WHPL)

Welspun UK Limited (WUKL) (Held through CHTL)

CHT Holdings Limited (CHTHL) (Held through WHTUKL)

Welspun USA Inc., USA (WUSA)

Welspun Decorative Hospitality LLC (WDHL)

Welspun Captive Power Generation Limited (WCPGL)

Anjar Integrated Textile Park Developers Private Limited (AITPDPL)

Welspun Anjar SEZ Limited (WASEZ)

Kojo Canada Inc. (Held through WDHL)

Welspun Mauritius Enterprises Limited (WMEL)

Novelty Home Textiles SA de CV (NHTSC) (Held through WMEL)

Christy Home Textiles Limited (CHTL)

(Held through CHTHL)

Christy 2004 Limited (CHT 2004) (Held through WUKL)

Christy Welspun GmbH (CWG) (Held through WUKL)

Christy UK Limited (CUKL) (Held through CHTL)

ER Kingsley (Textiles) Limited (ERK) (Held through CHTL)

Christy Lifestyle LLC, USA (CLL)

Welspun Zucchi Textiles Limited (WZTL) (with effect from January 30, 2015)

(c) Enterprises over which Key Management Personnel or relatives of such personnel exercise significant influence or control and with whom transactions have taken place during the year

Welspun Investments and Commercials Limited (WICL)

Welspun Corp Limited (WCL)

Welspun Steel Limited (WPSL)

Welspun Tradings Limited (WTL)

Welspun Wintex Limited (WWL)

Welspun Mercantile Limited (WML)

Welspun Energy Limited (WEL)

Welspun Logistics Limited (WLL)

Welspun Syntex Limited (WSL)

Welspun Realty Private Limited (WRPL)

Mertz Securities Limited (MSL)

Welspun Polybuttons Limited (WPBL)

Wel-treat Enviro Management Organisation Limited (WEMO)

Welspun Maxsteel Limited (WMSL)

Welspun Projects Limited ( WPL)

Methodical Investment and Trading Company Private Limited (MITCPL) Welspun FinTrade Limited (WFTL)

Welspun Finance Limited (WFL)

Welspun Foundation for Health and Knowledge (WFHK)

Welspun Infra Developers Limited (WIDL)

Technopak Advisors Private Limited (TAPL)

Welspun Infratech Limited (W INFRA)

(d) Key Management Personnel

Balkrishan Goenka (BKG) Rajesh Mandawewala (RRM) Dipali Goenka (DBG)

(e) Relatives of Key

Management Personnel

Radhika Goenka (RBG) Abhishek Mandawewala (ARM) Khushboo Mandawewala (KAM) Yash Mandawewala (YRM)

9 : Leases

Where the Company is a lessee:

Operating Lease

The Company has taken various residential, office premises, godowns, equipment and vehicles under operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. The initial tenure of lease is generally for eleven months to sixty months.

The aggregate rental expenses of all the operating leases for the year are Rs. 65.96 million (Previous Year: Rs. 86.25 million).

10 : Derivative Instruments outstanding as at March 31,2015 :

The Company is exposed to foreign currency fluctuations on foreign currency assets/ liabilities, payables denominated in foreign currency.

In line with the company's risk management policies and procedures, the Company enters into foreign currency forward contracts and swap contracts to manage its exposure. These contracts are for a period of maximum twelve months and forecasted transactions are expected to occur during the same period.

11 : Interest in Joint Venture

a. The Company has the following investment in a jointly controlled entity:

b. The Company's share of contingent liability of WZTL is Rs. Nil (March 31,2014: Rs. 32.07 million).

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


Mar 31, 2014

General Information

Welspun India Limited (WIL) is a leading manufacturer of wide range of home textile products, mainly terry towels, bed linen products and rugs. The Company is a public limited company and is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

1.(a) Rights, preferences and restrictions attached to shares Equity Shares:

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

(b) Shares alloted as fully paid up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceeding March 31, 2014):

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

Note :

The working capital loans, which includes cash credit and packing credit from banks, are secured by hypothecation of raw materials, stock-in-process, finished goods, semi finished goods, stores, spares and book debts and other current assets of the Company and second charge on entire fixed assets of the Company.

Note :

Acceptance includes unsecured vendor financing of Rs. 1,262.69 million (Previous year Rs. 111.09 million) from various banks.

Note:

There are no amounts due for payment to the Investor Education and Protection Fund under Section 205C of the Companies Act, 1956 as at the year end.

II Defined Benefit Plan

Contribution to Gratuity Fund (Funded Defined Benefit Plan)

The Company operates a gratuity plan through the "Welspun India Limited Employees Gratuity Trust". Every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier.

2 Contingent Liabilities

(Rs. million)

As At As At Descrlption March 31, 2014 March 31, 2013

Excise, Customs and Service Tax Matters 344.28 632.08

Income Tax Matters 135.77 135.77

Stamp Duty Matter 4.46 4.46

Sales Tax 30.96 30.96

Claims against Company not acknowledged as debts 2.24 3.66

(a) It is not practical for the Company to estimate the timing of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.

(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.

3 The Company has issued corporate guarantees aggregating Rs. 9,913.94 million as at the year end (March 31, 2013: Rs. 8,852.01 million) on behalf of Welspun Global Brands Limited (WGBL) (formerly known as Welspun Retail Limited), Welspun USA Inc. (WUSA), Welspun Home Textiles UK limited (WHTL), Welspun Captive Power Generation Limited (WCPGL) and CHT Holdings Limited (CHTHL). Liability outstanding for which corporate guarantees have been issued aggregates Rs. 9,065.94 million as on March 31, 2014 (March 31, 2013: Rs. 7,672.85 million)

4 During the quarter ended September 30, 2013, the management re-assessed the method of providing depreciation on its plant and machinery (other than electrical installations) after taking into consideration the type of assets, nature of their use etc. Based on the re-assessment, the Company changed the method of providing depreciation from straight-line method to reducing balance method as it was considered that it would result in more appropriate preparation and presentation of the Financial Statements of the company. Accordingly, depreciation was recalculated under the reducing balance method for the period from the date on which the assets came into use upto June 30, 2013 in accordance with Accounting Standard 6 "Depreciation Accounting" notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended]. The incremental depreciation of Rs. 4,630.96 million for the period upto June 30, 2013 arising from the change has been provided during the year. In addition to the aforementioned incremental depreciation, depreciation for the period July 1, 2013 to March 31, 2014 is higher by Rs.107.13 million due to the change in the method. Accordingly, depreciation and amortization expenses for the year ended March 31, 2014 is higher by Rs. 4,738.09 million and profit before tax for the year ended March 31, 2014 is lower by Rs. 4,738.09 million with a consequential impact on profit after tax for the year.

Had the method of depreciation not been changed, profit before tax for the year ended March 31, 2014 would have been Rs. 5,184.42 million as against the profit before tax of Rs. 446.33 million.

5 The Company has utilised deferred tax assets recognized in earlier period aggregating Rs. 310.70 million on the incremental unabsorbed Income-tax depreciation arising out of its treatment of certain Excise and Value Added Tax incentives as ''capital receipts'' for income tax purposes. Income Tax authorities have passed orders treating these incentives as revenue in nature. The Company has filed an appeal against the aforesaid orders. If the final decision in the matter is eventually decided against Welspun India Limited, then the current tax expense could be higher by Rs. 310.70 million.

6 During an earlier year, the Company had inadvertently made certain investments aggregating Rs. 1,197.29 million in the bonds issued by certain public sector undertakings without obtaining prior approval of the shareholders by way of a special resolution as required under Section 372A of the Companies Act, 1956. Subsequently, these investments were sold. Further, the Company had filed a suo motu application to the Company Law Board in the financial year 2012-13 for compounding of this offence. The offence committed under Section 372A was compounded against the Company, managing director, company secretary and a former director on payment of Rs. 2,000 by each of the aforesaid defaulters.

7 Details of Employees Stock Options

On June 30, 2009, the Company issued Employee Stock Options (ESOP) under the Employee Stock Options Scheme (the "Scheme") to employees of the Company with a right to subscribe to equity shares ("New Options") at a price of Rs. 35.60 per equity share (closing market price as on June 30, 2009). The salient features of the Scheme are as under:

(i) Vesting: Options to vest over a period of four years from the date of their grants as under:

* 20% of the Options granted to vest at each of the 1st and 2nd anniversaries of the date of grant.

* 30% of the Options granted to vest at each of the 3rd and 4th anniversaries of the date of grant.

(ii) Exercise: Options vested with an employee will be exercisable within 3 years from the date of their vesting by subscribing to the number of equity shares in the ratio of one equity share for every option at the Exercise Price. In the event of cessation of employment due to death, resignation or otherwise, the Options may lapse or be exercisable in the manner specifically provided for in the Scheme.

The compensation costs of stock options granted to employees are accounted by the Company using the intrinsic value method as permitted by the SEBI Guidelines and the Guidance Note on Accounting for Employee Share Based Payments issued by the Institute of Chartered Accountants of India in respect of stock options granted. The value of underlying share has been determined by an independent valuer. Since, on the date of grant of option, quoted market price of the underlying equity shares of the Company was equal to the exercise price of an option, no expense or liability arising from the Scheme has been recognised.

8 Segment Information for the year ended March 31, 2014.

(i) Information about Primary Business Segment

The Company is exclusively engaged in the business of Home Textiles which, in the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountant of India, is considered to constitute a single primary segment. Thus, the segment revenue, segment results, total carrying amount of segment assets, total carrying amount of segment liabilities, total cost incurred to acquire segment assets, total amount of charge for depreciation during the period are all as reflected in the financial statements for the year ended March 31, 2014 and as on that date.

(ii) Information about Secondary Geographical Segments:

The Company is exclusively engaged in sales to customers located in India. Consequently the Company does not have separate reportable geographical segments for March 2014.

b. The Company''s share of contingent liability of WZTL is Rs. 32.07 million (March 31, 2013: Rs. 32.07 million).

9 Leases

Where the Company is a lessee:

Operating Lease

The Company has taken various residential, office premises, godowns, equipment and vehicles under operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. The initial tenure of lease is generally for eleven months to sixty months.

The aggregate rental expenses of all the operating leases for the year are Rs. 86.25 million (Previous Year: Rs. 99.78 million).

* Provision for doubtful loans and advance of Rs.15.56 million (March 31, 2013 : Nil) has been made.

** On March 27, 2013, Welspun AG, an erstwhile wholly owned subsidiary of the Company was liquidated. Hence, loan given to Welspun AG, Switzerland has been written off.

10 Derivative Instruments outstanding as at March 31, 2014 :

The Company is exposed to foreign currency fluctuations on foreign currency assets/ liabilities, payables denominated in foreign currency. In line with the company''s risk management policies and procedures, the Company enters into foreign currency forward contracts and swap contracts to manage its exposure. These contracts are for a period of maximum twelve months and forecasted transactions are expected to occur during the same period.

(a) Net Loss on derivative instruments of Rs. 68.02 million recognised in Hedging Reserve as on March 31, 2014, is expected to be recycled to the Statement of Profit and Loss by March 2015.

(b) As at the Balance Sheet date, the foreign currency exposure not hedged by a derivative instrument or otherwise aggregates Rs. 494.15 million (March 31, 2013 Rs.124.25 million) for receivables (net of provisions) and Rs. 1,009.31 million (March 31, 2013 Rs. 1,418.08 million) for payables.


Mar 31, 2013

1. General Informaton

Welspun India Limited (WIL) is a leading manufacturer of wide range of home textle products, mainly terry towels, bed linen products and rugs. The Company is a public limited company and is listed on the Bombay Stock Exchange (BSE) and the Natonal Stock Exchange (NSE).

2 Contngent Liabilites

(Rs. million)

Descripton As At March As At March 31, 2013 31, 2012

Excise, Customs and Service Tax Maters 696 46 677 48

Income Tax Maters 135 77

Stamp Duty Mater 4 46 4 46

Sales Tax 36 81 36 44

Corporate Guarantees (Refer Note 35) 7,672.85 7,705.13

Bank Guarantees 82 49 166 89

Claims against Company not acknowledged as debts 3 66 5 51

3 The Company has issued corporate guarantees aggregatng Rs. 8,852.01 million as at the year end (March 31, 2012: Rs. 8,891.90 million) on behalf of Welspun Retail Limited (WRL), Welspun USA Inc. (''WUSA''), Welspun Home Textles UK limited (''WHTL''), Welspun Captve Power Generaton Limited (WCPGL) and CHT Holdings Limited (''CHTHL''). Liability outstanding against which corporate guarantees have been issued aggregates Rs. 7,672.85 million as on March 31, 2013 (March 31, 2012: Rs. 7,705.13 million)

4 During an earlier year, the Company had recognised deferred tax assets aggregatng Rs. 296.58 million on the incremental unabsorbed Income-tax depreciaton arising out of its treatment of certain Excise and Value Added Tax incentves as ''capital receipts'' for income tax purposes. Income Tax authorites have passed orders treatng these incentves as revenue in nature. The Company has fled appeals against the aforesaid orders. If the fnal decision in the mater is eventually decided against Welspun India Limited, then the carrying value of the Minimum Alternate Tax Credit Enttlement assets at the year end could be signifcantly impacted.

5 The composite scheme of arrangement (the "Scheme") between Welspun Global Brands Limited (WGBL) (Transferor Company), the Company (First Transferee Company) and Welspun Retail Limited ("WRL"- Second Transferee Company) was approved by the High Court of Gujarat at Ahmedabad by its order dated November 26, 2012. The order has been fled with the Registrar of Companies on December 7, 2012. Pursuant to the Scheme 10,475,496 equity shares of Rs. 10 each included in Share Suspense Account were alloted during the year.

6 The Company''s wholly owned subsidiary in Switzerland, Welspun AG (WAG) has been liquidated on March 27, 2013. Consequently, the Company has writen of investment in WAG aggregatng Rs.739.12 million and outstanding loan and advances aggregatng Rs.1,304.43 million from WAG. The investment and loan had been fully provided in earlier years. Accordingly, the provision has been writen back during the year. Further, the company had made an incremental provision for the aforesaid doubtul loan arising out of the restatement upto the date of liquidaton of the foreign currency balance as at March 31, 2012. The provision aggregatng Rs. 83.85 million has been included in extraordinary items and the corresponding gain on restatement is neted of in other expenses.

7 During the previous year, the Company had inadvertently made certain investments aggregatng Rs. 1,197.29 million in the bonds issued by certain public sector undertakings without obtaining prior approval of the shareholders by way of a special resoluton as required under Secton 372A of the Companies Act, 1956. Subsequent to March 2012, these investments were sold. Further, the Company has fled a suo motu applicaton to the Company Law Board in the Financial Year 2012-13 for the compounding of this ofence and adjudicaton by the Company Law Board is pending.

8 Details of Employees Stock Optons

On June 30, 2009, the Company issued Employee Stock Optons (ESOP) under the Employee Stock Optons Scheme (the "Scheme") to employees of the Company with a right to subscribe to equity shares ("New Optons") at a price of Rs. 35.60 per equity share (closing market price as on June 30, 2009) with an opton to existng grantees, who were granted optons on May 17, 2006 ("Old Optons"), to receive New Optons on surrender of Old Optons. All employees holding Old Optons on June 30, 2009 chose to surrender the Old Optons. The salient features of the Scheme are as under:

(i) Vestng : Optons to vest over a period of four years from the date of their grants as under:

- 20% of the Optons granted to vest at each of the 1st and 2nd anniversaries of the date of grant.

- 30% of the Optons granted to vest at each of the 3rd and 4th anniversaries of the date of grant.

(ii) Exercise : Optons vested with an employee will be exercisable within 3 years from the date of their vestng by subscribing to the number of equity shares in the rato of one equity share for every opton at the Exercise Price. In the event of cessaton of employment due to death, resignaton or otherwise, the Optons may lapse or be exercisable in the manner specifcally provided for in the Scheme.

9 Segment Informaton for the year ended March 31, 2013.

(i) Informaton about Primary Business Segment

The Company is exclusively engaged in the business of Home Textles which, in the context of Accountng Standard 17 on Segment Reportng, issued by the Insttute of Chartered Accountants of India, is considered to consttute a single primary segment. Thus, the segment revenue, segment results, total carrying amount of segment assets, total carrying amount of segment liabilites, total cost incurred to acquire segment assets, total amount of charge for depreciaton during the period are all as refected in the fnancial statements for the year ended March 31, 2013 and as on that date.

(ii) Informaton about Secondary Geographical Segments:

The Company is exclusively engaged in sales to customers located in India. Consequently the Company does not have separate reportable geographical segments for March 2013.

10 Interest in Joint Venture

a. The Company has accounted the investments in Joint Venture in Welspun Zucchi Textles Limited (WZTL) in accordance with Accountng Standard 13, Accountng for Investments.

b. The Company''s share of contngent liability of WZTL is Rs. 32.02 million (March 31, 2012: Rs. 29.76 million).

c. The Company''s share of the aggregate amounts of assets and liabilites as on March 31, 2013 and income and expenditures of WZTL for the year ended March 31, 2013 are as under :

11 Leases

Where the Company is a lessee:

Operatng Lease

The Company has taken various residental, ofce premises, godowns, equipment and vehicles under operatng lease agreements that are renewable on a periodic basis at the opton of both the lessor and the lessee. The inital tenure of lease is generally for eleven months to sixty months.

The aggregate rental expenses of all the operatng leases for the year are Rs. 99.78 million (Previous Year: Rs. 76.30 million).

12 Derivatve Instruments outstanding as at March 31, 2013 :

The Company is exposed to foreign currency fuctuatons on foreign currency assets/ liabilites, payables denominated in foreign currency. In line with the company''s risk management policies and procedures, the Company enters into foreign currency forward contracts and swap contracts to manage its exposure. These contracts are for a period of maximum twelve months and forecasted transactons are expected to occur during the same period.

13 Prior year comparatves have been reclassifed to conform with the current year''s presentaton, wherever applicable.

 
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