Annual Report FY 2009-10 - Welspun

th15 Annual Report 2009-10DIRECTORS' REPORTTo,The Members,Welspun Corp LimitedthYour directors have pleasure in presenting the 15 Annual Report of your Company along with Audited Financial Statement for thefinancial year ended 31st March, 2010.FINANCIAL RESULTSParticularsIncome from operations & other income (Total Income)Profit before interest, depreciation & taxLess : Interest / Finance costsGross Profit / ( Loss)Less: DepreciationProfit before tax for the yearLess : Provision for current taxationProvision for deferred taxationFringe benefit taxProfit after tax for the year (“PAT”)Add : balance brought forward from previous yearProfit available for appropriationTransfer to General ReserveTransfer to Debenture Redemption ReserveProposed Dividend on equity shares & taxEquity dividend & tax of earlier yearsBalance carried forward to next yearFor the year ended(Rs. in million)31.03.2010 31.03.200966,267.09 58,961.9311,226.14 6,525.231,661.70 1,734.969,564.44 4,790.271,479.20 1,254.198,085.24 3,536.082,216.24 439.47467.05 749.75- 11.185,401.96 2,335.686,795.96 5,305.6012,197.92 7,641.28540.00 234.00106.25 268.75476.51 327.280.26 15.2811,074.89 6,795.96PERFORMANCEDuring the year under report, your Company produced 686,226 MT of pipes as compared to 734,352 MT in the preceding year whichwas slightly lower compared to the preceding year due to change in the product mix. In the Plate cum Coil Mill, the Company registeredalmost 100% growth in Plate production to 383,577 MT as compared to 192,569 MT in the preceding year showing stabilization ofproduction throughout the year whereas, the coil mill which commenced production at the end of the year under report, recordedproduction of 2,691 MT. On the coating side, the Company registered manifold growth of 7.5 times to 5,036K sqm as compared to 688Ksqm in the preceding year mainly due to higher ratio of coated pipes to bare pipes. On the revenue side, the Company achieved growthof 12.38% in the Total Income mainly due to higher realization.DIVIDENDThe Board recommends a dividend @40% for the year ended 31st March 2010 i.e. Rs.2/- per Equity Share of Rs.5/- each. In respect ofdividend declared for the previous financial years Rs.3.11 million remained unclaimed as on 31st March 2010.EXPANSION STATUS• Pipe Mill in USAThe pipe manufacturing and coating facilities in the US are working in full swing.• Pipe Mill in AnjarThe Board considered that it would be appropriate to have the new LSAW pipe manufacturing facilities, earlier planned in SpecialEconomic Zone (“SEZ”) by the Company's wholly owned subsidiary, to be taken outside the SEZ to enable flexibility to supplypipes in domestic market as well.• Spiral Pipe Project in Southern India for water applicationConsidering the increased need for water transportation in Southern India, your directors foresee that the demand for pipesfor transportation of water from reservoir to end user would increase in the years to come. To tap this opportunity, yourdirectors decided to set up a Spiral Pipe Plant for water application in Southern India. The Project is planned to be completedby September 2010.10