Annual Report FY 2009-10 - Welspun

th15 Annual Report 2009-104. Secured Loansa) Redeemable Secured Non-Convertible Debentures (NCD)ParticularsNo. ofDebenturesFace Value(In Rs.)Date ofAllotmentRedemption fromthe date ofallotmentInterest(p.a.)Amount (Rs.in million)The debentures together with interest are secured by first charge ranking pari passu by way of mortgage/hypothecation ofentire immovable and movable fixed assets of the Company, both present and future and second/floating charge on currentassets, subject to prior charge in favour of banks for working capital facilities.b) Term Loan from BanksTerm Loans of Rs. 3,181.13 million (Rs. 10,606.32 million) are secured by first charge ranking pari passu by way ofmortgage / hypothecation of entire immovable and movable fixed assets of the Company both present and future andalso secured by second / floating charge on current assets subject to prior charge in favour of banks for working capitalfacilities.c) External Commercial Borrowings (ECB)ECB of Rs 6,789.99 million (Rs. 7,623.87 million) is secured by first charge ranking pari passu by way of mortgage /hypothecation on entire immovable and movable fixed assets of the Company both present and future. Further the ECBis secured by exclusive charge by way of hypothecation of Debt Service Reserve Account.d) Working Capital facilitiesWorking Capital facilities from banks are secured by first charge by way of hypothecation of raw materials, finishedgoods and goods in process, stores & spares and book debts of the Company and second charge on entire immovableand movable fixed assets of the Company both present and future of the Company.5. Micro, Small and Medium EnterprisesThe Company has amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006(MSMED Act) as at 31 March 2010. The disclosure pursuant to the said Act is as under:(Rs. in million)Particulars 31 March 20 1031 March 2009Principal amount due to suppliers under MSMED Act, 2006 0.851.58Interest accrued and due to suppliers under MSMED Act, on the above amount0.010.01Payment made to suppliers (Other than interest) beyond the appointed day,during the year16.8635.07Interest due and payable to suppliers under MSMED Act, for payments alreadymade0.130.24Interest accrued and remaining unpaid at the end of the year to suppliersunder MSMED Act0.940.80The above information and that given in Schedule -11 “Current Liabilities and Provisions” regarding Micro, Small and MediumEnterprises has been determined to the extent such parties have been identified by the Company on the basis of informationavailable.6. Foreign Exchange Differencesa) Loss on account of difference in foreign exchange on realignment/realization and on cancellation of derivativeinstruments amounting to Rs. 5.30 million (Rs. 3,433.25 million) is adjusted under respective heads of income orexpenses in the Profit and Loss account to which it relates and exchange difference gain of Rs. Nil (Rs. 6.27 million) otherthan (b) below, has been adjusted to the carrying cost of fixed assets/capital work in progress.b) The Companies (Accounting Standards) Amendment Rules 2009 has amended the provision of AS-11 related to "Theeffects of changes in Foreign Exchange Rates" vide notification dated 31 March 2009 issued by the Ministry of CorporateAffairs. Accordingly, the Company has adjusted exchange difference gain amounting to Rs. 348.36 million (Loss of Rs.70