Annual Report FY 2009-10 - Welspun

C rp LtdAuditors' Report on Consolidated Financial StatementsToThe Board of DirectorsWelspun Corp Limited ( Formerly Welspun Gujarat Stahl Rohren Limited)1) We have audited the attached Consolidated Balance Sheet of Welspun Corp Limited (“the Company”) and itssubsidiaries, associates and joint venture Companies (“the group”) as at 31 March 2010, the Consolidated Profit and Loss Accountfor the year ended on that date annexed thereto and the Consolidated Cash Flow statement for the year ended on that date. Thesefinancial statements are the responsibility of Company's management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.2) We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes, examining on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significant estimates made by management, aswell as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for ouropinion.3) The financial statements of subsidiaries, with total assets of Rs. 31,767,596,999 as at 31 March 2010 and total revenues of Rs.11,790,937,662 for the year ended on that date, have not been audited by us. These financial statements have been audited byother auditors whose reports have been furnished to us, and in our opinion, in so far as it relates to the amounts included inrespect of those subsidiaries, are based solely on the report of the other auditors.4) The financial statements of Red Lebondal Limited, Cyprus an associate have been consolidated based on the managementestimate and therefore unaudited. The profit/ (loss) of such associate considered for consolidation is Rs. Nil for the year.5) a) The financial statements of a joint venture namely Dahej Infrastructure Private Limited have been audited by other auditorwhose report has been furnished to us. The total assets and total revenues for consolidation are Rs. 2,626,905 and Rs.517,890 respectively. Our opinion in so far as relates to the amount included in respect of those joint ventures, is based solelyon the report of respective auditor.b) The financial statements of a joint venture namely Adani Welspun Exploration Limited have been consolidated based on themanagement estimate and therefore unaudited. The total assets and total revenues for consolidation are Rs. 1,223,535,929and Rs. Nil respectively6) a) We report that the consolidated financial statements have been prepared by the Company in accordance with therequirements of Accounting Standard (AS) 21, “Consolidated Financial Statements”, AS-23 “Accounting for investments inAssociates in Consolidated Financial Statements” and AS-27 “Financial Reporting of Interests in Joint Venture” issued by theInstitute of Chartered Accountants of India and on the basis of separate financial statements of the Company, its subsidiaries,associates and joint ventures .(b)Based on our audit and on consideration of the reports of the Company on separate financial statements of subsidiaries,associates and joint ventures, in our opinion and to the best of our information and according to the explanations given to us,the attached Consolidated Financial Statements give a true and fair view in conformity with the accounting principlesgenerally accepted in India.(i) In the case of the Consolidated Balance Sheet of the consolidated state of affairs of the group as at 31 March 2010.(ii)In the case of the Consolidated Profit and Loss Account of the consolidated results of operations of the group for the yearended on that date; and(iii) In the case of the Consolidated Cash Flow Statement of the consolidated cash flows of the group for the year ended onthat date.For MGB & Co.Chartered AccountantsFirm Registration No. : 101169WMohan BhandariPartnerMembership No. 12912Mumbai, 27 April 201085