1.10 Provisions, contingent liabilities and contingent
assets
a) Provisions
Provisions for legal claims are recognised when
the Company has a present legal or constructive
obligation as a result of past events, it is probable
that an outflow of resources will be required
to settle the obligation and the amount can be
reliably estimated. Provisions are not recognised
for future operating losses.
Where there are a number of similar obligations,
the likelihood that an outflow will be required
in settlement is determined by considering the
class of obligations as a whole. A provision is
recognised even if the likelihood of an outflow
with respect to any one item included in the same
class of obligations may be small. Provisions are
measured at the present value of management's
best estimate of the expenditure required to settle
the present obligation at the end of the reporting
period. The discount rate used to determine the
present value is a pre-tax rate that reflects current
market assessments of the time value of money
and the risks specific to the liability. The increase
in the provision due to the passage of time is
recognised as interest expense.
The measurement of provision for restructuring
includes only direct expenditures arising from the
restructuring, which are both necessarily entailed
by the restructuring and not associated with the
ongoing activities of the Company.
b) Contingent liabilities
Contingent liabilities are disclosed when there
is a possible obligation arising from past events
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the
control of the company or a present obligation
that arises from past events where it is either
not probable that an outflow of resources will
be required to settle or a reliable estimate of the
amount cannot be made.
c) Contingent Assets
Contingent Assets is not recognised in the financial
statements since this may result in the recognition
of income that may never be realised. However,
when the realisation of income is virtually certain,
then the related asset is not a contingent asset
and is recognized.
l.H Business Combinations
The Company accounts for business combinations
using the acquisition method when the acquired set of
activities and assets meets the definition of a business
and control is transferred to the Company (see 3(A)(i).
In determining whether a particular set of activities and
assets is a business, the Company assesses whether
the set of assets and activities acquired includes, at a
minimum, an input and substantive process and whether
the acquired set has the ability to produce outputs. The
Company has an option to apply a concentration test'
that permits a simplified assessment of whether an
acquired set of activities and assets is not a business.
The optional concentration test is met if substantially
all of the fair value of the gross assets acquired is
concentrated in a single identifiable asset or group of
similar identifiable assets.
The consideration transferred does not include
amounts related to the settlement of pre-existing
relationships with the acquiree. Such amounts are
generally recognised in the statement of profit and loss.
During the measurement period, the Company also
recognises additional assets or liabilities if new
information is obtained about facts and circumstances
that existed as of the acquisition date and, if known
would have resulted in the recognition of those assets
and liabilities as of that date.
The measurement period ends as soon as the Company
receives the information it was seeking about facts and
circumstances that existed as of the acquisition date or
learns that more information is not obtainable but does
not exceed one year from the acquisition date.
A) Acquisition method:
The acquisition method of accounting is used to
account for all business combinations, regardless
of whether equity instruments or other assets are
acquired. The consideration transferred for the
acquisition of a subsidiary comprises the
• fair values of the assets transferred
• liabilities incurred to the former owners of the
acquired business
• equity interests issued by the group
• fair value of any asset or liability resulting from
a contingent consideration arrangement.
Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business
combination are, with limited exceptions,
measured initially at their fair values at the
acquisition date. The group recognises any non¬
controlling interest in the acquired entity on an
acquisition-by-acquisition basis either at fair value
or at the non-controlling interest’s proportionate
share of the acquired entity’s net identifiable
assets.
The excess of the:
• consideration transferred
• amount of any non-controlling interest in the
acquired entity
• acquisition-date fair value of any previous
equity interest in the acquired entity
over the fair value of the net identifiable assets
acquired is recorded as goodwill. If those amounts
are less than the fair value of the net identifiable
assets of the business acquired, the difference
is recognised in other comprehensive income
and accumulated in equity as capital reserve
provided there is clear evidence of the underlying
reasons for classifying the business combination
as a bargain purchase. In other cases, the bargain
purchase gain is recognised directly in equity as
capital reserve.
Where settlement of any part of cash consideration
is deferred, the amounts payable in the future are
discounted to their present value as at the date of
exchange. The discount rate used is the entity’s
incremental borrowing rate, being the rate at
which a similar borrowing could be obtained from
an independent financier under comparable terms
and conditions.
Contingent consideration is classified either as
equity or a financial liability. Amounts classified as
a financial liability are subsequently remeasured
to fair value with changes in fair value recognised
in profit or loss.
If the business combination is achieved in stages,
the acquisition date carrying value of the acquirer's
previously held equity interest in the acquiree
is remeasured to fair value at the acquisition
date. Any gains or losses arising from such
remeasurement are recognised in profit or loss or
other comprehensive income, as appropriate.
B) Business combinations - common control
transactions
Business combinations involving entities that are
controlled by the group are accounted for using
the pooling of interests method as follows:
• The assets and liabilities of the combining
entities are reflected at their carrying
amounts.
• No adjustments are made to reflect fair
values, or recognise any new assets or
liabilities. Adjustments are only made to
harmonise accounting policies.
• The financial information in the financial
statements in respect of prior periods is
restated as if the business combination
had occurred from the beginning of the
preceding period in the financial statements,
irrespective of the actual date of the
combination. However, where the business
combination had occurred after that date, the
prior period information is restated only from
that date.
• The balance of the retained earnings
appearing in the financial statements
of the transferor is aggregated with the
corresponding balance appearing in the
financial statements of the transferee or is
adjusted against general reserve.
• The identity of the reserves are preserved
and the reserves of the transferor become
the reserves of the transferee
• The difference, if any, between the amounts
recorded as share capital issued plus any
additional consideration in the form of cash
or other assets and the amount of share
capital of the transferor is transferred to
capital reserve and is presented separately
from other capital reserves.
1.12 Other accounting policy
a) Contract assets and contract liabilities
When the Company performs a service or transfers
a good in advance of receiving consideration, it
recognises a contract asset or receivable.
A contract asset is a Company's right to
consideration in exchange for goods or services
that the Company has transferred to a customer.
If the Company transfers control of goods or
services to a customer before the customer pays
consideration, the Company records a contract
asset when the nature of the Company's right
to consideration for its performance is other
than passage of time. A contract asset will be
classified as a receivable when the Company's
right to consideration is unconditional (that is,
when payment is due only on the passage of
time).The Company assesses a contract asset
for impairment in accordance with Ind AS 109.
Impairment of a contract asset is measured,
presented and disclosed on similar basis as other
financial asset in nature of trade receivable within
the scope of Ind AS 109. The Company discloses
contract assets under "Other Assets".
The Company recognises a contract liability if the
customer's payment of consideration precedes
the Company's performance. A contract liability is
recognised if the Company receives consideration
(or if it has the unconditional right to receive
consideration) in advance of performance. The
Company discloses contract liabilities under
"Other Liabilities".
b) Investment properties
Investment property is measured initially at its
cost, including related transaction costs and
where applicable borrowing costs. Subsequent
expenditure is capitalised to the asset's carrying
amount only when it is probable that future
economic benefits associated with the expenditure
will flow to the Company and the cost of the item
can be measured reliably. All other repairs and
maintenance costs are expensed when incurred.
When part of an investment property is replaced,
the carrying amount of the replaced part is
derecognised.
Investment properties (except freehold land) are
depreciated using the straight-line method over
their estimated useful lives over 8a period of
thirty years. These estimated useful lives are in
accordance with those prescribed under Schedule
II to the Companies Act, 2013.
Investment properties are derecognized either
when they have been disposed of or when they are
permanently withdrawn from use and no future
economic benefit is expected from their disposal.
The difference between the net disposal proceeds
and the carrying amount of the asset is recognized
in profit or loss in the period of derecognition.
Reclassification from/ to investment property
Transfers to (or from) investment property
are made only when there is a change in use.
Transfers between investment property, owner-
occupied property and inventories do not change
the carrying amount of the property transferred
and they do not change the cost of that property
for measurement or disclosure purposes.
c) Intangible assets
Intangible assets with finite useful lives acquired
by the Company are measured at cost less
accumulated amortization and accumulated
impairment losses. Amortization is charged on
a straight-line basis over the estimated useful
lives. The estimated useful life and amortization
method are reviewed at the end of each annual
reporting period, with the effect of any changes in
the estimate being accounted for on a prospective
basis.
Amortisation methods and periods
Intangible assets comprise of computer software
which is amortised on a straight-line basis over its
expected useful life of five years which is based on
a technical evaluation done by the Management.
d) Non-current assets (or disposal groups) held for
sale
Non-current assets (or disposal groups) are
classified as held for sale if their carrying amount
will be recovered principally through a sale
transaction rather than through continuing use
and a sale is considered highly probable. They are
measured at the lower of their carrying amount
and fair value less costs to sell, except for assets
such as deferred tax assets, assets arising from
employee benefits, financial assets, which are
specifically exempt from this requirement.
An impairment loss is recognised for any initial or
subsequent write-down of the asset (or disposal
groups) to fair value less costs to sell. A gain is
recognised for any subsequent increases in fair
value less costs to sell of an asset (or disposal
groups), but not in excess of any cumulative
impairment loss previously recognised. A gain or
loss not previously recognised by the date of the
sale of the non-current asset (or disposal groups)
is recognised at the date of de-recognition.
Non-current assets (including those that are
part of disposal groups) are not depreciated or
amortised while they are classified as held for
sale. Interest and other expenses attributable to
liabilities of disposal groups classified as held for
sale continue to be recognized.
Non-current assets classified as held for sale
and the assets of disposal groups classified as
held for sale are presented separately from the
other assets in the balance sheet under the head
"Assets classified as held for sale". The liabilities
of disposal groups classified as held for sale
are presented separately from other liabilities
in the balance sheet under the head "Liabilities
directly associated with Assets or disposal groups
classified as held for sale".
e) Leases
i) As a lessee
The Company leases various leasehold
lands, buildings, vehicles, and office and
other equipments. Rental contracts are
typically made for fixed periods of three to
ninety-nine years but may have extension
options as described in note 3(b). Lease
terms are negotiated on an individual basis
and contain a wide range of different terms
and conditions. The lease agreements do
not impose any covenants, but leased assets
may not be used as security for borrowing
purposes.
Assets and liabilities arising from a lease
are initially measured on a present value
basis. Lease liabilities include the net present
value of the following lease payments, as
applicable:
• fixed payments (including in-substance
fixed payments), less any lease
incentives receivable
• variable lease payment that are based
on an index or a rate, initially measured
using the index or rate as at the
commencement date
• amounts expected to be payable by
the Company under residual value
guarantees
• the exercise price of a purchase option
if the lessee is reasonably certain to
exercise that option, and
• payments of penalties for terminating
the lease, if the lease term reflects the
lessee exercising that option.
Lease payment to be made under
reasonably certain extension options
are also included in the measurement
of the liability. The lease payments
are discounted using the interest rate
implicit in the lease. If that rate cannot
be readily determined, the lessee’s
incremental borrowing rate is used,
being the rate that the lessee would have
to pay to borrow the funds necessary to
obtain an asset of similar value to the
right-of-use asset in a similar economic
environment with similar terms, security
and conditions.
Lease payments are allocated between
principal and finance cost. The finance
cost is charged to profit or loss over
the lease period so as to produce a
constant periodic rate of interest on
the remaining balance of the liability for
each period.
Right-of-use assets are measured at
cost comprising the following, wherever
applicable:
• the amount of the initial measurement
of lease liability
• any lease payments made at or before
the commencement date less any lease
incentives received
• any initial direct costs, and
• restoration costs.
Right-of-use assets are measured at
cost, less any accumulated depreciation
and accumulated impairment losses, and
adjusted for any remeasurement of lease
liabilities.
Right-of-use assets including leasehold
improvements are generally depreciated over
the shorter of the asset's useful life and the
lease term (including extension considering
reasonable certainty), on a straight-line
basis. If the Company is reasonably certain
to exercise a purchase option, the right-of-
use asset is depreciated over the underlying
asset’s useful life.
Payments associated with short-term leases
of equipment and all leases of low-value
assets are recognised on a straight-line
basis as an expense in profit or loss. Short¬
term leases are leases with a lease term
of 12 months or less, without a purchase
option. Low-value assets and short term
lease assets comprises of dumpsite land,
laptops and other office equipment.
ii) As a lessor
Lease income from operating leases where
the Company is a lessor is recognised in
income on a straight-line basis over the
lease term. Initial direct cost incurred in
obtaining an operating lease are added to
the carrying amount of the underlying asset
and recognised as expense over the lease
term on the same basis as lease income. The
respective leased assets are included in the
balance sheet based on their nature.
f) Borrowing costs
General and specific borrowing costs that are
directly attributable to the acquisition, construction
or production of a qualifying asset are capitalised
during the period of time that is required to
complete and prepare the asset for its intended
use or sale. Qualifying assets are assets that
necessarily take a substantial period of time to get
ready for their intended use or sale. Investment
income earned on the temporary investment of
specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing
costs eligible for capitalisation.
All other borrowing costs are expensed in the
period in which they are incurred.
Borrowing Cost includes exchange differences
arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the
finance cost.
g) Employee benefits
1) Short-term obligations
Liabilities for wages and salaries, including
non-monetary benefits that are expected
to be settled wholly within 12 months after
the end of the period in which the employees
render the related service are recognised in
respect of employees’ services up to the end
of the reporting period and are measured
at the amounts expected to be paid when
the liabilities are settled. The liabilities are
presented as current employee benefit
obligations in the balance sheet.
2) Other long-term employee benefit
obligations
The liabilities for earned leave are not
expected to be settled wholly within 12
months after the end of the period in which
the employees render the related service.
They are therefore measured as the present
value of expected future payments to be
made in respect of services provided by
employees up to the end of the reporting
period using the projected unit credit method.
The benefits are discounted using the market
yields at the end of the reporting period that
have terms approximating to the terms of
the related obligation. Remeasurements
as a result of experience adjustments and
changes in actuarial assumptions are
recognised in profit or loss.
The obligations are presented as current
liabilities in the balance sheet if the entity
does not have an unconditional right to defer
settlement for at least twelve months after
the reporting period, regardless of when the
actual settlement is expected to occur.
3) Post-employment obligations
The Company operates the following post¬
employment schemes:
• defined benefit plans such as gratuity;
and
• defined contribution plans such as
provident fund, superannuation fund
and pension fund.
(I) Defined Benefit Plans
(i) Gratuity obligations
The liability or asset recognised
in the balance sheet in respect of
defined benefit gratuity plans is
the present value of the defined
benefit obligation at the end of the
reporting period less the fair value
of plan assets. The defined benefit
obligation is calculated annually by
actuaries using the projected unit
credit method.
The present value of the defined
benefit obligation denominated
in INR/Rs. is determined by
discounting the estimated future
cash outflows by reference to
market yields at the end of the
reporting period on government
bonds that have terms
approximating to the terms of the
related obligation.
The net interest cost is calculated
by applying the discount rate to the
net balance of the defined benefit
obligation and the fair value of
plan assets. This cost is included
in employee benefit expense in the
statement of profit and loss.
Remeasurement gains and
losses arising from experience
adjustments and changes in
actuarial assumptions are
recognised in the period in which
they occur, directly in other
comprehensive income. They
are included in retained earnings
in the statement of changes
in equity and in the balance
sheet. Remeasurements are not
reclassified to profit and loss in the
subsequent periods.
Changes in the present value of
the defined benefit obligation
resulting from plan amendments
or curtailments are recognised
immediately in profit or loss as
past service cost.
(II) Defined contribution plans
(i) Provident Fund, Employee State
Insurance Corporation (ESIC) and
Pension Fund
The Contribution towards
provident fund, ESIC and pension
fund for certain employees is
made to the regulatory authorities
where the Company has no further
obligations. Such benefits are
classified as Defined Contribution
Schemes as the Company does
not carry any further obligations
apart from the contributions made
on a monthly basis.
(ii) Superannuation Fund
Contribution towards
superannuation fund for certain
employees is made to SBI Life
Insurance Company where
the Company has no further
obligations. Such benefits are
classified as Defined Contribution
Schemes as the Company does
not carry any further obligations,
apart from contribution made on
monthly basis.
4) Bonus Plan
The Company recognises a liability and an
expense for bonus. The Company recognises
a provision where contractually obliged
or where there is a past practice that has
created a constructive obligation.
5) Equity-settled share-based payments
(ESOP)
Equity-settled share-based payments to
employees are measured at the fair value of
the options at the grant date.
The fair value of option at the grant date is
expensed over the vesting period with a
corresponding increase in equity as „Equity
settled share based payments". In case
of forfeiture of unvested option, portion of
amount already expensed is reversed. In a
situation where the vested option forfeited
or expires unexercised, the related balance
standing to the credit of the „Equity settled
share based payments" are transferred to the
„General Reserve".
When the options are exercised, the Company
issues new equity shares of the Company
of Rs. 5 each fully paid-up. The proceeds
received and the related balance standing
to credit of the Equity settled share based
payments, are credited to share capital
(nominal value) and Securities Premium.
h) Contributed Equity
Equity shares are classified as equity.
i) Dividends
Provision is made for the amount of any dividend
declared, being appropriately authorised and no
longer at the discretion of the entity, on or before
the end of the reporting period but not distributed
at the end of the reporting period.
j) Earnings per share
1) Basic earnings per share
Basic earnings per share is calculated by
dividing:
• the profit attributable to owners of the
Company; and
• by the weighted average number of
equity shares outstanding during the
financial year, adjusted for bonus
elements in equity shares issued during
the year and excluding treasury shares.
2) Diluted earnings per share
Diluted earnings per share adjust the figures
used in the determination of basic earnings
per share to take into account:
• the after income tax effect of interest
and other financing costs associated
with dilutive potential equity shares; and
• the weighted average number of
additional equity shares that would
have been outstanding assuming the
conversion of all dilutive potential equity
shares.
k) Cash Flow Statement
Cash flows are reported using the indirect method
set out in Ind AS 7 'Statement of Cash Flows’,
whereby net loss/profit before tax is adjusted
for the effects of transactions of non-cash
nature, any deferrals, or accruals of past or future
operating cash receipts or payments and items of
expenses associated with investing or financing
cash flows. The cash flows from operating,
investing and financing activities of the Company
are segregated.
l) Segment reporting
Since the segment information as per Ind AS 108
- Operating Segments is provided on the basis
of consolidated financial statement, the same is
not provided separately in standalone financial
statement.
m) Foreign currency translation
1) Functional and presentation currency
Items included in the standalone financial
statements of the Company are measured
using the currency of the primary economic
environment in which the Company operates
('the functional currency’). The standalone
financial statements are presented in Indian
rupee (INR/Rs.), which is the Company’s
functional and presentation currency.
2) Transactions and balances
Foreign currency transactions are
translated into the functional currency
using the exchange rates at the dates of
the transactions. Foreign exchange gains
and losses resulting from the settlement of
such transactions and from the translation of
monetary assets and liabilities denominated
in foreign currencies at year end exchange
rates are generally recognised in profit or
loss.
Foreign exchange differences regarded
as an adjustment to borrowing costs are
presented in the statement of profit and
loss, within finance costs. All other foreign
exchange gains and losses are presented
in the statement of profit and loss on a net
basis within other expenses or other income,
as applicable.
Non-monetary items that are measured in
terms of historical cost in a foreign currency
are translated using the exchange rates at
the date of initial transaction.
Non-monetary items that are measured at
fair value in a foreign currency are translated
using the exchange rates at the date when
the fair value was determined. Translation
differences on assets and liabilities carried at
fair value are reported as part of the fair value
gain or loss.
The Company has elected to apply the
exemption from the transition date i.e. April
01, 2015 in respect of accounting policy
followed for long term foreign currency
monetary items. Accordingly, long term
foreign currency monetary items in the
standalone financial statement have been
accounted in accordance with previous
GAAP as given below:
• Foreign exchange differences on
account of depreciable assets are
adjusted in the cost of depreciable
assets and depreciated over the balance
life of the assets.
In other cases, foreign exchange differences are
accumulated in "Foreign Currency Monetary Item
Translation Difference Account" and amortised
over the balance period of such long term assets /
liabilities.
CRITICAL ESTIMATES AND JUDGMENTS
The preparation of standalone financial statements requires
the use of accounting estimates which, by definition, will
seldom equal the actual results. Management also needs
to exercise judgment in applying the Company’s accounting
policies. This note provides an overview of the areas that
involved a higher degree of judgment or complexity, and of
items which are more likely to be materially adjusted due
to estimates and assumptions turning out to be different
than those originally assessed. Detailed information about
each of these estimates and judgments is included in
relevant notes together with information about the basis
of calculation for each affected line item in the standalone
financial statements.
Critical estimates and judgments
i) Estimation of Provisions and Contingent Liabilities
The Company exercises judgment in measuring and
recognising provisions and the exposures to contingent
liabilities which is related to pending litigation or
other outstanding claims. Judgement is necessary
in assessing the likelihood that a pending claim will
succeed, or a liability will arise, and to quantify the
possible range of the financial settlement. Because
of the inherent uncertainty in this evaluation process,
actual liability may be different from the originally
estimated as provision.
ii) Estimation of useful life of Property, Plant and
Equipment
Property, Plant and Equipment represent a significant
proportion of the asset base of the Company. The
charge in respect of periodic depreciation is derived
after determining an estimate of an asset’s expected
useful life and the expected residual value at the end
of its life. The useful lives and residual values of the
Company's assets are determined by management at
the time the asset is acquired and reviewed periodically,
including at each financial year end. The lives are based
on historical experience with similar assets as well as
anticipation of future events, which may impact their
life, such as changes in technology.
iii) Estimation of Provision for Inventory
The Company writes down inventories to net realisable
value based on an estimate of the realisability of
inventories. Write downs on inventories are recorded
where events or changes in circumstances indicate
that the balances may not realised. The identification of
write-downs requires the use of estimates of net selling
prices of the down-graded inventories. Where the
expectation is different from the original estimate, such
difference will impact the carrying value of inventories
and write-downs of inventories in the periods in which
such estimate has been changed.
iv) Estimated fair value of Financial Instruments
The fair value of financial instruments that are not
traded in an active market is determined using valuation
techniques. The Management uses its judgment to
select a variety of methods and make assumptions that
are mainly based on market conditions existing at the
end of each reporting period.
v) Impairment of carrying value of investments and
recoverability of loans to a subsidiary
Determining whether the impairment of carrying value
of investments in a subsidiary and recoverability of
loans to a subsidiary requires an estimate of the value in
use of investments and loans. In considering the value
in use, the board of directors of Investee Company have
selected the appropriate method for the determination
of value-in-use example market approach model,
discounted cash flow model etc. Accordingly, Company
anticipates the market rates from independent website,
assesses the work of the external valuation expert for
valuation of the Investee Company in case of market
approach model. Life-time Expected credit loss model
is used for assessing the impairment of Loans.
Estimation of fair value
The company has obtained independent valuation of its freehold lands located at various locations in Gujarat, Rajasthan
and flat located at Mumbai and office located in Delhi based on current prices in an active market for properties of similar
nature. The fair values of investment properties have been determined based on the valuation by a registered valuer
as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The main inputs used are the
rental growth rates and a study of the micro market in discussion with industry experts. Resulting fair value estimate for
investment properties are included in level 3.
Valuation technique
The Company follows market value technique.
Notes:
i The Company has invested in 4,49,90,000 7.75% Convertible Non-cumulative Optionally Redeemable Preference Shares
(7.75% CORPS) of par value of Rs 10 aggregating to Rs. 44.99 in Anjar TMT Steel Private Limited (ATSPL)
March 31, 2025 and March 31, 2024
Terms and rights of 7.75% Convertible Non-cumulative Optionally Redeemable Preference Shares (7.75% CORPS):
7.75% CORPS have par value of Rs. 10 each.
The 7.75% CORPS shall be convertible into equity shares of ATSPL, the issuer, any time before March 31,2036. One 7.75%
CORPS will be converted into one equity share of Rs. 10/- each fully paid-up. If not converted, the 7.75% CORPS shall be
redeemable at par at the option of ATSPL, the issuer after March 31,2030, but before 31st March, 2036.
ii The Company has invested in 16,25,21,000 8% Convertible Non-Cumulative Optionally Redeemable Preference Share (8%
CORPS) of par value of Rs 10 amounting to Rs.162.52 in Welspun DI Pipes Limited (WDI)
March 31, 2025 and March 31, 2024:-
Terms and rights of 8% Convertible Non-Cumulative Optionally Redeemable Preference Share (8% CORPS):
8% CORPS shall be convertible into equity shares of WDI, the issuer, any time before March 31,2036. One 8% CORPS will
be converted into one equity share at par.8% CORPS shall be Redeemable at the option of WDI, the issuer in one or more
tranches any time on or after September 30, 2034 but before March 31,2036 and 8% CORPS at par.
iii. The Company has invested in 30,07,000, 0.01% Optionally Convertible Debentures of par value Rs 100 each amounting to
Rs. 30.07 of Sintex Prefab and Infra Limited.
Terms and Rights:
Each OCD having face value of Rs. 100 each shall be convertible at the option of the holder thereof at any time during the
tenure of the OCDs into 10 equity shares of Rs. 10 each.
If the OCDs are not redeemed within 5 years from the date of the issue, the OCDs shall be mandatorily converted into
equity shares.
The OCDs shall be redeemable at the option of the issuer, any-time from the date of the issue but not later than 5 years.
Before redeeming the OCDs, the issuer shall give option to holder to convert the OCDs in to equity by issuing 15 days’
notice thereto.
If the holder does not opt for converting, the issuer shall redeem within 7 days of the expiry of the notice period.
The OCDs shall carry coupon of 0.01% p.a., discretionary.
iv. The Company has invested in 3,30,15,100 0.01% Optionally Convertible Debentures of par value Rs 100 each amounting
to Rs. 330.15 of Sintex BAPL Limited
During the current year, the company has further invested in 0.01% optionally convertible debentures of Sintex BAPL
Limited of Rs. 299.13.
During the previous year, there was redemption of 0.01% optionally convertible debentures of Sintex BAPL Limited of Rs.
0.55 at par.
Terms and Rights:
Each OCD having face value of Rs. 100 each shall be convertible at the option of the holder thereof at any time during the
tenure of the OCDs into 10 equity shares of Rs. 10 each.
If the OCDs are not redeemed within 5 years from the date of the issue, the OCDs shall be mandatorily converted into
equity shares.
The OCDs shall be redeemable at the option of the issuer, any-time from the date of the issue but not later than 5 years.
Before redeeming the OCDs, the issuer shall give option to holder to convert the OCDs in to equity by issuing 15 days’
notice thereto.
If the holder does not opt for converting, the issuer shall redeem within 7 days of the expiry of the notice period.
The OCDs shall carry coupon of 0.01% p.a., discretionary.
v. On 20 March 2025, the Company has sold a 74% equity stake to Nauyaan Tradings Private Limited (NTPL), a subsidiary of
Reliance Strategic Business Ventures Limited resulting in profit of Rs. 382.72 , disclosed under "Exceptional Items"
The Company invested in 87,00,000 0.01% Optionally Convertible Debentures of par value Rs 100 each amounting to Rs.
87.00 of Nauyaan Shipyard Private Limited. During the previous year, there was redemption of 0.01% optionally convertible
debentures of Nauyaan Shipyard Private Limited of Rs. 8.50 at par. During the current year, there was redemption of 0.01%
optionally convertible debentures of Nauyaan Shipyard Private Limited of Rs. 78.50 at par.
Terms and Rights:
Each OCD having face value of Rs. 100 each shall be convertible at the option of the holder thereof at any time during the
tenure of the OCDs into 10 equity shares of Rs. 10 each.
If the OCDs are not redeemed within 5 years from the date of the issue, the OCDs shall be mandatorily converted into
equity shares.
The OCDs shall be redeemable at the option of the issuer, any-time from the date of the issue but not later than 5 years.
Before redeeming the OCDs, the issuer shall give option to holder to convert the OCDs in to equity by issuing 15 days’
notice thereto.
If the holder does not opt for converting, the issuer shall redeem within 7 days of the expiry of the notice period.
The OCDs shall carry coupon of 0.01% p.a., discretionary.
vi. During the current year, the Company has invested an amount of 0.54 in "Welspun Europe S.A.” by subscription to equity
shares.
ii) Terms and rights attached to shares
Equity shares
The Company has only one class of equity shares having a face value of Rs. 5 per share. Each holder of equity shares
is entitled to one vote per share. The dividend when 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 of the company the holders of the equity shares will be entitled to receive remaining assets of the
Company after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
Preference shares
Preference shares do not carry any voting rights in the Company, except as provided in the Companies Act, 2013. Preference
share will have priority over equity shares in the payment of dividend and repayment of capital.
Nature and purpose of other equity
(i) Securities premium
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the
provisions of the Companies Act, 2013.
(ii) Debenture redemption reserve
The amounts credited to the debenture redemption reserve may not be utilised except to redeem debentures.
(iii) General reserve
General Reserve represents appropriation of profit by the Company. General reserve is created by a transfer from one
component of equity to another and is not an item of other comprehensive income.
(iv) Equity settled share based payments (refer note 50)
This account is used to recognise the grant date fair value of options issued to employees under "WELSOP" Employee
stock option plan.
(v) Capital redemption reserve
Capital redemption reserve was created equal to the nominal value of the shares purchased pursuant to Buy Back of its
own fully paid up equity shares. Further, during the previous year, Capital Redemption Reserve was created on redemption
of 6% Cumulative redeemable preference shares amounting to Rs. 351.51 in accordance with the provisions of the
Companies Act 2013. This will be utilised as per provisions of Companies Act, 2013.
(vi) Capital reserve
The Company has created capital reserve pursuant to merger and acquisitions.
(vii) Cash flow hedging reserve
The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair
value of designated portion of hedging instruments entered into for cash flow hedges. The Cumulative gain or loss arising
on changes in fair value of the designated portion of the hedging instruments that are recognised and accumulated under
the heading of cash flows reserve will be reclassified to statement of profit and loss only when the hedged transaction
affects the profit or loss or included as a basis adjustment to the non-financial hedged item.
(viii) Retained Earnings
Retained earnings comprises of prior years as well as current year’s undistributed earnings after taxes.
(ix) Treasury Reserve
This reserve represents own equity shares held by Welspun Corp Employees Welfare Trust.
The Shareholders of the Company, by resolutions passed by way of Postal Ballot, results of which were declared on July
29, 2022, approved, inter alia, acquisition of equity shares by Welspun Corp Employees Welfare Trust for implementation
of Welspun Corp Employee Benefit Scheme - 2022. Welspun Corp Employees Welfare Trust ("Trust") was formed with
objects of welfare of employees of the Company and subsidiaries, inter alia, by way of acquiring, holding and allocating
equity shares of the Company to eligible employees by way of stock options. By March 31,2025, the Trust has acquired
cumulative equity shares 86,717 of the Company for a total acquisition cost of Rs. 2.26. No options have so far been
granted to any employee or director.
Working capital loan from banks includes cash credit.
(i) Secured by first charge ranking pari passu on hypothecation of raw materials, finished goods, work-in-progress, goods-
in-transit, stores and spares and Trade Receivables of the Company and second charge on all movable and immovable
property, Plant and equipment of the Company both present and future.
Interest on cash credit ranges from 8.8% to 11.90 % (March 31,2024: 7.45%) varies from Bank to Bank. Interest is charged
either on 3 months or 1 year MCLR plus margin.
(ii) Pledge of 2600 equity share of Nauyaan Shipyard Private Limited. Interest rate for year ended March 31, 2025 is 9.00%
(March 31,2024: Nil) and will be repaid on October 31,2025.
(iii) Interest rate for year ended March 31,2025 is 9.5% (March 31,2024: Nil) and will be repaid on October 31,2025.
Note:
The Contract Liabilities primarily relates to the advance consideration received from customers for supply of pipes and
machinery, for which revenue is recognised over time. This will be recognised as revenue when the pipes and machinery are
supplied, which is expected to occur in the next year.
The amount of Rs. 291.22 crores included in current liabilities at March 31, 2025 has been recognised as revenue during the
year ended March 31,2025 (March 31,2024: Rs. 341.35)
No information is required to be provided about remaining performance obligation at March 31,2025 or at March 31,2024 that
have an original expected duration of one year or less, as allowed by Ind AS 115.
(ii) There are certain income-tax related legal proceedings which are pending against the Company. Potential liabilities, if
any have been adequately provided for, and the Company does not currently estimate any probable material incremental
tax liabilities in respect of these matters.
36| EMPLOYEE BENEFIT OBLIGATIONS
(i) Leave obligations
The leave obligations cover the Company’s liability for earned leave.
(ii) Post-employment obligations - gratuity
The Company has a defined benefit gratuity plan in India, governed by the Payment of Gratuity Act, 1972. The plan entitles
an employee, who has rendered at least five years of continuous service, to gratuity at the rate of fifteen day wages for every
completed year of service or part thereof in excess of six months, based on the rate of wages last drawn by the employee
concerned upon retirement/termination. The gratuity plan is a funded plan and the Company makes contributions to
recognised funds in India.
This defined benefit plans expose the Company to actuarial risks, such as interest rate risk and market (investment) risk.
(iii) Balance sheet amounts - gratuity
The amounts recognised in the balance sheet and the movements in the net defined benefit obligations over the year are
as follows:
(vi) Risk exposure
Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which is
asset volatility. The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets
underperform this yield, this will create a deficit. The plan assets are invested by the Company in Kotak Group Gratuity
Fund and India First Employee Benefits Plan. The plan assets have been providing consistent and competitive returns over
the years. The Company intends to maintain these investments in the continuing years.
Note : There are uncertainties regarding the timing and amount of the cashflows arising out of the provisions. Changes in
underlying facts and circumstances for each provision could result in differences in the amounts provided for and the actual
cash outflow.
38 Pursuant to the Supreme Court Judgment in the case of "Vivekananda Vidyamandir And Others Vs The Regional Provident
Fund Commissioner (II) West Bengal" in relation to non-exclusion of certain allowances from the definition of "basic
wages" of the relevant employees for the purposes of determining contribution to provident fund under the Employees’
Provident Funds & Miscellaneous Provisions Act, 1952, and subsequent dismissal of the review petition filed against the
Judgement, the Company has assessed the impact and on conservative basis made provision (presented under Current)
of Rs. 21.68 (March 31,2024: Rs. 21.68). The Company has also determined and discharged the provident fund liability
from September 1,2019 considering the impact of the judgement. The Company has changed its salary structure in the
month of June 2020 w.e.f. April 01,2020 to comply with above judgement.
Note: Derivatives designated as hedges are fair valued through other comprehensive income and hence not included as a part
of the above table.
(i) Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that
are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed
in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value,
the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An
explanation of each level follows underneath the table.
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair
value, grouped into Level 1 to Level 3, as described below :
Level 1: This hierarchy includes financial instruments measured using quoted prices. The mutual funds are valued using
the closing NAV. The quoted market price used for financial assets held by the Company is the current bid price. These
instruments are included in level 1.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
The Company has derivatives which are not designated as hedges, bonds, government securities and mutual fund for
which all significant inputs required to fair value an instrument falls under level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level
3. This is the case for unlisted securities.
(ii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- the fair value of forward contracts is determined using forward exchange rates prevailing with Authorised Dealers
dealing in foreign exchange.
- the use of Net Assets Value ('NAV') for valuation of mutual fund investment. NAV represents the price at which the
issuer will issue further units and will redeem such units of mutual fund to and from the investors.
- the fair value of bonds and government securities are derived based on the indicative quotes of price and yields
prevailing in the market or latest available prices.
The Company’s risk management is carried out by treasury department under policies approved by the board of directors.
Treasury department identifies, evaluates and hedges financial risks. The board provides written principles for overall risk
management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of
derivative financial instruments and non-derivative financial instruments and investment of excess liquidity. There is no change
in objectives, policies and process for managing the risk and methods used to measure the risk as compared to previous year.
Where all relevant criteria are met, hedge accounting is applied to remove the accounting mismatch between the hedging
instrument and the hedged item. This will effectively result in recognising interest expense at a fixed interest rate for the hedged
floating rate loans and inventory at the fixed foreign currency rate for the hedged purchases.
(I) Credit risk
Credit risk is the risk that counterparty will not meet its obligation under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables)
and from its financing activities, including bonds, deposits with bank, foreign exchange transactions and other financial
instruments.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant
increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant
increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the
risk of default as at the date of initial recognition.
a) Trade receivables
Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has
been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business.
Receivables are deemed to be past due or impaired with reference to the Company’s normal terms and conditions of
business. These terms and conditions are determined on a case to case basis with reference to the customer’s credit
quality and prevailing market conditions. The Company based on past experiences, current conditions and forecasts
of future economic conditions does not expect any material loss on its receivables.
The credit quality of the Company’s customers is monitored on an ongoing basis and assessed for impairment
where indicators of such impairment exist. The Company uses simplified approach (i.e. lifetime expected credit loss
model) for impairment of trade receivables/ contract assets. The solvency of the debtor and their ability to repay
the receivable is considered in assessing receivables for impairment. Where receivables have been impaired, the
Company actively seeks to recover the amounts in question and enforce compliance with credit terms.
Past experience, current conditions and forecasts of future economic conditions suggest a low/ minimum credit risk
or allowances of debtors. Exposures of trade receivable broken into ageing bucket as per note 12. The Company’s
trade receivable do not carry a significant financing element. Hence, trade receivables are measured at transaction
price.
b) Other financial assets
The Company maintains exposure in cash and cash equivalents, term deposits with banks, security deposits, loans,
derivative financial instruments, investments in government securities, bonds and investments in mutual funds.
The Company has diversified portfolio of investment with various number of counterparties which have good credit
ratings, good reputation and hence the risk is reduced. Individual risk limits are set for each counterparty based
on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively
monitored by the Company.
Expected credit loss for other than trade receivables has been assessed and based on life-time expected credit loss,
loss allowance provision has been made.
Financial instruments that are subject to credit risk and concentration thereof principally consist of trade receivables,
loans receivables, investments in debt securities and mutual funds, balances with bank, bank deposits, derivatives
and financial guarantees provided by the Company. None of the financial instruments of the Company result in
material concentration of credit risk except investment in preference shares made by the Company in its subsidiary
companies and loans provided to wholly owned subsidiaries.
The carrying value of financial assets represents the maximum credit risk. The maximum exposure to credit risk was
Rs.2,158,22 and 2,638.28 crore, as at March 31,2025 and March 31,2024 respectively, being the total carrying value
of trade receivables, balances with bank,bank deposits, investments in debt securities, mutual funds, loans, derivative
assets and other financial asset
In respect of financial guarantees provided by the Company to banks/financial institutions, the maximum exposure
which the Company is exposed to is the maximum amount which the Company would have to pay if the guarantee is
called upon. Based on the expectation at the end of the reporting period, the Company considers that it is more likely
than not that such an amount will not be payable under the guarantees provided.
(II) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities
(comprising the undrawn borrowing facilities below), by continuously monitoring forecast and actual cash flows and
matching the maturity profiles of financial assets and liabilities.
(III) Market risk - foreign currency risk
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate
fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign
exchange contracts.
The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations
relating to certain firm commitments, highly probable forecast transactions and foreign currency required at the settlement
date of certain receivables/payables. The use of foreign currency forward contracts is governed by the Company’s strategy
approved by the board of directors, which provide principles on the use of such forward contracts consistent with the
Company’s risk management policy and procedures.
The Company uses forward contracts to hedge its risks associated with foreign currency fluctuations relating to
certain firm commitments, highly probable forecast transactions and foreign currency required at the settlement date
of certain receivables/payables. The use of forward contracts is governed by the Company’s strategy approved by
the board of directors, which provide principles on the use of such forward contracts consistent with the Company’s
risk management policy.
The Company’s hedging policy only allows for effective hedge relationships to be established. Hedge effectiveness is
determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments
to ensure that an economic relationship exists between the hedged item and hedging instrument. The Company
enters into hedge relationships where the critical terms of the hedging instrument match exactly with the terms
of the hedged item, and so a qualitative assessment of effectiveness is performed. If changes in circumstances
affect the terms of the hedged item such that the critical terms no longer match exactly with the critical terms of the
hedging instrument, the Company uses the hypothetical derivative method to assess effectiveness. Ineffectiveness
is recognised on a cash flow hedge and net investment hedge where the cumulative change in the designated
component value of the hedging instrument exceeds on an absolute basis the change in value of the hedged item
attributable to the hedged risk. In hedges of foreign currency forecast sale and purchase transactions, hedges of
interest rate risk and hedges of net investment, as applicable, this may arise if:
(i) The critical terms of the hedging instrument and the hedged item differ (i.e. nominal amounts, timing of the
forecast transaction, interest resets changes from what was originally estimated), or
(ii) Differences arise between the credit risk inherent within the hedged item and the hedging instrument. There
were no ineffectiveness recognised in the statement of profit and loss during March 31, 2025 and March 31,
2024.
50 EQUITY SETTLED SHARE BASED PAYMENTS (ESOP) (REFER NOTE 16(B)(IV))
Senior level management employees of the Company receive remuneration in the form of share-based payments, whereby
employees render services as consideration for equity instruments (equity-settled transactions). In respect of options granted
during the current year under the Welspun Employee Stock Options Scheme (WELSOP), the cost of equity-settled transactions
is determined by the fair value at the date when the grant is made using Black Scholes Merton formula which is in accordance
with Indian Accounting Standard 102 (Ind AS 102).
The cost of equity settled transaction is recognised, together with a corresponding increase in Equity settled share based
payments reserves in other equity, over the period in which the service conditions are fulfilled. This expense is included under
the head "Employee benefits expense" as employee share-based expense. The cumulative expense recognised for equity-
settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and
the Company’s best estimate of the number of equity instruments that will ultimately vest.
Expense for the period from grant date to reporting date recognised is Rs. 10.70 (Year ended March 31,2024: Rs.10.55).
1. The Company was entitled to VAT incentive, on its investment in the eligible property plant and equipment, on fulfillment
of the conditions stated in the scheme.
2. The Company is entitled to SGST incentive, on its investments in the eligible property, plant and equipment on fulfilment of
the conditions stated in the scheme. The Company has followed net basis of accounting of government grants. As per this
method, the balance sheet would reflect the cumulative net amount of grant that has been amortised to date and the cash
that has been received / reasonably assured to be received under the terms of the grant and corresponding government
grant is recognized in the statement of profit and loss.
3. The Company has availed the benefit of Export Promotion Capital Goods (EPCG) scheme provided by the Government of
India (Ministry of Commerce and Industry) on import of Property, plant and equipment. The amount of duty waived by the
Government has been capitalised and equivalent amount has been transferred to deferred income and amortised over
useful life of the assets.
55| During the year, Welspun Tradings Limited (a wholly owned subsidiary of the Company) has sold of 100% equity stake of
Nauyaan Tradings Private Limited ("NTPL"), to Reliance Strategic Business Ventures Limited (a wholly owned subsidiary
of Reliance Industries Limited) for a total consideration of Rs. 1,00,000, which corresponds to the total paid-up equity
share capital of NTPL.
During the year, the Company have induction of a strategic investor in Nauyaan Shipyard Private Limited ("NSPL"), by sale
of 74% equity share in NSPL to NTPL (post acquisition by Reliance Strategic Business Ventures Limited as above), for a
consideration of Rs. 382.73 , subject to any subsequent adjustments for expenses to the account of the Company and net
current assets, resulting profit of Rs. 382.72 , disclosed under "Exceptional Items"
The Board of Directors at their meeting dated April 10, 2025, approved sale of further 10% equity shares of Nauyaan
Shipyard Private Limited ("NSPL") to Nauyaan Tradings Private Limited (wholly-owned subsidiary of Reliance Strategic
Business Ventures Limited), for a consideration of Rs. 51.72, subject to any subsequent adjustments for expenses to the
account of the Company and net current assets.
57 ADDITIONAL REGULATORY REQUIREMENTS UNDER SCHEDULE III
(i) Details of Benami Property held
No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(ii) Borrowing secured against current assets
The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements
of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.
(iii) Wilful defaulter
The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority or other lender.
(iv) Relationship with struck off companies
The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956
(v) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(vi) Compliance with approved scheme(s) of arrangements
The Company has complied with accounting impact on approved scheme of arrangements during current or previous
financial year (refer note 55).
(vii) Utilisation of borrowed funds and share premium
The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries), with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Ultimate Beneficiaries or
b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries
The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the company shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries) or
b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries
(viii) Undisclosed income
There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under
the Income Tax Act, 1961, that has not been recorded in the books of account.
(ix) Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(x) Valuation of PP&E, intangible asset and investment property
The Company has not revalued its property, plant and equipment (including Right-of-Use assets) or intangible assets or
both during the current or previous year.
(a) Title deeds are held in the name of the demerged undertaking i.e. Welspun Steel Limited which has been merged with
the Company in the FY 2021-22. The Company is under process to change the name of these title deeds.
(b) Title deeds are held in the name of Welspun Metallics Limited which has been merged with the Company in the
Financial Year 2022-23. The Company is under process to change the name of these title deeds.
(xii) Registration of Charges or satisfaction with Registrar of Companies (ROC)
The Company does not have any charge or satisfaction not registered with the ROC beyond the statutory period.
(xiii) Utilisation of borrowings availed from banks and financial institutions
The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for
which such loans were was taken.
(xiv) Loans or advances to specified person
The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and related
parties (as defined under Companies Act, 2013) either severally or jointly with any other person, that are (a) repayable on
demand; or (b) without specifying any terms or period of repayment.
58| The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the
Company towards Provident Fund and Gratuity. The draft rules for the Code on Social Security, 2020 have been released
by the Ministry of Labour and Employment on November 13, 2020. The Company is in the process of assessing the
additional impact on Provident Fund contributions and on Gratuity liability contributions and will complete their evaluation
and give appropriate impact in the standalone financial statements in the period in which the rules that are notified become
effective.
* The financial performance of Welspun Corp Employees Welfare Trust have been included in the standalone financial
statements of the Company in accordance with the requirements of Ind-AS and cost of such treasury shares of Rs. 2.26 has
been presented as a deduction in Other Equity. While computing basic and diluted earnings per share, weighted average of
86,717 number of equity shares have been reduced.
60| During June 2023, the central western parts of India were affected by the tropical cyclone that developed in the Arabian
Sea named 'Biparjoy'. The cyclone had significant impact on industries in Kutch and caused widespread damage to
infrastructure, including power lines, roads and communication networks.
The impact on Company's assets and inventories as provisionally estimated by the management was amounting to
Rs. 57.31 for the year ended March 31,2024. The Company had accounted for the above loss in "Other expenses". The
Company had received an on-account payment of Rs. 46.31 during the year ended March 31,2024 and Rs. 15.32 during
the year ended March 31,2025 from the insurance company, shown under "Other income".
611 CORE INVESTMENT COMPANIES (CIC)
Management has assessed that there are three CIC in the Group ('Companies in the Group' is as defined in Master Direction -
Core Investment Companies (Reserve Bank) Directions, 2016, as amended).
62| DIVIDEND
The Board of Directors at their meeting dated May 28, 2025 have recommended to pay dividend at the rate of 100% per equity
share (i.e. Rupees 5 per equity share) having nominal value of Rupees 5 for the financial year ended March 31, 2025. The
payment is subject to approval of the shareholders in the upcoming Annual General Meeting.
For B S R & Co. LLP For and on behalf of the Board of Directors of
Chartered Accountants Welspun Corp Limited
Firm Registration No: 101248W/W-100022 CIN: L27100GJ1995PLC025609
Bhavesh Dhupelia B.K.Goenka Vipul Mathur
Partner Chairman Managing Director and Chief Executive Officer
Membership No.042070 DIN No.00270175 DIN - 07990476
Place: Mumbai Place: Mumbai
Date: May 28, 2025 Date: May 28, 2025
Percy Birdy Kamal Rathi
Chief Financial Officer Company Secretary
ACS-18182
Place: Mumbai Place: Mumbai Place: Mumbai
Date: May 28, 2025 Date: May 28, 2025 Date: May 28, 2025
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